Plain language law

New Zealand law explained for everyone

Tax Administration Act 1994

Recoveries - Deductions

172: Unpaid RWT constitutes charge on payer's property

You could also call this:

"Unpaid tax can be a debt on your property"

Illustration for Tax Administration Act 1994

If you do not pay the right amount of Resident Withholding Tax (RWT) or you owe money to the Commissioner, you will have a charge on your property. This charge is on all your property, including your house and other things you own. The rules about this charge are similar to the rules in section 169. If you are a company and you go into liquidation, or if you are an individual and you go bankrupt, the amount secured by this charge will be treated the same as amounts secured under section 169. You need to think about this when you are dealing with your property and your taxes. The charge will be on your property until you pay the amount you owe.

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 It might be out of date or be missing some parts.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=DLM357918.

Topics:
Money and consumer rights > TaxesHousing and property > Home safety and repairsHousing and property > Land use
Previous

171: Person failing to withhold RWT, or

"What happens if you don't take out tax when you should"

Next

173: Overpayment of family tax credit, etc, or

"What happens if you get too much family tax credit money"

Part 10Recoveries
Deductions

172Unpaid RWT constitutes charge on payer's property

  1. Where a person fails wholly or in part to withhold RWT in accordance with that person's obligations under the RWT rules, or is liable to pay any sum to the Commissioner under the RWT rules, an amount equal to the total for the time being unpaid to the Commissioner in respect of that tax or that sum (including any late payment penalty or shortfall penalty), and in respect of any judgment obtained for that amount or sum (including any costs, fees, or expenses included in the judgment or otherwise payable by the person to the Commissioner in respect of it) shall be a charge on all the real and personal property of the person.

  2. Subject to subsection (3), the provisions of section 169 (except subsection (10)) shall apply to every charge created by this section as if that charge were a charge created by section 169(1).

  3. Any amount secured by a charge under this section shall rank in any liquidation or receivership of a person that is a company, or any bankruptcy or assignment for the benefit of creditors of a person that is an individual, equally with any amounts secured under section 169.

Compare
  • 1976 No 65 s 327R
Notes
  • Section 172 heading: amended, 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 172(1): amended, 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 172(1): amended, on , by section 51 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).