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Tax Administration Act 1994

Assessments

97C: Assessment of R&D repayment tax

You could also call this:

"How the government works out tax owed for research and development payments"

Illustration for Tax Administration Act 1994

The Commissioner can make an assessment of R&D repayment tax for a company. You are liable to pay the R&D repayment tax assessed, unless you can prove it is excessive or you do not have to pay it. The Commissioner uses rules from sections 109, 111, and 113 to make this assessment. You can challenge an assessment of R&D repayment tax in the same way as an assessment of income tax imposed under section BB 1 of the Income Tax Act 2007. The rules in Part 7 of this Act also apply to challenging an R&D repayment tax assessment. This means you can dispute the assessment and the rules will be used to resolve the issue. The Commissioner's assessment of R&D repayment tax is based on their consideration of what tax should be imposed on the company. You have to pay the assessed tax, but you can challenge it if you think it is wrong. The challenge process is similar to challenging an income tax assessment.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6755716.

Topics:
Money and consumer rights > Taxes
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Part 6Assessments

97CAssessment of R&D repayment tax

  1. The Commissioner may, for a company chargeable with R&D repayment tax, make an assessment of R&D repayment tax that the Commissioner considers should be imposed on the company.

  2. The company is liable to pay the R&D repayment tax assessed except to the extent to which the company establishes in proceedings challenging the assessment that the assessment is excessive or that the company is not chargeable with the R&D repayment tax.

  3. Sections 109, 111, and 113 apply to an assessment made under this section as if—

  4. the references to taxpayer in those sections included a company chargeable with R&D repayment tax; and
    1. the references to tax already assessed in section 113 included an amount of R&D repayment tax already assessed under this section.

      1. An assessment made under this section is subject to challenge in the same manner as an assessment of income tax imposed under section BB 1 of the Income Tax Act 2007, and Part 7 of this Act applies accordingly.

      Notes
      • Section 97C: inserted (with effect on 1 April 2015), on , by section 261 of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).