Briefly Explain and Indicate the type of ruling or decision that has been made by the Commissioner and the extent to which it is binding on the taxpayers involved.?

The following tax rulings were issued in relation to the application of tax legislation:

1. A ruling is issued by the tax office relating to investment in a publicly available trust which aims to breed and sell Three-Legged Northern Mongolian Parrots.

The prospectus claims that investors will be able to claim the cost of any units subscribed as an immediate tax deduction. In the ruling, the Commissioner has indicated that not only will there be no immediate deduction, but investors will be ineligible to claim any interest expenses in acquiring the units until the trust has commenced deriving sales.

2. Joanne Royal has applied for and received a ruling relating to her ability to claim a net medical expenses tax offset for massage oils. The ruling stated that Joanne cannot include the oils in determining her taxoffset.
4. The Commissioner released a ruling that 'frequent flyer' bonuses received by employees as a result of employer expenditure are not subject to FBT.
6. Frank phoned the ATO regarding a meal allowance received from his employer. In the course of the phone conversation, he provided full identification and was advised by a tax officer that the allowance is assessable income.

Taxpayer

Type Of Ruling [Oral, Public, Private, Product, Class, Tax Determination]

Extent To Which It Is Binding (Provide Your Explanation/Reasons)

Answer rating: 100% (QA)

Taxpayer Type of Ruling and Extent of Binding 1 Public Trust Investment Type of Ruling Public Ruling ... View the full answer