Plain language law

New Zealand law explained for everyone

Tax Administration Act 1994

Penalties - Criminal penalties

143A: Knowledge offences

You could also call this:

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

Illustration for Tax Administration Act 1994

You can commit an offence if you knowingly do not keep required documents. 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 must provide information to the Commissioner when required. If you do not, you can commit an offence. You can also commit an offence if you provide false or misleading information. There are rules about withholding tax. You must account for withheld tax and pay it to the Commissioner. If you do not, you can commit an offence. If you are convicted of an offence, you may have to pay a fine or go to prison. The fine can be up to $25,000 for a first offence and up to $50,000 for later offences. In some cases, you can go to prison for up to 5 years. You can read more about these rules in the Tax Administration Act 1994 and other related laws, such as the Goods and Services Tax Act 1985 and the KiwiSaver Act 2006.

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 It might be out of date or be missing some parts.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=DLM356691.

Topics:
Money and consumer rights > Taxes
Previous

143: Absolute liability offences and strict liability offences, or

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

Next

143B: Evasion or similar offence, or

"Breaking Tax Rules: Giving False Info or Hiding Documents"

Part 9Penalties
Criminal penalties

143AKnowledge offences

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

  2. knowingly does not keep the documents required to be kept by a tax law; or
    1. knowingly fails to register with a foreign government agency as required by Part 11B; or
      1. knowingly fails to provide information, including a self-certification, to another person when required to do so under Part 11B; or
        1. knowingly 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. knowingly provides altered, false, incomplete, or misleading information (including tax returns and tax forms) to the Commissioner or any other person in respect of a tax law or a matter or thing relating to a tax law; or
            1. knowingly applies or permits the application of the amount of a deduction or withholding of tax made or deemed made under a tax law for any purpose other than in payment to the Commissioner; or
              1. knowingly does not make a deduction or withholding of tax required to be made by a tax law; or
                  1. knowingly does not issue a receipt relating to a supply of distantly taxable goods as required by section 19M(4) of the Goods and Services Tax Act 1985; or
                    1. knowingly does not provide information relating to a supply of distantly taxable goods as required by section 12C of the Goods and Services Tax Act 1985; or
                      1. in relation to a recipient of a supply of distantly taxable goods or of remote services from a non-resident supplier, and for the purposes of avoiding the payment of goods and services tax, knowingly provides altered, false, or misleading information relating to their residence in New Zealand or their status as a registered person; or
                        1. in relation to an underlying supplier, of a supply of distantly taxable goods or remote services by a marketplace, knowingly provides altered, false, or misleading information relating to the country or territory in which the underlying supplier is resident.

                          1. No person may be convicted of an offence against subsection (1)(ac) for knowingly failing to provide information, including a self-certification, to another person or against subsection (1)(b) for knowingly 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 to provide the information—

                          2. 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. Repealed

                              2. No person may be convicted of an offence under subsection (1)(d) for knowingly applying or permitting the application of an amount of withholding or deduction of tax for a purpose other than in payment to the Commissioner, if the person satisfies the court that the amount of the deduction or withholding has been accounted for, and that the person's failure to account for it within the prescribed time was due to illness, accident, or other cause beyond the person's control.

                              3. Without limiting any other provision of this Act, the term withholding or deduction of tax in subsection (4) includes—

                              4. a PAYE income payment:
                                1. a combined tax and earner-related payment:
                                  1. an amount of tax withheld for—
                                    1. resident passive income:
                                      1. non-resident passive income:
                                        1. an employer's superannuation cash contribution:
                                        2. a deduction of contribution that was payable under Part 3, subpart 1 of the KiwiSaver Act 2006:
                                          1. a salary or wage deduction made under the Student Loan Scheme Act 2011:
                                              1. an amount of RSCT withheld:
                                                1. amounts of compulsory employer contributions that must be paid under Part 3, subpart 3A of the KiwiSaver Act 2006 to the Commissioner, including an amount of compulsory employer contributions unpaid, specified in a notice under section 101I(5) of that Act.

                                                  1. Repealed

                                                  2. Subject to subsections (8) and (9), a person who is convicted of an offence against subsection (1) is liable—

                                                  3. the first time the person is convicted in relation to a particular type of offence, to a fine not exceeding $25,000; and
                                                    1. on every other occasion the person is convicted for the same type of offence, to a fine not exceeding $50,000.

                                                      1. A person who is convicted of a knowledge offence against subsection (1)(d), where the offence does not relate to—

                                                      2. section 157 of this Act; or
                                                        1. section 43 of the Goods and Services Tax Act 1985; or
                                                          1. another tax law specifying obligations in relation to withholdings or deductions of tax that operates by incorporating, or by reference to, section 157 of this Act,—
                                                              1. is liable on each occasion the person is convicted of that type of offence to—
                                                            1. imprisonment for a term not exceeding 5 years; or
                                                              1. a fine not exceeding $50,000; or
                                                                1. both.

                                                                  1. A person who is convicted of an offence against subsection (1)(b) or subsection (1)(c) relating to information required to be provided under section 59 or section 61 is liable to a fine not exceeding $50,000.

                                                                  Notes
                                                                  • Section 143A: inserted, on , by section 43 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
                                                                  • Section 143A(1)(a): amended, on , by section 183 of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
                                                                  • Section 143A(1)(ab): inserted, on , by section 175 of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).
                                                                  • Section 143A(1)(ac): inserted, on , by section 19(1) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
                                                                  • Section 143A(1)(f): repealed, on , by section 220(1) (and see section 220(4) for application) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
                                                                  • Section 143A(1)(fb): inserted, on , by section 102 of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).
                                                                  • Section 143A(1)(fb): amended, on , by section 220(2) (and see section 220(5) for application) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
                                                                  • Section 143A(1)(fc): inserted, on , by section 102 of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).
                                                                  • Section 143A(1)(fc): amended, on , by section 220(3) (and see section 220(5) for application) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
                                                                  • Section 143A(1)(g): inserted, on , by section 83 of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).
                                                                  • Section 143A(1)(g): amended, on , by section 234(1) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
                                                                  • Section 143A(1)(g): amended, on , by section 234(2) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
                                                                  • Section 143A(1)(h): inserted, on , by section 234(3) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
                                                                  • Section 143A(2): replaced, on , by section 134 of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).
                                                                  • Section 143A(2): amended, on , by section 19(2)(a) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
                                                                  • Section 143A(2): amended, on , by section 19(2)(b) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
                                                                  • Section 143A(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 143A(3): repealed (with effect on 30 June 2009), on (applying for all income years beginning on or after 1 July 2009), by section 687(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
                                                                  • Section 143A(5)(a): replaced, 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 143A(5)(b): replaced, 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 143A(5)(c): replaced, 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 143A(5)(c)(iii): amended (with effect on 1 April 2008), on , by section 202 of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).
                                                                  • Section 143A(5)(d): replaced, 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 143A(5)(e): replaced, on , by section 223 of the Student Loan Scheme Act 2011 (2011 No 62).
                                                                  • Section 143A(5)(f): repealed, 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 143A(5)(g): replaced, on , by section 262(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
                                                                  • Section 143A(5)(h): inserted, on , by section 21 of the Taxation (KiwiSaver) Act 2007 (2007 No 110).
                                                                  • Section 143A(6): repealed (with effect on 30 June 2009), on (applying for all income years beginning on or after 1 July 2009), by section 687(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).