Under subsection 99(1) of the Income Tax Act 1967 (ITA), a taxpayer who receives an Advanced Assessment from the Director General of Inland Revenue (DGIR) has the right to appeal.

However, unlike ordinary or additional assessments, the time limit for appealing against an Advanced Assessment is different.
An appeal must be filed within the first three (3) months of the Year of Assessment (YA) immediately following the year in which the advanced assessment was made.

If the taxpayer is unable to submit the appeal within this period, an extension of time may be requested under Section 100 of the ITA, provided valid reasons are given and approved by the DGIR.

Example: Sole Proprietorship Business

Mr. Rahman, who operated a sole proprietorship business, ceased operations on 30 June 2019. The final accounts were prepared for the period from 1 January 2019 to 30 June 2019.

The DGIR issued an Advanced Assessment for YA 2019 on 13 August 2019, and the notice was officially served on 20 August 2019.

Since the advanced assessment relates to YA 2019, the following year — YA 2020 — marks the beginning of the three-month appeal window.

Therefore, Mr. Rahman must file his appeal no later than 31 March 2020, unless an extension is granted under Section 100 of the ITA.

Key Takeaway

An Advanced Assessment is often issued when a taxpayer’s income or business activities end before the close of a financial year.
Taxpayers should be aware that the appeal period is shorter — it must be made within three months from the start of the following year of assessment.

Missing this deadline could forfeit the right to appeal unless an extension is approved. Therefore, it’s essential to seek legal or tax advice promptly to ensure the appeal is filed within time and in the correct format (via Form Q).

Contact Our Tax Appeal Lawyers

📞 Lawyer Khoo, Managing Partner
📧 [email protected]
📱 +6016-557 4789

At NZSK Legal, our tax litigation team assists individuals and businesses with Advanced Assessment appeals, audit reviews, and DGIR disputes under the Income Tax Act 1967, ensuring full protection of your rights.