Section Sch50-“ 32L — Income Tax Act 2007: Cancellation of RWT exemption certificates

“ 32L Cancellation of RWT exemption certificates “ (1) The Commissioner may cancel a person’s RWT exemption certificate at any time, and notify any person of the fact of the cancellation, when— “ (a) the Commissioner reasonably believes the person no longer meets the requirements on which their exemption is based; or “ (b) the person did not meet the requirements on which their exemption was based and obtained the certificate through misleading information; or “ (c) the person should not have been provided with the certificate; or “ (d) the person’s exemption was based on a ground set out in section 32E(2)(i) or (j), and the evidence provided under section 32G— “ (i) shows the person did not meet the threshold; or “ (ii) is unsatisfactory; or “ (iii) is materially incorrect or misleading; or “ (e) the person is liable for income tax that remains unpaid by the due date for payment. “ (2) If the Commissioner cancels a certificate under subsection (1), the Commissioner must notify the person who must deliver the certificate to the Commissioner within a period of 5 days after the date of notification. The person must also comply with a request under section 32K(3) if asked by the Commissioner. “ (3) Despite subsection (1), if the Commissioner considers that a person referred to in subsection (1)(a) to (d) is a person to whom section 32G applies and who has a further basis of exemption apart from that set out in the certificate, the Commissioner must not cancel the certificate except to provide a substitute certificate that has immediate effect. “ (4) A person who receives a notice under subsection (2) must, within a period of 5 days after the date of receipt, notify all persons to whom they have shown the certificate for the purposes of obtaining an exemption under the RWT rules and from whom they expect to receive further payments of resident passive income of the cancellation. “ (5) The Commissioner must publish in the Gazette — “ (a) on or before 30 June in each tax year— “ (i) a list of all certificates cancelled in the previous tax year, other than a certificate held by a person before cancellation that was later reissued to the person; and “ (ii) a list of all certificates provided during the previous tax year to a person who had previously held a certificate, other than a certificate provided to a person who previously held a certificate that was cancelled; and “ (b) in April, July, October, and January (the month of publication )— “ (i) a list of all certificates cancelled during the 3-month period immediately before the month of publication, other than a certificate held by a person before cancellation that was later reissued to the person in the 3-month period; and “ (ii) a list of all certificates provided during the 3-month period immediately before the month of publication to a person who had previously held a certificate, other than a certificate provided to a person who previously in the 3-month period held a certificate that was cancelled. “ (6) The Commissioner may publish a list referred to in subsection (5) by electronic means at any time after the publication referred to in that subsection. “ (7) A person who is required to deliver an RWT exemption certificate to the Commissioner must deliver all original certificates provided to them by the Commissioner. “ (8) An RWT exemption certificate ceases to be valid on the 5th working day after the date of publication in the Gazette referred to in subsection (5). For a person who is notified of a cancellation by the Commissioner or by the previous holder of a certificate, a certificate ceases to be valid after a period of 5 working days from the date of notification. “ Compare: 2004 No 35 s NF 11(2)–(9)