The Commissioner of Taxation, Chris Jordan, gives notice of the following Rulings, copies of which can be obtained from ato.gov.au/law.
NOTICE OF RULINGS |
Ruling number | Subject | Brief description |
CR 2019/40 | MyLogbook Solution - use for FBT car logbook and odometer records | This Ruling sets out the tax consequences of using the MyLogbook Solution for calculating the taxable value of a car fringe benefit using the cost basis method. This Ruling applies from 1 April 2019 to 31 March 2023. |
CR 2019/41 | YWCA Canberra Ltd – deductibility of donations under a Payment Direction Deed | This Ruling sets out the tax consequences of a landlord paying donation amounts to YWCA Canberra Limited by way of an executed Payment Direction Deed. This Ruling applies from 1 July 2018 to 30 June 2023. |
CR 2019/42 | Amcor Limited – scrip for scrip roll-over | This Ruling sets out the Commissioner’s position on the restructure of Amcor Limited which took place on 11 June 2019. This Ruling applies from 1 July 2018 to 30 June 2019. |
PR 2019/4 | Income tax: Challenger Guaranteed Annuity (Liquid Lifetime) - 2019 | This Ruling sets out the Commissioner’s position on the income tax consequences for a defined class of entities which invest in the Challenger Guaranteed Annuity offered by Challenger Life Company Limited under the Product Disclosure Statement dated 6 May 2019. This Ruling applies only to the specified class of entities that enter into the scheme from 6 May 2019 until 30 June 2022. |
TR 2019/5 | Income tax: effective life of depreciating assets (applicable from 1 July 2019) | This Ruling sets out the methodology used by the Commissioner of Taxation to make a determination of the effective life of depreciating assets under section 40–100 of the Income Tax Assessment Act 1997. The Ruling applies from 1 July 2019. |
NOTICE OF WITHDRAWAL |
Ruling number | Subject | Brief description |
TR 2018/4 | Income tax: effective life of depreciating assets (applicable from 1 July 2018) | TR 2018/4 is withdrawn with effect from 1 July 2019. |
Overview
The Commissioner of Taxation, Chris Jordan, has issued several rulings and a withdrawal notice regarding specific tax matters. The rulings CR 2019/40, CR 2019/41, CR 2019/42, PR 2019/4, and TR 2019/5 outline the tax consequences and positions on various tax issues such as the use of the MyLogbook Solution for FBT car logbook and odometer records, the deductibility of donations under a Payment Direction Deed, the restructure of Amcor Limited, the investment in the Challenger Guaranteed Annuity, and the effective life of depreciating assets respectively. These rulings apply to specific periods ranging from 1 April 2019 to 30 June 2023. Additionally, the withdrawal notice indicates that TR 2018/4, which was applicable from 1 July 2018, is withdrawn with effect from 1 July 2019. These rulings and the withdrawal notice provide clarity on various tax matters for the specified periods and entities.
Scope and Application
The Commissioner of Taxation has issued several rulings that set out specific tax consequences and positions for certain scenarios and entities, applicable under the Income Tax Assessment Act 1997. CR 2019/40 concerns the use of the MyLogbook Solution for calculating the taxable value of a car fringe benefit using the cost basis method, applying from 1 April 2019 to 31 March 2023. CR 2019/41 addresses the tax implications of landlords making donations to YWCA Canberra Ltd under a Payment Direction Deed, effective from 1 July 2018 to 30 June 2023. CR 2019/42 pertains to the tax consequences of the restructure of Amcor Limited, applying from 1 July 2018 to 30 June 2019. PR 2019/4 outlines the tax treatment for entities investing in the Challenger Guaranteed Annuity, effective for the specified class of entities from 6 May 2019 until 30 June 2022. TR 2019/5 provides the methodology for determining the effective life of depreciating assets, applicable from 1 July 2019. Additionally, TR 2018/4, concerning the effective life of depreciating assets, is withdrawn with effect from 1 July 2019.
Key Provisions
The Gazette C2019G00537 outlines various rulings issued by the Commissioner of Taxation that are pertinent to different aspects of taxation. These rulings provide clarity on specific tax issues and are intended to guide taxpayers on their obligations and the tax consequences of particular transactions or investments. For example, Ruling CR 2019/40 (MyLogbook Solution - use for FBT car logbook and odometer records) clarifies the tax implications of using the MyLogbook Solution for calculating the taxable value of a car fringe benefit under the cost basis method. This ruling applies from 1 April 2019 to 31 March 2023, providing a temporary framework for taxpayers to follow during this period. Similarly, Ruling CR 2019/41 (YWCA Canberra Ltd – deductibility of donations under a Payment Direction Deed) addresses the tax consequences of a landlord making donations to YWCA Canberra Limited through a Payment Direction Deed. This ruling is applicable from 1 July 2018 to 30 June 2023.
These rulings impose specific obligations on the taxpayers and entities they govern. For instance, entities using the MyLogbook Solution must adhere to the guidelines set forth in Ruling CR 2019/40 to ensure accurate calculations of their fringe benefits tax (FBT) liability. Similarly, landlords entering into Payment Direction Deeds with YWCA Canberra Limited need to understand the tax deductibility of their donations as outlined in Ruling CR 2019/41. Additionally, entities investing in the Challenger Guaranteed Annuity offered by Challenger Life Company Limited must comply with the specific requirements outlined in Ruling PR 2019/4, which applies to investments made from 6 May 2019 until 30 June 2022.
The Gazette also includes provisions regarding the consequences of non-compliance. For instance, if taxpayers fail to adhere to the guidelines set forth in these rulings, they may face penalties or other legal consequences. The specific penalties are not detailed in the Gazette but can generally include fines or additional tax liabilities. For example, inaccuracies in FBT calculations due to non-compliance with Ruling CR 2019/40 could result in penalties imposed by the Commissioner of Taxation. It is essential for taxpayers to carefully follow the rulings to avoid any potential penalties or legal issues.