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Tax Administration Act 1994

Penalties - Civil penalties

141GB: Reduction of electronic sales suppression penalties

You could also call this:

"Breaking rules with electronic sales tools? You might pay less if you own up"

Illustration for Tax Administration Act 1994

You might have to pay a penalty if you use an electronic sales suppression tool. If you tell the Commissioner about the tool, you might not have to pay as much. You can tell them before or after they start looking into your taxes. You can get a bigger reduction if you tell them before they start looking into your taxes. If you tell them after, the reduction will be smaller. The Commissioner decides how much you have to pay. The Commissioner can tell you what information you need to give them and how to give it. You can find more information about when an audit or investigation starts in section 141G(4) and (5). The Commissioner can also look at section 141EE when deciding about your penalty.

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This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS676141.

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Money and consumer rights > Taxes
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Part 9Penalties
Civil penalties

141GBReduction of electronic sales suppression penalties

  1. This section applies when a person—

  2. is liable to pay an electronic sales suppression penalty imposed under section 141EE; and
    1. discloses to the Commissioner details relating to the acquisition, possession, control, or use of the electronic sales suppression tool.

      1. The penalty payable by the person may be reduced if, in the Commissioner’s opinion, the person has made a full disclosure of all the details relating to the suppression tool.

      2. The disclosure referred to in subsection (1) may be either—

      3. a pre-notification disclosure made before the person is notified of a pending tax audit or investigation; or
        1. a post-notification disclosure made after the person is notified of a pending tax audit or investigation, but before the Commissioner starts the audit or investigation.

          1. The level by which the penalty is reduced under subsection (2) is,—

          2. for pre-notification disclosure, 100%:
            1. for post-notification disclosure, 40%.

              1. Section 141G(4) and (5) apply for the purposes of subsection (3) in determining—

              2. whether a person has been notified of a pending tax audit or investigation; and
                1. the time at which an audit or investigation starts.

                  1. The Commissioner may specify the information required for a full disclosure and the form in which it must be provided.

                  Notes
                  • Section 141GB: inserted, on , by section 217 of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).