Taxes Management Act 1970 section 43B

Limits on application of section 43A

Section 43B places restrictions on the use of the powers under section 43A to make, revoke or vary claims, elections, applications or notices following a further assessment, particularly where other taxpayers are affected.

• The section 43A(2) power cannot be used to alter another person's tax liability without that person's written consent (or their personal representatives' consent if deceased).
• Where exercising the power increases another person's tax liability, section 43A cannot then be triggered again by any assessment arising from that increased liability — preventing a chain reaction of further adjustments.
• The total tax reductions resulting from claims, elections or notices made under section 43A cannot exceed the additional tax liability created by the original assessment — any excess is lost.
• Where the cap on reductions affects more than one tax period or more than one person, the inspector will apportion the limited amount, unless the taxpayer(s) jointly specify their own apportionment within 30 days of the inspector's notice.