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Tax Administration Act 1994

Remission, relief, and refunds

181C: Remission of late payment penalties and interest incurred due to obligation to pay further income tax

You could also call this:

"Reducing penalties for late tax payments when you owe more income tax"

Illustration for Tax Administration Act 1994

You have a company that must pay more income tax. This is because the company has a debit balance in its imputation credit account at the end of a tax year, as stated in section OB 65 of the Income Tax Act 2007. The company also has to pay a late payment penalty on unpaid income tax for that tax year. You get a remission of interest and late payment penalties if the amount of further income tax is equal to or less than the unpaid income tax. The Commissioner must remit the interest under section 120D and the late payment penalty. This remission happens when the company's further income tax is equal to or less than the unpaid income tax for the tax year.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM358700.

Topics:
Money and consumer rights > Taxes
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181B: Remissions and refunds of Maori authority distribution penalty tax, or

"Getting money back if you're a Maori authority and paid too much penalty tax"

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181D: Remission of late payment penalties and interest incurred due to obligation by Maori authority to pay further income tax, or

"Help for Maori authorities with late tax payment penalties"

Part 11Remission, relief, and refunds

181CRemission of late payment penalties and interest incurred due to obligation to pay further income tax

  1. This section applies to a company that is liable—

  2. under section OB 65 of the Income Tax Act 2007 to pay an amount of tax by way of further income tax of an amount equal to a debit balance in the company's imputation credit account at the end of a tax year; and
    1. under section 139B to pay a late payment penalty on unpaid income tax that relates to a payment due in the tax year.

      1. The Commissioner must remit any interest under section 120D payable by the company and the late payment penalty relating to the further income tax, to the extent that the amount of further income tax charged in relation to that imputation year is equal to or is less than the amount of unpaid income tax referred to in subsection (1)(b).

      Notes
      • Section 181C: inserted (with effect on 1 April 1998), on , by section 138 of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).
      • Section 181C(1)(a): 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 181C(1)(b): 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).