This item summarises a private ruling about a sale and subdivision of land, a “lowest price” clause in the sale and purchase agreement, and whether there was any financial arrangement income or loss.

This determination sets out which interests in foreign companies and foreign investment funds for the year ended 31 March 2026 the Commissioner of Inland Revenue does not require a person to disclose for the administration of the international tax rules.

This interpretation statement is relevant where the Commissioner imposes a shortfall penalty for not taking reasonable care (s 141A), an unacceptable tax position (s 141B), gross carelessness (s 141C), an abusive tax position (s 141D), or evasion or similar act (s 141E). 

It discusses when a shortfall penalty is reduced (or increased), what happens when a taxpayer could be liable for more than one penalty and the assessment, payment and disputing of shortfall penalties.

There is separate guidance on the threshold requirements for a shortfall penalty (that there be a “tax position” and a “tax shortfall”) and the shortfall penalties provided in s 141A, 141B, 141C, 141D and s 141E of the Tax Administration Act 1994.

This interpretation statement explains the meaning of “unacceptable tax position” in relation to the shortfall penalty for taking an unacceptable tax position in s 141B of the Tax Administration Act 1994.

This interpretation statement (IS) explains the meaning of “abusive tax position” in relation to the abusive tax position shortfall penalty.  The IS also discusses relevant case law and provides several practical examples for clarity.

There is separate guidance on the shortfall penalties provided in s 141A, 141B, 141C and s 141E of the Tax Administration Act 1994, the threshold requirements for a shortfall penalty (that there be a “tax position” and a “tax shortfall”) and reductions and other matters that may be relevant when a  shortfall penalty is imposed (Related Publications).

This interpretation statement explains the meaning of gross carelessness in s 141C of the Tax Administration Act 1994.  It discusses the circumstances that could be relevant in determining whether someone has been grossly careless and how to distinguish gross carelessness from lower levels of negligence.  It also discusses relevant case law and provides several practical examples for clarity.

This fact sheet accompanies interpretation statement IS 26/05: Shortfall penalty for taking an unacceptable tax position, which explains meaning of “unacceptable tax position” for the shortfall penalty for taking an unacceptable tax position in s 141B of the Tax Administration Act 1994. 

This fact sheet accompanies interpretation statement IS 26/08: Shortfall penalty for evasion or a similar act, which explains the shortfall penalty when a person evades the assessment or payment of tax, or does any of the similar acts specified in s 141E of the Tax Administration Act 1994.

This fact sheet accompanies interpretation statement IS 26/06: Shortfall penalty for gross carelessness which explains the meaning of “gross carelessness” and discusses the circumstances that could be relevant in determining whether someone has been grossly careless and how to distinguish gross carelessness from lower levels of negligence.  The IS also discusses relevant case law and provides several practical examples for clarity.