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Tax Administration Act 1994

Recoveries - General

157A: Application of Parts 7 and 9 to defaulters

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"What happens if you don't follow the rules about taking money from payments"

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You can be liable to prosecution if you get a notice from the Commissioner to deduct money from payments to a taxpayer and you do not comply. This notice can be under section 157 of this Act, or other laws like section 12L of the Gaming Duties Act 1971, or section 43 of the Goods and Services Tax Act 1985. You will not have to pay interest on unpaid tax under Part 7, or a civil penalty under Part 9.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM357421.

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Part 10Recoveries
General

157AApplication of Parts 7 and 9 to defaulters

  1. A person, not being an employer, who—

  2. receives a notice requiring the person to deduct or extract an amount from payments to a taxpayer from the Commissioner under—
    1. section 157 of this Act; or
      1. section 12L of the Gaming Duties Act 1971; or
        1. section 43 of the Goods and Services Tax Act 1985; or
          1. section 154 of the Child Support Act 1991; or
            1. section 193 of the Student Loan Scheme Act 2011; 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; and
              2. fails to comply with the Commissioner's notice,—
                  1. is liable to prosecution for an offence under Part 9 but is not liable—
                1. to pay interest on the amount of unpaid tax under Part 7; or
                  1. to pay a civil penalty under Part 9.

                    1. Subsection (1) overrides all other provisions of this Act.

                    Notes
                    • Section 157A: inserted, on , by section 46 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
                    • Section 157A(1)(a)(ib): inserted, on , by section 223 of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
                    • Section 157A(1)(a)(iv): replaced, on , by section 223 of the Student Loan Scheme Act 2011 (2011 No 62).