Reprint as at 1 October 2014

Tax Administration Act 1994

Public Act1994 No 166
Date of assent20 December 1994
Commencementsee section 1

Note

Changes authorised by subpart 2 of Part 2 of the Legislation Act 2012 have been made in this official reprint.

Note 4 at the end of this reprint provides a list of the amendments incorporated.

This Act is administered by the Inland Revenue Department.


Contents

Title

1 Short Title and commencement

Part 1
Purpose and construction

2 Purpose of Act

3 Interpretation

4 Construction of statutory references

4A Construction of certain provisions

4B Application of Act in relation to Australian wine producer rebate

Part 2
Commissioner and department

5 Inland Revenue Department

6 Responsibility on Ministers and officials to protect integrity of tax system

6A Commissioner of Inland Revenue

6B Directions to Commissioner

7 Delegation of powers by Commissioner

7A Authorisation to take securities

8 Deputy Commissioners of Inland Revenue [Repealed]

9 Regional Controllers of Inland Revenue [Repealed]

10 District Commissioners of Inland Revenue [Repealed]

11 Appointment of other officers [Repealed]

12 Official seal

13 Proof of signature of Commissioner

14 Giving of notices by Commissioner

14B Giving of notices to Commissioner

14C Giving of notices to other persons

15 Annual report

Part 2A
Taxpayer's tax obligations

15A Purpose of this Part

15B Taxpayer's tax obligations

Part 2B
Intermediaries for PAYE, provisional tax, and resident passive income

PAYE intermediaries

15C PAYE intermediaries and listed PAYE intermediaries

15D Application for approval as PAYE intermediary

15E Revocation of approval

15F Fitness of applicants

15G Application for approval as listed PAYE intermediary

15H Grounds for revocation of listing

15I Procedure for revocation of listing

15J Employers’ arrangements with PAYE intermediaries

15K Privacy requirements

15L Amended monthly schedules

15M Subsidy claim forms

RWT proxies

15N RWT proxies

Tax pooling intermediaries

15O Establishing tax pooling accounts

15P Role of Commissioner

15Q Applications to establish tax pooling accounts

15R Fitness of applicants

15S Requirements for applications to establish tax pooling accounts

15T Winding up tax pooling accounts

15U Requirements for applications to establish tax pooling accounts [Repealed]

15V Winding up tax pooling accounts [Repealed]

RWT proxies

[Repealed]

15W RWT proxies [Repealed]

Part 3
Information, record-keeping, and returns

Commissioner's powers to obtain information

16 Commissioner may access premises to obtain information

16B Power to remove and copy documents

16C Power to remove and retain documents for inspection

17 Information to be furnished on request of Commissioner

17A Court orders for production of information or return

18 Inquiry before a District Court Judge

19 Inquiry by Commissioner

20 Privilege for confidential communications between legal practitioners and their clients

20B No requirement to disclose tax advice document

20C Treatment of document

20D Claim that document is tax advice document

20E Document or part of document included in tax advice document

20F Person must disclose tax contextual information from tax advice document

20G Challenge to claim that document is tax advice document

21 Information requisitions in relation to offshore payments

Taxpayer's obligations to keep records

21B Preparing financial statements

21C Preparing financial statements: Orders in Council

22 Keeping of business and other records

22A Records required under subpart EW of Income Tax Act 2007

22B Further records required

23 Keeping of returns where information transmitted electronically

Other obligations to keep and provide records

24 Records to be kept by employer or PAYE intermediary

PAYE tax codes

24B PAYE tax codes

24C Tax code for payment that includes income-tested benefits

24D Tax code for parental leave payment

24E Tax code for employment as private domestic worker

24F Special tax code certificates

24G Use of incorrect tax codes

24H When entitlement to use tax code ends

24I PAYE tax code notification and certificate

PAYE certificates, notification, and applications

24J Proof of payment

24K Certain information required in returns

24L Schedular notification

24M Exemption certificates for schedular payments

24N Special tax rate certificates for schedular payments

24O Certain information required from agricultural, horticultural, or viticultural employers

24P Variation of requirements

Payroll donations

24Q Transfer of payroll donations by employers

RWT rates, certificates, and records

25A Use of inconsistent RWT rates

25 RWT withholding certificates

26 Records to be kept for RWT purposes

27 Provision of tax file numbers

28 Recipient of resident passive income to provide tax file number when RWT not withheld

28B Notification of investors’ tax rates

28C Person advising retirement savings scheme of retirement scheme prescribed rate

28D Information required from notified foreign investors

29 Shareholder dividend statement to be provided by company

30 Statement to shareholder when FDP credit attached to dividend

30A Statement to shareholder when CTR credit attached to dividend [Repealed]

30B Statement to share supplier when share user makes replacement payment under share-lending arrangement

