Plain language law

New Zealand law explained for everyone

Income Tax Act 2007

General collection rules - General withholding and payment obligations

RA 8: Liability of persons receiving payments or benefits

You could also call this:

“You might need to pay tax on payments or benefits you receive”

If you get a payment or benefit, you might have to pay tax on it. This is true even if someone else is supposed to take out the tax or pay it for you. The law says you could still be responsible for paying the tax yourself.

This rule is different from what [sections RA 5 and RA 6] say. Those sections talk about other people being responsible for the tax. But in some cases, you might have to pay the tax yourself, even if you’re just the person getting the money or benefit.

Remember, this only applies to payments or benefits where tax needs to be taken out or paid. It doesn’t mean you always have to pay tax on everything you get.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1519741.

Topics:
Money and consumer rights > Taxes
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“Public authorities can pay tax without needing extra approval”

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RA 9: Treatment of amounts withheld as received, or

“Money withheld from your payment is treated as if you received it”

Part R General collection rules
General withholding and payment obligations

RA 8Liability of persons receiving payments or benefits

  1. Despite sections RA 5 and RA 6, a person receiving or deriving a payment or benefit in relation to which an amount of tax must be withheld or paid may be liable under this Part for payment of the tax.

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