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30 Aug 2007
Appeal Status
Not appealed

Disputant's Claim Struck Out

2007 case note - objections procedure applies to assessments issued after 1 Apr 1995 and before 1 Oct 1996. The TRA has no jurisdiction to award costs or damages.

Decision Number 13/2007


Part VIII of the Tax Administration Act 1994 ("TAA"), the objections procedure, applies to assessments issued after 1 April 1995 and before 1 October 1996. The TRA has no jurisdiction to award costs or damages.


The Commissioner had originally assessed the taxpayer for the income tax years dated 31 March 1990 to 31 March 1996. The assessments were issued on the basis that the Commissioner considered certain transactions reflected in the taxpayer's income tax returns were a sham.

Notices of Objection were received from the taxpayer in relation to those assessments during September and November 1996. The Commissioner did not respond to the Notices of Objection.

The taxpayer issued a Notice of Proposed Adjustment ("NOPA") to the Commissioner on 30 August 2004 in relation to the Commissioner's assessments and the "refusal of the Commissioner" to deal with the Notices of Objection.

The Commissioner did not issue a Notice of Response on the basis that the assessment periods fell outside the current disputes resolution regime and were subject to the old "objections" procedure as the assessments were issued between the period 1 April 1995 and 1 October 1996. On 3 November 2005 the Commissioner decided to reassess the taxpayer on the basis of the returns originally filed, effectively allowing the taxpayer's original objection.

Subsequently, the taxpayer filed a Notice of Claim in the Taxation Review Authority ("TRA"). The taxpayer sought costs and damages against the Commissioner for inordinate delay, breach of section 27 of the Bill of Rights Act 1990, breach of section 6 of the Tax Administration Act 1994, vendetta, lack of fairness, unlawfulness, abuse of legal process, an alleged fraud on the taxpayer, lack of evidence and denial of natural justice to the taxpayer. The Commissioner sought to strike out the taxpayer's claim.


The TRA confirmed that its jurisdiction is confined to dealing with the correctness of tax assessments, in this case the assessments for the 1990 to 1996 income tax years. The Commissioner had allowed the objections, albeit nine years after the original Notices of Objection were received, and reassessed the taxpayer to its "as returned" position. Accordingly, the TRA had no jurisdiction to take matters further. Given the TRA's decision in relation to its own jurisdiction there were no live issues to be dealt with and the TRA granted the Commissioner's application to strike out the taxpayer's Notice of Claim.

In terms of compensation sought by the taxpayer, the TRA has no jurisdiction to award costs or damages and even if it could, the TRA stated there was no merit in any suggestion that the taxpayer was entitled to damages.

The challenge procedure did not apply to the assessments.

Tax Administration Act 1994