30C Credit transfer notice to share supplier and Commissioner when share user transfers imputation credit under share-lending arrangement

30D Statements to shareholders when certain assets held by companies

31 Maori authority to give notice of amounts distributed

31B Notification requirements for PIEs

31C Notification requirements for multi-rate PIEs

32 Records of specified charitable, benevolent, philanthropic, or cultural bodies

32A Records to be provided by employer who contributes to superannuation fund

32B Certification requirements for withdrawals subject to section CS 1 of Income Tax Act 2007 [Repealed]

32C Certification requirements for transfers from superannuation funds [Repealed]

32D Disclosure requirements for purpose of continuity provisions and public unit trusts

Resident passive income

32E Applications for RWT exemption certificates

32F Calculation of annual gross income when threshold met

32G Evidence of annual gross income and consequences of failure to meet threshold

32H Providing RWT exemption certificate when person meets requirements

32I Providing RWT exemption certificate to person who does not meet requirements

32J RWT exemption certificates for unincorporated bodies

32K Failing to meet basis of exemption

32L Cancellation of RWT exemption certificates

Non-resident passive income

32M Persons with approved issuer status

Foreign dividends

[Repealed]

32N Information requirements when payments for foreign dividends reduced [Repealed]

Returns, etc

33 Returns of income

33A Annual returns of income not required

33B Return not required for certain scheduler gross income [Repealed]

33C Return not required for certain providers of personal services

34 Presumption as to authority of person making return

34B Commissioner to list tax agents

35 Power of Commissioner to prescribe forms

36 Commissioner may approve furnishing of return information by electronic means

36A Electronic format of employer monthly schedule and PAYE payment form

36AB Electronic return requirements for multi-rate PIEs

36B Other formats of employer monthly schedule

36BB Electronic format for details required for tax pooling intermediaries

36BC Electronic format for details required under subpart EK of Income Tax Act 2007

36C Particulars furnished in electronic format

36CA Electronic filing exemption for new businesses

36D Non-electronic filing of employer monthly schedule

36E Election available to other employers

37 Dates by which annual returns to be furnished

38 Returns to annual balance date

39 Consequential adjustments on change in balance date

39B Changes in return dates: taxpayers with provisional tax and GST liabilities

40 General requirements for returns

41 Annual returns by persons who receive family assistance credit

41A Returns by persons with tax credits for charitable or other public benefit gifts

41B Return by person applying for tax credit on redundancy payment

42 Returns by joint venturers, partners, and partnerships

42B Returns by look-through companies and owners of interests

43 Income tax returns and assessments by executors or administrators

43A Non-active companies may be excused from filing returns

44 Commissioner may in certain cases demand special returns, and make special assessments

44A Special returns by taxpayers affected by reduced deductions under Income Tax Act 2007

44B Special returns for financial arrangements

44C Certificates about trees

44D Natural product dealer certificate

45 New Zealand superannuitant to estimate other income [Repealed]

46 Employers to make returns as to employees

46A Accident Rehabilitation and Compensation Insurance Corporation to provide information as to recipients of weekly compensation

Fringe benefits

46B FBT returns for quarters

46C FBT returns for years

46D FBT returns: changes in payment periods

46E FBT returns: information for calculations

47 ESCT statements provided by employers and others

47B RSCT statements provided by retirement scheme contributor or retirement savings scheme

48 Special arrangements for supply of information by employer or PAYE intermediary to Commissioner

48B Reconciliation statement for retirement scheme contribution withholding tax

49 NRWT withholding certificates and annual reconciliations

50 Statement of payment of RWT

51 RWT withholding reconciliation statements

52 Disclosure of interest payments when no requirement to withhold RWT

53 Disclosure of certain financial arrangement transactions where interest payable to exempt person, etc

54 Information in relation to recipients of resident passive income

55 Consequence of inability to provide tax file numbers

56 Returns of special accounts

57 Maori authority to make returns of income

57B Return requirements for multi-rate PIEs

58 Returns of specified charitable, benevolent, philanthropic, or cultural bodies

59 Disclosure of trust particulars

59B Disclosure of foreign trust particulars

60 Returns of inter-related arrangements [Repealed]

61 Disclosure of interest in foreign company or foreign investment fund

62 Returns as to debentures and interest on debentures

63 Commissioner to be notified of bonus issue

64 Co-operative company to provide particulars of deemed dividend

65 Information to be furnished with return by petroleum mining entity making dispositions of shares or trust interests

65B Information to be furnished with return by entity apportioning interest expenditure under section FE 6B

66 Annual and other returns for PCA persons [Repealed]

67 Company dividend statement when ICA company declares dividend

68 Statement when FDP credit attached to dividend

68A Statement when CTR credit attached to dividend [Repealed]

