RP 17B Tax pooling accounts and their use
Meaning

(1)

A tax pooling account means a trust account into which a tax pooling intermediary pays an amount that they receive from a person in their role as intermediary.

Use of funds in tax pooling accounts

(2)

An amount held in a tax pooling account on behalf of a person may be refunded, transferred, sold, or used to satisfy a person’s liability for—

(a)

provisional tax other than under the AIM method:

(b)

terminal tax:

(c)

an increased amount of tax described in subsection (3):

(d)

interest under Part 7 of the Tax Administration Act 1994 on an increased amount of tax described in subsection (3):

(e)

interest under Part 7 of the Tax Administration Act 1994 on the provisional tax or terminal tax described in subsection (4).

When original liability increased

(3)

For the purposes of this section, an increased amount of tax—

(a)

arises when a person’s previous assessed liability is increased after—

(i)

the Commissioner amends an assessment under section 113 of the Tax Administration Act 1994:

(ii)

the Commissioner makes a determination under section 119 of that Act:

(iii)

an assessment is made because the Commissioner or the person is treated under section 89H of that Act as having accepted a proposed adjustment:

(iv)

the person makes a voluntary disclosure:

(ab)

also arises when a person has—

(i)

before taking any action under subparagraph (ii), filed a return required to be provided for a tax type listed in subsection (8); and

(ii)

has made a voluntary disclosure in relation to the return:

(ac)

also arises when—

(i)

before any assessment or adjustment under subparagraph (ii) is made, the person has filed a return required to be provided for a tax type listed in subsection (8); and

(ii)

the Commissioner makes an assessment or adjustment increasing an amount previously payable:

(b)

includes deferrable tax as defined in section 3(1) of the Tax Administration Act 1994 payable by the person:

(bb)

includes an amount of tax (the agreed delay tax) for which the person has initiated a dispute under Part 4A of the Tax Administration Act 1994, if—

(i)

the facts and questions of law in the dispute closely resemble the facts and questions of law for an assessment that is at the time the subject of proceedings in a court or Taxation Review Authority; and

(ii)

the Commissioner and the person have agreed that the dispute will be determined by the final outcome of the proceedings; and

(iii)

the Commissioner and the person enter the agreement on or after the date on which the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 receives the Royal assent:

(c)

does not include the amount of the previous assessment or the amount that was previously payable under paragraph (ab) or (ac), as applicable.

Transfers for provisional tax or terminal tax

(4)

A person who chooses to use funds in a tax pooling account to satisfy an obligation for provisional tax (other than under the AIM method) for a tax year, terminal tax for a tax year, or interest under Part 7 of the Tax Administration Act 1994 on the provisional tax or terminal tax may ask the tax pooling intermediary to arrange the transfer of an amount to their tax account with the Commissioner as follows:

(a)

on or before the date that is 75 days after their terminal tax date for the tax year unless paragraph (b) or (c) applies:

(b)

on or before the date that is 76 days after their terminal tax date for the tax year if—

(i)

the person’s balance date falls at the end of October, November, or December; and

(ii)

the terminal tax date falls in a tax year that has a 29 February in it:

(c)

if the amount is to be transferred from funds deposited on the person’s behalf in the tax pooling account under section RP 18 and the person’s return filing requirements have been met, at any time.

Group companies

(4B)

For the purposes of subsection (4)(c), if the person is part of a group of companies, the person includes the other companies in the group at the time at which a deposit to the tax pooling account is made, or funds purchased or used, as applicable.

Transfer within 60 days for increased amounts and use of money interest

(5)

If a person chooses to use funds in a tax pooling account to satisfy an obligation for an increased amount of tax as described in subsection (3)(a) to (ac), or for interest under Part 7 of the Tax Administration Act 1994 on the increased amount of tax, the tax pooling intermediary must apply to the Commissioner within 60 days from the date on which the Commissioner issues the notice of assessment increasing the amount to transfer the amount to the person’s tax account with the Commissioner.

Transfer within 60 days for deferrable tax, agreed delay tax, and use of money interest

(6)

If a person chooses to use funds in a tax pooling account to satisfy an obligation for deferrable tax under subsection (3)(b), for agreed delay tax referred to in subsection (3)(bb), or for interest under Part 7 of the Tax Administration Act 1994 on deferrable tax or agreed delay tax, the tax pooling intermediary must apply to the Commissioner within 60 days from the date on which the court proceedings are finally determined to transfer the amount to the person’s tax account with the Commissioner. For the purposes of this subsection, court proceedings include proceedings before the Taxation Review Authority.

Maximum amount of transfer

(7)

The maximum amount that a person may ask a tax pooling intermediary to transfer to meet an obligation to pay tax is—

(a)

for a transfer under subsection (4)(a) or (b), the total of—

(i)

the provisional tax or terminal tax payable:

(ii)

interest under Part 7 of the Tax Administration Act 1994 on the provisional tax or terminal tax:

(b)

for a transfer under subsection (4)(c), the amount of the funds deposited by the person under section RP 18:

(c)

for a transfer under subsection (5), the total of—

(i)

the increased amount of tax payable:

(ii)

interest payable under Part 7 of the Tax Administration Act 1994 on the increased amount of tax:

(d)

for a transfer under subsection (6), the total of—

(i)

the amount of deferrable tax or agreed delay tax payable:

(ii)

interest payable under Part 7 of the Tax Administration Act 1994 on the amount of deferrable tax or agreed delay tax.

Extended meaning for increased amount of tax and deferrable tax

(8)

For the purposes of sections RP 17 to RP 21, an increased amount of tax or deferrable tax includes an amount relating to—

(a)

tax paid or payable under the PAYE rules, ESCT rules, RSCT rules, RWT rules, or NRWT rules:

(b)

income tax, GST, FBT, further income tax, and imputation penalty tax payable under section 140B of the Tax Administration Act 1994.

