Making the requirement to pay tax in dispute a non-disputable decision

Section 138E of the Tax Administration Act 1994

The exercise of the Commissioner's discretion to require payment of all tax in dispute has been made a non-disputable decision.

Background

Section 138I of the Tax Administration Act 1994 concerns payment of tax in dispute. Since 2003 the Commissioner has been able to require that a disputant pay all of the tax in dispute if the Commissioner considers there is a significant risk that the tax in dispute will not be paid should the disputant's challenge be unsuccessful (section 138I(2B)). This discretion is exercised in exceptional circumstances only, for example, where the Commissioner considers there is a flight risk or a substantial risk of assets being alienated. It was not intended that a decision of the Commissioner to require full payment should be a disputable decision.

Key features

Previously, a decision of the Commissioner to require full payment was a disputable decision. This was not intended. Therefore, a reference to section 138I(2B) has been added to section 138E, which sets out the provisions where there is no right of challenge, making the exercise of the discretion a non-disputable decision.

Application date

The amendment applies from the date of enactment, 7 December 2009.