Inland Revenue makes every effort to apply the tax laws fairly and correctly. However, there may come a time when you disagree with how they have assessed your tax liability.

If there's been a simple mistake (on your part or theirs) that has caused them to adjust your return, simply point it out to them, give them any missing information (if necessary) and they will fix it.

It's important that you understand exactly what any adjustments to your assessment are for. Ask for an explanation straightaway in any of these situations:

If you disagree with an adjustment made to your return, or the IRD does not accept that their adjustment is wrong, you must use the disputes resolution process to change 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 you and Inland Revenue.

This leaflet gives you a quick summary of the steps and time limits in the disputes resolution process.

These steps start if the IRD send you an assessment that you disagree with, and after you have discussed it with them, they don't accept that their assessment is wrong.

1. You send the IRD a Notice of proposed adjustment IR 770 NOPA

You have two months starting from the date of the IRD assessment to issue a NOPA (for GST you must send the NOPA within two months from the day after your GST return is due), and you must use form IR 770. You can request an IR 770 by phoning INFOexpress - see "More information" at the end of this pamphlet. This form must include:

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

2. The IRD sends you a Notice of Response

The IRD have two months from the date you issued your NOPA to do this. Their notice will give reasons why they reject your proposed adjustment, and specify how the adjustment could be altered so agreement is possible.

If you accept their notice the original adjustment stands and the matter ends there. If you disagree with their notice the process continues as follows.

3. You reject their Notice of Response

If you disagree with their Notice of Response you must write and tell them within two months of the date they issued it. For an example of when a response period starts and ends, see their booklet Disputing an assessment (IR 776).

4. A conference between you and Inland Revenue

You and Inland Revenue 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 agreement is reached at the conference your assessment will be adjusted to reflect that agreement. If an agreement can't be reached the process continues as follows.

5. The IRD send you a Disclosure Notice

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

6. You send the IRD a Statement of Position

The Satement 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 the Disclosure Notice was issued, otherwise you're deemed to have accepted the Notice of Response.

If the case goes further, 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.

7. The IRD send you a Statement of Position

Once you issue your Statement of Position, the IRD has two months to issue their Statement of Position. If the case goes further, the evidence exclusion rule says that the IRD can't introduce any new material that wasn't in their Statement of Position.

In most cases, if no agreement is reached by this stage the case will go to Inland Revenue's Adjudication Unit for consideration, regardless of the issue or amount of tax involved.

8. 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 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 Inland Revenue staff member involved.

9. 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.

Both you and Inland Revenue must 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 the IRD 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.

The IRD has no discretion to accept a late Statement of Position.

Once you've written your NOPA, rejection of the Commissioner's Notice of Response, or Statement of Position, send it to the IRD.

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.

You are advised to 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, Inland Revenue staff will not fill in or draft any notices or forms required. However, they may assist by explaining such things as the required forms and time limits, or by referring you to their booklets on the disputes process.

This pamphlet is a summary of the disputes process - it is not a comprehensive description of your obligations. For full details see the IRD booklet Disputing an assessment (IR 776). You can order this booklet and the IR 770 by phoning INFOexpress on 0800 257 773. Please have your IRD number handy.