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Tax Administration Act 1994

Penalties - Civil penalties

142J: When reporting requirements for operators under model rules for digital platforms not met

You could also call this:

"What happens if digital platform operators don't follow reporting rules"

Illustration for Tax Administration Act 1994

If you are a reporting platform operator, you must meet certain requirements. You can find these requirements in sections 185S and 185T. If you do not meet these requirements in a serious or unreasonable way, you may have to pay a penalty. You will have to pay $300 for each time you do not meet the requirements. But you will not have to pay this penalty if something outside your control stops you from meeting the requirements. If you are careless and do not meet a requirement, you may have to pay a bigger penalty. This penalty can be $20,000 for the first time and $40,000 for each time after that. There is a limit to how much you can be penalised in a reportable period. For one type of penalty, the limit is $10,000, and for another type, it is $100,000. You will have to pay any penalty by a certain date. This date is either 30 days after the Commissioner assesses the penalty or a date set by the Commissioner.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS935422.

Topics:
Business > Industry rulesMoney and consumer rights > Consumer protection
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"What happens if you don't give correct information on time"

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142K: When reporting requirements for sellers operating on digital platforms not met, or

"What happens if sellers on digital platforms don't meet reporting rules"

Part 9Penalties
Civil penalties

142JWhen reporting requirements for operators under model rules for digital platforms not met

  1. This section applies when a reporting platform operator (the operator), including a resident reporting platform operator,—

  2. is required under sections 185S and 185T to meet all the requirements set out in, as applicable,—
    1. the model reporting standard for digital platforms:
      1. the extended model reporting standard for digital platforms; and
      2. does not meet the requirements in relation to sellers operating on the digital platform in cases where the non-compliance is serious or unreasonable.

        1. The operator is liable to pay a penalty of $300 for each occasion on which the operator does not meet the requirements.

        2. The operator is not liable to pay a penalty under subsection (2) if the failure to meet the requirements is shown to be due to circumstances outside the control of the operator.

        3. If the operator does not take reasonable care to meet a requirement, and no penalty is imposed under subsection (2), the operator is liable to pay a penalty of—

        4. $20,000 for the first occasion:
          1. $40,000 for each further occasion.

            1. The total amount of penalties for a reportable period for which an operator is liable must not be more than—

            2. $10,000 for a penalty under subsection (2):
              1. $100,000 for a penalty under subsection (4).

                1. The due date for payment of a penalty imposed under this section is the later of—

                2. 30 days after the date on which the Commissioner makes the assessment for the penalty:
                  1. the date set out by the Commissioner in the notice of assessment as being the due date for payment of the penalty.

                    Notes
                    • Section 142J: inserted, on , by section 201 of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).