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Tax Administration Act 1994

Remission, relief, and refunds

183AB: Cancellation of late payment penalties imposed before 1 April 2002

You could also call this:

"Canceling old late payment penalties from before 1 April 2002"

Illustration for Tax Administration Act 1994

The Commissioner must cancel some of your liability to pay late payment penalties if they were imposed before 1 April 2002. You will get cancellation of 60% of an initial late payment penalty or an incremental late payment penalty. This happens if you have an arrangement with the Commissioner to pay tax in one or more payments, or if tax is being deducted and paid to the Commissioner under section 157 of this Act or section 43 of the Goods and Services Tax Act 1985. You must comply with your obligations under the arrangement for the cancellation to happen. The liability to pay the penalty must have arisen after you entered into the arrangement or after the Commissioner used their powers under section 157 of this Act or section 43 of the Goods and Services Tax Act 1985.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM358746.

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"Help with interest on tax for provisional taxpayers affected by COVID-19"

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183B: Cancellation of late payment penalties under instalment arrangement, or

"Stopping late payment penalties when paying by instalments"

Part 11Remission, relief, and refunds

183ABCancellation of late payment penalties imposed before 1 April 2002

  1. The Commissioner must cancel a taxpayer's liability to pay—

  2. 60% of an initial late payment penalty; or
    1. an incremental late payment penalty.

      1. The Commissioner must cancel a taxpayer's liability under subsection (1) only if—

      2. the tax to pay in respect of which the taxpayer would otherwise have had the liability is—
        1. tax payable in 1 or more payments under an arrangement with the Commissioner; or
          1. tax in respect of which deductions are to be made and paid to the Commissioner under section 157 of this Act or section 43 of the Goods and Services Tax Act 1985 or any other similar tax law; and
          2. the taxpayer complies with the taxpayer's obligations under the arrangement; and
            1. the liability would otherwise have arisen after—
              1. the arrangement was entered into; or
                1. the Commissioner exercised powers available to the Commissioner under section 157 of this Act or section 43 of the Goods and Services Tax Act 1985 or any similar tax law.

                Notes
                • Section 183AB: inserted, on (applying to arrangements entered into before 1 April 2002), by section 94(1) of the Taxation (Relief, Refunds and Miscellaneous Provisions) Act 2002 (2002 No 32).