Description of Contingent Assets
Quantified contingent assets
Legal proceedings and tax disputes
Contingent assets arise where Inland Revenue has advised or is about to advise a taxpayer of a proposed adjustment to their tax assessment. There has been no amended assessment issued at this point or revenue recognised so these are recorded as legal proceedings and disputes - non-assessed. The taxpayer has the right to dispute this adjustment and a disputes resolution process is entered into. Inland Revenue quantifies a contingent asset based on the likely outcome of the disputes process based on experience and similar prior cases.
$592 million at 31 March 2012 ($636 million at 30 June 2011)
Unquantified contingent assets
Properties acquired under the Canterbury Red Zone Support Package
A provision has been made for the costs associated with the Red Zone Support Package. As a consequence of this package, the Crown will acquire residential properties that are unlikely to be suitable for continued residential occupation for a prolonged period of time (red zone properties). As no determination has been made of the possible use of the properties the Crown will acquire, any value for the asset is contingent.
