For the purposes of this Part of this Act, unless the context otherwise requires,—

For the purposes of this Part of this Act, dividends paid by any friendly society in relation to shares in that friendly society to its members shall be deemed to be interest and not dividends.

For the purposes of sections 327d(3), 327f, 327h, 327i, 327k and 327l of this Act, the term ‘specified dividends’ means dividends that are—

This Part of this Act shall apply notwithstanding anything in any other Part of this Act.

This Part of this Act shall apply to any amount paid on or after the 1st day of October 1989, being an amount (in this Part of this Act referred to as resident withholding income) that consists of—

“Provided that, for the purposes of each of the subparagraphs of paragraphs (a) and (b) of this subsection, where any amount is derived by a person (hereafter in this proviso referred to as ‘the trustee’) in that person’s capacity as trustee for any other person or persons and that amount is beneficiary income (as that term is defined in section 226(1) of this Act) that amount shall be deemed not to be derived by the trustee.

Subject to this section, where a person makes a payment which consists in whole or in part of resident withholding income, that person shall, at the time of making the payment, make a deduction of tax (in this Act referred to as resident withholding tax) therefrom—

“Provided that in no case shall the amount of resident withholding tax to be deducted be less than zero.

Where any company in any month pays in respect of its shares resident withholding income, being dividends that are a taxable bonus issue from which resident withholding income that company is required, in accordance with this Part of this Act, to deduct resident withholding tax, that company shall not make any deduction of resident withholding tax therefrom in accordance with subsection (1) of this section, but shall be liable to pay to the Commissioner an amount (which shall be treated as a deduction of resident withholding tax made from those dividends for the purposes of this Act) equal to the resident withholding tax that, but for this subsection, would have been required to be deducted and to pay that amount in the same manner in all respects as if it were the resident withholding tax that, but for this subsection, would have been required to be deducted.

Where any resident withholding tax deduction is required to be made in accordance with this Part of this Act in relation to any amount of resident withholding income and that resident withholding income is in a currency other than New Zealand currency, for the purposes of—

that resident withholding income shall be converted into New Zealand currency either at—

A person shall be liable to deduct resident withholding tax from any payment of resident withholding income only if—

Notwithstanding subsection (4)(b)(i) of this section, any person who makes a payment of resident withholding income, being interest, and—

shall be liable to deduct resident withholding tax from that payment only if and to the extent to which that payment exceeds (when aggregated with earlier or contemporaneous payments of resident withholding income being interest paid by that person in the year in which the time of payment falls) a total of $5,000.

Where any person (hereafter in this subsection referred to as the ‘first person’) makes or receives a payment which consists in whole or in part of resident withholding income and resident withholding tax has already been deducted by any person in accordance with this Part of this Act from that resident withholding income, the first person shall not be required to deduct resident withholding tax from the payment to the extent to which resident withholding tax has already been deducted.

Where any person (hereafter in this subsection referred to as the ‘first person’) in relation to any other person (hereafter in this subsection referred to as the ‘second person’)—

for the purposes only of determining the first person’s liability to make a deduction of resident withholding tax from that payment in accordance with this Part of this Act, that payment shall be deemed not to constitute resident withholding income if—

Where any person (hereafter in this subsection referred to as the ‘first person’), being a person to whom any of paragraphs (a) to (c) of section 327m(1) applies, in relation to any other person (hereafter in this subsection referred to as the ‘second person’),—

for the purposes only of determining the first person’s liability to make a deduction of resident withholding tax from that payment in accordance with this Part of this Act and without affecting the liability of the second person or any other person to make a deduction of resident withholding tax from that payment in accordance with this Part of this Act, that payment shall be deemed not to constitute resident withholding income if and to the extent that the first person could not reasonably be expected to be aware that the payment constituted resident withholding income.

Where—

the recipient of that payment shall (subject to this section and section 327c of this Act) at the time of receiving that payment make a deduction therefrom of the amount of the resident withholding tax or, as the case may be, the amount of the deficiency in that tax and shall pay to the Commissioner the amount of that deduction no later than the 14th day of the month following the month in which the payment is received.

Subsection (1) of this section shall not apply to require a recipient of a payment of resident withholding income to make a deduction of resident withholding tax where that recipient—

Where any person is required in accordance with this section to make a deduction of resident withholding tax from a dividend (not being a specified dividend), that resident withholding tax deduction shall for the purposes of this Part of this Act (including in particular but without limiting the generality of the foregoing sections 327f, 327h, 327i, 327k, and 327l of this Act) be treated as being a resident withholding tax deduction made in respect of a specified dividend.

Where any person is required in accordance with this section to make a deduction of resident withholding tax from resident withholding income, being dividends which are a taxable bonus issue, that person shall not make a deduction of resident withholding tax therefrom but shall be liable to pay to the Commissioner an amount (which shall be treated as a deduction of resident withholding tax for the purposes of this Act) equal to the resident withholding tax that, but for this subsection, would have been required to be deducted and to pay that amount in the same manner in all respects as if it were the resident withholding tax that, but for this subsection, would have been required to be deducted.

