Draft Taxation Determination
TD 2003/D18
Income tax: Simplified Tax System (STS): 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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Please note that the PDF version is the authorised version of this draft ruling.This document has been finalised by TD 2003/29.
FOI status:
draft only - for commentPreamble
| This document is a draft for industry and professional comment. As such, it represents the preliminary, though considered views of the Australian Taxation Office. This draft may not be relied on by taxpayers and practitioners as it is not a ruling for the purposes of Part IVAAA of the Taxation Administration Act 1953. It is only final Taxation Determinations that represent authoritative statements by the Australian Taxation Office. |
1. No. An entity that has notified the Commissioner of its choice to stop being an STS taxpayer 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. When the final Determination is issued, it is proposed to apply both before and after its date of issue. 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).
Your comments
4. We invite you to comment on this draft Taxation Determination. Please forward your comments to the contact officer by the due date.
| Comments by Date: | 1 October 2003 |
| Contact officer details have been removed following publication of the final ruling. | |
Commissioner of Taxation
3 September 2003
Not previously issued in draft form.
References
ATO references:
NO 2003/009781
Related Rulings/Determinations:
TR 92/20
Subject References:
leaving the STS
re-entering the STS
simplified tax system
STS taxpayers
Legislative References:
ITAA 1997 328-440(1)(a)
ITAA 1997 328-440(3)
TAA 1953 Pt IVAAA
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