ATO Interpretative Decision
ATO ID 2004/88 (Withdrawn)
Excise
Wine Equalisation Tax: grape wine product - additivesFOI status: may be released
-
This ATO ID is a simple restatement of the law and does not contain an interpretive decision.This document incorporates revisions made since original publication. View its history and amending notices, if applicable.
Status of this decision: Decision Withdrawn 24 July 2009
This ATOID provides you with the following level of protection:
If you reasonably apply this decision in good faith to your own circumstances (which are not materially different from those described in the decision), and the decision is later found to be incorrect you will not be liable to pay any penalty or interest. However, you will be required to pay any underpaid tax (or repay any over-claimed credit, grant or benefit), provided the time limits under the law allow it. If you do intend to apply this decision to your own circumstances, you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed. You may wish to obtain further advice from the Tax Office or from a professional adviser.
Issue
Can either iso-propyl alcohol or propylene glycol be used in the production of a beverage that is a 'grape wine product' as defined in section 31-3 of the A New Tax System (Wine Equalisation Tax) Act 1999 (the WET Act)?
Decision
Yes. Iso-propyl alcohol or propylene glycol can be used in the production of a beverage that is a 'grape wine product' as defined in section 31-3 of the WET Act.
Facts
Flavours that contain iso-propyl alcohol or propylene glycol are used in the manufacture of beverages.
Reasons for Decision
A 'grape wine product' is defined in section 31-3 of the WET Act as a beverage that:
- (a)
- contains at least 700 millilitres of grape wine per litre; and
- (b)
- has not had added to it, at any time, any ethyl alcohol from any other source, except:
- (i)
- grape spirit; or
- (ii)
- alcohol used in preparing vegetable extracts (including spices, herbs and grasses); and
- (c)
- contains at least 8% by volume of ethyl alcohol, but not more than 22% by volume of ethyl alcohol; and
- (d)
- complies with any requirements of the regulations, made for the purposes of section 31-8, relating to grape wine products.
From the definition it is evident that ethyl alcohol (other than ethyl alcohol derived from grape spirit or ethyl alcohol used in preparing vegetable extracts) is the only substance which, when added to a beverage, precludes the beverage from satisfying the requirements for a 'grape wine product'.
Iso-propyl alcohol and propylene glycol each have a different chemical formula from ethyl alcohol. The chemical formula for each chemical compound is as follows:
| Ethyl alcohol | C2 H5 OH |
| Iso-propyl alcohol | C3 H7 OH |
| Propylene glycol | C3 H6 (OH)2 |
Clearly iso-propyl alcohol and propylene glycol are different chemical compounds from ethyl alcohol. It follows that they may be added to a beverage without the beverage being precluded from satisfying the definition of 'grape wine product'.
Date of decision: 14 January 2004
Legislative References:
A New Tax System (Wine Equalisation Tax) Act 1999
section 31-3
Related Public Rulings (including Determinations)
Wine Equalisation Tax Ruling WETR 2002/2
Keywords
Grape wine products
Wine equalisation tax
ISSN: 1445-2782
| Date: | Version: | |
| 14 January 2004 | Original statement | |
| You are here → | 24 July 2009 | Archived |