21Reassessment

21 Reassessment (1) Subject to this Act, the Commissioner may, after making an assessment, make a reassessment. (2) A reassessment may be made: (a) on the Commissioner's own initiative; or (b) on receipt of a written application by the taxpayer. (3) A reassessment may: (a) confirm the earlier assessment; or (b) increase the amount of the earlier assessment; or (c) reduce the amount of the earlier assessment (and, if it appears on the reassessment that no tax is payable, reduce the amount of the earlier assessment to nil); or (d) alter the earlier assessment in any other way.

Taxation Administration Act 2007 11 (4) The Commissioner cannot reassess a tax liability more than 5 years after the initial assessment of the liability, unless: (a) the reassessment is necessary to give effect to a decision on an objection, review or appeal under Part 11 in relation to the initial assessment of liability; or (b) the taxpayer failed to make a full and true disclosure of all the facts and circumstances affecting the liability and, as a result, the tax liability was assessed at a lower amount than it should have been; or (c) the taxation law under which the liability arose authorises the making of a reassessment more than 5 years after the initial assessment; or (d) the taxpayer applies, in writing, for the reassessment within 5 years after the date of the initial assessment.