As at 30 June 2021.
|
Actual |
Notes |
Actual |
|
|---|---|---|---|
| Contingent liabilities | |||
| $5 | Employee grievances | $15 | |
| $356 | Legal proceedings and disputes - taxpayer | $303 | |
| – | Other | $19 | |
| $361 | Total contingent liabilities | $337 | |
| Contingent assets | |||
| $1,433 | Legal proceedings and disputes - taxpayer | $1,321 | |
| $1,433 | Total contingent assets | $1,321 |
The accompanying accounting policies and notes form part of these financial statements.
Contingent liabilities
Employee grievances
These contingent liabilities represent amounts that may be claimed by employees as a result of alleged grievances against Inland Revenue.
Legal proceedings and disputes - taxpayer
These contingent liabilities relate to potential claims against Inland Revenue for court costs associated with tax disputes and other legal proceedings being taken through the courts against taxpayers. They only relate to court costs. The actual revenue (tax) under dispute is recognised as a non-departmental contingency (refer to the Schedule of non-departmental contingent liabilities and contingent assets).
Schedule of non-departmental contingent liabilities and contingent assets
The expected value of the contingent liabilities is calculated using an outcome probability model that considers both the total potential liability and the probability of that outcome.
Other
Inland Revenue was successful in defending a claim in the Employment Court where the plaintiffs were seeking a declaration from the Court that they were employees of Inland Revenue, despite being employed by another employer at the material time. The plaintiffs have sought leave to appeal the Employment Court decision to the Court of Appeal. If leave is granted, the matter will be heard in the Court of Appeal and the sum of $0.019 million is an estimate of the costs if the appellants are successful in their appeal. The extent of Inland Revenue’s financial liability for damages for arrears of wages is unquantified at this stage.
Contingent assets
Legal proceedings and disputes - taxpayer
These contingent assets relate to potential amounts recoverable by Inland Revenue for court costs associated with tax disputes and other legal proceedings being taken through the courts against taxpayers. They only relate to court costs. The actual revenue (tax) under dispute is recognised as a non-departmental contingency (refer to the Schedule of non-departmental contingent liabilities and contingent assets).
Schedule of non-departmental contingent liabilities and contingent assets
The expected value of the contingent assets is calculated using an outcome probability model that considers both the total potential court costs recoverable and the probability of that outcome.