Disclaimer
This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law.

You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4.

Edited version of your written advice

Authorisation Number: 1012942198112

Date of advice: 3 March 2016

Ruling

Subject: Licensing of in-house software

Question 1

Are the ERP Customisations held by Company A an 'in-house software' depreciating asset for the purposes of Division 40 of the Income Tax Assessment Act 1997 (ITAA 1997)?

Answer

No.

Question 2

Answer

No.

Answer

Yes.

Question 3

If the answer to Question 2(b) is yes, and the cost of the new in-house software asset is the same amount as the existing adjustable value of the in-house software asset that is split, will the same amount as the existing adjustable value of the in-house software asset be depreciable under Division 40 of the ITAA 1997?

Answer

Yes.

Question 4

Will the Licence Fee received by Company B be assessable as ordinary income under section 6-5 of the ITAA 1997?

Answer

No.

Question 5

Will the Licence Fee received by Company B be assessable as a royalty within the ordinary meaning of "royalty" as a consequence of section 15-20 of the ITAA 1997?

Answer

No.

Question 6

Will the CGT provisions in Part 3-1 of the ITAA 1997 apply to give rise to a capital gain at the time that Company A grants the Licence to Company C?

Answer

Yes.

This ruling applies for the following periods:

Income year ended 30 June 2016

Relevant facts and circumstances

This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling.

Company B is an Australian proprietary company incorporated in 19XX.

Company B is 100% owned by Company C.

Company C is incorporated outside of Australia.

Company B is the vehicle for all operations of Company C in Australia. Company B is the head company of the income tax consolidated group in Australia that has numerous subsidiaries, including Company A.

The Business Unit was formed in 20XX. The Business Unit is an internal management reporting unit comprising its Australian and offshore trading entities.

The Business Unit initially ran a disparate set of legacy information technology (IT) platforms with business processes that were different across Australia and its offshore and within companies in those jurisdictions. The core IT platforms used in the Business Unit were between X to XX years old and required replacement in order to sustain current performance.

Project A

The Business Transformation Unit was established in 20XX with the goal of implementing common business processes across the Business Unit. The transformation program was intended to deliver a unified operational structure for the Business Unit with standardised, simplified business processes and a single source of commercial information for decision making across the Business Unit.

The Business Transformation Unit selected the latest version of an ERP software ("ERP software") as the technology solution for Company B and its business units in Australia and the offshore trading entities. ERP software is enterprise resource planning software developed by a foreign software company. Company C entered into standard licence agreements with the foreign software company to use the base ERP software and certain 'off the shelf' modules (ERP Licence).

The ERP Licence confer rights upon Company C and its affiliates to use the base ERP software so long as any such use is within the terms of the ERP Licence.

The ERP Licence states that the foreign software company retains legal title to the base code of the ERP software whilst Company C has ownership of any modifications and extensions to the software which do not alter the base source code of the ERP software.

The implementation of ERP software in the Business Unit required the customisation of the standard ERP software 'off the shelf' modules to meet the business specific needs of the Business Unit. The outputs of this process included the system code, systems and user documentation, test scripts and training manuals. The modifications and extensions of the ERP software which did not alter the base source code of the ERP software are hereafter referred to as the ERP Customisations. The systems and user documentation, test scripts and training manuals are hereafter referred to as the Other Materials.

It took less than five years to fully implement the latest version of ERP software and the ERP Customisations in the Business Unit. The cost of implementing the ERP software and the ERP Customisations in the Business Unit were treated as capital for tax purposes. The cost was not allocated to a software development pool and no amount was claimed as eligible research and development (R&D) expenditure under the R&D tax concession or R&D tax incentive.

Company A owns all copyright in the ERP Customisations and Other Materials which arises under the Copyright Act 1968.

Project B

In 20XX Company C decided to implement standardised systems, processes and data environment globally. The project to implement these changes was referred to as Project B.

Project B includes the development and implementation of a global ERP template. Company C considered several approaches for the implementation of a global ERP template, including:

Company C determined that it needed to move toward the development and implementation of a single global instance of an ERP system.

