The vast majority of disputes with Inland Revenue formally start with the Department issuing a notice of proposed adjustment. This document must be responded to by the taxpayer issuing a Notice of Response within the relevant response period. Failure to issue the Notice of Response will mean that you are stuck with the adjustment Inland Revenue are proposing.
After exchange of these documents there is the opportunity for you to meet with Inland Revenue and seek to resolve any differences. This must be handled carefully and you will need assistance from an advisor expert in tax disputes.
If your dispute is not resolved at that point Statements of Position must be exchanged. Ordinarily Inland Revenue will provide its statement of position first. You will respond to it. This document is the most critical in the process. You are bound by its contents both in terms of the legal arguments you can later make and in terms of the facts that you can rely on. This document must be prepared within statutory time frames and needs professional drafting from someone who is expert in their preparation and ideally who will then represent you at any later Court hearing.