Section RA 11 — Income Tax Act 2007: Adjustment to correct errors: certain underpayments

RA 11 Adjustment to correct errors: certain underpayments When this section applies (1) This section applies when— (a) a person (the payer ) is required to withhold and pay to the Commissioner— (i) RWT in relation to a payment to another person (the payee ) of resident passive income that is interest or a dividend treated as interest; or (ii) NRWT in relation to a payment to the payee of non-resident passive income; and (b) the payer, through an error, does not withhold some or all of the amount. Amount withheld from later payment or recovered (2) The payer may— (a) subtract from a later payment to the payee an amount to correct the deficiency; or (b) recover from the payee an amount to correct the deficiency. Requirements when withholding from later payment (3) For the purposes of subsection (2)(a),— (a) the later payment must be a payment of interest, a dividend treated as interest, or a payment of non-resident passive income, as applicable; and (b) the payment must be made in the same tax year in which the first payment is made. Defined in this Act: amount , Commissioner , dividend treated as interest , interest , non-resident passive income , NRWT , pay , resident passive income , RWT , tax year , Compare: 2004 No 35 ss NF 6(1) , NG 16A(1)