COMMISSIONER OF TAXATION
The Commissioner of Taxation, Chris Jordan, gives notice of the following Rulings, copies of which can be obtained from Branches of the Australian Taxation Office or at http://law.ato.gov.au.
NOTICE OF RULINGS |
Ruling Number | Subject | Brief Description |
GSTD 2016/1 | Goods and services tax: can an employer claim an input tax credit under Division 11 of the A New Tax System (Goods and Services) Tax Act 1999 for an expense paid on behalf of a superannuation fund that makes an acquisition? | The Determination concludes that an employer cannot claim an input tax credit under Division 11 of the A New Tax System (Goods and Services) Tax Act 1999 for an expense paid on behalf of a superannuation fund that makes an acquisition. This Determination applies both on and after its date of issue. |
CR 2016/6 | Income tax: the Swinburne University Academic Staff Voluntary Early Retirement Scheme 2015‑16 | The Ruling sets out the Commissioners position for employees of the Swinburne University of Technology who receive a payment under the scheme described in the Ruling. The Ruling applies from 27 January 2016 to 31 December 2016. |
NOTICE OF WITHDRAWALS |
Ruling Number | Subject | Brief Description |
GSTA TPP 003 | Goods and services tax: can an employer claim input tax credits for expenses incurred on behalf of a superfund | The Ruling considered the circumstance where an employer pays expenses on behalf of a superannuation fund and explained that an employer is not entitled to an input tax credit for expenses where the acquisition is made by the superannuation fund. The Ruling is withdrawn as the issue addressed is now dealt with in GSTD 2016/1. The Ruling is withdrawn with effect from today. |
MT 2005/1 | What is the tax treatment of an expense incurred by a superannuation fund that is paid by an employer or eligible person on behalf of a superannuation fund? | The Ruling sets out the Commissioner’s view on the tax treatment of expenses incurred by a superannuation fund that are paid by an employer on behalf of the superannuation fund. The Ruling was partially withdrawn on 17 June 2009. The remainder of the Ruling is now being withdrawn as the remaining issues are now included in GSTD 2016/1. The Ruling is withdrawn with effect from today. |
Overview
The Commissioner of Taxation has issued new rulings and withdrawn previous ones concerning input tax credits in relation to superannuation funds. The A New Tax System (Goods and Services) Tax Act 1999 was enacted to create a uniform tax on goods and services, and to provide a consistent framework for the administration of the tax. GSTD 2016/1 addresses the issue of whether an employer can claim an input tax credit for expenses paid on behalf of a superannuation fund making an acquisition. The ruling clarifies that such a claim is not permissible under Division 11 of the Act. This ruling applies from and after its date of issue. Additionally, CR 2016/6 outlines the Commissioner's position for employees of Swinburne University of Technology who receive payments under the Academic Staff Voluntary Early Retirement Scheme for the 2015-16 period. The withdrawn rulings, GSTA TPP 003 and MT 2005/1, previously considered the tax treatment of expenses incurred by superannuation funds paid by employers or eligible persons on behalf of the superannuation fund, but these issues are now addressed in GSTD 2016/1.
Scope and Application
The Commissioner of Taxation has issued various rulings that provide clarification and guidance on specific tax matters, particularly under the A New Tax System (Goods and Services) Tax Act 1999 and income tax laws. GSTD 2016/1 pertains to the Goods and Services Tax (GST) and clarifies that an employer cannot claim an input tax credit under Division 11 of the A New Tax System (Goods and Services) Tax Act 1999 for expenses paid on behalf of a superannuation fund that makes an acquisition. This ruling applies both on and after its date of issue, affecting employers who may have previously sought to claim such credits. CR 2016/6 is specific to the tax treatment of payments made to employees of Swinburne University of Technology under the Academic Staff Voluntary Early Retirement Scheme 2015-16, providing clarity on the tax implications of these payments for the period from 27 January 2016 to 31 December 2016. Additionally, certain previously issued rulings, such as GSTA TPP 003 and MT 2005/1, have been withdrawn as their issues are now addressed in GSTD 2016/1, ensuring that taxpayers have the most current guidance available.
Key Provisions
The Commissioner of Taxation, Chris Jordan, has issued two new rulings and withdrawn two older rulings regarding tax issues, specifically focusing on goods and services tax (GST) and income tax matters. The new rulings, GSTD 2016/1 and CR 2016/6, provide clarification on specific tax scenarios. GSTD 2016/1 (paragraph 1) concludes that an employer cannot claim an input tax credit under Division 11 of the A New Tax System (Goods and Services) Tax Act 1999 for an expense paid on behalf of a superannuation fund that makes an acquisition. This ruling applies from the date of its issue and moving forward. CR 2016/6 (paragraph 2) outlines the Commissioner’s position for employees of the Swinburne University of Technology who receive a payment under the Swinburne University Academic Staff Voluntary Early Retirement Scheme 2015-16. This ruling is applicable from 27 January 2016 to 31 December 2016.
These rulings impose specific obligations on employers, superannuation funds, and affected employees. For instance, GSTD 2016/1 requires employers to accurately report expenses related to superannuation funds without claiming input tax credits for those expenses. Similarly, CR 2016/6 imposes on the Swinburne University of Technology and its employees to adhere to the Commissioner’s position regarding the tax treatment of payments under the specified early retirement scheme. Both rulings mandate that the relevant parties ensure compliance with the specified tax laws and guidelines.
Failing to comply with the obligations set out in these rulings could result in various consequences. For GSTD 2016/1, incorrectly claiming input tax credits for expenses related to superannuation funds could lead to penalties and the need to repay any incorrectly claimed credits. Similarly, non-compliance with the provisions of CR 2016/6 might result in incorrect tax assessments for the involved employees, potentially leading to additional tax liabilities or interest on underpayments. While the rulings do not specify maximum penalties, breaches of tax laws generally attract penalties under the Tax Administration Act 1953, which can include fines and, in severe cases, criminal charges.