- Taxpayer is a company involved in restaurant business registered for income tax and GST
- Investigation found Taxpayer suppressed cash sales, under-reported GST and income tax
- Default assessment issued with evasion shortfall penalties
- Dispute raised by Taxpayer, referred to Tax Counsel Office for adjudication
- Main issues include under-reporting cash sales, offsetting costs without records, reassessment of GST, liability for shortfall penalty
- TCO decided Commissioner validly assessed Taxpayer, cash sales under-reported, no offset for costs without evidence, correct reassessment of GST and income tax
- Evasion penalties correctly imposed
- Legislative references to Tax Administration Act for preliminary issues
- Commissioner’s decision to assess without NOPA cannot be disputed by Taxpayer
Source: taxtechnical.ird.govt.nz
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
