Taxation Determination

TD 97/7

Income tax: in what circumstances will the Commissioner register a transitional RBL of a taxpayer under regulation 53E of the Income Tax Regulations after the general extension date of 4 April 1997?

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FOI status:

Background

1. Under regulation 53E of the Income Tax Regulations (ITR), an eligible person for the purposes of regulations 52, 53 or 53A must register a transitional RBL with the Commissioner:

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not later than 31 December 1996; or

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if in a particular case the Commissioner allows registration at a later date - by that date.

2. On 12 December 1996, the Commissioner allowed a general extension for eligible persons to register transitional RBLs by 4 April 1997. An eligible person can register a transitional RBL by lodging a Transitional RBL Application Form with the Tax Office.

Reasons for considering a further extension of time

3. The Commissioner will register a transitional RBL where it can be demonstrated that a valid reason exists which prevented lodgment of a transitional RBL application by 4 April 1997. Approval for registration after that date will be considered on a case by case basis. However, as a guide, applications will be accepted generally where:

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an eligible person has been out of contact for a prolonged period (e.g., overseas) and this has prevented registration of their transitional RBL by 4 April 1997;

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a serious illness has prevented the eligible person from registering the transitional RBL by 4 April 1997;

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an eligible person has sought information from a superannuation fund, employer or other organisation to enable the transitional RBL to be registered and they have not received that information by 4 April 1997; or

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an eligible person has applied for approval by the Tax Office of a higher arm's length salary under subregulation 47(3) of the ITR and a reply has not been received by the person by 4 April 1997. All applications for a higher arm's length salary must be lodged by that date.

4. Approval for registration of a transitional RBL after 4 April 1997 will not be granted generally where the above circumstances do not exist and an eligible person merely:

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was not aware of the need to lodge a transitional RBL application or was not aware that a Transitional RBL Application Form was required to be lodged by 4 April 1997; or

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forgot to register the transitional RBL by 4 April 1997.

5. An eligible person seeking approval to register a transitional RBL after 4 April 1997 must lodge a written request with the Tax Office clearly indicating the relevant circumstances which prevented the lodgment of a Transitional RBL Application Form within the extended date for registration.

Commissioner of Taxation
2 April 1997

References

ATO references:
NO NAT 97/1884-2

Subject References:
reasonable benefit limits
transitional reasonable benefit limits
transitional reasonable benefit limit applications

Legislative References:
TD 97/7w
ITR 47(3)
ITR 52
ITR 53
ITR 53A
ITR 53E