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Tax Administration Act 1994

Information, record-keeping, and returns - Statements, notices, and certificates - Resident passive income

32L: Revocation of RWT-exempt status

You could also call this:

"Losing Your RWT-Exempt Status"

Illustration for Tax Administration Act 1994

The Commissioner can take away your RWT-exempt status at any time if they think you do not meet the requirements. You might not have met the requirements in the first place, or you might have given misleading information. The Commissioner will tell you within 30 working days if your status is taken away. If the Commissioner thinks you have another reason to keep your RWT-exempt status, they will not take it away. You must tell everyone you have told about your RWT-exempt status that it has been taken away within 5 days. The Commissioner will put your name on a public list if your RWT-exempt status is taken away. The Commissioner can also ask you to do something under section 32K(3) and you must do it. Your RWT-exempt status can be taken away if it was based on section 32E(2)(i) or (j) and the evidence is not good enough. You can also lose your RWT-exempt status if you do not pay your income tax on time.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1258117.

Topics:
Money and consumer rights > Taxes
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Part 3Information, record-keeping, and returns
Statements, notices, and certificates: Resident passive income

32LRevocation of RWT-exempt status

  1. The Commissioner may revoke a person’s RWT-exempt status at any time if—

  2. the Commissioner reasonably believes that the person no longer meets the requirements on which their exemption is based; or
    1. the person did not meet the requirements on which their exemption was based, having acquired the status through misleading information; or
      1. the person should not have been provided with RWT-exempt status; or
        1. the person’s RWT-exempt status was based on a ground set out in section 32E(2)(i) or (j), and the evidence provided under section 32G—
          1. shows the person did not meet the threshold; or
            1. is unsatisfactory; or
              1. is materially incorrect or misleading; or
              2. the person is liable for income tax that remains unpaid by the due date for payment.

                1. The Commissioner must notify the person whose status has been revoked within 30 working days of the revocation. The Commissioner may also make a request under section 32K(3) with which the person must comply.

                2. Despite subsection (1), if the Commissioner considers that a person referred to in subsection (1)(a) to (d) is a person to whom section 32G applies and has a further basis for RWT-exempt status, the Commissioner must not revoke the status.

                3. A person referred to in subsection (2) must, within 5 days of being notified by the Commissioner, notify every person that they have advised of their RWT-exempt status and from whom they expect to receive further payments of resident passive income that their status has been revoked.

                4. The Commissioner must publish on an electronic register, a list of all persons whose RWT-exempt status has been revoked.

                Notes
                • Section 32L: replaced, on , by section 299 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).