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Tax Administration Act 1994

Penalties - Criminal penalties

143: Absolute liability offences and strict liability offences

You could also call this:

"Breaking Tax Rules: When You Might Have to Pay a Fine"

Illustration for Tax Administration Act 1994

You can commit an offence if you do not keep documents required by tax law. You can also commit an offence if you fail to register with a foreign government agency as required by Part 11B. If you are convicted of an offence, you may have to pay a fine. You may not be convicted of an offence if you can prove you did not know about the requirements. You may not be convicted of an offence if another trustee has been appointed to keep documents. The amount of the fine depends on how many times you have been convicted of the same type of offence. A tax return includes an individual's final account under Part 3, subpart 3B. You may not be convicted of an offence if you can prove you took reasonable care when claiming input tax. You may not be convicted of an offence if you corrected the amount claimed for input tax under section 113A of the Tax Administration Act 1994.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM356684.

Topics:
Money and consumer rights > Taxes
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142I: Failures to meet requirements under Part 11B to provide information, including self-certifications, or

"What happens if you don't give correct information on time"

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143A: Knowledge offences, or

"Breaking the law by not following tax rules or giving false information"

Part 9Penalties
Criminal penalties

143Absolute liability offences and strict liability offences

  1. A person commits an offence against this Act if the person—

  2. does not keep the documents required to be kept by a tax law; or
    1. fails to register with a foreign government agency as required by Part 11B; or
      1. does not provide information (including tax returns and tax forms) to the Commissioner or any other person when required to do so by a tax law; or
        1. does not provide taxable supply information as required by section 19K or 19L of the Goods and Services Tax Act 1985; or
          1. does not apply for registration as required under section 51 of the Goods and Services Tax Act 1985; or
            1. claims, under section 20(3) of the Goods and Services Tax Act 1985, more than 1 amount of input tax for a taxable supply to the person, resulting in a total amount of input tax claimed by the person for the taxable supply that exceeds the output tax charged to the person for the taxable supply.

              1. No person who is a trustee of a foreign trust may be convicted of an offence against subsection (1)(a) for not keeping documents required to be kept under section 22 if the person proves that—

              2. the person did not know of the requirements of section 22:
                1. another trustee has been appointed under section 22(2C) as agent of the trustees for the purposes of section 22 and the Commissioner has been notified of the appointment.

                  1. No person who is a trustee of a foreign exemption trust may be convicted of an offence against subsection (1)(b) for not disclosing information required to be disclosed under section 59B or 59D if the person proves that the person did not know of the requirements of the section.

                  2. No person may be convicted of an offence against subsection (1)(b) for not providing information (other than tax returns and tax forms) to the Commissioner if the person proves that, as and when the person was required by the Commissioner to provide the information—

                  3. the person did not have the information in the person's knowledge, possession or control; and
                    1. no non-resident, who under section 17E(1) was controlled directly or indirectly by the person, had the information in the non-resident's knowledge, possession or control.

                      1. No person may be convicted of an offence against subsection (1)(ab) if the relevant failure to register occurred through no fault of the person.

                      2. No person may be convicted of an offence against subsection (1) if the requirement with which the person fails to comply is a requirement under the CRS applied standard and Part 11B.

                      3. No person may be convicted of an offence against subsection (1)(d) if the person proves that the person, either or both,—

                      4. took reasonable care when claiming the amounts of input tax:
                        1. corrected, under section 113A of the Tax Administration Act 1994, the amount claimed for input tax.

                          1. A person who is convicted of an offence against subsection (1) is liable—

                          2. the first time the person is convicted in relation to a particular type of offence, to a fine not exceeding $4,000:
                            1. the second time the person is convicted of the same type of offence, to a fine not exceeding $8,000:
                              1. on every other occasion the person is convicted of the same type of offence, to a fine not exceeding $12,000.

                                1. In this section and in sections 143A and 143B, tax return includes an individual’s final account under Part 3, subpart 3B.

                                Notes
                                • Section 143: replaced, on , by section 43 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
                                • Section 143 heading: amended, on , by section 219(1) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
                                • Section 143(1)(a): amended, on , by section 182(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
                                • Section 143(1)(ab): inserted, on , by section 174(1) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).
                                • Section 143(1)(ba): inserted, on (applying on and after 10 October 2000), by section 75(1) of the Taxation (GST and Miscellaneous Provisions) Act 2000 (2000 No 39).
                                • Section 143(1)(ba): amended, on , by section 219(2)(a) (and see section 219(7) for application) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
                                • Section 143(1)(ba): amended, on , by section 219(2)(b) (and see section 219(7) for application) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
                                • Section 143(1)(c): amended, on , by section 219(3) (and see section 219(6) for application) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
                                • Section 143(1)(d): inserted, on , by section 219(4) (and see section 219(6) for application) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
                                • Section 143(1B): inserted, on , by section 254 of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).
                                • Section 143(1B): amended, on , by section 202(1)(a) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
                                • Section 143(1B): amended, on , by section 182(2) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
                                • Section 143(1B)(b): amended, on , by section 202(1)(b) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
                                • Section 143(1C): replaced, on , by section 202(2) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
                                • Section 143(2): replaced, on , by section 133 of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).
                                • Section 143(2)(b): amended, on , by section 113 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
                                • Section 143(2B): inserted, on , by section 174(2) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).
                                • Section 143(2C): inserted, on , by section 18 of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
                                • Section 143(2D): inserted, on , by section 219(5) (and see section 219(6) for application) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
                                • Section 143(4): inserted, on (applying on and after 1 April 1999), by section 36(1) of the Taxation (Simplification and Other Remedial Matters) Act 1998 (1998 No 101).
                                • Section 143(4): amended, on , by section 99(1) (and see section 99(2) for application) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).