On 23 April 2014 the ATO issued Wine Equalisation Tax Ruling WETR 2014/1 entitled “Wine equalisation tax: arrangements of the kind described in Taxpayer Alert TA 2013/2 Wine equalisation tax (WET) producer rebate schemes”.
The ruling provides the Commissioner’s views on the arrangements set out in Taxpayer Alert TA 2013/2 “Wine equalisation tax (WET) producer rebate schemes”.
The ruling considers whether Div 165 of the GST Act may apply to the arrangements in TA 2013/2. Division 165 contains the general anti-avoidance provisions for GST, WET and luxury car tax. The provisions allow the Commissioner to negate a permanent or timing advantage that an entity gets in relation to one of those taxes if the tax benefit results from a scheme and it is reasonable to conclude that the sole or dominant purpose of entering into or carrying out the scheme, or the principal effect of the scheme, is to get an entity such a benefit.
The ruling was previously released in draft as WETR 2013/D1.