Global

Details

  • Service: Tax, International Corporate Tax, Global Indirect Tax, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 7/26/2012

New Zealand - Customs changes mean increase in potential penalties 

July 26: Recent customs-related amendments have made significant changes to the New Zealand penalties regime for customs and import goods and services tax (GST).
  • There are significant increases in the level of monetary penalties with a graduated scale depending on the type of offence.
  • The penalties will also apply in full to import GST errors (even though for most importers the GST payable is recoverable from Inland Revenue and therefore the net cost to the Government is “nil” or zero).

KPMG observation

Previously, New Zealand Customs was viewed as having taken a relatively lenient approach to penalties on unpaid customs duty, and GST. This position is expected to change, with increased incentives for businesses to determine that their customs entries are correct under the new regime.


The new customs penalties regime is similar to the one that applies for tax. The introduction of the tax penalty regime resulted in what is described as a difficult adjustment period for both taxpayers and Inland Revenue. The hope is that New Zealand Customs has learned from the tax experience, to allow for as smooth a transition to the new rules as possible.


Read a July 2012 report [PDF 150 KB] prepared by the KPMG member firm in New Zealand: Customs changes means significant increase in potential penalties




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