Part L
Tax credits and other credits
Tax credits for gifts and donations
LD 6When donation is paid to ineligible recipient
This section applies for the purposes of section LD 4 when the employer or PAYE intermediary transfers the person's payroll donation to an entity that is not a donee organisation.
The tax credit is extinguished.
The consequences that arise when a tax credit is extinguished under subsection (2) are—
- the amount of the credit is removed from the person's tax credits for PAYE income payments under section LB 1 (Tax credits for PAYE income payments) for the tax year in which the pay period falls:
- when the extinguishing of the credit results in a shortfall in an amount of tax for a PAYE income payment, section RD 4 (Payment of amounts of tax to Commissioner) applies to the shortfall.
Notes
- Section LD 6: added, on , by section 323 of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
- Section LD 6(3)(a): amended, on , by section 75 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
- Section LD 6 list of defined terms PAYE intermediary: inserted (with effect on 6 January 2010), on , by section 158 of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).