Tax Payer Obligations

Inland Revenue displays in each of its offices a copy of the charter which sets out the rights and obligations of taxpayers as Inland Revenue perceives them. This charter tells people what service they should expect from Inland Revenue, and what obligations they have in their dealings with Inland Revenue.

These expectations include the right to prompt, courteous and efficient service from Inland Revenue, and the right to individual attention. The charter also tells people of their right to question Inland Revenue’s decisions, and to be informed of their rights and obligations before an audit begins.

Also included is people’s obligation to act honestly when dealing with their tax affairs.

Essentially, the obligations of taxpayers are to:

  • Correctly determine the amount of tax payable by the taxpayer under the tax laws, unless the taxpayer is a non-filing taxpayer.
  • If required under a tax law, make an assessment.
  • Deduct or withhold the correct amounts of tax from payments or receipts of the taxpayer when required to do so by the tax laws.
  • Pay tax on time.
  • Keep all necessary information (including books and records) and maintain all necessary accounts or balances required under the tax laws.
  • Disclose to the Commissioner in a timely and useful way all information (including books and records) that the tax laws require the taxpayer to disclose.
  • To the extent required by the Inland Revenue Acts, co-operate with the Commissioner in a way that assists the exercise of the Commissioner’s powers under the tax laws. Note that the use of the term “Inland Revenue Acts” is narrower than the phrase “tax laws”.
  • Comply with all the other obligations imposed on the taxpayer by the tax laws. This is a “catch-all” provision that requires taxpayers to comply with any other tax obligation not directly specified above, provided the obligation is contained within the tax laws. This provision is likely to be more contentious than the preceding obligations as taxpayers and the Commissioner ascertain its scope and implications.
  • Inform the Commissioner that the person has not received an income statement for an income year, if the taxpayer is a natural person to whom s 80C TAA 1994 applies, and if the income statement is not received by the date prescribed in s 80C(2) or (3) TAA 1994 [see TAAC-80C].
  • Correctly respond to any income statement issued to the taxpayer if the taxpayer is a natural person.