Disputing an assessment
The disputes resolution process
If you disagree with an assessment or adjustment made either by yourself or by Inland Revenue, you may use the disputes resolution process to appeal the assessment.
This process is designed to resolve disagreements quickly by early identification of all issues, full disclosure of the facts and evidence, and consultation between us.
| Step | Action | What happens at this time |
|---|---|---|
| 1 | You send us a notice of proposed adjustment (NOPA) |
You must send the NOPA within four months from the date your GST return is received by us (this date is on the acknowledgement form we send you after processing your return). Or if you are filing a NOPA due to an assessment we have sent to you, then this must also be filed within four months of the date on this assessment. You must use our Notice of proposed adjustment (IR770) form. This form must include:
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Outcome
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If we accept all your adjustments we'll issue a new assessment in line with your figures, and the matter ends there. If we disagree with any part of your notice the process continues with step 2. |
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| 2 | We send you a notice of response | We have two months from the date you issued your NOPA to do this. Our notice will give reasons why we reject your proposed adjustment, and specify how the adjustment could be altered so agreement is possible. |
| Outcome |
If you accept our notice the original adjustment stands and the matter ends there. If you disagree with our notice you must write and tell us within two months of the date we issued it. For an example of when a response period starts and ends, see our booklet Disputing an assessment (IR776). The process continues with step 3. |
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| 3 | A conference between us both | We 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. |
| Outcome |
If we reach an agreement at the conference your assessment will be adjusted to reflect that agreement. If we can't reach an agreement the process continues with step 4. |
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| 4 | We send you a disclosure notice | A disclosure notice requires you to write a statement of position if you wish to continue with the dispute. |
| 5 | You send us a statement of position |
The statement of position must outline the facts, evidence and propositions of law you are relying on, and the issues arising from the facts and evidence. This statement must be sent within two months of when we issued the disclosure notice, otherwise you're deemed to have accepted our notice of response. If the dispute goes to a hearing authority, you cannot introduce any evidence, facts, issues or arguments that weren't in your statement of position. This is called the evidence exclusion rule. Judicial discretion may allow previously undisclosed material to be admitted in very limited circumstances. |
| 6 | We send you a statement of position |
Once you issue your statement of position, we have two months to issue our statement of position. If the dispute goes to a hearing authority, the evidence exclusion rule says that we can't introduce any new material that wasn't in our statement of position unless you agree to us adding further information. In most cases, if no agreement is reached by this stage the case will go to our Adjudication Unit for consideration, regardless of the issue or amount of tax involved. |
| 7 | The matter goes to adjudication |
The adjudicator is an independent expert within Inland Revenue who will take a fresh look at how the law applies to the facts of the case. The adjudicator will 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 Inland Revenue staff member involved.
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| 8 | You file proceedings with the Taxation Review Authority or the High Court | You may 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 adjudicator's decision or from the issue date of an assessment, or amended assessment, based on the adjudicator's decision. |
Exceptional circumstances
We must both meet the time limits throughout the disputes resolution process.
If you do not take the required action within the time limit given you are deemed to accept our position unless exceptional circumstances apply. Exceptional circumstances are events that are entirely outside the control of you or your agent, and that could not have been reasonably anticipated.
We have no discretion to accept a late statement of position.
Make sure we receive all your correspondence
Once you've written your NOPA, rejection of the Commissioner's notice of response, or statement of position, please send it to us.
If the dispute is the result of an audit or investigation you should address all mail to the person conducting the audit. Otherwise, send your correspondence to your local Inland Revenue office.
Professional assistance
We recommend that you get independent advice from an accountant or other professional tax advisor if you wish to proceed with your dispute. This is especially important if complex issues are involved.
Because of the nature of the disputes resolution process, we will not fill in or draft any notices or forms required. However, we may assist by explaining such things as the required forms and time limits, or by referring you to our booklets on the disputes process.
Date published: 09 Dec 2008
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