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Tax Administration Act 1994

Remission, relief, and refunds

183D: Remission consistent with collection of highest net revenue over time

You could also call this:

"The Commissioner can reduce some tax penalties to help collect the most revenue over time."

Illustration for Tax Administration Act 1994

The Commissioner can reduce some penalties if it helps collect the most revenue over time. You might get a reduction on a late filing penalty, a non-electronic filing penalty, or a late payment penalty. The Commissioner looks at how important the penalty is in making people follow the tax rules. The Commissioner thinks about how the penalty helps people comply with the tax rules voluntarily. The Commissioner must consider this when deciding whether to reduce a penalty. You cannot get a reduction just because you are in a tough financial spot. The Commissioner can also reduce a shortfall penalty imposed by section 141AA, a civil penalty imposed under section 215 of the KiwiSaver Act 2006, or an employers’ withholding payment penalty imposed by section 141ED. The Commissioner can reduce interest under Part 7 if it is consistent with collecting the highest net revenue over time. The Commissioner's decision is based on collecting revenue, not on your financial situation.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM358762.

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"No interest on late tax payments for Canterbury earthquake workers"

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183E: Remission of interest if unpaid tax remitted, or

"The Commissioner cancels interest if you don't have to pay some tax."

Part 11Remission, relief, and refunds

183DRemission consistent with collection of highest net revenue over time

  1. The Commissioner may remit—

  2. a late filing penalty; and
    1. a non-electronic filing penalty; and
      1. a late payment penalty; and
        1. a shortfall penalty imposed by section 141AA; and
          1. a civil penalty imposed under section 215 of the KiwiSaver Act 2006; and
            1. an employers’ withholding payment penalty imposed by section 141ED; and
              1. interest under Part 7—
                  1. payable by a taxpayer if the Commissioner is satisfied that the remission is consistent with the Commissioner's duty to collect over time the highest net revenue that is practicable within the law.

                1. In the application of this section, the Commissioner must have regard to the importance of the penalty, and interest under Part 7, in promoting compliance, especially voluntary compliance, by all taxpayers and other persons with the Inland Revenue Acts.

                2. The Commissioner must not consider a taxpayer's financial position when applying this section.

                Notes
                • Section 183D: replaced (with effect on 1 April 1997), on , by section 104(1) of the Taxation (Remedial Provisions) Act 1997 (1997 No 74).
                • Section 183D(1)(aa): inserted, on (applying to penalties that arise on and after 1 April 1999), by section 40(1) of the Taxation (Simplification and Other Remedial Matters) Act 1998 (1998 No 101).
                • Section 183D(1)(bb): inserted, on , by section 139 of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).
                • Section 183D(1)(bc): inserted, on , by section 231 of the KiwiSaver Act 2006 (2006 No 40).
                • Section 183D(1)(bc): amended, on , by section 25 of the Taxation (KiwiSaver) Act 2007 (2007 No 110).
                • Section 183D(1)(bd): inserted, on , by section 265 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
                • Section 183D(1)(bd): amended, on , by section 365 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
                • Section 183D(2): replaced, on , by section 231 of the KiwiSaver Act 2006 (2006 No 40).