Operational Guidelines for Section 6A Settlements in New Zealand

• These guidelines provide principles and processes for settling disputes in New Zealand’s tax administration.
• The guidelines apply to settlements at any stage of the disputes process and also to cases in litigation.
• The guidelines are structured into different sections, including a summary of key features of section 6A settlements, when a settlement decision is required, who can exercise the section 6A delegation, and the general process for considering a settlement.
• The guidelines emphasize the importance of balancing the duty to collect the highest net revenue and protect the integrity of the tax system when considering settlement.
• Settlement decisions should be made by considering six factors and ensuring consistency with the dual duties of collecting revenue and protecting the tax system.
• The impact of settlement on voluntary compliance is a crucial consideration.
• A rigid approach to settlement can potentially undermine compliance.

Source: taxtechnical.ird.govt.nz

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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