The draft Ruling sets out the Commissioner’s view of the meaning of ‘legally and economically independent’ for the purposes of the ‘excise remission scheme for manufacturers of alcoholic beverages’ (Remission Scheme) and the ‘excise refund scheme for alcohol manufacturers’ (Refund Scheme). The Remission Scheme replaced the Refund Scheme for eligible alcoholic beverages that entered home consumption on or after 1 July 2021.

The Ruling does not consider the other eligibility criteria for the Remission Scheme or the Refund Scheme.

Under the Remission Scheme, an entity is only entitled to a remission for goods entered in a financial year if the entity is legally and economically independent from any other alcohol manufacturer that has already received a remission for goods entered in the same year.

The phrase ‘legally and economically independent’ is not defined in the Excise legislation. The draft goes on to provide factors in determining what tis legal independence and economic independence.

The ruling does not appear to create any new factors or concerns, but simply clarifies existing arrangements.