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Fire and Emergency New Zealand Act 2017

Levy - Interest

138: Amount of interest payable

You could also call this:

"How much interest you must pay on unpaid levies or penalties"

Illustration for Fire and Emergency New Zealand Act 2017

You need to pay interest on unpaid levy or shortfall penalty. The interest period starts the day after the due date and ends when you pay. You can find the due date in section 88. You calculate interest using a formula: t × r ÷ 365. t is the unpaid amount and r is the interest rate. The interest rate is set by an Order in Council made under section 120H of the Tax Administration Act 1994. You add up the interest for each day in the interest period. You subtract any interest you have already paid. This gives you the total interest you owe at any time.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6888386.

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Topics:
Money and consumer rights > Taxes
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137: Interest on unpaid and overpaid levy and shortfall penalty, or

"Paying interest on late or overpaid fire levies and penalties"

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139: Interest priority, or

"FENZ pays off interest first when you owe them money"

Part 3Levy
Interest

138Amount of interest payable

  1. In this section,—

    due date means,—

    1. in relation to levy, the day by which a levy payer must pay the levy under section 88:
      1. in relation to a shortfall penalty, the day by which a person must pay the levy to which the shortfall penalty relates

        interest period means,—

        1. in relation to unpaid levy or unpaid shortfall penalty, the period (both dates inclusive)—
          1. beginning on the day after the due date of payment of the unpaid levy or shortfall penalty; and
            1. ending on the date the levy or shortfall penalty is paid:
            2. in relation to overpaid levy or overpaid shortfall penalty, the period (both dates inclusive)—
              1. beginning on the day after the later of the due date and the date on which the overpaid levy or shortfall penalty was paid; and
                1. ending on the date on which the overpaid levy or overpaid shortfall penalty is refunded by FENZ

                  2. relevant interest rate means,—

                  1. in relation to unpaid levy and unpaid shortfall penalty, the rate of interest established and notified as the taxpayer’s paying rate by an Order in Council made under section 120H of the Tax Administration Act 1994:
                    1. in relation to overpaid levy or overpaid shortfall penalty, the rate of interest established and notified as the Commissioner’s paying rate by an Order in Council made under section 120H of the Tax Administration Act 1994.

                    2. The amount of interest payable on unpaid or overpaid levy and on unpaid or overpaid shortfall penalty is calculated for each day in the interest period in accordance with the following formula:

                      t × r ÷ 365

                      Where:

                      • t t

                        is the unpaid or overpaid levy or the unpaid or overpaid shortfall penalty on which the interest is payable

                      • r r

                        is the relevant interest rate.

                    3. The amount of interest payable in an interest period is the sum of the amounts calculated under subsection (2) for each day in the interest period.

                    4. The amount of interest outstanding at any time in an interest period is—

                    5. the sum of the amounts calculated under subsection (2) for each day in the interest period that falls before that time; less
                      1. any interest that has been paid by that time.

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