• Part 18: Part 18: Rulings by Tax Department

    Amended (as from 18th June 2014)

    • Article 104 - Policy Statement on Rulings

      A key tenet of the QFC tax regime is to provide QFC Entities with certainty and clarity regarding their tax liabilities. To support this objective the Tax Department will provide an efficient and timely rulings procedure for specific transactions and, through the issue of practice notes, clarify general issues of difficulty or doubt about any aspect of these Regulations or the Tax Rules.

      Amended (as from 18th June 2014)

    • Article 105 - Rulings

      (1) The Tax Department may, on application in writing by a QFC Entity, give a written ruling setting out the Tax Department's position regarding the application of these Regulations and the Tax Rules with respect to an arrangement proposed or entered into by the QFC Entity.
      (2) The Tax Department are not obliged to give a ruling where they are of the opinion that the main object, or one of the main objects of the arrangement proposed or entered into is the avoidance of tax, the application is frivolous or vexatious or the application does not involve genuine points of doubt or difficulty.
      (3) The Tax Rules may prescribe the form of an application under this Article, the fee payable and other administrative matters relating to rulings (TAX 7).
      (4) Subject to Article 105(5) a ruling under this Article is binding on the Tax Department with respect to the application of these Regulations and the Tax Rules, as in force at the time of the ruling, to the QFC Entity with respect to the arrangement, provided that—
      (a) the QFC Entity makes a full and true disclosure, prior to the ruling, to the Tax Department of all aspects of the arrangement relevant to the ruling; and
      (b) the arrangement proceeds in all material aspects as described in the application.
      (5) A ruling given by the Tax Department under this Article in respect of a proposed arrangement shall not be binding on the Tax Department if the proposed arrangement has not been entered into within 12 months of the date of the ruling.
      (6) An application for a ruling in respect of an arrangement already entered into must be made at least 60 days prior to the filing date for the return for the Accounting Period during which the arrangement was entered into.
      (7) Where there is inconsistency between a practice note issued under Article 106 and a ruling under this Article, the terms of the ruling shall apply.
      Amended (as from 18th June 2014)

    • Article 106 - Practice Notes

      (1) The Tax Department may at any time, of their own accord or on request from a QFC Entity, issue a practice note setting out their interpretation of any aspect of these Regulations or the Tax Rules.
      (2) A practice note is binding on the Tax Department until revoked, but is not binding on QFC Entities.
      (3) The Tax Department shall make practice notes available to the public by such medium as they consider appropriate.
      Amended (as from 18th June 2014)