Part 2
Repayment obligations of borrowers
New Zealand-based borrowers' repayment obligations for salary or wages:
Standard deductions resulting in significant under-deductions or over-deductions
64Standard deductions are full and final unless significant error
Subsection (2) applies if—
- there is an incorrect deduction; and
- the incorrect deduction is not a significant under-deduction or a significant over-deduction.
If this subsection applies,—
- the Commissioner must not take corrective action in relation to the incorrect deduction; and
- the incorrect deduction must be treated as if it was the amount that was required to be deducted from a borrower's salary or wages in accordance with this subpart; and
- this Act must be interpreted and applied with all necessary modifications in order to give effect to paragraph (b).
Subsection (2) applies despite anything to the contrary.
In this section, incorrect deduction means a standard deduction that—
- is required to be made but is not; or
- is less than or more than the amount that is required to be deducted in accordance with section 37.