Sometimes people involved in tax disputes make statements to the media which are incorrect and which undermine public confidence in the integrity of the tax system. It is not clear if Inland Revenue can make a statement to correct these incorrect statements.

Peter has been reported in the media as being the leader of a lucrative organised crime ring, and under suspicion of tax evasion.
Peter makes a public statement claiming that Inland Revenue has forgiven penalties attached to five years of his unpaid tax, which is not true. Most taxpayers reading the papers think this is completely unfair.
The statements Peter has made to the media make the public think that the tax system lacks integrity, and that Inland Revenue does not treat taxpayers equally.
Even though Peter’s statement is completely incorrect, it is not clear under the current law if Inland Revenue can provide a public correction.
 

In certain circumstances Inland Revenue will be able to make statements to the media to correct previously publicised information that is untrue, and that undermines public confidence in the tax system.
Before correcting public statements, Inland Revenue will have to weigh up the taxpayer’s right to confidentiality against the likelihood that the statements already made will undermine taxpayers’ confidence in the integrity of the tax system. Inland Revenue will consider whether it can protect the integrity of the tax system in an effective way without releasing taxpayer-specific information.
 

Peter has been reported in the media as being the leader of a lucrative organised crime ring, and under suspicion of tax evasion.
Peter tells a newspaper that Inland Revenue has forgiven penalties attached to five years of his unpaid tax. Most taxpayers think this is completely unfair.
The truth is that the penalties attached to Peter’s tax shortfall have not been forgiven and are still payable.
Under the proposal, Inland Revenue can issue a public statement that corrects Peter’s statements, and protect public perceptions of the tax system. This will reassure the public that Inland Revenue operates fairly and in accordance with the law.