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Tax Administration Act 1994

Disputes procedures - Notices of proposed adjustment

89L: Application to High Court

You could also call this:

"Asking the High Court to Help with a Tax Decision"

Illustration for Tax Administration Act 1994

The Commissioner can apply to the High Court to reject an adjustment you proposed if something unexpected happens. The Commissioner must apply before sending you a notice of assessment or relying on section 108(2), 108AB(2), or 108A(3). The High Court can make an order or decline it. The Commissioner can also apply to the High Court to send a challenge notice after 4 years if something unexpected happens and they apply within 4 years, as stated in section 89P(1). The High Court can make an order or decline it. An exceptional circumstance is something beyond the Commissioner's control that stops them from rejecting your adjustment. The High Court's decision is final. You should understand what an exceptional circumstance is. It is an event that provides a reasonable reason for not rejecting your adjustment.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM353304.

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Part 4ADisputes procedures
Notices of proposed adjustment

89LApplication to High Court

  1. The Commissioner may apply to the High Court for an order allowing the Commissioner to issue a notice rejecting an adjustment proposed by a taxpayer that the Commissioner has accepted, or is deemed to have accepted, if—

  2. the Commissioner considers that an exceptional circumstance applies or has prevented the Commissioner from rejecting the adjustment within the response period; and
    1. the Commissioner applies—
      1. before the Commissioner issues a notice of assessment including the adjustment; or
        1. relying on section 108(2), 108AB(2), or 108A(3).

        2. The Commissioner may apply to the High Court for an order allowing the Commissioner to issue a challenge notice past the 4 years provided in section 89P(1) if—

        3. the Commissioner considers that an exceptional circumstance applies or has prevented the Commissioner from issuing the challenge notice within the 4 years; and
          1. the Commissioner applies within the 4 years.

            1. The High Court may—

            2. make an order for the purposes of subsection (1) on such terms as the court deems fit; or
              1. decline to make an order.

                1. The High Court may—

                2. make an order for the purposes of subsection (1B) on such terms as the court deems fit; or
                  1. decline to make an order.

                    1. For the purposes of subsection (1) or (1B), an exceptional circumstance—

                    2. is an event or circumstance beyond the control of the Commissioner or an officer of the department that provides the Commissioner with a reasonable justification for not rejecting an adjustment proposed by a disputant within the response period.

                        Notes
                        • Section 89L: inserted, on , by section 11 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
                        • Section 89L(1)(b)(ii): amended, on , by section 199 of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
                        • Section 89L(1B): inserted, on (applying for a dispute initiated by a taxpayer issuing a notice of proposed adjustment after 29 August 2011), by section 171(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
                        • Section 89L(2B): inserted, on (applying for a dispute initiated by a taxpayer issuing a notice of proposed adjustment after 29 August 2011), by section 171(2) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
                        • Section 89L(3): amended, on (applying for a dispute initiated by a taxpayer issuing a notice of proposed adjustment after 29 August 2011), by section 171(3) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
                        • Section 89L(3)(b): repealed, on , by section 171(4) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).