Company C decided that in order to fast track development of a single global instance of ERP it would build upon an existing ERP system within the group as opposed to starting afresh with a completely new instance. Company C decided that it would use the latest version of ERP and the ERP Customisations developed by Company A for use within the Business Unit.

Company C will bear the costs of further developing the ERP Customisations as a global ERP template. In order to undertake Project B and develop a global ERP template Company A will grant Company C access and rights to:

On completion of Project B the ERP instance and further developed ERP Customisations created under Project B will operate independently and separately from the ERP instance and ERP Customisations created under Project A.

Licence for Project A Instance

Company A will grant Company C rights to the ERP Customisations and Other Materials by way of a perpetual licence. A draft licence agreement has been prepared to give effect to this decision (Licence Agreement).

The Licence Agreement provides that Company A (as Licensor) will grant Company C (as Licensee) an exclusive licence to use the ERP Customisations and Other Materials in all jurisdictions with the exception of Australia where Company C will have a non-exclusive licence to use the ERP Customisations and Other Materials.

The Licence Agreement contains the following relevant definitions:

Project A IP means:

Licence has the meaning given in the Agreement.

Licence Fee is TBC, payable in the Agreed Currency.

The Licence Agreement states that the Licensor grants to the Licensee an exclusive licence to Use the Project A IP in all Overseas Jurisdictions, and a non-exclusive licence to Use the Project A IP in Australia (Licence).

The Licence Agreement states that the Licensor retains both the legal and beneficial ownership of the Project A IP.

The Licence Agreement states that the Licensor reserves the right to access, utilise, employ, store and exploit the Project A IP throughout Australia, including sub-licensing the Project A IP to members of the Group located in Australia (for their Use solely in Australia). The Licensor has no rights to Use the Project A IP in any Overseas Jurisdiction.

The Licence Agreement states that on the Effective Date, the Licensor will deliver, or provide access, to the Licensee of copies of all Documents relating to the Project A IP.

The Licence Agreement states that in consideration of the grant of the Licence, the Licensee agrees to pay the Licence Fee to the Licensor in one amount on the Effective Date in Immediately Available Funds.

The Licence Agreement states that if required, the Licensor shall provide a Tax Invoice to the Licensee in respect of the Licence Fee.

The Licence Agreement states that the Licence Fee is not refundable in any circumstances.

A market value determination will be made to calculate the appropriate arm's length quantum of the Licence Fee. This valuation will be calculated by reference to the anticipated cost to replicate the Project A IP by Company C.

The Licence Agreement states that save for Specified Purposes, the Licensee is prohibited from copying, modifying, adapting or decompiling any software which forms part of the Project A IP.

The Licence Agreement states that the Licensee acknowledges that the Project A IP (and all Intellectual Property rights, including copyright, in the Project A IP) is and shall remain the sole property of the Licensor.

The Licence Agreement states that on termination of the Licence, the Licensee's rights under the Licence shall immediately cease, but each party shall retain any rights it had against the other party in respect of any past breach of this document.

The Licence Agreement states that on termination of the Licence, the Specifications and all Documents provided by the Licensor to the Licensee which relate to the Project A IP, at the option of the Licensor must be promptly returned, destroyed or permanently deleted.

Relevant legislative provisions

Copyright Act 1968 10

Copyright Act 1968 13

Copyright Act 1968 31

Income Tax Assessment Act 1997 6-5(1)

Income Tax Assessment Act 1997 6-10(1)

Income Tax Assessment Act 1997 10-5

Income Tax Assessment Act 1997 15-20

Income Tax Assessment Act 1997 Division 40

Income Tax Assessment Act 1997 Subdivision 40-D

Income Tax Assessment Act 1997 40-30

Income Tax Assessment Act 1997 40-30(2)

Income Tax Assessment Act 1997 40-30(2)(c)

Income Tax Assessment Act 1997 40-30(4)

Income Tax Assessment Act 1997 40-85

Income Tax Assessment Act 1997 40-115

Income Tax Assessment Act 1997 40-115(1)

Income Tax Assessment Act 1997 40-115(2)

Income Tax Assessment Act 1997 40-115(3)

Income Tax Assessment Act 1997 40-205

Income Tax Assessment Act 1997 40-285

Income Tax Assessment Act 1997 40-285(1)

