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Income Tax Act 2007

Avoidance and non-market transactions - Market value substituted

GC 12: Effect on person's withholding obligations

You could also call this:

“Getting an adjustment doesn't change when you must take tax out of payments.”

If you get an adjustment under sections GC 7 to GC 10, it does not change your obligation to withhold tax. You still have to follow the general collection rules in Part R when it comes to the amount of tax. This means you have to withhold tax as you normally would, even if you get an adjustment.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1517110.

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Part G Avoidance and non-market transactions
Market value substituted

GC 12Effect on person's withholding obligations

  1. An adjustment under any of sections GC 7 to GC 10 has no effect on an obligation of the taxpayer to withhold under Part R (General collection rules) in relation to the amount.

Notes
  • Section GC 12: substituted (with effect on 30 June 2009), on , by section 249(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
  • Section GC 12: amended, on , by section 68 of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).