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Income Tax Act 2007

General collection rules - Intermediaries - PAYE intermediaries’ responsibilities

RP 20: Declining, amending, or reversing transfers

You could also call this:

“Changes to tax pooling transfers”

When a tax pooling intermediary asks the Commissioner to transfer an amount, the Commissioner can say no or change their mind about a transfer they’ve already made. This can happen if they think the request is trying to avoid paying taxes.

If the Commissioner thinks the request doesn’t follow the rules in sections RP 17 to RP 21, they can choose not to process it, change it, or undo a transfer that’s already happened.

The Commissioner has to say no to the transfer if:

  1. It’s about a deposit where the details haven’t been given as required by section RP 18(3), and 5 working days haven’t passed yet.
  2. The information needed under section RP 19(4) hasn’t been provided.

These rules help make sure that transfers are done correctly and fairly.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1520543.

Topics:
Money and consumer rights > Taxes
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RP 19B: Transfers for certain expected tax liabilities, or

“Using tax pool funds to pay expected income or provisional tax before filing returns”

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RP 21: Refunds from tax pooling accounts, or

“Getting money back from your tax pooling account”

Part R General collection rules
Intermediaries: PAYE intermediaries’ responsibilities

RP 20Declining, amending, or reversing transfers

  1. This section applies when a tax pooling intermediary applies to the Commissioner to transfer an amount under section RP 19.

  2. The Commissioner may refuse to accept the application, or may reverse the transfer, if the application is made for the purpose or effect of tax avoidance.

  3. If the Commissioner considers that the application does not comply with sections RP 17 to RP 21, the Commissioner may—

  4. decline to process the application:
    1. amend the application:
      1. reverse the transfer.

        1. The Commissioner must refuse the transfer if—

        2. it relates to a deposit for which the details have not been provided under section RP 18(3) and the period of 5-working days has not expired:
          1. the details required under section RP 19(4) have not been provided.

            Compare
            Notes
            • Section RP 20 heading: substituted, on , by section 129(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
            • Section RP 20(1): amended, on , by section 68(1) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
            • Section RP 20(2): amended, on , by section 68(2) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
            • Section RP 20(2B) heading: inserted, on , by section 129(2) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
            • Section RP 20(2B): inserted, on , by section 129(2) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
            • Section RP 20(2B): amended, on , by section 68(3) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
            • Section RP 20(2B)(a): amended, on , by section 68(4) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
            • Section RP 20(2B)(b): amended, on , by section 68(5) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
            • Section RP 20 list of defined terms apply: inserted, on , by section 68(6) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).