1: Title
This Act is the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012.
2: Commencement
1: This Act comes into force on the day on which it receives the Royal assent, except as provided in this section.
2: Section 251(1) and (4)
3: Section 251(2) and (5)
4: Section 251(3) and (6)
5: Section 173
6: Section 209(2) and (3)
7: Sections 209(1) 214(1)
8: Sections 170(2) and (5) 241 242 244 245 246 247
9: Section 243
10: Section 24
11: Sections 11 16 21 23 30 37 38 39 69 72 82 84 85(1), (2), (3), (7), and (9) 86 115 117 120 122 124 125 126(1) 127(2) 134 136 139 140(1), (2), and (4) 141 143 144 145 153 154(7), (11), (12), (17), and (43) 162(3), (4), and (7) 170(3) and (6) 171(1)(b) and (d) 186 199 202
12: Section 83
13: Section 154(30)
14: Sections 24(1), (3), (4), and (6) 25(1), (3), (4), and (6) 28 40 41 42(1), (2), (6), (7), and (8) 43(1) to (6) 44 52 63 64 65 76 114 129 131 132 146 154(8) and (44)
15: Sections 68 154(40)
16: Section 152
17: Sections 98 100
18: Section 66
19: Sections 31 32 53 54 55
20: Section 45
21: Sections 12 13 18 19 20 29 35 36 56 57 58 59 60 61 73
22: Sections 27 33
23: Section 154(3), (4), and (42)
24: Section 154(5)
25: Sections 154(22)
26: Sections 154(28) 155 156(a) 158
27: Sections 78 79 80 81 111 112 123 126(2) and (3) 127(1) and (3) 154(6), (9), (10), (14), (19), (27), and (32) 162(1), (2), (5), (6), and (8) 207(2) and (4) 208(2) and (3) 210 211 212 214 215 216 217 218 221 222 223 224 225 226
28: Sections 24(2) and (7) 25(2) and (7) 42(3), (4), (5), and (9) 43(7) and (8) 46 48 49 50 116 128 133
29: Sections 90 91 97 252 253 254 255
30: Section 208(1)
31: Sections 47 51
32: Section 194
33: Sections 70 85(4), (5), (6), and (8) 89 94 140(3) 142 154(20) and (33) 163(2)
34: Section 168(1)(d)
35: Sections 71 228 229 230 235 238
36: Sections 6 7 8 9 10 147 148 151 154(2), (31), (37), and (39)
37: Sections 88 93(2) 99 101 103 104(2) 107 118 150 154(18) and (29) 163(3) 166 168(1)(a) to (c) and (e) and (3) 231 234
38: Sections 137 154(25) 170(4) 171(3) 176 177 179 180 181 183 184 185 189 190 191 192 193 197 198 200 201 239
39: Section 168(2) and (4)
1: Annual rates of income tax
3: Annual rates of income tax for 2012–13 tax year
Income tax imposed by section BB 1
2: Amendments to Income Tax Act 2007
4: Income Tax Act 2007
This Part amends the Income Tax Act 2007 2012-11-02 Income Tax Act 2007 2013-04-01 Income Tax Act 2007 (See Commencement section (37)). Sections 88, 93(2), 99, 101, 103, 104(2), 107, 118, 150, 154(18) and (29), 163(3), 166, 168(1)(a) to (c) and (e) and (3) come into force on 1 April 2013. 2016-04-01 Income Tax Act 2007 (See Commencement section (38)). Sections 137 and 154(25) come into force on 1 April 2016 or on an earlier date set by OIC. 2014-04-01 Income Tax Act 2007 (See Commencement section (39)). Section 168(2) and (4) come into force on 1 April 2014.
5: Films
Section CC 10(4)
6: Bonus issues in lieu of dividend
In section CD 7(2) , minus any resident withholding tax (RWT) payable in relation to the dividend
7: New section CD 7B
After section CD 7
CD 7B: Shares issued under profit distribution plans
Profit distribution plan shares
1: A share issued by a company under a profit distribution plan is a dividend. Amount of dividend
2: The amount of the dividend is the amount offered by the company for the repurchase of the share. Relationship with section CD 22
3: Section CD 22 does not apply in relation to a share issued under a profit distribution plan and repurchased by the company as part of the plan. amount, company, dividend, profit distribution plan, RWT, share .
