Tax Administration Act 1994

Challenges

138R: Stay of proceedings for similar cases

You could also call this:

"The Commissioner can pause your case if a similar one is already in court."

Illustration for Tax Administration Act 1994

The Commissioner can stop a challenge from going ahead if a similar case is already being heard by the High Court. You will get a notice if this happens to your challenge. The Commissioner can only do this if the similar case will likely decide the issues in your challenge and your challenge has not been heard yet. If you get a notice, you can ask for your challenge to be heard anyway. The Commissioner can then ask the High Court to decide if your challenge should be stopped. If your challenge is stopped, you or the Commissioner can ask the High Court to start it again. A stop on your challenge will end after 14 days if the Commissioner does not ask the High Court to keep it stopped. It will also end if the High Court says no to the Commissioner's request or if you ask the High Court to start your challenge again. The stop will end when the similar case is finally decided. While your challenge is stopped, time limits for your challenge do not apply. If the stop ends, the time limits will be extended by the time your challenge was stopped. The Commissioner can send you notices by post or email to the address you provided, as stated in section 14G(c).

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM356106.


Previous

138Q: Challenges designated as test cases, or

"The Commissioner picks a challenge to help decide others like it."


Next

138S: Challenge to be heard before Taxation Review Authority, or

"Challenging a tax decision in court"

Part 8AChallenges

138RStay of proceedings for similar cases

  1. The Commissioner may stay proceedings by issuing a notice notifying a disputant that a challenge is to be stayed because a test case on a similar challenge or objection is to be heard by the High Court.

  2. The Commissioner may issue a notice staying proceedings under subsection (1) only if—

  3. the Commissioner considers that the test case is likely to be determinative of all or a substantial number of the issues in the challenge proposed to be stayed; and
    1. the challenge proposed to be stayed has not been determined by a hearing authority.
      1. When a disputant receives a notice staying proceedings, the disputant may issue a notice requiring that there be no stay of proceedings that notifies the Commissioner that the disputant requires the challenge to be heard even though a test case is to be heard.

      2. Within 14 days after the Commissioner receives a notice requiring that there be no stay of proceedings, the Commissioner may apply to the High Court for an order that the challenge be stayed pending the determination of the test case or the further order of the court.

      3. If a challenge is stayed, the disputant or the Commissioner may apply to the High Court for an order that the challenge cease to be stayed.

      4. A stay under subsection (1) lapses on the expiry of 14 days following the day on which any of the following occurs:

      5. the expiry of the 14-day period specified in subsection (4), if the disputant has issued a notice requiring there to be no stay of proceedings and the Commissioner has not within the 14-day period made an application under subsection (4); or
        1. the making by the High Court of an order dismissing an application by the Commissioner under subsection (4); or
          1. the making by the High Court, on an application under subsection (5), of an order that the challenge cease to be stayed; or
            1. the determination of the test case which caused the challenge to be stayed by the expiration of all rights of appeal.
              1. For so long as a challenge is stayed,—

              2. any time limits or periods specified in or under this Act (other than in this section) in relation to the challenge are not to apply; and
                1. where the stay of a challenge lapses, any time limits or periods so specified are to be treated as if they were extended by the period commencing with the date of the notice staying proceedings, and ending with the day on which the stay lapses.
                  1. The Commissioner may give notices required by this section by formally notifying either the disputant 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 disputant.

                  Notes
                  • Section 138R: inserted, on , by section 42 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
                  • Section 138R(8): replaced, on , by section 167 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).