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Tax Administration Act 1994

Assessments

97: Assessment of imputation penalty tax

You could also call this:

"How the government decides if a company must pay imputation penalty tax"

Illustration for Tax Administration Act 1994

The Commissioner can decide how much imputation penalty tax a company must pay. You will have to pay this tax unless you can prove it is too much or you do not have to pay it. The Commissioner uses certain rules to make this decision, which are outlined in sections 109, 111, and 113. If the Commissioner decides you have to pay imputation penalty tax, you can challenge this decision. You can do this in the same way you would challenge an income tax decision made under section BB 1 of the Income Tax Act 2007. The rules in Part 8A of this Act also apply to imputation penalty tax decisions. The Commissioner's decision can be reviewed to ensure it is fair. You have the right to challenge the decision and have it looked at again. This is an important part of making sure the tax system is fair for everyone.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM354481.

Topics:
Money and consumer rights > Taxes
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Part 6Assessments

97Assessment of imputation penalty tax

  1. The Commissioner may, in respect of any company chargeable with imputation penalty tax, make an assessment of the amount of imputation penalty tax that in the judgment of the Commissioner ought to be imposed on the company.

  2. The company shall be liable to pay the imputation penalty tax so assessed except in so far as the company establishes in proceedings challenging the assessment that the assessment is excessive or that the company is not chargeable with the imputation penalty tax.

  3. Sections 109, 111, and 113 shall apply with respect to every assessment under this section as if—

  4. in sections 111 and 113, the term taxpayer included a company chargeable with imputation penalty tax; and
    1. in section 113, the term tax already assessed included any imputation penalty tax already assessed under this section.

      1. An assessment made under this section shall be subject to challenge in the same manner as an assessment of income tax imposed under section BB 1 of the Income Tax Act 2007, and Part 8A of this Act shall apply accordingly.

      Compare
      • 1976 No 65 s 394N(5)–(8)
      Notes
      • Section 97(1): amended, on (applying to 1997–98 and subsequent income years), by section 483(3) of the Taxation (Core Provisions) Act 1996 (1996 No 67).
      • Section 97(2): amended, on , by section 20(1) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
      • Section 97(3)(a): amended (with effect on 1 October 1996), on , by section 162 of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).
      • Section 97(4): amended, on (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 97(4): amended, on , by section 20(2)(a) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
      • Section 97(4): amended, on , by section 20(2)(b) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
      • Section 97(4): amended, on (applying to 1997–98 and subsequent income years), by section 483(3) of the Taxation (Core Provisions) Act 1996 (1996 No 67).