120OBVariation to definitions for determining interest chargeable or payable to PAYE intermediaries

1. Despite section 120C, this section sets out the definitions that apply for the purpose of determining interest chargeable or payable to a person acting as a PAYE intermediary for an employer, if the employer has—

2. paid to the person the salary or wages relating to an employee as required by sections RP 9 to RP 11 of the Income Tax Act 2007; and
3. provided to the person the information requested by the person, as required by section RP 8(b) of that Act.

4. In this Part—

   Commissioner's paying rate means the rate of interest established and notified as the Commissioner's paying rate by an Order in Council made under section 120H

   date interest starts—

   1. for unpaid tax means—
      1. if a PAYE intermediary pays too little tax by a due date—
         1. the day after the due date for payment of the tax; or
         2. where the due date is a new due date, the day after the original due date for payment of the tax:
      2. if the Commissioner refunds tax which should be kept and taken into account in satisfying tax payable by a PAYE intermediary on a due date, the day after the day the Commissioner refunds the tax; and
   2. for overpaid tax, if a PAYE intermediary pays too much tax by or after a due date—
      1. the day after the later of the due date for payment of the tax and the date the payment is made; or
      2. where the due date is a new due date, the day after the later of the original due date for payment of the tax and the date on which the payment is made

   interest paid to a taxpayer means interest credited to the PAYE intermediary; and interest paid and paid have corresponding meanings

   interest period—

   1. for unpaid tax, means the period beginning on the date interest starts and ending on the date the tax is paid or credited as paid (both dates inclusive):
   2. for overpaid tax, means the period beginning on the date interest starts and ending on the date the tax is refunded by the Commissioner (both dates inclusive); and

   tax paid, at any time, means the amount of tax that at the time—

   1. has been paid or credited as paid for an amount of tax that must be withheld or deducted under a tax law; and
   2. has not been refunded by the Commissioner

   tax payable, at any time, means an amount of tax that at the time is due to be withheld or deducted under a tax law and paid to the Commissioner

   taxpayer's paying rate means the rate of interest established and notified as the taxpayer's paying rate by an Order in Council made under section 120H.

5. For the purposes of this Part, where, at any time—

6. the tax paid by a PAYE intermediary exceeds the tax payable, the excess is overpaid tax; and
7. the tax payable by a PAYE intermediary exceeds the tax paid, the excess is unpaid tax.