Removing tax agent status no longer a disputable decision

Section 138E(1)(e)(iv) of the Tax Administration Act 1994

The decision to remove a tax agent from the list of tax agents or not to list a person as a tax agent is no longer a disputable decision.

Background

Following an amendment in the Taxation (Business Taxation and Remedial Matters) Act 2007, Inland Revenue must keep a list of tax agents. Inland Revenue has the ability to remove a person from the list or not list a person, if it is concerned that continuing to list the person as a tax agent would adversely affect the integrity of the tax system.

Operational guidelines set out the circumstances in which the discretion might be exercised. Before making a decision not to list or remove a person from the list, Inland Revenue is required to give a tax agent notice of the intention to revoke the agent’s status and give reasons for the intended revocation. The agent will be given a 30-day period (or a shorter period if Inland Revenue is concerned that there is a substantial risk to the revenue or a longer period if it is appropriate in the circumstances) in which to resolve the matters raised in the notice of intended revocation.

Because sufficient time is allowed for the affected agent to comment and for those comments to be taken into account, the decision of the Commissioner is no longer a disputable decision.

Application date

The amendment applies from the date of Royal assent, being 6 October 2009.