Binding rulings for small businesses

Inland Revenue has recognised the system of binding rulings doesn’t work for small businesses because it’s too expensive.

It can be very useful putting the facts of a case to Inland Revenue and getting agreement on the tax situation, in advance.

IR has introduced a new scheme for small businesses in which it will commit itself on issues relating to tax, duty or any levy for which IR is responsible. There’s a fixed cost for this – $2,000 GST inclusive.

The department will tell you how the tax law applies to your situation and what conditions apply.

You can read more here.