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Dear Ben,

 

Thank you for your request under the Official Information Act 1982,
received on 4 August 2025.

 

We will reply within the statutory 20 working days, by 1 September 2025.

 

Your reference number is 26OIA1186.

Kind Regards,

Ministerial Services | Inland Revenue - Te Tari Taake

 

 

 

-----Original Message-----

From: Ben Arnold <[1][FOI #31895 email]>

Sent: Monday, 4 August 2025 7:32 pm

To: oia <[2][IRD request email]>

Subject: Official Information request - RD 20BPayments of accident
compensation for period of more than 1 year

 

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Dear Inland Revenue Department,

 

Under the Official Information Act 1982, I request the following
information.

 

For clarity, I have split my request into two parts.

 

Request part (a)

 

A copy of all documents and instructions held by the Inland Revenue
Department relating to the application of the alternative tax rate for
multi-year accident compensation payments. This is in reference to the
amendment passed in the Taxation (Annual Rates for 2023–24, Multinational
Tax, and Remedial Matters) Bill, which inserted new sections RD 20B and RD
20C into the Income Tax Act 2007.

 

Request part (b)

 

Any information, including internal guidance or correspondence with ACC,
that clarifies the definition and application of a "period of more than 1
income year" as it applies to backdated lump sum payments under the
legislation referenced above.

 

To assist with this request, I provide the following statement that I
received from ACC:

 

"ACC received communication from IRD in the form of instructions that the
alternate tax rate can only be apply if the following situation applies."

 

"The alternate tax rate is only applicable to multi-year backdated lump
sum payments that covers more than 1 tax year where a payment needs to
cover a full tax year + 1 day."

 

(ACC provided the following example) "A backdated payment from 13/12/2023
– 04/08/2024 which does not cover a full tax year + 1 day...As it is 2
partial tax years (13/12/2023 – 31/03/2024: not a full tax year &
01/04/2024 – 04/08/2024: not a full tax year) Is not eligible for the
alternate tax rate."

 

Thank you for your assistance.

 

Yours faithfully,

 

Ben Arnold

 

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