68B Distribution statement required when Maori authority makes distribution

68C Tax credit relating to KiwiSaver and complying superannuation fund members: member credit form

68D Statements in relation to research and development tax credits: single persons

68E Statements in relation to research and development tax credits: internal software development groups

68F Requirements for statements in relation to research and development tax credits

69 Annual ICA return

69B Annual Maori authority credit account return required by Maori authority

70 Annual ICA return to be furnished if: required by Commissioner; requirement for imputation credit account ceases; or balance retrospectively reduced to debit or to less than refund

70B Annual Maori authority credit account return to be furnished in particular cases

71 Annual FDPA return

Foreign dividends

71B Return requirements for refunds: foreign dividends

72 Annual FDPA return to be furnished where Commissioner so requires, or where company ceases to be resident in New Zealand

73 Annual FDPA returns of consolidated groups

74 Annual ICA return to be furnished in respect of consolidated imputation group

75 Notification of amalgamation to Commissioner

76 Amalgamated company to assume rights and obligations of amalgamating company

77 Company electing to maintain branch equivalent tax account to furnish amended annual ICA return [Repealed]

78 Annual and other returns for BETA persons

78B Applications for tax credits

78C Disclosure when changes occur

78D Evidential requirements for tax credits

78E Information for underlying foreign credits [Repealed]

78F Time for providing information in relation to underlying foreign credits [Repealed]

79 Other annual returns

80 Commissioner may require other returns to be made

Part 3A
Income statements

80A Application

80B Notification required that taxpayer not subject to this Part

80C Requests for income statements

80D Commissioner must issue income statement

80E Particulars to be included in income statement

80F Taxpayer obligations and assessment on receipt of income statement

80G Income statement deemed return

80H Income statement deemed assessment

80I Deemed matters

Part 3B
Credits of tax

Applying for payment by instalment

80KA Applications for payment of tax credit by instalment

80KB Contents of application

80KC When tax file number of child does not accompany application

80KD What Commissioner must do on receipt of application

Notices of entitlement

80KE Notices of entitlement

80KF Effect of giving notice of entitlement

80KG Notifying Commissioner of events affecting notice of entitlement

80KH Cancellation of notice of entitlement

Payments to holders of notices of entitlement

80KI Payment of tax credit by instalment by Commissioner

80KJ Delay in providing notice of entitlement

80KK Payment by instalment of family tax credit (without abatement)

80KL Payment of instalments into accounts

80KLB Recovery of excess tax credits

80KM Summary of instalments paid

Payments of tax credit by chief executive

80KN Payment of tax credit by chief executive

80KO Determining WFF tax credit

80KP When entitlement to income-tested benefit ends

80KQ No authority to pay WFF tax credit

80KR Request by chief executive to stop payment of WFF tax credit

80KS Request by person to stop or re-start payment of tax credit

80KT Details of payments of tax credits

When Commissioner takes over payment of tax credit from chief executive

80KU Payment of tax credit taken over by Commissioner

80KV Statement of family scheme income

80KW Effect of extra instalment on entitlement to tax credit

Part 4
Secrecy

81 Officers to maintain secrecy

81A Disclosure of information under approved information sharing agreement

81BA Government agency communication

81B Disclosure of information concerning tax advisor or person acting as tax agent

82 Disclosure of information for matching purposes

82A Disclosure of information to prevent cessation of benefit payments

83 Disclosure of information for purposes of entitlement card

84 Disclosure of information for WFF tax credit double payment identification

85 Disclosure of address information in relation to debtors

85A Disclosure of certain information in relation to fines defaulters

85B Disclosure of information for purposes of mutual assistance provision contained in social security agreement

85C Use and supply of information supplied for purposes of section 85B

85D Ministry of Education to provide information as to study status of student loan borrowers [Repealed]

85E Disclosure of information for assessment of levies

85F Disclosure of information for verification of government screen production payment entitlement

85G Disclosure of information in relation to Working for Families tax credits

85GB Government Actuary to provide information to Commissioner for purpose of administration of KiwiSaver Act 2006 [Repealed]

85GC Use of information supplied under section 85GB [Repealed]

85H Disclosure of information for purposes of Parental Leave and Employment Protection Act 1987

85I Use of Parental Leave and Employment Protection Act 1987 and parental tax credit information to determine entitlement

85J Disclosure of information for administration of Australian wine producer rebate

85K New Zealand Police and Ministry of Justice to provide information concerning sex offences for purposes of child support exemptions

85L Use of information supplied under section 85K

86 Other persons to maintain secrecy

87 Further secrecy requirements

88 Secrecy obligations not to prevent disclosure in arrangements for relief from double taxation and exchange of information

