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Tax Administration Act 1994

Disputes procedures - Notices of proposed adjustment

89D: Taxpayers and others with standing may issue notices of proposed adjustment

You could also call this:

"You can question a tax bill by sending a notice of proposed adjustment."

Illustration for Tax Administration Act 1994

You can issue a notice of proposed adjustment if the Commissioner sends you a notice of assessment. The Commissioner must not have sent you a notice of proposed adjustment before. You can do this except for amounts related to subpart HB of the Income Tax Act 2007. If the Commissioner sends you an amended assessment, you can only dispute new liabilities or increases in liabilities. You must issue the notice within the applicable response period for it to have effect. If you have not filed a tax return, you can dispute the assessment by filing a return. There are special rules for individual taxpayers and for GST tax returns. You can also dispute an assessment of research and development credit by providing a statement.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM353160.

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Money and consumer rights > Taxes
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89DA: Taxpayer may issue notice of proposed adjustment for taxpayer assessment, or

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Part 4ADisputes procedures
Notices of proposed adjustment

89DTaxpayers and others with standing may issue notices of proposed adjustment

  1. If the Commissioner—

  2. issues a notice of assessment to a taxpayer; and
    1. has not previously issued a notice of proposed adjustment to the taxpayer in respect of the assessment, whether or not in breach of section 89C,—
        1. the taxpayer may, subject to subsections (1B) and (2), issue a notice of proposed adjustment in respect of the assessment except to the extent to which the assessment takes into account amounts arising under subpart HB of the Income Tax Act 2007.

      1. If the assessment by the Commissioner is an amended assessment, the taxpayer’s entitlement to dispute the assessment is limited to disputing—

      2. a liability imposed by the assessment that was not imposed by the assessment being amended:
        1. an increase imposed by the assessment in a liability that was imposed by the assessment being amended.

          1. A taxpayer who has not furnished a return of income for an assessment period may dispute the assessment made by the Commissioner only by furnishing a return of income for the assessment period.

          2. For the purpose of subsection (2), section 33(2) does not apply.

          3. For a taxpayer who is an individual, when an assessment for a tax year is made as described in section 22I(3), the taxpayer may dispute the assessment only by making an adjustment to their final account for the tax year.

          4. A taxpayer who has not provided a GST tax return for a GST return period may not dispute the assessment made by the Commissioner other than by providing a GST return for the GST return period.

          5. For the purpose of subsection (2C), section 16(6) of the Goods and Services Tax Act 1985 does not apply.

          6. If the Commissioner makes an assessment of an amount of research and development credit, a taxpayer who has not provided a statement under section 68D or 68E in relation to an assessment period may dispute the assessment only by providing a statement for the period within the time allowed under section 68D or 68E, as applicable.

          7. If the Commissioner—

          8. issues a notice of disputable decision that is not a notice of assessment; and
            1. the notice of disputable decision affects the taxpayer,—
                1. the taxpayer, or any other person who has the standing under a tax law to do so on behalf of the taxpayer, may issue a notice of proposed adjustment in respect of the disputable decision.

              1. Repealed

              2. For a notice of proposed adjustment issued under this section to have effect, the notice must be issued within the applicable response period.

              Notes
              • Section 89D: inserted, on , by section 11 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
              • Section 89D(1): amended, on , by section 165(1) of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
              • Section 89D(1): amended, on , by section 153 of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
              • Section 89D(1B): inserted, on , by section 165(2) of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
              • Section 89D(2): replaced, on (applying to 2002–03 and subsequent income years), by section 203(1) of the Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 (2001 No 85).
              • Section 89D(2A): inserted, on (applying to 2002–03 and subsequent income years), by section 203(1) of the Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 (2001 No 85).
              • Section 89D(2B): replaced, on , by section 52 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
              • Section 89D(2C): inserted, on (applying for GST return periods that begin on or after 1 April 2005), by section 96(1) of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).
              • Section 89D(2D): inserted, on , by section 233 of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).
              • Section 89D(2D): amended, on (applying for taxable periods ending on or after 31 March 2007), by section 191(1) of the Taxation (Savings Investment and Miscellaneous Provisions) Act 2006 (2006 No 81).
              • Section 89D(2E): inserted (with effect on 1 April 2008), on (applying for 2008–09 and later income years), by section 643(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
              • Section 89D(4): repealed, on (applying for GST return periods that begin on or after 1 April 2005), by section 96(2) of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).