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Edited version of your private ruling
Authorisation Number: 1012560543015
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You cannot rely on the rulings in the Register of private binding rulings in your tax affairs. You can only rely on a private ruling that we have given to you or to someone acting on your behalf.
The Register of private binding rulings is a public record of private rulings issued by the ATO. The register is an historical record of rulings, and we do not update it to reflect changes in the law or our policies.
The rulings in the register have been edited and may not contain all the factual details relevant to each decision. Do not use the register to predict ATO policy or decisions.
Ruling
Subject: Collection of a government fee
Question
Is the government fee assessable to your company?
Answer
No.
This ruling applies for the following periods
Year ended 30 June 2014
Year ended 30 June 2015
Year ended 20 June 2016
The scheme commences on
1 July 2013
Relevant facts and circumstances
You have a website which offers an online lodgement product with a government department.
Your system guides the client through the steps in completing the application.
Once the application is completed, the client is required to pay the government lodgement fee and your service fee.
Once payment is received the application is electronically lodged with the government department.
The government department debits your business account on approval of the application.
You are a registered agent of the government department.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 6-5
Income Tax Assessment Act 1997 Section 6-10
Reasons for decision
Section 6-5 and section 6-10 of the Income Tax Assessment Act 1997 provide that the assessable income of an Australian resident taxpayer includes ordinary and statutory income derived directly and indirectly from all sources during the income year.
The Commissioner considers that you are merely acting as an agent on behalf of the government department and the fee you collect is not your income.
Therefore the amount is not assessable as either ordinary or statutory income and you are not required to include the amount in the company's income tax return.
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