8: Elections to make bonus issue into dividend
1: In section CD 8(1) A bonus issue that is not a bonus issue in lieu A bonus issue that is not a bonus issue in lieu or a share issued under a profit distribution plan
2: In section CD 8 profit distribution plan share
9: New section CD 23B
After section CD 23
CD 23B: Returns of capital: shares repurchased under profit distribution plans
When this section applies
1: This section applies when a company has issued a share to a shareholder under a profit distribution plan and the shareholder exercises the option to have the share repurchased by the company. Amount paid
2: The amount paid by the company to repurchase the share is not a dividend. amount, company, dividend, pay, profit distribution plan, share, shareholder .
10: Available subscribed capital (ASC) amount
1: In section CD 43(2)(c) section CD 22 or CD 24 section CD 22, CD 23B, or CD 24
2: After section CD 43(6)(a)
ab: in the case of a share issued under a profit distribution plan, the amount offered by the company for the repurchase of the share; and .
3: In section CD 43(6)(b) that is not a bonus issue in lieu that is not a bonus issue in lieu or a share issued under a profit distribution plan
4: In section CD 43(7)(a) neither subsection (6)(a) nor (b) none of subsection (6)(a), (ab), or (b)
5: In section CD 43 profit distribution plan
11: Meaning of expenditure on account of an employee
1: Section CE 5(1)
1: Expenditure on account of an employee
2: Subsection (1) applies for the 2008–09 and later income years.
12: Section CG 4 replaced
1: Section CG 4
CG 4: Receipts for expenditure or loss from insurance, indemnity, or otherwise
When this section applies
1: This section applies when—
a: a person is allowed a deduction for expenditure or loss; and
b: the person derives an amount relating to the expenditure or loss, whether through insurance, indemnity, or otherwise; and
c: the amount, to the extent of the deduction, is not income of the person under any other provision of this Act. Income
2: The amount derived is, to the extent of the deduction, income of the person. Timing of income
3: The income is allocated to the later of—
a: the income year in which the expenditure or loss is incurred:
b: the income year in which the amount is derived. amount, deduction, income year, loss .
2: Subsection (1) applies for—
a: the 2011–12 and later income years, except as given by paragraph (b); or
b: the 2010–11 and later income years for a person who is granted an extension of time for filing a return of income for the 2010–11 income year under the Canterbury Earthquake (Inland Revenue Acts) Order 2011
13: Receipts from insurance, indemnity, or compensation for interruption or impairment of business activities
1: In section CG 5B(2) attributable to income (the replaced income
2: Section CG 5B(3)
3: The income is allocated to the later of—
a: the income year to which the replaced income relates:
b: the earlier of—
i: the income year in which the amount is received:
ii: the income year in which the amount is reasonably able to be estimated.
3: Subsections (1) and (2) apply for—
a: the 2011–12 and later income years, except as given by paragraph (b); or
b: the 2010–11 and later income years for a person who is granted an extension of time for filing a return of income for the 2010–11 income year under the Canterbury Earthquake (Inland Revenue Acts) Order 2011
14: Section CV 17 repealed
Section CV 17
15: Dividends paid by qualifying companies
In section CW 15 bonus issue
16: Expenditure on account, and reimbursement, of employees
1: In section CW 17(1) Expenditure on account of an employee Expenditure on account of an employee, being a payment to which section CE 5 (Meaning of expenditure on account of an employee) applies, that is
2: Subsection (1) applies for the 2008–09 and later income years.
17: Proceeds from disposal of investment shares
1: Section CX 55(4)
4: This section does not apply to—
a: a fixed-rate share, within the meaning of paragraphs (a) to (d) of the definition of that term; or
b: a share for which the amount payable on cancellation is no more than the available subscribed capital per share calculated under the slice rule.
