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Tax Administration Act 1994

Disputes procedures - Notices of proposed adjustment

89H: Deemed acceptance

You could also call this:

"What happens if you don't respond to a tax change proposal"

Illustration for Tax Administration Act 1994

If you do not reject a proposed adjustment from the Commissioner within the response period, you are deemed to accept it and section 89I applies. If the Commissioner does not reject your proposed adjustment within the response period, they are deemed to accept it and section 89J applies. You are also deemed to accept the Commissioner's notice if you do not notify them that you reject it within the response period. If you do not notify the Commissioner that you reject their notice, or if you notify them that you accept their notice, then section 89I applies as if the Commissioner proposed the adjustment. The Commissioner's notice is also deemed to be a notice of proposed adjustment for the purposes of section 89K. If the Commissioner fails to issue a challenge notice as required by section 89P, they are deemed to accept your proposed adjustment and section 89J applies.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM353185.

Topics:
Money and consumer rights > Taxes
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89I: Circumstances where disputant may not challenge adjustment, or

"When You Can't Disagree with a Tax Adjustment"

Part 4ADisputes procedures
Notices of proposed adjustment

89HDeemed acceptance

  1. If a disputant does not, within the response period for a notice of proposed adjustment issued by the Commissioner, reject an adjustment contained in the notice, the disputant is deemed to accept the proposed adjustment and section 89I applies.

  2. If the Commissioner does not, within the response period for a notice of proposed adjustment issued by a disputant, reject an adjustment contained in the notice, the Commissioner is deemed to accept the proposed adjustment and section 89J applies.

  3. Where—

  4. a disputant does not, within the response period for replying to a notice from the Commissioner rejecting an adjustment proposed by the disputant, notify the Commissioner that they reject all or part of the Commissioner's notice, the disputant is deemed to accept the matters specified in the Commissioner's notice; or
    1. the disputant notifies the Commissioner that they accept all or a part of the Commissioner’s notice,—
        1. then, in those circumstances,—
      1. section 89I applies as if the matters contained in the Commissioner's notice were an adjustment or adjustments proposed by the Commissioner; and
        1. the Commissioner's notice is deemed, for the purposes of section 89K, to be a notice of proposed adjustment.

          1. If the Commissioner fails to issue a challenge notice in accordance with section 89P, the Commissioner is deemed to accept an adjustment proposed by the disputant or the disputant's statement of position, and section 89J applies.

          Notes
          • Section 89H: inserted, on , by section 11 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
          • Section 89H(3)(a): amended, on , by section 130(1) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
          • Section 89H(3)(b): replaced, on , by section 130(2) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
          • Section 89H(4): inserted, on , (applying for a dispute initiated by a taxpayer issuing a notice of proposed adjustment after 29 August 2011) by section 168(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).