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Tax Administration Act 1994

Binding rulings - Product rulings

91F: Commissioner may make product rulings

You could also call this:

"The Commissioner can help you understand how tax laws apply to a particular arrangement."

Illustration for Tax Administration Act 1994

The Commissioner can make a product ruling on how tax laws apply to a particular arrangement. You can apply for a product ruling if you want to know how tax laws apply to an arrangement. The Commissioner will consider your application and may make a ruling. The Commissioner can make a product ruling on the status of a person, item, or matter under section 91CB(2) or (3). The Commissioner can also make a ruling on how a tax law applies to an arrangement, even if the application did not mention that law. The Commissioner may decline to make a product ruling if they think the ruling would depend on future events or if the arrangement is similar to one that is already being disputed. The Commissioner cannot make a product ruling if it would require them to decide on a matter that is not allowed, except as referred to in section 91CB(3). The Commissioner also cannot make a ruling if they think you are not seriously considering the arrangement or if the application is frivolous. The Commissioner may not make a ruling if a product ruling already exists for the same arrangement and period, or if you have not provided enough information after being asked to do so.

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This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM353898.

Topics:
Money and consumer rights > Taxes
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91ET: Treatment of information, or

"What happens to the information you give when you ask for a tax ruling"

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91FA: Effect of a product ruling, or

"What happens when you get a product ruling on tax"

Part 5ABinding rulings
Product rulings

91FCommissioner may make product rulings

  1. The Commissioner may make a product ruling on how any taxation law applies to a particular arrangement if—

  2. the Commissioner receives an application for a product ruling on the arrangement; and
    1. the Commissioner is satisfied that a private ruling cannot be made because it is not practicable to identify the taxpayers who may enter into the arrangement; and
      1. the characteristics of the taxpayers who may enter into the arrangement would not affect the content of the ruling.

        1. The Commissioner may make a product ruling on the status of a person, item, or matter under section 91CB(2) or (3), whether in relation to an arrangement or not.

        2. The Commissioner may make a product 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.

        3. The Commissioner may decline to make a product ruling if—

        4. the Commissioner considers that the correctness of the ruling would depend on which conditions were stipulated about 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 is a promoter who, in the Commissioner's opinion, did not comply with section 91FD in relation to an earlier binding ruling application; or
              1. the applicant has outstanding debts relating to earlier binding ruling applications.

                1. The Commissioner may not make a product ruling if—

                2. 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 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
                        1. a product ruling already exists on how the taxation law applies to the arrangement, and the proposed ruling would apply to a period or tax year to which the existing ruling applies; or
                          1. 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.

                                Notes
                                • Section 91F: inserted (with effect on 1 April 1995), on , by section 10 of the Tax Administration Amendment Act 1995 (1995 No 24).
                                • Section 91F(1B): inserted, on , by section 64(1) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
                                • Section 91F(3)(a): amended, on , by section 64(2) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
                                • Section 91F(3)(b): replaced, on , by section 160(1) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
                                • Section 91F(3)(bb): inserted, on , by section 160(1) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
                                • Section 91F(3)(c): inserted, on (applying on and after 20 May 1999), by section 89(1) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
                                • Section 91F(4)(a): amended, on , by section 64(3) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
                                • Section 91F(4)(b): replaced, on (applying on and after 20 May 1999), by section 89(2) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
                                • Section 91F(4)(d): replaced, on , by section 76(3) of the Taxation (Remedial Provisions) Act 1997 (1997 No 74).
                                • Section 91F(4)(e): replaced, on (applying on and after 20 May 1999), by section 89(3) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
                                • Section 91F(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 91F(4)(g): amended, on , by section 30 of the Taxation (Tax Credits, Trading Stock, and Other Remedial Matters) Act 1998 (1998 No 107).
                                • Section 91F(4)(h): inserted, on , by section 30 of the Taxation (Tax Credits, Trading Stock, and Other Remedial Matters) Act 1998 (1998 No 107).
                                • Section 91F(4)(h): amended, on , by section 160(3) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
                                • Section 91F(4)(h): amended (with effect on 17 October 2002), on , by section 122 of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).