Shortfall Penalty for understating your income tax

Shortfall Penalty for understating your income tax

In New Zealand, if you understate your income tax in your tax return, you may be subject to a shortfall penalty. The shortfall penalties are as follows: Not taking reasonable care:  20% Unacceptable tax position:  20% Gross carelessness:  40% Taking an abusive tax...
NZ SPS 16/04 shortfall penalty payment / losses

NZ SPS 16/04 shortfall penalty payment / losses

New measures come into effect from 1 November 2016 with respect to the ability of a New Zealand taxpayer to apply tax losses to a shortfall penalty imposed by the Inland Revenue Department. Standard Practice Statement SPS 16/04 enables a taxpayer to elect to utilize...