33Windfalls

33 Windfalls (1) A taxpayer gains a windfall profit at the expense of another (the third party) if: (a) the third party pays tax on the taxpayer's behalf or indemnifies the taxpayer for the payment of tax; and (b) the amount of the tax, or a proportion of the amount, is refunded to the taxpayer under this Part. (2) A third party is taken to indemnify a taxpayer for the payment of tax if the taxpayer identifies the tax as a component of the price of goods or services and receives or recovers the price of the goods or services (including the component referable to tax) from the third party. (3) A taxpayer must reimburse a third party for the amount of any windfall profit gained at the third party's expense. (4) A reimbursement under this section must be made within the relevant period. (5) Within 7 days after the end of the relevant period, the taxpayer must: (a) give the Commissioner a notice setting out the extent the windfall profit has been reimbursed as required by this section; and (b) return to the Commissioner any amount that has not been reimbursed together with interest at the statutory interest rate from the date the refund was made to the date the amount is returned to the Commissioner.

Taxation Administration Act 2007 18 (6) A taxpayer must not fail to comply with an obligation imposed by this section. (7) Before the Commissioner refunds tax to a taxpayer under this Part, the Commissioner may require the taxpayer to satisfy the Commissioner that the taxpayer has made appropriate arrangements for complying with the taxpayer's obligations under this section, and, if the Commissioner is not so satisfied, the Commissioner must not refund the tax to the taxpayer. (8) In this section: relevant period means the period of 90 days (or a longer period allowed by the Commissioner) from the date of the refund.