Notice of Rulings, Notice of Withdrawals

Overview

The Commissioner of Taxation, Chris Jordan, issued two rulings and withdrew four taxation determinations under the authority granted by the Commissioner of Taxation Act 1963. The rulings and determinations provide guidance on specific tax issues within the context of the A New Tax System (Goods and Services Tax) Act 1999 and the Income Tax Assessment Act 1936. The purpose of these rulings and determinations is to offer clarity and certainty to taxpayers regarding the application of tax laws. The rulings include a clarification on the GST implications for transitional assistance payments made to participants in the Queensland taxi and limousine industry and the circumstances under which the supply of a credit card facility is GST-free when used outside Australia. The withdrawn determinations cover various topics such as deductions for teachers’ travel expenses, the entitlement to deductions for travel expenses when a travel allowance is received, the assessability of camping allowances, and the applicability of fringe benefits tax on meals and accommodation provided to employees at remote construction sites. These rulings and determinations aim to assist taxpayers in understanding their obligations and rights under the relevant tax legislation.

Scope and Application

The Commissioner of Taxation, Chris Jordan, has issued specific rulings and determinations under Australian tax law that cater to particular industries and transactions. Ruling CR 2017/43 applies to entities holding a Queensland taxi service or limousine service licence or listed as a licence holder by the Queensland Department of Transport and Main Roads as of 11 August 2016, addressing the transitional assistance payments made to participants in the Queensland taxi and limousine industry. This Ruling applies from 20 December 2016 to 24 March 2017 and continues to apply to all entities who entered into the specified scheme during the term of the Ruling. Determination GSTD 2017/1 pertains to the supply of a credit card facility being GST-free when the cardholder is physically outside Australia, providing clarity on the application of the Goods and Services Tax Act 1999, and it applies from 12 July 2017. These rulings and determinations are applicable within the Commonwealth of Australia, extending their reach to relevant entities and transactions specified within their scope.

Key Provisions

The Commissioner of Taxation has issued several rulings and determinations under the relevant Australian tax Acts, providing clarification on specific tax issues. For instance, Ruling CR 2017/43 addresses the Goods and Services Tax (GST) implications of transitional assistance payments made to participants in the Queensland taxi and limousine industry. It outlines the Commissioner's position on entities holding or listed with a Queensland taxi or limousine service licence before a specified date. This Ruling is effective from 20 December 2016 to 24 March 2017, and it continues to apply to all entities that entered into the specified scheme during the term of the Ruling. GST Determination D 2017/1 focuses on when the supply of a credit card facility is GST-free, particularly when the cardholder is physically outside Australia. This Determination is applicable from 12 July 2017. In terms of obligations and requirements, entities subject to these rulings must adhere to the specific conditions and timelines outlined. For example, entities involved in the Queensland taxi and limousine industry must ensure they meet the criteria set out in Ruling CR 2017/43 to benefit from the transitional assistance payments without incurring GST liability. Similarly, entities and individuals dealing with credit card facilities used overseas need to comply with the provisions in GST Determination D 2017/1 to correctly determine the GST implications of such supplies. Breaching the requirements set out in these rulings may lead to civil or criminal consequences. For GST purposes, failure to correctly apply the rules could result in assessments for additional GST, penalties, and interest. For instance, if an entity fails to properly account for GST on transitional assistance payments, the Australian Taxation Office (ATO) may issue additional assessments, which could be substantial. In the case of incorrect application of the credit card facility provisions, similar penalties and interest would apply. Additionally, there may be criminal penalties for knowingly supplying false or misleading information to the ATO, which could lead to prosecution and significant fines. The specific penalties are determined based on the nature and extent of the breach but can include substantial fines and potential imprisonment for serious offences.