Section LB 3 — Income Tax Act 2007: Tax credits for resident withholding tax

LB 3 Tax credits for resident withholding tax Tax credit (1) A person has a tax credit for a tax year equal to the amount of tax withheld and paid in relation to their resident passive income for the tax year if the evidential requirements of section 78D of the Tax Administration Act 1994 are met. Exclusion (2) No credit exists under subsection (1) for an amount of tax for resident passive income that is a replacement payment. Multi-rate PIEs and their investors (3) For a multi-rate PIE and an investor in a multi-rate PIE, the amount of a tax credit is limited to the extent allowed under subpart HM (Portfolio investment entities). Exclusion: Trustees' RWT substitution payment (4) No credit exists under subsection (1) for an amount of tax equal to the amount of an RWT substitution payment that a trustee has paid to the person in relation to the tax. Effect of RWT substitution payment (5) A person who pays an RWT substitution payment has a tax credit for a tax year equal to the payment. Defined in this Act: amount of tax , investor , multi-rate PIE , replacement payment , resident passive income , resident withholding tax , RWT substitution payment , tax credit , tax withheld , tax year , trustee Compare: 2004 No 35 ss LD 3(2) , NF 1(2)(b)(ix), (x) , NF 8B(b) Section LB 3(3) heading: substituted, on 1 April 2010 (applying for the 2010–11 and later income years), by section 313(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section LB 3(3): substituted, on 1 April 2010 (applying for the 2010–11 and later income years), by section 313(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section LB 3(4) heading: added (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years if the trustee has taken a tax position in a tax return that is consistent with subsection (1)), by section 99(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63). Section LB 3(4): added (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years if the trustee has taken a tax position in a tax return that is consistent with subsection (1)), by section 99(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63). Section LB 3(5) heading: added (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years if the trustee has taken a tax position in a tax return that is consistent with subsection (1)), by section 99(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63). Section LB 3(5): added (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years if the trustee has taken a tax position in a tax return that is consistent with subsection (1)), by section 99(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63). Section LB 3 list of defined terms multi-rate PIE : inserted, on 1 April 2010, by section 313(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section LB 3 list of defined terms portfolio tax rate entity : repealed, on 1 April 2010, by section 313(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section LB 3 list of defined terms RWT substitution payment : inserted (with effect on 1 April 2008), on 29 August 2011, by section 99(2) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63). Section LB 3 list of defined terms trustee : added (with effect on 1 April 2008), on 29 August 2011, by section 99(2) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).