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Tax Administration Act 1994

Disputes procedures - Notices of proposed adjustment

89DA: Taxpayer may issue notice of proposed adjustment for taxpayer assessment

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"You can tell us you think your tax is wrong and want it changed."

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You can issue a notice of proposed adjustment for your tax assessment. This is for a tax year or a GST return period, except in certain situations. You cannot do this if the Commissioner has already issued a notice of proposed adjustment to you. You can only dispute certain parts of an amended assessment. This includes a new liability or an increase in a liability. Your notice of proposed adjustment must be issued within the response period. If you are a look-through company, you can issue a notice of proposed adjustment for a return. This is if the Commissioner has not already issued a notice of proposed adjustment to you. You must follow the rules for notices of proposed adjustment. You must provide a statement if you claim a research and development tax credit. You can find more information about this in subpart HB of the Income Tax Act 2007 and section 33E. You can also look at section 68D and 68E for more information.

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Part 4ADisputes procedures
Notices of proposed adjustment

89DATaxpayer may issue notice of proposed adjustment for taxpayer assessment

  1. A taxpayer may issue a notice of proposed adjustment in respect of an assessment made by the taxpayer for a tax year or a GST return period except,—

  2. to the extent to which the assessment takes into account amounts arising under subpart HB of the Income Tax Act 2007:
    1. to the extent to which the assessment relates to an amount of research and development tax credit and the taxpayer has not filed a research and development supplementary return in relation to the credit within the time allowed under section 33E:
      1. if the Commissioner has previously issued a notice of proposed adjustment to the taxpayer in respect of the assessment.

        1. If the assessment by the taxpayer 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 notice of proposed adjustment under this section is not effective unless it is issued within the response period for the notice.

            2. A taxpayer who makes an assessment of an amount of research and development credit but does not provide a statement under section 68D or 68E in relation to the tax year referred to in subsection (1), may dispute the assessment only by providing a statement for the tax year within the time allowed under section 68D or 68E, as applicable.

            3. A look-through company may issue a notice of proposed adjustment in respect of a return it makes under section 42B for a tax year if the Commissioner has not previously issued a notice of proposed adjustment to the taxpayer in respect of the return. For the purposes of section 89AB(3), the return is treated as a notice of assessment.

            Notes
            • Section 89DA: inserted, on (applying to 2002–03 and subsequent income years), by section 204(1) of the Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 (2001 No 85).
            • Section 89DA(1): amended, on , by section 154(1) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
            • Section 89DA(1): amended, on (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
            • Section 89DA(1): amended, on (applying to notices issued in relation to GST return periods that begin on or after 1 April 2005), by section 97(1) of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).
            • Section 89DA(1)(a): inserted, on , by section 154(1) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
            • Section 89DA(1)(ab): inserted, on , by section 31 (and see section 3 for application) of the Taxation (Research and Development Tax Credits) Act 2019 (2019 No 15).
            • Section 89DA(1)(b): inserted, on , by section 154(1) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
            • Section 89DA(1B): inserted, on , by section 166 of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
            • Section 89DA(2): replaced, on (applying to notices issued in relation to GST return periods that begin on or after 1 April 2005), by section 97(2) of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).
            • Section 89DA(3): inserted (with effect on 1 April 2008), on (applying for 2008–09 and later income years), by section 644(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
            • Section 89DA(4): inserted, on , by section 154(2) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).