Subject to section 327c(6) of this Act, the provisions of this section shall not restrict the application of section 327c of this Act to require any person to make a deduction of resident withholding tax when making a payment, whether acting in the capacity of agent or trustee for another person or persons or otherwise howsoever.

All persons who estimate that they will be required by this Part of this Act to make resident withholding tax deductions of $500 or more in aggregate in relation to payments of interest during each month of any year, shall pay to the Commissioner the amount of all resident withholding tax deductions made during that year in accordance with this Part of this Act on a monthly basis, with the deductions made during any month being paid to the Commissioner no later than the 14th day of the following month.

Subject to subsections (3), (6), and (7) of this section, all persons who estimate in relation to any year that they will be required by this Part of this Act to make resident withholding tax deductions of less than $500 in aggregate in accordance with this Part of this Act in relation to payments of interest during each month of any year shall pay to the Commissioner the amount of all resident withholding tax deductions made during that year in accordance with this Part of this Act to the Commissioner in 2 instalments as follows:

If, as at the end of any month (hereafter in this subsection referred to as ‘the specified month’) in any income year, any person has made resident withholding tax deductions, in relation to payments of interest, of more than $500 in aggregate since the beginning of the last month (hereafter in this subsection referred to as ‘the month of prior payment’) during which that person was required in accordance with this section to pay to the Commissioner an amount of resident withholding tax deductions made in relation to payments of interest, that person shall pay to the Commissioner all resident withholding tax deductions made in relation to payments of interest since the beginning of the month of prior payment until the end of the specified month no later than the 14th day of the month following the specified month.

All persons who make resident withholding tax deductions in accordance with this Part of this Act in relation to payments of dividends shall pay all such deductions to the Commissioner on a monthly basis, with the deductions made during any month being paid to the Commissioner no later than the 14th day of the following month.

Every person who at any time is required to make a deduction of resident withholding tax shall, at the time at which such deduction was (or, in the case of a failure to make such a required deduction, would have been) required to be paid to the Commissioner or within such further time as the Commissioner may allow, deliver to the Commissioner a statement in a form authorised by the Commissioner showing such details in relation to those deductions of resident withholding tax as the Commissioner may prescribe.

Where any person (not being a person who continues to hold a valid certificate of exemption issued to that person, notwithstanding the cessation in carrying on a taxable activity) in any month—

that person shall pay to the Commissioner all resident withholding tax deductions made by that person with respect to that taxable activity and not earlier paid to the Commissioner no later than the 14th day of the following month.

Where any person in any month ceases to be a person holding a valid certificate of exemption issued to that person (not being a person who continues to be required to make resident withholding tax deductions by virtue of making payments in the course of or furtherance of a taxable activity notwithstanding such cessation in holding a valid certificate of exemption), that person shall pay to the Commissioner all resident withholding tax deductions made by that person and not earlier paid to the Commissioner no later than the 14th day of the following month.

Where any person (hereafter in this subsection referred to as the ‘first person’) required to make a deduction of resident withholding tax from any payment of—

to any person (hereafter in this subsection referred to as the ‘second person’) has failed to make such a deduction or has failed to make it in full, the first person may (except to the extent to which a deduction of resident withholding tax has already been made by any other person to correct the deficiency) either—

Where a person deducts from any payment of—

on account of resident withholding tax an amount in excess of the amount of resident withholding tax required to be deducted in accordance with this Part of this Act due to an error on the part of that person, that person may pay the excess to the recipient of the payment of such interest or dividends before the date upon which the resident withholding tax deduction is required to be paid to the Commissioner, which excess shall thereupon cease to be for the purposes of this Act to be a resident withholding tax deduction, and in that event shall (where any resident withholding tax deduction certificate including the amount of the excess has been given to the recipient), give to that recipient an amended resident withholding tax deduction certificate.

Where a person deducts from any payment of dividends (other than specified dividends) on account of resident withholding tax an amount in excess of the amount of resident withholding tax required to be deducted in accordance with this Part of this Act due to an error on the part of that person, that person may pay the excess to the recipient of the payment of the dividends before the date upon which the resident withholding tax deduction is required to be paid to the Commissioner, which excess shall thereupon cease to be for the purposes of this Part of this Act a resident withholding tax deduction, and in that event shall give to that recipient an amended shareholder dividend statement for the purposes of section 394zzb of this Act.

Where a person deducts from any payment on account of resident withholding tax an amount in excess of the amount of resident withholding tax required to be deducted in accordance with this Part of this Act due to an act or omission on the part of the recipient of that payment, the person shall pay the full amount of the resident withholding tax deducted to the Commissioner in accordance with section 327e of this Act, and shall, upon such payment, not be liable to refund the amount of that excess to the recipient of that payment or any other person.

Where—

the Commissioner shall, subject to this section, pay by way of refund to the person deriving the amount from which the deduction was made an amount equal to that excess.

Any person who becomes entitled to a refund under this section may make an application therefor and any such application shall be in such form as may be approved by the Commissioner.

