The Commissioner has to try to get as much outstanding tax as possible from you. They might not try to get the tax if it would be a waste of their time or if it would cause you serious hardship. The Commissioner can still take steps to bankrupt you if you are in serious hardship, and this can include going to the District Court or the High Court.

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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=DLM358332.

175: Small amounts of additional tax, etc, not to be charged, or

"You don't have to pay tiny amounts of extra tax."

177: Taxpayer may request financial relief, or

"Get help with tax if paying is too hard"

Part 11Remission, relief, and refunds

176Recovery of tax by Commissioner

The Commissioner must maximise the recovery of outstanding tax from a taxpayer.
Despite subsection (1), the Commissioner may not recover outstanding tax to the extent that—
recovery is an inefficient use of the Commissioner's resources; or
recovery would place a taxpayer, being a natural person, in serious hardship.

Despite subsection (2)(b), the Commissioner may take steps preparatory to, or necessary to, bankrupt the taxpayer, including debt proceedings in the District Court or the High Court.

Notes

Section 176: replaced, on 17 October 2002, by section 92(1) of the Taxation (Relief, Refunds and Miscellaneous Provisions) Act 2002 (2002 No 32).
Section 176(3): inserted, on 30 June 2014, by section 177 of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).