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Tax Administration Act 1994

Tax recovery agreements

173G: Limitations on assistance in recovery

You could also call this:

"When the Commissioner can help collect unpaid tax from someone who owes it"

Illustration for Tax Administration Act 1994

The Commissioner can help recover unpaid tax if the person who owes it cannot stop the collection. You must have a right to get the money under the laws of the country that asked for help. The person who owes the tax cannot prevent the collection. The Commissioner can assist when the time to dispute the tax has passed. You may have withdrawn your objection or given up your right to contest. The Commissioner can also help if you have to pay some or all of the tax. The Commissioner will not help if you are trying to delay or avoid paying the tax. You may be trying to leave New Zealand to avoid paying or hiding your assets. The Commissioner cannot help if the tax became uncontested more than six years before the agreement started. You cannot ask for help more than 15 years after the tax became uncontested. For more information, you can look at section 173E(2)(a). This section explains when the Commissioner can assist with recovering unpaid tax. You should understand the rules before asking for help.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM357945.

Topics:
Money and consumer rights > Taxes
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173F: Scope of assistance, or

"How the Commissioner can help you with tax problems under a tax agreement"

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173H: Contested act of assistance, or

"Asking for help with a tax problem when you disagree with a decision"

Part 10ATax recovery agreements

173GLimitations on assistance in recovery

  1. The Commissioner may assist in recovering an amount of unpaid tax only if—

  2. payment of the amount is enforceable under the laws of the state of the applicant requesting assistance under a tax recovery agreement; and
    1. the amount is owed by a person who cannot, under the laws of the state of the applicant, prevent collection of the amount.

      1. The circumstances in which the Commissioner may provide assistance under this section include the following in relation to the amount of unpaid tax:

      2. the period within which the person may exercise a right to contest the assessment has expired:
        1. the person has withdrawn an objection in relation to the amount:
          1. the person has waived a right to contest the assessment:
            1. the person is required to pay some or all of the amount, regardless of any right to contest the assessment:
              1. the person is otherwise unable, under the laws of the state of the applicant, to prevent collection of the amount.

                1. For the purposes of this section and section 173E(2)(a), the amount referred to in subsection (1) is an uncontested amount.

                2. Subsection (1) does not apply if, after consultation, the competent authorities determine that the taxpayer to whom the request for assistance relates—

                3. acknowledges that the amount of unpaid tax will no longer be contested; or
                  1. may leave New Zealand in order to defeat recovery action; or
                    1. may take steps in relation to the existence or location of the taxpayer's assets that make it more difficult for the Commissioner to recover the unpaid tax; or
                      1. is contesting the assessment solely to delay or frustrate recovery action.

                        1. Assistance must not be given—

                        2. for an amount of unpaid tax that became uncontested more than 6 years before the tax recovery agreement entered into force in New Zealand; or
                          1. if the request for assistance is first made more than 15 years after the date on which the unpaid tax became uncontested.

                            Notes
                            • Section 173G: inserted, on (applying on and after 20 May 1999), by section 112(1) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
                            • Section 173G(1): replaced, on , by section 143 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
                            • Section 173G(1B): inserted, on , by section 143 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
                            • Section 173G(1C): inserted, on , by section 143 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).