NZ Inland Revenue Publishes Dispute Resolution Discussion Paper

by Mary Swire, Tax-News.com, Hong Kong

03 July 2003

The government of New Zealand has published a consultation paper in which it discusses ways that dispute resolution between the Inland Revenue and taxpayers can be made more efficient.

"No matter how good a tax system is, it is inevitable that there will be occasional disputes between taxpayers and the tax administration," Finance Minister Michael Cullen observed, adding that the particular focus of the exercise is to resolve cases before they reach the law courts.

"It sets out a series of proposals for further improving the process by ensuring that each step is completed according to the policy intent of the law, necessary documents are drafted to contain relevant information in an efficient way, and legislated time frames are consistent with today’s business environment," the Fiance Minister explained.

However, Dr Cullen stressed that the discussion paper was not an admission that the current system was failing. "The current disputes process, introduced in 1996, appears to be meeting its objectives – to improve the quality and timeliness of Inland Revenue assessments and to reduce the likelihood and grounds for subsequent litigation," the minister observed, continuing: "The number of audited cases that are disputed is decreasing, as are the cases that are being litigated: Last year fewer than 1 per cent of cases audited by Inland Revenue gave rise to a dispute; down from 2 per cent in 1997."

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