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Tax Administration Act 1994

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

32K: Failing to meet basis of exemption

You could also call this:

"What happens if you don't meet the rules for not paying withholding tax?"

Illustration for Tax Administration Act 1994

You have RWT-exempt status if you meet certain requirements. If you no longer meet these requirements, this section applies to you. You must tell the Commissioner within 5 days if you become aware you no longer meet the requirements. You might be asked to give the Commissioner the names and addresses of people you told about your RWT-exempt status. You have to respond to the Commissioner's request within 5 days. This is so you can get an exemption from withholding tax from resident passive income payments. The Commissioner is in charge of making sure you follow the rules. You can find more information about the rules by looking at the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018. This will help you understand what you need to do if you have RWT-exempt status.

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This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1258132.

Topics:
Money and consumer rights > Taxes
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32JB: RWT-exempt status for limited partnerships, or

"What is RWT-exempt status for limited partnerships?"

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32L: Revocation of RWT-exempt status, or

"Losing Your RWT-Exempt Status"

Part 3Information, record-keeping, and returns
Statements, notices, and certificates: Resident passive income

32KFailing to meet basis of exemption

  1. This section applies when a person who has RWT-exempt status no longer meets the requirements on which their exemption is based.

  2. If the person becomes aware that they no longer meet the requirements, they must notify the Commissioner within a period of 5 days after the day on which they become aware.

  3. The Commissioner may ask the person to provide the full name and last known address of all persons to whom they have advised their RWT-exempt status for the purposes of obtaining an exemption from withholding the amount of tax from a payment of resident passive income. The person must respond to the Commissioner’s request within 5 days.

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Notes
  • Section 32K: inserted, on (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
  • Section 32K(1): amended, on , by section 298(1) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
  • Section 32K(2): replaced, on , by section 298(2) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
  • Section 32K(3): amended, on , by section 298(3) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).