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Taxation Determination

TD 2003/29

Income tax: Simplified Tax System: can an entity that has notified the Commissioner of its choice to stop being an STS taxpayer for an income year, later cancel that choice for that year?

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FOI status:

may be released

Preamble
The number, subject heading, date of effect and paragraph 1 of this Taxation Determination are a 'public ruling' for the purposes of Part IVAAA of the Taxation Administration Act 1953 and are legally binding on the Commissioner. The remainder of this Determination is administratively binding on the Commissioner. Taxation Rulings TR 92/1 and TR 97/16 together explain how a Determination is legally or administratively binding.

1. No. An entity that has notified the Commissioner of its choice to stop being a STS taxpayer[F1] under paragraph 328-440(1)(a) of the Income Tax Assessment Act 1997 (ITAA 1997), for an income year, cannot later cancel that choice for that year.

2. Having made the choice to stop being an STS taxpayer, the entity can only again become an STS taxpayer if it satisfies subsection 328-440(3) of the ITAA 1997. This subsection provides that an entity that chooses to stop being an STS taxpayer cannot again become an STS taxpayer until at least five years after the income year in which it leaves the STS.

Date of Effect

3. This Determination applies to assessments for income years starting on or after 1 July 2001, to which Division 328 applies. However, the Determination will not apply to taxpayers to the extent that it conflicts with the terms of settlement of a dispute agreed to before the date of issue of the Determination (see paragraphs 21 and 22 of Taxation Ruling TR 92/20).

Commissioner of Taxation
3 December 2003

Footnotes

1 The term STS taxpayer is defined in section 328-435 of the Income Tax Assessment Act 1997.

Previously released in draft form as TD 2003/D18.

References

ATO references:
NO 2002/020333

ISSN: 1038-8982

Related Rulings/Determinations:

TR 92/1
TR 92/20
TR 97/16

Subject References:
leaving the STS
simplified tax system
STS taxpayers

Legislative References:
ITAA 1997 Div 328
ITAA 1997 Div 328-435
ITAA 1997 328-440(1)(a)
ITAA 1997 328-440(3)
TAA 1953 Part IVAAA

TD 2003/29 history
  Date: Version: Change:
You are here 3 December 2003 Original ruling  
  7 December 2016 Withdrawn  

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