According to the Australian Taxation Office (ATO) website, a private ruling “sets out the Commissioner’s opinion about the way a tax law applies, or would apply, to you in relation to a specified scheme or circumstance”. A private ruling can deal with any aspect of an entity’s liability to pay tax, including:
- Income tax
- Withholding tax
- Mining withholding tax
- Fringe FBT
- Franking tax
- Medicare levy
- Indirect tax
The Commissioner is bound by the ruling where the entity relies on the ruling. However, it should also be noted that private rulings are subject to an appeal.
In order to obtain a private ruling, an application in the prescribed form must be made to the ATO. Given that any application, objection or appeal requires you to state issues of law and fact it is necessary to get the right legal advice at your earliest opportunity so that your chance of success is not prejudiced.
Our Sydney Tax Lawyers regularly assist clients, both individuals and large businesses, with the lodgment of private rulings. Our Sydney Taxation Lawyers can help you determine whether it is appropriate to make an application for a private ruling or whether you may rely on a prior public or oral ruling given by the Commissioner.
For quality and professional Taxation advice, we invite you to contact our office to speak to one of our dedicated Sydney Taxation Solicitors. For a full list of our office locations, with complete addresses, click on our Locations tab above or contact our main office line on (02) 9233 4048.
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