| Actual 2022 ($000) | Contingent liabilities and assets | Actual 2023 ($000) |
|---|---|---|
| Contingent liabilities | ||
| $30 | Employee grievances | $75 |
| $312 | Legal proceedings and disputes–taxpayer | $383 |
| - | Other | $20 |
| $342 | Total contingent liabilities | $478 |
| Contingent assets | ||
| $1,404 | Legal proceedings and disputes–taxpayer | $1,629 |
| $1,404 | Total contingent assets | $1,629 |
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).
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
A new claim in 2023 represents a breach of contract being heard by in the Employment Relations Authority. The associated cost were estimated on that basis that Inland Revenue was unsuccessful.
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).
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.