Tax Ruling
/ˈtæks ˈruːlɪŋ/
Definitions
- (n.) An official interpretation or decision by a tax authority intended to clarify tax law application to a specific transaction or situation.
The company sought a tax ruling to confirm the deductibility of its expenses.
- (n.) A prior binding determination issued by a tax authority that taxpayers may rely upon to guide their tax reporting and compliance.
Tax rulings provide certainty and help prevent disputes with tax authorities.
Forms
- tax ruling
- tax rulings
Related terms
See also
Commentary
Tax rulings are important in tax planning and compliance, providing binding or persuasive guidance; they differ by jurisdiction in legal effect and formal requirements.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.