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Goods and Services Tax Act 1985

Special cases

61: Liability for tax payable by company left with insufficient assets

You could also call this:

"What happens if a company can't pay its goods and services tax because it doesn't have enough assets?"

Illustration for Goods and Services Tax Act 1985

If you are a company and you do not have enough assets to pay your goods and services tax, a special rule applies. This rule is based on Section HD 15 of the Income Tax Act 2007, but with some changes to make it work for goods and services tax. The rule also refers to the time bar under section 108A of the Tax Administration Act 1994, which is used to determine when you can no longer be asked to pay the tax.

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This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM85233.

Topics:
Money and consumer rights > Taxes
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Part 9Special cases

61Liability for tax payable by company left with insufficient assets

  1. Section HD 15 of the Income Tax Act 2007, with any necessary modifications, applies for the purpose of this Act as if the terms income tax or tax read goods and services tax and as if the term time bar referred to the time bar under section 108A of the Tax Administration Act 1994.

Notes
  • Section 61: substituted, on (applying on and after 10 October 2000), by section 114(1) of the Taxation (GST and Miscellaneous Provisions) Act 2000 (2000 No 39).
  • Section 61: amended, on , by section 371 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
  • Section 61: amended, on (effective for 2008–09 income year and later income years, except when the context requires otherwise), by section ZA 2(1) of the Income Tax Act 2007 (2007 No 97).