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Examples of Possible Reasons for a Reassessment

Possible cause for reassessment

When a pensioner requests a reassessment of an entity's circumstances s/he must show just cause as to why this should occur. The following outlines a number of circumstances that may warrant a reassessment. However, this is not a definitive list. Each case will need to be examined on its merits.

Some of the circumstances that may warrant a reassessment are:

  • a change in business operations conducted by the entity (see example 1),
  • a change in the circumstances affecting a business operating in the industry or in the same geographical location (see example 2),
  • a change to government regulations, policy or taxes which affect the business,
  • a change in the overall economic climate,
  • cessation of the business,
  • commencement of a new business,
  • business activities are not currently being conducted due to illness,
  • amended Tax Assessment Notice, or
  • withdrawal from a business.
Example 1

Example 1 could include:

  • completion or expiry of a contract,
  • loss of a contract,
  • a major restructure of the business,
  • sale of a business or part of the business operations,
  • restructure of the financial position of the business,
  • refinance or extension of the business liabilities.
Example 2

Example 2 could include:

  • natural disasters e.g. drought, flood,
  • significant change in commodity prices e.g. wool sales,
  • significant change in the price of raw materials, stock or other imports utilised by the business e.g. minerals.
Example of reassessment due to business downturn

Pensioner A is the sole attributable stakeholder of a private company. He has been on an annual assessment cycle for 2 years but has requested a reassessment of his circumstances due to a severe downturn in business turnover. He provides all relevant documentation and the staff member decides to put Pensioner A on a 3 monthly reassessment cycle. Pensioners A's attribution period becomes the period of reassessment (3 months) and his derivation period is the current tax year.

A derivation period has the meaning given by section 52ZZP of the VEA.



A tax year means:

  • a year of income (under the Income Tax Assessment Act 1936)



  • an income year (under the Income Tax Assessment Act 1997)