Slim odds of beating IRD on appeal

IRD won 65 of the 78 judgments released by the Taxation Review Authority or a court. Photo / Janna Dixon

Inland Revenue's high strike rate in scraps is influenced by many of the cases already having gone a round through the mandatory disputes resolution process before they see a courtroom, says a lawyer.

The IRD won outright almost 85 per cent of judgments released by the Taxation Review Authority or a court in the 12 months to June 30 - its highest rate of success since at least 2010.

The tax department has only included judgments in this strike rate if all the issues being decided by a court or the TRA came back in its favour.

It lost nine of the cases released in the year and had four partial wins.

Following a Herald report of these numbers, tax specialist lawyer David Weaver pointed out:

"The cases that get to court are generally only those matters which the taxpayer has already lost once ... the only cases which see the light of the court room are those which the taxpayer is effectively appealing."

On a roll

• IRD won 65 of the 78 judgments released by the Taxation Review Authority or a court.
• Lost nine of these and had four partial wins.
• Won 40 cases before the disputes review unit.
• 34 of the 78 cases at issue in the year had already been through the disputes unit.