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Income Tax Act 2007

General collection rules - General withholding and payment obligations

RA 10: When obligations not met

You could also call this:

“Consequences for failing to meet tax payment obligations”

This section talks about what happens when people or companies don’t pay certain taxes they’re supposed to. It applies in three main situations:

  1. When someone doesn’t take out and pay the right amount of tax from payments like wages, land purchases, or retirement contributions.

  2. When someone doesn’t pay the right amount of tax for giving their employees extra benefits (called fringe benefits).

  3. When someone selling land doesn’t pay a special tax called RLWT.

If any of these happen, the unpaid tax becomes a debt that the person owes to the government. They have to pay it by a certain date, which is set out in section RA 15. The amount they owe might include both tax and other payments related to earnings.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1519745.

Topics:
Money and consumer rights > Taxes
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“Money withheld from your payment is treated as if you received it”

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“Correcting tax underpayment errors when paying others”

Part R General collection rules
General withholding and payment obligations

RA 10When obligations not met

  1. This section applies when—

  2. a person liable to withhold an amount of tax for a PAYE income payment, a residential land purchase amount, an employer's superannuation cash contribution, a retirement scheme contribution, a payment of resident passive income, or a payment of non-resident passive income, does not withhold and pay the amount to the Commissioner; or
    1. a person liable to pay an amount of tax to the Commissioner for a fringe benefit does not pay the amount; or
      1. a vendor liable to pay an amount of RLWT does not pay the amount.

        1. The amount is a debt payable to the Commissioner.

        2. The amount is due to be paid to the Commissioner on the relevant due date after the end date for the original liability set out in section RA 15.

        3. The amount includes a combined tax and earner-related payment.

        Compare
        Notes
        • Section RA 10(1)(a): amended, on , by section 47(1) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).
        • Section RA 10(1)(a): amended (with effect on 1 April 2008), on , by section 491(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
        • Section RA 10(1)(a): amended, on , by section 523(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
        • Section RA 10(1)(b): amended, on , by section 47(2) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).
        • Section RA 10(1)(c): replaced, by section 47(2) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).
        • Section RA 10 list of defined terms employer's superannuation cash contribution: inserted (with effect on 1 April 2008), on , by section 491(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
        • Section RA 10 list of defined terms employer's superannuation contribution: repealed (with effect on 1 April 2008), on , by section 491(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
        • Section RA 10 list of defined terms FDP: repealed (with effect on 30 June 2009), on , by section 491(4) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
        • Section RA 10 list of defined terms residential land purchase amount: inserted, on , by section 47(3) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).
        • Section RA 10 list of defined terms RLWT: inserted, on , by section 47(3) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).
        • Section RA 10 compare note: amended, on , by section 523(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).