46 Commissioner’s right to withhold payments

(1)

Subject to this section, if the Commissioner is required to refund an amount to a registered person under section 19C(8) or section 20(5), the Commissioner shall refund the amount—

(a)

except when paragraph (b) applies, not later than 15 working days following the day on which the registered person’s return was received by the Commissioner; or

(b)

the day after the working day on which the Commissioner—

(i)

determines the amount is refundable, after first having—

(A)

investigated the circumstances of the return in accordance with subsection (2); or

(B)

reviewed the information requested in accordance with subsection (2); and

(ii)

is satisfied that the registered person has complied with the person’s tax obligations.

(1B)

For the purposes of subsections (1)(a), (4)(a), and (5), for a non-resident person who is registered under section 54B, the reference to a 15-day period is treated as a reference to a 90-day period following the day on which the registered person’s return was received by the Commissioner.

(2)

If the Commissioner is not satisfied with a return made by a registered person, the Commissioner—

(a)

may investigate the circumstances of the return:

(b)

may request the registered person to provide further information concerning the return.

(3)

If a registered person fails to provide a return for any taxable period as required by this Act, the Commissioner may withhold payment—

(a)

of any tax otherwise refundable under this Act or the Tax Administration Act 1994; or

(b)

of any interest payable under Part 7 of the Tax Administration Act 1994—

until the registered person complies with the requirement.

(4)

The Commissioner must give a request for information concerning a return under subsection (2)—

(a)

within a period of 15 working days following the day on which the return is received by the Commissioner (in the case of an initial request for information); and

(b)

within a period of 15 working days following the date of receipt of any information previously requested by the Commissioner (for subsequent requests for information).

(5)

The Commissioner must notify the registered person—

(a)

of the Commissioner’s intention to investigate the circumstances of the return under subsection (2); and

(b)

of the Commissioner’s intention to withhold payment under subsection (3)—

within 15 working days following the day on which the return is received by the Commissioner.

(6)

If, but for this subsection, a registered person would be entitled to an amount as a refund under section 19C(8) or 20(5) or 45 or 78B(5)(c) or under the Tax Administration Act 1994, or as a payment of interest under Part 7 of the Tax Administration Act 1994, the Commissioner may apply the amount, in accordance with a request under section 173T of the Tax Administration Act 1994 or in the absence of a request in such order or manner as the Commissioner may determine, in payment of—

(a)

tax that is payable by the person:

(b)

an amount that is payable by the person under another Inland Revenue Act.

(7)

If, but for this subsection, a person who is a specified agent of an incapacitated person, as those terms are defined in section 58(1), would be allowed an amount as a deduction under section 20(3) by virtue of section 58(1C), the Commissioner may apply the amount in payment of—

(a)

tax that is payable by the incapacitated person:

(b)

an amount that is payable by the incapacitated person under another Inland Revenue Act.

(8)

[Repealed]

(9)

[Repealed]

Section 46: substituted, on 26 July 1996 (applying with respect to tax obligations, liabilities, and rights that are to be performed under or arise in relation to supplies made in respect of taxable periods commencing on or after 1 April 1997 (unless necessary for the enforcement of other provisions in this Act)), by section 13(1) of the Goods and Services Tax Amendment Act 1996 (1996 No 59).

Section 46(1B): inserted, on 1 April 2014, by section 136 of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).

Section 46(1B): amended (with effect on 1 April 2014), on 30 June 2014, by section 194 of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).

Section 46(6): substituted, on 25 November 2003 (applying to refunds, interest and deductions relating to supplies made in taxable periods beginning on or after 1 April 2002), by section 161(1) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).

Section 46(6): amended, on 20 May 2010, by section 51 of the Taxation (Budget Measures) Act 2010 (2010 No 27).

Section 46(7): substituted, on 25 November 2003 (applying to refunds, interest and deductions relating to supplies made in taxable periods beginning on or after 1 April 2002), by section 161(1) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).

Section 46(8): repealed, on 25 November 2003 (applying to refunds, interest and deductions relating to supplies made in taxable periods beginning on or after 1 April 2002), by section 161(1) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).

Section 46(9): repealed, on 25 November 2003 (applying to refunds, interest and deductions relating to supplies made in taxable periods beginning on or after 1 April 2002), by section 161(1) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).