Tax Audits and Disputes

An IRD audit can be very unsettling and distracting. James can put your mind at ease. As a leading tax professional, he has assisted many individuals and business.

Audit's don't usually start unannounced. There is normally a period before the audit starts when IRD does a risk review. If you can identify errors at that stage then there is the option of making a voluntary disclosure. That will minimise your costs and resolve the issue. If matters carry on to an audit the next step is entering the dispute phase where IRD will issue you with formal documents called a Notice of Proposed Adjustment (NOPA). That is the beginning of the disputes phase.

It is normally best to create a team to help you. That team will consist of your accountant, because they know the facts of the case and a tax lawyer as they bring to bear a different skill set to your accountant. A tax barrister for example will know what matters to emphasis in negotiations with Inland Revenue and what will be most persuasive with a judge if the matter gets that far. A tax barrister is also independent and can give you frank advice as to whether you will win the dispute or not. Where James Coleman adds value is in terms of the quality of those judgments.

He has unbeatable experience in this space. This is because James has argued more tax cases in New Zealand than any other tax barrister. You can review the cases James has appeared in by visiting the Ministry of Justice's Judicial Decisions Online website and searching for Coleman in the counsel box. James has been arguing tax cases since 1991 so as over 28 years’ experience. But the dispute starts along time before the court stage is reached. It starts with the risk review letter. This is because at that stage there is an option of resolving the dispute through the voluntary disclosure process and avoiding shortfall penalties.

This website also contains a partial list of the cases he has appeared in as well as copies of some of the judgments. The cases James has argued include a large number of the leading cases in terms of New Zealand tax law. He is truly a tax expert.

Latest Cases

Otaraua Hapu Management Committee Incorporated v CIR

2026 [2026] NZHC 1304

In this case, the applicant, having been deregistered as a charity, successfully appealed Charity Services’ decision not to backdate its re-registration to the date of the original deregistration. The effect of that relief was to avoid liability for tax under s HR 12 of the Income Tax Act 2007. The decision demonstrates that a discretion exists and, in an appropriate case, will be exercised by the Court in favour of the taxpayer.

World Gospel Bible College Charitable Trust v CIR

2026 (2024) 31 NZTC 1232

In this case, the applicant had been deregistered as a charity and, having lodged its appeal out of time, sought an order that it be re-registered with effect from the date of deregistration. The evident purpose of that relief was to avoid liability for deregistration tax under s HR 12 of the Income Tax Act 2007.

TRA Case 2

2026 (2024) 31 NZTC 7002

This case concerns whether the Commissioner’s electronic transmission of the Statement of Position was effected in time, notwithstanding that it was not received in the recipient’s inbox. The Court considered the operation of s 14(7) of the Tax Administration Act, which incorporates s 214 of the Contracts and Commercial Law Act 2017, and examined the principles governing the determination of when an electronic communication is received.

CIR v Chand

2021 [2021] NZDC 16787

This is the first case dealing with the sentencing approach when a defendant has pleaded guilty to evading assessment rather than evading payment of tax under s 143B(1)(f) of the TAA

CIR v Roberts

2019 [2019] NZCA 564

I acted for the respondent Mrs Roberts in this appeal. We were successful. The Court of Appeal unanimously upheld the High Court judgment. The result was that debt forgiveness is correctly classified as a monetary gift. The government has fought a long campaign against this result and 24 hours after the Court of Appeal judgment was released issued notification that they would change the law in 2020.

See all cases