Date of self-assessment

Section 92 of the Tax Administration Act 1994

Introduction

An amendment ensures that the date of a taxpayer's self-assessment is the date the return is received at an Inland Revenue office.

Background

Following the introduction of self-assessment into tax legislation in 2001, taxpayers are required to assess their taxable income and income tax liability. Self-assessment also includes an assessment of any net loss, terminal tax or refund due. Provision was made for taxpayers to be able to fix a date that would create certainty as to the date of their self-assessment. The date needed to be within a time period prescribed by the Commissioner of Inland Revenue. This period would be determined by reference to the last date on which a taxpayer is required to furnish a return of income.

In practice, however, the date of notice of assessment has been treated as the date of receipt of the return by Inland Revenue, and taxpayers are being advised of the date.

Therefore sections 92(2) and 92(3) of the Tax Administration Act were redundant.

Key features

Section 92(2) has been replaced with a new section that provides that the date of assessment is the date on which the taxpayer's return of income is received at an Inland Revenue office. Section 92(3) has been repealed.

In practice, this means that on the date of receipt of the taxpayer's assessment, the return is datestamped - electronically or manually - and it is this date that is entered into Inland Revenue's computer system. Once this date is entered into the system, a return acknowledgement form is generated and sent to the taxpayer. The taxpayer will therefore have a record of the date of receipt, and the date of self-assessment.

Application date

The amendment applies from the 2004-05 income year.