Taxpayer rulings provide greater certainty about the application of tax laws and foster higher levels of compliance with tax legislation by:
- making rulings on transactions, which allow taxpayers to enter into transactions with confidence as to the tax outcomes
- applying an impartial and rigorous analysis of how the tax laws will apply.
The taxpayer rulings service is fee-based. Through this service we issue:
- private, product and status rulings — the Commissioner's interpretations of the tax laws
- financial determinations — these are formally binding on the Commissioner.
Binding rulings bind the Commissioner for the period they apply. It is important that they are technically correct and in accordance with the tax Acts and relevant case law.
Staff who prepare binding rulings are usually qualified solicitors. They thoroughly research the issues involved in the ruling application before preparing a draft. Drafts are then discussed with the applicant to ensure they correctly describe the arrangement on which the ruling has been requested.
Applications for binding rulings are assigned to a business unit using our allocation guidelines.