Section 56

Binding private rulings (TPA 2nd Sch Para 20)

(1) Subject to section 57, the Commissioner shall, upon application in writing by a registered person, issue to that person a private ruling setting out the Commissioner’s position regarding the application of this Act to a transaction entered into, or proposed to be entered into, by the registered person. 

(2) If the taxpayer has made a full and true disclosure of all aspects of the transaction relevant to the making of a private ruling and the transaction has proceeded in all material respects as described in the registered person’s application for the ruling, the ruling shall be binding on the Commissioner in relation to the registered person. 

(3) A private ruling shall not be binding on the registered person to whom it is issued. 

(4) If a private ruling is inconsistent with an existing public ruling, the private ruling shall have priority to the extent of the inconsistency.

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