| Disclaimer This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law. You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of private ruling
Authorisation Number: 1011753569624
This edited version of your ruling will be published in the public Register of private binding rulings after 28 days from the issue date of the ruling. The attached private rulings fact sheet has more information.
Please check this edited version to be sure that there are no details remaining that you think may allow you to be identified. Contact us at the address given in the fact sheet if you have any concerns.
Ruling
Subject: Tax treatment of Hire payments under a time charterparty
The Rulee asked the following questions and the Commissioner ruled:
Question 1
Is Company X 'a person whose principal place of business is out of Australia' for the purposes of section 129 of the ITAA 1936?
Answer
For the purposes of section 129 of the ITAA 1936, the 'principal place of business' of Company X is out of Australia.
Question 2
Is the act of carrying goods and personnel between an Australian port and an offshore installation in Australian waters the 'carriage of goods or passengers' for the purposes of section 129 of the ITAA 1936?
Answer
No. The carriage of goods and personnel by the vessels owned by Company X (Company X vessels) between an Australian port and an offshore installation in Australian waters, does not amount to the 'carriage of goods or passengers' for the purposes of section 129 of the ITAA 1936.
Question 3
Is the act of towing an offshore installation by a vessel in Australian waters the 'carriage of goods
or passengers' for the purposes of section 129 of the ITAA 1936?
Answer
No. The act of towing an offshore installation by the Company X vessels in Australian waters does
not amount to the 'carriage of goods or passengers' for the purposes of section 129 of the ITAA
1936.
Question 4
Are activities associated with the towing of an offshore installation the 'carriage of goods' for the
purposes of section 129 of the ITAA 1936?
Answer
No. Activities associated with the towing of an offshore installation by the Company X vessels in
Australian waters do not amount to the 'carriage of goods' for the purposes of section 129 of the
ITAA 1936.
Question 5
Does section 129 of the ITAA 1936 apply to payments for standby services as detailed in the
supporting letter to the ruling application?
Answer
No. Section 129 of the ITAA 1936 does not apply to payments made to Company X for standby services provided by the Company X vessels.
Question 6
If the answer to question 5 above is 'no', does section 129 of the ITAA 1936 apply to any of the
specific types of standby services described in the supporting letter to the ruling application:
· standby incidental to offshore installation operations; and
· safety standby?
Answer
No. Section 129 of the ITAA 1936 does not apply to payments made to Company X for standby
services provided by the Company X vessels, being for:
· standby incidental to offshore installation operations; and
· safety standby.