Section RE 6 — Income Tax Act 2007: When obligation to withhold unreasonable

RE 6 When obligation to withhold unreasonable When this section applies (1) This section applies when a person ( person A ) who is a person listed in a paragraph in section 32E(2)(a) to (h) of the Tax Administration Act 1994— (a) receives an amount from another person ( person B ); or (b) makes a payment at person B’s request. No obligation if unreasonable (2) For the purposes of determining whether person A is required under section RE 4 to withhold RWT, the payment is treated as not consisting of resident passive income of person B to the extent to which— (a) person A could not reasonably be expected to be aware that the payment was resident passive income; or (b) for an amount that is a redemption payment, person A could not reasonably be expected to be aware of the amount that consisted of resident passive income. Defined in this Act: amount , pay , redemption payment , resident passive income , RWT , Compare: 2004 No 35 s NF 2(8)