143A Knowledge offences

(1)

A person commits an offence against this Act if the person—

(a)

knowingly does not keep the documents required to be kept by a tax law; or

(ab)

knowingly fails to register with a foreign government agency as required by Part 11B; or

(ac)

knowingly fails to provide information, including a self-certification, to another person when required to do so under Part 11B; or

(b)

knowingly does not provide information (including tax returns and tax forms) to the Commissioner or any other person when required to do so by a tax law; or

(c)

knowingly provides altered, false, incomplete, or misleading information (including tax returns and tax forms) to the Commissioner or any other person in respect of a tax law or a matter or thing relating to a tax law; or

(d)

knowingly applies or permits the application of the amount of a deduction or withholding of tax made or deemed made under a tax law for any purpose other than in payment to the Commissioner; or

(e)

knowingly does not make a deduction or withholding of tax required to be made by a tax law; or

(f)

knowingly issues 2 tax invoices (as defined in the Goods and Services Tax Act 1985) in respect of the same taxable supply; or

(g)

in relation to a recipient of a supply of remote services from a non-resident supplier, and for the purposes of avoiding the payment of goods and services tax, knowingly provides altered, false, or misleading information relating to their residence in New Zealand or their status as a registered person.

(2)

No person may be convicted of an offence against subsection (1)(ac) for knowingly failing to provide information, including a self-certification, to another person or against subsection (1)(b) for knowingly not providing information (other than tax returns and tax forms) to the Commissioner if the person proves that, as and when the person was required to provide the information—

(a)

the person did not have the information in the person’s knowledge, possession or control; and

(b)

no non-resident, who under section 17(1C) was controlled directly or indirectly by the person, had the information in the non-resident’s knowledge, possession or control.

(3)

[Repealed]

(4)

No person may be convicted of an offence under subsection (1)(d) for knowingly applying or permitting the application of an amount of withholding or deduction of tax for a purpose other than in payment to the Commissioner, if the person satisfies the court that the amount of the deduction or withholding has been accounted for, and that the person’s failure to account for it within the prescribed time was due to illness, accident, or other cause beyond the person’s control.

(5)

Without limiting any other provision of this Act, the term withholding or deduction of tax in subsection (4) includes—

(a)

a PAYE income payment:

(b)

a combined tax and earner-related payment:

(c)

an amount of tax withheld for—

(i)

resident passive income:

(ii)

non-resident passive income:

(iii)

an employer’s superannuation cash contribution:

(d)

a deduction of contribution that was payable under Part 3, subpart 1 of the KiwiSaver Act 2006:

(e)

a salary or wage deduction made under the Student Loan Scheme Act 2011:

(f)
[Repealed]

(g)

an amount of RSCT withheld:

(h)

amounts of compulsory employer contributions that must be paid under Part 3, subpart 3A of the KiwiSaver Act 2006 to the Commissioner, including an amount of compulsory employer contributions unpaid, specified in a notice under section 101I(5) of that Act.

(6)

[Repealed]

(7)

Subject to subsections (8) and (9), a person who is convicted of an offence against subsection (1) is liable—

(a)

the first time the person is convicted in relation to a particular type of offence, to a fine not exceeding $25,000; and

(b)

on every other occasion the person is convicted for the same type of offence, to a fine not exceeding $50,000.

(8)

A person who is convicted of a knowledge offence against subsection (1)(d), where the offence does not relate to—

(a)

section 157 of this Act; or

(b)

section 43 of the Goods and Services Tax Act 1985; or

(c)

another tax law specifying obligations in relation to withholdings or deductions of tax that operates by incorporating, or by reference to, section 157 of this Act,—

is liable on each occasion the person is convicted of that type of offence to—

(d)

imprisonment for a term not exceeding 5 years; or

(e)

a fine not exceeding $50,000; or

(f)

both.

(9)

A person who is convicted of an offence against subsection (1)(b) or subsection (1)(c) relating to information required to be provided under section 59 or section 61 is liable to a fine not exceeding $50,000.

Section 143A: inserted, on 26 July 1996, by section 43 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).

Section 143A(1)(a): amended, on 29 August 2011, by section 183 of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Section 143A(1)(ab): inserted, on 1 July 2014, by section 175 of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).

Section 143A(1)(ac): inserted, on 1 July 2017, by section 19(1) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).

Section 143A(1)(g): inserted, on 1 October 2016, by section 83 of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).

Section 143A(2): replaced, on 25 November 2003, by section 134 of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).

Section 143A(2): amended, on 1 July 2017, by section 19(2)(a) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).

Section 143A(2): amended, on 1 July 2017, by section 19(2)(b) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).

Section 143A(3): repealed (with effect on 30 June 2009), on 6 October 2009 (applying for all income years beginning on or after 1 July 2009), by section 687(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section 143A(5)(a): replaced, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).

Section 143A(5)(b): replaced, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).

Section 143A(5)(c): replaced, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).

Section 143A(5)(c)(iii): amended (with effect on 1 April 2008), on 2 November 2012, by section 202 of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).

Section 143A(5)(d): replaced, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).

Section 143A(5)(e): replaced, on 1 April 2012, by section 223 of the Student Loan Scheme Act 2011 (2011 No 62).

Section 143A(5)(f): repealed, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).

Section 143A(5)(g): replaced, on 1 April 2008, by section 262(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section 143A(5)(h): inserted, on 1 April 2009, by section 21 of the Taxation (KiwiSaver) Act 2007 (2007 No 110).

Section 143A(6): repealed (with effect on 30 June 2009), on 6 October 2009 (applying for all income years beginning on or after 1 July 2009), by section 687(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).