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Acts
Tax Administration Act 1994
Penalties
Special additional taxes
154: Dividend withholding payment penalty tax payable where end of year debit balance

Part 1:
Purpose and construction

2Purpose of Act 3Interpretation 4Construction of statutory references 4AConstruction of certain provisions 4ABStatus of examples 4BApplication of Act in relation to Australian wine producer rebate

Part 2:
Commissioner and department

Commissioner and department

5Inland Revenue Department 5BCommissioner of Inland Revenue

Care and management of tax system

Functions and powers of Commissioner

7Delegation of powers by Commissioner 7AAAAdministration of cost of living payments scheme 7AAAuthorisation to make payments under small business cashflow loan scheme 7AABAuthorisation to make COVID-19 support payments 7AACOrders in Council related to COVID-19 support payments scheme 7AAuthorisation to take securities 8Deputy Commissioners of Inland Revenue 9Regional Controllers of Inland Revenue 10District Commissioners of Inland Revenue 11Appointment of other officers 12Official seal 13Proof of signature of Commissioner 13BUse of electronic signatures for tax administration purposes 13CAnnual report

Modes of communication

14Modes of communication: general provisions 14BAsking, requesting, or informing 14CApplying or notifying 14DFormally notifying 14EOverriding provisions 14FGiving information by personal delivery, post, or electronic means 14GContact addresses

Part 2A:
Taxpayer's tax obligations

15APurpose of this Part 15BTaxpayer's tax obligations

Part 2B:
Intermediaries for PAYE, provisional tax, and resident passive income

15URequirements for applications to establish tax pooling accounts 15VWinding up tax pooling accounts

RWT proxies

15WRWT proxies

Part 3:
Information, record-keeping, and returns

Commissioner’s powers to obtain information

Commissioner's powers to obtain information

16Purposes of subpart 16BPrinciples on which subpart based 16CKey terms

Collection of information

17Commissioner may obtain information by accessing property or documents 17ACourt orders for production of information or return 17BCommissioner may require information or production of documents 17CCommissioner’s powers in relation to documents 17DWarrants 17EInformation or documents treated as in persons’ knowledge, possession, or control

Particular information demands and inquiries

17FCommissioner may require information about offshore payments 17GCommissioner may require information from large multinational groups 17GBCommissioner may require information or production of documents for tax policy development 17HCourt may make order for provision of information 17ICommissioner may conduct inquiries 17JCommissioner may apply for District Court Judge to conduct inquiries 17KQuestions and statements made in inquiries

Regulations

17LRegulations providing for regular collection of bulk data

Use of information

17MUse of information

Confidentiality of information

18Confidentiality of sensitive revenue information 18BRequirements for revenue officers and other persons

Permitted disclosures

18CPermitted disclosures 18DDisclosures made in carrying into effect revenue laws 18EDisclosures made under information-sharing arrangements 18FRegulations for information-sharing for public services purposes 18GDisclosures to persons and their representatives 18HDisclosures to other agencies for certain specified purposes 18IDisclosures for international purposes 18JDisclosures for risk of harm purposes 18KCommissioner to notify Minister where funds of gift-exempt body applied for non-charitable purpose, etc 19Inquiry by Commissioner

Tax advice documents

20Privilege for confidential communications between legal practitioners and their clients 20BNo requirement to disclose tax advice document 20CTreatment of document 20DClaim that document is tax advice document 20EDocument or part of document included in tax advice document 20FPerson must disclose tax contextual information from tax advice document 20GChallenge to claim that document is tax advice document 21Information requisitions in relation to offshore payments 21BAInformation required to be provided by large multinational group

Taxpayers’ obligations to keep records

Taxpayer's obligations to keep records

21BPreparing financial statements 21CPreparing financial statements: Orders in Council 22Keeping of business and other records 22AARecords to be kept by employers and PAYE intermediaries 22AABRecords to be kept by payers of passive income 22AACKeeping of returns where information transmitted electronically 22ARecords required under subpart EW of Income Tax Act 2007 22BFurther records required

Reporting of income information by individuals

22COutline of subpart 22DKey terms 22EInformation included in pre-populated accounts 22FInformation requirements 22GAmending accounts for incorrect or missing information 22HFinalising accounts 22IReturns and assessments 22JCommissioner’s power in relation to certain amounts of tax payable 22KNo obligation to provide information: de minimis and certain other amounts 22LInformation particulars 22MSetting electronic and non-electronic requirements

Employment income information

23BEmployment income information: outline of provisions 23CMeaning of employment income information 23DEmployers’ groups for delivery of information 23EOnline group of employers 23FNon-electronic group of employers 23GExemption for certain employers in online group 23HNew group of employers 23IEmployment income information requirements for employees 23JDelivery of employment income information for certain special payments 23KEmployment income information requirements relating to employee share schemes 23LEmployment income information for new and departing employees 23MEmployment income information when employment ended 23NCorrection of errors 23OSetting electronic and non-electronic filing requirements 23PEmployment income information: payroll software 23QEmployment income information: variation of requirements

Other obligations to keep and provide records

24Records to be kept by employer or PAYE intermediary

Offshore persons’ bank accounts and tax file numbers

24BAOffshore persons’ bank accounts and tax file numbers

Tax codes and tax rates for certain payments

PAYE tax codes

24BPAYE tax codes 24CNotified tax codes 24DTax codes provided by Commissioner 24DTax code for parental leave payment 24DBUse of unsuitable tax codes 24ENon-notified tax codes 24FRates of tax for schedular payments: standard, payee, and set rates 24GSpecial tax rates for schedular payments 24HExempt schedular payments 24INotification requirements 24IBVariation of requirements

