Don’t let the Tax Man bully you

Don’t let the IRD bully you – guard your right to your interpretation

The tax return that you send to the Tax Office is your submission of what you believe is the correct tax due by you or the refund owed to you. It is your interpretation and you have the right to expect it to be considered and accepted by them. 

You are entitled to your view. The IRD may put forward their own interpretation and they are entitled to their view as well. If you both agree then there is no problem. But if each party’s view differs then you’ll both have a fight on your hands. 

Under the Tax Act the Tax Department has an enormous advantage because they can legally take their interpretation as correct. That leaves you with the unenviable task of proving them wrong. 

The onus is on you to prove their error.

This differs markedly from our basic system of justice where a man or woman is ‘innocent until proven guilty’. With taxation you are looked upon as guilty until you prove yourself innocent. The point is, the view of the Tax Man need not necessarily be final. It can be challenged. You are both submitting interpretations of the same Tax law. 

It doesn’t mean that the IRD is wrong or acting illegally. It simply means that two parties may have differing point of views about a particular tax or financial transaction. Stay with your interpretation and don’t budge until you are proven incorrect. Don’t let the IRD bully you – guard your right to your interpretation.

Just make sure your opinion as well as your tax returns are soundly based and that you have full documentation and records to prove your case.