How Does Tax Law Apply to Your Situation?

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The IRD is introducing a new service from 1st October 2019 for customers to help them clarify on how tax law applies to their situations.

The new service is a good opportunity for individuals and businesses with an annual gross income up to $20 million to get a binding ruling from the IRD in a faster and cheaper manner than the existing (original) binding rulings service.

It must relate to tax of less than $1 million in the relevant year.

New short-process rulings are intended for individuals and small-to-medium sized businesses with significant transactions, or circumstances that have significant financial consequences.

As per the IRD the new short-process rulings may take about six weeks to process, however, in case of a more complex situation, the IRD will need more time to consider the issue properly.

The IRD has limited the scope of a short-process ruling application to a single tax type. A short-process ruling will cost customers $2,000 (including GST).

To get a short-process ruling, customers will need to ask a question related to a tax, duty or levy that the IRD is responsible for.

 

Applications can be made through myIR or via the IRD website https://www.ird.govt.nz/spr

 

https://media.ird.govt.nz/articles/short-process-rulings/

Heather Spreckley