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Fire and Emergency New Zealand Act 2017

Levy - Avoidance arrangements and shortfall penalties - Levy avoidance arrangements

102: FENZ’s power to determine liability for levy in case of levy avoidance arrangement

You could also call this:

"FENZ can decide how much levy you pay if you try to avoid paying it"

Illustration for Fire and Emergency New Zealand Act 2017

If an arrangement is void under section 101, you need to know what happens next. Fire and Emergency New Zealand, or FENZ, can decide how much levy you have to pay. FENZ does this to stop people getting an unfair advantage from an arrangement that avoids paying the levy. When FENZ makes this decision, they think about what the sum insured would have been if the arrangement had not happened. They consider what would have been likely or expected to happen. This helps FENZ make a fair decision about how much levy you have to pay. You can find more information about this by looking at the Fire and Emergency New Zealand Act.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6888363.

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Topics:
Money and consumer rights > Taxes
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101: Levy avoidance arrangement void, or

"Arrangements to avoid paying a fire levy are not allowed"

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103: Interpretation and other matters related to shortfall penalties, or

"Understanding rules about penalties for incorrect payments"

Part 3Levy
Avoidance arrangements and shortfall penalties: Levy avoidance arrangements

102FENZ’s power to determine liability for levy in case of levy avoidance arrangement

  1. This section applies if an arrangement is void under section 101.

  2. FENZ may determine a levy payer’s liability for the levy, in a way that FENZ considers appropriate, in order to counteract a levy advantage that a person obtains from or under a levy avoidance arrangement.

  3. When applying subsection (2), FENZ may have regard to the sum insured that FENZ considers would have applied, would in all likelihood have applied, or might be expected to have applied had the arrangement not occurred.

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Notes
  • Section 102(3): amended, on , by section 12 of the Fire and Emergency New Zealand (Levy) Amendment Act 2023 (2023 No 15).