PAYE certificates, notification, and applications

24JProof of payment 24LSchedular notification 24LBSchedular tax rate elected by payee 24LCSchedular tax rate prescribed by Commissioner 24MExemption certificates for schedular payments 24NSpecial tax rate certificates for schedular payments 24OCertain information required from agricultural, horticultural, or viticultural employers 24PVariation of requirements

Investment income information

25BInvestment income information: outline of provisions 25CInvestment income 25DInvestment income information 25EWho must provide investment income information to Commissioner 25FInformation on interest 25GInformation on dividends 25HInformation on royalties paid to non-residents 25IInformation on Maori authority distributions 25JInformation on attributed PIE income 25KInformation on attributed PIE income: locked-in funds 25LInformation from public unit trusts 25MInformation from emigrating companies 25MBInformation from custodial institutions 25NInformation from payers with no withholding obligation 25NBDe minimis filing requirements for certain persons 25OCorrection of errors in investment income information 25PNon-electronic filing of investment income information 25QSetting electronic and non-electronic filing requirements 25RInvestment income information: variation of requirements

RWT rates, certificates, and records

26Records to be kept for RWT purposes 26BUse of unsuitable RWT rates 26CRWT withholding certificates 27Provision of tax file numbers 28Recipient of resident passive income to provide tax file number when RWT not withheld 28BNotification of investors’ tax file numbers 28CPerson advising retirement savings scheme of retirement scheme prescribed rate 28DInformation required from notified foreign investors

Statements, notices, and certificates

29Shareholder dividend statement to be provided by company 30Statement to shareholder when FDP credit attached to dividend 30AStatement to shareholder when CTR credit attached to dividend 30BStatement to share supplier when share user makes replacement payment under share-lending arrangement 30CCredit transfer notice to share supplier and Commissioner when share user transfers imputation credit under share-lending arrangement 30DStatements to shareholders when certain assets held by companies 30EStatement to transferee by life insurer when transferring life insurance policies 31Maori authority to give notice of amounts distributed 31BNotification requirements for PIEs 31CNotification requirements for multi-rate PIEs 32Records of specified charitable, benevolent, philanthropic, or cultural bodies 32ARecords to be provided by employer who contributes to superannuation fund 32BCertification requirements for withdrawals subject to section CS 1 of Income Tax Act 2007 32CCertification requirements for transfers from superannuation funds 32DDisclosure requirements for purpose of continuity provisions and public unit trusts

Resident passive income

32EApplications for RWT-exempt status 32FCalculation of annual gross income when threshold met 32GEvidence of annual gross income and consequences of failure to meet threshold 32HRWT-exempt status when persons meet requirements 32IProviding RWT-exempt status to person who does not meet requirements 32JRWT-exempt status for unincorporated bodies 32KFailing to meet basis of exemption 32LRevocation of RWT-exempt status

Non-resident passive income

32MPersons with approved issuer status

Foreign dividends

32NInformation requirements when payments for foreign dividends reduced

Returns

Returns, etc

33Returns of income 33AAExceptions to requirement for return of income 33AAnnual returns of income not required 33BReturn not required for certain scheduler gross income 33CReturn not required for certain providers of personal services 33DReturn not required for non-resident seasonal worker 33EResearch and development tax credits: supplementary return 33FResearch and development tax credits: extension of time for 2019–20 income year 34Presumption as to authority of person making return 34BCommissioner to list tax agents 35Power of Commissioner to prescribe forms 36Commissioner may approve furnishing of return information by electronic means 36AElectronic format of employer monthly schedule and PAYE payment form 36ABElectronic return requirements for multi-rate PIEs 36BOther formats of employer monthly schedule 36BBElectronic format for details required for tax pooling intermediaries 36BCElectronic format for details required under subpart EK of Income Tax Act 2007 36BDElectronic filing requirements for registered persons 36BEResearch and development tax credits: electronic formats 36CParticulars furnished in electronic format 36CAElectronic filing exemption for new businesses 36DNon-electronic filing of employer monthly schedule 36EElection available to other employers

Returns and return dates

37Dates by which annual returns to be furnished 38Returns to annual balance date 39Consequential adjustments on change in balance date 39BChanges in return dates: taxpayers with provisional tax and GST liabilities 40General requirements for returns 41Annual returns by persons who receive credit under family scheme 41AReturns in relation to charitable or other public benefit gifts 41BReturn by person applying for tax credit on redundancy payment 42Returns by joint venturers, partners, and partnerships 42BReturns by look-through companies and owners of interests 42CIncome tax returns by undischarged bankrupt 43Income tax returns and assessments by executors or administrators 43ANon-active companies may be excused from filing returns 43BTrustees, administrators, or executors of certain trusts or estates not required to file returns 44Commissioner may in certain cases demand special returns, and make special assessments 44ASpecial returns by taxpayers affected by reduced deductions under Income Tax Act 2007 44BSpecial returns for financial arrangements 44CCertificates about trees 44DNatural product dealer certificate 45AIM method information: taxpayers 45BAIM method information: approved AIM providers 45New Zealand superannuitant to estimate other income 46Employers to make returns as to employees 46AAccident Rehabilitation and Compensation Insurance Corporation to provide information as to recipients of weekly compensation

