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Tax Administration Act 1994

Disputes procedures - Disclosure notices

89N: Completing the disputes process

You could also call this:

"What happens when you disagree with the tax office about your tax"

Illustration for Tax Administration Act 1994

You are in a dispute with the Commissioner about your tax. A notice of proposed adjustment has been issued and you have not agreed on the outcome. The Commissioner cannot change your tax assessment until you or the Commissioner accept a notice or the Commissioner considers your statement. If the Commissioner needs more time, they can ask the High Court for an extension. The Commissioner must make this request before they would normally change your tax assessment. If the Commissioner asks for an extension, they must change your tax assessment by a certain date. You can find more information about test cases in section 89O and about changing assessments in section 113.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM353314.

Topics:
Money and consumer rights > Taxes
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89M: Disclosure notices, or

"What happens when you get a 'Disclosure notice' about a tax adjustment"

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89O: Test cases, or

"Pausing a tax dispute to wait for a similar test case result"

Part 4ADisputes procedures
Disclosure notices

89NCompleting the disputes process

  1. This section applies if—

  2. a notice of proposed adjustment has been issued; and
    1. the dispute has not been resolved by agreement between the Commissioner and the disputant; and
      1. none of the following applies:
        1. the Commissioner notifies the disputant that, in the Commissioner's opinion, the disputant in the course of the dispute has committed an offence under an Inland Revenue Act that has had an effect of delaying the completion of the disputes process:
          1. the Commissioner has reasonable grounds to believe that the disputant may take steps in relation to the existence or location of the disputant's assets to avoid or delay the collection of tax from the disputant:
            1. the Commissioner has reasonable grounds to believe that a person who is an associated person of the disputant may take steps in relation to the existence or location of the disputant's assets to avoid or delay the collection of tax from the disputant:
              1. the disputant has begun judicial review proceedings in relation to the dispute:
                1. a person who is an associated person of the disputant and is involved in another dispute with the Commissioner involving similar issues has begun judicial review proceedings in relation to the other dispute:
                  1. during the disputes process, the disputant receives from the Commissioner a requirement under a statute to produce information relating to the dispute and fails to comply with the requirement within a period that is specified in the requirement:
                      1. the disputant and the Commissioner agree, recording their agreement in a document, that they have reached a position in which the dispute would be resolved more efficiently by being submitted to the court or Taxation Review Authority without completion of the disputes process:
                        1. the disputant and the Commissioner agree, recording their agreement in a document, to suspend the disputes process pending a decision in a test case referred to in section 89O.

                        2. If this section applies, the Commissioner may not amend an assessment under section 113 before one of the following occurs:

                        3. the Commissioner or the disputant accepts a notice of proposed adjustment, notice of response, or statement of position issued by the other:
                          1. the Commissioner considers a statement of position issued by the disputant.

                            1. Despite subsection (2), the Commissioner may apply to the High Court for an order that allows more time for the completion of the disputes process, or for an order that completion of the disputes process is not required.

                            2. The Commissioner must make an application under subsection (3) within the period of time during which the Commissioner would otherwise be required, under the Inland Revenue Acts, to make an amended assessment.

                            3. If the Commissioner makes an application under subsection (3), the Commissioner must make an amended assessment by the last day of the period that—

                            4. begins on the day following the day by which the Commissioner, in the absence of the suspension, would be required under the Inland Revenue Acts to make the amended assessment; and
                              1. contains the total of—
                                1. the number of days between the date on which the Commissioner files the application in the High Court and the earliest date on which the application is decided by the High Court or the application or dispute is resolved:
                                  1. the number of days allowed by an order of a court as a result of the application.

                                  Notes
                                  • Section 89N: inserted, on (applying to disputes that are commenced under Part 4A of the Tax Administration Act 1994 on or after 1 April 2005), by section 103(1) of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).
                                  • Section 89N(1)(c)(iii): replaced, on , by section 645(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
                                  • Section 89N(1)(c)(v): replaced, on , by section 645(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
                                  • Section 89N(1)(c)(vi): amended, on , by section 235(1)(a) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).
                                  • Section 89N(1)(c)(vi): amended, on , by section 235(1)(b) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).
                                  • Section 89N(1)(c)(vii): repealed, on (applying for a dispute or challenge, in relation to which there has been no election into the small claims jurisdiction of a Taxation Review Authority before 29 August 2011), by section 173(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
                                  • Section 89N(1)(c)(viii): amended, on , by section 133(1) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
                                  • Section 89N(1)(c)(ix): replaced, on , by section 53 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
                                  • Section 89N(5): replaced, on , by section 235(2) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).