The Commissioner shall not pay a refund under this section unless the Commissioner receives such evidence as the Commissioner considers necessary that the requirements of subsection (1) of this section have been met.

Where any amount (hereafter in this subsection referred to as the ‘amount due’) is due to be paid to the Commissioner in accordance with any provision of this Act by any person to whom any refund is payable at that time in accordance with this section, the Commissioner may apply the refund in satisfying (so far as that refund extends) the obligation of the person to pay the amount due.

Where the Commissioner is satisfied that any amount refunded to a person under this section is in excess of the amount properly refundable, the Commissioner may recover the amount of the excess in the same manner, with any necessary modifications, as if it were income tax payable by that person due,—

All money payable by the Commissioner in accordance with this section shall be paid without further appropriation than this section.

Except as provided in this section, every person who makes a deduction of resident withholding tax from resident withholding income, being either—

paid to or derived (in the case of a deduction of resident withholding tax made in accordance with section 327d of this Act) by any other person shall prepare a resident withholding tax deduction certificate in such form as the Commissioner may approve and containing the information set out in subsection (6) of this section.

Every person (hereafter in this section referred to as the ‘the payer’) who is required to prepare a resident withholding tax deduction certificate in respect of any amount of resident withholding income paid to or derived (in the case of a deduction of resident withholding tax made in accordance with section 327d of this Act) by any other person (hereafter in this section referred to as the ‘recipient’) shall, at the discretion of the payer, either—

and in either case shall provide the tax deduction certificate to the recipient not later than the 20th day of May following the end of the relevant year.

Notwithstanding the provisions of subsection (2) of this section, the recipient may at any time during the relevant year request the payer to prepare and provide a resident withholding tax deduction certificate in relation to any deduction of resident withholding tax made during that year if the financial arrangement in relation to which the deduction of resident withholding tax was made has matured, been remitted, or been disposed of by the recipient, and in such event the payer shall prepare the tax deduction certificate and provide it to the recipient not later than 20 working days after the receipt by the payer of the request:

“Provided that in no case shall the payer be obliged to provide a tax deduction certificate by virtue of this subsection before the 20th day of May 1990 except where the Commissioner so requires.

Notwithstanding the provisions of subsection (2) of this section, where any person (not being a person who continues to hold a valid certificate of exemption issued to that person notwithstanding the cessation in carrying on a taxable activity) in any month—

that person shall prepare and provide to the recipients any resident withholding tax deduction certificates required to be prepared by that person with respect to that taxable activity not later than the 20th day of the following month.

Notwithstanding the provisions of subsection (2) of this section, where any person in any month ceases to be a person holding a valid certificate of exemption issued to that person (not being a person who continues to be required to make resident withholding tax deductions by virtue of making payments in the course of or furtherance of a taxable activity notwithstanding such cessation in holding a valid certificate of exemption) that person shall prepare and provide to the recipients any resident withholding tax deduction certificates required to be prepared by that person not later than the 20th day of the following month.

Every resident withholding tax deduction certificate prepared in accordance with this section shall include the following information:

Notwithstanding any other provision of this section, no person shall be required to prepare and provide a resident withholding tax deduction certificate with respect to resident withholding income, being interest, paid to or derived (in the case of a deduction of resident withholding tax made in accordance with section 327d of this Act) by any recipient in any year if the total amount of resident withholding income, being interest, paid to or derived (in the case of a deduction of resident withholding tax made in accordance with section 327d of this Act) by that recipient does not exceed in total $20 for the relevant year, unless the recipient gives notice in writing to the payer requesting such a certificate, in which case the certificate shall be prepared and provided to the other person within 20 working days of receipt of that notice.

Every resident withholding tax deduction certificate shall be retained by the person to whom it is provided for a period of 3 years after the end of the year to which it relates, unless the Commissioner otherwise permits.

Where any resident withholding income is paid to or derived (in the case of a deduction of resident withholding tax made in accordance with section 327d of this Act) by 2 or more persons jointly, any payer shall be entitled to treat those persons as one person and accordingly issue only one resident withholding tax deduction certificate in the name of any one or more of those persons who may be nominated by those persons for this purpose or, in the absence of any such nomination, in the name of those persons jointly.

For the purposes of this section, a resident withholding tax deduction certificate shall be deemed to have been provided to a recipient where the certificate—

The Commissioner may, in the Commissioner’s discretion, with regard to resident withholding tax deductions made in the year commencing on the 1st day of April 1989 where the Commissioner is satisfied that the person (or class of persons) is unable to comply with the requirements of this section, vary the requirements of this section in relation to any person (or class of persons) in any one or more of the following ways:

and in every such case the section shall apply as so varied.

Every person who in any year makes a deduction of resident withholding tax (or is required by this Part of this Act to make such a deduction and fails to do so) from resident withholding income, being either—

paid to or derived (in the case of a deduction of resident withholding tax made in accordance with section 327d of this Act) by any other person, shall, by not later than the 31st day of May following the end of that year, furnish to the Commissioner, in such form as the Commissioner may prescribe, such information as the Commissioner may require in relation to that deduction.

