Income Tax Act 2007 section 964

Collection through self-assessment return

Section 964 explains how income tax that a person is required to deduct from certain payments they make is collected through their self-assessment return, rather than through their own personal income tax liability.

• When a person makes a payment from which they must deduct income tax (under sections 900(3), 901(3), or 903(5) or (6)), the deducted tax is collected via their self-assessment return.
• For the purposes of the Taxes Management Act 1970, this deducted tax is treated as though it were income tax charged directly on the person or trustee making the payment.
• The tax must be included in the person's or trustee's self-assessment return under section 8 or 8A of the Taxes Management Act 1970, and taken into account when assessing their income tax under those provisions.
• This obligation is separate from, and additional to, the person's or trustee's own income tax liability calculated in the normal way — it relates to tax withheld from payments made to others, not to tax on the person's own income.