Plain language law

New Zealand law explained for everyone

Income Tax Act 2007

Taxation of certain entities - Agents

HD 30: Members of wholly-owned large multinational group

You could also call this:

“New Zealand members of large multinational groups may have to pay tax for overseas members”

If you are part of a large multinational group that is wholly owned and you live in New Zealand or have a permanent business set up here, you might have to help pay tax for another member of your group. This can happen if that other member doesn’t live in New Zealand and hasn’t paid their tax.

You’ll only need to do this if two things happen. First, the other member (called the principal member) doesn’t pay their tax. Second, the Commissioner of Inland Revenue tells you that you have to act as an agent for the principal member and pay their unpaid tax.

When this happens, you’re treated as if you were an agent for the principal member. This means you’re responsible for paying their unpaid tax, even though it’s not originally your tax bill.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS58077.

Topics:
Money and consumer rights > Taxes
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Part H Taxation of certain entities
Agents

HD 30Members of wholly-owned large multinational group

  1. A member of a wholly-owned large multinational group who is a New Zealand resident or has a permanent establishment in New Zealand is treated as an agent of a member of the large multinational group (the principal member) who is a non-resident in relation to unpaid tax of the principal member if—

  2. the principal member fails to pay the unpaid tax; and
    1. the Commissioner notifies the member that the member has the obligations of an agent for the principal member and the unpaid tax.

      Notes
      • Section HD 30: inserted, on , by section 43 of the Taxation (Neutralising Base Erosion and Profit Shifting) Act 2018 (2018 No 16).