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Tax Administration Act 1994

Penalties - Civil penalties

141EC: Definition of promoter

You could also call this:

"What is a promoter in tax law?"

Illustration for Tax Administration Act 1994

You are a promoter if you are involved in creating a plan or programme that is used to offer an arrangement. This can include being a party to the arrangement or helping to formulate the plan. You can also be a promoter if you sell or issue the arrangement and know important details about it. You are also a promoter if you provide services to help people claim research and development tax credits and you get paid based on the outcome. However, if you only provide legal, accounting, or clerical services to a promoter, you are not considered a promoter yourself. The rules about promoters are mentioned in sections 91FC, 91FD, and 141EB.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM356481.

Topics:
Money and consumer rights > Taxes
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Part 9Penalties
Civil penalties

141ECDefinition of promoter

  1. In sections 91FC, 91FD, and 141EB, promoter of an arrangement means—

  2. a person who is a party to, or is significantly involved in formulating, a plan, software, or programme from which an arrangement is offered:
    1. a person who is aware of material and relevant aspects of the arrangement and who sells, issues or promotes the selling or issuing of, the arrangement, whether or not for remuneration:
      1. a person who provides services on a contingency fee basis in relation to research and development tax credit claims.

        1. For the purpose of subsection (1), promoter does not include a person whose involvement with the arrangement is limited to providing legal, accounting, clerical or secretarial services to a promoter.

        Notes
        • Section 141EC: inserted, on (applying to arrangements entered into on and after 26 March 2003), by section 128(1) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
        • Section 141EC(1): amended, on , by section 172 of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
        • Section 141EC(1)(a): amended, on , by section 36(1)(a) (and see section 3 for application) of the Taxation (Research and Development Tax Credits) Act 2019 (2019 No 15).
        • Section 141EC(1)(a): amended, on , by section 36(1)(b) (and see section 3 for application) of the Taxation (Research and Development Tax Credits) Act 2019 (2019 No 15).
        • Section 141EC(1)(b): amended, on , by section 36(2) (and see section 3 for application) of the Taxation (Research and Development Tax Credits) Act 2019 (2019 No 15).
        • Section 141EC(1)(c): inserted, on , by section 36(2) (and see section 3 for application) of the Taxation (Research and Development Tax Credits) Act 2019 (2019 No 15).