Edited version of private ruling

Authorisation Number: 1011862112560

This edited version of your ruling will be published in the public Register of private binding rulings after 28 days from the issue date of the ruling. The attached private rulings fact sheet has more information.

Please check this edited version to be sure that there are no details remaining that you think may allow you to be identified. Contact us at the address given in the fact sheet if you have any concerns.

Ruling

Subject: GST - Tax Invoices and bundled services

Issue1:

Will the sample tax invoices issued by A in relation to the supply of bundled services, comprising two or more components (one or more of which is supplied on a progressive or periodic basis), satisfy the information requirements for a tax invoice for the purposes of subsection 29-70(1) of the A New Tax System (Goods and Service Tax) Act 1999 (GST Act)?

Answer:

No, the sample tax invoices issued by A in relation to the supply of the bundled services, comprising two or more components (one or more of which is supplied on a progressive or periodic basis), will not satisfy the information requirements for a tax invoice for the purposes of subsection 29-70(1) of the GST Act. The sample tax invoices issued will not allow each of the supplier's identity and Australian Business Number (ABN) and the amount of GST payable for each supply to which the documents relate to be clearly ascertained.

Issue 2

Will the apportionment methodology for the calculation of GST in relation to the supply of bundled services made up of two or more components (one or more of which is supplied on a progressive or periodic basis within the meaning of Division 156 of the GST Act) be appropriate for the purpose of subdivision 9-C of the GST Act?

Answer:

Yes, the apportionment methodology for the calculation of GST in relation to the supply of bundled services made up of two or more components (one or more of which is supplied on a progressive or periodic basis within the meaning of Division 156 of the GST Act) will be appropriate for the purpose of subdivision 9-C of the GST Act.

Relevant facts:

B is registered for goods and services tax (GST) accounting for GST on a basis other than cash (accrual) in one month tax periods.

A, a wholly owned subsidiary of B, is registered for GST accounting for GST on an accrual basis in one month tax periods. Neither A nor B is a member of a GST group.

A offers for sale, services, to customers. These services can be purchased as stand alone services or combined bundles as follows:

· bundled services (a) comprising components C and, in some instances component D; and

· bundled services (b) comprising component C, component E and, in some instances, component D.

The bundled services are provided over a 12 month period and are recurring or rolling in nature. That is, unless the customer specifically requests termination of the bundle at the end of the 12 month term, the contract rolls on for a further term of 12 months.

The Suppliers

The components in relation to the supply of the bundled services (a) will be made by B only, through A as its agent.

The components in relation to the supply of bundled services (b) will be made by both B and A.

A supplies component E to customers in its own right as an independent contractor to B and supplies component C and component D in its capacity as B's agent.

Price of bundled services

Each of the bundled services comprising a bundle will be sold to customers for a single bundle price. The price for the bundle will be lower than the sum of the advertised price for each of the individual components in circumstances where the component is purchased separately by the customer. That is, the single bundle price reflects a discount referable to each component.

The overall discount rate with respect to a given bundle will be the same for each customer that purchases that type of bundled service.

The overall discount rate across the different bundles will vary from one bundle to another. Customers who buy a particular bundle will however receive the same overall discount rate. Within a bundle the rate of the discount for each component will be the same.

The single bundle price is payable on an equally-divided, monthly basis, inclusive of GST. The amount charged to a customer for GST will be the same each month. A and B will only seek to charge the customer equal instalments across the life of the bundled service.

Although A and B may inform customers of the overall monetary 'saving' resulting from purchasing the bundled services, compared with purchasing each component in the bundle individually, as a commercial matter, A and B do not intend to provide a detailed dissection of the discount for each component.

Billing

The customer will pay the same amount of GST each month for the life of the supply of the bundled services. This proposed billing will not affect the remission of GST to the ATO by A and B. The remission of GST will be based on the character of the component of the bundled service, the period over which the components are provided, and when the invoices relating to particular components are issued.

After the customer agrees to purchase the bundled service, the customer will receive a purchase order confirmation and a letter, issued by A in relation to the bundled services, itemising all of the components of the bundled services, and containing the relevant terms and conditions. The Purchase Orders will be in the form of the two sample purchase orders provided and will include the following information:

· The first sample purchase order comprises a number of pages all with the heading 'Order No' setting out the customer's details, the purchased services details, the Payment Terms with the words 'Recurring Monthly Paid Monthly' showing the 'Billing Details' for the particular customer, the Rate (ex GST), the Rate (GST) and the Rate (inc GST), an Order Summary and a Charge Summary detailing the customer's acceptance to pay for the services in the order, subject to among other things, the Product Contract Terms.

