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Tax Administration Act 1994

Interest - General provisions

120D: Liability to pay interest

You could also call this:

"Paying interest on unpaid or overpaid tax"

Illustration for Tax Administration Act 1994

You have to pay interest on tax you have not paid to the Commissioner. The Commissioner can get this interest from you like you would pay normal tax. You can get interest from the Commissioner if you paid too much tax. You can get interest on the tax you overpaid. The Commissioner can get back interest they overpaid in the same way as income tax under the Income Tax Act 2007. This means the rules for income tax apply to getting back the overpaid interest.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM355139.

Topics:
Money and consumer rights > Taxes
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Part 7Interest
General provisions

120DLiability to pay interest

  1. A taxpayer is liable to pay interest on unpaid tax to the Commissioner in accordance with this Part.

  2. The Commissioner may recover interest payable on unpaid tax as though it were tax (of the same type as the unpaid tax) payable by the taxpayer.

  3. The Commissioner is liable to pay interest on overpaid tax to a taxpayer in accordance with this Part.

  4. Interest overpaid by the Commissioner may be recovered in the same manner as income tax that is payable under the Income Tax Act 2007.

Notes
  • Section 120D: inserted, on , by section 36(1) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
  • Section 120D(4): replaced, on (applying to the 2002–03 and subsequent income years), by section 221(1) of the Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 (2001 No 85).
  • Section 120D(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 120D(4): amended, on (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).