Binding Rulings

A binding ruling is binding advice provided by the Inland Revenue that sets out how a tax law applies to a person in relation to a specific arrangement, person or item of property.

    • An arrangement is any agreement, contract, plan or understanding (whether enforceable or not), including any steps and transactions that carry it into effect, and any facts that the Commissioner considers material or relevant as background or context to a private or a product ruling.

A binding ruling provides certainty for a taxpayer on a tax position, it does not remove the requirement to file a tax return and pay any taxes.

  • Rulings are frequently used when:
    • The law is unclear and there could be multiple interpretations;
    • There is new legislation that applies to the transaction
    • The transaction is novel, sensitive or controversial;
    • The arrangement is a complex financing transaction

Contact Covisory. Let's talk how Covisory can assist you in getting some certainity on your tax position.