Income Tax Assessment Act 1997 40-285(2)

Income Tax Assessment Act 1997 40-295

Income Tax Assessment Act 1997 40-295(1)

Income Tax Assessment Act 1997 40-295(1)(a)

Income Tax Assessment Act 1997 40-295(3)

Income Tax Assessment Act 1997 40-300

Income Tax Assessment Act 1997 Division 46

Income Tax Assessment Act 1997 Part 3-1

Income Tax Assessment Act 1997 102-25

Income Tax Assessment Act 1997 104-35(1)

Income Tax Assessment Act 1997 104-35(2)

Income Tax Assessment Act 1997 104-35(3)

Income Tax Assessment Act 1997 110-35

Income Tax Assessment Act 1997 116-20

Income Tax Assessment Act 1997 118-20

Income Tax Assessment Act 1997 118-20(1)

Income Tax Assessment Act 1997 995-1 and

Taxation Laws Amendment (Software Depreciation) Bill 1999

New Business Tax System (Capital Allowances) Bill 2001

Reasons for decision

All references are to the Income Tax Assessment Act 1997 (ITAA 1997) unless otherwise stated.

Question 1

Division 40 allows a deduction for the decline in value of a depreciating asset that is held for any time during a year of income.

Section 40-30 specifies what is and is not an asset for the purposes of Division 40. Section 40-30 relevantly states:

The terms 'intellectual property' and 'in-house software' are both defined in section 995-1.

Intellectual property

Section 995-1 defines 'intellectual property' as:

Section 10 of the Copyright Act 1968 defines a 'literary work' as including a computer program:

"literary work" includes:

Section 10 of the Copyright Act 1968 defines a 'computer program' as:

Section 13 of the Copyright Act 1968 provides that the owner of a copyright has the exclusive right to authorise a person to do an act that is the exclusive right of the owner of the copyright.

Section 31 of the Copyright Act 1968 provides that copyright in a literary or artistic work is, amongst other things, the exclusive right to reproduce it in a material form, to make an adaptation of the work and, in respect to a computer program, enter into a commercial rental arrangement in respect of it.

In-house software

Section 995-1 defines 'in-house software' as:

The Explanatory Memorandum (EM) that accompanied the New Business Tax System (Capital Allowances) Bill 2001 (NBTS CA Bill 2001) which introduced the current treatment of in-house software under Division 40 did not elaborate upon what was meant by the term 'computer software' in the definition of in-house software in section 995-1. However, at paragraph 1.18 of the EM it stated that the treatment of in-house software under Division 40 did not reflect an in-substance change to the way software was treated under the former Division 46.

Former Division 46 allowed 'software' that was acquired, developed or commissioned to be treated as plant and depreciated. The EM which accompanied the Taxation Laws Amendment (Software Depreciation) Bill 1999 which introduced former Division 46 described 'software' in paragraph 13 as being:

The Macquarie Dictionary contains the following definitions of relevance:

Are the ERP Customisations an intangible depreciating asset that is in-house software?

Project A resulted in the creation of the ERP Customisations and Other Materials. Copyright subsists in the ERP Customisations and in each item included in the Other Materials. Each copyright represents rights that Company A holds under the Copyright Act 1968. Each copyright will therefore satisfy the definition of intellectual property in section 995-1 and will therefore be capable of being recognised as an intangible depreciating asset for the purposes of Division 40 due to paragraph 40-30(2)(c).

Whether a number of assets which could each be viewed as a separate depreciating asset should be viewed as a composite item which is itself a depreciating asset is determined by subsection 40-30(4).

The EM which accompanied the NBTS CA Bill 2001 which introduced subsection 40-30(4) stated at paragraph 1.15:

ATO Interpretive Decision ATO ID 2011/2 Capital allowances: depreciating asset - segments of a fibre optic cable system (ATO ID 2011/2) considers paragraph 1.15 of the EM which accompanied the NBTS CA Bill 2001 and states:

The function test has been applied in Ready Mixed Concrete (Vic) Pty Ltd v. FC of T 69 ATC 4038; (1969) 1 ATR 123, FC of T v. Tully Co-operative Sugar Milling Assoc Ltd 83 ATC 4495; (1983) 14 ATR 495, Monier Colourtile Pty Ltd v. FC of T 84 ATC 4846; (1984) 15 ATR 1256, Case S51 85 ATC 380; 28 CTBR (NS) Case 57, and Case T33 86 ATC 293; 29 CTBR (NS) Case 35.

