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Fire and Emergency New Zealand Act 2017

Levy - Avoidance arrangements and shortfall penalties - Shortfall penalties

106: Gross carelessness

You could also call this:

"Paying a penalty for being very careless with your 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 are grossly careless. You are grossly careless if you do not take ordinary care when taking a levy position. This rule does not apply if your levy position is acceptable. You do not have to pay the penalty if your levy position is acceptable. If you do have to pay, the penalty is 40% of the levy shortfall. The levy shortfall is the amount of levy you should have paid. 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=DLM7072994.

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Topics:
Money and consumer rights > Taxes
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105: Unacceptable levy position, or

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

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107: Abusive levy position, or

"Paying a penalty for trying to avoid paying a levy in an unfair way"

Part 3Levy
Avoidance arrangements and shortfall penalties: Shortfall penalties

106Gross carelessness

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

  2. takes a levy position that results in a levy shortfall; and
    1. is grossly careless 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 40% of the levy shortfall.

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