21EPayments by Commissioner in respect of persons for whom amounts have been paid to Commissioner

21E Payments by Commissioner in respect of persons for whom amounts have been paid to Commissioner

(1) This section applies in relation to a person if: (a) a superannuation provider paid an amount to the Commissioner under section 21C in respect of the person; and (b) the Commissioner is satisfied, on application in the approved form or on the Commissioner’s own initiative, that it is possible for the Commissioner to pay the amount in accordance with subsection (2). (2) The Commissioner must pay the amount: (a) to a single fund if: (i) the person has not died; and (ii) the person directs the Commissioner to pay to the fund; and (iii) the fund is a complying superannuation plan (within the meaning of the Income Tax Assessment Act 1997); or (aa) to a single KiwiSaver scheme provider if: (i) the person has not died; and (ii) the person directs the Commissioner to pay to the KiwiSaver scheme provider; and (iii) the matters (if any) prescribed by the regulations are satisfied; or (b) in accordance with subsection (4) if: (i) the person has died; and (ii) the Commissioner is satisfied that, if the superannuation provider had not paid the amount to the Commissioner, the provider would have been required to pay an amount or amounts (death benefits) to one or more other persons (death beneficiaries) because of the deceased person’s death; or (c) to the person’s legal personal representative if the person has died but subparagraph (b)(ii) does not apply; or (d) to the person if this paragraph applies (see subsection (3)).

Note: Money for payments under this subsection is appropriated by section 16 of the Taxation Administration Act 1953.

(2A) Despite paragraph (2)(a), the Commissioner must not pay the amount to a single fund if the amount includes a New Zealand‑sourced amount and either: (a) the fund is a self managed superannuation fund; or (b) the superannuation provider for the fund has not notified the Commissioner, in the approved form, that the fund accepts New Zealand‑sourced amounts. (3) Paragraph (2)(d) applies if: (a) subparagraphs (2)(a)(ii) and (aa)(ii) do not apply; and (b) any of the following subparagraphs apply: (i) the person has reached the eligibility age and, if the amount includes a New Zealand‑sourced amount, the New Zealand eligibility age; (ii) the amount is less than $200; (iii) a terminal medical condition (within the meaning of the Income Tax Assessment Act 1997) exists in relation to the person; and (c) the person has not died. (4) In a case covered by paragraph (2)(b), the Commissioner must pay the amount under subsection (2) by paying to each death beneficiary the amount worked out using the following formula: Start formula Amount payable under subsection (2) times start fraction Death benefit for the death beneficiary over Total death benefits end fraction end formula