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Time bar

What suggestions do you have for how the time bar could be developed in the modernised tax administration?

The proposed features of the modernised tax administration, including increased use of technology in pre-populating tax returns for individuals, information matching and better compliance profiling may, however, give Inland Revenue a higher degree of comfort that a return is correct.

Once these features were implemented, the Government could consider a reduced time bar for Inland Revenue to make enquiries in situations when Inland Revenue was comfortable that the return was likely to be materially correct. A reduced time bar in these circumstances would achieve the desired certainty for taxpayers sooner and would allow Inland Revenue to focus available resources on collecting the highest net revenue over time in more effective ways.


I would suggest that once a return has been signed off that it would not normally come under review more than 12 months after it was submitted unless there is evidence of deliberate fraud or major discrepancies. Minor errors no doubt can creep into any return and there are years where we know we have inadvertently paid too much tax but there has to be some sort of cut off so paperwork is not being continually reviewed.

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8 months ago
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