Tax Administration Act 1994

Remission, relief, and refunds

174AA: Power of Commissioner in respect of small amounts of refunds or tax payable

You could also call this:

"The Commissioner can ignore small tax debts or refunds of $20 or less."

Illustration for Tax Administration Act 1994

The Commissioner can write off tax, not make you pay tax, or not give you a refund if you owe $20 or less. They can also do this if you have paid $5 or less in tax. The Commissioner has this power under the Income Tax Act 2007. You do not have to do anything for this to happen.

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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=DLM358323.

Topics:

Money and consumer rights > Taxes

174: Application of Part to tax years before 1994, or

"Rules for reducing penalties from before 1994"

174A: Partial refunds of GST, or

"Getting a refund for overpaid GST"

Part 11Remission, relief, and refunds

174AAPower of Commissioner in respect of small amounts of refunds or tax payable

Despite any other provision of this Act or the Income Tax Act 2007, the Commissioner may write off tax, refrain from making an assessment of tax, refrain from collecting tax or refrain from refunding tax if—
the balance of the tax payable is not more than $20; or
the tax paid, withheld, or deducted is not more than $5.

Notes

Section 174AA: inserted, on 20 May 1999 (applying on and after 20 May 1999), by section 113(1) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
Section 174AA: amended, on 1 April 2008 (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 174AA: amended, on 1 April 2003, by section 146 of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
Section 174AA(b): replaced (with effect on 1 April 2008), on 30 March 2017 (applying to the tax on income derived in the 2008–09 and later income years), by section 340(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).