Plain language law

New Zealand law explained for everyone

Tax Administration Act 1994

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

32M: Persons with approved issuer status

You could also call this:

"People who can pay a special fee when borrowing money"

Illustration for Tax Administration Act 1994

You can elect to pay approved issuer levy if you borrow money. You do this by being an approved issuer and registering the security under section 86G of the Stamp and Cheque Duties Act 1971. You also need to pay the levy under section 86I of that Act. You become an approved issuer by telling the Commissioner you want this status. The Commissioner can also treat you as an approved issuer if you have paid interest on a security and no NRWT was withheld. The Commissioner can revoke your approved issuer status if you have not complied with tax rules. You will be told if your status is revoked. If your status is revoked, you still have approved issuer status for some payments made after the revocation. This applies to payments of interest on money lent to you under a registered security while you were an approved issuer.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

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=DLM1264423.

Topics:
Money and consumer rights > TaxesMoney and consumer rights > Banking and loans
Previous

32L: Revocation of RWT-exempt status, or

"Losing Your RWT-Exempt Status"

Next

32N: Information requirements when payments for foreign dividends reduced, or

"What to do when foreign dividend payments are reduced"

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

32MPersons with approved issuer status

  1. A person who borrows, has borrowed, or will borrow money is eligible to elect to pay approved issuer levy in relation to a security for the purposes of—

  2. the NRWT rules:
    1. an exemption under a double tax agreement.

      1. For the purposes of subsection (1), the person elects to pay approved issuer levy in relation to a security by—

      2. either being an approved issuer or becoming an approved issuer under subsection (2B); and
        1. applying under section 86G of the Stamp and Cheque Duties Act 1971 to register the security; and
          1. paying the amount of the levy for the security under section 86I of that Act.

            1. A person becomes an approved issuer by—

            2. notifying the Commissioner that they wish to have approved issuer status; or
              1. being treated as an approved issuer by the Commissioner because the person has paid interest under a security, and—
                1. the security is a notional loan under section FG 2 of the Income Tax Act 2007, and NRWT was not withheld from the interest under section RF 3 of that Act; or
                  1. an amount of the interest was apportioned to a New Zealand source under section YD 5(4) of the Income Tax Act 2007, and NRWT was not withheld from the amount under section RF 3 of that Act.

                  2. The Commissioner may revoke a person’s approved issuer status at a particular time if—

                  3. the Commissioner considers that the person has been responsible for serious default or neglect in complying with their obligations under the Inland Revenue Acts in the 2-year period leading up to that time; or
                    1. subsection (2B)(b) does not apply to the person, and the person asks for revocation of the status.

                      1. The Commissioner must notify the person of a revocation under subsection (3).

                      2. If the Commissioner revokes a person's approved issuer status under subsection (3) within 20 working days of having been notified under subsection (2B), the revocation applies from the date of notification.

                      3. Despite subsection (3), the person continues to have approved issuer status for the purposes of the NRWT rules, an exemption under a double tax agreement, and Part 6B of the Stamp and Cheque Duties Act 1971, as applicable in relation to a payment of interest made after the date of revocation for money lent to the person under a registered security while the person was an approved issuer and before the date of the revocation.

                      Compare
                      Notes
                      • Section 32M: 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 32M(1): replaced (with effect on 1 August 2010), on , by section 145(1) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
                      • Section 32M(2): replaced (with effect on 1 August 2010), on , by section 145(1) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
                      • Section 32M(2B): replaced, on , by section 311(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
                      • Section 32M(3)(b): replaced, on , by section 311(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
                      • Section 32M(4B): inserted (with effect on 1 August 2010), on , by section 145(2) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
                      • Section 32M(5): amended (with effect on 1 August 2010), on , by section 145(3) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).