Every person (hereafter in this subsection called the ‘first person’) who is required to furnish a statement in accordance with subsection (1) of this section shall, if requested by the Commissioner in relation to any year and in such form as the Commissioner may approve, provide the Commissioner with—

Where any person is required to provide any information to the Commissioner pursuant to subsection (2) of this section, that person shall provide such information to the Commissioner—

Notwithstanding any provisions of this section, where any person in any month of any year—

that person shall provide to the Commissioner the information required to be provided by virtue of the application of this section as if the end of that month were the end of that year and within 40 working days after the end of that month.

Notwithstanding the provisions of this section, where any person in any month in any year ceases to be a person holding a valid certificate of exemption issued to that person (not being a person who continues to be required to make resident withholding tax deductions by virtue of making payments in the course of or furtherance of a taxable activity notwithstanding such cessation in holding a valid certificate of exemption), that person shall provide to the Commissioner the information required to be provided by virtue of the application of this section as if the end of that month were the end of the year and within 40 working days after the end of that month.

The Commissioner may vary any of the requirements of this section in relation to any person or class of persons in such cases and to such extent as the Commissioner thinks fit and in every such case this section shall apply as so varied.

Any payer who in any year commencing on or after the 1st day of April 1990 makes a payment of resident withholding income, being interest,—

shall, in the return of income that the payer is required under this Act to furnish in relation to that year, provide the Commissioner with the following information in relation to each person (hereafter in this section called ‘the recipient’) to whom such a payment was made in that year:

Every recipient who receives from any payer a payment of resident withholding income, being interest, in respect of which no resident withholding tax deduction is required to be made because the payment was not made by the payer in the course of or furtherance of a taxable activity or because of the application of section 327c(5) of this Act shall, within 10 working days of receiving any request from the payer, provide the payer with the recipient’s tax file number.

Where a person derives an amount, being either—

from which any amount has been deducted on account of resident withholding tax, the interest or specified dividends derived shall, for the purposes of this Act, include such amount deducted.

Subject to this section, where any resident withholding tax, not being additional tax or penal tax, has been deducted from any amount, being either—

derived by any person in any income year, the Commissioner shall credit the resident withholding tax deducted in payment successively of—

and shall refund to the person an amount equal to the excess of the resident withholding tax deducted over the amounts which are so credited in accordance with Part XIV of this Act as if it were tax paid in excess.

Any credit of tax to which a person is entitled under this section shall be credited so far as it extends, after allowing for any credit of tax allowable in accordance with section 293 and section 394ze of this Act.

The Commissioner shall not allow a credit of tax or pay a refund in accordance with subsection (2) of this section with respect to any resident withholding tax deducted, unless the Commissioner has received—

Where the Commissioner is satisfied that the amount of any tax credit or refund claimed in accordance with this section is in excess of the amount properly allowable in accordance with this section, the Commissioner may refuse to allow the credit or make the refund to the extent of the excess.

Where the Commissioner is satisfied that any tax credit allowed is in excess of the amount properly allowable in accordance with this section (hereafter referred to in this subsection as the ‘excess tax credit’), the Commissioner may recover the excess tax credit from the person to whom the excess tax credit was allowed in the same manner, with any necessary modifications, as if it were income tax payable by that person under this Act and the amount of the excess tax credit shall be due,—

For the purposes of giving effect to this section, the Commissioner may at any time alter any assessment or any determination, notwithstanding anything in section 25 of this Act.

In this section,—

Where any resident withholding tax deduction is made by a company in accordance with this Part of this Act from a dividend (not being a specified dividend) paid in relation to shares issued by that company, that deduction shall be deemed to be a dividend withholding payment credit attached to that dividend by the company and that company shall be deemed to be a dividend withholding payment account company for the purposes of the following provisions of this Act:

Where any resident withholding tax deduction is in any year made by a company in accordance with this Part of this Act from a dividend (not being a specified dividend) in relation to shares issued by that company, that company shall provide to the Commissioner such information as the Commissioner may require in relation to that deduction, and such information shall be provided—

Where any company pays in any year any dividend (not being a specified dividend) in relation to its shares from which dividend any resident withholding tax is deducted in accordance with this Part of this Act, that company shall at the time of paying that dividend complete such information in relation to that dividend as the Commissioner may require and such information shall,—

Any of the following persons may apply to the Commissioner to be issued with a certificate of exemption:

Any application under subsection (1) of this section shall be made in writing in the form prescribed by the Commissioner, and shall state which paragraph of subsection (1) of this section applies to the applicant (the requirements of the paragraph specified in the application being referred to hereafter in this section and in section 327o of this Act as the ‘basis of exemption’), and shall be accompanied by a declaration made by the applicant or any duly authorised officer of the applicant stating that the applicant comes within the basis of exemption.

An applicant for a certificate of exemption shall provide such further information as the Commissioner may require in relation to the application, including any books of account or other accounting information or records of or relating to the applicant.

