(August 29, 2015)

On August 25, 2015 Standard Practice Statement ("SPS") 15/01: “Finalising agreements in tax investigations” was published on the website of the Inland Revenue of New Zealand. SPS 15/01 sets out the principles and parameters for finalising agreements in tax investigations by resolving issues that may be in dispute. According to the SPS, "Dispute" in this context includes both a difference of opinion on the application of the law that may occur during the course of an investigation, as well as issues where the formal disputes resolution process contained in Part IV of the Tax Administration Act 1994 ("the TAA") has been initiated.

SPS 15/01 discusses a.o. the following subjects:

• Introduction

• Application

• Summary

• Background

• Standard Practice

• Agreements, whether reached by resolution or settlement, must be made on a principled basis

• Reaching final agreement through resolution

• Fundamentals of resolution

• Penalties, tax in dispute, and use of money interest

• Ability of the taxpayer to pay

• Timing of final agreements 

• Form of agreement

• Adherence to agreement by Commissioner

• Agreement following commencement of disputes process

• Failure to negotiate a final agreement

• Authority to approve final agreements

Click here to be forwarded to SPS 15/01: “Finalising agreements in tax investigations” as published on the website of the Inland Revenue of New Zealand, which will open in a new window.

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