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Tax Administration Act 1994

Information, record-keeping, and returns - Taxpayers’ obligations to keep records - Taxpayer's obligations to keep records

22AAB: Records to be kept by payers of passive income

You could also call this:

"Keeping records of passive income you pay to others"

Illustration for Tax Administration Act 1994

You must keep records if you pay passive income to others. You need to keep these records in English or te reo Maori. The records must show the income you paid and the tax you withheld. You must keep these records for at least 7 years. The Commissioner can ask you to keep them for longer if they need to. You can ask the Commissioner if you can keep your records in a different language. You must keep your records safe so the Commissioner can check them. The Commissioner can check your records at any time to make sure you are paying the right amount of tax. You can look at the information the Commissioner needs to know in the schedule 3, table 2.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS336533.

Topics:
Money and consumer rights > Taxes
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Part 3Information, record-keeping, and returns
Taxpayers’ obligations to keep records: Taxpayer's obligations to keep records

22AABRecords to be kept by payers of passive income

  1. This section applies when a person—

  2. is liable under the RWT rules to withhold RWT for resident passive income paid to or derived by another person:
    1. is liable under the NRWT rules to withhold NRWT for non-resident passive income paid to or derived by another person.

      1. The person must keep proper records in English or te reo Maori relating to the income paid by them, and RWT or NRWT withheld by them, or liable to be withheld by them, sufficient to enable the Commissioner to ascertain readily at any time the information set out in schedule 3, table 2.

      2. A person referred to in subsections (1) and (2) must take reasonable steps to ensure the safe-keeping of their records for a period of not less than 7 years after the making of the payments to which the records relate, except to the extent to which—

      3. the Commissioner has notified the person that retention of the records is not required; or
        1. the records are required by law to be delivered to a person other than the Commissioner; or
          1. the person is a company that has been liquidated.

            1. The Commissioner may, before the end of the 7-year period referred to in subsection (3), notify the person that they are required to retain records specified by the Commissioner for a further period of up to 3 years after the end of the 7-year period if—

            2. the affairs of the person are or have been under audit or investigation by the Commissioner; or
              1. the affairs of a person to whom the records relate are or have been under audit or investigation by the Commissioner; or
                1. the Commissioner intends to conduct, or is actively considering, an audit or investigation before the end of the extended retention period.

                  1. On application by the person, the Commissioner may authorise the keeping of records under this section in a language other than English or te reo Maori.

                  Notes
                  • Section 22AAB: inserted, on , by section 273 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
                  • Section 22AAB(2): amended, on , by section 195(1) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
                  • Section 22AAB(5): amended, on , by section 195(2) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).