Tax Administration Act 1994

Transfers of excess tax - Transfer rules

173MB: Limitation on transfer by PAYE intermediary

You could also call this:

"Rules for keeping interest when paying taxes for someone else"

Illustration for Tax Administration Act 1994

You are acting as a PAYE intermediary for an employer. When you pay the Commissioner, you get interest on that payment. This interest cannot be treated as tax overpaid by you, except when you are acting as a PAYE intermediary for the employer. You cannot transfer this interest to yourself in a different role or to another taxpayer. The rules in sections 173L and 173M, and section RP 6(4) of the Income Tax Act 2007 do not change this. This means the interest is only related to your role as a PAYE intermediary for the employer.

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This page was last updated on 28 November 2025

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM357972.

173M: Transfer of excess tax to another taxpayer, or

"Move extra tax paid to another person or company"

173N: Transfer of excess tax: tax credits, or

"Transferring extra tax money from a tax credit"

Part 10BTransfers of excess tax
Transfer rules

173MBLimitation on transfer by PAYE intermediary

Despite sections 173L and 173M, and section RP 6(4) of the Income Tax Act 2007, interest on a payment made by a person to the Commissioner in acting as a PAYE intermediary for an employer—
may not be treated as tax overpaid by the person other than as a PAYE intermediary for the employer; and
may not be transferred to the person in another capacity or to another taxpayer.

Notes

Section 173MB: inserted, on 26 March 2003 (applying for pay periods beginning on and after 1 April 2004), by section 145(1) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
Section 173MB: amended, on 1 April 2008 (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).