Section RC 34 — Income Tax Act 2007: Attribution rule for income from personal services

RC 34 Attribution rule for income from personal services When this section applies (1) This section applies for the purposes of the provisional tax rules and Part 7 of the Tax Administration Act 1994 for provisional tax paid for income from personal services to which section GB 27 (Attribution rule for income from personal services) may apply. The references in this section to working person and associated entity reflect the terminology used in section GB 27. Associated entity transferring amount to working person (2) If, in a tax year, the associated entity pays an amount of tax that is more than the provisional tax payable for the tax year, the entity may transfer some or all of the overpayment to the working person to the extent to which the amount of provisional tax paid by the person is less than their residual income tax for the tax year. Working person transferring amount to associated entity (3) If, in a tax year, the working person pays an amount of tax that is more than the provisional tax payable for the tax year, they may transfer some or all of the overpayment to the associated entity to the extent to which the amount of provisional tax paid by the entity is less than their residual income tax for the tax year. When transfer made (4) The associated entity and the working person may transfer an amount under subsection (2) or (3), as applicable, on or after the later of— (a) the day on which the overpayment of provisional tax is paid by the entity or person, as applicable: (b) the day on which the instalment of provisional tax payable for the tax year becomes payable by— (i) the person, if the entity is making the transfer; or (ii) the entity, if the person is making the transfer. Notice (5) The Commissioner must be notified of a transfer under subsection (2) or (3) in a notice that— (a) names the person to whom a transfer is made, and the amount to be transferred; and (b) states the date on which the overpayment is treated as transferred to the associated entity or working person, as applicable; and (c) is provided within the time for filing a return of income for the tax year for the person to whom the transfer is made, or an extended time allowed by the Commissioner. When transfer made and how transfer treated (6) For the purposes of this section,— (a) a transfer under subsection (2) or (3) is treated as made on the day stated in the notice; and (b) provisional tax transferred by the associated entity to the working person for a tax year is treated as provisional tax paid by the working person and not by the associated entity; and (c) provisional tax transferred by the working person to the associated entity is treated as provisional tax paid by the associated entity and not by the working person. Defined in this Act: amount , amount of tax , associated person , Commissioner , income , notice , notify , pay , provisional tax , provisional tax rules , residual income tax , return of income , tax year Compare: 2004 No 35 s MB 35 Section RC 34(1) heading: substituted (with effect on 1 April 2008), on 6 October 2009, by section 500(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section RC 34(1): substituted (with effect on 1 April 2008), on 6 October 2009, by section 500(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section RC 34(2) heading: substituted (with effect on 1 April 2008), on 6 October 2009, by section 500(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section RC 34(2): substituted (with effect on 1 April 2008), on 6 October 2009, by section 500(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section RC 34(3) heading: substituted (with effect on 1 April 2008), on 6 October 2009, by section 500(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section RC 34(3): substituted (with effect on 1 April 2008), on 6 October 2009, by section 500(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section RC 34(4) heading: substituted (with effect on 1 April 2008), on 6 October 2009, by section 500(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section RC 34(4): substituted (with effect on 1 April 2008), on 6 October 2009, by section 500(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section RC 34(5) heading: substituted (with effect on 1 April 2008), on 6 October 2009, by section 500(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section RC 34(5): substituted (with effect on 1 April 2008), on 6 October 2009, by section 500(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section RC 34(6) heading: substituted (with effect on 1 April 2008), on 6 October 2009, by section 500(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section RC 34(6): substituted (with effect on 1 April 2008), on 6 October 2009, by section 500(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section RC 34 list of defined terms amount of tax : inserted (with effect on 1 April 2008), on 6 October 2009, by section 500(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section RC 34 list of defined terms associated person : inserted (with effect on 1 April 2008), on 6 October 2009, by section 500(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).