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Tax Administration Act 1994

Objections - Case stated

137: Test case procedure

You could also call this:

"What happens in a test case when you disagree with a tax decision"

Illustration for Tax Administration Act 1994

You can be part of a test case if you object to a tax decision. The Commissioner might choose your case as a test case if it will help decide other similar cases. You will be told if your case is chosen as a test case. If your case is a test case, the Commissioner can send it to the High Court without your consent. The Commissioner can also stop your case from being heard while the test case is being decided. You can ask for your case to be heard anyway. The Commissioner can send you a notice to stop your case from being heard. You have 14 days to respond to this notice. If you do not respond, the Commissioner can ask the High Court to stop your case. The High Court can make a decision about your case at any time. If the test case is decided, your case will start again. Time limits for your case will not apply while it is stopped. The Commissioner can send notices to you or your solicitor. Notices can be sent to the address you provided or to a solicitor who can accept them for you, as stated in section 14G(c). You can ask the High Court to start your case again at any time. The Commissioner or you can ask the High Court to make a decision about your case. Time limits for your case will apply again if the High Court makes a decision or if the test case is decided.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM355912.

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Part 8Objections
Case stated

137Test case procedure

  1. Where—

  2. an objector has given notice under section 134 or section 136(2)(a) or section 136(3)(a) requiring or seeking that an objection be heard and determined by a Taxation Review Authority, or that a case be stated for the opinion of the High Court in respect of an objection; and
    1. the Commissioner considers that determination of the objection, whether on a question of law only or on both a question of fact and a question of law, is likely to be determinative of all or a substantial number of the issues involved in 1 or more other objections,—
        1. the Commissioner may designate that objection as a test case, and shall notify the objector accordingly.

      1. The Commissioner may, notwithstanding section 136(4), state a test case for the opinion of the High Court without need for—

      2. the objector's consent; or
        1. the leave of the High Court,—
            1. and subsections (5) to (19) of section 136 shall apply in respect of any test case as if the Commissioner had determined to state the case under subsection (2)(b) of that section.

          1. The Commissioner may in relation to any objection, at any time after the objection has been lodged and before it has been determined by a Taxation Review Authority or the High Court, give notice to the objector that the objection will be stayed by reason of the taking of a test case on a similar objection or challenge before the High Court, if the Commissioner considers that the test case is likely to be determinative of all or a substantial number of the issues in the objection proposed to be stayed.

          2. Subject to subsection (9), the notice by the Commissioner referred to in subsection (3) shall have the effect of staying the objection pending the determination of the test case.

          3. Upon receipt by an objector of the notice by the Commissioner referred to in subsection (3), the objector may notify the Commissioner that the objector requires that the objection be heard and determined notwithstanding the stating of a test case for the opinion of the High Court. That notice shall be given at such address as may be specified by the Commissioner in the notice given under subsection (3).

          4. Within 14 days after the receipt by the Commissioner of the notice from the objector referred to in subsection (5), the Commissioner may apply to the High Court by originating application for an order that the objection be stayed pending the determination of the test case or the further order of the court.

          5. An application by the Commissioner under subsection (6) shall be made on notice to the objector whose objection the Commissioner seeks to have stayed.

          6. Where an objection has been stayed, the objector, the Commissioner, or both of them, may at any time apply to the High Court for an order that the objection cease to be stayed.

          7. A stay under subsection (4) shall lapse on the expiry of 14 days following the day on which occurs any of the following:

          8. the expiry of the 14-day period specified in subsection (6), where the objector has issued a notice under subsection (5) and the Commissioner has not within the 14-day period made an application under subsection (6):
            1. the making by the High Court of an order dismissing an application by the Commissioner under subsection (6):
              1. the making by the High Court, on an application under subsection (8), of an order that the objection cease to be stayed:
                1. the determination of the test case which caused the objection to be stayed by the expiration of all rights of appeal.

                  1. For the purposes of this Act,—

                  2. for so long as an objection is stayed under this section, any time limits or periods specified in or under this Act (other than in subsections (5) to (9)) in relation to proceedings on the objection shall not apply:
                    1. where the stay of an objection lapses under subsection (9), any time limits or periods so specified shall be treated as if they were extended by the period commencing with the date of the Commissioner's notice under subsection (3), and ending with the day on which the stay lapses under subsection (9).

                      1. The Commissioner may serve a notice under subsections (3) and (7) by formally notifying either the objector or a solicitor who is authorised to accept service on their behalf at the contact address referred to in section 14G(c) or by effective delivery to an address supplied by the objector.

                      Compare
                      • 1976 No 65 s 33A
                      Notes
                      • Section 137(1)(a): amended, on , by section 165(1) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
                      • Section 137(3): 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 137(3): amended, on , by section 41 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
                      • Section 137(4): 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 137(5): 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 137(9)(a): 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 137(10)(b): 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 137(11): replaced, on , by section 165(2) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).