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Student Loan Scheme Act 2011

Interest, relief, penalties and offences, rights of objection, and rights to challenge - Penalties and offences - Student loan shortfall penalties

157: Definitions relating to student loan shortfall penalties

You could also call this:

“Explaining important words about student loan mistakes and penalties”

In this part of the law about student loan shortfall penalties, there are some important terms you need to know:

An “incorrect tax position” is explained in another part of the law (section 158(b)).

A “repayment obligation shortfall” is when there’s a difference between what you think you owe for your student loan repayment and what you actually owe for a tax year. It’s the gap between how your income tax affects your end-of-year repayment obligation and what it should be if your tax was calculated correctly.

A “shortfall penalty” is a punishment you might have to pay if you make a mistake on your taxes. This could happen if you take an incorrect tax position or if you do (or don’t do) certain things that are described in the tax laws.

These definitions help explain what happens if you make mistakes when figuring out how much you need to repay on your student loan.

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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=DLM3180335.

Topics:
Education and learning > Higher education Money and consumer rights > Banking and loans
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158: Student loan shortfall penalties may be imposed on certain borrowers, or

"Sometimes you might have to pay extra if you make a mistake with your student loan"

Part 4 Interest, relief, penalties and offences, rights of objection, and rights to challenge
Penalties and offences: Student loan shortfall penalties

157Definitions relating to student loan shortfall penalties

  1. In this section and sections 158 to 161,—

    incorrect tax position has the meaning given to it in section 158(b)

      repayment obligation shortfall, for a tax year, means the difference between the effect of—

      1. a borrower's income tax position on his or her end-of-year repayment obligation for the tax year; and
        1. the correct tax position on that repayment obligation for the tax year

          shortfall penalty means a penalty imposed under any of sections 141A to 141E of the Tax Administration Act 1994 for taking an incorrect tax position or for doing or failing to do anything specified or described in those sections.

          Notes
          • Section 157 repayment obligation shortfall paragraph (a): amended (with effect on 1 April 2012 and applying for 2012–13 and later tax years), on , by section 44 of the Student Loan Scheme Amendment Act 2013 (2013 No 10).