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Edited version of private advice
Authorisation Number: 5010070504304
Date of advice: 29 September 2020
Ruling
Subject: Taxable payments annual report
Question
Is the work performed on or in relation to the naval ship, work performed on or in relation to a 'building, structure, works, surface or sub-surface' in accordance with Regulation 70 of the Taxation Administration Regulations 2017 (Cth)?
Answer
No.
Building, structure, works, surfaces or sub-surface are not defined in the Taxation Administration Act 1953. However, the Explanatory statement to subregulation 64(6) to the Taxation Administration Amendment Regulation 2012 (No. 1) provides a list of forty examples that would be considered a building, structure, works, surfaces or sub-surfaces. The list includes all examples of things that are permanently fixed to a single location and does not represent moveable assets.
This ruling applies for the following period:
Year ending 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
The Company is an Australian tax resident company that specialises in the provision of naval and marine services.
The Company holds the In-Service Sustainment and Support Contract (ISSC) for a naval ship owned and operated by the Royal Australian Navy and the Australian Department of Defence.
The services provided by the Company on, or in relation to the naval ship account for 100% of the services provided by the Company.
The naval ship is a support vessel which provides naval logistics support humanitarian assistance and disaster relief.
Under the ISSC the Company provides the following naval and marine services directly to the Department of Defence for the naval ship:
· Maintenance Services as on-board ship repair;
· Supply Support Services as the purchasing and procurement of marine equipment ships spare parts;
· Engineering Services as the development, implementation and control of alterations and changes;
· Other Asset Management and Professional/Technical Marine Services;
· HSEQ, Support Services Management and Administration; and
· The facilitation of ship's company training.
The Company employs professional staff as well as engaging sub-contractors to provide the ISSC services, and earns 100% of its income from the provision of ISSC Services in respect of the naval ship. These services are primarily delivered at the home port for the naval ship, however may be conducted elsewhere in Australia or internationally from time to time.
Relevant legislative provisions
Regulation 70 of the Taxation Administration Regulations 2017 (Cth)