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Customs and Excise Act 2018

Entry and exit of goods, persons, and craft - Interest and penalties for late or incorrect payments of duty, incorrect refunds of duty, and drawback incorrectly allowed - Remissions and refunds of interest and penalties

169: Interest and penalties: remissions and refunds if duty determined not to be payable, etc

You could also call this:

"Getting back interest or penalties if you don't have to pay duty after all"

Illustration for Customs and Excise Act 2018

If you have to pay interest or a penalty because of duty, and it is decided that you do not have to pay the duty, or you get the duty back, then the chief executive must give you back the interest or penalty, or part of it. You might get all of your interest or penalty back, or just some of it, depending on what the chief executive decides. The chief executive will look at your situation and decide what is fair.

If you got a refund and had to pay interest on it, but it is decided that the refund was correct, then the chief executive must also give you back the interest, or part of it. This is because the refund was allowed, so you should not have had to pay interest on it. The chief executive will decide how much interest to give back to you.

The chief executive has to follow the rules and give you back the interest or penalty, but if they are appealing the decision, they do not have to do it until the appeal is finished. This means that you will have to wait until the appeal is over before you get your interest or penalty back.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM7245171.

Topics:
Money and consumer rights > Taxes
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168: Penalties: remissions and refunds for good payment record, or

"Getting penalties reduced or refunded if you have a good payment record"

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170: Interest and penalties: remissions and refunds if consistent with collection of highest net revenue over time, or

"The chief executive can cancel or refund extra costs if it helps get the most money from duties over time."

Part 3Entry and exit of goods, persons, and craft
Interest and penalties for late or incorrect payments of duty, incorrect refunds of duty, and drawback incorrectly allowed: Remissions and refunds of interest and penalties

169Interest and penalties: remissions and refunds if duty determined not to be payable, etc

  1. This section applies if any interest or penalty is payable under section 154 or 159 in respect of any duty (the relevant duty) and—

  2. it is determined in any administrative review, appeal, or legal proceedings that the relevant duty is not payable in whole or in part; or
    1. the relevant duty is otherwise remitted or refunded in whole or in part.

      1. This section also applies if—

      2. any interest is payable under section 161 in respect of any refund or drawback; and
        1. it is determined in any administrative review, appeal, or legal proceedings that the refund or drawback was correctly made or allowed in whole or in part.

          1. The chief executive must remit or refund, as the case requires,—

          2. the whole of the interest or penalty; or
            1. a proportion of the interest or penalty that the chief executive determines to be appropriate in the circumstances.

              1. The chief executive’s obligation under subsection (3) is suspended pending the outcome of any relevant appeal lodged by the chief executive under this Act or any other enactment.