· The second sample purchase order comprises a number of pages with the heading 'Order No' setting out the customer's details, the purchased services details, the Payment Terms with the words 'Recurring Monthly Paid Monthly' showing the 'Billing Details' for the particular customer, the Rate (ex GST), the Rate (GST) and the Rate (inc GST), an Order Summary and a Charge Summary detailing the customer's acceptance to pay for the services in the order, subject to among other things, the Product Contract Terms.

Each page of the sample purchase order documents provided includes a foot note which identifies B and A.

The 'Service Contract Terms' (Contract Terms) referred to in the sample purchase order documents were also provided. Part C clause XX of that document relevantly defines each of the components as well as other terms such as the 12 month roll over.

Periodic supply and 'one off' supply

A and B have characterised component C and D comprising the bundled service as progressive and periodic supplies that come within the operation and effect of Division 156 of the GST Act. Component E is not treated as coming within the operation and effect of Division 156 of the GST Act.

The characterisation of the various components into those to which Division 156 of the GST Act applies and those to which Division 156 of the GST Act do not apply, follow the advice provided in a private ruling issued to B in which it was explained that component E cannot be attributed as a periodic and progressive supply and that the bundled service is comprised of multiple supplies.

GST payable by B and A

A advises it is liable for the GST payable in relation to the supply of component E and reports the GST in relation to the taxable supply it makes in its Activity Statement (AS) for the relevant tax period. A will attribute the GST payable on the total consideration referable to component E paid 'up front', to the tax period when the customer is first issued with an invoice for the bundled service in accordance with the operation and effect of section 29-5 of the GST Act. This will be either at the same time as, or before, the provision of component E included in the bundled service to the customer.

B advises it is liable for the GST payable in relation to the supplies of components C and D included in the bundled service made on its behalf by A and will report the GST in its AS for the relevant tax period. B will attribute and remit the GST payable, referable to components C and D, progressively as the customer is invoiced each month in accordance with the operation and effect of Division 156 of the GST Act.

The GST referable to each of components E, C, and D comprising the bundled services is to be calculated on a proportional value basis that is, based upon the discounted value of each of the components that comprise the bundled services.

In its correspondence, B and A set out a methodology they propose to calculate the GST in relation to the supply of the bundled services made up of two or more components (one or more of which is supplied on a progressive or periodic basis within the meaning of Division 156 of the GST Act).

A and B submit that the proposed methodology used in the worked example they provided is an appropriate methodology to use to calculate the correct amount of the GST for each component (E,C,D) comprising the bundled service on the basis that it is reasonable.

Invoices issued

As soon as the bundled services are provided to the customer, a tax invoice will be issued to the customer by A. The first tax invoice is rendered in the second month after the commencement of the contract. The tax invoice will not specify each separate component that is being provided as part of the bundled services but will indicate the monthly charge payable by the customer.

The customer will be issued with one invoice per month for the 12 month term unless the customer has requested to pay a single upfront invoice for the total purchase price of their bundle.

Although the bundles may be provided over a period of 12 months, the total annual cost is not shown on the relevant documents provided to the customers, but are verbally advised to the customer during the sales process. The rates set out on the documentation are monthly rates.

Two sample tax invoices were provided:

The first sample tax invoice relates to bundled services (b) (comprised components E, D and C) and includes the following information:

· A's name and ABN and the name of the recipient and its address

· the words 'Tax Invoice' and 'Invoice Date'

· nominates the invoice number and account number

· under the heading 'Summary' the 'Amount to Pay' is shown as comprised of the sum the 'GST in this invoice' plus 'Charges Excl GST'

· in the column with the heading 'Description' are the words describing the bundle

· under the column with the heading 'Charges this invoice' appears an amount

· under the column with the heading 'GST this invoice' appears an amount

· under the column with the heading 'Total Incl GST' appears an amount. These amounts are repeated on the line below headed 'Totals', and

· attached to the bottom of the form is a 'Payment Slip' nominating an amount to pay and a payment due date.

The second page (page 2 of 2) provided with the sample tax invoice sets out a panel of information and notes.

