Private ruling explains about how tax applies for individual person in terms of specific circumstances and scheme. Private ruling deals with problems related to liability, the ultimate conclusions of truth and administration.
Scheme: It is a common term in private ruling used to represent any arrangement, agreement, plan, proposal, action, understanding, course of action, course of conduct, action, undertaking or promise, whether implied or express by legal proceedings.
Entity: Entity is a common term which can be used for the person who are applying and receiving a private rule regarding their tax affairs. The entity refers to any individual person who will apply to the private ruling behalf of someone else and other entity such as a partnership, a company, a superannuation fund, a trust.
Legal personal representative: This person holds a general authorization which was given by other person.
Commissioner: who is the ATO head are delegated his powers or functions.