Section RE 18 — Income Tax Act 2007: Payments made by RWT proxies

RE 18 Payments made by RWT proxies Calculation of amount of tax (1) A person who is an RWT proxy for a person paying resident passive income that consists of a dividend must withhold an amount of tax for the payment calculated using the formula— tax rate × amount paid 1 − rate. Definition of items in formula (2) In the formula,— (a) tax rate is the basic rate set out in schedule 1, part D, clause 3 (Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe benefits): (b) amount paid is the amount of the dividend paid. Defined in this Act: amount , amount of tax , dividend , pay , resident passive income , RWT proxy , Compare: 2004 No 35 s NF 2(1B) Section RE 18(2)(a) tax rate : amended (with effect on 1 April 2008), on 7 September 2010 (applying for the 2008–09 and later income years), by section 116(1) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109). Section RE 18(2)(a) tax rate : amended, on 1 April 2008, by section 562 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).