89 Commissioner to inform Minister where funds of gift-exempt body applied for non-charitable purpose, etc

Part 4A
Disputes procedures

89A Purpose of this Part

89AB Response periods

Notices of proposed adjustment

89B Commissioner may issue notices of proposed adjustment

89C Notices of proposed adjustment required to be issued by Commissioner

89D Taxpayers and others with standing may issue notices of proposed adjustment

89DA Taxpayer may issue notice of proposed adjustment for taxpayer assessment

89E Election of small claims jurisdiction of Taxation Review Authority [Repealed]

89F Content of notice of proposed adjustment

89G Issue of response notice

89H Deemed acceptance

89I Circumstances where disputant may not challenge adjustment

89J Where Commissioner accepts adjustment proposed by disputant

89K Late actions deemed to occur within response period

89L Application to High Court

Disclosure notices

89M Disclosure notices

89N Completing the disputes process

89O Test cases

89P Challenge notice for taxpayer-initiated disputes

Part 5
Determinations

90 Determinations in relation to financial arrangements

90AA Application of determinations made under section 90

90AB Application for determination

90AC Determinations relating to financial arrangements

90AD Notification of determinations and notices

90AE Four-year period in which determination not required to be applied

90AF Imputation arrangement to obtain tax advantage

90AG Maori authority arrangements to obtain tax advantage

90A Determinations in relation to apportionment of interest costs

91 Determinations in relation to petroleum mining operations

91AA Determinations in relation to standard-cost household service

91AAB Determinations relating to types and diminishing values of listed horticultural plants

Determinations relating to prepayments

91AAC Exemptions from section EA 3 of Income Tax Act 2007

Determinations relating to livestock

91AAD Determination on methods for calculating value of specified livestock under national standard cost scheme

91AAE Publication and revocation of determinations relating to livestock

Determinations relating to depreciation

91AAF Determination on economic rate

91AAG Determination on special rates and provisional rates

91AAH Commissioner may decline to issue special rate or provisional rate

91AAI Effect on special rate of change in circumstances

91AAJ Disputing or challenging determination

91AAK Notice of setting of economic rate

91AAL Determination on maximum pooling value

91AAM Applications for determinations

Determinations relating to environmental restoration expenditure

91AAN Determinations on rates for diminishing value of environmental expenditure

Determinations relating to calculation of FIF income using fair dividend rate method

91AAO Determination on type of interest in FIF and use of fair dividend rate method

Determinations relating to non-attributing active CFCs

91AAQ Determination on insurer as non-attributing active CFC

Determinations relating to relocation payments

91AAR Determination relating to eligible relocation expenses

Determinations relating to family scheme income

91AAS Declaration of emergency event for purposes of family scheme income

Part 5A
Binding rulings

91A Purpose of this Part

91B Interpretation

91C Taxation laws in respect of which binding rulings may be made

Public rulings

91D Commissioner may make public rulings

91DA Content and notification of a public ruling

91DB Effect of a public ruling

91DC Application of a public ruling

91DD Extension of a public ruling

91DE Withdrawal of a public ruling

Private rulings

91E Commissioner to make private rulings on request

91EA Effect of a private ruling

91EB Application of a private ruling

91EC Applying for a private ruling

91ED Disclosure requirements

91EE Commissioner may request further information

91EF Assumptions in making a private ruling

91EG Right to consultation

91EH Content and notification of a private ruling

91EI Withdrawal of a private ruling

91EJ Treatment of information

Product rulings

91F Commissioner may make product rulings

91FA Effect of a product ruling

91FB Application of a product ruling

91FC Applying for a product ruling

91FD Disclosure requirements

91FE Commissioner may request further information

91FF Assumptions in making a product ruling

91FG Right to consultation

91FH Content and notification of a product ruling

91FI Extension of a product ruling [Repealed]