Taxation Ruling TR 94/11 Income tax: general investment allowance - what is a unit of property? (TR 94/11) is instructive as it outlines what is considered to be an appropriate function test in the context of identifying a separate unit of property for the purpose of the now inoperative general investment allowance. TR 94/11 outlines that the function test is a factual examination of the function that an item serves in the particular taxpayer's income producing activity.

TR 94/11 states at paragraph 3 that an item is generally identified as a single item if it has one or more of the following characteristics:

TR 94/11 goes on to state at paragraph 4:

The copyright in the ERP Customisations and the copyright in each of the items included in the Other Materials are each capable of being separately identified, being functionally complete in themselves and of separately performing a definable function. These factors would tend to indicate that each copyright is a separate depreciating asset for the purposes of Division 40. Nevertheless each copyright is an integral and interdependent part of the overall ability of Company B to use the computer software in its operations. If each copyright is considered in terms of the purpose and the use for which they were initially developed then they function as components of a single composite item under subsection 40-30(4).

The copyright which subsists in the ERP Customisations is not recognised as a separate depreciating asset for the purposes of Division 40 of the ITAA 1997 as it is one component of a composite item for the purposes of subsection 40-30(4) of the ITAA 1997. However, the composite item, which consists of the copyright which subsists in the ERP Customisations and in each of the items included in the Other Materials, is computer software which in the circumstances will meet the definition of in-house software in section 995-1 of the ITAA 1997 and will therefore be an intangible depreciating asset for the purposes of Division 40 of the ITAA 1997.

Question 2(a) and Question 2(b)

Subdivision 40-D provides for an amount to be either included in the assessable income of a taxpayer or deducted by a taxpayer when a balancing adjustment event occurs.

Section 40-285 states:

Subsection 40-295(1) states:

(a) Know how

Know-how is not considered to be either real or personal property. In Federal Commissioner of Taxation v United Aircraft Corporation (1943) 68 CLR 525 Latham CJ at page 534 stated:

Knowledge is valuable, but knowledge is neither real nor personal property.

Section 40-30 (reproduced above in question 1) specifies what assets can and cannot be depreciating assets for the purposes of Division 40. Section 40-30 does not allow knowledge or know-how itself to be recognised as an asset for the purposes of Division 40.

(b) ERP Customisations

As explained above in question 1, the copyright that subsists in the ERP Customisations satisfies the definition of intellectual property in section 995-1 and can be recognised as an intangible depreciating asset for the purposes of Division 40 due to paragraph 40-30(2)(c). However, the intangible depreciating asset is a component of a composite item for the purposes of subsection 40-30(4). The composite item is an in-house software depreciating asset for the purposes of Division 40.

Section 40-115 addresses the consequences of splitting a depreciating asset or giving up part of a depreciating asset.

Section 40-115 states:

Section 40-205 states:

The licences granted under the Licence Agreement will result in the copyright that subsists in the ERP Customisations and in each of the Other Materials being used other than mainly for performing the functions for which they were originally developed. The in-house software depreciating asset will be split into its constituent parts. The in-house software depreciating asset, which includes the copyright that subsists in the ERP Customisations and the copyright which subsists in each of the items included in the Other Materials, can be said to have commenced to be used as separate assets, being:

Subsection 40-115(1) will operate so that Company A will be treated as if it stopped holding the original asset, that was the in-house software depreciating asset, and started holding a new in-house software depreciating asset and the separate intellectual property depreciating assets into which it was split. The cost of the in-house software depreciating asset and the separate intellectual property depreciating assets that the taxpayer starts to hold after the original asset is split will be determined under section 40-205. Subsection 40-295(3) provides that no balancing adjustment event occurs for a depreciating asset merely because the asset is split into two or more depreciating assets. However, a balancing adjustment event may occur in relation to an asset that arises from the original asset that was split.

