Plain language law

New Zealand law explained for everyone

Income Tax Act 2007

General collection rules - Refunds

RM 7: Refunds to PAYE intermediaries

You could also call this:

“How refunds work when your employer uses a tax payment service”

If you work for someone who uses a PAYE intermediary to handle their taxes, there are some rules about refunds. A PAYE intermediary is a company that helps your employer pay taxes to the government.

Sometimes, the PAYE intermediary might pay too much tax to the government. This can happen if:

  1. Your employer puts money in the intermediary’s bank account, but the payment doesn’t go through.
  2. Someone else puts money in the intermediary’s account by mistake, and the intermediary has to give it back.
  3. The intermediary uses their own money to pay your taxes when they shouldn’t have.

In these cases, the government (called ‘the Commissioner’) must give the extra money back to the PAYE intermediary.

This rule helps make sure that PAYE intermediaries don’t lose money when they’re trying to help employers pay taxes correctly.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1520426.

Topics:
Money and consumer rights > Taxes
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RM 8: Overpaid RWT or NRWT, or

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Part R General collection rules
Refunds

RM 7Refunds to PAYE intermediaries

  1. This section applies when a PAYE intermediary pays to the Commissioner an amount of tax for a PAYE income payment for an employer—

  2. relying on a payment made to the trust account of the intermediary—
    1. by the employer and later dishonoured; or
      1. mistakenly by a person and later recovered from the intermediary:
      2. mistakenly from funds not provided by the employer for a purpose related to the PAYE income payment.

        1. The Commissioner must refund the amount of tax to the intermediary.

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