TAxation Matters
Taxation reflects the pattern of conflict between the Crown and Parliament throughout English history. All revenue is vested in the Crown, but it is Parliament which governs taxation dating from the Bill of Rights in 1688, which New Zealand inherited in 1840.
The Commissioner of Inland Revenue has a duty to collect taxes and to achieve the highest net revenue that is practicable within the law, having regard to the resources available, the importance of promoting taxpayer compliance, and the compliance costs of taxpayers. The Commissioner cannot waive or suspend application of the taxing statutes unless authorised by statute to do so.
A taxpayer is a person or corporate entity liable to perform, or comply with a tax obligation, or who may take a tax position, whether in their own right or as an agent, employee, or officer of another person.
A tax return is a form or document that a taxpayer is required by a tax law to complete and provide to the Commissioner, whether it be in electronic or written form, and whether or not it relates to a particular period of time.
The primary obligations of taxpayers as defined by the Tax Administration Act 1994 are to:
The following statutes are designated Inland Revenue Acts and are under the care and control of the Commissioner of Inland Revenue:
• the Estate and Gift Duties Act 1968;
• the Stamp and Cheque Duties Act 1971;
• the Gaming Duties Act 1971;
• the Goods and Services Tax Act 1985;
• the Land Tax Abolition Act 1990;
• the Child Support Act 1991;
• the Student Loan Scheme Act 2011;
• the Estate Duty Abolition Act 1993;
• the Income Tax Act 1994;
• the Tax Administration Act 1994;
• the Taxation Review Authorities Act 1994;
• the Stamp Duty Abolition Act 1999;
• the Estate Duty Repeal Act 1999; and
• the KiwiSaver Act 2006.
If a taxpayer has fallen behind in any of the obligations under these taxing statutes you may be subject to the imposition of penalties and interest for late payment. You may then be subject to the tax dispute regime, including the requirements to deal with assessments, the IRD disclosure requirements, adjudication and review; and possibly litigation.
There are statutory time bars which need to be taken into account.
There are both civil and criminal penalties which may be imposed by IRD. Some of the penalties are called absolute liability offences. For these there is no way out.
Dealing with IRD if you are subject to the any of the above is not for the faint hearted.
We have some experience in assisting clients with IRD problems.
Please contact us if you would like our assistance.
The Commissioner of Inland Revenue has a duty to collect taxes and to achieve the highest net revenue that is practicable within the law, having regard to the resources available, the importance of promoting taxpayer compliance, and the compliance costs of taxpayers. The Commissioner cannot waive or suspend application of the taxing statutes unless authorised by statute to do so.
A taxpayer is a person or corporate entity liable to perform, or comply with a tax obligation, or who may take a tax position, whether in their own right or as an agent, employee, or officer of another person.
A tax return is a form or document that a taxpayer is required by a tax law to complete and provide to the Commissioner, whether it be in electronic or written form, and whether or not it relates to a particular period of time.
The primary obligations of taxpayers as defined by the Tax Administration Act 1994 are to:
- correctly determine their tax liabilities;
- make deductions as required;
- pay tax on time;
- keep all necessary records as required under the tax laws;
- disclose information to the Commissioner, as required by tax law;
- otherwise co-operate with the Commissioner as required under the tax laws; and
- if a natural person, correctly respond to income statements.
The following statutes are designated Inland Revenue Acts and are under the care and control of the Commissioner of Inland Revenue:
• the Estate and Gift Duties Act 1968;
• the Stamp and Cheque Duties Act 1971;
• the Gaming Duties Act 1971;
• the Goods and Services Tax Act 1985;
• the Land Tax Abolition Act 1990;
• the Child Support Act 1991;
• the Student Loan Scheme Act 2011;
• the Estate Duty Abolition Act 1993;
• the Income Tax Act 1994;
• the Tax Administration Act 1994;
• the Taxation Review Authorities Act 1994;
• the Stamp Duty Abolition Act 1999;
• the Estate Duty Repeal Act 1999; and
• the KiwiSaver Act 2006.
If a taxpayer has fallen behind in any of the obligations under these taxing statutes you may be subject to the imposition of penalties and interest for late payment. You may then be subject to the tax dispute regime, including the requirements to deal with assessments, the IRD disclosure requirements, adjudication and review; and possibly litigation.
There are statutory time bars which need to be taken into account.
There are both civil and criminal penalties which may be imposed by IRD. Some of the penalties are called absolute liability offences. For these there is no way out.
Dealing with IRD if you are subject to the any of the above is not for the faint hearted.
We have some experience in assisting clients with IRD problems.
Please contact us if you would like our assistance.