| Actual 2021 ($000) | Contingent liabilities and assets | Actual 2022 ($000) |
|---|---|---|
| Contingent liabilities | ||
| $15 | Employee grievances | $30 |
| $303 | Legal proceedings and disputes - taxpayer | $312 |
| $19 | Other | n/a |
| $337 | Total contingent liabilities | $340 |
| Contingent assets | ||
| $1,321 | Legal proceedings and disputes - taxpayer | $1,404 |
| $1,321 | Total contingent assets | $1,404 |
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 only, associated with tax disputes and other tax related legal proceedings being taken through the courts. 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). 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.
Schedule of non-departmental contingent liabilities and contingent assets
Other
The claim identified in 2021 was resolved in favour of Inland Revenue. The are no further claims on this matter.
Contingent assets
Legal proceedings and disputes - taxpayer
These contingent assets relate to potential amounts recoverable by Inland Revenue for court costs only, associated with tax disputes and other tax related legal proceedings being taken through the courts. 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). 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.
Schedule of non-departmental contingent liabilities and contingent assets