Imposition of penalties and interest on amounts of $100 or less

2009 amendment relates to small amounts of penalties or interest owed and applies these on a tax-type basis rather than to the total amount outstanding.

Section 183F of the Tax Administration Act 1994

Under section 183F, small amounts of penalties and interest are not charged. The section has been amended to apply on a tax-type basis rather than to the total amount outstanding.

Background

The provision has been amended to apply on a tax-type basis rather than on the total amount outstanding. This reflects the intention of the provision, which is that small amounts of penalties and interest are not charged.

The EMS penalty was not imposed if the unpaid amount was less than $100. The legislation has been amended so that the penalty is not charged on amounts of $100 or less, ensuring it is consistent with the other provisions.

Application date

The amendment applies from the date of Royal assent, being 6 October 2009.