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.
Under a particular Act (the Act):
Although the terms of the administrative arrangement as detailed in paragraph 22 of this public ruling means that Company A and Company B will not be grouped on account of the state’s shareholdings, the companies will be grouped under section 71(1) of the Payroll Tax Act because the two common directors (collectively holding two-thirds of the voting power) have a controlling interest in the business of each company under section 71(2)(c).
In considering an application for an exclusion order by Company A, the Commissioner must disregard the impact that the common directorship has on the businesses carried on by Company A and Company B. This is because the common directorship is a requirement of the Act that established the two companies.
If the common directorship was not required by the Act (i.e. a decision was made to appoint the same two people as directors of the two companies, without a legislative requirement to do so), the Commissioner would not be required to disregard the common directorship when considering an application for an exclusion order.
Acting Commissioner of State Revenue
Date of issue: 18 January 2023
|Public Ruling||Issued||Dates of effect|
|PTAQ000.7.1||18 January 2023||18 January 2023||Current|