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Advance tax ruling

   Also found in: Acronyms 0.01 sec.
Advance tax ruling
A written statement sought by a taxpayer from the tax authorities about the tax implications of a transaction. It is often a precondition for closing the transaction because an adverse tax ruling may make the transaction (e.g. a merger) financially unviable.
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The strategic disadvantages of applying for an advance tax ruling are shown usually to outweigh the strategic advantages of such a request.
Resolving legal uncertainty: the unfulfilled promise of advance tax ... by Givati, Yehonatan / Virginia Tax Review
The reorganization is also subject to certain regulatory and third-party approvals and follows an advance tax ruling received from the Canada Revenue Agency.
Peyto Energy Trust Announces Proposed Internal Reorganization and ... by PR Newswire
The decision came after the Canadian government stopped providing advance tax rulings on income trust offerings pending a tax review.
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