October 2012

finance.wa.gov.au

October 2012

October 2012

In this issue:

Page 1

New Commissioner’s Practices Published

Duties Amendments

New Look ROL

Page 2

Revenue Online – Online Duties

- Terminating a Transaction on Relevant

Grounds

- Transferring Transactions to OSR

Page 3

Pay-roll Tax – Employee Share Acquisitions

New Commissioner’s Practices Published

Duties Amendments

Over the last few weeks, the Office of State Revenue

has published several new Commissioner’s

Practices relating to the Taxation Administration

Act 2003.

TAA 19.1 outlines how penalty tax raised under

section 26 of the Taxation Administration Act 2003

will be remitted in circumstances where the

Commissioner makes a reassessment of duty or

tax because a previous assessment was incorrect.

TAA 16.2 outlines matters relating to the time

periods for which assessments and reassessments

of pay-roll tax, stamp duty, insurance duty, tax

under a special tax return arrangement, transfer

duty, and land tax will be made by the

Commissioner.

These Commissioner’s Practices can be accessed

from the Publications and Resources section of

our website.

In addition, the new Commissioner’s Practice

relating to the First Home Owner Grant (FHOG 3.0)

outlines the circumstances in which a penalty of

less than 100 per cent will be imposed where the

first home owner grant (FHOG) was paid in error

to an ineligible applicant because the applicant

provided false or misleading information or where

the FHOG was paid in anticipation of the applicant

complying with the residence requirement but

that condition was not met.

The Revenue Laws Amendment Act 2012

(formerly known as the Revenue Laws

Amendment Bill 2011) received Royal Assent on 3

September 2012.

For further information on the changes refer

to Duties Circular 10.

The information provided in the circular is not

an exhaustive explanation of the amendments,

and reference should be made to the Act and

the Explanatory Memorandum.

New Look ROL

The Office of State Revenue has been working

diligently behind the scenes on a new look for

Revenue Online.

With a streamlined and contemporary look and

feel combined with significant enhancements

under the covers, the new system responds to

our client needs into the future.

We will begin introducing the new features soon

as we roll-out incremental releases over the

coming months, with the initial focus on your

Pay-roll Tax lodgements and transactions.


Revenue Online (Online Duties)

Terminating a Transaction

on Relevant Grounds

Transferring Transactions to

Office of State Revenue (OSR)

A transaction can only be terminated on relevant

grounds if it is a General Conditional Agreement.

All other types of transactions must be cancelled

under section 107 of the Duties Act 2008.

A General Conditional Agreement is terminated

on relevant grounds if it is not carried into

effect because of the non-fulfilment of a condition

to which it was subject, and duty would not be

chargeable on the transaction under section 107

of the Duties Act. In these circumstances,

the agreement would not be liable for duty

and there is no requirement to apply for the

transaction to be cancelled.

To terminate a transaction on relevant grounds

you will need to view the specific transaction.

You can view a specific transaction using either

the Search Transaction or the Return Summary

screen in Revenue Online (Online Duties).

Once you have selected the specific transaction

to view, click on the ‘Cancel Transaction’ button

to go to the Online Duties – Cancel Transaction

screen and then select the ‘Terminated on

Relevant Grounds’ option.

Please note that the ‘Terminated on Relevant

Grounds’ option will only appear if the transaction

is a General Conditional Agreement.

If a General Conditional Agreement was not

lodged in Online Duties as a General Conditional

Agreement, you will have to modify the transaction

to a General Conditional Agreement first, wait

for the update to occur (which may take up to

10 minutes), then proceed to terminate the

transaction on relevant grounds.

The Transfer to OSR facility is used when

transferring a transaction entered in Online

Duties to OSR for actioning.

Examples include:

• transactions not eligible for self

assessment that were lodged in Online

Duties in error;

• applying for an instalment arrangement;

• for assessment of Duty by OSR; and

• cancellation of the transaction (under

section 107).

To transfer a transaction to OSR you will need

to view the specific transaction. You can view

a specific transaction using either the Search

Transaction or the Return Summary screen (to

view transactions with a status of Current only).

Once you have located the specific transaction,

Click on the ‘Transfer to OSR’ button.

Once the transaction is transferred to OSR, you

are required to lodge the following

documentation with OSR within 7 days:

• the original transaction;

• the Dutiable Transaction Lodgment form;

and

• any other relevant documentation related

to the transaction (eg. a covering letter

to advise the reason of the transfer).

For details on how to perform functions available in

Online Duties, please refer to the Online Duties User

Guidelines.

For enquiries or assistance, please contact our

Customer Service Officers on 9262 1113.


Pay-roll Tax - Employee Share Acquisitions

The Revenue Laws Amendment Act 2012, which

received Royal Assent on 3 September 2012,

amended the employee share scheme provisions

under the Pay-roll Tax Assessment Act 2002

(the Act) to accommodate changes to the

Income Tax Assessment Act 1936 (Cwth).

From 1 July 2009 the grant of a share or option

is included in the definition of wages if the share

or option is an Employee Share Scheme (ESS)

interest within the meaning of section 83A-10 of the

Income Tax Assessment Act 1997 (Cwth) and it is

granted to the employee under an employee share

scheme within the meaning of that section.

An employee share scheme is a scheme under

which ESS interests in a company are provided

to employees (or associates of employees),

including past and prospective employees of the

company or any subsidiary of the company.

These provisions do not apply if the grant of the

share or option is wages under any other provision.

A grant of a share or option that is not an

ESS interest will be liable to pay-roll tax as a fringe

benefit under subdivision 2 of Division 2A of Part 2

of the Act.

Employers will in most circumstances now be able

to elect the date pay-roll tax is payable on the liability

of an ESS interest.

Where an employer has used a different

valuation method of shares/options (period from

1 July 2009 to 30 June 2011) and lodged a

return accordingly:

Employers relying solely on the provisions of

section 9DD of the Act as it stood before 1 July 2011

may have valued shares or options under the

provisions of Subdivision F of Division 13A of the

Income Tax Assessment Act 1936 (Cwth).

In cases where an employer has declared on a

return the grant of shares/options as wages for the

period from 1 July 2009 until 30 June 2011 and has

used a valuation method in line with Division 13A

for that period, the Commissioner will not

reassess that return using the provisions of Division

83A of the Income Tax Assessment Act 1997 (Cwth),

by virtue of the operation of section 25 of the

Revenue Laws Amendment Act 2012.

For more information on employee share acquisitions

please refer to the Employee Share Acquisitions fact

sheet.

Have Your Say

At the Office of State Revenue, we strive to continuously improve our services to provide you

with meaningful information that will assist you to meet your legislative obligations.

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Office of State Revenue

Enquiries

Duties 9262 1100

Land Tax 9262 1200

Online Pay-roll Tax 9262 1300

Online Duties 9262 1113

First Home Owner Grant 9262 1299

Anonymous Information 9262 1380

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