On the bottom half of the second page above the heading 'How to Pay' is a reference to A having responsibility for the production of component E and related products on behalf of B and for products on behalf of two other entities.

The second sample tax invoice relates to bundled service (a) (comprised of components C and D) and includes:

· A's name and ABN and the name of the recipient and its address

· the words 'Tax Invoice' and 'Invoice Date'

· nominates the invoice number and account number

· under the heading 'Summary' the 'Amount to Pay' is shown as comprised of the sum the 'GST in this invoice' plus 'Charges Excl GST'

· in the column with the heading 'Description' is a description of the bundle

· under the column heading 'Charges this invoice' appears an amount

· under the column heading 'GST this invoice' appears an amount

· under the column heading 'Total Incl GST' appears an amount. These amounts are repeated on the row below headed 'Totals', and

· attached to the bottom of the document is a 'Payment Slip' nominating an amount to pay and a payment due date.

The second page (page 2 of 2) provided with the tax invoice document includes a table and notes:

On the bottom of the second page above the heading 'How to Pay' is a reference to A having responsibility for the production of component E and related products on behalf of B and for other services on behalf of two other entities.

Claiming of input tax credits by the customer

A and B explain that it is their understanding that the customer can claim input tax credits in relation to the supply of the bundled services based on the GST charged in the tax invoice issued. This will be the case notwithstanding that A will have remitted GST to the ATO based on the relevant proportion of the bundled service referrable to component E whilst the customer is only able to claim an input tax credit on the lower, monthly fee charged by A to the customer. In this way, they argue there is no 'shortfall' to the ATO with respect to GST paid by B and A and input tax credits claimed by the customer, with respect to the bundled service.

Reasons for Decisions

Legislation

Section 7-1 of the GST Act provides that GST is payable on taxable supplies.

A supply will be a taxable supply if pursuant to section 9-5 of the GST Act:

· you make the supply for consideration

· the supply is made in the course or furtherance of an enterprise that you carry on

· the supply is connected with Australia, and

· you are registered, or required to be registered.

However, the supply is not a taxable supply to the extent that it is GST-free or input taxed.

Section 9-10 of the GST Act defines a 'supply' as 'any form of supply whatsoever' and includes amongst other things:

· a supply of services

· an entry into or release from an obligation to do anything or to refrain from an act or to tolerate an act or situation, or

· any combination of any two or more of the matters referred to above.

The definition of 'consideration' includes any payment, act or forbearance which is 'in connection with a supply of anything' or 'in response to or for the inducement of a supply of anything' (section 9-15 of the GST Act).

Attribution of GST

Division 29 of the GST Act establishes the basic rules for the attribution of GST. Where an entity accounts for GST on a basis other than cash, as is the case for both B and A, subsection 29-5(1) of the GST Act provides that all the GST payable on a taxable supply is attributable to the earlier of the tax periods when:

· any of the consideration is received for the supply, or

· an invoice relating to the supply is issued.

Attribution of input tax credits

Where an entity accounts for GST on a basis other than cash, the GST Act provides that input tax credits are attributable to the first tax period in which either any consideration is provided by the recipient, or an invoice is issued (subsection 29-10(1) of the GST Act). If the taxpayer accounts on a cash basis, input tax credits will only be attributable when and to the extent that the recipient provides consideration.

However, input tax credits cannot be attributed to a tax period unless a relevant tax invoice is held by the taxpayer in that tax period. Such input tax credits will instead be attributable to the first tax period in which the taxpayer holds a tax invoice (subsection 29-10(3) of the GST Act).

Supplies through an agent

Section 153-15 of the GST Act provides that if you make a taxable supply through an agent, an obligation to issue a tax invoice relating to the supply:

· arises whether the recipient makes a request for a tax invoice to you or the agent, and

· is complied with if either you or the agent gives the recipient a tax invoice within 28 days after the request.

However, you and the agent must not both issue separate tax invoices relating to the supply.

Progressive and periodic supplies

Division 156 of the GST Act alters the application of the basic attribution rules in circumstances where the supply or acquisition and the consideration occur periodically or progressively. It does this by treating each periodic component of the supply or acquisition as a separate supply or acquisition.

