IF YOU DISAGREE WITH AN IRD ASSESSMENT

 

 

 

If you believe that there has been a simple mistake (either by the  Inland Revenue Department or yourself) you should point it out to IRD to give them the opportunity to fix it. 

If however you disagree with an adjustment that IRD have made , and you follow the above procedure and IRD donít accept that the adjustment they have made is wrong, you must use the disputes resolution process to change the assessment.   This involves the following steps:

 

YOU SEND TO IRD AN IR 770 NOTICE OF PROPOSED ADJUSTMENT 

You have two moths starting from the date of the IRD Assessment to send in an IR 770.  This form must include:

Details of the items you want changed

The tax laws that support the adjustment you are proposing

The outline of the facts giving rise to the changes

The propositions of law relied on (these are statements about the application of the law).

IF IRD accept all your adjustments IRD will issue a new assessment to agree with your figures, and the matter ends there.   If IRD disagree with any part of the notice the process continues as follows.

 

IRD SEND TO YOU A NOTICE OF RESPONSE

IRD have to respond within two months of the date you issued your IR 770 and give reasons why they reject your proposed adjustment, and specify how the adjustment could be altered so agreement is possible.   If you accept the IRD notice the original adjustment stands and the matter ends there.   If you disagree with the IRD notice the process continues as follows. 

 

YOU REJECT THE IRD NOTICE OF RESPONSE

You must write and tell the IRD that you reject their Notice of Response within two months of the date IRD issued it.    

 

A CONFERENCE BETWEEN YOU AND IRD

You and IRD get together to identify and clarify the facts and issues, and to allow any disputed facts to be resolved.   This can be done over the phone or in person.   If an agreement is reached at the conference your assessment will be adjusted to reach that agreement.   If no agreement is reached the process continues as follows. 

 

IRD SEND A DISCLOSURE NOTICE

The Disclosure Notice requires you to write a Statement of Position if you wish to continue the dispute. 

 

YOU SEND A STATEMENT OF POSITION

The Statement of Position must outline the facts, evidence and propositions of law you relying on, and the issues arising from the facts and evidence.   This statement must be sent within two months of when IRD issued the Disclosure Notice. Otherwise IRD are deemed to have accepted your Notice of Response. 

If  the case goes further, you cannot introduce any evidence, facts, issues or arguments that werenít in you Statement of Position, unless by judicial discretion. 

 

IRD SEND YOU A STATEMENT OF POSITION

IRD have two months to issue their Statement of Position, and are not able to introduce any new material thereafter unless by judicial discretion. 

 

THE MATTER GOES TO ADJUDICATION

The Adjudicator is an independent expert within IRD who will take a fresh look at how the law applies to the facts of the case.   The Adjudicator can only consider the facts, evidence, legal principles, and issues raised in each of the Statements of Position. 

The Adjudicator will reach a decision and send a written copy to you and the IRD staff member involved

If the Adjudicator decides in your favour, IRD will reassess the return in line with your figures, and the matter ends there

 If the Adjudicator decides in IRD favour, the assessment will stand.   If you accept this decision the matters ends there.   If you are dissatisfied with the decision the process continues as follows

 

YOU FILE PROCEEDINGS WITH THE TAXATION REVIEW AUTHORITY OR THE HIGH COURT

You make take your case to the Taxation Review Authority or the High Court.   You have two months to do this from the date of the letter advising of the Adjudicatorís decision.

    

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