Recently I was at a conference and the IRD released some interesting statistics on disputes which I though may interest you.  They relate to formal IRD disputes under the dispute process, so NOPA on…

 

Year ended June 2013  
  • Number of disputes
475
  • Settled pre-challenge
293
  • NOPAs issued per month
30
  • Cases resolved at conference stage
57%
  • Adjudications completed
60
At the conference stage  
  • Completed since 04/10
320
  • Facilitated
60%
  • Progressed to statement of position (next step)
43%
  • Settled – negotiated
28%
  • Settled – negotiated – Conceded – by taxpayer
18%
  • Settled – negotiated – Conceded – by IRD
11%

 

So overall a few thoughts from me:

  1. fewer NOPAs than expected, which shows that the IRD is using the risk review process and often settling with taxpayers before the formal disputes process commences.
  2. Only 60/475 cases went all the way to adjudication.  This shows that the process does work although often taxpayers do concede due to the cost of the fight being so high.