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Tax Administration Act 1994

Assessments

108B: Extension of time bars

You could also call this:

"Delaying time limits for tax assessments"

Illustration for Tax Administration Act 1994

You can delay a time bar for 12 months if you and the Commissioner agree. You must record this agreement in a document and sign it before a certain time. The time bar is delayed for a further 6 months if you give the Commissioner notice. You can delay time bars that happen after a certain period under sections like section 107A and section 108. These time bars happen after 4 years from when your tax assessment was made. There are other time bars that can be delayed, like those under section 108A(1) and section 108AB. A waiver does not affect the time bar if the Commissioner finds something new. You must sign and deliver the agreement before the end of a 4-year period. You must give the Commissioner notice before the end of the 12-month period.

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Part 6Assessments

108BExtension of time bars

  1. The application of a time bar that is referred to in subsection (3) may be delayed for a taxpayer by a waiver—

  2. for 12 months from the time at which the time bar would otherwise apply if—
    1. the taxpayer and the Commissioner agree to the waiver; and
      1. their agreement is recorded in a document; and
      2. for a further 6 months from the end of the 12-month period referred to in paragraph (a), by notice given by the taxpayer.

        1. A waiver under subsection (1) does not affect the application of a time bar to an assessment of the taxpayer by the Commissioner on a ground that was not identified and known to the taxpayer and the Commissioner before the time at which the time bar would have applied but for subsection (1).

        2. An agreement under subsection (1)(a) must be in the prescribed form and must be signed and delivered to the Commissioner before the expiry of the relevant 4-year period.

        3. A notice under subsection (1)(b) must be given to the Commissioner before the expiry of the 12-month period referred to in subsection (1)(a).

        4. Subsection (1) applies to—

        5. the time bar occurring under section 25 of the Income Tax Act 1976 after the period of 4 years from the end of the year in which the notice of original assessment was issued; and
          1. the time bar occurring under section 107A after the period of 4 years from the end of the year in which the notice of original assessment was issued; and
            1. the time bar occurring under section 108 (as that section applied before it was amended by section 29 of the Tax Administration Amendment Act (No 2) 1996) after the period of 4 years from the end of the year in which the notice of original assessment was issued; and
              1. the time bar occurring under section 108(1), (1B), and (1C) (as amended by section 29 of the Tax Administration Amendment Act (No 2) 1996) after the period of 4 years from the end of the tax year in which the taxpayer provides a return of income; and
                1. the time bar occurring under the former section 31 of the Goods and Services Tax Act 1985 (as that section applied on 30 September 1996) after the period of 4 years from the end of the month in which the GST return was provided or, as the case may be, the assessment made; and
                  1. the time bar occurring under section 108A(1) after the period of 4 years from the end of the GST return period in which the GST tax return was provided; and
                    1. the time bar occurring under section 108AB after the period of 4 years from the date on which the taxpayer provided the employment income information.

                        Notes
                        • Section 108B: replaced, on (applying on and after 1 October 1996, but does not apply to a waiver made under this section if the waiver was signed and delivered to the Commissioner before 17 November 1998), by section 101(1) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
                        • Section 108B(1): replaced, on (applying to disputes that are commenced under Part 4A of this Act on or after 1 April 2005), by section 116(1) of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).
                        • Section 108B(1)(a): replaced, on , by section 159(1) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
                        • Section 108B(1)(a): amended, on , by section 73(1) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
                        • Section 108B(1)(b): amended, on , by section 159(2) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
                        • Section 108B(1B): inserted, on (applying to disputes that are commenced under Part 4A of this Act on or after 1 April 2005), by section 116(1) of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).
                        • Section 108B(2): amended, on , by section 194(1) of the Taxation (Savings Investment and Miscellaneous Provisions) Act 2006 (2006 No 81).
                        • Section 108B(2B): inserted, on , by section 194(2) of the Taxation (Savings Investment and Miscellaneous Provisions) Act 2006 (2006 No 81).
                        • Section 108B(3)(d): amended, on , by section 73(2) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
                        • Section 108B(3)(d): 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 108B(3)(f): amended, on , by section 203(1) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
                        • Section 108B(3)(f): amended, on (applying for GST return periods beginning on or after 1 April 2005), by section 116(2) of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).
                        • Section 108B(3)(fb): inserted, on , by section 203(2) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
                        • Section 108B(3)(g): repealed, on (applying for GST return periods beginning on or after 1 April 2005), by section 116(3) of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).