First, I would like
you to note that the letters are for reference only. Every case has its own
merits. No one model letter can suit all cases. You should adapt the letter to
meet the situation of your case. Below is my general advice.
Exercise your rights
to objection and section 70A claim. Read “What to do if you disagree with an
assessment” under Basic Tax Tips. Although paying tax is every
taxpayer's obligation, you need only pay the tax that it is rightly and lawfully
assessed. You can object if you are wrongly or overly assessed by the IRD.
Mind the time limits
of objection and section 70A claim. The time limit for a valid objection is one
month after the date of the assessment whereas the time limit for a section 70A
claim is 6 years after the relevant year of assessment. If you are late, you can
write to the IRD to explain about the delay and ask for their acceptance of your
late objection or claim.
Write to the IRD. In
general, a letter is more powerful than a phone call. A verbal objection is
invalid in law. A verbal claim can be forgotten by the officer receiving your
phone call. State your grounds of objection or claim clearly. Just saying the
assessment wrong is insufficient. You should say why it is wrong and preferably
propose how the assessment should be revised. If you want me to draft the
letter, you are welcome to
Ask for holding-over
of tax in dispute. If you pay the tax in dispute and your objection or claim is
successful, the IRD will not pay you interest. If tax is held-over
unconditionally and you lose the case, no interest will be payable on the
provisional tax in dispute but interest may be payable on the tax in
dispute. So, if you are not very confident you will win at last, you should ask
for the tax in dispute to be covered by purchase of Tax Reserve Certificate ---
in that case if you win you can earn interest and if you lose, you need not pay
interest because the tax is covered by the Tax Reserve Certificate.
Send you letter by
post and by fax. Unless you have a digital certificate, your e-mail of objection
or claim will not be valid in law because it has not been duly signed. To
expedite your claim, I suggest you faxing your letter to the IRD at the fax
numbers provided in my model letters. Follow up your claim by phone call. If you
do not receive a reply from the IRD for long, phone them.
Tell the IRD your new
correspondence address if the address shown in the notice of assessment is