How to apply for a private ruling

Relying on a private ruling

If you rely on an incorrect private ruling that benefits you - for example, your tax liability is less, or your grant or benefit amount is greater than it would otherwise have been - the Commissioner cannot apply the law in a way that is inconsistent with the private ruling, unless applying the law correctly would be of greater benefit to you.

If you choose not to rely on a private ruling and the position you adopt is shown to be incorrect, you will be required to pay any underpaid tax, or repay overpaid grant or benefit - interest will generally also be payable on that amount. You may also be required to pay a penalty on the underpaid tax or overpaid grant or benefit if you do not have a reasonably arguable position, or have not taken reasonable care.

A private ruling only applies to the particular scheme or circumstance that it describes. If there is a material difference between the scheme described and what actually occurs, the private ruling is ineffective.