Fringe benefits

46BFBT returns for quarters 46CFBT returns for years 46DFBT returns: changes in payment periods 46EFBT returns: information for calculations 47ESCT statements provided by employers and others 47BRSCT statements provided by retirement scheme contributor or retirement savings scheme 48Special arrangements for supply of information by employer or PAYE intermediary to Commissioner 48BReconciliation statement for retirement scheme contribution withholding tax 49NRWT withholding certificates and annual reconciliations 50Statement of payment of RWT 51RWT withholding reconciliation statements 52Disclosure of interest payments when no requirement to withhold RWT 53Disclosure of certain financial arrangement transactions where interest payable to exempt person, etc 54Information in relation to recipients of resident passive income 54BReturn of statement for RLWT 54CInformation in relation to payment of RLWT 54DInformation in relation to repayment of RLWT 54ERLWT certificate of exemption 55Consequence of inability to provide tax file numbers 55BInformation relating to offshore persons and tax file numbers 56Returns of special accounts 56BCertain information required in returns 57Maori authority to make returns of income 57BRequirements for multi-rate PIEs 58Returns of specified charitable, benevolent, philanthropic, or cultural bodies 59Disclosure of trust particulars 59BAAnnual return for trusts 59BABCommissioner may require trust information for period after 2013–14 income year 59BForeign exemption trust: registration and disclosure 59CTime limits for registration and disclosure of changes 59DAnnual return for foreign exemption trust 59DBDeregistration of foreign exemption trusts 59EFees: regulations and exemption 60Returns of inter-related arrangements 61Disclosure of interest in foreign company or foreign investment fund 61BDisclosure requirements for high-value assets intended to be used in making taxable supplies 62Returns as to debentures and interest on debentures 63Commissioner to be notified of bonus issue 63BDisclosure requirements for exempt ESSs 64Co-operative company to provide particulars of deemed dividend 65Information to be furnished with return by petroleum mining entity making dispositions of shares or trust interests 65BInformation to be furnished with return by entity apportioning interest expenditure under section FE 6B 66Annual and other returns for PCA persons 67Company dividend statement when ICA company declares dividend 68Statement when FDP credit attached to dividend 68AStatement when CTR credit attached to dividend 68BDistribution statement required when Maori authority makes distribution 68CTax credit relating to KiwiSaver and complying superannuation fund members: member credit form

Research and development

Foreign dividends

71BReturn requirements for refunds: foreign dividends 72Annual FDPA return to be furnished where Commissioner so requires, or where company ceases to be resident in New Zealand 73Annual FDPA returns of consolidated groups 74Annual ICA return to be furnished in respect of consolidated imputation group 75Notification of amalgamation to Commissioner 76Amalgamated company to assume rights and obligations of amalgamating company 77Company electing to maintain branch equivalent tax account to furnish amended annual ICA return 78Annual and other returns for BETA persons 78BApplications for tax credits 78CDisclosure when changes occur 78DEvidential requirements for tax credits 78EInformation for underlying foreign credits 78FTime for providing information in relation to underlying foreign credits 78GCountry-by-country report from large multinational group 79Other annual returns 80Commissioner may require other returns to be made

Part 3A:
Income statements

80AApplication 80BNotification required that taxpayer not subject to this Part 80CRequests for income statements 80DCommissioner must issue income statement 80EParticulars to be included in income statement 80FTaxpayer obligations and assessment on receipt of income statement 80GIncome statement deemed return 80HIncome statement deemed assessment 80IDeemed matters

Part 3B:
Credits of tax

Applying for payment by instalment

80KAApplications for payment of tax credit by instalment 80KBContents of application 80KCWhen tax file number of child does not accompany application 80KDWhat Commissioner must do on receipt of application

Notices of entitlement

80KENotices of entitlement 80KFEffect of giving notice of entitlement 80KGNotifying Commissioner of events affecting notice of entitlement 80KHCancellation of notice of entitlement

Payments to holders of notices of entitlement

80KIPayment of tax credit by instalment by Commissioner 80KJDelay in providing notice of entitlement 80KKPayment by instalment of family tax credit and Best Start tax credit (without abatement)80KLPayment of instalments into accounts 80KLBRecovery of excess tax credits 80KMSummary of instalments paid

Payments of tax credit by chief executive

80KNPayment of tax credit by chief executive 80KODetermining WFF tax credit 80KPWhen entitlement to main benefit ends 80KQNo authority to pay WFF tax credit 80KRRequest by chief executive to stop payment of WFF tax credit 80KSRequest by person to stop or re-start payment of tax credit 80KTDetails of payments of tax credits

When Commissioner takes over payment of tax credit from chief executive

80KUPayment of tax credit taken over by Commissioner 80KVStatement of family scheme income 80KWEffect of extra instalment on entitlement to tax credit

Part 4:
Secrecy

Part 4A:
Disputes procedures

89APurpose of this Part 89ABResponse periods 89ACResponse period when initiating notice filed late

Notices of proposed adjustment

89BCommissioner may issue notices of proposed adjustment 89CNotices of proposed adjustment required to be issued by Commissioner 89DTaxpayers and others with standing may issue notices of proposed adjustment 89DATaxpayer may issue notice of proposed adjustment for taxpayer assessment 89EElection of small claims jurisdiction of Taxation Review Authority 89FContent of notice of proposed adjustment 89GIssue of response notice 89HDeemed acceptance 89ICircumstances where disputant may not challenge adjustment 89JWhere Commissioner accepts adjustment proposed by disputant 89KLate actions deemed to occur within response period 89LApplication to High Court

