Dispute Resolution Process

NOPA is short for Notice of Proposed Adjustment. NOPA is the first step into the dispute process between the taxpayers and the Commissioner.

As New Zealand tax system follows self-assessment process, taxpayer will furnish a return first. If the Commissioner wants to challenge the taxpayer’s assessment, they will have to raise a NOPA. ON the other hand, taxpayer can also submit a NOPA to open a dispute against the Commissioner.

NOPA gives both parties an opportunity to explain their arguments and thinking behind a dispute problem. Thus, the party issuing a NOPA needs to carefully prepare and provide sufficient details to support their reasons for those adjustments. IR770 is a prescribed form for NOPA.

Normally, the IRD will issue an NOPA after going through an intensive audit on the taxpayer’s affair. After the NOPA is issued, the other parties will have 2 months to respond either accepting it or rejecting through a Notice of Response.

If you need help preparing a NOPA, please contact us or seek professional advice.

Disclaimer: The following answer necessarily sets out general principles only. The facts of particular cases always need to be considered carefully, and it may be necessary to obtain advice from a tax expert.

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