91FJ Withdrawal of a product ruling

91FK Treatment of information

Rulings generally

91G Effect of legislative change on binding ruling

91GA Applying for ruling on effect of change in legislation

91GB Commissioner to make status rulings on request

91GC Requirements for status ruling applications

91GD Commissioner may request further information

91GE Right to consultation

91GF Content of status ruling

91GG Notification of status ruling

91GH Effect of status ruling

91GI Effect of minor error on binding ruling

91H Applications for rulings not to affect obligations and powers

91I Regulations

91J Commissioner may not issue ruling to applicant with outstanding debts

Part 6
Assessments

92 Taxpayer assessment of income tax

92AAA Determination on cost of timber

92AA Assessment for tax credits under Part M of Income Tax Act 2007

92AB Assessments of liabilities of shareholders of qualifying companies

92A Basic rates of income tax

92B Taxpayer assessment of GST

93 Assessment of FBT

93B Trustee income: Commissioner’s power to assess

93C Foreign tax credits: Commissioner’s power to amend assessments

94 Assessment of qualifying company election tax and additional tax

94A Assessment of shortfall penalties

94B Liability of wholly-owned group and other bodies to pay shortfall penalties

95 Assessment of withdrawal tax

96 Assessment of New Zealand superannuitant surcharge [Repealed]

97 Assessment of imputation penalty tax

97B Assessment of Maori authority distribution penalty tax

98 Assessment of ESCT

98B Assessment of retirement scheme contribution withholding tax

99 Assessment of RWT

100 Assessment of NRWT

101 Assessment of further income tax

101B Assessment of imputation additional tax

102 Assessment of FDP [Repealed]

103 Assessment of further FDP [Repealed]

103A Assessment of FDP relating to conduit tax relief [Repealed]

104 Assessment of FDP penalty tax [Repealed]

104B Determination of credits and debits in memorandum accounts

105 Assessments and determinations made by electronic means

106 Assessment where default made in furnishing returns

107 Amended assessment for income tax where return date between 31 March and 1 October

107A Time bar for amendment of assessments

108 Time bar for amendment of income tax assessment

108A Time bar for amending GST assessment

108B Extension of time bars

109 Disputable decisions deemed correct except in proceedings

109A Transitional provision affecting assessments

110 Evidence of returns and assessments

111 Commissioner to give notice of assessment to taxpayer

112 Commissioner to make determination of life insurer's policyholder net loss [Repealed]

113 Commissioner may at any time amend assessments

113A Correction of minor errors in subsequent returns

113B Amended assessments if dividend recovered or repaid

113C Amended assessments for attributed repatriation dividends

113D Amended assessments for research and development tax credits

114 Validity of assessments

115 Determination of claims for foreign tax credits [Repealed]

116 Notice of foreign tax credit determination to taxpayer [Repealed]

117 Foreign tax credit determination deemed correct except in proceedings on objection [Repealed]

118 Evidence of foreign tax credit determination [Repealed]

119 Commissioner may determine amount of provisional tax

119A Amount of provisional tax based on 1997–98 or earlier income year [Repealed]

Part 7
Interest

120 Commissioner to pay interest on certain excess tax [Repealed]

120A Purpose of this Part and nature of interest

120AA Application of Part

120B Persons excluded

General provisions

120C Definitions

120D Liability to pay interest

120E Amount of interest payable

120EA Amount of interest payable to or by life insurers [Repealed]

120F Interest priority and rights of Commissioner

120G Payment date

120H Setting and varying interest rates

120I No right to object to interest

Specific provisions

120J Purpose of specific provisions

120K Instalments of and due dates for provisional tax [Repealed]

120KB Provisional tax instalments and due dates generally

120KC Residual income tax of new provisional taxpayer

120KD Provisional tax instalments in transitional years

120KE Provisional tax and rules on use of money interest

120L Meaning of unpaid tax and overpaid tax for provisional tax purposes

120M Where provisional tax paid by company does not count as overpaid tax

120N Variation to definition of date interest starts for provisional tax

120O Variation to definition of date interest starts

120OB Variation to definitions for determining interest chargeable or payable to PAYE intermediaries

120OC Application of sections 120A, 120AA and 120D to 120I to PAYE intermediaries

120OD Application of sections 120A, 120AA and 120C to 120I to intermediaries who operate tax pooling accounts

120OE Interest paid on deposits in tax pooling accounts

120P Spreading tax liability or apportioning income back over earlier income years

120PA Applying tax credit for supplementary dividend to earlier income year

120Q Due date for underestimation penalty tax

120R Special provision for FDP [Repealed]

120S Amount in nature of interest to be added to fringe benefit tax paid on annual or income year basis [Repealed]

120T Interest on deferrable tax

120U Bond provided for obligation to withhold or deduct amount of tax

120V Interest on overpaid RWT

120W Commissioner's official opinions

121 Interest to be charged where residual income tax exceeds provisional tax [Repealed]

122 Interest on tax overpaid [Repealed]

123 Amount in nature of interest to be added to fringe benefit tax paid on annual or income year basis [Repealed]

124 Interest to be charged and payable with respect to certain dividend withholding payments [Repealed]

Part 8
Objections

124A Application of Part 8

125 Certain rights of objection not conferred

126 Procedure for objections to assessments

127 Commissioner to consider objections and may amend assessment

128 Payment of disputed tax where competent objection lodged

128A Waiver of payment or security [Repealed]

129 Determination of objection not to affect other matters

130 Objections to allowance determinations

131 Objections to determinations [Repealed]

132 Application of this Part to objections to foreign tax credit determinations [Repealed]

133 Wrong PAYE withholding determination a ground for objection

Case stated

134 Objector may require that objections be submitted to Taxation Review Authority

135 Powers of Taxation Review Authority on determination of objection or case stated

136 When objection may be referred directly to High Court

137 Test case procedure

138 Determination by Taxation Review Authority of objection in relation to allowances

Part 8A
Challenges

138A Application of this Part

138B When disputant entitled to challenge assessment

138C When disputant entitled to challenge disputable decision other than assessment

