138BWhen disputant entitled to challenge assessment

1. A disputant is entitled to challenge an assessment by commencing proceedings in a hearing authority if—

2. the assessment includes an adjustment proposed by the Commissioner which the disputant or their look-through company has rejected within the applicable response period; and
3. where the assessment is an amended assessment, an adjustment proposed by the Commissioner that is included in the assessment—
   1. imposes a fresh liability (being a liability that was not included in an earlier assessment) in respect of a particular; or
   2. increases an existing liability (being a liability that was included in an earlier assessment but to a lesser extent) in respect of a particular; and
4. the disputant files the proceedings, in accordance with the Taxation Review Authority Regulations 1994 (or any regulations made in substitution for those regulations) or the High Court Rules 2016, within the response period following the issue of the relevant notice of assessment.

5. A disputant is entitled to challenge an assessment by commencing proceedings in a hearing authority if—

6. the assessment was the subject of an adjustment proposed by the disputant which the Commissioner has rejected by notice within the applicable response period; and
7. the disputant is subsequently issued with an amended assessment; and
8. the disputant files the proceedings, in accordance with the Taxation Review Authority Regulations 1994 (or any regulations made in substitution for those regulations) or the High Court Rules 2016, within the response period following the issue of the amended notice of assessment.

9. Subject to subsection (4), a disputant is entitled to challenge an assessment by commencing proceedings in a hearing authority if—

10. the assessment was the subject of an adjustment proposed by the disputant which the Commissioner has rejected by notice within the applicable response period; and
11. the Commissioner has issued a challenge notice to the disputant; and
12. the disputant files the proceedings, in accordance with the Taxation Review Authorities Regulations 1998 (or any regulations made in substitution for those regulations) or the High Court Rules 2016 within 2 months.

13. Despite subsection (3), the disputant is entitled to challenge an assessment by commencing proceedings in a hearing authority if—

14. the assessment was the subject of an adjustment (the adjustment) notified to the Commissioner specifying the adjustment and sufficient details to identify how the adjustment meets paragraph (c); and
15. the Commissioner has issued a challenge notice to the disputant; and
16. the adjustment—
    1. is in relation to a matter for which the material facts and relevant law are identical to those for another assessment for the taxpayer, for another period, that is at the time of proposing the adjustment the subject of court proceedings; or
    2. corrects a tax position taken by the taxpayer or an associated person as a consequence or result of an incorrect tax position taken by another taxpayer and, at the time of proposing the adjustment, the incorrect tax position taken by the other taxpayer is the subject of, or was the subject of, court proceedings; and
17. the disputant files the proceedings, in accordance with the Taxation Review Authorities Regulations 1998 (or any regulations made in substitution for those regulations) or the High Court Rules 2016 within 2 months.