Important:
- To claim the R&D tax credit, you must submit a detailed statement online.
- In most instances, the last date for submitting a detailed statement was April 30 2010. Find out more
Penalties and use-of-money interest
Do penalties and use-of-money interest apply?
Penalties and use-of-money interest and penalties apply at the standard rates to over-claimed amounts of the R&D tax credit.
If we received your income tax return and detailed statement but have not credited the R&D tax credit by the due date of your end-of-year tax, we will pay use-of-money interest.
We will also pay use-of-money interest, to the extent of the over-payment, where a higher than expected tax credit leads to overpaid provisional tax.
Internal software development groups
An exception to the normal shortfall penalty rules applies only to internal software development groups. Where the members of an internal software development group reallocate the credits for internal software development undertaken by the group, there will not be a shortfall as long as the reallocations are offsetting. This recognises that group members who file an early tax return might not yet know the internal software development expenditure of other group members.
This provision applies where reallocation of tax credits for internal software development is incurred while in the group.
It does not allow:
- reallocation of any credits for expenditure incurred outside the group, or
- reallocation of tax credits for expenditure which is not for internal software development.
If you are allocated a greater proportion of a tax credit relating to internal software development undertaken while in the group, you must also have sufficient eligible expenditure to justify that proportion of the credit.
See Allocating the credit across members of a group, for more information.
New Zealand legislation
Tax Administration Act 1994
- 141(7C) and (7D)
Recovery of over-payments
If you have over-claimed the R&D tax credit on your income tax return, or if we make an error resulting in too much tax liability being offset or too much money being refunded, we will recover overpayments through standard debt recovery processes.
Use-of-money interest and shortfall penalties
Use-of-money interest and shortfall penalties apply to amounts of tax credit as they would apply to other amounts of tax.
Find out more
- What to do if you make an error on your detailed statement
- Penalties and interest
- Disputing our assessment of your R&D tax credit claim
Date published: 02 Nov 2009
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