138D Challenge may in exceptional circumstances be commenced after response period

138E Certain rights of challenge not conferred

138F Challenging disputable decisions which are not assessments

138G Effect of disclosure notice

138H Application to strike out proceedings

138I Payment of disputed tax

138J Waiver of payment or security [Repealed]

138K Determination of challenge not to affect other matters

138L Challenging civil penalties

138M Wrong PAYE withholding determination a ground for challenge

138N Proceedings may be transferred to different hearing authorities

138O Transfer from small claims jurisdiction of Taxation Review Authority [Repealed]

138P Powers of hearing authority

138Q Challenges designated as test cases

138R Stay of proceedings for similar cases

138S Challenge to be heard before Taxation Review Authority

Part 9
Penalties

139 Purposes of this Part

Civil penalties

139A Late filing penalty for certain returns

139AAA Late filing penalty for GST returns

139AA Non-electronic filing penalty

139B Late payment penalty

139BA Imposition of late payment penalties when financial relief sought

139C Late payment penalty and provisional tax

140 Where another person withholds RWT

140A Underestimation penalty where income tax underestimated as at final instalment date [Repealed]

140B Imputation penalty tax payable where end of year debit balance

140BB Transitional imputation penalty tax payable in some circumstances [Repealed]

140C Transitional imputation penalty tax payable in some circumstances [Repealed]

140CA Transitional FDP penalty tax payable in some circumstances [Repealed]

140CB Maori authority distribution penalty tax payable where end of year debit balance

140D Application of other provisions of Act to imputation penalty tax and dividend withholding payment penalty tax [Repealed]

140DB Application of other provisions of Act to Maori authority distribution penalty tax [Repealed]

141 Tax shortfalls

141AA Shortfall penalty if non-resident contractor relieved from all liability to pay tax on contract payment

141A Not taking reasonable care

141B Unacceptable tax position

141C Gross carelessness

141D Abusive tax position

141E Evasion or similar act

141EA Shortfall penalty and provisional tax

141EB Promoter penalties

141EC Definition of promoter

141ED Not paying employer monthly schedule amount

141F Commissioner to determine portions in which shortfall penalty payable by taxpayer and officers of taxpayer

141FB Reduction of penalties for previous behaviour

141FC Loss attributing qualifying companies—reduction of shortfall penalties [Repealed]

141FD Shareholders of loss-attributing qualifying companies [Repealed]

141G Reduction in penalty for voluntary disclosure of tax shortfall

141H Reduction for disclosure of unacceptable tax position

141I Reduction where temporary shortfall

141J Limitation on reduction of shortfall penalty

141JAA Shortfall penalty for not taking reasonable care or for taking unacceptable tax position may not be more than $50,000

141JA Application of Part 9 to non-filing taxpayers

141JB Application of Part 9 to PAYE intermediaries

141K Increased penalty for obstruction

141KB Discretion to cancel some shortfall penalties [Repealed]

141L Duty of Commissioner to report on application of penalties

142 Due date for payment of late filing penalty

142A New due date for payment of tax that is not a penalty

142B Due date for shortfall penalties

142C Due date for payments by officers

142D Due date for repayment of excess refund or credit of tax

142E Due dates for payment of imputation penalty tax

142F Due date for payment of deferrable tax

142G Due date for payment of non-electronic filing penalty

Criminal penalties

143 Absolute liability offences

143A Knowledge offences

143B Evasion or similar offence

143C Offence for failure of officers of department to maintain secrecy

143D Offence for failure of other persons to maintain secrecy

143E Secrecy requirements where information given by department

143F Offence in relation to inquiries

143G Offence in relation to court orders

143H Obstruction

144 Certain offences in relation to Stamp and Cheque Duties Act 1971 [Repealed]

145 Penalties for offences for which no specific penalty imposed

146 Publication of names [Repealed]

147 Employees and officers

147B Directors and officers of resident foreign trustee

148 Aiding or abetting

Proceedings and evidence

149 Imposition of civil and criminal penalties

149A Standard of proof and onus of proof

149B Proceedings for offences

150 Charging document may charge several offences

150A Charging document may be filed within 10 years for income tax and GST offences

150B Charging document may be filed within 4 years for stamp duty and gaming duty offences

150C Authority to file charging document

150D Evidence in proceedings for failure to furnish returns or information

150E Evidence inconsistent with instrument not admissible to reduce stamp duty [Repealed]