Where the Commissioner has received an application under subsection (1) of this section, and any further information that may be required under subsection (3) of this section in relation to that application, and the Commissioner is satisfied that the applicant is a person to whom subsection (1) of this section applies, the Commissioner shall issue a certificate of exemption to the applicant for such period as the Commissioner determines (if any), which certificate shall—

In the event that any certificate of exemption issued is lost or destroyed, on receipt of satisfactory evidence of that fact the Commissioner may issue a replacement certificate of exemption.

Any person to whom is issued a certificate of exemption on the basis that paragraph (g) of subsection (1) of this section applies to that person shall, within 3 months after the end of the accounting year last referred to in that paragraph, furnish to the Commissioner evidence to the satisfaction of the Commissioner, of that person’s total assessable income before allowable deductions derived by that person during the relevant accounting year, and shall provide such supporting information or further evidence as the Commissioner may require for the purposes of this section and section 327o of this Act.

In the event that any person to whom subsection (6) of this section applies has during the relevant 12 month period derived less than $2,000,000 of total assessable income before allowable deductions, that person (hereafter in this subsection referred to as the ‘first person’) shall be chargeable with additional tax in relation to amounts received or derived by the first person that would, had the first person not held that certificate of exemption, have been deducted under this Part of this Act from payments made by any other person, and section 327u of this Act shall apply to the first person as if the first person had failed to make a deduction under this Part of this Act, and as if that default had occurred on each day that the first person received or derived a payment from which a deduction would otherwise have been made under this Part of this Act.

When calculating the total assessable income of any company for the purposes of paragraph (f) of subsection (1) of this section, being a company that was for the relevant year pursuant to section 191 of this Act, a member of a group of companies, the total assessable income before allowable deductions of that company is deemed to include all such assessable income in that year of any other members of that group.

When calculating the estimated total assessable income of any company for the purposes of paragraph (g) of subsection (1) and subsections (6) and (7) of this section, being a company which anticipates that it will be a member of a group of companies pursuant to section 191 of this Act for the relevant 12-month period, the estimated total assessable income before allowable deductions in that period of that company is deemed to include the estimated total assessable income of all other companies in that group.

For the purposes of paragraphs (f) and (g) of subsection (1) and subsections (6), (7), (8), and (9) of this section, when calculating the total assessable income of any company, there shall be excluded from the total assessable income calculations any assessable income derived by that company (or derived by another company in the same group of companies) from any transaction or series of related or connected transactions with another company in the same group of companies.

The Commissioner may, in the Commissioner’s discretion,—

notwithstanding the failure of the applicant for the certificate or the holder of the certificate (as the case may be) to satisfy the basis of exemption in paragraph (f) of subsection (1) of this section or to derive during the relevant 12 month period referred to in subsection (7) of this section total assessable income before allowable deductions of at least $2,000,000, where the Commissioner is satisfied that the failure is solely as a consequence of extraordinary circumstances that are—

Notwithstanding any other provision of this section, the Commissioner may, in the Commissioner’s discretion, at any time issue to a person, being a person to whom at that time subsection (1) of this section does not apply, a certificate of exemption which shall be valid until the date of termination (if any) specified in the certificate where the Commissioner is satisfied that in the period of validity of any certificate of exemption issued to that person either—

“Provided that the Commissioner shall not issue to any person a certificate of exemption in accordance with this subsection unless the Commissioner has received from that person an application in writing in the form prescribed by the Commissioner, which application shall be accompanied by—

Where any certificate of exemption issued in accordance with subsection (12) of this section ceases to be a valid certificate of exemption at the date of termination specified in the certificate and is not immediately thereafter replaced by a valid certificate of exemption in substitution, the provisions of section 327o of this Act shall apply as if the certificate were on the date of termination cancelled in accordance with that section, and such cancellation on that date notified by the Commissioner to the holder of the certificate.

No person (hereafter in this subsection referred to as ‘the first person’) issued with a certificate of exemption in accordance with subsection (12) of this section shall notify any other person that the first person holds that certificate of exemption without providing the other person with a copy of that certificate of exemption.

For the purposes of this section,—

Where any body that carries on any taxable activity is issued with a certificate of exemption in relation to the carrying on of that taxable activity,—

Notwithstanding anything in this section, every member is liable jointly and severally with any other members for all resident withholding tax payable by the body while that member remains a member of that body, ana, where that member is an individual, after that member’s death, that member’s estate shall be severally liable in due course of administration for such resident withholding tax payable as far as it remains unpaid:

“Provided that where any such body is a partnership, joint venture, or the trustees of a trust, a member shall not cease to be a member for the purposes of this section until the date on which any change of membership of that body is notified in writing to the Commissioner.

For the purposes of this Part of this Act, any notice served in accordance with this Part of this Act which is addressed to a body by the name in which it is issued with a certificate of exemption registered pursuant to this Act, shall be deemed to be served on that body and on all members of that body.

