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Tax Administration Act 1994

Remission, relief, and refunds

183F: Small amounts of penalties and interest not to be charged

You could also call this:

"No penalty or interest on small tax debts"

Illustration for Tax Administration Act 1994

You do not have to pay a late payment penalty if you owe $100 or less in tax. You do not have to pay interest on tax owed if it is $100 or less. You do not have to pay an employer's withholding payment penalty if the amount is $100 or less. The Commissioner does not have to pay interest on overpaid tax of $100 or less, as stated in Part 7. These amounts can be changed by the Governor-General. An order to change these amounts is secondary legislation, which has its own publication requirements, as explained in Part 3 of the Legislation Act 2019.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM358771.

Topics:
Money and consumer rights > Taxes
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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."

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183G: Refunds by Commissioner, or

"Getting your money back from the tax department"

Part 11Remission, relief, and refunds

183FSmall amounts of penalties and interest not to be charged

  1. Despite any other provision in this Act,—

  2. a taxpayer is not liable to pay a late payment penalty if an amount of tax that remains outstanding after the due date is $100 or less:
    1. a taxpayer is not liable to pay interest under Part 7 if an amount of tax that remains outstanding after the due date is $100 or less:
      1. a taxpayer is not liable to pay an employers’ withholding payment penalty if the unpaid amount on the day before the date of the Commissioner's notice under section 141ED(1)(b) is $100 or less:
        1. the Commissioner is not liable to pay interest under Part 7 on overpaid tax of $100 or less.

          1. An amount specified in subsection (1) may be varied from time to time by the Governor-General by Order in Council.

          2. An order under subsection (2) is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).

          Notes
          • Section 183F: inserted, on , by section 62 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
          • Section 183F(1): replaced, on , by section 699 of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
          • Section 183F(1)(a): amended (with effect on 6 October 2009), on , by section 366(1) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
          • Section 183F(1)(b): amended (with effect on 6 October 2009), on , by section 366(2) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
          • Section 183F(1)(c): amended, on , by section 367 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
          • Section 183F(3): inserted, on , by section 3 of the Secondary Legislation Act 2021 (2021 No 7).