Friday, October 4, 2019
On October 1, 2019, New Zealand's Inland Revenue began offering to SMEs and individuals a simplified tax ruling process that is shorter and cheaper.
The so-called short-process ruling service enables those taxpayers whose annual gross income is NZD20m (USD12.5m) or less to get certainty on how tax law applies to their circumstances, in the form of a binding ruling from the tax agency. The ruling process will be available only where the tax at issue is less than NZD1m a year.
"Short-process rulings are intended for individuals and small-to-medium sized businesses with significant transactions, or circumstances that have significant financial consequences," Inland Revenue explained. "They are designed for when people need certainty but didn't want to use the existing binding rulings service because of its greater complexity in the application and cost."
The Inland Revenue anticipates that short-process rulings will take about six weeks to process. More time may be needed for more complex issues, the agency said.
A ruling will cost NZD2,000 (including GST). Applications can be made via the Inland Revenue's website or through myIR.