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Inland Revenue

Tax Policy

Private rulings for advance pricing agreements

(Clause 119)

Summary of proposed amendment

The amendment will require those making an application for a private ruling relating to transfer pricing to examine the application and confirm, in a notice submitted at the same time as their application for a ruling is submitted, that to the best of their knowledge, the information disclosed in the application is comprehensive.

Application date

The amendment will apply from the date of enactment.

Key features

Applicants for private rulings relating to advance pricing agreements will be required to be more involved in the application process. The amendment will require them to examine the application personally and make a declaration as to the comprehensiveness of the information provided in support of their application.


Inland Revenue has some concerns about the completeness of some advance pricing agreement applications and documentation packages. As transfer pricing is driven by the facts available, problems can arise if the key facts are not provided, or if information provided is not comprehensive.

Currently, tax agents can make an application of behalf of an applicant, and can sign the declaration on the application form that “the details contained in this application are true and correct”.

The new requirement will be in addition to the requirement in section 91ED(1)(b) of the Tax Administration Act 1994 that the application must disclose all relevant facts and documents relating to the arrangement for which the ruling is sought. Its inclusion is to ensure that the applicant has personally examined the application and stated that to the best of their knowledge, the information disclosed for the application is comprehensive.