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Tax Administration Act 1994

Penalties - Civil penalties

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

You could also call this:

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

Illustration for Tax Administration Act 1994

You operate on a digital platform as a seller. You must give information to the platform operator as required by sections 185S and 185T. If you do not meet these requirements, you may face a penalty. You can be liable for a $1,000 penalty if you give false information or do not provide information on time. You must provide the information the platform operator needs to meet its obligations. This includes following the model reporting standard for digital platforms. The penalty is due 30 days after the Commissioner assesses it, or on a date set by the Commissioner. You will receive a notice with the due date for payment.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS935443.

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Part 9Penalties
Civil penalties

142KWhen reporting requirements for sellers operating on digital platforms not met

  1. This section applies when a seller operating on a digital platform—

  2. is required under sections 185S and 185T to provide information to the reporting platform operator; and
    1. does not meet the requirements.

      1. The seller is liable to pay a penalty of $1,000 if they—

      2. provide false or misleading information to the reporting platform operator about either themselves or another person or entity:
        1. do not provide information to the reporting platform operator about either themselves or another person or entity within a reasonable time after having received a request for the information:
          1. do not provide information that the reporting platform operator requires them to provide to enable the reporting platform operator to meet its obligations as an operator on the digital platform under—
            1. the model reporting standard for digital platforms:
              1. the extended model reporting standard for digital platforms.

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

              3. 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 142K: inserted, on , by section 201 of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
                  • Section 142K(2)(c): amended (with effect on 1 January 2024), on , by section 156 of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).