Under the Licence Agreement Company A will grant an interest to Company C in various items of intellectual property, including the copyright which subsists in the ERP Customisations. Subsection 40-115(2) will apply due to the operation of subsection 40-115(3) so that, just before the grant of the licence, Company A will be treated as having split the intellectual property depreciating asset that consists of the copyright that subsists in the ERP Customisations into the part that it stopped holding (ERP Customisations Part) and the rest of the original intellectual property depreciating asset (ERP Customisations). The cost of the ERP Customisations Part and the ERP Customisations will be determined under section 40-205.

On Company A stopping holding the ERP Customisations Part a balancing adjustment event will occur due to paragraph 40-295(1)(a). The adjustable value of the ERP Customisations Part will be determined under section 40-85. The termination value of the ERP Customisations Part will be determined under section 40-300. To the extent that the Licence Fee relates to the copyright that subsists in the ERP Customisations that amount will be the termination value of the ERP Customisations Part under section 40-300. The amount included under the balancing adjustment event will be determined under section 40-285 (being the difference between the termination value and the adjustable value).

Question 3

As explained above in Question 2, the licence granted under the Licence Agreement will result in the copyright that subsists in the ERP Customisations and in each of the Other Materials being used other than mainly for performing the functions for which they were originally developed. The in-house software depreciating asset will be split into its constituent parts.

Subsection 40-115(1) will operate so that Company A will be treated as if it stopped holding the in-house software depreciating asset and started holding an in-house software depreciating asset and the separate intellectual property intangible depreciating assets into which it was split. The cost of the in-house software depreciating asset and the separate intellectual property depreciating assets will be determined under section 40-205.

Section 40-205 states:

The cost as determined under section 40-205 will be used in calculating a deduction for an amount equal to the decline in value of the new in-house software depreciating asset under section 40-30. If the cost as determined under section 40-205 is the same as the adjustable value of the original in-house software depreciating asset before it was split, as calculated under section 40-85, then the same amount will be depreciable under Division 40.

Question 4

Subsection 6-5(1) states:

Further, subsection 6-10(1) states:

Your assessable income also includes some amounts that are not ordinary income.

None of the provisions listed in section 10-5 are relevant in the present circumstances. Therefore the Licence Fee received by Company B will not be assessable income under section 6-10. The Licence Fee will only be included in the assessable income of Company B if it is assessable income under section 6-5.

Section 6-5 provides that your assessable income includes income according to ordinary concepts which is called ordinary income. The classic definition of ordinary income in Australian law was given in Scott v Commissioner of Taxation (1935) 35 SR (NSW) 215 by Jordan CJ:

The leading case on ordinary income is Eisner v Macomber 252 US 189 (1919). It was said in that case that:

In GP International Pipecoaters Pty Ltd v Federal Commissioner of Taxation (1990) 170 CLR 124 the High Court of Australia held that whether a receipt is income or capital depends on its objective character in the hands of the recipient. It was further stated at page 138 that:

Receipts of a capital nature do not constitute income according to ordinary concepts, whether or not incurred in carrying on a business.

Is the Licence Fee received on capital or revenue account?

A threshold question is whether the Licence Fee is an amount received on capital or revenue account, as only an amount received on revenue account can be subject to section 6-5.

Under the Licence Agreement Company A will grant Company C an exclusive licence to the use the ERP Customisations in all jurisdictions other than Australia and a non-exclusive licence to the use ERP Customisations in Australia. The exclusive and non-exclusive licences obtained by Company C under the Licence Agreement permit Company C to perform acts and do things that would normally infringe upon the rights of Company A as the owner of various copyrights under the Copyright Act 1968.

The nature of a payment for a licence has been the subject of some judicial consideration in the United Kingdom and Australia. Lord Denning provided a good description of how amounts received for the granting of a licence are generally viewed in Murray (Inspector of Taxes) v Imperial Chemical Industries Ltd [1967] 2 ALL ER 980 (Imperial). Lord Denning in Imperial at 982-983 stated in the context of an assignment of patent rights:

The observations of Lord Denning in Murray were referred to in Kwikspan Purlin System Pty Ltd v Commissioner of Taxation (Cth) (1984) 71 FLR 154 (Kwikspan) by Campbell J at 159. In Kwikspan it was determined that certain payments for the grant of exclusive licences to use a patented invention in different parts of Australia were received on capital account and, as the company in question was not in the business of dealing in patents, were not on income account.