Disclosure notices

89MDisclosure notices 89NCompleting the disputes process 89OTest cases 89PChallenge notice for taxpayer-initiated disputes

Part 5:
Determinations

90Determinations in relation to financial arrangements 90AAApplication of determinations made under section 90 90ABApplication for determination 90ACDeterminations relating to financial arrangements 90ADNotification of determinations and notices 90AEFour-year period in which determination not required to be applied 90AFImputation arrangement to obtain tax advantage 90AGMaori authority arrangements to obtain tax advantage 90ADeterminations in relation to apportionment of interest costs 91Determinations in relation to petroleum mining operations 91AADeterminations in relation to standard-cost household service 91AABDeterminations relating to types and diminishing values of listed horticultural plants

Determinations relating to prepayments

91AACExemptions from section EA 3 of Income Tax Act 2007

Determinations relating to livestock

91AADDetermination on methods for calculating value of specified livestock under national standard cost scheme 91AAEPublication and revocation of determinations relating to livestock

Determinations relating to depreciation

91AAFDetermination on economic rate 91AAGDetermination on special rates and provisional rates 91AAHCommissioner may decline to issue special rate or provisional rate 91AAIEffect on special rate of change in circumstances 91AAJDisputing or challenging determination 91AAKNotice of setting of economic rate 91AALDetermination on maximum pooling value 91AAMApplications for determinations

Determinations relating to environmental restoration expenditure

91AANDeterminations on rates for diminishing value of environmental expenditure

Determinations relating to calculation of FIF income using fair dividend rate method

91AAODetermination on type of interest in FIF and use of fair dividend rate method

Determinations relating to non-attributing active CFCs

91AAQDetermination on insurer as non-attributing active CFC

Determinations relating to relocation payments

91AARDetermination relating to eligible relocation expenses

Determinations relating to family scheme income

91AASDeclaration of emergency event for purposes of family scheme income

Determinations relating to certain employment expenditure

91AATDeterminations relating to certain employment expenditure

Determinations relating to foreign account information-sharing agreements

91AAUParticipating jurisdictions for CRS applied standard 91AAVSuspension of reportable jurisdictions for CRS applied standard 91AAWNon-reporting financial institutions and excluded accounts for CRS applied standard

Determinations relating to AIM method

91AAXAccounting and rate determinations relating to AIM method 91AAYClass of taxpayers that must not use AIM method 91AAZAIM method information

Part 5A:
Binding rulings

91APurpose of this Part 91BInterpretation 91CTaxation laws in respect of which binding rulings may be made 91CBBinding rulings on certain matters 91CCBinding rulings on certain determination matters

Public rulings

91DCommissioner may make public rulings 91DAContent and notification of a public ruling 91DBEffect of a public ruling 91DCApplication of a public ruling 91DDExtension of a public ruling 91DEWithdrawal of a public ruling

Private rulings

91ECommissioner to make private rulings on application 91EAEffect of a private ruling 91EBApplication of a private ruling 91ECApplying for a private ruling 91EDDisclosure requirements 91EECommissioner may request further information 91EFConditions on which private ruling based 91EGRight to consultation 91EHContent and notification of a private ruling 91EIWithdrawal of a private ruling 91EJTreatment of information

Short-process rulings

91EKCommissioner may make short-process rulings 91ELApplying for short-process ruling 91EMEffect of short-process ruling 91ENApplication of short-process ruling 91EODisclosure requirements 91EPCommissioner may request further information 91EQConditions on which short-process ruling based 91ERRight to consultation 91ESContent and notification of short-process ruling 91ESBWithdrawal of a short-process ruling 91ETTreatment of information

Product rulings

91FCommissioner may make product rulings 91FAEffect of a product ruling 91FBApplication of a product ruling 91FCApplying for a product ruling 91FDDisclosure requirements 91FECommissioner may request further information 91FFConditions on which product ruling based 91FGRight to consultation 91FHContent and notification of a product ruling 91FIExtension of a product ruling 91FJWithdrawal of a product ruling 91FKTreatment of information

Rulings generally

91GEffect of legislative change on binding ruling 91GAApplying for ruling on effect of change in legislation 91GBCommissioner to make status rulings on application 91GCRequirements for status ruling applications 91GDCommissioner may request further information 91GERight to consultation 91GFContent of status ruling 91GGNotification of status ruling 91GHEffect of status ruling 91GIEffect of minor error on binding ruling 91HApplications for rulings not to affect obligations and powers 91IRegulations 91JCommissioner may not issue ruling to applicant with outstanding debts

