Section RA 12 — Income Tax Act 2007: Adjustment to correct errors: certain excess amounts

RA 12 Adjustment to correct errors: certain excess amounts When this section applies (1) This section applies when— (a) a person (the payer ) is required to withhold and pay to the Commissioner an amount of RWT or NRWT for a payment to another person (the payee ); and (b) the payer, through an error, withholds an amount (the excess amount ) that is more than the amount required under this Part. Refunding excess amount of resident passive income (2) For a payment of resident passive income, the payer may pay the excess amount to the payee at any time before the end of the tax year in which the amount of tax is withheld if,— (a) for a payment of interest or a dividend treated as interest, an RWT withholding certificate relating to the amount has either not been sent out or has been returned and cancelled: (b) for a payment of a dividend other than a dividend treated as interest, a shareholder dividend statement relating to the amount has either not been sent out for the purposes of section 29 of the Tax Administration Act 1994 or has been returned and cancelled: (c) for a taxable Maori authority distribution, a notice relating to the amount has either not been given to a member of the Maori authority under section 31 of that Act or has been returned and cancelled. Treatment of amount (3) For the purposes of this section, when the payer pays the excess amount under subsection (2), the amount is no longer treated as RWT. Amendments to notices (4) If the RWT withholding certificate, shareholder dividend statement, or notice referred to in subsection (2)(c) has been returned or cancelled, the payer must provide the payee with an amended certificate, statement, or notice, as applicable. Commissioner refunding overpayment (5) If the excess amount has been paid to the Commissioner, the Commissioner must refund the amount of the overpayment to— (a) the payee; or (b) the payer, if they have not subtracted the amount under subsection (6)(a) from a later payment made in relation to the payee. Payer’s options (6) For the purposes of subsection (5), if the excess amount has been refunded to the payee, the payer may— (a) subtract the amount from an amount paid later to the Commissioner under section RE 21 or RF 13 (which relate to resident passive income and non-resident passive income), noting the action in the statement required under section 50 of the Tax Administration Act 1994; or (b) apply for a refund of the amount under section RM 8 (Overpaid RWT or NRWT). Overpayment through payee’s act or omission (7) Despite subsections (2) and (5), if the excess amount arises from an act or omission by the payee, the payer must pay the full amount withheld to the Commissioner and is not liable to repay the excess amount to the payee or another person. Defined in this Act: amount , amount of tax , Commissioner , dividend , dividend treated as interest , interest , Maori authority , non-resident passive income , notice , NRWT , pay , resident passive income , RWT , RWT withholding certificate , shareholder dividend statement , tax year , taxable Maori authority distribution , Compare: 2004 No 35 ss NF 6(2)–(4) , NF 7(1), (2) , NG 16A(2), (3)