Part 3 Assessment of tax liability
8 General power to make assessment
(1) The Chief Commissioner may make an assessment of the tax liability of a taxpayer.(2) An assessment of a tax liability may consist of a determination that there is not a particular tax liability.
(1) The Chief Commissioner may make one or more reassessments of a tax liability of a taxpayer.(2) A reassessment of a tax liability is to be made in accordance with the legal interpretations and assessment practices generally applied by the Chief Commissioner in relation to matters of that kind at the time the tax liability arose except to the extent that any departure from those interpretations and practices is required by a change in the law (whether legislative or non-legislative) made after that time.(3) The Chief Commissioner cannot make a reassessment of a tax liability more than 5 years after the initial assessment of the liability, unless:(a) the reassessment is to adjust tax to give effect to a decision on an objection or review as to the initial assessment, or(b) at the time the initial assessment or a reassessment was made, all the facts and circumstances affecting the liability under the relevant taxation law of the person in respect of whom the assessment or reassessment was made were not fully and truly disclosed to the Chief Commissioner and, as a result, the tax liability was assessed at a lower amount than the Chief Commissioner would otherwise have assessed it, or(c) the reassessment is authorised to be made more than 5 years after the initial assessment by another taxation law, or(d) the reassessment is made as a consequence of an application by a taxpayer, being an application made within 5 years after the initial assessment of the liability, and the reassessment reduces the tax liability.(4) The initial assessment of a tax liability remains the initial assessment of the liability for the purposes of this Act even if it is withdrawn under section 13.
10 Requirement for full and true disclosure of relevant facts and circumstances
(1) A person who is liable to pay tax under a taxation law must, before or at the time an assessment of the tax liability is made, fully and truly disclose to the Chief Commissioner all the facts and circumstances affecting the tax liability under the relevant taxation law.Maximum penalty: 100 penalty units.
Note. An offence against subsection (1) committed by a corporation is an executive liability offence attracting executive liability for a director or other person involved in the management of the corporation—see section 121.(2) A defendant is not guilty of an offence under this section if the defendant proves that the defendant reasonably relied on some other person to ensure that the requirements of this section were satisfied.
11 Information on which assessment is made
(1) The Chief Commissioner may make an assessment on the information that the Chief Commissioner has from any source at the time the assessment is made.(2) If the Chief Commissioner has insufficient information to make an exact assessment of a tax liability, the Chief Commissioner may make an assessment by way of estimate.
(1) The Chief Commissioner may make an assessment in accordance with this section:(a) if it is difficult or impracticable for the Chief Commissioner to determine a person’s tax liability under a taxation law without undue delay or expense because of the complexity or uncertainty of the case or for any other reason, or(b) for the purpose of settling a dispute between the Chief Commissioner and a person concerning the person’s tax liability (whether or not a previous assessment has been made).(2) The Chief Commissioner may, with the agreement of the taxpayer, assess liability in an amount specified in, or determined in accordance with, the agreement.(3) Despite section 9, the Chief Commissioner cannot make a reassessment of a tax liability assessed in accordance with this section:(a) except with the agreement of the taxpayer, or(b) unless the assessment under this section was procured by fraud or there was a deliberate failure to disclose material information.(4) (Repealed)(5) This section does not limit the power of the Chief Commissioner to make an assessment by way of estimate under section 11.
The Chief Commissioner may withdraw an assessment (being an assessment for which a notice of assessment has been issued) at any time within 5 years after the date of issue of the notice, whether or not the amount of tax specified in the assessment has been paid.
14 Notice of assessment, reassessment or withdrawal of assessment
(1) The Chief Commissioner may issue a notice of assessment (showing the amount of the assessment).(2) If the Chief Commissioner has not issued a notice of assessment of the tax liability of a taxpayer, the Chief Commissioner must issue the notice if a request to do so is made by the taxpayer within 5 years after the liability arose.(3) If the Chief Commissioner makes a reassessment, the Chief Commissioner must issue a notice of assessment (showing the amount of the reassessment).(4) If the Chief Commissioner withdraws an assessment, the Chief Commissioner must issue a notice of withdrawal of assessment.(5) The notice is to be in a form approved by the Chief Commissioner.
15 Inclusion of interest and penalty tax in notice of assessment
A notice of assessment of a taxpayer’s tax liability issued following a tax default by the taxpayer must specify any interest and penalty tax payable by the taxpayer under Part 5 or section 95 in respect of the default.
The validity of an assessment is not affected because a provision of a taxation law has not been complied with.
16A Land tax assessments—special provisions
The validity of a land tax assessment for a land tax year (within the meaning of the Land Tax Management Act 1956) is not affected by an objection or appeal under the Valuation of Land Act 1916 in relation to a land tax assessment for a subsequent land tax year, even if the objection or appeal results in a change to a land valuation on which the earlier land tax assessment was partly based.Note. Under the Land Tax Management Act 1956 land tax assessments are based on an average value of land, being an average of the land value of the land in respect of the most recent 3 land tax years. This section prevents an objection to a land tax assessment from affecting the validity of previous land tax assessments that were based on one or 2 of the same land values.
17 Acceptance of money or return not necessarily an assessment
The acceptance of money by the Chief Commissioner paid in connection with the lodging of a return or other document, or the acceptance of a return or other document, is not, only because of the acceptance, an assessment.