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Tax Administration Act 1994

Penalties - Civil penalties

141JAA: Shortfall penalty for not taking reasonable care or for taking unacceptable tax position may not be more than $50,000

You could also call this:

"You can't be charged more than $50,000 if you make a tax mistake and own up to it."

Illustration for Tax Administration Act 1994

You may have to pay a penalty if you do not take reasonable care with your tax or take an unacceptable tax position. This penalty cannot be more than $50,000 if you tell the Commissioner about the mistake under section 141G, or the Commissioner finds out about it. The Commissioner must find out about the mistake within a certain time, which is the later of three months after your tax return is due, or a certain time after your tax return is due, which can be up to six months.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM356617.

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Part 9Penalties
Civil penalties

141JAAShortfall penalty for not taking reasonable care or for taking unacceptable tax position may not be more than $50,000

  1. Despite section 141J, a shortfall penalty payable by a taxpayer for not taking reasonable care, or for taking an unacceptable tax position, may not be more than $50,000 if the taxpayer voluntarily discloses the shortfall under section 141G, or the Commissioner determines the shortfall, no later than the date that is the later of—

  2. the date that is 3 months after the due date of the return to which the shortfall relates; and
    1. the date that follows the due date of the return to which the shortfall relates by the lesser of—
      1. 1 return period; and
        1. 6 months.

        2. This section does not apply if section 141K applies.

        Notes
        • Section 141JAA: inserted, on (applying to a tax position that a taxpayer takes on or after 1 April 2003), by section 133(1) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
        • Section 141JAA(1): amended, on , by section 159 of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).