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Tax Administration Act 1994

Binding rulings - Private rulings

91E: Commissioner to make private rulings on application

You could also call this:

"Ask the Commissioner for a personal tax decision"

Illustration for Tax Administration Act 1994

You can ask the Commissioner for a private ruling on how a tax law applies to you and your arrangement. The Commissioner must make a private ruling if you ask for one, except in certain situations, such as when the ruling would depend on a future event. The Commissioner can also decline to make a private ruling if you have outstanding debts or if the application is frivolous.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM353834.

Topics:
Money and consumer rights > Taxes
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91DE: Withdrawal of a public ruling, or

"When a public ruling is cancelled by the Commissioner"

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91EA: Effect of a private ruling, or

"What a private tax ruling means for you"

Part 5ABinding rulings
Private rulings

91ECommissioner to make private rulings on application

  1. Subject to section 91EF, the Commissioner must make a private ruling on how a taxation law applies, or would apply, to a person and to the arrangement, whether a single or a recurring arrangement, for which the ruling is sought.

  2. The Commissioner may make a private ruling on the status of a person, item, or matter under section 91CB otherwise than in relation to an arrangement.

  3. The Commissioner may make a private ruling on how a taxation law applies to the arrangement described in an application whether or not reference was made to that taxation law in the application.

  4. The Commissioner may decline to make a private ruling if—

  5. the Commissioner considers that the correctness of the ruling would depend on which conditions were stipulatedabout a future event or other matter; or
    1. the arrangement on which the ruling is sought, or a separately identifiable part of that arrangement, is substantially the same as an arrangement which is subject to an objection, challenge, or appeal, whether in relation to the applicant or any other person; or
      1. the applicant has outstanding debts relating to earlier binding ruling applications.

        1. Despite subsection (1), the Commissioner may decide to not make a private ruling, to the extent to which it would be a ruling on how section GA 1 of the Income Tax Act 2007 applies or would apply.

        2. The Commissioner may not make a private ruling if—

        3. the application for the ruling would require the Commissioner to determine a proscribed question, other than a matter referred to in section 91CB(3); or
          1. at the time the application is made or at any time before the ruling is issued, the Commissioner considers that the person to whom the ruling is to apply is not seriously contemplating the arrangement for which the ruling is sought; or
            1. the application is frivolous or vexatious; or
              1. the matter on which the ruling is sought—
                1. concerns a tax (excluding provisional tax), duty, or levy that is due and payable, unless the application is received before the tax (excluding provisional tax), duty, or levy is due and payable; or
                  1. is being dealt with, or in the Commissioner's opinion should be dealt with, by one or both competent authorities of the parties to a double tax agreement; or
                  2. a private ruling already exists on how the relevant taxation law applies to the person and the arrangement, and the proposed ruling would apply to a period or a tax year to which the existing ruling applies; or
                    1. an assessment relating to the person, the arrangement, and a period or a tax year to which the proposed ruling would apply has been made, unless the application is received by the Commissioner before the date an assessment is made; or
                      1. the Commissioner is auditing or investigating how the taxation law applies to the person and to the arrangement for a period or a tax year to which the proposed ruling would apply; or
                        1. a notice of proposed adjustment has been issued, and the proposed ruling would apply to the same—
                          1. person; and
                            1. arrangement; and
                              1. tax type or separately identifiable issue; or
                              2. in the Commissioner's opinion the applicant has not provided sufficient information in relation to the application after the Commissioner has requested further information; or
                                1. in the Commissioner's opinion it would be unreasonable to make a ruling in view of the resources available to the Commissioner; or
                                  1. the application for the ruling would require the Commissioner to form an opinion as to a generally accepted accounting practice.

                                    1. Subsection (4)(a) does not apply if the application for the ruling relates to how either sections GC 6 to GC 19 or YD 5 of the Income Tax Act 2007 applies, or would apply, to the person applying for the ruling and to the arrangement, whether a single or a recurring arrangement, for which the ruling is sought.

                                    2. In this section and sections 91EA to 91ED, 91EH, and 91EI, a reference to an arrangement is ignored for the purposes of a ruling by the Commissioner under section 91CB on the status of a person, item, or matter.

                                    3. The Commissioner may not, before 1 April 1996 or such other date as may be specified by the Governor-General by Order in Council for the purposes of this subsection, make a private ruling on an arrangement if that arrangement was entered into before the date on which the Commissioner received the application for the ruling.

                                    4. An order under subsection (5) is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).

                                    5. Repealed
                                    Notes
                                    • Section 91E: inserted (with effect on 1 April 1995), on , by section 10 of the Tax Administration Amendment Act 1995 (1995 No 24).
                                    • Section 91E heading: amended, on , by section 142(1) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
                                    • Section 91E(1): replaced, on (applying on and after 20 May 1999), by section 82(1) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
                                    • Section 91E(1B): inserted, on , by section 57(1) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
                                    • Section 91E(3)(a): amended, on , by section 57(2) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
                                    • Section 91E(3)(b): amended, on , by section 154(1) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
                                    • Section 91E(3)(b): amended, on (applying on and after 20 May 1999), by section 82(2) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
                                    • Section 91E(3)(b): amended (with effect on 1 October 1996), on , by section 75(1) of the Taxation (Remedial Provisions) Act 1997 (1997 No 74).
                                    • Section 91E(3)(c): inserted, on (applying on and after 20 May 1999), by section 82(2) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
                                    • Section 91E(3B): inserted, on , by section 195 of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).
                                    • Section 91E(4)(a): amended, on , by section 57(3) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
                                    • Section 91E(4)(b): replaced, on (applying on and after 20 May 1999), by section 82(3) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
                                    • Section 91E(4)(d)(i): replaced, on (applying on and after 20 May 1999), by section 82(4) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
                                    • Section 91E(4)(d)(ii): replaced, on , by section 75(3) of the Taxation (Remedial Provisions) Act 1997 (1997 No 74).
                                    • Section 91E(4)(e): amended, on (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
                                    • Section 91E(4)(e): amended, on (applying on and after 20 May 1999), by section 82(5) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
                                    • Section 91E(4)(f): replaced, on (applying on and after 20 May 1999), by section 82(6) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
                                    • Section 91E(4)(f): amended, on (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
                                    • Section 91E(4)(g): replaced, on (applying on and after 20 May 1999), by section 82(7) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
                                    • Section 91E(4)(g): amended, on (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
                                    • Section 91E(4)(ga): replaced, on , by section 142(2) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
                                    • Section 91E(4)(i): amended, on , by section 29 of the Taxation (Tax Credits, Trading Stock, and Other Remedial Matters) Act 1998 (1998 No 107).
                                    • Section 91E(4)(j): inserted, on , by section 29 of the Taxation (Tax Credits, Trading Stock, and Other Remedial Matters) Act 1998 (1998 No 107).
                                    • Section 91E(4)(j): amended, on , by section 154(4) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
                                    • Section 91E(4)(j): amended (with effect on 17 October 2002), on , by section 121 of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).
                                    • Section 91E(4A): replaced, on (applying on and after 20 May 1999), by section 82(8) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
                                    • Section 91E(4A): amended (with effect on 1 July 2018), on , by section 57(4) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
                                    • Section 91E(4A): amended, on (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
                                    • Section 91E(4B): inserted, on , by section 57(5) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
                                    • Section 91E(6): inserted, on , by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
                                    • Section 91E(6): repealed, on , by section 141 of the Taxation (Base Maintenance and Miscellaneous Provisions) Act 2005 (2005 No 79).