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Legal Services Act 2011

Legal aid - How Commissioner may enforce conditions of grant - Deduction notices

41G: Offences in relation to deduction notices

You could also call this:

"Breaking the rules about taking and paying money as ordered by the law can lead to fines"

Illustration for Legal Services Act 2011

You commit an offence if you fail to make a deduction required by a deduction notice. You also commit an offence if you make a deduction but do not pay it to the Commissioner on time. You must pay the deducted amount to the Commissioner, not to anyone else, as stated in section 41E or 41F. You can be fined up to $2,000 if you commit these offences. If you are an employer, you commit an offence if you dismiss or punish an employee because a deduction notice was issued to you. You can be fined up to $1,000 for this offence. You must follow the rules about deduction notices to avoid committing an offence. The rules are in place to ensure that deductions are made and paid correctly. You should be aware of these rules to avoid any penalties.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM5588345.

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Topics:
Money and consumer rights > Taxes
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41F: Making of deductions, or

"Taking money owed to the government from someone's payment"

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"Your pay is protected, you must get at least 60% of your usual weekly pay."

Part 2Legal aid
How Commissioner may enforce conditions of grant: Deduction notices

41GOffences in relation to deduction notices

  1. Every person commits an offence and is liable on conviction to a fine not exceeding $2,000 who—

  2. fails to make any deduction required by a deduction notice; or
    1. fails, after making a deduction, to pay the amount deducted to the Commissioner within the time specified in the notice; or
      1. permits payment to or on behalf of any person, other than the Commissioner, of any amount deemed to be held in trust for the Commissioner under section 41E or 41F.

        1. Every employer commits an offence and is liable on conviction to a fine not exceeding $1,000 who dismisses an employee or alters an employee's position in the employer's business or undertaking to the employee's prejudice by reason of a deduction notice having been issued to the employer.

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        Notes
        • Section 41G: inserted, on , by section 14 of the Legal Services Amendment Act 2013 (2013 No 43).