This Act may be cited as the Taxation Review Authorities Amendment Act 1996, and shall be read together with and deemed part of the Taxation Review Authorities Act 1994 (in this Act referred to as the principal Act).

(2)

This Act applies on and after 1 October 1996.

2 Term of office of an Authority

Section 6(4) of the principal Act is amended—

(a)

By inserting in paragraph (a), after the word “objection”, the words “or challenge”:

(b)

By inserting in paragraph (b), after the words “under paragraph (a)”, the words “where the objection giving rise to the Authority’s decision was lodged before 1 October 1996 in accordance with the requirements of the relevant tax laws prevailing at the time the objection was lodged”.

3 New sections inserted

The principal Act is amended by repealing section 13, and substituting the following sections:

“13 Functions of an Authority

The functions of an Authority are to sit as a judicial authority for hearing and determining objections and challenges—

“(a)

To assessments of tax; and

“(b)

To other decisions or determinations of the Commissioner—

authorised by the Inland Revenue Acts.

“13a General jurisdiction of Authorities

Every Authority established trader section 5 has a general jurisdiction—

“(a)

To hear and determine objections that this Act and the Taxation Administration Act 1994 authorise the Authority to hear and determine; and

“(b)

To hear and determine challenges—

“(i)

That this Act and the Taxation Administration Act 1994 authorise the Authority to hear and determine; and

“(ii)

That are not heard in the small claims jurisdiction of an Authority established under section 13b.

“13b Small claims jurisdiction of Authorities

“(1)

Every Authority established under section 5 has a small claims jurisdiction to determine challenges in respect of which the facts are clear and not in dispute—

“(a)

That may involve tax to pay or have a tax effect of up to $15,000; and

“(b)

That do not involve significant legal issues of precedent.

“(2)

For the purposes of subsection (1), ‘tax effect’ means the value of an adjustment or amendment to an assessment, determined by applying—

“(a)

The marginal rate or rates of tax applicable to the disputant during the return period for which the adjustment or amendment is made; and

“(b)

Where the disputant has no tax to pay in the return period, the rate of tax or lowest marginal rate of tax that would apply to a disputant of that type during the return period.”

4 Hearing of proceedings

(1)

Section 16(1) of the principal Act is amended—

(a)

By omitting the words “on an objection”:

(b)

By inserting, after the words “the objection”, the words “or challenge”.

(2)

Section 16(2) of the principal Act is amended by inserting, after the word “objection”, the words “or challenge”.

(3)

Section 16(3) of the principal Act is amended by inserting, after the word “objector’ wherever it occurs, the words or disputant”.

(4)

Section 16(4) of the principal Act is amended by inserting, after the words “an objection”, the words “or a challenge”.

5 Evidence in proceedings before an Authority

(1)

Section 17(1) of the principal Act is amended by omitting the words “An Authority”, and substituting the words “Except as provided by subsections (2a) and (2b), an Authority”.

(2)

Section 17 of the principal Act is further amended by inserting, after subsection (2), the following subsections:

“(2a)

Unless subsection (2b) applies, if the Commissioner issues a disclosure notice to a disputant, and the disputant challenges the disputable decision, the Commissioner and the disputant may raise in the challenge only—

“(a)

The facts and evidence, and the issues arising from them; and

“(b)

The propositions of law—

that are disclosed in the Commissioner’s statement of position and in the disputant’s statement of position.

“(2b)

An Authority may, on application by a party to a challenge to a disputable decision, allow the applicant to raise in the challenge new facts and evidence, and new propositions of law, and new issues, if satisfied that—

“(a)

The applicant could not at the time of delivery of the applicant’s statement of position, with due diligence, discover those facts or evidence; or discern those propositions of law or issues; and

“(b)

Having regard to the provisions of section 89a of the Tax Administration Act 1994 and the conduct of the parties, the Authority considers admission of those facts or evidence or propositions of law, or issues is necessary to avoid manifest injustice to the Commissioner or the disputant.

“(2c)

For the purposes of subsection (1), a statement of position includes additional information which the Commissioner and the disputant agree (under section 89m(13) of the Tax Administration Act 1994) to add to the statement of position.”

6 Power to proceed if either party fails to attend

(1)

Section 20(1) of the principal Act is amended—

(a)

By inserting, after the word “objector”, the words “or the disputant”:

(b)

By inserting, after the words “is the objector”, the words “or challenger”:

(c)

By inserting, after the word “objection” wherever it occurs, the words “or challenge”.

(2)

Section 20(2) of the principal Act is amended by inserting, after the word “objection” wherever it occurs, the words “or challenge”.

7 Authority may dismiss frivolous or vexatious proceedings

Section 21 of the principal Act is amended by inserting, after the word “objection” wherever it occurs, the words “or challenge”.

8 Power to order costs in certain cases

Section 22 of the principal Act is amended—

(a)

By inserting, after the word “objector” wherever it occurs, the words “or a disputant”.

(b)

By inserting, after the word “objection” wherever it occurs, the words “or challenge”.

9 Proceedings not to abate by reason of death

The principal Act is amended by repealing section 23, and substituting the following section:

“23

Proceedings before an Authority shall not abate by reason of the death of the objector or the disputant, and the legal personal representative of the deceased objector or disputant shall be substituted.”

10 Stating case for High Court

Section 24 of the principal Act is amended by inserting, before subsection (1), the following subsection:

“(A1)

This section applies only to objections commenced under Part VIII of the Tax Administration Act 1994.”

11 Decision of an Authority

The principal Act is amended by repealing section 25, and substituting the following section:

“25

“(1)

On the determination of an objection or challenge, an Authority acting in its general jurisdiction shall give its decision in writing.

“(2)

On the request of the objector, the disputant, or the Commissioner made at the hearing or at the time the decision is given, an Authority acting in its general jurisdiction shall state in writing its findings of fact and any reasons in law for the decision.”

12 Appeals to High Court

(1)

Section 26(1) of the principal Act is amended—

(a)

By omitting from paragraph (a) the words “or duty”:

(b)

By repealing paragraph (b).

(2)

Section 26 is further amended by adding the following subsection:

“(8)

This section applies only to objections commenced under Part VIII of the Tax Administration Act 1994.”

13 Challenges appealed to High Court

The principal Act is amended by inserting, after section 26, the following section:

“26a

“(1)

Unless subsection (2) applies, the determination by an Authority of a challenge may be appealed to the High Court if—

“(a)

The amount of tax involved in the appeal is $2,000 or more; or

“(b)

The amount of loss involved in the appeal is $4,000 or more.

“(2)

The determination by an Authority of a challenge may not be appealed to the High Court if the determination was made by the Authority—

“(a)

Acting in its small claims jurisdiction; or

“(b)

Under a tax law that provides for the Authority’s determination to be final.

“(3)

This section applies only to challenges commenced under Part VIIIa of the Tax Administration Act 1994.”

14 Appeal to Court of Appeal

Section 28 of the principal Act is amended by inserting, after the expression “section 26”, the expression “or section 26a”.

15 Costs on appeal

Section 29(1) of the principal Act is amended by inserting, after the expression “section 26” wherever it occurs, the expression “or section 26a”.

16 Regulations

Section 30(2)(a) of the principal Act is amended by inserting, after the word “objections” wherever it occurs, the words “or challenges”.

This Act is administered in the Inland Revenue Department.

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Taxation Review Authorities Amendment Act 1996