Tax Administration Act 1994

If you need more information about this Act, please contact the administering agency: Inland Revenue Department
4A Construction of certain provisions

(1)

In this Act—

(a)

a provision referring to a tax liability or to a tax obligation, or to something a person must do, refers to a taxpayer’s liability or obligation under a tax law:

(b)

a provision referring to a taxpayer taking a tax position or to a taxpayer’s tax position, also refers to the taxpayer’s—

(i)

claiming or returning or not claiming or returning the tax position; or

(ii)

paying, deducting, or withholding, or not paying, not deducting, or not withholding, an amount of tax; or

(iii)

being placed in the tax position,—

whether knowingly or intentionally or involuntarily:

(c)

a provision referring to a tax position taken in a tax return refers to a tax position taken explicitly or implicitly in the tax return:

(ca)

a provision referring to a tax position taken under Part 3, subpart 3B refers to a tax position taken explicitly or implicitly in an individual’s final account for a tax year, whether or not the tax position arises from information included by the Commissioner in the individual’s pre-populated account:

(d)

a provision referring to a taxpayer’s obligation to pay an amount of tax refers to the taxpayer’s obligation to pay tax to the Commissioner:

(e)

a provision referring to a taxpayer’s obligation to provide a tax return refers to the taxpayer’s obligation to complete and provide the tax return to the Commissioner:

(f)

a provision referring to a taxpayer’s obligation to provide a tax form refers to the taxpayer’s obligation to complete and provide the tax form to the person entitled to it:

(g)

a provision referring to any tax (including, for the avoidance of doubt, a penalty) or interest is to be taken to be a reference to all, or part, or the relevant part, of the tax or interest.

(2)

For the purposes of this Act—

(a)
[Repealed]

(b)

an amount of tax is deemed to be withheld when payment is made of the net amount of a PAYE income payment:

(bb)

a contribution deduction under the KiwiSaver Act 2006 is deemed to be made when payment is made of the net amount of a PAYE income payment:

(c)

the amount withheld or deducted described in paragraph (b) or paragraph (bb) is deemed to have been applied for a purpose other than in payment to the Commissioner if the amount is not paid to the Commissioner by the relevant due date:

(d)

if the amount withheld or deducted described in paragraph (b) or paragraph (bb) is not paid to the Commissioner by the due date, the amount is deemed to be unpaid tax:

(e)

despite paragraph (d), and only for the purposes of Part 10B, the amount of tax deemed to be withheld referred to in paragraph (b) is treated as tax paid although it may not have been paid to the Commissioner by the due date.

(3)

References in this Act to tax liabilities for withholding or deducting an amount of tax, or making or accounting for amounts deducted or amounts withheld, under the PAYE rules, to the extent necessary, are also to be construed as including references to liabilities for withholding, deducting, making, or accounting for,—

(a)

deductions of premiums payable under the Accident Rehabilitation and Compensation Insurance Act 1992 or regulations made under that Act or the Accident Insurance Act 1998 or a regulation made under that Act; or

(aa)

deductions of levies under the Accident Compensation Act 2001 or a regulation made under that Act; or

(b)

deductions under the Child Support Act 1991; or

(bb)

deductions under the KiwiSaver Act 2006; or

(bc)

amounts of KiwiSaver Act 2006 employer contributions paid or to be paid to the Commissioner, including an amount of compulsory employer contributions unpaid, specified in a notice under section 141(5) of that Act; or

(c)

salary or wage deductions under the Student Loan Scheme Act 2011,—

where the relevant liabilities arise or are to be performed at the same time as the tax liabilities under the PAYE rules.

(4)

When a taxpayer has an obligation under any of sections RA 5, RA 6, RA 10, RA 15 to RA 19, RD 2, RD 4, RD 22, RE 20, RE 21, or RF 13 of the Income Tax Act 2007—

(a)

furnishes a return that shows a liability to pay tax under that section; and

(b)

the tax is required to be paid by a due date for a return period; and

(c)

the liability shown in the return is greater than the tax that the taxpayer paid by the due date—

the taxpayer’s tax position in respect of the due date is the tax paid and not the amount of tax shown as payable in the tax return.

(5)

If a taxpayer does not provide a tax return for a return period, the taxpayer is deemed, in relation to each type of tax, to take, in respect of every due date that would be covered by a tax return for the return period if a return were provided, a tax position that is based on the tax of that type paid by the taxpayer for that return period.

(6)

Where—

(a)

a provision (in this subsection referred to as the relevant provision) of this Act applies in respect of a taxpayer making an objection to or a challenge in respect of an assessment or other disputable decision, but not to both; and

(b)

it is necessary or appropriate for the purposes of another provision of this Act that applies with respect to objections or challenges, but not to both, that the relevant provision apply,—

the relevant provision is to be read as if it referred with respect to both objections and challenges.

Section 4A: inserted, on 26 July 1996, by section 4 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).

Section 4A(1)(b)(ii): 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 4A(1)(ca): replaced, on 1 April 2019, by section 6(1) (and see section 6(2) for application) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).

Section 4A(2)(a): 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 597(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section 4A(2)(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 4A(2)(bb): 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 4A(2)(c): amended (with effect on 30 June 2009), on 6 October 2009 (applying for all income years beginning on or after 1 July 2009), by section 597(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section 4A(2)(c): amended, 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 4A(2)(c): amended, on 1 December 2006, by section 231 of the KiwiSaver Act 2006 (2006 No 40).

Section 4A(2)(c): amended (with effect from 1 April 1997), on 23 September 1997, by section 69(1) of the Taxation (Remedial Provisions) Act 1997 (1997 No 74).

Section 4A(2)(d): amended (with effect on 30 June 2009), on 6 October 2009 (applying for all income years beginning on or after 1 July 2009), by section 597(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section 4A(2)(d): amended (with effect on 1 April 2008), on 6 October 2009, by section 597(4) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section 4A(2)(d): amended, 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 4A(2)(d): amended, on 1 December 2006, by section 231 of the KiwiSaver Act 2006 (2006 No 40).

Section 4A(2)(d): amended (with effect from 1 April 1997), on 23 September 1997, by section 69(2) of the Taxation (Remedial Provisions) Act 1997 (1997 No 74).

Section 4A(2)(e): inserted (with effect on 1 April 2008), on 6 October 2009, by section 597(4) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section 4A(3): amended, 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 4A(3)(a): amended, on 19 December 1998, by section 416 of the Accident Insurance Act 1998 (1998 No 114).

Section 4A(3)(aa): inserted, on 1 April 2002, by section 338 of the Injury Prevention, Rehabilitation, and Compensation Act 2001 (2001 No 49).

Section 4A(3)(aa): amended, on 21 December 2010, by section 189 of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

Section 4A(3)(bb): inserted, on 1 December 2006, by section 231 of the KiwiSaver Act 2006 (2006 No 40).

Section 4A(3)(bc): replaced, on 1 April 2021, by section 145 of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).

Section 4A(3)(c): replaced, on 1 April 2012, by section 223 of the Student Loan Scheme Act 2011 (2011 No 62).

Section 4A(4): replaced (with effect on 1 April 1997), on 23 September 1997, by section 69(3) of the Taxation (Remedial Provisions) Act 1997 (1997 No 74).

Section 4A(4): amended (with effect on 30 June 2009), on 6 October 2009 (applying for all income years beginning on or after 1 July 2009), by section 597(5) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section 4A(4): amended, 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).