Section 350 — Social Security Act 2018: MSD may pay tax on income-tested benefit other than by tax deduction from source deduction payment

350 MSD may pay tax on income-tested benefit other than by tax deduction from source deduction payment (1) This section applies to a source deduction payment that is an instalment or a payment of an income-tested benefit. (2) MSD may, instead of making a tax deduction from the source deduction payment, pay to the Commissioner of Inland Revenue, at a time the Commissioner determines in consultation with MSD, an amount for income tax payable on that payment, that is calculated under subsection (3). (3) The amount for income tax payable on a source deduction payment is the amount of the tax deduction that would be made, at the rate determined under the appropriate specified provision, if the payment were increased by an amount that, after the tax deduction were made, would result in an amount equal to the source deduction payment. Compare: 1964 No 136 s 83A(1)–(3)