Section Sch50-“ 120OE — Income Tax Act 2007: Interest paid on deposits in tax pooling accounts

“ 120OE Interest paid on deposits in tax pooling accounts “ (1) Interest paid by the Commissioner on an amount deposited in a tax pooling intermediary’s tax pooling account accrues to the benefit of the intermediary from the date of the deposit. “ (2) The interest referred to in subsection (1) is payable to the intermediary on the date the amount is credited to another account with the Commissioner, or on the date the amount is refunded to the intermediary. “ (3) A deposit in a tax pooling account is treated as tax paid by the intermediary for the purposes of calculating use of money interest, but for no other purpose. “ (4) Subsection (5) applies when a payment is made either by a tax pooling intermediary to their client, or by a client to their tax pooling intermediary, and the payment represents a difference between funds held in a tax pooling account for a period of time and an amount paid for the entitlement to the funds. “ (5) The payment is treated as— “ (a) a payment of interest to the person who derives the payment for the purposes of section CC 4 of the Income Tax Act 2007, the RWT rules, and the NRWT rules: “ (b) expenditure incurred in deriving the income of the person making the payment. “ Compare: 2004 No 35 ss MBA 5(5), (6), MBA 9 ” .