Advance Rulings Procedures
Victoria University of Wellington Law Review, Vol. 15, pp. 237-252, 1985
9 Pages Posted: 25 Mar 2010
Date Written: 1985
Abstract
New Zealand has an advance rulings procedure but because the rulings are not binding they cannot be relied upon. The article argues that a formal, binding, advance ruling procedure for income tax questions should be instituted in New Zealand. The two most relevant models for New Zealand are the Swedish and Canadian models. Both are analysed. The current position in New Zealand, including what may be ruled on, is presented. The procedures and operation of a transition to a binding procedure are considered, including suggested legislation to implement the change.
The New Zealand Parliament adopted the principles of the recommendations in this article. Part VA of the Income Tax Amendment Act 1994 provides for binding advance rulings.
Keywords: Advance rulings, Tax law, Income tax
JEL Classification: K34
Suggested Citation: Suggested Citation