151 Non-presentation of instrument for stamping [Repealed]

152 Evidence of financial or property transactions

Special additional taxes

[Repealed]

153 Imputation penalty tax payable where end of year debit balance of imputation credit account [Repealed]

154 Dividend withholding payment penalty tax payable where end of year debit balance [Repealed]

155 Application of other provisions of this Act to imputation penalty tax and dividend withholding payment penalty tax [Repealed]

Part 10
Recoveries

General

156 Mode of recovery of unpaid tax

156A Recovery of civil penalties

157 Deduction of tax from payments due to defaulters

157A Application of Parts 7 and 9 to defaulters

158 Procedure in High Court where defendant absent from New Zealand

159 Procedure in District Court where defendant absent from New Zealand

160 Commissioner may appear in legal proceedings by officer of Public Service

161 Costs against Commissioner

162 Proceedings not affected by vacancy or change in office of Commissioner

163 No limitation of action to recover tax

164 Crown Proceedings Act 1950 not affected

165 Recovery of tax paid by one person on behalf of another

165AA Recovery of tax paid by superannuation fund [Repealed]

165A Recovery of excess tax credits allowed

165B Recovery of overpaid refunds: NRWT

166 Tax paid in excess may be set off against additional tax when assessment reopened

166B Shipping business of absentee taxpayer

Deductions

167 Recovery of tax and payments from employers or PAYE intermediaries

168 Employer or PAYE intermediary failing to withhold or deduct tax or payments

169 Unpaid tax payments, etc, to constitute charge on employer's or PAYE intermediary's property

170 Recovery of RWT

171 Person failing to withhold RWT

172 Unpaid RWT constitutes charge on payer's property

173 Overpayment of family tax credit, etc [Repealed]

Part 10A
Tax recovery agreements

173A Application of Part

173B Definitions

173C Tax recovery agreements

173D Taxes that may be recovered

173E Requests for assistance

173F Scope of assistance

173G Limitations on assistance in recovery

173H Contested act of assistance

173I Rights of appeal

173J Certificates given by Commissioner

Part 10B
Transfers of excess tax

173K Application

Transfer rules

173L Transfer of excess tax within taxpayer's accounts

173M Transfer of excess tax to another taxpayer

173MB Limitation on transfer by PAYE intermediary

173N Transfer of excess tax—tax credits

173O Transfer of excess tax if no date specified by taxpayer

Application of transfer rules to excess provisional tax

173P Transfer of excess provisional tax if provisional tax paid is more than taxpayer's provisional tax liability, determined before assessment

173Q Transfer of excess provisional tax if taxpayer estimates or revises estimate of residual income tax, determined before assessment

173R Transfer of excess tax if provisional tax is more than taxpayer's residual income tax, determined after assessment

Miscellaneous

173S Transfers of interest on overpaid tax

173T Application of excess tax if taxpayer has unsatisfied tax liability

173U Transfers of excess financial support

Part 11
Remission, relief, and refunds

174 Application of Part to tax years before 1994

174AA Power of Commissioner in respect of small amounts of refunds or tax payable

174A Partial refunds of GST

175 Small amounts of additional tax, etc, not to be charged [Repealed]

176 Recovery of tax by Commissioner

177 Taxpayer may apply for financial relief

177A How to apply serious hardship provisions

177B Instalment arrangements

177C Write-off of tax by Commissioner

177CA Proof of debt

177D Relief to taxpayers to whom new start grants payable

178 Remission of underestimation penalty tax [Repealed]

179 Relief from additional tax or incremental tax [Repealed]

180 Remissions and refunds of imputation penalty tax

181 Remissions and refunds of FDP penalty tax [Repealed]

181B Remissions and refunds of Maori authority distribution penalty tax

181C Remission of late payment penalties and interest incurred due to obligation to pay further income tax

181D Remission of late payment penalties and interest incurred due to obligation by Maori authority to pay further income tax

182 Relief from additional tax incurred due to default in payment of tax [Repealed]

183 Obligation to pay tax on foreign investment fund income able to be suspended [Repealed]

183AA Remission for GST transitional taxable periods

183A Remission for reasonable cause

183ABA Remission in circumstances of emergency event

183AB Cancellation of late payment penalties imposed before 1 April 2002

183B Cancellation of late payment penalties under instalment arrangement [Repealed]

183C Cancellation of interest

183CA Cancellation of interest charged on unpaid provisional tax

183CB Cancellation of interest charged on payments under PAYE rules or provisional tax rules arising from work in Canterbury earthquake recovery programme

