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Tax Administration Act 1994

Objections

128: Payment of disputed tax where competent objection lodged

You could also call this:

"Paying disputed tax when you disagree with the tax amount"

Illustration for Tax Administration Act 1994

You do not have to pay disputed tax until the due date. The Commissioner can still ask you to pay the tax if they think you might not pay it later. You will get a refund if you succeed in your objection. You will not have to pay a shortfall penalty or interest on the disputed tax until the due date. If you pay the tax and then succeed in your objection, you will get a refund of the tax and interest. The rules for interest are in Part 7. If your objection is about a tax year before 1997-98, interest is calculated from the date the period of deferral starts. The Commissioner will refund you the tax and interest if you succeed in your objection. This rule only applies if you lodge a competent objection.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM355659.

Topics:
Money and consumer rights > Taxes
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127: Commissioner to consider objections and may amend assessment, or

"Commissioner looks at your concerns and may change the tax bill"

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128A: Waiver of payment or security, or

"When you don't have to pay tax or give security"

Part 8Objections

128Payment of disputed tax where competent objection lodged

  1. Repealed

  2. A taxpayer is not liable to pay—

  3. the deferrable tax relating to any tax in dispute; or
    1. a shortfall penalty, where the penalty is payable in respect of any tax in dispute; or
      1. the interest accruing under Part 7 on that deferrable tax or that shortfall penalty,—
          1. until the due date for payment of that deferrable tax.

        1. Despite subsection (2), the Commissioner may require a taxpayer to pay all tax in dispute if the Commissioner considers that there is a significant risk that the tax in dispute will not be paid should the taxpayer not succeed in objection proceedings.

        2. If and to the extent that a taxpayer succeeds in objection proceedings, the Commissioner must, after the day of determination of final liability, refund or pay to, or apply on behalf of, the taxpayer—

        3. the tax in dispute paid in accordance with subsection (2B); and
          1. interest accrued on the tax in dispute under Part 7.

            1. This section applies only where a taxpayer lodges a competent objection.

            2. Part 7 applies to interest calculated on deferrable tax on and after 1 April 1997, irrespective of whether the competent objection or challenge relates to a tax year before the 1997–98 tax year.

            3. If the competent objection or challenge relates to the 1996–97 or an earlier tax year, interest must be calculated on deferrable tax on and after the date that the period of deferral starts.

            Notes
            • Section 128: replaced, on , by section 39 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
            • Section 128 heading: replaced, on , by section 114(1) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
            • Section 128(1): repealed, on , by section 114(2) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
            • Section 128(2B): inserted, on , by section 114(3) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
            • Section 128(3)(a): replaced, on , by section 114(4) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
            • Section 128(3)(b): replaced, on , by section 114(4) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
            • Section 128(5): inserted, on (applying on and after 1 April 1997), by section 72(1) of the Taxation (Remedial Matters) Act 1999 (1999 No 98).
            • Section 128(5): 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).
            • Section 128(5): amended, on , by section 114(5) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
            • Section 128(6): inserted, on (applying on and after 1 April 1997), by section 72(1) of the Taxation (Remedial Matters) Act 1999 (1999 No 98).
            • Section 128(6): 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).
            • Section 128(6): amended, on , by section 114(6) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).