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Customs and Excise Act 2018

Final and miscellaneous provisions - Regulations, orders, rules, etc - Levy orders

415: Trust accounts for levy money payable to chief executive

You could also call this:

"Keep levy money in a special bank account for the chief executive."

Illustration for Customs and Excise Act 2018

If you collect levy money, you must keep it in a special bank account. You need to open this account at a registered bank, which is a bank that the government says is safe. The account must be named in a way that shows it is a trust account for levy money.

You must put the levy money into this trust account on the days specified in the levy order. A levy order is an order made under section 413 or section 414A. You must make sure the account is only used for levy money and that there is always enough money in the account to pay the chief executive.

If there is more money in the account than you owe the chief executive, the extra money is still held in trust for the chief executive. If there is the same amount of money in the account as you owe the chief executive, or less, all the money in the account is held in trust for the chief executive. This means you cannot use the money to pay other debts, and other people cannot take the money to pay your debts.

When you stop collecting levy money, you must keep the trust account open until you have paid all the levy money you owe the chief executive. This does not change any other responsibilities you may have under this Act. A trust account is the special account you open to hold levy money, as described in this section. A registered bank has the meaning given to that term in section 2(1) of the Banking (Prudential Supervision) Act 1989.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM7039898.

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Part 6Final and miscellaneous provisions
Regulations, orders, rules, etc: Levy orders

415Trust accounts for levy money payable to chief executive

  1. If a levy order provides that the levy funds payable are to be held on trust in separate accounts, each person responsible for collecting the levy must—

  2. keep a bank account at a registered bank; and
    1. ensure that the account is so named as to identify that it is a trust account kept by the person responsible for collecting the levy for the purposes of the order; and
      1. take all practicable steps to ensure that—
        1. the account is used only for holding amounts required to be deposited under this section; and
          1. the balance in the account on any day is not less than the amount outstanding on that day to the chief executive.

          2. A person responsible for collecting a levy must deposit in a trust account an amount equal to the levy calculated in accordance with the levy order on the day or days specified in, or calculated in accordance with, that order.

          3. If the amount held in the trust account—

          4. is more than the amount of levy money that is outstanding to the chief executive, the amount outstanding is treated as being held on trust for the chief executive:
            1. is the same as or less than the amount that is outstanding, all the money in the account is treated as being held on trust for the chief executive.

              1. Money treated by subsection (3) as being held on trust is not available for the payment of, and is not liable to be attached or taken in execution at the instance of, any creditor of the person responsible for collecting the levy (other than the chief executive).

              2. A person who ceases to be a person responsible for collecting a levy must continue to maintain the trust account until all the levy money payable to the chief executive, in respect of the period during which that person was responsible for collecting the levy, has been paid.

              3. Nothing in subsection (5) limits or affects any obligation or liability under this Act of any person who has become responsible for collecting the levy.

              4. In this section,—

                levy order means an order under section 413 or 414A

                  registered bank has the meaning given to that term in section 2(1) of the Banking (Prudential Supervision) Act 1989

                    trust account means the account referred to in subsection (1).

                    Compare
                    Notes
                    • Section 415(7) levy order: amended, on , by section 7 of the Customs (Levies and Other Matters) Amendment Act 2025 (2025 No 51).
                    • Section 415(7) registered bank: amended, on , by section 300(1) of the Reserve Bank of New Zealand Act 2021 (2021 No 31).