20APenalty tax

20A Penalty tax (1) The Taxation Administration Act, division 5.2 (Penalty tax) does not apply to unpaid overdue rates. (2) However, the commissioner may impose penalty tax for unpaid overdue rates payable by a corporation or trust. (3) If the commissioner imposes penalty tax on a corporation or trust, the Taxation Administration Act, division 5.2 applies to the corporation or trust as if— (a) the unpaid overdue rates were a tax default; and (b) a reference to interest under that Act, division 5.1 were a reference to interest under this Act, section 21; and (c) a reference to a taxpayer were a reference to the corporation or trust; and (d) a reference to the amount of tax unpaid were a reference to the amount of the unpaid overdue rates. (4) Subsection (2) applies in relation to rates that are unpaid and overdue on or after 1 August 2021. trust does not include a special disability trust.

Enforcement Part 4