Section RH 6 — Income Tax Act 2007: Calculating amounts of tax on failure to withhold

RH 6 Calculating amounts of tax on failure to withhold When this section applies (1) This section applies when a retirement scheme contributor or retirement savings scheme does not withhold an amount of tax for a retirement scheme contribution under section RH 2(4) . Calculation of amount (2) The amount is calculated using the formula— tax rate × contribution to scheme – tax already paid. 1 − tax rate Definition of items in formula (3) In the formula,— (a) tax rate is the rate of RSCT for the person set out in schedule 1, part D, clause 7 (Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe benefits): (b) contribution to scheme is the amount of the retirement scheme contribution received by the retirement savings scheme excluding the amount of tax: (c) tax already paid is any amount of tax for the contribution that has already been paid. Defined in this Act: amount , amount of tax , retirement savings scheme , retirement scheme contribution , retirement scheme contributor , RSCT Compare: 2004 No 35 s NEB 4(1) Section RH 6: inserted, on 1 April 2008, by section 545 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).