Under subsection 156-5(1) of the GST Act, the GST payable by an entity on a taxable supply that is made:

· for a period or on a progressive basis, and

· for consideration that is to be provided on a progressive or periodic basis

is attributable, in accordance with section 29-5 of the GST Act, as if each progressive or periodic component of the supply were a separate supply. The input tax credits to which an entity is entitled for a creditable acquisition that is made for a period or on a progressive basis and for consideration that is to be provided on a progressive or periodic basis is attributable, in accordance with section 29-10 of the GST Act, as if each progressive or periodic component of the acquisition were a separate acquisition.

Tax Invoices requirements

Tax invoices are key integrity measures under the GST system. It is therefore important that a tax invoice contain the required information and is issued in a timely manner (paragraph 11 of ATO Practice Statement Law Administration PS LA 2004/11).

Section 29-70 of the GST Act and Regulations 29-70.01 and 29.70.02 of the A New Tax System (Goods and Services Tax) Regulations 1999 (GST Regulations) had set out the requirements that a document had to satisfy in order for it to be a tax invoice. Schedule 3 to the Tax Laws Amendment (2010 GST Administration Measures No. 2) Bill 2010 (the Bill) amended the GST Act to simplify the requirements for a document to be a tax invoice.

As a result of these amendments, a tax invoice is a document that complies with the following requirements:

· It is issued by the supplier of the supply or supplies to which the document relates (paragraph 29-70(1)(a) of the GST Act).

· It is in the approved form (paragraph 29-70(1)(b) of the GST Act).

· It contains enough information to enable the following to be clearly ascertained:

· the identity and ABN of the supplier (subparagraph 29-70(1)(c)(i) of the GST Act)

· the identity or ABN of the recipient if the total price of the supply or supplies is at least $1,000 or such higher amount as the regulations specify (subparagraph 29-70(1)(c)(ii) of the GST Act

· what is supplied, including the quantity (if applicable) and the price of what is supplied (subparagraph 29-70(1)(c)(iii) of the GST Act)

· the extent to which each supply included on the document is a taxable supply (subparagraph 29-70(1)(c)(iv) of the GST Act)

· the date the document is issued (subparagraph 29-70(1)(c)(v) of the GST Act)

· the amount of GST (if any) payable in relation to each supply to which the document relates (subparagraph 29-70(1)(c)(vi) of the GST Act)

· if the document was issued by the recipient and GST is payable in relation to any supply - that the GST is payable by the supplier, and

· such other matters as the regulations specify (subparagraph 29-70(1)(c)(viii) of the GST Act

· It can be clearly ascertained from the document that the document was intended to be a tax invoice (paragraph 29-70(1)(d) of the GST Act).

One supply or more

On the facts provided, A offers bundles of services comprising a number of components for a single price which is less than the aggregate of the price of each of the components sold separately. Each component comprising the bundle (components C, D or E) can be purchased as a stand alone product for an advertised price.

One point of contention relevant to tax invoices issued in relation to bundles of services is whether the bundle of services constitutes one supply or several supplies of each of the components comprising the bundle. The information requirements for a tax invoice will differ depending on whether the bundle of services can properly be regarded as constituting one supply or several supplies of each component in the bundle. The Commissioner concluded in the private ruling issued to B that the bundle of services amounts to more than one supply.

The Commissioner expressed the view that each component of the bundle of services consisting of two parts, only one of which is supplied on a progressive or periodic supply as being physically and economically dissociable. Each component was found to be a supply in its own right and each component must be treated according to whether it is a supply made for a period or on a progressive basis for the purposes of Division 156 of the GST Act.

There is no issue in the present circumstances that the supply of each component of the bundle satisfies the requirements for a taxable supply under section 9-5 of the GST Act on which GST is payable irrespective of whether the component is sold as a stand alone service or is bundled with other components to be sold together in a bundle for a discounted price.

The issue, therefore, that arises is whether the sample tax invoices satisfy the information requirements for a tax invoice in subsection 29-70(1) of the GST Act.

The Commissioner has expressed his preliminary view about the way the law applies in Draft Goods and Services Tax Ruling GSTR 2011/D1: tax invoices. This Draft is not a public ruling or advice for the purposes of section 105-60 of Schedule 1 to the Taxation Administration Act 1953 (TAA).

Paragraph 62 of GSTR 2011/D1 explains that paragraph 29-70(1)(c) of the GST Act requires that particular information is able to be clearly ascertained from the document.