183D Remission consistent with collection of highest net revenue over time

183E Remission of interest if unpaid tax remitted

183F Small amounts of penalties and interest not to be charged

183G Refunds by Commissioner

183H Remission on application

183I Time when cancellation takes effect

184 Refund of tax paid on income subsequently exempted by Order in Council

184AA Refund of tax: deductible amounts of interest

184A Refund of tax paid in excess made by direct credit to bank account

184B Tax type that may be direct credited to bank account

185 Payment out of Crown Bank Account

185B Application of particular provisions in this Part to PAYE intermediaries

185C Establishment of Listed PAYE Intermediary Bank Account

185D Payments into, and out of, Listed PAYE Intermediary Bank Account

Part 11B
Foreign account information-sharing agreements

185E Purpose

185F Permitted choices in relation to foreign account information-sharing agreements

185G Obligations related to foreign account information-sharing agreements: registration

185H Obligations related to foreign account information-sharing agreements: due diligence

185I Obligations related to foreign account information-sharing agreements: information for NZ competent authority

185J Obligations related to foreign account information-sharing agreements: information for third parties

185K Information provided in form prescribed by Commissioner

185L Foreign account information-sharing agreements: anti-avoidance

185M Timeframes not specified

Part 12
Offences and penalties

[Repealed]

Penal tax

[Repealed]

186 Penal tax for evasion of deficient tax [Repealed]

187 Penal tax deemed to be of the same nature as deficient tax [Repealed]

188 Assessment of penal tax [Repealed]

189 Date for payment of penal tax [Repealed]

190 Objections to assessments of penal tax [Repealed]

191 Recovery of penal tax [Repealed]

192 Recovery of penal tax from executors or administrators [Repealed]

193 Recovery of penal tax not affected by conviction of taxpayer [Repealed]

194 Penal tax for default in making or paying tax deduction [Repealed]

195 Penal tax for failure to deduct specified superannuation contribution withholding tax [Repealed]

196 Penal tax for default in making or paying resident withholding tax deductions [Repealed]

197 Penal tax for default in making or paying deductions of non-resident withholding tax [Repealed]

Offences

[Repealed]

198 Offences relating to obstruction of departmental functions [Repealed]

199 Penalty for failure to furnish returns, etc [Repealed]

200 Offence for failure to provide information requested by Commissioner [Repealed]

201 Offence for officers and employees of corporate bodies [Repealed]

202 Further offences for officers and employees of corporate bodies [Repealed]

203 Offence for failure of officers of department to maintain secrecy [Repealed]

204 Offence for failure of other persons to maintain secrecy [Repealed]

205 Secrecy requirements where information given by department [Repealed]

206 Offences relating to tax deductions [Repealed]

207 Offences for failure to deduct specified superannuation contribution withholding tax [Repealed]

208 Offences relating to resident withholding tax [Repealed]

209 Offences for failure to deduct non-resident withholding tax [Repealed]

210 Offences relating to dividend withholding payments [Repealed]

211 Offences for failure to make deductions [Repealed]

212 Offences relating to family support [Repealed]

213 Offences in relation to inquiry before a District Court Judge [Repealed]

214 Offences in relation to inquiry by Commissioner [Repealed]

Proceedings

[Repealed]

215 Proceedings to be taken summarily [Repealed]

216 Information may charge several offences [Repealed]

217 Information may be laid within 10 years [Repealed]

218 Authority to lay information [Repealed]

Evidence

[Repealed]

219 Evidence in proceedings for failure to furnish returns or information [Repealed]

220 Evidence of financial or property transactions [Repealed]

Penalties

[Repealed]

221 Penalties for offences [Repealed]

222 Penalties for failure to meet various tax obligations [Repealed]

223 Publication of names of tax evaders [Repealed]

Part 13
Miscellaneous

224 Regulations—Inland Revenue Acts generally

225 Regulations

225AA Regulations: co-operative dairy and marketing companies

225A Power to make interim payments of WFF tax credit

225B Order in Council amending Schedule 27

225C Order in Council amending Schedule 38 of Income Tax Act 2007

225D Regulations: community housing trusts and companies

226 Power to extend time for doing anything under Act

226B Business group amnesties

226C Secure credit or debit card payments and fees

Part 14
Transitional provisions and savings

227 Transitional provisions and savings

228 Commissioner and department

229 References to department, etc

Schedule
Inland Revenue Acts

Tax Administration Amendment Act (No 2) 1996

Taxation (Core Provisions) Act 1996

Taxation (Remedial Provisions) Act 1997

Taxation (Beneficiary Income of Minors, Services-Related Payments and Remedial Matters) Act 2001

Taxation (Relief, Refunds and Miscellaneous Provisions) Act 2002

Income Tax Act 2004

Income Tax Act 2007

Taxation (Limited Partnerships) Act 2008

Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009

Taxation (Tax Administration and Remedial Matters) Act 2011

Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012

Reprint notes


An Act to reorganise and consolidate the law relating to the Inland Revenue Department and the administration of income tax matters