Subject to subsection (6) of this section, where anything is required, to be done pursuant to this Part of this Act by or on behalf of any body, it shall be the joint and several liability of all members to do any such thing:

“Provided that any such thing done by one member shall be sufficient compliance with any such requirement.

Notwithstanding anything in this section, but subject to subsection (3) of this section, where anything is required to be done pursuant to this Part of this Act by or on behalf of any body, not being a partnership, joint venture, or trustees of a trust, the affairs of which are managed by its members or a committee or committees of its members, it shall be the joint and several responsibility of—

“Provided that if it is done by any official or committee member, referred to in paragraph (a) or paragraph (b) of this subsection, that shall be sufficient compliance with any such requirement.

Where any person who holds a certificate of exemption issued in accordance with section 327m of this Act ceases to be a person who comes within the basis of exemption that was specified in that person’s application for that certificate, that person shall, within 5 working days after the first day upon which that person became aware of that fact,—

The Commissioner may cancel any person’s certificate of exemption at any time in the following circumstances:

and in each such event the Commissioner shall notify the person of the fact that that person’s certificate of exemption has been cancelled and that person shall, within 5 working days of receiving the notification, deliver up that person’s certificate of exemption to the Commissioner, if not delivered up previously, and shall, if requested by the Commissioner, provide the Commissioner with the full names and last known addresses of all persons to whom that person has shown the certificate of exemption for the purpose of obtaining an exemption under this Part of this Act:

“Provided that, except in the circumstance specified in paragraph (d) of this subsection, in any case where the Commissioner is satisfied that the person is a person to whom section 327m(1) of this Act applies in relation to a further basis of exemption other than that specified in the application made for the certificate of exemption, the Commissioner shall not cancel the certificate of exemption except to issue with immediate effect a certificate of exemption in substitution therefor.

The Commissioner may inform any persons of the fact of cancellation of any certificate of exemption at any time.

Any person who receives notification from the Commissioner that that person’s certificate of exemption has been cancelled shall, within 5 working days of receipt of that notification, inform in writing all persons to whom that person has shown that certificate of exemption for the purpose of obtaining an exemption under this Part of this Act and from whom that person expects to receive further payments of resident withholding income, of the cancellation of that certificate.

The Commissioner shall publish in the Gazette—

Where any person is required to deliver up a certificate of exemption held by that person, that person shall deliver up all original copies of that certificate of exemption issued to that person by the Commissioner.

A certificate of exemption shall cease to be a valid certificate of exemption on the 5th working day after the date of publication of the cancellation of that certificate in the Gazette, and, in relation to persons who are informed by the Commissioner or the previous holder of that certificate that a certificate of exemption has been cancelled, a certificate of exemption shall cease to be a valid certificate of exemption as from the day which is 5 working days after the date the person is so informed.

For the purposes of this section, the term ‘records’ has the same meaning as in section 428 of this Act.

Every person required, in accordance with this Part of this Act, to make deductions of resident withholding tax from resident withholding income paid to or derived (in the case of a deduction of resident withholding tax made in accordance with section 327d of this Act) by any other person shall keep in English proper records sufficient to enable the Commissioner to ascertain readily at any time the following information in relation to each such amount of resident withholding income:

Every person liable in accordance with this Act to deduct resident withholding tax from any amount paid to or derived (in the case of a deduction of resident withholding tax made in accordance with section 327d of this Act) by any other person had that other person not held a valid certificate of exemption issued pursuant to paragraphs (h) and (i) of section 327m(1) of this Act shall keep in English proper records in relation to such amount sufficient to enable the Commissioner to ascertain readily at any time the following information in relation to each such amount—

Every person required to keep records by virtue of the application of subsections (2) and (3) of this section shall record at the end of each year, in relation to each recipient to whom interest or specified dividends were paid by that person during that year, sufficient information to enable the Commissioner to ascertain readily—

Every person required by section 327j or section 327zd of this Act to provide information to the Commissioner shall keep in English proper records to allow verification readily by the Commissioner of such information.

Every person required by this section to retain records shall—

The Commissioner may, in the Commissioner’s discretion, on application made in writing in that behalf, authorise any person, by notification in writing, to keep such records required by this section as the Commissioner determines in a language other than English.

The amount of every resident withholding tax deduction made in accordance with this Part of this Act by any person shall be held in trust for the Crown, and any amount so held in trust shall not be property of the person liable to execution, and, in the event of the bankruptcy or liquidation of the person or an assignment for the benefit of the person’s creditors, shall remain apart, and form no part of the estate in bankruptcy, liquidation, or assignment.

The provisions of section 365(2) of this Act shall apply to any amount of resident withholding tax deduction made in accordance with this Part of this Act by any person as if it were a ‘tax deduction’ to which that section refers and as if the person were ‘the employer’ to which that section refers.

This section shall apply notwithstanding anything in any other Act, and in particular section 308 of the Companies Act 1955 shall apply subject to this section.

