Section RE 10 — Income Tax Act 2007: Special rule relating to payments of interest

RE 10 Special rule relating to payments of interest Threshold for amounts of interest (1) This section applies to a person who— (a) pays resident passive income consisting of interest; and (b) either does not hold an RWT exemption certificate at the time of the payment, or is described in section 32E(2)(k) or (l) of the Tax Administration Act 1994 or holds a certificate under section 32I of that Act; and (c) has paid an amount of resident passive income consisting of interest that totals less than $5,000 in the tax year before the tax year in which the payment is made; and (d) would be liable to withhold RWT for the resident passive income in the absence of this section. Minimum amount (2) Despite section RE 4(3) , the person is required to withhold the amount of tax for the payment only if the total resident passive income consisting of interest paid by the person in the tax year in which the payment is made is more than $5,000. Defined in this Act: amount , amount of tax , interest , pay , resident passive income , RWT , RWT exemption certificate , tax year , Compare: 2004 No 35 s NF 2(5)