91Payment of royalty

#### 91 Payment of royalty 91 Payment of royalty > > (1) Royalty in respect of petroleum recovered during a royalty period is payable not later than the last day of the next succeeding royalty period. > > > (1A) If a person who is liable to pay royalty fails to pay it as required by subsection (1), the person is guilty of an offence. > > > > Maximum penalty— > > > > > (a) in the case of a corporation—10,000 penalty units, and, in the case of a continuing offence, a further penalty of 1,000 penalty units for each day that the offence continues, or > > > > > (b) in the case of a natural person—2,000 penalty units or imprisonment for 12 months, or both, and, in the case of a continuing offence, a further penalty of 200 penalty units for each day that the offence continues. > > > (2) A failure to pay royalty payable under this Act by the end of that next succeeding royalty period is a tax default for the purposes of the [Taxation Administration Act 1996](/view/html/inforce/current/act-1996-097). > > > > Note— > > > > If a tax default occurs, interest and penalty tax may be charged under the [Taxation Administration Act 1996](/view/html/inforce/current/act-1996-097). > > > (3) A tax default does not occur before the expiration of 7 days after the value of the relevant petroleum was determined under section 89. > > **s 91:** Am 2014 No 37, Sch 4.6 \[6\]; 2015 No 40, Sch 2 \[35\].