Section HD 5 — Income Tax Act 2007: Matters between principals and agents

HD 5 Matters between principals and agents Assessment as authority (1) The Commissioner’s assessment is, as between principal and agent, sufficient authority for the payment of tax by the agent. Recovering payment (2) On paying tax, an agent is entitled to be reimbursed by the principal, and may— (a) recover the amount from the principal; or (b) subtract the amount from money held by the agent that belongs or is payable to the principal. Retaining funds (3) For the purposes of paying tax in relation to which an agent is or may become liable, the agent may retain from money that belongs or is payable to the principal an amount that is reasonably sufficient to pay the tax. This subsection applies at a time in an income year in which the tax is due or in a later income year. Hardship (4) The Commissioner may set a new due date for an agent to pay a tax liability if— (a) the agent— (i) is unable to pay the tax liability out of money that the agent holds that belongs to the principal; and (ii) has not paid away an amount after being assessed in relation to the agency; and (b) the enforcement of payment would cause hardship to the agent. Defined in this Act: agent , amount , assessment , Commissioner , income year , pay , tax , Compare: 2004 No 35 ss HK 4–HK 6 , HK 7(2)