24HBSchedular payments: tax obligations undertaken by nominated persons

1. This section applies in relation to a non-resident contractor that has a schedular payment under schedule 4, part A of the Income Tax Act 2007 for a tax year, if the non-resident contractor has made an arrangement with a person resident in New Zealand in relation to their PAYE, FBT, and ESCT obligations.

2. The contractor may nominate the person to carry out the contractor’s tax obligations under section 124F.

3. The nominated person must notify the Commissioner that they act on behalf of the contractor in discharging the contractor’s tax obligations for the tax year in relation to unpaid tax.

4. The actions of the nominated person or a party to the arrangement with the contractor may provide a compliance history for the purposes of section RD 24(1)(c) of the Income Tax Act 2007, and for an application under section 24H for an exempt payment.

5. The contractor may not make a separate assessment or return for the tax year in relation to the arrangement unless they are, for part of the corresponding income year, not part of the arrangement.

6. Each person who is part of the arrangement is jointly and severally liable for the contractor’s unpaid tax.