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 |
TD 2014/19 | Income tax: what are the reasonable travel and overtime meal allowance expense amounts for the 2014‑15 income year? | The Determination sets out the Commissioner’s position for reasonable travel and overtime meal allowance expenses for the 2014-15 income year. The Determination applies to the 2014‑15 income year only. |
CR 2014/57 | Income tax: MYOB Group Pty Limited – Return of Capital | The Ruling sets out the Commissioner’s position on holders of ordinary shares in MYOB Group Pty Limited. |
CR 2014/58 | Income tax: Unitywater early retirement scheme 2014 | The Ruling sets out the Commissioner’s position on all employees of Unitywater, who receive a payment under the Unitywater early retirement scheme 2014. |
CR 2014/59 | Income tax: APN European Retail Property Group – cancellation of units | The Ruling sets out the Commissioner’s position on unit holders in APN European Retail Property Group which comprises stapled units in the APN European Retail Property Management Trust and APN European Retail Property Holding Trust. |
CR 2014/60 | Income tax and fringe benefits tax: customers of Procon Telematics Pty Ltd who use the FleetLocate/Easy2log Vehicle Logbook Report for their log book records | The Ruling sets out the Commissioner’s position on customers of Procon Telematics Pty Ltd who use the FleetLocate/Easy2log system Vehicle Logbook Report for the purposes of section 10 of the Fringe Benefits Tax Administration Act 1986 or subdivision 28-F of the Income Tax Assessment Act 1997. |
NOTICE OF WITHDRAWALS |
Ruling Number | Subject | Brief Description |
GSTA TPP 042 | Goods and services tax: is a payment to a lawyer by a client to reimburse the lawyer for a payment of a tax, fee or charge (tax) that is excluded from the GST by a determination of the Treasurer consideration for a taxable supply by the lawyer if the lawyer paid the tax in their own right? | Withdrawn with effect from 9 July 2014. |
GSTA TPP 049 | Goods and services tax: is a trustee’s in-specie distribution to a beneficiary a taxable supply? | Withdrawn with effect from 9 July 2014. |
GSTA TPP 075 | Goods and services tax: is an Australian insurance broker entitled to a Division 78 decreasing adjustment when it is acting as agent for a foreign insurance company? | Withdrawn with effect from 9 July 2014. |
GSTA TPP 088 | Goods and services tax: if a partner pays for an acquisition as an expense out of the revenue of the partnership, is this an indicator that the partner is acting in his or her capacity as partner? | Withdrawn with effect from 9 July 2014. |
GSTA TPP 089 | Goods and services tax: if the recipient of a supply cancels its GST registration before receiving a tax invoice for a creditable acquisition, is it entitled to an input tax credit for the acquisition? | Withdrawn with effect from 9 July 2014. |
GSTA TPP 104 | Goods and services tax: when is the day of supply of a going concern that constitutes a property development enterprise? | Withdrawn with effect from 9 July 2014. |
Overview
The Commissioner of Taxation, Chris Jordan, has issued a series of tax rulings and withdrawn others to clarify the application of Australian tax law, specifically addressing various income tax and fringe benefits tax issues. These rulings were introduced to provide certainty and guidance to taxpayers regarding the tax treatment of specific scenarios, including travel and overtime meal allowance expenses, return of capital, early retirement schemes, cancellation of units, and the use of vehicle logbook reports for fringe benefits tax purposes. The withdrawn rulings, effective from 9 July 2014, relate to various goods and services tax (GST) matters, such as payments to lawyers for tax reimbursements, trustee's in-specie distributions, insurance brokers' entitlement to adjustments, and the implications of partners paying acquisition expenses from partnership revenue. These announcements aim to ensure taxpayers understand their obligations and entitlements under the relevant Acts, thereby maintaining compliance and fairness within the tax system.
Scope and Application
The Commissioner of Taxation has issued a series of rulings under the Commonwealth of Australia's tax laws, each addressing specific issues pertinent to the 2014-15 income year. The rulings apply to individuals and entities engaged in particular transactions, such as the holders of ordinary shares in MYOB Group Pty Limited, employees of Unitywater receiving payments under an early retirement scheme, unit holders in APN European Retail Property Group, and customers of Procon Telematics Pty Ltd using the FleetLocate/Easy2log system Vehicle Logbook Report for fringe benefits tax purposes. These rulings are designed to provide clarity on the tax implications of specific financial activities and transactions within the given fiscal year, ensuring taxpayers are aware of their obligations and entitlements under the law. Additionally, certain rulings have been withdrawn, such as those related to GST considerations for lawyers, trustees' distributions, insurance brokers' adjustments, and partnership expenses, effective from 9 July 2014. These rulings collectively aim to guide taxpayers through complex tax scenarios, offering authoritative interpretations of the law as it applies to specific situations.
Key Provisions
The Commissioner of Taxation, Chris Jordan, has issued several rulings and withdrawn others as of the 9 July 2014. The rulings focus on specific tax scenarios, providing clarity on how the tax law applies to particular situations, while the withdrawn rulings indicate that certain previous tax positions have been rescinded. For example, Ruling TD 2014/19 (section 1) outlines the Commissioner’s position on the reasonable travel and overtime meal allowance expense amounts for the 2014-15 income year. Rulings CR 2014/57, CR 2014/58, and CR 2014/59 (sections 2-4) respectively detail the Commissioner's stance on tax implications for shareholders of MYOB Group Pty Limited, employees of Unitywater under a specific retirement scheme, and unit holders in APN European Retail Property Group. Additionally, Ruling CR 2014/60 (section 5) addresses the tax position for customers of Procon Telematics Pty Ltd using their FleetLocate/Easy2log system for vehicle log book records.
The obligations imposed by these rulings are primarily informational, providing taxpayers with the Commissioner's interpretation of the law in specific contexts. Taxpayers, especially those in the situations outlined, must ensure their tax reporting and compliance strategies align with these rulings to avoid potential discrepancies. For instance, taxpayers involved in the scenarios described in CR 2014/57 to CR 2014/60 need to understand and apply the specific tax treatments prescribed by the rulings to their respective financial and tax planning.
Failure to adhere to these rulings can result in tax assessments, penalties, or legal actions. Although the specific penalties are not detailed in the provided text, breaches of tax law generally attract penalties under the relevant Acts, including the Income Tax Assessment Act 1936 and the Fringe Benefits Tax Assessment Act 1986. The penalties can range from fines to more severe consequences, depending on the nature and extent of the breach. Taxpayers should consult the relevant sections of these Acts or seek professional advice to understand the full implications of non-compliance.