280-20-00 R.I. Code R. § 5.4

Current through June 20, 2024

Section 280-RICR-20-00-5.4 - Binding Effect of Declaratory Orders

A. A Declaratory Order represents the position of, and is binding on, the Tax Division with respect to

1. a particular transaction (and subsequent like transactions) involving the persons identified as interested parties in the request for issuance of the Declaratory Order and

2. other transactions involving persons other than those identified as interested parties in the request for issuance of the Declaratory Order, but such other persons have the burden of establishing that the facts and circumstances involved in their transactions are substantially the same and are not materially different from the facts and circumstances involved in the transaction on which the Declaratory Order is based.

B. With respect to the taxpayer to which a Declaratory Order was originally issued or a person identified as an interested party in the request therefor, a Declaratory Ruling is not binding on the Tax Division if:

1. there has been a misstatement or omission of material facts;

2. the facts subsequently developed are materially different from the facts on the Declaratory Order was based.

C. With respect to any other person, a Declaratory Order is not binding on the Tax Division if:

1. the facts and circumstances involved in such other person's transactions are not substantially the same or are materially different from the facts and circumstances involved in the transaction on which the Declaratory Order is based.

D. A Declaratory Order is not binding on the Tax Division (on a prospective basis) if:

1. there has been a change in the applicable law or regulations;

2. a decision on point is issued by the Rhode Island or Federal courts.

E. A Declaratory Order found to be in error or not in accord with the current view of the Division of Taxation may be modified or revoked. The revocation or modification of an order will not be applied retroactively with respect to the taxpayer to whom the order was originally issued or to a taxpayer with respect to subsequent like transactions relying on such order in good faith.

280 R.I. Code R. § 280-RICR-20-00-5.4