High Court dismisses Commissioner's application for an extension of time to issue challenge notice
The Commissioner applied and was granted leave to commence a proceeding under s 89(1 B) of the T AA by way of originating application. She sought an order, in accordance with s 89L(2B), for an extension of time for issuing a challenge notice to Mr Parore.
The Commissioner sought an extension of time because the civil tax disputes procedure she instituted was deferred in June 2018 while criminal proceedings against Mr Parore ran their course. The Commissioner submitted that this was an "exceptional circumstance" under s 89L(3) which prevented her from issuing a challenge notice to Mr Parore within the four-year time limit in s 89P.
Harvey J declined the application, on the basis that it would be inappropriate for the Commissioner's own prosecutorial misconduct to be accepted as an "exceptional circumstance" to justify an extension of time.
Tax Administration Act 1994, ss 89 H, 89L(1B), 89L(2B), 89L(3), 89P High Court Rules 2016, r 19.5
Commissioner of Inland Revenue v Parore  NZHC 488