Class Ruling CR 2001/1

What this ruling is about: 1. This Ruling outlines the purpose, nature and role of class rulings. A class ruling is a binding public ruling made under Division 358 of Schedule 1 to the Taxation Administration Act 1953 in relation to certain provisions, such as income tax law. 1A. This Ruling provides an overview of class rulings and includes information about: 1B. All further legislative references are to Schedule 1 of the Taxation Administration Act 1953. 2. [Omitted.] 3. This Ruling applies from 28 February 2001. 4. [Omitted.] 5. [Omitted.] Overview of class rulings 6. A class ruling expresses a view on how a certain provision applies to a specific class of entities in relation to a particular scheme. A class ruling can avoid the need for individual entities to seek their own private ruling. 7. Being a type of public ruling [1] , the Commissioner derives the power to issue class rulings under Division 358. The Commissioner has an unfettered discretion as to whether or not to issue a class ruling, and this applies whether a class ruling has been requested or not. Binding nature of class rulings 7A. As a public ruling, class rulings are binding on the Commissioner to the extent provided by Subdivision 357-B. [1A]

Class of entities or scheme: 10. A class ruling sets out the Commissioner's opinion as to the way in which a 'relevant provision' applies to a class of entities in relation to a scheme (subsection 358-5(1)). 11. Who a class ruling applies to, that is, the 'class of entities', is detailed in each class ruling. These entities can rely on the statements contained in the ruling. | Relevant provisions: 12. The Commissioner can issue rulings only on relevant provisions. Relevant provisions are provisions of Acts and regulations administered by the Commissioner that are about any of the matters listed in section 357-55. 13. A class ruling on how a relevant provision applies may be a ruling on the way in which a discretion of the Commissioner under that law would be exercised. | Scheme: 14. A class ruling describes the relevant details of a particular scheme. The following are examples of situations where such a ruling may be given: 15. [Omitted.] 15A. Individual entities who seek to rely on the class ruling may wish to seek assurances from the entity implementing the scheme that it has been carried out as described in the class ruling.

Ruling: 1. This Ruling outlines the purpose, nature and role of class rulings. A class ruling is a binding public ruling made under Division 358 of Schedule 1 to the Taxation Administration Act 1953 in relation to certain provisions, such as income tax law. 1A. This Ruling provides an overview of class rulings and includes information about: 1B. All further legislative references are to Schedule 1 of the Taxation Administration Act 1953. 2. [Omitted.] 3. This Ruling applies from 28 February 2001. 4. [Omitted.] 5. [Omitted.] | Overview of class rulings: 6. A class ruling expresses a view on how a certain provision applies to a specific class of entities in relation to a particular scheme. A class ruling can avoid the need for individual entities to seek their own private ruling. 7. Being a type of public ruling [1] , the Commissioner derives the power to issue class rulings under Division 358. The Commissioner has an unfettered discretion as to whether or not to issue a class ruling, and this applies whether a class ruling has been requested or not. | Binding nature of class rulings: 7A. As a public ruling, class rulings are binding on the Commissioner to the extent provided by Subdivision 357-B. [1A] 8. A class ruling provides certainty to the class of entities by stating that the tax consequences set out in the Ruling part of the class ruling are available in respect of the particular scheme as described in the Scheme part of the class ruling. 8A. The highest levels of disclosure are expected of the applicant. If the scheme carried out is materially different from that ruled upon, the ruling has no binding effect on the Commissioner and may be withdrawn or modified. 9. [Omitted.] | Class of entities: 10. A class ruling sets out the Commissioner's opinion as to the way in which a 'relevant provision' applies to a class of entities in relation to a scheme (subsection 358-5(1)). 11. Who a class ruling applies to, that is, the 'class of entities', is detailed in each class ruling. These entities can rely on the statements contained in the ruling. | Relevant provisions: 12. The Commissioner can issue rulings only on relevant provisions. Relevant provisions are provisions of Acts and regulations administered by the Commissioner that are about any of the matters listed in section 357-55. 13. A class ruling on how a relevant provision applies may be a ruling on the way in which a discretion of the Commissioner under that law would be exercised. | Scheme: 14. A class ruling describes the relevant details of a particular scheme. The following are examples of situations where such a ruling may be given: 15. [Omitted.] 15A. Individual entities who seek to rely on the class ruling may wish to seek assurances from the entity implementing the scheme that it has been carried out as described in the class ruling.




