3LLiability for duty if residence requirement not complied with

3L Liability for duty if residence requirement not complied with (1) If a New Zealand citizen does not comply with the residence requirement specified in section 3K(2) in relation to a dutiable transaction or relevant acquisition referred to in section 3K(1)— (a) the person is a foreign purchaser in respect of the dutiable transaction or relevant acquisition; and (b) the Commissioner may reassess duty on the dutiable transaction or relevant acquisition accordingly. (2) A liability for any additional duty imposed because of subsection (1) arises when the residence requirement specified in section 3K(2) is not complied with. Section 16 provides that a tax default does not occur if the duty is paid within 30 days after the liability for the duty arises. (3) A reassessment referred to in subsection (1)(b) is authorised if more than 5 years have passed since the initial assessment was made. Section 9(3)(c) of the **Taxation Administration Act 1997** allows a reassessment to be made more than 5 years after the initial assessment if this is authorised by a taxation law. S. 3M inserted by No. 48/2025 s. 22.