Private ruling: Contractual payments
Date of advice: 22 July 2025
Published: 27 October 2025
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will any amounts from the Agreement form part of the Applicant's ordinary income on the basis that it is attributable to their fame as referred to in TD 2023/4? | A1: No. | Q2: If the answer to Question 1 is yes, will any revenue be attributed to the Applicant on the basis the Double Tax Agreement would override TD 2023/4 and therefore, there would be no attribution to the Applicant? | A2: Not applicable. | Q3: Alternatively, will the Applicant be entitled to a proportional tax credit under the Australian foreign tax credit provisions of the overseas tax paid? | A3: Not applicable. | Q4: Alternatively, is the payment to the Applicant considered a dividend? | A4: Not applicable.

Relevant facts and circumstances: The Applicant is an Australian entertainer. Near the beginning of their career, the Applicant established Company ABC (ABC) to manage their business and investment interests. The shares in ABC are owned beneficially by the Applicant and they have all rights and entitlements to dividends from ABC. ABC is registered globally as the legal owner of all Intellectual Property (IP) regarding the Applicant. Company DEF (DEF) is an overseas entity. It has a licence to use ABC's IP in certain territories. On X XXX 20XX, DEF entered into an agreement with Company XYZ (XYZ) which will herein be referred to as the Agreement. The Agreement: • Requires DEF to procure the Applicant to: ­ Attend a X hour campaign shoot during which XYZ would capture content, film and/or photographs ­ Complete social media deliverables in the prescribed manner ­ Provide a minimum of X press quote in the prescribed manner. • Requires XYZ to pay DEF the stipulated fees. • Requires XYZ to book and pay for prescribed individuals to work on the Campaign Shoot. • Requires XYZ to arrange and pay the costs relating to travel for the Campaign Shoot. • Defines: ­ 'Assets' contractual details of taxpayer supplied. ­ 'Deliverables' contractual details of taxpayer supplied ­ 'Talent's Likeness Rights' contractual details of taxpayer supplied ­ 'IP Rights' contractual details of taxpayer supplied ­ 'Company Materials' contractual details of taxpayer supplied • In accordance with the Agreement: ­ DEF is required to, and is required to procure the Applicant to, transfer and assign all existing and future IP in the Assets (excluding the Talent's Likeness Rights, Social Media Deliverables and solo photographs (referred to as 'Solo Stills')) to XYZ ­ DEF is required to, and is required to procure the Applicant to, grant XYZ an irrevocable, worldwide, exclusive royalty-free licence to use the Solo Stills (in accordance with the requirements of the Agreement) ­ DEF is required to, and is required to procure the Applicant to, grant XYZ, and other particular related companies, an irrevocable, worldwide, exclusive royalty-free licence to use the Deliverables and Talent's Likeness Rights in the Assets in accordance with the Agreement ­ All IP rights in the Assets (excluding the Talent's Likeness Rights, Social Media Deliverables and Solo Stills) will be the exclusive property of XYZ ­ All IP rights in the Social Media Deliverables shall vest in DEF ­ DEF acknowledges, and is required to procure the Applicant to acknowledge, that ownership of the Company Materials and IP rights in the Company Materials are vested in XYZ ­ DEF must waive, and is required to procure the Applicant to waive, any moral rights and performers' rights, and any similar rights arising under the laws of any jurisdiction in the Assets ­ DEF acknowledges, and is required to procure the Applicant to acknowledge, that XYZ, and other particular related companies, may continue to use the Assets for other non-advertising purposes outside of the limited use period.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 6-5 | Taxation Administration Act 1953 section 359-40 of Schedule 1

Reasons for decision: Summary: Under section 359-40 of Schedule 1 to the Taxation Administration Act 1953 (TAA) if the making of a private ruling would require the determining of a value, the Commissioner may refer the valuation to a valuer or refer a valuation provided by the applicant to a valuer for review. The Commissioner is not obliged to obtain a valuation from a valuer. In this instance, the provided valuation was referred to internal ATO valuers for review. That review has been completed and concluded that no amount under the Agreement should be attributed to the Applicant's fame, and consequently no amount should be included in the Applicant's ordinary income on that basis. The Commissioner has ruled on that basis. | Detailed Reasoning - Questions 2, 3 and 4: It was not necessary to consider these questions as a result of the answer to question 1.