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Tax Administration Act 1994

Remission, relief, and refunds

183CB: Cancellation of interest charged on payments under PAYE rules or provisional tax rules arising from work in Canterbury earthquake recovery programme

You could also call this:

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

Illustration for Tax Administration Act 1994

You work in the Canterbury earthquake recovery programme. You get paid for this work and you have to pay tax on it. If you are a non-resident, or treated as one, and you started working in New Zealand after 4 September 2010, this law might apply to you. You might not have to pay interest on your tax if you are late paying it. This is because the Commissioner can cancel the interest if you apply for it. The interest can be cancelled from the day you got paid until 4 September 2011, or until it is clear you have to pay tax in New Zealand. If you pay tax in instalments, the Commissioner can also cancel the interest on each instalment. The interest can be cancelled from the due date of the instalment until 4 September 2011, or until it is clear you have to pay income tax. The Canterbury earthquake is defined in the Canterbury Earthquake Recovery Act 2011. This law still applies even though the Act has been repealed by the Greater Christchurch Regeneration Act 2016. You can find more information about the Canterbury earthquake in the Canterbury Earthquake Recovery Act 2011.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM3997068.

Topics:
Money and consumer rights > Taxes
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183CA: Cancellation of interest charged on unpaid provisional tax, or

"Asking to cancel extra interest on unpaid tax"

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

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

Part 11Remission, relief, and refunds

183CBCancellation of interest charged on payments under PAYE rules or provisional tax rules arising from work in Canterbury earthquake recovery programme

  1. This section applies for a person (the earner) who derives income in the form of payment for work in the programme for the recovery of Canterbury from the Canterbury earthquakes, as defined in the Canterbury Earthquake Recovery Act 2011, when—

  2. the earner is a non-resident, or is treated as a non-resident under a relevant double tax agreement, on 4 September 2010 and—
    1. is a natural person who arrives in New Zealand after that date; or
      1. is not a natural person and, under the double tax agreement, has no permanent establishment in New Zealand on 4 September 2010 but after that date has a permanent establishment in New Zealand or is a resident and not treated as a non-resident; and
      2. the income relates to a period beginning after 4 September 2010 and ending before 4 September 2011.

        1. If a person is required under the PAYE rules to withhold an amount of tax from a PAYE income payment to the earner for the work and does not pay the amount to the Commissioner by the time required by the PAYE rules, the Commissioner must, on receiving an application by the person, cancel the person's liability to pay interest under Part 7 for the period—

        2. beginning on the day of the PAYE income payment; and
          1. ending on the earlier of—
            1. 4 September 2011:
              1. the first day on or after the day of the PAYE income payment on which it is clear that the person has a withholding liability in New Zealand.

              2. If the earner is a provisional taxpayer with residual income tax that is treated for the purposes of Part 7 as due and payable in more than 1 instalment, the Commissioner must, on receiving an application by the earner, cancel the earner's liability to pay interest under Part 7 on each instalment for the period—

              3. beginning on the due date of the instalment; and
                1. ending on the earlier of—
                  1. 4 September 2011:
                    1. the first day on or after the due date of the instalment on which it is clear that the earner has an income tax liability.

                    2. For the purposes of subsection (1), the term Canterbury earthquake has the meaning set out in the Canterbury Earthquake Recovery Act 2011, which continues to apply for this purpose in the same manner as it applied immediately before the repeal of that Act by the Greater Christchurch Regeneration Act 2016.

                    Notes
                    • Section 183CB: inserted (with effect on 4 September 2010), on , by section 188 of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
                    • Section 183CB(4): inserted (with effect on 19 April 2016), on , by section 177 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).