Reassessments

The Commissioner of State Revenue can reassess a taxpayer’s liability for tax under section 17 of the Taxation Administration Act 2001.

A reassessment does not replace the previous assessment but varies it by increasing or decreasing the liability, or changing the basis on which the liability was assessed.

• The Commissioner cannot be compelled to make a reassessment decreasing liability for tax.
• A decision not to make a reassessment of a taxpayer’s liability for tax is a non-reviewable decision.
• A reassessment must be made in accordance with the Commissioner’s legal interpretations and assessing practices in similar circumstances when the original assessment was made.

A reassessment—or a request by a taxpayer for a reassessment—must be made within 5 years after the notice for the original assessment was given, subject to limited exceptions.

When you apply for a reassessment to decrease your liability for tax, you must provide evidence to establish:

• the assessment was not correct or is no longer correct and there are grounds for reassessment decreasing liability due to an error, omission or change
• the explanation for and circumstances relating to the error, omission or change and any delay in seeking to correct the assessment
• how the reassessment complies with the relevant revenue law and the Taxation Administration Act
• any other relevant considerations.

For more information read the public ruling on reassessments decreasing liability for tax (TAA017.1).

How to apply for a reassessment

The following pages have information on how to apply for a reassessment:

• payroll tax
• betting tax
• land tax
• transfer duty
• insurance duty
• vehicle registration duty
• mineral and petroleum royalty.

If a reassessment decreases your liability and you have overpaid, you might be eligible to have your refund paid by electronic funds transfer (EFT).