Authority for Advance Ruling

An Authority for Advance Ruling is a government body that provides taxpayers, such as businesses or individuals, with official guidance on the tax treatment of specific transactions before they happen. This helps prevent disputes and uncertainty by clarifying how tax laws apply to particular situations in advance. The ruling is applicable only to the person or entity requesting it and is binding on both sides, ensuring clarity and confidence in future dealings with the tax authorities. It promotes transparency and certainty in tax matters by offering expert interpretation prior to executing a transaction.