Letter · Taxation
Letter of tax advice with confidence rating and penalty position
Structured letter of tax advice: answer first, then scope, facts and assumptions, analysis by issue, a defined confidence scale tied to the 'reasonably arguable' test, the penalty position and next steps. Built to keep privilege and to record any AI use.
- Kind
- Letter. A letter or email you adapt and send.
- Where it applies
- Australia
- AI use
- Yellow AI can help in set ways. A lawyer checks specific points before use.
- Law stated as at
- 17 October 2026
- Status
- Maintained. Checked on 17 October 2026 against the 8 authorities it cites, for Australia.
- Version
- 1
- Source
- Written for this library
When to use it
Use for a lawyer's written advice on how Australian federal tax law applies to a client's past or proposed transaction. Do not use it for a tax agent's non-legal advice (privilege will not attach), or in place of a private ruling where the client needs binding certainty.
How AI may be used
AI may organise the facts and build a structured first draft from the lawyer's issues list and the sources the lawyer names. The analysis, the confidence rating and the penalty position are the lawyer's, and every citation and figure is checked against the official source before signing.
AI may
- Turn the lawyer's facts and issues list into the letter structure, leaving conclusions and confidence ratings blank
- Extract facts, dates and amounts from the transaction documents into section 3, with a source reference for each
- Summarise provisions and rulings the lawyer has opened, quoting their exact words
- List missing facts, inconsistent figures and assumptions that need the client's confirmation
AI must not
- Must not choose the conclusion or the confidence rating on any issue
- Must not cite a provision, ruling or case that a lawyer has not read in the official source
- Must not be given tax file numbers or the client's privileged advice in a tool whose terms allow retention for training or disclosure to others
- Must not rely on an edited version of someone else's private ruling as authority
The lawyer checks
- Each provision exists in the compilation in force at the relevant time and says what the letter says it says
- Each ruling is current and its status (public, draft, ATO ID, practical compliance guideline) is stated correctly
- Every fact in section 3 matches a document or a written client instruction
- The penalty percentages and confidence statements reflect current law and the lawyer's own judgement
Method: how the Green, Yellow and Red levels are decided. This is guidance for planning, not legal advice.
Read the full text
The full text is for signed-in accounts. It is free. When you sign in you can:
- read the whole precedent, with its drafting notes beside it;
- copy it, or download it as a Word file or Markdown;
- add it to your firm’s knowledge base, so colleagues can find it;
- let the AI tools you connect read it from that knowledge base.
The summary, the law it rests on and the AI-use guidance above stay public. Privacy.
More in Taxation
- Letter responding to an ATO formal notice to give information or produce documents (with privilege claim)
- Private ruling application (ATO approved form): completion guide
- Objection to an ATO assessment or decision: completion guide and grounds structure
- Voluntary disclosure to the ATO: completion guide and penalty-reduction checklist
- Verification checklist for AI-assisted tax research, advice and objections
- Client notice on AI use with tax records and tax file numbers