Plain language law

New Zealand law explained for everyone

Crown Minerals Act 1991

Permits, access to land, and other matters - Offences and miscellaneous - Royalties and interest

99I: Power to amend royalty returns or make default assessment

You could also call this:

"The government can fix mistakes in your royalty payments or estimate what you owe if you don't send in the information."

Illustration for Crown Minerals Act 1991

If you send in a royalty return with incorrect information, the chief executive can change it at any time. They can also change the amount of money you owe to the Crown. You might not send in a royalty return when you are supposed to, so the chief executive can make an assessment of what you should have paid. They will then tell you about the changes or assessment they made.

If the chief executive changes your royalty return or makes an assessment, they will tell you about it as soon as they can. They will explain what they did, why they did it, and let you know that you can object to their decision, as set out in section 99K. If you owe money to the Crown, you have to pay it within 20 working days.

If the chief executive finds out you paid too much, they will arrange for a refund within 20 working days. You will get interest on the refund, which is calculated using the Commissioner's paying rate, as defined in section 120C of the Tax Administration Act 1994. The chief executive can change your royalty return, but only if it is within a certain time frame, unless they think you did something wrong on purpose.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM5237047.

Topics:
Money and consumer rights > TaxesEnvironment and resources > Farming and fishing
Previous

99H: Royalties, or

"Paying a share of money when you take minerals from the ground"

Next

99J: Interest on unpaid money, or

"Paying interest on money owed to the Crown if you're late"

Part 1BPermits, access to land, and other matters
Offences and miscellaneous: Royalties and interest

99IPower to amend royalty returns or make default assessment

  1. If the chief executive is satisfied that the information contained in a royalty return is incorrect, he or she may, at any time, amend the return and any assessment of the permit holder’s liability to pay money to the Crown (an amendment) as he or she thinks fit.

  2. If a permit holder fails to submit a royalty return when required to do so under this Act, the regulations, or a permit, the chief executive may make an assessment (a default assessment) of the matters that should have been in the permit holder’s royalty return.

  3. As soon as practicable after making an amendment or a default assessment, the chief executive must notify the permit holder of—

  4. the particulars of the amendment or default assessment; and
    1. any grounds or information upon which the amendment or default assessment was based; and
      1. the right of the permit holder to object (as set out in section 99K).

        1. If an amendment or a default assessment results in the permit holder owing money to the Crown, the permit holder must pay the amount due within 20 working days after the date on which the permit holder is notified under subsection (3).

        2. If an amendment shows that a permit holder has overpaid the amount of royalties due, the chief executive must, within 20 working days after the date of the amendment, arrange for a refund to be paid to the permit holder.

        3. Interest calculated at the Commissioner's paying rate, as defined in section 120C of the Tax Administration Act 1994, is payable on any amount refunded.

        4. Despite subsection (1), the chief executive must not make an amendment to a permit holder's royalty return under this section at any time after the date that is 7 years from the end of the permit year in which the permit holder submitted the return if the amendment would result in an increase in the amount payable to the Crown, unless the chief executive is satisfied on reasonable grounds that the contents of the return—

        5. are fraudulent or wilfully misleading; or
          1. do not include an assessment of minerals obtained under the permit through a particular method or from a particular location, and in respect of which an assessment was required to be included in the return.

            Notes
            • Section 99I: inserted, on , by section 52 of the Crown Minerals Amendment Act 2013 (2013 No 14).