A public ruling, when issued, is the published view of the Commissioner of State Revenue (the Commissioner) on the particular topic to which it relates. It therefore replaces and overrides any existing private rulings, memoranda, manuals and advice provided by the Commissioner in respect of the issue(s) it addresses.
Where a change in legislation or case law (the law) affects the content of a public ruling, the change in the law overrides the public ruling—that is, the Commissioner will determine the tax liability or eligibility for a concession, grant or exemption, as the case may be, in accordance with the law.
A company is incorporated in Queensland and has its registered office in Queensland where its directors meet and its shareholders reside and meet. The company owns a business that is conducted in NSW and is managed by an officer of the company who resides there. The central management and control of the company would be considered to abide in Queensland and therefore the company would be considered to reside in Queensland. Any debt owed to a Queensland business by the company would be a Queensland business asset.
A company is incorporated in Queensland where it operates a business. The registered office is in Queensland. There are three directors, one residing in Queensland, one in NSW and one in Victoria. Central management and control is exercised by the directors through meetings held by tele-conference. The central management and control of the company would be considered to abide in Queensland, NSW and Victoria. Therefore the company would be considered to reside in all three States. Any debt owed by the company to a Queensland business would be a Queensland business asset.
A company conducts a business in Queensland where its directors reside and meet. The company is owned by a sole shareholder residing in Victoria. The sole shareholder has the power, through its constitution, to appoint and remove the managing director and any directors and exercises complete management and control over the business operations and internal administration of the company. As the place where the actual decisions are made is Victoria, central management and control would be considered to abide in that State and not in Queensland. Therefore the company would be considered to reside in Victoria. Any debt owed by the company to a Queensland business would not be a Queensland business.
Commissioner of State Revenue
Date of issue: 24 February 2009
|Public Ruling||Issued||Dates of effect|
|DA035.1.1||24 February 2009||24 February 2009||Current|
|Supersedes Practice Direction DA 49.1||17 May 2002||17 May 2002||23 February 2009|