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Fire and Emergency New Zealand Act 2017

Levy - Avoidance arrangements and shortfall penalties - Shortfall penalties

104: Not taking reasonable care

You could also call this:

"Paying a penalty for not being careful with levy payments"

Illustration for Fire and Emergency New Zealand Act 2017

You have to pay a shortfall penalty if you take a levy position that results in a levy shortfall and you do not take reasonable care. You must take care when taking a levy position. If you do not, you pay 20% of the levy shortfall as a penalty. You do not pay this penalty if your levy position is acceptable. This rule applies when you take a levy position that results in a levy shortfall and you have not taken reasonable care. The penalty is a percentage of the levy shortfall. You can compare this to the 1986 legislation for more information.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM7072992.

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Topics:
Money and consumer rights > Taxes
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103: Interpretation and other matters related to shortfall penalties, or

"Understanding rules about penalties for incorrect payments"

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105: Unacceptable levy position, or

"Paying a penalty for not paying the right amount of levy"

Part 3Levy
Avoidance arrangements and shortfall penalties: Shortfall penalties

104Not taking reasonable care

  1. A shortfall penalty is payable if the levy payer—

  2. takes a levy position that results in a levy shortfall; and
    1. does not take reasonable care in taking the levy position.

      1. Subsection (1) does not apply if the levy position is an acceptable levy position.

      2. If subsection (1) applies, the shortfall penalty that is payable is 20% of the levy shortfall.

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