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Tax Administration Act 1994

Remission, relief, and refunds

183C: Cancellation of interest

You could also call this:

"The Commissioner can cancel interest on your tax if you pay on time."

Illustration for Tax Administration Act 1994

You get a notice of assessment from the Commissioner. You pay the tax and interest by the due date. The Commissioner cancels your interest for that time. If the Commissioner sends you a notice before the due date, you pay the tax and interest within 30 days. The Commissioner cancels your interest for that time. The Commissioner can also cancel your interest if you get a second notice or statement within 30 days. You pay the tax and interest by the due date or within 30 days. The Commissioner cancels your interest for that time. The Commissioner's decision is based on the tax rules in Part 7. You can find more information about the tax rules in Part 7. The Commissioner follows these rules when making decisions about your interest.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM358753.

Topics:
Money and consumer rights > Taxes
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"Stopping late payment penalties when paying by instalments"

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"Asking to cancel extra interest on unpaid tax"

Part 11Remission, relief, and refunds

183CCancellation of interest

  1. Subject to subsection (3), a taxpayer's liability to pay interest under Part 7 is cancelled for the period from the date of a notice of assessment until the due date specified in the notice if—

  2. the Commissioner issues the taxpayer with a notice of assessment; and
    1. the tax assessed in the notice, together with any interest payable under Part 7 in respect of the period before the date of the notice, is paid to the Commissioner by the due date for payment specified in the notice.

      1. Repealed

      2. Where—

      3. the Commissioner issues a notice of assessment to a taxpayer before the original due date for payment of the tax to which the assessment relates; and
        1. the tax assessed in the notice, together with any interest payable under Part 7 in respect of the period before the date of the notice, is paid to the Commissioner on or before the 30th day after the date on which the notice of assessment is issued—
            1. the Commissioner shall cancel the taxpayer's liability to pay interest under Part 7 for the period commencing on the day after the date on which the notice of assessment is issued and ending with the day on which payment is made, or the due date of the tax, whichever occurs first.

          1. Where—

          2. the Commissioner issues a statement of account to a taxpayer after the original due date for payment of tax to which the statement of account relates; and
            1. the tax referred to in the statement of account, together with any interest payable under Part 7 in respect of the period before the date of the statement of account, is paid to the Commissioner on or before the 30th day after the date on which the statement of account is issued, or the due date of the tax, whichever occurs first,—
                1. the Commissioner shall cancel the taxpayer's liability to pay interest under Part 7 for the period commencing on the day after the date on which the statement of account is issued and ending with the day on which payment is made.

              1. Subsection (4C) applies, if—

              2. the Commissioner issues another statement of account (the second statement) to a taxpayer within 30 days of a statement of account described in subsection (4) (the first statement); and
                  1. the tax assessed and any related penalties in the first statement, together with any interest payable under Part 7 in relation to the period before the date of the first statement is paid to the Commissioner on or before the 30th day after the date on which the first statement is issued, or the due date of the tax, whichever occurs first.

                    1. The Commissioner shall cancel the taxpayer’s liability to pay interest under Part 7 in relation to the tax assessed and related penalties for the period commencing on the day after the date on which the first statement is issued and ending with the day on which the payment described in subsection (4B)(c) is made.

                    2. Subsection (4E) applies, if—

                    3. the Commissioner issues another notice of assessment (the second assessment) to a taxpayer within 30 days of a notice of assessment described in subsection (1) or (3) (the first assessment); and
                        1. the tax assessed and any related penalties in the second assessment, together with any interest payable under Part 7 in relation to the period before the date of the second assessment is paid to the Commissioner on or before the 30th day after the date on which the second assessment is issued, or the due date of the tax, whichever occurs first.

                          1. The Commissioner shall cancel the taxpayer’s liability to pay interest under Part 7 in relation to the tax assessed and related penalties for the period commencing on the day after the date on which the second assessment is issued and ending with the day on which the payment described in subsection (4D)(c) is made.

                          2. If the Commissioner issues both a notice of assessment and a statement of account to a taxpayer and the 30th day referred to in subsection (3) occurs on or before the 30th day referred to in subsection (4), the Commissioner must cancel a taxpayer's liability to pay interest under Part 7 for the period starting on the day after the date on which the notice of assessment is issued and ending on the date on which payment is made if payment is made on or before the 30th day referred to in subsection (3).

                          3. For the purpose of subsection (5), a payment that is made is a payment of the tax assessed in the notice of assessment, together with any interest payable under Part 7 for the period before the date of the notice.

                          Notes
                          • Section 183C: replaced (with effect on 1 April 1997, except so far as it applies to subsection (4) and (5)), on , by section 104(1) of the Taxation (Remedial Provisions) Act 1997 (1997 No 74).
                          • Section 183C(2): repealed, on , by section 149 of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
                          • Section 183C(4)(b): amended, on (applying to statements of account issued on or after 1 April 2001), by section 79(1) of the Taxation (GST and Miscellaneous Provisions) Act 2000 (2000 No 39).
                          • Section 183C(4B): replaced, on (applying for a second statement or assessment issued by the Commissioner on or after 1 April 2018), by section 364(1) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5)
                          • Section 183C(4B)(b): repealed, on , by section 228(1) (and see section 228(7) for application) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
                          • Section 183C(4B)(c): amended, on , by section 228(2) (and see section 228(7) for application) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
                          • Section 183C(4C): replaced, on (applying for a second statement or assessment issued by the Commissioner on or after 1 April 2018), by section 364(1) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5)
                          • Section 183C(4C): amended, on , by section 228(3) (and see section 228(7) for application) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
                          • Section 183C(4D): inserted, on (applying for a second statement or assessment issued by the Commissioner on or after 1 April 2018), by section 364(1) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5)
                          • Section 183C(4D)(b): repealed, on , by section 228(4) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
                          • Section 183C(4D)(c): amended, on , by section 228(5) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
                          • Section 183C(4E): inserted, on (applying for a second statement or assessment issued by the Commissioner on or after 1 April 2018), by section 364(1) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5)
                          • Section 183C(4E): amended, on , by section 228(6) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
                          • Section 183C(5): replaced, on (applying to interest cancellations made on and after 27 March 2001), by section 55(1) of the Taxation (Beneficiary Income of Minors, Services-Related Payments and Remedial Matters) Act 2001 (2001 No 4).
                          • Section 183C(5): amended, on (applying to statements of account issued on or after 1 April 2001), by section 79(1) of the Taxation (GST and Miscellaneous Provisions) Act 2000 (2000 No 39).
                          • Section 183C(6): inserted, on (applying to interest cancellations made on and after 27 March 2001), by section 55(1) of the Taxation (Beneficiary Income of Minors, Services-Related Payments and Remedial Matters) Act 2001 (2001 No 4).