Expert in tax law and taxpayer defence
Geoff Clews is one of the few New Zealand lawyers who specialize in acting for clients facing serious tax problems. He has done so for almost 30 years. Geoff’s practice covers all aspects of tax controversy. He advises clients in the course of Inland Revenue investigations. He conducts the formal aspects of the statutory tax disputes process. He litigates tax and related issues before the Courts at trial and appellate levels. In all these matters Geoff applies focused analysis of his client’s situation, an honest judgment of their position, strategic thinking and compelling advocacy.HIGHLIGHTED SERVICES
| Sometimes people cut corners with their taxes. Not everything gets returned as it should be. Claims are over stated or income is suppressed. Often these defaults start small and simply get out of hand. The IRD allows voluntary disclosures which substantially reduce penalties and in many cases avoid the risk of prosecution. The trick is not to wait too long before making a disclosure and to be sure that it covers all the ground required by the IRD. | A tax investigation can be intrusive, frustrating and worrying. Often the IRD issues formal information requisitions. Sometimes it will demand access to business premises and records (including computers) without notice. If these procedures are not managed carefully, they can lead to substantial cost and increased tax risk. You must assist the IRD within the law but at the same time should be sure that the IRD only has access to material it is entitled to, and with the least disruption possible to your life and business. | The IRD cannot normally assess you without first going through a complicated statutory tax disputes process. That process involves strict time frames for the exchange of notices and “sudden death” deadlines. If you miss one of them, you can lose all your rights of dispute. Later stages of the process require binding statements of position which lock in aspects of any subsequent litigation. If you get that wrong, your case can be severely compromised. |
| An assessment will normally be issued at the end of the tax disputes process if the IRD does not accept your position. If you disagree with it, you must challenge the assessment within a limited time or lose your dispute rights. A tax challenge is formal civil litigation in the Taxation Review Authority or the High Court. It requires a winning strategy and tactical sense. | At their most serious, tax crimes are prosecuted as fraud. Even non-filing of a return can be treated by the IRD as evidence of intent to evade taxes. Serious tax crime involves the real risk of prison and/or fines. If you have not disclosed your default to the IRD and it prosecutes you, an effective defence or mitigation is vital. | Tax debts can mount up very quickly if they are not managed. Penalties and interest can virtually double the size of a debt in 3 to 4 years. Settling payment terms with the IRD is not a normal commercial negotiation. It requires an understanding of the rules that govern the IRD’s decision-making and the ability to put together a proposal which has the best chance of being acceptable within those rules. |
| Tax laws are particularly complicated because they have to cover every aspect of commercial life. Parliament is always changing them to meet new demands and to close loopholes. Many commercial transactions require a tax sign off and responsible taxpayers will seek advice before adopting a course that could have material tax outcomes. Sound tax advice can be insurance against some tax penalties. | Trusts have proliferated in New Zealand. Some are well managed and some are not. Trustees do not always understand their obligations and beneficiaries are sometimes wrongly locked out of trust property or disadvantaged by trustee decisions. The Courts can intervene to stop trust excesses or to assist trustees with directions. | A regime for the registration and monitoring of charities became operative in 2008. The Charities Commission is responsible for vetting the charitable status of organisations and registering them as such, then monitoring their performance. Defining the purposes of an organisation in a way that qualifies as charitable can require professional advice. Adverse decisions of the Charities Commission may be appealed to the High Court. |
