Before you apply
To make the application process for a product ruling as efficient and fast as possible, there are some simple things you can do:
- Contact us for advice.
- Download and complete the appropriate application form, which details all the information you need to provide to us
- Financial products application form
- Division 394 forestry application form
- Agribusiness (except Division 394 forestry managed investment schemes) application form
- For all other product types, contact us for advice on whether a product ruling is appropriate and which application form to use.
- When completing the application form, make sure you provide all information upfront and explain complex issues in full.
- Review the information for applicants about specific product types.
Provide all information
All questions must be answered honestly and completely. We will not rule if you provide insufficient information. We need to understand an arrangement and analyse the information provided before we rule. Product rulings are not provided on the basis of similarities to other published rulings – all ruling requests are assessed on their own merits.
We will request further details if you provide insufficient information. It is in your interest to make a full disclosure at the earliest possible time to avoid delaying the application process. If we do not receive all of the necessary information, we may refuse to rule.
Frequently adding or updating material to support your request can cause delays. You can avoid this by providing a complete application form. We will only process your application if you have made a serious attempt to provide all necessary information. Any revision of arrangements or submission of additional material, whether requested by us or not, may be treated as a fresh application, made at the time the revised or additional material is received.
A product ruling will not be given if it depends on an unresolved issue, such as whether a taxpayer is in business. No certainty can effectively be given in such cases.
Explain complex issues
Product ruling arrangements can be very complex. Having worked on the development of your product, you no doubt understand the arrangement you propose. However, before we can issue a product ruling, we also need to fully understand the arrangement.
We will meet with applicants to discuss the arrangement whenever practicable, but we suggest that you explain the arrangement in your application form as simply as possible. This will minimise the time it takes for us to understand your product.
Lodge your application form
Email the completed application form and all supporting documentation to ATO-Product-Rulings@ato.gov.au, indicating on the form where we can find the relevant information.
What you can expect from us
We will acknowledge your product ruling application form within 5 working days of it being allocated to a case officer, who will advise you of their contact details.
We then review the application form and contact you for more information if necessary. Where an application is incomplete, we will advise you that it is invalid and that we cannot work on it until you provide this information.
We aim to finalise applications in the shortest time possible. However, the actual turnaround time depends for the most part on the quality of the application, the level of disclosure and the time at which all relevant information is available to us.
If we rule unfavourably
A product ruling will only be published if the applicant agrees. In reality, this means that an unfavourable product ruling is unlikely to be issued.
We are more likely to refuse to rule if the outcome is unfavourable, as the existence of a product ruling, even in unfavourable terms, might be misleading to potential investors.
Challenging a product ruling?
While product rulings are not covered by the objection and appeal provisions, if you wish to challenge our decision on a ruling application, we will agree to consider issuing a private ruling in response to a valid private ruling application. Such a private ruling is then subject to challenge in the usual way. See Steps to take if you would like a decision reviewed.
General anti-avoidance provisions
We rule on the tax laws to the extent requested in an product ruling application and this may include the general anti-avoidance provisions in Part IVA of the Income Tax Assessment Act 1936. Part IVA protects the integrity of our income tax system by ensuring that arrangements contrived to obtain tax benefits will fail.
While ruling on a prospective transaction (as may be the case with a product ruling) presents special challenges (see Bellinz Pty Ltd & Ors v the Commissioner of Taxation [1998] FCA 615), in the interests of certainty we will rule on the application of Part IVA.
However, in order to provide the certainty of a legally binding ruling, we need to be specific about the arrangement we're ruling on and we'll describe it in depth in a product ruling.
If you seek a product ruling on Part IVA, your application must properly address those provisions with an emphasis on the factors relevant to determining dominant purpose.
If we are not able to give a positive Part IVA clearance, we will refuse to rule. A qualified Part IVA ruling provides no certainty and could be misleading to potential participants or investors.
If requested, we will also rule on other avoidance rules.