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https://www.ato.gov.au/general/ato-a...rivate-ruling/

Has anyone got any experience of applying for a private ruling with regards to the ATO and any personal matters regarding taxation.

Yes it has something to do with Forex Gains, but I am not debating that; the actual point of asking for a Private Ruling. Just wondering whether anyone has ever applied for a private ruling, and whether it went in their favour or just cemented the rules as per se?

New to all this, just want to put this Forex Gains/Money transfer to bed, with talking to the people who matter and make the decisions at the end of the day.

thanks.

Beoz

Not here, but you can guarantee that private rulings on the subject will be on the increase.

The mass of people that were transferred over 4 / 5 years ago when the dollar was great, mining flying, will be looking to bring some pounds over.

spuddyo

I applied for a Private Ruling in regard to taxation on a transfer of Super from UK into an Aussie Fund last year. The outcome was exactly as per the rule book with no room for negotiation. They worked out to the cent what my Super was 18 years ago in the UK, quoted exchange rates valid at that time, looked at growth of the fund, adjusted for exchange rate changes and billed me large ! Ended up with an ATO invoice for over $45K.

Once the Private Ruling has been passed down and paid though, that's that. No need to worry about putting any of it on a tax return etc.

Beoz

Just clarifying here, So 18 years ago the A$ was at 0.46 against the GBP or there abouts. Not far from where it is today. Sounds like you got the ruling on where the $A was a year or 2 ago, perhaps at 0.6 - right? So they got you on the difference between 0.46 - 0.6. approx? Plus the growth of the fund, etc. And 18 years ago was when you emigrated to Oz?

Sorry for the questions, just trying to understand what you are explaining here.

renth

I think the growth of the fund is the taxable bit (as well, possibly the change in forex rate).

spuddyo

They worked out what my fund was worth in Ozzy dollars based on the exchange rate when I moved to Oz 18 years ago. Then they looked at what the fund was worth based on the exchange rate when I transferred the fund, and then taxed me on the growth of the fund over that whole period that I was living in Oz.

So for example, if the fund was worth $50k at the exchange rate in 1997 when emigrating, and the fund was worth $200k in in 2013 based on the exchange rate then, they calculate tax based on the growth of $150k. They used the exchange rate in 1997 and 2013 respectively. Just an example.

Beoz

Ok got it. Cheers for the clarification. I supposed had you waited until now, you'd only been doing the ATO out of some money rather than yourself.

sign

So, in essence if the value of the fund was $50k in 1997, and then also valued at $50k in 2013. Yet the exchange rate was say 1.5 to 1 in 1997 but 2.5 to 1 in 2013.

They would have calculated the tax owed on the growth of the fund via the change in the exchange rate over the same period?

So a $50k growth over 16 years?

Tax owed on the Forex gain, am I correct this was there ruling.

By the way thankyou very much for replying.

barney41

Not sure if anyone could answer this but if we first entered as Permanent Residents in 2007 would this be the date that would be first used as the forex transfer rate or will it be our next entry date which will (hopefully) be in November? Thanks

spuddyo

In Theory yes, but I couldn't say for sure as that would be the consideration of your own private ruling. I can only tell you what mine was.