GSTR 2011/D1 states at paragraphs 68, 71 and 72:

Identity of the supplier or recipient

68. The term 'identity' is not defined in the GST Act and therefore takes its ordinary meaning. To satisfy this requirement the tax invoice would need to include enough information to establish the identity of the supplier, and the recipient if applicable….

What is supplied

71. A tax invoice must include enough information to determine what is supplied. This requires a description of each thing supplied. This will help to establish whether it is a creditable acquisition for the recipient….

The price of what is supplied

72. A tax invoice must contain enough information to enable the price of what is supplied to be clearly ascertained….

Relevant to the present case is paragraph 76 of GSTR 2011/D1 that states:

76. If a tax invoice relates to a number of separate supplies made during a time period, it must include enough information to ascertain the price of each taxable supply (subparagraph 29-70(1)(c)(iii) of the GST Act). For example, a monthly statement showing a number of taxable supplies made to a customer during the month must show enough information in the tax invoice to be able to determine the price for each supply.

On the facts provided, the sample tax invoices issued by A to customers do not provide information that allows the following to be clearly ascertained:

· the identity and ABN of the supplier and/or

· the price and amount of GST payable in relation to each supply to which the document relates.

Identity and ABN of the supplier

A and B argue that subparagraph 29-70(1)(c)(i) of the GST Act is satisfied on the basis that the ABN and identity of A and B are on the sample tax invoices and those documents state that A has responsibility for production of component E and related services on behalf of B. There is no issue that the second page accompanying the sample tax invoice refers to B and its ABN. However, that page includes words to the effect that 'details' provided on that page do not form part of the tax invoice. If, notwithstanding those words, the legal result is that the information on the second page does form part of the tax invoice, that page, nevertheless may not contain enough information to enable the identity and ABN of the supplier of any particular supply to be clearly ascertained.

This is because it cannot be clearly ascertained which of the three entities (B or the other two entities) referred to on the second page, A is said to be responsible for producing related services on behalf of. Nor is there information to clearly ascertain the nature of the services (i.e. what is supplied) or which entity is making that supply. Accordingly, we do not accept the submission that the requirement of subparagraph 29-70(1)(c)(i) of the GST Act is satisfied on the basis that both the ABN and identity of A and B are on the sample tax invoices.

The term 'supplier' is not defined in the GST Act. However, whenever the term is used in the GST Act it refers to the entity that makes a supply or is capable of making a supply (paragraph 52 of Goods and Services Tax Ruling GSTR 2006/9). Subdivision 153-A of the GST Act has special rules about tax invoices and agents. An entity, therefore, makes a supply or acquisition if their agent makes it on their behalf. It is not necessary that an agent is registered or required to be registered for GST. Accordingly, if a principal makes a taxable supply through an agent, the agent can issue a tax invoice for the principal (subsection 153-15 of the GST Act). In such circumstances, it is the principal's identity and ABN that should be clearly ascertained from the tax invoice. However, the Commissioner has expressed the view at paragraph 65 of Goods and Services Tax Ruling GSTR 2000/37 (GSTR 2000/37) that where an agent issues a tax invoice, that document is a tax invoice and it meets the requirements of subsection 29-70(1) of the GST Act if it sets out:

· the principal's name and ABN without the agent's name and ABN as the supplier and issuer of the tax invoice or

· the agent's name and ABN as the supplier and issuer, instead of the principal's name and ABN as the supplier.

This is the case unless B and A have entered into an arrangement to which Subdivision 153-B of the GST Act applies. In such circumstances, A would be in the position where it could issue to third parties, in its own name, all the tax invoices and adjustment notes relating to the supplies which are the subject of the arrangement (paragraph 153-50(1)(d) of the GST Act). If that is the case, then the requirement in subparagraph 29-70(1)(c)(i) of the GST Act that the supplier's identity and ABN is clearly ascertainable would be satisfied where A sets out its name and ABN on the tax invoice. B and A have made no submissions in relation to the nature of their relationship other than to advise that A is B's agent in relation to the supply of components C and D.

Price and GST payable in relation to each supply

Another and more fundamental issue is the requirement in subparagraph 29-70(1)(c)(vi) of the GST Act. If it is accepted that each component comprising the bundled services to which the sample tax invoices relate constitute separate identifiable and discrete supplies, then the requirement under subparagraph 29-70(1)(c)(vi) of the GST Act will not be satisfied. The sample tax invoices provided contain information in relation to the price and amount of GST for the supplies aggregated together. There is no breakdown of the price or amount of GST payable for each separate supply constituted by each of the components comprising the bundled services. It follows that the sample tax invoices would not contain enough information to enable the amount of GST payable in relation to each supply to which the document relates, to be clearly ascertainable.

