ATO Interpretative Decision
ATO ID 2004/267 (Withdrawn)
Excise
Energy Grants Credits Scheme: off-road - forestry - tending - weed control sprayingFOI status: may be released
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This ATO ID is withdrawn because it is superseded by paragraph 94 of Product Grants and Benefits Ruling PGBR 2005/1.This document incorporates revisions made since original publication. View its history and amending notices, if applicable.
Status of this decision: Decision Withdrawn 1 April 2010
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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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
Is the spraying of weeds around young plantation trees that are intended for felling in order to control weeds, the 'tending' of trees for the purposes of paragraph 35(a) of the Energy Grants (Credits) Scheme Act 2003 (EGCSA)?
Decision
Yes. The spraying of weeds around young plantation trees that are intended for felling in order to control weeds is the 'tending' of trees for the purposes of paragraph 35(a) of the EGCSA.
Facts
The client is contracted by a forestry authority to spray weeds around young trees in a plantation in order to control the weeds. The weeds are sprayed with a herbicide.
The trees in the plantation are intended for felling.
The client undertakes the spraying using a diesel powered tractor.
Reasons for Decision
Subsection 53(1) of the EGCSA states that you are entitled to an off-road credit if you purchase diesel fuel for a use by you that qualifies, including forestry. 'Forestry' is relevantly defined in section 35 of the EGCSA as:
- (a)
- the planting or tending, in a forest or plantation, of trees intended for felling; or ...
In this instance, the trees are in a plantation and are intended for felling. The issue for determination is whether spraying for weed control is within the meaning of the phrase 'tending ... of trees.'
The term 'tending' is not defined in the EGCSA and therefore it takes on its ordinary, common meaning. In the Macquarie Dictionary 2001, rev. 3rd edn, The Macquarie Library Pty Ltd, NSW the verb to tend is defined as:
1.
to attend to by work or services, care etc: to tend a fire
2.
to look after; watch over and care for; minister to or wait on with service.
Consequently, the 'tending of trees' means the undertaking of activities to ensure the survival of the trees or to enhance their growth, quality and vigour. Therefore, the 'tending of trees' includes activities such as:
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- fertilising after planting
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- spraying trees against pests and diseases
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- weeding the area in which trees are planted, and
- •
- watering.
The spraying of weeds around young trees for the purposes of weed control is part of caring for the trees to ensure their survival. It is 'tending' the trees and is therefore 'forestry' for the purposes of paragraph 35(a) of the EGCSA.
Date of decision: 8 March 2004
Legislative References:
Energy Grants (Credits) Scheme Act 2003
paragraph 35(a)
subsection 53(1)
ATO ID 2004/268
Other References:
The Macquarie Dictionary 2001, rev. 3rd edn, The Macquarie Library Pty Ltd, NSW
Keywords
EGCS forestry
EGCS off-road
EGCS planting or tending
Energy grants (credits) scheme
ISSN: 1445-2782
| Date: | Version: | |
| 8 March 2004 | Original statement | |
| You are here → | 1 April 2010 | Archived |
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