This Act may be cited as the Land and Income Tax Amendment Act, 1927, and shall be read together with and deemed part of the Land and Income Tax Act, 1923 (hereinafter referred to as the principal Act).

Section seventy-four of the principal Act is hereby amended by repealing subsection one, and substituting the following subsection:—

The duty to act as the agents of debenture-holders imposed on companies by section one hundred and sixteen of the principal Act shall not apply with respect to debentures issued to any person resident in New Zealand if the company that has issued such debentures has supplied to the Commissioner, before it has been assessed in any year for income-tax in respect of the income derived from those debentures, a certified list specifying the numbers of the debentures or other particulars sufficient to identify them, the names, addresses, and descriptions of the persons to whom the debentures have been issued, the interest derived or derivable therefrom, and such other particulars as may be prescribed.

Where any such list is supplied the person named therein as the holder of any debentures shall be personally responsible for the making of returns, and shall be assessable and liable for income-tax (though not to the exclusion of any other person) in respect of the income derived from those debentures at the rate fixed in respect thereof, unless and until he satisfies the Commissioner, before he has been assessed for income-tax in any year, that he has transferred or assigned the debentures, and has given notice to the Commissioner in the prescribed form of the name, address, and description of the transferee or assignee.

Every person being the transferee or assignee of any debentures shall in like manner remain personally liable in respect thereof (though not to the exclusion of any other person) unless and until he has given notice to the Commissioner in the prescribed form of the transfer or assignment of the same.

Any tax paid by the former holder of any debentures in respect of the income derived therefrom by a subsequent holder shall be deemed to be paid on behalf of that subsequent holder so far as it does not exceed the tax to which the subsequent holder might himself have been liable in respect of such debentures, and may be recovered by the former holder from such subsequent holder accordingly.

This section shall commence to operate in respect of income-tax payable for the year of assessment, commencing on the first day of April nineteen hundred and twenty-eight.