Can a gaining agency, in a MOG change, rely on a private ruling issued to the losing agency?
Private rulings issued to a losing agency cannot be relied upon by a gaining agency. GST private rulings can only apply to the entity the ruling was given to.
Therefore, if a gaining agency (who is not the ruling recipient) relies on a private ruling that was issued to the losing agency and as a result underpays a net amount, the gaining agency will be liable for this amount unpaid.
It is expected that government organisations risk assess to determine whether it is necessary to reapply for a private ruling depending on the changes. This risk assessment process is inherent to the nature of the self-assessment taxation regime and, in particular, when relying on our publications or rulings (public or private) due to the individual circumstances and any changes to those circumstances.