Heading: inserted, on 1 April 2010 (applying for 2010–11 and later income years), by section 132(1) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
(1) This section applies when the Commissioner considers that a person who receives a payment of resident passive income consisting of interest has had tax withheld at an RWT rate that is inconsistent with their marginal tax rate.
(2) The Commissioner may notify the payer of the interest of the inconsistent rate and provide the payer with the RWT rate for the person.
(3) The payer must use the RWT rate provided by the Commissioner in relation to the person as soon as reasonably practicable after the date of notification. However, if the person subsequently notifies the payer of a different RWT rate, the payer must apply the rate notified by the person.
Section 25A: inserted, on 1 April 2010 (applying for 2010–11 and later income years), by section 132(1) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
Section 25A(1): substituted (with effect on 1 April 2010), on 7 September 2010 (applying for 2010–11 income year), by section 129(1) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).