Practice Statement Law Administration

PS LA 2001/8

ATO interpretative decisions

• This document has changed over time. View its history.

This Practice Statement explains the policy for ATO interpretative decisions.

1. ATO interpretative decisions

An ATO interpretative decision (ATO ID) is a summarised version of a decision we have made on the application of the law^[1] to a particular situation. We issued ATO IDs between 2001 and 2016.

2. Why we have ATO IDs

ATO IDs set out a precedential ATO view, as explained in Law Administration Practice Statement PS LA 2003/3 Precedential ATO view.

We produce precedential ATO views to ensure we provide consistent interpretative decision-making. You must search for existing precedential ATO views and those being prepared when resolving interpretative issues.

You must follow an ATO ID where:

•

in your judgment, there is no material difference between the facts of the issue you are making a decision on and the facts of an existing ATO ID, and

•

you are satisfied that the application of the precedential ATO view set out in the ATO ID will result in a correct decision.^[2]

An interpretative issue is one where the application of the law is not straightforward.

An exercise of a discretion, a conclusion of fact or the determination of a value, for example, would not be an interpretative issue.

3. Taxpayer reliance on ATO IDs

ATO IDs are publications approved in writing by the Commissioner and therefore offer penalty and interest protection to any taxpayer who might rely on them.^[3]

4. Maintaining the currency of ATO IDs

In line with the requirements of PS LA 2003/3, business lines must have processes in place to ensure ATO IDs, as precedential ATO view documents, are reviewed and (if necessary and in a timely manner) updated, withdrawn and replaced (with an appropriate replacement product), or withdrawn.

We no longer prepare new ATO IDs or significantly update existing ATO IDs.

Amending ATO IDs - minor updates

ATO IDs that require only a minor update, which does not affect the decision or reasons for decision, can be amended.

Withdrawing and replacing ATO IDs - substantial updates

If an ATO ID requires a substantial update, it should be withdrawn and an appropriate replacement product produced.

You should:

•

consult with your business line's Public Advice and Guidance (PAG) Unit, as listed in PAG - Key contacts (link available internally only), to determine the most appropriate product, and

•

(if necessary) follow the procedures for developing PAG products in PAG development procedures - end to end (link available internally only).

As a general rule, an ATO ID should not be withdrawn before the replacement product is published.

Withdrawing ATO IDs without replacement

In limited circumstances (for example, where the provision which the ATO ID discusses has been repealed but not replaced or the issue covered no longer has sufficient value to warrant the investment in producing the replacement product), the ATO ID may not need to be replaced.

Note that normally you should not withdraw an ATO ID where it is still correct. There is no value in doing this.

5. More information

For more information:

•

view ATO IDs on ATOlaw (link available internally only) or the Legal database

•

contact PAG Governance in the Office of the Chief Tax Counsel.

Amendment history

© AUSTRALIAN TAXATION OFFICE FOR THE COMMONWEALTH OF AUSTRALIA

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

Date of Issue: 8 June 2007

Date of Effect: 8 June 2007

File 2001/7447; 1-5TNXJL2; 1-154YURSS

Related Practice Statements:
PS LA 2003/3

Other References:
PAG - Key contacts (link available internally only)
PAG development procedures – end to end (link available internally only)

Legislative References:
TAA 1953 Sch 1 298-20
TAA 1953 Sch 1 361-5

Business Line:  OCTC

ISSN: 2651-9526