When subsection (10) applies

(9)

Subsection (10) applies when—

(a)

a person is liable for an increased amount of tax that relates to income tax or resident withholding tax; and

(b)

subsection (3)(ab)(ii) applies in relation to the amount; and

(c)

the person has not filed the return required by subsection (3)(ab)(i) before the voluntary disclosure is made.

Commissioner’s discretion to allow use of funds

(10)

On application by the person, the Commissioner may notify the person that the person may use funds in a tax pooling account for the increased amount of tax, or for interest under Part 7 of the Tax Administration Act 1994 on that increased amount of tax, if the Commissioner is satisfied that—

(a)

the increased amount of tax arises as a result of an event or circumstance beyond the person’s control; and

(b)

the person has a reasonable justification or excuse for not filing the return by the required date; and

(c)

the person has an otherwise good compliance history for the 2 income years before the income year in which the voluntary disclosure referred to in subsection (3)(ab)(ii) is made.

Review

(11)

After the expiry of 1 year, but before the expiry of 2 years, after the commencement of subsection (10), the Commissioner must—

(a)

review the operation of subsections (9) and (10); and

(b)

assess the impact of these subsections; and

(c)

consider whether any amendments to the law are necessary or desirable and, in particular, whether these subsections are needed; and

(d)

report the findings to the Minister of Revenue.

Defined in this Act: amount, amount of tax, apply, ask, assessment, balance date, Commissioner, corresponding income year, income tax, notice, notify, pay, provisional tax, return of income, tax account with the Commissioner, tax pooling account, terminal tax

Section RP 17B: inserted, on 6 October 2009, by section 551 of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section RP 17B(2): replaced (with effect on 3 July 2014), on 24 February 2016, by section 230(1) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).

Section RP 17B(2)(a): amended, on 1 April 2018, by section 44(1) (and see section 44(3) for application) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).

Section RP 17B(2)(d): amended, on 1 April 2019, by section 272(1) (and see section 272(4) for application) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).

Section RP 17B(2)(e): inserted, on 1 April 2019, by section 272(1) (and see section 272(4) for application) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).

Section RP 17B(3)(ab): inserted, on 29 August 2011, by section 126(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Section RP 17B(3)(ac): inserted, on 29 August 2011, by section 126(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Section RP 17B(3)(bb): inserted (with effect on 3 July 2014), on 24 February 2016, by section 230(2) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).

Section RP 17B(3)(c): amended, on 29 August 2011, by section 126(2) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Section RP 17B(4) heading: substituted, on 29 August 2011, pursuant to section 126(3) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Section RP 17B(4): substituted, on 29 August 2011, by section 126(3) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Section RP 17B(4): amended, on 1 April 2019, by section 272(2) (and see section 272(4) for application) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).

Section RP 17B(4B) heading: inserted, on 29 August 2011, by section 126(3) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Section RP 17B(4B): inserted, on 29 August 2011, by section 126(3) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Section RP 17B(5) heading: replaced (with effect on 3 July 2014), on 24 February 2016, by section 230(3) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).

Section RP 17B(5): amended, on 2 June 2016, by section 65(1) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).

Section RP 17B(5): amended (with effect on 3 July 2014), on 24 February 2016, by section 230(4) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).

Section RP 17B(5): amended, on 29 August 2011, by section 126(4) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Section RP 17B(6) heading: replaced (with effect on 3 July 2014), on 24 February 2016, by section 230(5) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).

Section RP 17B(6): amended, on 2 June 2016, by section 65(2) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).

Section RP 17B(6): amended (with effect on 3 July 2014), on 24 February 2016, by section 230(6) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).

Section RP 17B(7) heading: added, on 29 August 2011, by section 126(5) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Section RP 17B(7): added, on 29 August 2011, by section 126(5) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Section RP 17B(7)(a): replaced, on 1 April 2019, by section 272(3) (and see section 272(4) for application) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).

Section RP 17B(7)(c): replaced (with effect on 3 July 2014), on 24 February 2016, by section 230(7) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).

Section RP 17B(7)(d): replaced (with effect on 3 July 2014), on 24 February 2016, by section 230(8) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).

Section RP 17B(8) heading: added, on 29 August 2011, by section 126(5) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Section RP 17B(8): added, on 29 August 2011, by section 126(5) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Section RP 17B(9) heading: added, on 29 August 2011, by section 126(5) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Section RP 17B(9): added, on 29 August 2011, by section 126(5) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Section RP 17B(10) heading: added, on 29 August 2011, by section 126(5) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Section RP 17B(10): replaced (with effect on 3 July 2014), on 24 February 2016, by section 230(9) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).

Section RP 17B(10): amended, on 2 June 2016, by section 65(3) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).

Section RP 17B(11) heading: added, on 29 August 2011, by section 126(5) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Section RP 17B(11): added, on 29 August 2011, by section 126(5) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Section RP 17B list of defined terms apply: inserted, on 2 June 2016, by section 65(4) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).

Section RP 17B list of defined terms ask: inserted, on 2 June 2016, by section 65(4) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).

Section RP 17B list of defined terms balance date: inserted, on 29 August 2011, by section 126(6) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Section RP 17B list of defined terms corresponding income year: inserted, on 29 August 2011, by section 126(6) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Section RP 17B list of defined terms income tax: inserted, on 29 August 2011, by section 126(6) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Section RP 17B list of defined terms notify: inserted, on 2 June 2016, by section 65(4) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).

Section RP 17B list of defined terms return of income: inserted, on 29 August 2011, by section 126(6) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).