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Tax Administration Act 1994

Recoveries - Deductions

170: Recovery of RWT

You could also call this:

"Getting back money held in trust for the government"

Illustration for Tax Administration Act 1994

When you withhold RWT, you hold it in trust for the Crown. You do not own this money, so it is not part of your property if you go bankrupt. The rules in section 167(2) apply to RWT as if it were tax. This rule applies even if other laws say something different.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM357913.

Topics:
Money and consumer rights > Taxes
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169: Unpaid tax payments, etc, to constitute charge on employer's or PAYE intermediary's property, or

"Unpaid tax can be taken from an employer's or PAYE intermediary's property"

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171: Person failing to withhold RWT, or

"What happens if you don't take out tax when you should"

Part 10Recoveries
Deductions

170Recovery of RWT

  1. The amount of RWT withheld under the RWT rules by any person shall be held in trust for the Crown, and any amount so held in trust shall not be property of the person liable to execution, and, in the event of the bankruptcy or liquidation of the person or an assignment for the benefit of the person's creditors, shall remain apart, and form no part of the estate in bankruptcy, liquidation, or assignment.

  2. The provisions of section 167(2) shall apply to any amount of RWT made in accordance with the RWT rules by any person as if it were tax to which that section refers and as if the person were the employer to which that section refers.

  3. This section shall apply notwithstanding anything in any other Act.

Compare
  • 1976 No 65 s 327Q
Notes
  • Section 170 heading: amended, 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 170(1): amended, 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 170(2): amended, 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 170(3): amended, on , by section 14 of the Companies Amendment Act 2013 (2013 No 111).