Section RE 30 — Income Tax Act 2007: When unincorporated bodies hold certificates

RE 30 When unincorporated bodies hold certificates When this section applies (1) This section applies when— (a) an unincorporated body that is carrying on a taxable activity holds an RWT exemption certificate; and (b) the exemption relates to the carrying on of the taxable activity. Treatment of payments made by unincorporated bodies (2) For the purposes of the RWT rules, a payment that the body makes in the course of carrying on the taxable activity is treated as a payment made by the body and not by a member of the body. This subsection overrides subsection (7). Treatment of payments to members of unincorporated bodies (3) For the purposes of the RWT rules, a payment made to a member of the body in their capacity as a member and in the course of carrying on the taxable activity of the body is treated as a payment made to the body and not to the member. Joint and several liability for amounts of tax (4) Each member of the body is jointly and severally liable for the RWT that the body is required to pay for as long as the member remains part of the body. Natural persons, partnerships, joint ventures, trustees (5) For the purposes of subsection (4),— (a) if the member is a natural person, their estate is liable after their death for an amount payable that remains unpaid: (b) if the body is a partnership, joint venture, or the trustees of a trust, a member continues as a member until the date the Commissioner is notified of a change of membership. Members and committees (6) Subsection (7) applies to an unincorporated body other than a partnership, joint venture, or the trustees of a trust, when the business of the body is managed by the members or a committee of its members. Responsibility of committee officers and members (7) If something is required to be done under the RWT rules by or on behalf of the body, each member holding office as president, chair, treasurer, secretary, or a similar office is jointly and severally responsible. In default, each member holding office bears the responsibility. Action taken by 1 officer or committee member is sufficient. Joint and several liability for actions required (8) If something is required to be done under the RWT rules by or on behalf of the body, each member is jointly and severally liable to do it. However, action taken by 1 member is sufficient. Subsection (7) overrides this subsection. Changes in membership (9) A change in membership of the unincorporated body has no effect for the purposes of the RWT rules. Subsection (5)(b) overrides this subsection. Some definitions (10) In this section,— member means a partner, joint venturer, a trustee, or a member of a body. Defined in this Act: amount , member , partner , partnership , pay , RWT , RWT exemption certificate , RWT rules , taxable activity , trustee , Compare: 2004 No 35 s NF 10 Section RE 30(10) partnership and partner : repealed, on 1 April 2008, by section 22(1) of the Taxation (Limited Partnerships) Act 2008 (2008 No 2).