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Tax Administration Act 1994

Interest

120B: Persons excluded

You could also call this:

"Who doesn't have to follow these tax rules"

Illustration for Tax Administration Act 1994

You do not have to follow the rules in this part if you are a certain type of person. This includes people specified in section 157A for their tax obligations. It also includes people who have to pay child support, as defined in the Child Support Act 1991. You are also excluded if you are an employer who has not paid compulsory employer contributions, as specified in a notice under section 141(5) of the KiwiSaver Act 2006. Some non-resident employers are excluded if they have few employees in New Zealand or pay a small amount of employment-related taxes. They must take reasonable measures to manage their tax obligations within 60 days of a failure to pay tax. You are excluded if you are a borrower with a repayment obligation, as defined in the Student Loan Scheme Act 2011. This means you do not have to follow the rules in this part of the law. These rules do not apply to you in certain situations.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM354993.

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Part 7Interest

120BPersons excluded

  1. Nothing in this Part applies to—

    1. a person (other than an employer and the Commissioner) specified in section 157A in relation to the person's obligations under a tax law specified in that section:
      1. a liable person in relation to child support (both as defined in the Child Support Act 1991):
        1. an employer in relation to amounts of compulsory employer contributions unpaid and specified in a notice under section 141(5) of the KiwiSaver Act 2006:
          1. a non-resident employer who incorrectly concludes that they do not have to withhold and pay, or pay, an amount of tax for a PAYE income payment to a cross-border employee to the Commissioner in an income year, and the employer—
            1. has either 2 or fewer employees present in New Zealand during the income year or pays $500,000 or less of employment-related taxes for the income year; and
              1. has, within 60 days of a relevant failure to withhold and pay, or pay, taken reasonable measures to manage their employment-related tax obligations:
              2. a borrower in relation to repayment obligation (both as defined in the Student Loan Scheme Act 2011).

                Notes
                • Section 120B: inserted, on , by section 36(1) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
                • Section 120B(aa): repealed, on , by section 263 of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
                • Section 120B(aa): inserted, on , by section 200 of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).
                • Section 120B(bb): replaced, on , by section 169 of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
                • Section 120B(bc): inserted, on , by section 193 of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
                • Section 120B(c): amended, on , by section 223 of the Student Loan Scheme Act 2011 (2011 No 62).