Part 6:
Assessments

92Taxpayer assessment of income tax 92AAADetermination on cost of timber 92AAAssessment for tax credits under Part M of Income Tax Act 2007 92ABAssessments of liabilities of shareholders of qualifying companies 92ABasic rates of income tax 92BTaxpayer assessment of GST 93Assessment of FBT 93BTrustee income: Commissioner’s power to assess 93CForeign tax credits: Commissioner’s power to amend assessments 94Assessment of qualifying company election tax and additional tax 94AAssessment of shortfall penalties 94BLiability of wholly-owned group and other bodies to pay shortfall penalties 94CAssessment of penalties under sections 142H and 142I 95Assessment of withdrawal tax 96Assessment of New Zealand superannuitant surcharge 97Assessment of imputation penalty tax 97BAssessment of Maori authority distribution penalty tax 97CAssessment of R&D repayment tax 98Assessment of ESCT 98BAssessment of retirement scheme contribution withholding tax 99Assessment of RWT 100Assessment of NRWT 101Assessment of further income tax 101BAssessment of imputation additional tax 102Assessment of FDP 103Assessment of further FDP 103AAssessment of FDP relating to conduit tax relief 104Assessment of FDP penalty tax 104BDetermination of credits and debits in memorandum accounts 105Assessments and determinations made by electronic means 106Assessment where default made in furnishing returns 107Amended assessment for income tax where return date between 31 March and 1 October 107ATime bar for amendment of assessments 108Time bar for amendment of income tax assessment 108ATime bar for amending GST assessment 108ABTime bar for amending assessment of KiwiSaver contributions 108ACTime bar for amending assessment of student loan deductions 108BExtension of time bars 109Disputable decisions deemed correct except in proceedings 109ATransitional provision affecting assessments 110Evidence of returns and assessments 111Commissioner to give notice of assessment to taxpayer 112Commissioner to make determination of life insurer's policyholder net loss 113Commissioner may at any time amend assessments 113ACorrection of certain errors in subsequent returns 113BAmended assessments if dividend recovered or repaid 113CAmended assessments for attributed repatriation dividends 113DAmended assessments for research and development tax credits 113EAmended assessments: research and development tax credits 113FAmended assessments: election under section HC 33 to satisfy trustee liability 113GAmended assessments: tax year to which net loss carried back under section IZ 8 114Validity of assessments 115Determination of claims for foreign tax credits 116Notice of foreign tax credit determination to taxpayer 117Foreign tax credit determination deemed correct except in proceedings on objection 118Evidence of foreign tax credit determination 119Commissioner may determine amount of provisional tax 119AAmount of provisional tax based on 1997–98 or earlier income year

Part 7:
Interest

120Commissioner to pay interest on certain excess tax 120APurpose of this Part and nature of interest 120AAApplication of Part 120BPersons excluded

General provisions

120CDefinitions 120DLiability to pay interest 120EAmount of interest payable 120EAAmount of interest payable to or by life insurers 120FInterest priority and rights of Commissioner 120GPayment date 120HSetting and varying interest rates 120INo right to object to interest

Specific provisions

120JPurpose of specific provisions 120KInstalments of and due dates for provisional tax 120KBProvisional tax instalments and due dates generally 120KBBInterest for most standard method provisional taxpayers 120KBCInterest for AIM method provisional taxpayers 120KCResidual income tax of new provisional taxpayer 120KDProvisional tax instalments in transitional years 120KEProvisional tax and rules on use of money interest 120KFTolerance for provisional tax instalments 120LMeaning of unpaid tax and overpaid tax for provisional tax purposes 120LBMeaning of unpaid tax and overpaid tax for certain transferees under AIM method 120MWhere provisional tax paid by company does not count as overpaid tax 120NVariation to definition of date interest starts for provisional tax 120OVariation to definition of date interest starts 120OBVariation to definitions for determining interest chargeable or payable to PAYE intermediaries 120OCApplication of sections 120A, 120AA and 120D to 120I to PAYE intermediaries 120ODApplication of sections 120A, 120AA and 120C to 120I to intermediaries who operate tax pooling accounts 120OEInterest paid on deposits in tax pooling accounts 120PSpreading tax liability or apportioning income back over earlier income years 120PAApplying tax credit for supplementary dividend to earlier income year 120QDue date for underestimation penalty tax 120RSpecial provision for FDP 120SAmount in nature of interest to be added to fringe benefit tax paid on annual or income year basis 120TInterest on deferrable tax 120UBond provided for obligation to withhold or deduct amount of tax 120VInterest on overpaid RWT 120VBInterest on overpaid AIM method provisional tax 120VCInterest on some provisional tax 120VDInterest on tax credits for charitable or other public benefit gifts 120WCommissioner's official opinions 120XPetroleum miners’ tax losses 121Interest to be charged where residual income tax exceeds provisional tax 122Interest on tax overpaid 123Amount in nature of interest to be added to fringe benefit tax paid on annual or income year basis 124Interest to be charged and payable with respect to certain dividend withholding payments

Part 7B:
Third-party providers

124BWhat this Part does

Tax agents, representatives, and nominated persons

124CTax agents 124DRepresentatives 124EInformation requirements for tax agents and representatives 124FNominated persons 124GRefusal, removal, or disallowance of status of tax agents, representatives, and nominated persons

PAYE intermediaries

124HPAYE intermediaries 124IApplication for approval as PAYE intermediary 124JRevocation of approval 124KFitness of applicants 124LApplication for approval as listed PAYE intermediary 124MGrounds for revocation of listing 124NProcedure for revocation of listing 124OEmployers’ arrangements with PAYE intermediaries 124PPrivacy requirements 124QAmended employment income information 124RSubsidy claim forms

Tax pooling intermediaries

124SEstablishing tax pooling accounts 124TRole of Commissioner 124UApplications to establish tax pooling accounts 124VFitness of applicants 124WRequirements for applications to establish tax pooling accounts 124XWinding up tax pooling accounts