What this Ruling is about | If this Ruling applies to you, and you correctly rely on it, we will apply the law to you in the way set out in this Ruling. That is, you will not pay any more tax or penalties or interest in respect of the matters covered by this Ruling. | (Note: This is a consolidated version of this document.) | Date of effect: 15B. Class rulings will specify a date of effect. A class ruling may also specify the date on which it will cease to have effect. | Publication: 17. A class ruling is a public ruling for the purposes of the Taxation Administration Act 1953. A class ruling must state that it is a public ruling, be published and notice of the making of it must be published by notifiable instrument. [1B] The Commissioner may also, withdraw, by notifiable instrument, a class ruling at any stage, either wholly or to an extent. | Requesting a class ruling: 19. A request for a class ruling must be made in writing in order to receive consideration by ATO staff. ATO staff can also consider issuing a class ruling in those situations where a member of a class of entity or entities affected by a particular scheme requests a private ruling on the scheme. | 20. The Commissioner will need the following information to consider whether to issue a ruling: | 20A. As part of their application, the entity requesting the advice may present their own research and analysis undertaken. [3] | 21. The publication of a class ruling in relation to a particular scheme is generally conditional upon the requesting entity: | 22. The quality and completeness of information supplied and the need to research, analyse and resolve issues that arise, are factors in the time taken to provide a class ruling. | The status of draft class rulings: 22A. A draft class ruling is sent to the applicant to obtain certain agreements and statements. [4] Unlike the final class ruling, it is not intended that the draft class ruling be relied upon. It is not a publication approved in writing by the Commissioner. Consequently, there is no protection against liability for any tax shortfall, interest on the shortfall or false or misleading statement penalty if a taxpayer seeks to rely on statements in the draft class ruling. | Obligations after the issue of a class ruling: 23. Where the scheme is relevant to or affects statutory or other government requirements (for example, director's reports requirements), the Commissioner may request that the relevant information be provided to the affected person or persons. | Testing the Commissioner's views: 24. Where the Commissioner is unable to rule favourably, an entity may apply for a private ruling to enable the issues to be tested through the relevant review processes. This does not preclude the Commissioner from also issuing a class ruling on the scheme, though this will generally only be done where the requesting entity agrees to it. | When the Commissioner will not rule: 25. The Commissioner makes and withdraws class rulings at their discretion. | 26. Without limiting the discretion to refuse to rule in relation to other instances, a class ruling will not be issued in the following circumstances: | 27. Class rulings may be withdrawn when no longer applicable. For example, a class ruling will be withdrawn where the Commissioner is satisfied that the scheme in relation to which the class ruling issued, is no longer to be implemented or the scheme has been implemented but in a way materially different from that described in the Ruling. A class ruling, although withdrawn, will continue to bind the Commissioner in relation to those to whom the ruling applies, who entered into the scheme as described in the ruling during the currency of the Ruling. | The effect of inconsistent rulings: 27A. Where there are inconsistent rulings that both apply to the entity, section 357-75 sets out rules for determining which ruling may be relied upon, to the extent of the inconsistency. Refer to TR 2006/10 for an explanation of the Commissioner's view on how this provision applies. | Class rulings and the promoter penalty laws: 27C. Under the promoter penalty laws [5] , the Commissioner may apply to the Federal Court for sanctions, remedies (or both) to address conduct concerning the: | 27D. The Commissioner has issued Law Administration Practice Statement PS LA 2021/1 Application of the promoter penalty laws, setting out the administrative procedures that are used in applying the promoter penalty laws. | Detailed contents list: 28. Below is a detailed contents list for this Ruling: | Identification of class rulings | Requesting a class ruling | The status of draft class rulings | Obligations after the issue of a class ruling | Testing the Commissioner's views | When the Commissioner will not rule | The effect of inconsistent rulings | Class rulings and the promoter penalty laws | Commissioner of Taxation 28 February 2001


Related rulings: TR 2006/10
Legislative references: TAA 1953 Sch 1 Div 290 TAA 1953 Sch 1 Subdiv 357-B TAA 1953 Sch 1 357-55 TAA 1953 Sch 1 357-75 TAA 1953 Sch 1 Div 358 TAA 1953 Sch 1 358-5(1) TAA 1953 Sch 1 358-5(4)
Other references: PS LA 2021/1