Advance rulings

—(1) The Director General may, on the request of a taxpayer, issue to that taxpayer an advance ruling setting out the Department’s position regarding the application of tax legislation to a specific transaction proposed by the taxpayer. (2) The advance ruling is binding on the Department and on the taxpayer, with respect to the application of the tax legislation to the specific transaction if– (a) the taxpayer has made a full and true disclosure of the nature of all aspects of the transaction relevant to the ruling; and (b) the transaction proceeds in all material respects as described in the taxpayer’s application for the ruling. (3) If the Director General proposes to issue an advance ruling where the tax treatment differs from that proposed by the taxpayer in its application, the Director General shall notify the taxpayer and give the taxpayer an opportunity to withdraw the ruling request. Tax Administration and Procedure CAP. 51 17 (4) For reasonable cause, the Director General may amend or revoke an advance ruling, in whole or in part, by written notice served on the taxpayer. (5) Revocation or amendment of an advance ruling has prospective effect only, and the specifics of how the revocation or amendment is applied prospectively, shall be stated in the notice of revocation or amendment. (6) Any subsequent passage of legislation that is inconsistent with an advance ruling revokes the ruling to the extent of the inconsistency. (7) The Director General shall publish any advance rulings that the Director General has issued, deleting or redacting the taxpayer’s name and other information specific to the taxpayer that is not needed by others to understand the ruling. (8) The Director General may adopt procedures for the issuance of advance rulings. (9) The Minister shall, by Order, specify fees to be charged for filing an application for issuance of an advance ruling, and the fees shall be reasonably related to the costs of processing the ruling request and issuing the ruling.