Approved AIM providers

124YApproval of approved AIM providers 124ZRevocation of approval of AIM providers: Commissioner 124ZBRevocation of approval of AIM providers: provider 124ZCPublication of approval or revocation 124ZDAIM method: approval of large business AIM-capable system 124ZEAIM method: approval of person over $5,000,000

RWT proxies

124ZFRWT proxies

Payroll donations

124ZGTransfer of payroll donations by employers

Research and development

124ZHApproved research providers 124ZICertificates for research and development

Part 8:
Objections

125AApplication of Part 8 125Certain rights of objection not conferred 126Procedure for objections to assessments 127Commissioner to consider objections and may amend assessment 128Payment of disputed tax where competent objection lodged 128AWaiver of payment or security 129Determination of objection not to affect other matters 130Objections to allowance determinations 131Objections to determinations 132Application of this Part to objections to foreign tax credit determinations 133Wrong PAYE withholding determination a ground for objection

Case stated

134Objector may require that objections be submitted to Taxation Review Authority 135Powers of Taxation Review Authority on determination of objection or case stated 136When objection may be referred directly to High Court 137Test case procedure 138Determination by Taxation Review Authority of objection in relation to allowances

Part 8A:
Challenges

138AApplication of this Part 138BWhen disputant entitled to challenge assessment 138CWhen disputant entitled to challenge disputable decision other than assessment 138DChallenge may in exceptional circumstances be commenced after response period 138ECertain rights of challenge not conferred 138FChallenging disputable decisions which are not assessments 138GEffect of disclosure notice 138HApplication to strike out proceedings 138IPayment of disputed tax 138JWaiver of payment or security 138KDetermination of challenge not to affect other matters 138LChallenging civil penalties 138MWrong PAYE withholding determination a ground for challenge 138NProceedings may be transferred to different hearing authorities 138OTransfer from small claims jurisdiction of Taxation Review Authority 138PPowers of hearing authority 138QChallenges designated as test cases 138RStay of proceedings for similar cases 138SChallenge to be heard before Taxation Review Authority

Part 9:
Penalties

139Purposes of this Part

Civil penalties

139ALate filing penalty for certain returns 139AAALate filing penalty for GST returns 139AANon-electronic filing penalty 139ABPenalty for member of large multinational group failing to provide information 139ACPenalty for trustee’s failure to register, provide information for, foreign exemption trust 139BLate payment penalty 139BAImposition of late payment penalties when financial relief sought 139CLate payment penalty and provisional tax 140Where another person withholds RWT 140AUnderestimation penalty where income tax underestimated as at final instalment date 140BImputation penalty tax payable where end of year debit balance 140BBTransitional imputation penalty tax payable in some circumstances 140CTransitional imputation penalty tax payable in some circumstances 140CATransitional FDP penalty tax payable in some circumstances 140CBMaori authority distribution penalty tax payable where end of year debit balance 140DApplication of other provisions of Act to imputation penalty tax and dividend withholding payment penalty tax 140DBApplication of other provisions of Act to Maori authority distribution penalty tax 141Tax shortfalls 141AAShortfall penalty if non-resident contractor relieved from all liability to pay tax on contract payment 141ANot taking reasonable care 141BUnacceptable tax position 141CGross carelessness 141DAbusive tax position 141EEvasion or similar act 141EAShortfall penalty and provisional tax 141EBPromoter penalties 141ECDefinition of promoter 141EDPenalty for unpaid amounts of employers’ withholding payments 141EEPenalty for acquiring or possessing electronic sales suppression tools 141FCommissioner to determine portions in which shortfall penalty payable by taxpayer and officers of taxpayer 141FBReduction of penalties for previous behaviour 141FCLoss attributing qualifying companies—reduction of shortfall penalties 141FDShareholders of loss-attributing qualifying companies 141GReduction in penalty for voluntary disclosure of tax shortfall 141GBReduction of electronic sales suppression penalties 141HReduction for disclosure of unacceptable tax position 141IReduction where temporary shortfall 141JLimitation on reduction of shortfall penalty 141JAAShortfall penalty for not taking reasonable care or for taking unacceptable tax position may not be more than $50,000 141JAApplication of Part 9 to non-filing taxpayers 141JBApplication of Part 9 to PAYE intermediaries 141KIncreased penalty for obstruction 141KBDiscretion to cancel some shortfall penalties 141LDuty of Commissioner to report on application of penalties 142Due date for payment of late filing penalty 142ANew due date for payment of tax that is not a penalty 142ABNew due date for new and increased assessments 142ACNew due date for payment of terminal tax by certain individuals 142BDue date for shortfall penalties 142CDue date for payments by officers 142DDue date for repayment of excess refund or credit of tax 142EDue dates for payment of imputation penalty tax 142FDue date for payment of deferrable tax 142GDue date for payment of non-electronic filing penalties 142GBDue date for payment of penalty by member of large multinational group 142HFailures of financial institutions to meet requirements under Part 11B and CRS applied standard 142IFailures to meet requirements under Part 11B to provide information, including self-certifications

