Plain language law

New Zealand law explained for everyone

Tax Administration Act 1994

Penalties - Civil penalties

141H: Reduction for disclosure of unacceptable tax position

You could also call this:

"Telling the truth about your tax mistakes can reduce your penalty"

Illustration for Tax Administration Act 1994

You might get a smaller penalty if you tell the Commissioner about your tax position. The Commissioner can reduce your penalty by 75% if you make adequate disclosure. You must give the Commissioner the right information at the right time.

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 It might be out of date or be missing some parts.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=DLM356609.

Topics:
Money and consumer rights > Taxes
Previous

141GC: Grace periods for certain schedular payments, or

"Time to fix tax mistakes for some payments"

Next

141I: Reduction where temporary shortfall, or

"Lower penalty for temporary tax mistakes"

Part 9Penalties
Civil penalties

141HReduction for disclosure of unacceptable tax position

  1. A shortfall penalty payable by a taxpayer under section 141B or section 141D may be reduced if, in the Commissioner's opinion, the taxpayer makes adequate disclosure of the taxpayer's tax position at the time, determined under section 141B(6), the taxpayer takes the taxpayer's tax position.

  2. The level by which a shortfall penalty is to be reduced for adequate disclosure is 75%.

  3. The Commissioner may from time to time specify—

  4. the type of information required for adequate disclosure; and
    1. the form in which the information must be provided.

      Notes
      • Section 141H: inserted, on , by section 43 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
      • Section 141H heading: amended, on (applying to a tax position that a taxpayer takes on or after 1 April 2003), by section 131(1) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).