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.

Note—

If a tax default occurs, interest and penalty tax may be charged under the Taxation Administration Act 1996.

(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].