Section RE 7 — Income Tax Act 2007: When resident passive income paid to trustees

RE 7 When resident passive income paid to trustees Who this section applies to (1) This section applies when— (a) an amount is paid to a person ( person A ) who is acting as trustee for another person ( person B ) at the time; and (b) some or all of the amount is resident passive income other than a replacement payment under a share-lending arrangement; and (c) person A— (i) does not hold an RWT exemption certificate at the time of the payment; and (ii) is paid the amount in the conduct of a taxable activity carried on by them; and (iii) is not a nominee to whom section RE 8 applies. Obligation to withhold (2) At the time the payment is made and to the extent to which it has not already been withheld, person A must withhold RWT for the payment and pay it to the Commissioner. Relationship with section RE 9 (3) Section RE 9 overrides this section. Defined in this Act: amount , Commissioner , nominee , pay , replacement payment , resident passive income , RWT , RWT exemption certificate , share-lending arrangement , taxable activity , trustee , Compare: 2004 No 35 s NF 3(1), (2)