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Tax Administration Act 1994

Commissioner and department - Care and management of tax system - Remedial powers

6C: Powers to modify provisions of Inland Revenue Acts

You could also call this:

"Fixing Tax Law Mistakes"

Illustration for Tax Administration Act 1994

You have powers to modify some tax laws. These powers are in the sections 6D to 6G and they help fix problems with tax laws for a short time. They are extra powers that you can use with sections 6 and 6A. You can use these powers when there is an obvious error in a tax law or when you need to make a law work as it was meant to. This helps resolve ambiguity or inconsistencies in the law. A modification or exemption to a tax law usually applies to everyone, but sometimes it only applies to certain people or situations. You can choose whether or not to use a modification or exemption, and you do this in the way set out in section 6D or 6E. If you choose not to use a modification or exemption, the law applies as if the modification or exemption did not exist for you.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS222060.

Topics:
Money and consumer rights > Taxes
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6B: Directions to Commissioner, or

"The Governor-General gives rules to the Commissioner on running the tax system."

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6D: Modifications made by Order in Council, or

"The Governor-General can change tax laws with the Minister's approval"

Part 2Commissioner and department
Care and management of tax system: Remedial powers

6CPowers to modify provisions of Inland Revenue Acts

  1. Sections 6D to 6G set out remedial powers that provide for modifications to, and exemptions from, provisions of the Inland Revenue Acts to apply in certain circumstances and for a limited time. The powers are in addition to sections 6 and 6A.

  2. The purpose of sections 6D to 6G is to provide flexibility to temporarily remedy or mitigate the effect of a provision of the Inland Revenue Acts by making a modification or granting an exemption when it is reasonably necessary—

  3. due to an obvious error in the provision:
    1. to give effect to the intended purpose or object of the provision, to resolve ambiguity, or to reconcile inconsistencies.

      1. A modification or exemption applies generally unless it is expressly stated that it applies only to a particular class of persons or circumstances.

      2. Despite subsection (3), a person to whom a modification or exemption is available may choose whether or not to apply the modification or exemption by the means set out in the modification or exemption under section 6D or 6E, as applicable.

      3. If a person chooses not to apply a modification or exemption, the law applies as if the modification or exemption did not exist in relation to the person.

      Notes
      • Section 6C: inserted, on , by section 85 of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).