- 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.
