As commercial transactions on the one hand and tax laws on the other become increasingly complex tax practitioners in very many jurisdictions have called for the establishment of procedures whereby taxpayers can find out in advance the official opinion of the revenue authorities as to the tax implications of proposed transactions. Moreover, taxpayers have asked for reassurance that such an opinion, once given, will not be changed when the time comes for assessment. These demands have regularly been echoed in New Zealand.

Two developments in New Zealand make this book particularly opportune. First, since the change of government following the general election in June 1984, the New Zealand economy has been progressively freed from one set of regulations after another. New and sophisticated financial and commercial transactions have quickly developed, particularly international transactions. Secondly, the freeing of the New Zealand economy from regulation has been and continues to be accompanied by a series of major tax reforms. These developments are seen by many tax practitioners and commentators as substantialy increasing the need for an advance rulings procedure in this country.

Advance Rulings on Tax Liability, which was commissioned by the Institute of Policy Studies, examines and evaluates systems for advance rulings in Canada, Sweden and the United States of America. The book concludes that a formal, binding advance rulings system should be established in New Zealand and makes recommendations as to how this could be achieved. Draft legislation to establish an advance rulings system is included.