Under the Licence Agreement Company C will pay the Licence Fee in one single amount to Company A. Under the Licence Agreement Company C acknowledges that all intellectual property rights, including all copyright, is and shall remain the sole property of Company A. Under the Licence Agreement the licences are perpetual and will only be terminated on the insolvency of Company C under the Licence Agreement. The Licence Fee will be based upon a market value determination of an arm's length amount calculated by reference to the anticipated cost to replicate the Project A IP by Company C. Notably, the Licence Fee will not be calculated by reference to any use that is to be made by Company C of the Project A IP.

Company A is the vehicle for all operations in Australia of a global business. Company A is not in the business of dealing in copyrights.

On the basis of the above the Commissioner is of the view that the Licence Fee paid by Company C to Company A under the Licence Agreement for the exclusive and non-exclusive licences is received on capital account and will not be assessable as ordinary income under section 6-5.

Question 5

The Licence Fee paid by Company C to Company A is received on capital account and will therefore not be assessable as ordinary income under section 6-5. As the Licence Fee is not assessable as ordinary income under section 6-5 it may be assessable under section 15-20.

Section 15-20 states:

The High Court of Australia considered the essential characteristics of a royalty in Stanton v Federal Commissioner of Taxation (1995) 92 CLR 630 (Stanton). Dixon CJ, Williams, Webb, Fullagar and Kitto JJ stated in Stanton at 641:

The Commissioner summarises the key characteristics of a common law royalty in Taxation Ruling IT 2660 Income tax: Definition of royalties (IT 2660).

The Commissioner in IT 2660 at paragraph 10:

The exclusive and non-exclusive licences obtained by Company C under the Licence Agreement permit Company C to perform acts and do things that would normally infringe upon the rights of Company A as the owner of various copyrights under the Copyright Act 1968. The licences are perpetual and will only be terminated in the event that Company C becomes insolvent and in accordance with the Licence Agreement. The timing of the Licence Fee and the amount of the Licence Fee is not determined by the extent of exploitation of the Project A IP.

On this basis the Licence Fee will not be a royalty and accordingly cannot be assessable under section 15-20.

Question 6

Part 3-1 governs capital gains and capital losses.

Section 102-25 states that if more than one CGT event happens then you choose the CGT event that is most specific to your situation; however, CGT event D1 is an exception to this rule.

Subsection 104-35(1) states that CGT event D1 happens if you create a contractual right or other legal or equitable right in another entity. It is not necessary that the newly created asset be derived out of an existing asset.

A 'right' is a form of incorporeal property which consists of a legal entitlement to property that which has no physical existence. Examples of incorporeal property are rights under contracts, a patent and goodwill.

CGT event D1 happens whenever rights are created even if they are part of a larger agreement. In most circumstances the bundle of contractual rights would be considered to be a single right. However, each right arising from a contract may be considered separately and the capital gain or loss may be apportioned.

Subsection 104-35(2) states that the time of CGT event D1 is when you enter into the contract or create the other right.

Subsection 104-35(3) states that you make a capital gain from CGT event D1 if the capital proceeds from creating the right are more than the incidental costs you incurred in relation to the event and that you make a capital loss if the capital proceeds are less.

Section 110-35 states how to work out the incidental costs in relation to a CGT event.

Section 116-20 states that the capital proceeds from a CGT event are generally the money you received or are entitled to receive in respect of the event happening and the market value of any property you have received or are entitled to receive in respect of the event happening.

Subsection 118-20(1) relevantly states that the capital gain you make from a CGT event is reduced if, because of the event, an amount is included in your assessable income or exempt income by a provision outside Part 3-1.

CGT event D1 will occur when Company A grants the Licence to Company C under the terms of the Licence Agreement.

The capital gain arising from CGT event D1 occurring will be reduced due to the application of section 118-20 to the extent that the Licence Fee is assessable income under the provisions of Subdivision 40-D.


Copyright notice

© Australian Taxation Office for the Commonwealth of Australia

You are free to copy, adapt, modify, transmit and distribute material on this website as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).