How Does Tax Law Apply to Your Situation?
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