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Tax Administration Act 1994

Remission, relief, and refunds

177: Taxpayer may request financial relief

You could also call this:

"Get help with tax if paying is too hard"

Illustration for Tax Administration Act 1994

You can ask for financial help if paying tax will cause you serious hardship. You do this by making a claim or asking to pay in instalments. The Commissioner will look at your financial situation when you ask for help. You can ask for financial help if paying tax will put you in a difficult spot. The Commissioner might ask you for more information or make a counter offer. You have 20 working days to respond to the Commissioner. If you respond late, it will be treated as a new request for financial help. The Commissioner can accept your request, ask for more information, make a counter offer, or decline your request. You can ask for help by making a claim or asking to pay in instalments with the Commissioner.

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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=DLM358340.

Topics:
Money and consumer rights > Taxes
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"How the Commissioner collects unpaid tax from you"

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177A: How to apply serious hardship provisions, or

"Asking for help if paying tax would cause you serious financial trouble"

Part 11Remission, relief, and refunds

177Taxpayer may request financial relief

  1. A taxpayer, or a person on a taxpayer's behalf, requests financial relief by either—

  2. making a claim stating why recovery of the taxpayer's outstanding tax or a relief company's outstanding tax would place the taxpayer, being a natural person, in serious hardship; or
    1. requesting to enter into an instalment arrangement with the Commissioner.

      1. For the purposes of this section, the Commissioner must consider the taxpayer's financial position at the date on which the request for financial relief is made.

      2. The Commissioner may require a taxpayer, or a person on a taxpayer's behalf, to request financial relief under subsection (1)(a) by notice.

      3. Upon receiving a request, the Commissioner may—

      4. accept the taxpayer's request; or
        1. seek further information from the taxpayer; or
          1. make a counter offer; or
            1. decline the taxpayer's request.

              1. A taxpayer has 20 working days, or a longer period allowed by the Commissioner, to provide the information sought or to respond to a counter offer.

              2. If the Commissioner receives information or a response from a taxpayer outside the time period allowed under subsection (4), the receipt of the information or the response will be treated as a new request for financial relief.

              Notes
              • Section 177: replaced, on , by section 92(1) of the Taxation (Relief, Refunds and Miscellaneous Provisions) Act 2002 (2002 No 32).
              • Section 177 heading: amended, on , by section 174(1) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
              • Section 177(1): amended, on , by section 174(2) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
              • Section 177(1)(a): amended, on , by section 178(1) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).
              • Section 177(1)(b): amended, on , by section 174(3) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
              • Section 177(1B): replaced, on , by section 178(2) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).
              • Section 177(1B): amended, on , by section 174(4) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
              • Section 177(2): amended, on , by section 174(5) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
              • Section 177(2): amended, on (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).