ATO Interpretative Decision
ATO ID 2001/754 (Withdrawn)
Superannuation
Reasonable Benefit Limits: Extension of time to register a transitional reasonable benefit limit (TRBL).FOI status: may be released
-
This ATO ID is withdrawn from the database because it contains a view in respect of Division 14 of Part III of the Income Tax Assessment Act 1936 and Part 5A of the Income Tax Regulations 1936 (the RBL provisions). The RBL provisions do not apply for the 2007-08 income year and later income years. This ATO ID continues to be a precedential view in respect of decisions for income years up to, and including, the 2006-07 income years.This document incorporates revisions made since original publication. View its history and amending notices, if applicable.
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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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
Whether the Commissioner will allow an objection against a decision not to grant an extension of time to register a TRBL?
Decision
The Commissioner will allow an objection against a decision to grant an extension of time to register a TRBL and will allow until 1 August 2001 for the registration.
Facts
Taxation Determination TD 97/7 set out in what circumstances the Commissioner would register a TRBL under regulation 53E of the Income Tax Regulations 1936 (ITR 1936) after the general extension date of 4 April 1997.
The taxpayer was not aware of the requirement to register a TRBL by 4 April 1997. He also regularly travelled overseas for periods of up to three months during the lodgment period.
In February 2000 the taxpayer requested an extension of time to register a TRBL. The request was denied as the reasons for not registering by the required date did not meet the criteria set out in Taxation Determination TD 97/7.
On 16 November 2000 the taxpayer objected to the decision.
Reasons for Decision
Regulation 53E of the ITR 1936 requires that a TRBL should be registered with the Commissioner:
- •
- not later than 31 December 1996; or
- •
- if in a particular case the Commissioner allows registration at a later date - by that date.
On 12 December 1996, the Commissioner allowed a general extension for eligible persons to register TRBLs by 4 April 1997. TD 97/7 provided guidelines for allowing the registration of a TRBL after 4 April 1997.
This determination was withdrawn on 9 May 2001 following the Administrative Appeals Tribunal (AAT) decision in Case AT 1999/49, [2001] AATA 220, to allow an extension of time to register a transitional RBL after the general extension date of 4 April 1997.
The AAT's decision regarding regulation 53E indicated that the time limit was only set for normal and orderly administrative purposes and the discretion to grant an extension is basically unfettered.
In view of the above, the Commissioner will allow an objection against a decision to grant an extension of time to register a transitional RBL.
Furthermore even though the taxpayer did not specify a particular date to which he wished the time for registration extended the Commissioner allowed until 1 August 2001 for the registration.
Date of decision: 31 May 2001.
Legislative References:
Income Tax Assessment Act 1936
Section 140ZE
Section 14ZL
Section 14ZQ
Section 14ZU
Paragraph 14ZW(1)(c)
Section 14ZY Income Tax Regulations 1936
Regulation 53E
Regulation 53FA
Case References:
Case [2001] AATA 220
46 ATR 1203
Related Public Rulings (including Determinations)
TD 97/7
TD 97/7W - Notice of Withdrawal
Keywords
Reasonable benefit limits
Transitional RBLs
Arms length salary
Highest average salary
Extension of time
ISSN: 1445-2782
| Date: | Version: | |
| 31 May 2001 | Original statement | |
| You are here | 23 November 2007 | Archived |