Plain language law

New Zealand law explained for everyone

Tax Administration Act 1994

Challenges

138I: Payment of disputed tax

You could also call this:

"What happens when you disagree with a tax bill"

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 win your challenge, including interest calculated under Part 7.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

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=DLM355965.

Topics:
Money and consumer rights > Taxes
Previous

138H: Application to strike out proceedings, or

"Stopping a Challenge if Rules are Not Followed"

Next

138J: Waiver of payment or security, or

"Not having to pay tax or give security when you normally would"

Part 8AChallenges

138IPayment of disputed tax

  1. Repealed

  2. A disputant 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 disputant to pay all tax in dispute that is the subject of the challenge if the Commissioner considers that there is a significant risk that the tax in dispute will not be paid should the disputant's challenge not be successful.

        2. The Commissioner must, after the day of determination of final liability, refund or pay to, or apply on behalf of, a disputant whose challenge is successful—

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

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

            2. If the 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 138I: inserted, on , by section 42 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
            • Section 138I heading: replaced, on , by section 117(1) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
            • Section 138I(1): repealed, on , by section 117(2) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
            • Section 138I(2B): inserted, on , by section 117(3) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
            • Section 138I(3)(a): replaced, on , by section 117(4) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
            • Section 138I(3)(b): replaced, on , by section 117(4) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
            • Section 138I(4): inserted, on (applying on and after 1 April 1997), by section 73 of the Taxation (Remedial Matters) Act 1999 (1999 No 98).
            • Section 138I(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).
            • Section 138I(4): amended, on , by section 117(5) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
            • Section 138I(5): inserted, on (applying on and after 1 April 1997), by section 73 of the Taxation (Remedial Matters) Act 1999 (1999 No 98).
            • Section 138I(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 138I(5): amended, on , by section 117(6) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).