[IN CONFIDENCE RELEASE EXTERNAL]
19 September 2023
Cain Brown
[FYI request #23983 email]
Dear Cain Brown
Thank you for your request made under the Official Information Act 1982 (OIA), received
on 29 August 2023. You requested:
( … ) evidence of the LAW that has been passed by government stating that we must
pay income tax by Law and not need too.
Legislative authority for imposing tax is outlined in the various Acts administered by Inland
Revenue, which are listed in schedule 1 of the Tax Administration Act 1994 (TAA). Acts
administered by Inland Revenue have been passed by Parliament and are binding on all
people residing in New Zealand.
A New Zealand resident is liable for tax on all assessable income, whether derived from
New Zealand or overseas and a non-resident is liable for tax on all assessable income
sourced in New Zealand.
Boyton v Commissioner of Inland Revenue (2002) 20 NZTC 17,615 HC
[9] Section AA 2
Income Tax Act 1994…provides that
New Zealand residents
and persons with income from New Zealand are subject to the Income Tax
Act and to the Tax Administration Act 1994 and must satisfy the
obligations those Acts impose. Section BB 2 provides that persons must
calculate and satisfy the income tax liability the person has in respect of taxable
income for an income tax year, in accordance with sub-part BC. The evidence
establishes that Mr Boyton had income in one or other or both of the taxation years
in issue. Even if he is not a New Zealand resident (all the indications are to the
contrary)
the Income Tax Act applies to those who have income from New
Zealand [emphasis added].
Section BB 1 of the Income Tax Act 2007 (ITA) imposes income tax on a person’s taxable
income. Every person is liable for income tax. A taxpayer means a person who is liable to
comply with an obligation imposed by the ITA. A person includes an individual; see section
AA 3 of the ITA and in Part 2 of the Legislation Act 2019. Therefore, a person is liable to
pay income tax on income derived by them. See
Guy v C of IR (2003) 21 NZTC
18,269 and
Keighley v
C of IR (2004) 21 NZTC 18,461.
Section BB 2 of the ITA states a person’s income tax liability for a tax year must be
calculated and satisfied by the person under subpart BC.
Section 15B of the TAA,
Taxpayer’s tax obligations, sets out taxpayer obligations. These
include the obligation to correctly determine the amount of tax payable, pay tax on time,
and comply with all the other obligations imposed on the taxpayer by the tax laws.
The TAA sets out penalties to be imposed on taxpayers for non-compliance. These include
civil penalties, such as late payment penalties and shortfall penalties, and criminal
penalties. Section 149 of the TAA states:
Each time a taxpayer breaches a tax obligation the taxpayer may be liable to a civil
penalty or, on conviction, a criminal penalty, or both.
www.ird.govt.nz
Page 1 of 2
Ref: 24OIA1242
[IN CONFIDENCE RELEASE EXTERNAL]
Since tax obligations are imposed by statute, persons are not able to opt out of them, and
they remain obligations whether they comply with them voluntarily or not. Taxpayers who
have not met their obligations under the Revenue Acts have found themselves in breach
of the law and liable to the penalties imposed by the law.
You can read more about the Acts administered by Inland Revenue on the New Zealand
Legislation website at
legislation.govt.nz.
Publishing of OIA response
We intend to publish our response to your request on our website. This letter, with your
personal details removed, will be published in its entirety. Publishing responses increases
the availability of information to the public and is consistent with the OIA’s purpose of
enabling more effective participation in the making and administration of laws and policies
and promoting the accountability of Ministers and officials.
Right of Review
If you disagree with my decision on your OIA request, you have the right, under section
28(3) of the OIA, to ask the Ombudsman to investigate and review my decision. The office
of the Ombudsman can be contacted via email at
[email address] or
to PO Box 10152, The Terrace, Wellington 6143 or via freephone on 0800 802 602.
Alternatively, you may have the decision reviewed by an Inland Revenue review officer.
This does not preclude you from subsequently seeking a review by the Ombudsman if you
are not satisfied with the department’s internal review. If you would like an internal review,
please
write
to
the
Commissioner
of
Inland
Revenue
via
email
at
[email address] setting out the details of your request.
Thank you for your request.
Yours sincerely
Pip Knight
Domain Lead - Governance & Ministerial Services
www.ird.govt.nz
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Ref: 24OIA1242
