24Requirement for full and true disclosure

24 Requirement for full and true disclosure (1) A taxpayer must, when a relevant occasion arises, fully and truly disclose, in writing, to the Commissioner all the facts and circumstances affecting a tax liability. (2) It is a defence to a charge of an offence against subsection (1) for the taxpayer to prove that: (a) the taxpayer reasonably relied on some other person who is subject to the same tax liability to ensure the requirements of that subsection were satisfied; or (b) the taxpayer: (i) made a full and true disclosure to a tax adviser of all facts and circumstances affecting the tax liability; and

Taxation Administration Act 2007 13 (ii) reasonably relied on the tax adviser to ensure the requirements of that subsection were satisfied. Example for subsection (2)(a) A taxpayer who is a member of a payroll tax group may be able to establish that the taxpayer reasonably relied on the designated group employer to make the disclosure. (3) A tax adviser must, when a relevant occasion arises, fully and truly disclose, in writing, to the Commissioner all the facts and circumstances affecting a tax liability. (4) It is a defence to a charge of an offence against subsection (3) for the tax adviser to prove that the tax adviser: (a) reasonably relied on an apparently full and true disclosure by the taxpayer of all the facts and circumstances affecting the tax liability; and (b) fully and truly disclosed all facts and circumstances of which the tax adviser was aware. (5) The Commissioner may permit a taxpayer or tax adviser to correct an error in any instrument, return or information submitted to the (6) In this section: relevant occasion – a relevant occasion for disclosure arises when: (a) a taxpayer, or a tax adviser acting on behalf of a taxpayer, submits an instrument or return to the Commissioner for the assessment of tax; or (b) a taxpayer or a tax adviser acting on behalf of a taxpayer submits an application to the Commissioner for an assessment of tax; or (c) the Commissioner, by notice, requests a taxpayer, or a tax adviser acting on behalf of a taxpayer, to provide a disclosure of information under this section about a tax liability that the Commissioner proposes to assess; or (d) facts or circumstances become known to a taxpayer, or a tax adviser acting on behalf of a taxpayer, showing that the basis on which tax has been paid, or the basis on which the Commissioner has assessed or may be about to assess a tax

Taxation Administration Act 2007 14 liability, is incorrect. tax adviser means a person engaged in a professional capacity by a taxpayer for fee or reward (but not as an employee of the taxpayer) in business involving: (a) the preparation on behalf of the taxpayer of an instrument or return on which, or by reference to which, tax is to be assessed; or (b) the submission on behalf of the taxpayer of such an instrument or return to the Commissioner; or (c) the provision of information, or the making of submissions, to the Commissioner relating to the taxpayer's tax liability.