RF 6When amounts of tax not withheld or partly withheld

1. When a person (person A) is required under section RA 6(2) (Withholding and payment obligations for passive income) to withhold NRWT and does not withhold the full amount required under this Part, the person (person B) deriving the non-resident passive income is treated for this purpose as a filing taxpayer.

2. A person who derives non-resident passive income that is a dividend under section GB 1(3) (Arrangements involving dividend stripping) is treated as a filing taxpayer.

3. The amount of tax referred to in subsection (1) as not withheld is a debt payable by person A to the Commissioner, and is treated as having become due under section RA 10 (When obligations not met).

4. Subsection (2) applies in relation to a non-cash dividend described in section RF 10 as if the amount equal to the amount of tax for the dividend were the amount payable.

5. In recovering the amount, the Commissioner may take the steps the Commissioner thinks fit in relation to person A or person B, whether or not they are the same person.

6. Section 165 of the Tax Administration Act 1994 applies if NRWT payable by person B is, in fact, paid by another person.