Criminal penalties

143Absolute liability offences and strict liability offences 143AKnowledge offences 143BEvasion or similar offence 143BBManufacturing or supplying electronic sales suppression tools 143BCAcquiring or possessing electronic sales suppression tools 143COffences related to disclosure of sensitive revenue information by revenue officers 143DOffences related to disclosure of certain information by persons other than revenue officers 143EOffences related to disclosure of certain information to employees 143EBOffences related to disclosure of certain information by employers and directors 143FOffence in relation to inquiries 143GOffence in relation to court orders 143HObstruction 144Certain offences in relation to Stamp and Cheque Duties Act 1971 145Penalties for offences for which no specific penalty imposed 146Publication of names 147Employees and officers 147BDirectors and officers of resident foreign trustee 148Aiding or abetting

Proceedings and evidence

149Imposition of civil and criminal penalties 149AStandard of proof and onus of proof 149BProceedings for offences 150Charging document may charge several offences 150ACharging document may be filed within 10 years for income tax and GST offences 150BCharging document may be filed within 4 years for stamp duty and gaming duty offences 150CAuthority to file charging document 150DEvidence in proceedings for failure to furnish returns or information 150EEvidence inconsistent with instrument not admissible to reduce stamp duty 151Non-presentation of instrument for stamping 152Evidence of financial or property transactions

Special additional taxes

153Imputation penalty tax payable where end of year debit balance of imputation credit account 154Dividend withholding payment penalty tax payable where end of year debit balance 155Application of other provisions of this Act to imputation penalty tax and dividend withholding payment penalty tax

Part 10:
Recoveries

General

156Mode of recovery of unpaid tax 156ARecovery of civil penalties 157Deduction of tax from payments due to defaulters 157AApplication of Parts 7 and 9 to defaulters 158Procedure in High Court where defendant absent from New Zealand 159Procedure in District Court where defendant absent from New Zealand 160Commissioner may appear in legal proceedings by officer of public service 161Costs against Commissioner 162Proceedings not affected by vacancy or change in office of Commissioner 163No limitation of action to recover tax 164Crown Proceedings Act 1950 not affected 165Recovery of tax paid by one person on behalf of another 165AARecovery of tax paid by superannuation fund 165ARecovery of excess tax credits allowed 165BRecovery of overpaid refunds: NRWT 166Tax paid in excess may be set off against additional tax when assessment reopened 166BShipping business of absentee taxpayer

Deductions

167Recovery of tax and payments from employers or PAYE intermediaries 168Employer or PAYE intermediary failing to withhold or deduct tax or payments 169Unpaid tax payments, etc, to constitute charge on employer's or PAYE intermediary's property 170Recovery of RWT 171Person failing to withhold RWT 172Unpaid RWT constitutes charge on payer's property 173Overpayment of family tax credit, etc

Part 10A:
Tax recovery agreements

173AApplication of Part 173BDefinitions 173CTax recovery agreements 173DTaxes that may be recovered 173ERequests for assistance 173FScope of assistance 173GLimitations on assistance in recovery 173HContested act of assistance 173IRights of appeal 173JCertificates given by Commissioner

Part 10B:
Transfers of excess tax

173KApplication

Transfer rules

173LTransfer of excess tax within taxpayer's accounts 173MTransfer of excess tax to another taxpayer 173MBLimitation on transfer by PAYE intermediary 173NTransfer of excess tax: tax credits 173OTransfer of excess tax if no date specified by taxpayer

Application of transfer rules to excess provisional tax

173PTransfer of excess provisional tax if provisional tax paid is more than taxpayer's provisional tax liability, determined before assessment 173QTransfer of excess provisional tax if taxpayer estimates or revises estimate of residual income tax, determined before assessment 173RTransfer of excess tax if provisional tax is more than taxpayer's residual income tax, determined after assessment

Miscellaneous

173STransfers of interest on overpaid tax 173TApplication of excess tax if taxpayer has unsatisfied tax liability 173UTransfers of excess financial support 173VTransfer of unclaimed money on request

Part 11:
Remission, relief, and refunds

174Application of Part to tax years before 1994 174AAPower of Commissioner in respect of small amounts of refunds or tax payable 174APartial refunds of GST 175Small amounts of additional tax, etc, not to be charged 176Recovery of tax by Commissioner 177Taxpayer may request financial relief 177AHow to apply serious hardship provisions 177BInstalment arrangements 177CWrite-off of tax by Commissioner 177CAProof of debt 177DRelief to taxpayers to whom new start grants payable 178Remission of underestimation penalty tax 179Relief from additional tax or incremental tax 180Remissions and refunds of imputation penalty tax 181Remissions and refunds of FDP penalty tax 181BRemissions and refunds of Maori authority distribution penalty tax 181CRemission of late payment penalties and interest incurred due to obligation to pay further income tax 181DRemission of late payment penalties and interest incurred due to obligation by Maori authority to pay further income tax 182Relief from additional tax incurred due to default in payment of tax 183Obligation to pay tax on foreign investment fund income able to be suspended 183AARemission for GST transitional taxable periods 183ARemission for reasonable cause 183ABARemission in circumstances of emergency event 183ABABRemission of interest for taxpayers affected by COVID-19: general rules 183ABACRemission of interest on residual income tax for 2020–2021 or 2021–2022 tax year for provisional taxpayers affected by COVID-19 183ABCancellation of late payment penalties imposed before 1 April 2002 183BCancellation of late payment penalties under instalment arrangement 183CCancellation of interest 183CACancellation of interest charged on unpaid provisional tax 183CBCancellation of interest charged on payments under PAYE rules or provisional tax rules arising from work in Canterbury earthquake recovery programme 183DRemission consistent with collection of highest net revenue over time 183ERemission of interest if unpaid tax remitted 183FSmall amounts of penalties and interest not to be charged 183GRefunds by Commissioner 183HRemission on application 183ITime when cancellation takes effect 184Refund of tax paid on income subsequently exempted by Order in Council 184AARefund of tax: deductible amounts of interest 184ARefund of tax paid in excess made by direct credit to bank account 184BTax type that may be direct credited to bank account 185Payment out of Crown Bank Account 185BApplication of particular provisions in this Part to PAYE intermediaries 185CEstablishment of Listed PAYE Intermediary Bank Account 185DPayments into, and out of, Listed PAYE Intermediary Bank Account

