Additional declaration for unilateral advance pricing agreement private rulings

2012 amendment establishes an additional declaration for unilateral advance pricing agreement private rulings (APAs).

Section 91ED(1B) of the Tax Administration Act 1994

New section 91ED(1B) is relevant for people making an application for a private ruling on how transfer pricing rules apply (including branch income and expenditure apportionment) in sections GC 6 to GC 14 or YD 5 of the Income Tax Act 2007. They will be required to examine the application and confirm that to the best of their knowledge, the information disclosed in the application is comprehensive. This declaration will be submitted with their application for a ruling.


Inland Revenue has had concerns about the completeness of some advance pricing agreement applications and documentation packages. As consideration of transfer pricing issues is heavily dependent on the level of information provided, problems can arise if key details are not supplied, or if the information provided is not comprehensive. The purpose of the amendment is to reduce the number of potentially inaccurate or factually incomplete applications. Due to the fact-intensive nature of advance pricing agreements, tax agents also depend on information received from the taxpayer when acting on behalf of clients.

Key features

Applicants for private rulings relating to advance pricing agreements will now be required to be more explicitly involved in the application process. The additional declaration is to ensure that a person in the applicant's business who has sufficient knowledge of the applicant's international related-party transactions and transfer pricing methodology and has the necessary authority to make the declaration, can declare that the information provided to Inland Revenue in connection with the application is expansive and complete.

Application date

The new section will apply from the date of Royal assent, being 2 November 2012.