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Tax Administration Act 1994

Penalties - Civil penalties

140B: Imputation penalty tax payable where end of year debit balance

You could also call this:

"Extra tax to pay if a company owes more income tax at the end of the year"

Illustration for Tax Administration Act 1994

If you are a company and you have to pay more income tax under section OB 65 of the Income Tax Act 2007, you also have to pay a special tax called imputation penalty tax. You pay this tax if you have an end of year debit balance or imputation additional tax under section OB 72 of that Act. The amount of imputation penalty tax you pay is 10% of the amount of further income tax or imputation additional tax that you have to pay. You calculate the imputation penalty tax as 10% of the amount of further income tax or imputation additional tax. For the year ending 31 March 2010, the amount of imputation penalty tax is reduced by the amount of imputation penalty tax payable under section 140BB. This means you subtract the amount payable under section 140BB from the total imputation penalty tax for that year.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM356183.

Topics:
Money and consumer rights > Taxes
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140A: Underestimation penalty where income tax underestimated as at final instalment date, or

"Paying a penalty for underestimating your income tax"

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140BB: Transitional imputation penalty tax payable in some circumstances, or

"A special tax penalty that applied in some situations before 2010"

Part 9Penalties
Civil penalties

140BImputation penalty tax payable where end of year debit balance

  1. A company that is liable to pay further income tax under section OB 65 of the Income Tax Act 2007 in respect of an end of year debit balance or imputation additional tax under section OB 72 of that Act is also liable to pay a special tax known as imputation penalty tax.

  2. The amount of the imputation penalty tax payable by a company is 10% of the amount of—

  3. further income tax that gives rise to the liability for further imputation penalty tax:
    1. imputation additional tax that gives rise to the liability for further imputation penalty tax.

      1. The amount given by subsection (2) for the year ending 31 March 2010 is reduced by the amount of imputation penalty tax payable under section 140BB.

      Notes
      • Section 140B: inserted, on , by section 43 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
      • Section 140B(1): amended, on , by section 338 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
      • Section 140B(1): amended (with effect on 30 June 2009), on (applying for all income years beginning on or after 1 July 2009), by section 674(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
      • Section 140B(1): 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 140B(1): amended (with effect on 16 November 2004), on , by section 146(1) of the Taxation (Base Maintenance and Miscellaneous Provisions) Act 2005 (2005 No 79).
      • Section 140B(2): replaced (with effect on 16 November 2004), on , by section 146(2) of the Taxation (Base Maintenance and Miscellaneous Provisions) Act 2005 (2005 No 79).
      • Section 140B(2)(b): 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 140B(3): inserted (with effect on 1 October 2007), on (applying for 2008–09 and later income years), by section 246(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).