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Tax Administration Act 1994

Remission, relief, and refunds

183A: Remission for reasonable cause

You could also call this:

"No penalty if you have a good reason for being late"

Illustration for Tax Administration Act 1994

You might not have to pay a penalty if you have a good reason for not doing something on time. The Commissioner can decide not to charge you a penalty if something outside your control happened. You must have fixed the problem as soon as you could. You might have a good reason if you had an accident or were very sick. The Commissioner can decide what is a good reason. You do not have a good reason if someone you hired made a mistake, unless that mistake was outside their control. The Commissioner can also decide not to charge you a penalty if you were charged under section 215 of the KiwiSaver Act 2006, or section 140B, section 140CB, or section 141AA, or section 141ED. You must have tried to fix the problem as soon as you could. The Commissioner can look at what happened and decide if you have a good reason.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM358729.

Topics:
Money and consumer rights > Taxes
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183ABA: Remission in circumstances of emergency event, or

"Help with tax payments when there's an emergency"

Part 11Remission, relief, and refunds

183ARemission for reasonable cause

  1. This section applies to—

  2. a late filing penalty:
    1. a non-electronic filing penalty:
      1. a late payment penalty:
        1. imputation penalty tax imposed by section 140B:
            1. Maori authority distribution penalty tax imposed by section 140CB:
              1. a shortfall penalty imposed by section 141AA:
                1. a civil penalty imposed under section 215 of the KiwiSaver Act 2006:
                  1. an employers’ withholding payment penalty imposed by section 141ED.

                    1. The Commissioner may remit the penalty if the Commissioner is satisfied that—

                    2. a penalty to which this section applies arises as a result of an event or circumstance beyond the control of a taxpayer; and
                      1. as a consequence of that event or circumstance the taxpayer has a reasonable justification or excuse for not furnishing the tax return or their employment income information, or not furnishing their employment income information in a prescribed electronic format, or not paying the tax on time; and
                        1. the taxpayer corrected the failure to comply as soon as practicable.

                          1. Without limiting the Commissioner's discretion under subsection (1), an event or circumstance may include—

                          2. an accident or a disaster; or
                            1. illness or emotional or mental distress.

                              1. An event or circumstance does not include—

                              2. an act or omission of an agent of a taxpayer, unless the Commissioner is satisfied that the act or omission was caused by an event or circumstance beyond the control of the agent—
                                1. that could not have been anticipated; and
                                  1. the effect of which could not have been avoided by compliance with accepted standards of business organisation and professional conduct; or
                                  2. a taxpayer's financial position.

                                    Notes
                                    • Section 183A: replaced (with effect on 1 April 1997), on , by section 104(1) of the Taxation (Remedial Provisions) Act 1997 (1997 No 74).
                                    • Section 183A(1): replaced, on , by section 138 of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).
                                    • Section 183A(1)(e): repealed (with effect on 30 June 2009), on (applying for all income years beginning on or after 1 July 2009), by section 697(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
                                    • Section 183A(1)(h): inserted, on , by section 231 of the KiwiSaver Act 2006 (2006 No 40).
                                    • Section 183A(1)(h): amended, on , by section 23 of the Taxation (KiwiSaver) Act 2007 (2007 No 110).
                                    • Section 183A(1)(h): amended, on , by section 264 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
                                    • Section 183A(1)(i): inserted, on , by section 264 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
                                    • Section 183A(1)(i): amended, on , by section 363(1) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
                                    • Section 183A(1A): inserted, on (applying to penalties that arise on and after 1 April 1999), by section 39(1) of the Taxation (Simplification and Other Remedial Matters) Act 1998 (1998 No 101).
                                    • Section 183A(1A)(b): amended, on , by section 363(2) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).