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Tax Administration Act 1994

Disputes procedures - Disclosure notices

89P: Challenge notice for taxpayer-initiated disputes

You could also call this:

"What to do if you disagree with a tax decision and get a challenge notice"

Illustration for Tax Administration Act 1994

You get a challenge notice from the Commissioner if you disagree with a tax decision. The Commissioner must send you this notice within 4 years of you telling them you disagree, unless certain rules apply, like section 89L(2B)(a) or section 89J(2). The Commissioner does not have to send you a challenge notice if your dispute has ended. You might not get a challenge notice if the Commissioner has already sent you an updated tax bill that includes some of the changes you wanted, and you can still dispute it under section 138B(2). The Commissioner usually sends a challenge notice after they tell you their position on the matter, unless certain exceptions apply, like those in section 89N(1)(c)(i) to (ix). The challenge notice tells you that the Commissioner will not change your tax bill as you requested, and that you can proceed with your dispute. It says the Commissioner will not issue an updated tax bill that includes the changes you proposed, and that you can still challenge the decision.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM3997033.

Topics:
Money and consumer rights > Taxes
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Part 4ADisputes procedures
Disclosure notices

89PChallenge notice for taxpayer-initiated disputes

  1. The Commissioner must issue a challenge notice to a disputant within 4 years of the disputant issuing a notice of proposed adjustment, unless—

  2. section 89L(2B)(a) applies:
    1. section 89J(2) applies.

      1. Despite subsection (1), the Commissioner is not required to issue a challenge notice—

      2. to the extent to which the dispute has ended:
        1. when—
          1. the Commissioner has issued an amended assessment that reflects some but not all of the adjustments proposed by the disputant; and
            1. the disputant has a right of challenge under section 138B(2).

            2. A challenge notice may not be issued before the Commissioner issues a statement of position, unless 1 or more of section 89N(1)(c)(i) to (ix) apply.

            3. A challenge notice must state that—

            4. the Commissioner will not be issuing an amended assessment that includes or takes into account the adjustment proposed by the disputant; and
              1. a challenge may proceed.

                Notes
                • Section 89P: inserted, on (applying for a dispute initiated by a taxpayer issuing a notice of proposed adjustment after 29 August 2011), by section 174(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
                • Section 89P(2): replaced, on , by section 200 of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).