CGW Tax Lawyers have a strong record in obtaining favourable tax rulings for clients and referring firms in a wide range of areas.
Contrary to what many advisers think, clients who apply for private tax rulings can actually reduce their risk profile with the ATO.
In our experience, there are often circumstances where applying for a private tax ruling from the ATO is the most sensible and commercial way of managing tax risk. Similarly, a private tax ruling or SMSF specific advice can ensure we have dealt with potential tax or compliance risks for SMSFs.
The cost of obtaining a private ruling is often a very cost effective ‘insurance policy’ to protect against the risk of penalties and interest assessments.
Applying for a GST private ruling can be particularly useful where there is any doubt on the correct application of the law, as the GST may be able to be dealt with contractually between the parties. This can be done by having an effective GST clause. GST private rulings provide certainty for all taxpayers in the supply chain.
For example, the cost involved in applying for a private GST ruling to confirm that a sale of a property or business constitutes the supply of a GST-free supply of a going concern is often commercially sensible, as it totally avoids any risk of penalties or interest as a result of a subsequent ATO audit.