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Customs and Excise Act 2018

Entry and exit of goods, persons, and craft - Assessment, payment, and recovery of duty - Recovery of duty in cases of bankruptcy, liquidation, or receivership

134: Ranking of duty

You could also call this:

"How to pay duty when you can't afford it and are bankrupt or your company is in trouble"

Illustration for Customs and Excise Act 2018

When you owe duty and can't pay it, this law applies to you. It applies if you are bankrupt, or if your company is in liquidation. It also applies if a receiver has been appointed to manage your company's property.

If you are an individual who is bankrupt, you must pay the unpaid duty according to the rules in section 274(5) of the Insolvency Act 2006. This law tells you how to pay the duty you owe. You have to follow these rules.

If your company is in liquidation, you must pay the unpaid duty according to the rules in section 312 of the Companies Act 1993. If a receiver has been appointed to manage your company's property, you must pay the duty according to the rules in section 30(2) of the Receiverships Act 1993. This law applies to all these situations.

If you are part of an unincorporated body, like a partnership, that is in liquidation, you must pay the unpaid duty according to the rules in section 312 of the Companies Act 1993. If a receiver has been appointed by the High Court to manage the body's property, you must pay the duty according to the court's directions. This law is important because it applies even if other laws say something different.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM7039400.

Topics:
Money and consumer rights > TaxesBusiness > Industry rules
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"What happens when the chief executive deals with unpaid duty on goods"

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135: Release of goods subject to duty, or

"Getting your goods from Customs when you still owe duty on them"

Part 3Entry and exit of goods, persons, and craft
Assessment, payment, and recovery of duty: Recovery of duty in cases of bankruptcy, liquidation, or receivership

134Ranking of duty

  1. This section applies to—

  2. the recovery of unpaid duty that does not constitute a charge on goods, if it is owed by—
    1. an individual who is bankrupt; or
      1. a company that is in liquidation; or
        1. a company if a receiver has been appointed in respect of the company’s property in circumstances to which section 30 of the Receiverships Act 1993 applies; or
          1. an unincorporated body of persons (including a partnership, a joint venture, or the trustees of a trust) that is put into liquidation; or
            1. an unincorporated body of persons (including a partnership, a joint venture, or the trustees of a trust) if a receiver has been appointed by the High Court in respect of the body’s property; and
            2. the recovery of unpaid duty that the chief executive may claim in accordance with this section under section 133(5)(b) to (d) or (14)(b).

              1. In the case of an individual who is bankrupt, the unpaid duty must be paid in accordance with the requirements of section 274(5) of the Insolvency Act 2006.

              2. In the case of a company that is in liquidation, the unpaid duty must be paid in accordance with the requirements of section 312 of the Companies Act 1993.

              3. In the case of a company where a receiver has been appointed in respect of the company’s property in circumstances to which section 30 of the Receiverships Act 1993 applies, the unpaid duty must be paid in accordance with the requirements of section 30(2) of the Receiverships Act 1993.

              4. In the case of an unincorporated body (including a partnership, a joint venture, or the trustees of a trust) that is put into liquidation, the unpaid duty must be paid in accordance with the requirements of section 312 of the Companies Act 1993 (as applied by section 240B of that Act).

              5. In the case of an unincorporated body (including a partnership, a joint venture, or the trustees of a trust) where a receiver has been appointed by the High Court in respect of the body’s property, the unpaid duty must be paid in accordance with the directions of the court.

              6. This section applies despite anything to the contrary in any other Act.

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