Where a person fails wholly or in part to make any tax deduction in accordance with that person’s obligations under this Part of this Act, or is liable to pay any sum to the Commissioner under this Part of this Act, an amount equal to the total for the time being unpaid to the Commissioner in respect of that tax deduction or that sum (including any additional tax or penal tax), and in respect of any judgment obtained therefor (including any costs, fees, or expenses included in the judgment or otherwise payable by the person to the Commissioner in respect thereof) shall be a charge on all the real and personal property of the person.

Subject to subsection (3) of this section, the provisions of section 367 of this Act (except subsection (11)) shall apply to every charge created by this section as if that charge were a charge created by section 367(2) of this Act.

Any amount secured by a charge under this section shall rank in any liquidation or receivership of a person that is a company, or any bankruptcy or assignment for the benefit of creditors of a person that is an individual, equally with any amounts secured under section 367 of this Act.

Where a person fails to make any resident withholding tax deduction in accordance with that person’s obligations under this Part of this Act, the amount in respect of which default has been made shall constitute a debt payable by that person to the Commissioner, and shall be deemed to have become due and payable to the Commissioner on the day on which it would have been due to be paid to the Commissioner had the deduction correctly been made.

The right of the Commissioner to recover from the person the amount in respect of which default has been made shall be in addition to any right of the Commissioner to recover from the recipient of that amount any income tax payable by that recipient in respect of the resident withholding income of which that amount formed part; and nothing in this Part of this Act shall be construed as preventing the Commissioner from taking such steps as the Commissioner thinks fit to recover that amount from both of those persons concurrently, or from recovering that amount wholly from one of those persons, or partly from one and partly from the other of those persons.

Notwithstanding subsections (1) and (2) of this section, where and to the extent to which any person (hereafter in this subsection referred to as ‘the first person’) otherwise liable to make payment of any amount in accordance with this section can satisfy the Commissioner that any other person has made a deduction of resident withholding tax from the resident withholding income in relation to which the first person failed to make such a deduction, for the purposes of this section and section 327r of this Act only in determining any liability of the first person under this section or section 327r of this Act, that deduction made by the other person shall be deemed to be made by the first person.

The Commissioner may make an assessment of any amount that, in the Commissioner’s opinion, any person is liable to account for or pay to the Commissioner under this Part of this Act, and any person who is so assessed shall be liable to pay the amount so assessed, except so far as that person establishes on objection that the assessment is excessive or that that person is not liable to account for or pay the amount so assessed.

Sections 23, 25, 26, 27, 28, and 29 of this Act shall apply, so far as may be, with respect to every assessment made under subsection (1) of this section, as if—

An assessment made under this section shall be subject to objection in the same manner as an assessment of income tax levied under section 38 of this Act, and Part III of this Act shall apply, so far as may be, to an objection to an assessment made under this section as if the terms ‘income tax’ and ‘tax’ used in that Part included an amount assessed under subsection (1) of this section and as if the term ‘taxpayer’ used in that Part included a person who is assessed under subsection (1) of this section.

Where—

that person shall, on the expiry of the day on which that failure occurs, be liable, without conviction, in addition to any other penalty to which that person may be liable, to pay to the Commissioner, by way of additional tax, an amount equal to—

For the purposes of subsection (1)(b) of this section a resident withholding tax deduction shall be deemed to have been made if and when payment is made of the net amount of any resident withholding income.

Notwithstanding subsection (1) of this section, where and to the extent to which, in relation to any failure to make a resident withholding tax deduction or pay the amount of the tax deduction to the Commissioner, any person (hereafter in this subsection referred to as ‘the first person’) otherwise liable to pay an amount by way of additional tax in accordance with this section can satisfy the Commissioner that any other person has made a deduction of resident withholding tax from the resident withholding income in relation to which that failure occurred or has paid to the Commissioner an amount of resident withholding tax deducted from the resident withholding income in relation to which that failure occurred (as the case may be), for the purposes of this section only in determining any liability of the first person to additional tax, that deduction or payment (as the case may be) made by the other person shall be deemed to have been made by the first person.

Any penalty imposed under this section shall for all purposes be deemed to be of the same nature as the amount or part thereof in respect of which it is imposed, and shall be recoverable accordingly, but shall not give rise to any additional credit under section 327k(2) of this Act or any additional dividend withholding payment credit.

Subject to this Part of this Act, the other Parts of this Act shall apply with respect to the amount of any penalty imposed under this section as if it were additional tax imposed under section 398(2) of this Act and as if the person liable to pay the penalty tax were the taxpayer.

Without limiting the application of section 416 or section 416a of this Act, it is hereby declared that every person commits an offence against this Act who—

For the purposes of subsection (1)(b) of this section a tax deduction shall be deemed to have been made if and when payment is made of the net amount of any resident withholding income, and the amount of the tax deduction shall be deemed to have been applied for a purpose other than the payment thereof to the Commissioner if the amount of the tax deduction is not paid to the Commissioner by the due date for payment:

“Provided that no person shall be convicted of an offence under paragraph (a) or paragraph (b) of subsection (1) of this section if that person satisfies the Court that the amount of the tax deduction has been accounted for, and that the failure to account for it within the prescribed time was due to illness, accident, or other cause beyond that person’s control.