Part 11B:
Foreign account information-sharing agreements

185EPurpose

FATCA agreement

185FPermitted choices in relation to FATCA agreement 185GObligations related to FATCA agreement: registration 185HObligations related to FATCA agreement: due diligence 185IObligations related to FATCA agreement: information for NZ competent authority 185JObligations related to FATCA agreement: information for third parties 185KInformation provided in form prescribed by Commissioner 185LForeign account information-sharing agreements: anti-avoidance 185MTimeframes not specified

CRS standard

185NRequirements for financial institution 185OApplication of Common Reporting Standard

Foreign account information-sharing agreements generally

185PRequirements for persons to provide information to financial institution 185QRequirements and penalties for entities that are not persons 185RForeign account information-sharing agreements: anti-avoidance

Part 12:
Offences and penalties

Penal tax

186Penal tax for evasion of deficient tax 187Penal tax deemed to be of the same nature as deficient tax 188Assessment of penal tax 189Date for payment of penal tax 190Objections to assessments of penal tax 191Recovery of penal tax 192Recovery of penal tax from executors or administrators 193Recovery of penal tax not affected by conviction of taxpayer 194Penal tax for default in making or paying tax deduction 195Penal tax for failure to deduct specified superannuation contribution withholding tax 196Penal tax for default in making or paying resident withholding tax deductions 197Penal tax for default in making or paying deductions of non-resident withholding tax

Offences

198Offences relating to obstruction of departmental functions 199Penalty for failure to furnish returns, etc 200Offence for failure to provide information requested by Commissioner 201Offence for officers and employees of corporate bodies 202Further offences for officers and employees of corporate bodies 203Offence for failure of officers of department to maintain secrecy 204Offence for failure of other persons to maintain secrecy 205Secrecy requirements where information given by department 206Offences relating to tax deductions 207Offences for failure to deduct specified superannuation contribution withholding tax 208Offences relating to resident withholding tax 209Offences for failure to deduct non-resident withholding tax 210Offences relating to dividend withholding payments 211Offences for failure to make deductions 212Offences relating to family support 213Offences in relation to inquiry before a District Court Judge 214Offences in relation to inquiry by Commissioner

Proceedings

215Proceedings to be taken summarily 216Information may charge several offences 217Information may be laid within 10 years 218Authority to lay information

Evidence

219Evidence in proceedings for failure to furnish returns or information 220Evidence of financial or property transactions

Penalties

221Penalties for offences 222Penalties for failure to meet various tax obligations 223Publication of names of tax evaders

Part 13:
Miscellaneous

224Regulations: Inland Revenue Acts generally 225Regulations 225AARegulations: co-operative dairy and marketing companies 225APower to make interim payments of WFF tax credit 225ABAOrders in Council: periods for purposes of certain provisions of Income Tax Act 2007 relating to disposals of trading stock 225ABOrder in Council amending schedule 18B of Income Tax Act 2007 225BOrder in Council amending Schedule 27 225BAOrder under section 225B is confirmable instrument 225COrder in Council amending Schedule 38 of Income Tax Act 2007 225DRegulations: community housing trusts and companies 226Power to extend time for doing anything under Act 226BBusiness group amnesties 226CSecure credit or debit card payments and fees 226DReportable jurisdictions for CRS standard and Part 11B 226EApplication of changes to CRS standard

Part 14:
Transitional provisions and savings

Schedule 1:
Inland Revenue Acts

Schedule 2:
Application of CRS standard

Schedule 3:
Record-keeping requirements

Schedule 4:
Reporting of employment income information

Schedule 5:
Certain tax codes and rates

Schedule 6:
Reporting of investment income information

Schedule 7:
Disclosure rules

Schedule 8:
Reporting of income information by individuals and treatment of certain amounts

Tax Administration Act 1994

Penalties - Special additional taxes

154: Dividend withholding payment penalty tax payable where end of year debit balance

You could also call this:

"Penalty tax if you owe money at the end of the year"

Illustration for Tax Administration Act 1994

You have a debit balance at the end of the year. This means you owe money. A penalty tax is payable in this situation, but this rule is repealed.

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This page was last updated on 28 November 2025

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM356972.

Topics:

Money and consumer rights > Taxes

153: Imputation penalty tax payable where end of year debit balance of imputation credit account, or

"Paying imputation penalty tax when you owe money at the end of the year"

155: Application of other provisions of this Act to imputation penalty tax and dividend withholding payment penalty tax, or

"What happens to penalty taxes under the Tax Administration Act"

Part 9Penalties
Special additional taxes

154Dividend withholding payment penalty tax payable where end of year debit balance (Repealed)

Notes

Section 154: repealed, on 26 July 1996, by section 43 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).