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Tax Administration Act 1994

Penalties - Criminal penalties

147: Employees and officers

You could also call this:

"When company staff break tax laws, they can get in trouble too"

Illustration for Tax Administration Act 1994

If you are an employee, agent, or officer of a company, you can commit an offence against the Tax Administration Act if the company commits an offence. This happens when the company's offence is caused by something you did or did not do, or if you knew about it. You can also commit an offence if you try to evade the law. If you do something that causes the company to commit an offence, you can be fined or imprisoned for the same amount of time as an individual who committed the offence. You are not liable for an offence by a trustee of a foreign trust if section 147B already imposes liability for that offence. As an employee or officer of a company, you are responsible for actions taken on behalf of the company because of your job or position.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM356923.

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Money and consumer rights > TaxesWork and jobs > Worker rightsCrime and justice > Criminal lawBusiness > Industry rules
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146: Publication of names, or

"When the government can make public the names of people who break tax laws"

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147B: Directors and officers of resident foreign trustee, or

"Breaking the law as a director of a foreign trust in New Zealand"

Part 9Penalties
Criminal penalties

147Employees and officers

  1. An employee, agent, or officer of a body corporate commits an offence against this Act if—

  2. the body corporate commits an offence against this Act (the principal offence); and
    1. the principal offence—
      1. was caused by an act done or carried out by, or by an omission of, or through knowledge attributable to, the employee, agent, or officer; or
        1. is evasion committed by the employee, agent, or officer.

        2. An employee, agent, or officer who does or carries out the act or omission, or has the knowledge or intent referred to in subsection (1), is liable on conviction for up to the same maximum fine or term of imprisonment, or both, that could apply to an individual, if an individual had committed the principal offence.

        3. A natural person is not liable under this section in relation to an offence by a trustee of a foreign trust that is a body corporate if section 147B imposes liability for an offence relating to the offence of the trustee.

        4. An employee or officer of a body corporate includes a person who, by reason of the person's employment with, or position in relation to, the body corporate, is responsible by law, contract, or otherwise for undertaking an action on behalf of the body corporate.

        Notes
        • Section 147: replaced, on , by section 43 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
        • Section 147(2B): inserted, on , by section 255 of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).
        • Section 147(2B): amended, on , by section 203(a) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
        • Section 147(2B): amended, on , by section 203(b) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).