183A Remission for reasonable cause

(1)

This section applies to—

(a)

a late filing penalty:

(b)

a non-electronic filing penalty:

(c)

a late payment penalty:

(d)

imputation penalty tax imposed by section 140B:

(e)
[Repealed]

(f)

Maori authority distribution penalty tax imposed by section 140CB:

(g)

a shortfall penalty imposed by section 141AA:

(h)

a civil penalty imposed under section 215 of the KiwiSaver Act 2006:

(i)

a penalty for not paying employer monthly schedule amount imposed by section 141ED.

(1A)

The Commissioner may remit the penalty if the Commissioner is satisfied that—

(a)

a penalty to which this section applies arises as a result of an event or circumstance beyond the control of a taxpayer; and

(b)

as a consequence of that event or circumstance the taxpayer has a reasonable justification or excuse for not furnishing the tax return or an employer monthly schedule, or not furnishing an employer monthly schedule in a prescribed electronic format, or not paying the tax on time; and

(c)

the taxpayer corrected the failure to comply as soon as practicable.

(2)

Without limiting the Commissioner’s discretion under subsection (1), an event or circumstance may include—

(a)

an accident or a disaster; or

(b)

illness or emotional or mental distress.

(3)

An event or circumstance does not include—

(a)

an act or omission of an agent of a taxpayer, unless the Commissioner is satisfied that the act or omission was caused by an event or circumstance beyond the control of the agent—

(i)

that could not have been anticipated; and

(ii)

the effect of which could not have been avoided by compliance with accepted standards of business organisation and professional conduct; or

(b)

a taxpayer’s financial position.

Section 183A: replaced (with effect on 1 April 1997), on 23 September 1997, by section 104(1) of the Taxation (Remedial Provisions) Act 1997 (1997 No 74).

Section 183A(1): replaced, on 1 April 2005, by section 138 of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).

Section 183A(1)(e): repealed (with effect on 30 June 2009), on 6 October 2009 (applying for all income years beginning on or after 1 July 2009), by section 697(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section 183A(1)(h): inserted, on 1 December 2006, by section 231 of the KiwiSaver Act 2006 (2006 No 40).

Section 183A(1)(h): amended, on 1 April 2009, by section 23 of the Taxation (KiwiSaver) Act 2007 (2007 No 110).

Section 183A(1)(h): amended, on 1 April 2008, by section 264 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section 183A(1)(i): inserted, on 1 April 2008, by section 264 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section 183A(1A): inserted, on 7 October 1998 (applying to penalties that arise on and after 1 April 1999), by section 39(1) of the Taxation (Simplification and Other Remedial Matters) Act 1998 (1998 No 101).