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Tax Administration Act 1994

Penalties - Proceedings and evidence

149: Imposition of civil and criminal penalties

You could also call this:

"Paying penalties if you break tax rules"

Illustration for Tax Administration Act 1994

If you breach a tax obligation, you may have to pay a civil penalty or a criminal penalty, or both. You can only get one shortfall penalty for each tax shortfall, unless it's under section 141ED. If you could get more than one shortfall penalty, you get the highest one. If you've been prosecuted for a tax offence, the Commissioner can still assess and impose civil penalties afterwards. If you've already got a shortfall penalty for taking an incorrect tax position, the Commissioner can't prosecute you for that position under this Act, the Student Loan Scheme Act 2011, or for an obligation under that Act.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM356934.

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Money and consumer rights > Taxes
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Part 9Penalties
Proceedings and evidence

149Imposition of civil and criminal penalties

  1. Each time a taxpayer breaches a tax obligation the taxpayer may be liable to a civil penalty or, on conviction, to a criminal penalty, or to both.

  2. A taxpayer is liable to only one shortfall penalty, other than under section 141ED, for each tax shortfall.

  3. If a taxpayer could, apart from subsection (2), be liable to more than 1 shortfall penalty for a tax shortfall, the highest shortfall penalty is to be imposed.

  4. The Commissioner may assess and impose civil penalties after a taxpayer has been prosecuted for an offence under this Act, whether or not the prosecution is successful.

  5. If a shortfall penalty, other than under section 141ED, has been imposed on a taxpayer for taking an incorrect tax position, the Commissioner may not subsequently prosecute the taxpayer—

  6. under this Act for taking the incorrect tax position; or
    1. under the Student Loan Scheme Act 2011 for taking the incorrect tax position; or
      1. in relation to an obligation arising under the Student Loan Scheme Act 2011 for taking the incorrect tax position.

        Notes
        • Section 149: replaced, on , by section 43 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
        • Section 149(2): amended, on (applying for tax positions taken on or after 1 April 2008), by section 263(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
        • Section 149(5): replaced, on , by section 223 of the Student Loan Scheme Act 2011 (2011 No 62).