Use of other documents by the recipients

Where a recipient receives a document that is intended to be a tax invoice but it does not contain all of the required information, the document may be treated as a tax invoice by the recipient if the missing information is able to be ascertained from one or more other documents issued by the supplier (subsection 29-70(1A) of the GST Act).

A and B have provided a number of documents other than the sample tax invoices including sample letters, sample purchase orders and service contract terms which are issued to the customer.

The sample letter and the sample purchase order each contain a foot note stating that A is responsible for the conduct of certain activities relating to component E and related products and services on behalf of B. That information, it could be argued, would enable the supplier's identity and the supplier's ABN to be clearly ascertained by the customer.

However, none of the documents additional to the sample tax invoice to be issued to the customer contain enough information to clearly ascertain the amount of GST payable in relation to each supply to which the document relates. This is the case notwithstanding that the components comprising the bundled services have been itemised and described in the sample purchase orders. On the facts provided, the total annual cost is not shown on the relevant documents provided to the customers but are verbally advised to the customer during the sales process. Further, A and B do not intend to provide a detailed dissection of the discount for each component.

It follows that the recipient will be unable to rely on subsection 29-70(1A) of the GST Act to treat the sample tax invoices as a tax invoice for the purposes of the GST Act as neither the sample tax invoices nor other documents issued by A will have enough information to clearly ascertain the amount of GST (if any) payable in relation to each supply to which the document relates (in this case each component).

A and B argue that the intention behind the amendments to section 29-70 of the GST Act was to simplify the administration of GST and to make it easier for taxpayers to comply with the law. Therefore, the amended provisions should not be interpreted in a manner that would make complying with the relevant requirements more onerous and difficult compared to the previous version of the provisions.

The Explanatory Memorandum to the Tax Laws Amendment (2010 GST Administration Measures No 2) Bill 2010 (EM) explains:

3.19 Consistent with the flexible approach underlying these changes, the amendments require key information to be able to be clearly ascertained from the document. This means that, provided the information can be found in the document, it does not matter that it is not specifically stated or in a particular format…

3.20 However, it is not enough that the required information can be found in the document. The required information must be clear in the document. Information is also not able to be clearly ascertained from a document if the information can only be determined by reference to some outside source.

In relation to the use of other documents by recipients the EM states:

3.33 These amendments address concerns expressed that the tax invoice requirements often result in a recipient being disadvantaged by their supplier's error. This concern is addressed by allowing recipients to claim input tax credits if the recipient has a document intended to be a tax invoice and the missing information can be clearly ascertained from other documents provided by the supplier.

3.35 Although the document is treated as a tax invoice for the purposes of the recipient it does not satisfy the obligation for the supplier to provide a tax invoice. Thus, a recipient may still request the supplier to supply a tax invoice that meets the tax invoice requirements.

3.36 This outcome ensures that the more flexible tax invoice rules the amendments introduced do not inadvertently result in the supplier becoming less diligent in providing the necessary tax invoice information in one document. Where this occurs on a wide scale then it would result in higher compliance costs being passed onto recipients that would need to devote more resources to identify multiple documents to obtain the necessary tax invoice information.

Accordingly, the sample tax invoices issued by A in relation to the supply of the bundled services, comprising two or more components (one or more of which is supplied on a progressive or periodic basis), will not satisfy the information requirements for a tax invoice for the purposes of subsection 29-70(1) of the GST Act.

Apportionment Methodology

B and A requested that the Commissioner confirm that the apportionment methodology for the calculation of GST, in relation to the supply of the bundled or bundled services made up of two or more components (one or more of which is supplied on a progressive or periodic basis within the meaning of Division 156 of the GST Act), is reasonable.

Having had regard to the worked example provided which indicates that the discount B and A propose at any given time, is applied uniformly across all the components of the bundle by reference to the market advertised price of each component if sold separately, it would appear that the 'proposed methodology' is reasonable.

We note the statement that different apportionment methodology could be substituted. The ATO's comments in relation to the reasonableness of the proposed methodology is limited to the methodology described in the submissions made and does not extend to any other methodology that could be substituted.