RWT On Final Dividend When Liquidating Company

Question

In its final year of trading, a company issued a dividend to clear the shareholder current account overdrawn balance. The 5% RWT on dividend paid by the company will be refunded by the IRD to the shareholder who is not on the highest marginal tax rate. Can company choose not to pay the RWT?

Answer

The company is required to pay the RWT when it issues a dividend. The company is unable to choose not to pay the RWT.