Paying amounts of tax

RD 21 When amounts of tax not withheld or payment insufficient
Employees’ obligations

(1)

If, for any reason, some or all of the amount of tax for a PAYE income payment is not withheld at the time it is paid to an employee, the employee must—

(a)

provide the relevant employment income information under section 23I of the Tax Administration Act 1994 to the Commissioner; and

(b)

pay the amount of the deficiency.

When person exempt or not liable to pay

(2)

Subsection (1)(b) does not apply if the employee is exempt from paying the amount or is not liable for the amount of tax.

When payment less than amount of tax

(3)

If the amount of money included in a PAYE income payment is less than the amount of tax for the payment, the employee must pay the amount of the deficiency to their employer or PAYE intermediary. If the employee does not pay the amount of the deficiency to their employer or PAYE intermediary, they must pay the amount to the Commissioner under section RD 4(4).

Defined in this Act: amount, amount of tax, Commissioner, employee, employer, employment income information, pay, PAYE intermediary, PAYE income payment

Compare: 2004 No 35 s NC 5

Section RD 21(1)(a): replaced, on 1 April 2019, by section 207(1) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).

Section RD 21(3): amended, on 1 April 2019, by section 207(2) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).

Section RD 21(3): amended (with effect on 1 April 2008 and applying for the 2008–09 and later income years), on 30 March 2017, by section 263(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).

Section RD 21 list of defined terms employer monthly schedule: repealed, on 1 April 2019, by section 207(3)(b) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).

Section RD 21 list of defined terms employment income information: inserted, on 1 April 2019, by section 207(3)(a) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).