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HC 40: De minimis trust
or “Small trust with low income”
You could also call this:

“This subpart explains when someone is considered a tax agent and outlines related rules”

This part of the law explains when someone is treated as an agent for another person’s tax duties. It applies to both the Income Tax Act 2007 and the Tax Administration Act 1994.

The law also points out other parts of the Income Tax Act that set up special agent relationships for income tax, or that explain what happens when there’s an agent relationship. These other parts cover things like:

  • What happens when a non-resident life insurer becomes a resident
  • Rules about nominated companies
  • When shareholders might be personally responsible
  • When settlors might have to pay income tax
  • When a trustee might be responsible as an agent
  • Tax credits for provisional tax payments
  • How withheld amounts are treated
  • Rules about paying resident withholding tax
  • When a payment is treated as non-resident passive income
  • How non-resident passive income is received by agents and others
  • What “offered or entered into in New Zealand” means in the law

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Next up: HD 2: Joint liability of principal and agent for tax obligations

or “Principal and agent are both responsible for paying taxes on the agent's work”
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Part H Taxation of certain entities
Agents

HD 1What this subpart does

  1. This subpart sets out the circumstances in which a person is treated for the purposes of this Act and the Tax Administration Act 1994 as an agent of another person in relation to the tax obligations of that other person.

  2. The following provisions in other subparts of this Act set up certain agency relationships for income tax purposes, or provide certain tax consequences and requirements of an agency relationship:

  3. section EY 49(5) (Non-resident life insurer becoming resident):
    1. sections FM 34(2) (Nominated companies):
      1. sections FN 6(3) (Nominated companies):
        1. section HA 8 (Shareholders’ personal liability):
          1. section HC 29(3) (Settlors’ liability to income tax):
            1. section HC 32 (Liability of trustee as agent):
              1. section LB 2 (Tax credits for provisional tax payments):
                1. section RA 9 (Treatment of amounts withheld as received):
                  1. sections RE 4, RE 5, and RE 7 to RE 9 (which relate to requirements for agents or trustees to pay RWT):
                    1. section RE 22 (When payment treated as non-resident passive income):
                      1. section RF 4 (Non-resident passive income received by agents and others):
                        1. section YA 1 (Definitions), the definition of offered or entered into in New Zealand.

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