Notwithstanding paragraph (a) of subsection (1) of this section, no person shall be convicted of an offence under paragraph (a) of subsection (1) of this section where the failure to make a deduction results from that person, on reasonable grounds, concluding that that person was not making a payment in the course of or furtherance of a taxable activity.

Where—

that person shall be chargeable by way of penalty, in addition to any other penalty to which that person may be liable, with an additional amount (in this section referred to as penal tax) not exceeding an amount equal to treble the amount in respect of which default has been made (in this section referred to as the ‘deficient deduction’).

For the purposes of subsection (1)(b) of this section, a resident withholding tax deduction shall be deemed to have been made if and when payment is made of the net amount of any resident withholding income, and the amount of the tax deduction shall be deemed to have been applied for a purpose other than the payment thereof if the amount of the tax deduction is not paid to the Commissioner by the due date for payment:

“Provided that no person shall be chargeable with penal tax under subsection (1) of this section if that person satisfies the Commissioner that the amount of the tax deduction has been accounted for, and that that person’s failure to account for it within the prescribed time was due to illness, accident, or other cause beyond that person’s control.

Penal tax imposed by this section shall for all purposes be deemed to be of the same nature as the deficient deduction and shall be recoverable accordingly, but shall not give rise to any additional credit under section 327k(2) of this Act or any additional dividend withholding payment credit.

Subject to this Part of this Act, the other Parts of this Act, as far as they are applicable and with any necessary modifications, shall apply with respect to all penal tax imposed under this section as if—

Where a resident tax withholding deduction is required to be made under this Part of this Act, any agreement not to make the tax deduction in accordance with this Part of this Act shall be void.

Where any person at any time—

that person shall, notwithstanding any other provision of this Part of this Act, be relieved from that obligation to provide the Commissioner with that tax file number.

No person shall be liable to pay any amount to the Commissioner by virtue of any of the provisions of this Part of this Act where, in relation to any payment or (in any case where that person is acting as agent or trustee for another person) receipt, that person—

Where any person has, by virtue of the application of this section, been relieved from liability under this Part of this Act, for the purposes only of determining any liability of that person under this Part of this Act, the payment or (in any case where that person is acting in relation to that receipt as agent or trustee for any other person) receipt in question shall be deemed to be derived by a person not resident in New Zealand.

Where any amount has been deducted by way of resident withholding tax deduction under this Part of this Act from any payment, the amount so deducted—

Where, in relation to any year commencing on or after the 1st day of April 1990,—

the exempt person shall, in the return of income which that person is required under this Act to furnish in relation to that year, provide the Commissioner with the following information in relation to each such other person (hereafter in this section called ‘the non-exempt person’) and each such acquisition or disposition made during that year:

“Provided that, except where the Commissioner otherwise requires, the information specified in paragraphs (d), (e), (f), (g), and (h) of this subsection may, with respect to each such non-exempt person and that year, be provided in the form of—

Every non-exempt person who enters into any acquisition or disposition of the type specified in paragraphs (a) and (b) of subsection (1) of this section and who has a tax file number shall, within 10 working days of receiving any written request from the exempt person, provide the exempt person with the non-exempt person’s tax file number.

Where any exempt person is not required under this Act to furnish a return of income in relation to any income year during which is made an acquisition or disposition to which subsection (1) of this section applies, that exempt person shall furnish to the Commissioner the information described in subsection (1) of this section in such form as the Commissioner may prescribe and within 2 months after the end of that income year.

Subject to this Part of this Act, the other Parts of this Act shall apply with respect to every amount that any person is liable to account for or pay to the Commissioner under this Part of this Act as if the amount were income tax and, in particular without limiting the generality of the foregoing, section 99(3) of this Act shall apply as if the term ‘assessable income’ were replaced by the words ‘liability to resident withholding tax’ and the Commissioner were specifically entitled to have regard to such resident withholding tax as, in the Commissioner’s opinion, the person referred to in section 99(3) of this Act would have, or might be expected to have, or would in all likelihood have, been liable to pay if the arrangement referred to in section 99(3) of this Act had not been made or entered into.

Any person (hereafter in this section called the ‘payer’) who in any year commencing on or after the 1st day of April 1992 is required to make a deduction of resident withholding tax in respect of any amount of resident withholding income paid to or derived (in the case of a deduction of resident withholding tax made in accordance with section 327d of this Act) by any other person (hereafter in this section called ‘the recipient’) shall in such form and at such time as the Commissioner may require, provide the Commissioner with the following information in relation to each recipient:

Every recipient who receives resident withholding income in respect of which a resident withholding tax deduction is required to be made by a payer and who has a tax file number shall, within 10 working days of receiving any written request from the payer, provide the payer with the recipient’s tax file number.

The Commissioner, in the Commissioner’s discretion, may exempt any person or persons from any or all of the requirements to furnish information to the Commissioner under this section and in the case of any such exemption this section shall apply subject to that exemption.”