2: In section CX 55
a: non-participating redeemable share
b: available subscribed capital fixed-rate share pay slice rule
18: Section CZ 23 repealed
Section CZ 23
19: New section CZ 25
After section CZ 24
CZ 25: Land and buildings as revenue account property affected by Canterbury earthquakes and replaced—insurance or compensation, Government purchase
When this section applies
1: This section applies for a person and an income year (the current year
a: in or before the current year, derives for buildings or land (the affected property
i: insurance or compensation, if a Canterbury earthquake as that term is defined in section 4 of the Canterbury Earthquake Recovery Act 2011 damages the land and damages each building, or the neighbourhood of the building, causing the building to be useless for the purpose of deriving income and consequently to be abolished or abandoned for later demolition:
ii: an amount from a purchase by the Government from the person under section 53(1) of the Canterbury Earthquake Recovery Act 2011; and
b: in the absence of this section, would have in or before the current year a total amount of income under section CG 6 (Receipts from insurance, indemnity, or compensation for trading stock) from the insurance or compensation for the affected property that exceeds the total amount of deductions under section DB 23 (Cost of revenue account property) for the affected property; and
c: plans in the current year to acquire property (the replacement property
d: gives written notice to the Commissioner under subsection (6) in relation to the affected property. Suspended recovery income
2: The amount of the excess (the excess recovery suspended recovery income Effect of purchase of replacement property
3: If the person incurs expenditure (the replacement cost
a: for the purposes of determining the value of the replacement property for section EA 2 (Other revenue account property), the amount of the person's expenditure on the replacement property, to the extent that it is less than or equal to the total amount of the income under section CG 6 for the affected property, is treated as being reduced by an amount calculated by multiplying the replacement cost by the excess recovery and dividing the result by the total amount of deductions under section DB 23 for the affected property; and
b: the amount of the suspended recovery income immediately before the expenditure is reduced by an amount equal to the reduction of expenditure under paragraph (a) for the purposes of section EA 2. Requirements for replacement property
4: For an item of affected property, replacement property must be a building or land that is revenue account property—
a: acquired in or before the person's 2015–16 income year; and
b: located in greater Christchurch as that term is defined in section 4 of the Canterbury Earthquake Recovery Act 2011. Amount remaining at end of 2015–16 income year or when person changes intentions, is liquidated, or becomes bankrupt
5: The person has an amount of income for the affected property in the current year equal to the amount of suspended recovery income when—
a: the current year ends, if the current year is the 2015–16 income year:
b: in the current year, the person decides not to replace the affected property:
c: in the current year, the person goes into liquidation or becomes bankrupt. Notice of election for affected property
6: A person choosing to rely on this section to suspend in a current year the recognition of suspended recovery income from the insurance for affected property must give written notice to the Commissioner—
a: by the later of 31 January 2012 and the date on which the return of income is filed for the earliest income year (the estimate year
b: if the current year is after the estimate year,—
i: for each income year between the estimate year and the current year, by the date on which the return of income is filed for that income year; and
ii: for the current year, by the date on which the return of income is filed for the current year. Contents of notice of election
7: A notice under subsection (6) must—
a: describe the affected property; and
b: give details of replacement property acquired in the current year to replace, in full or in part, the affected property; and
c: give the cost of the replacement property and the reduction under subsection (3) of that cost for the purposes of section EA 2; and
d: give the amount, for the affected property, of the income from insurance or compensation remaining suspended under this section at the end of the current year. Relationship to section CG 6
8: This section overrides section CG 6. amount, deduction, income, income year, notice, return of income .
20: New section CZ 26
After section CZ 25
CZ 26: Land and buildings affected by Canterbury earthquakes—sections CB 9 to CB 12 overridden for Government purchase
Sections CB 9 to CB 12 (which relate to disposals within 10 years of acquisition) do not apply to a person and land or buildings purchased by the Government from the person under section 53(1) of the Canterbury Earthquake Recovery Act 2011. land .
21: New heading and section DB 40B inserted
1: After section DB 40 Unsuccessful software development
DB 40B: Expenditure in unsuccessful development of software
When this section applies
1: This section applies when a person incurs expenditure in the development of software for use in the person's business if—
a: the development of the software is abandoned when the software is not depreciable property of the person; and
b: the software would have been depreciable property of the person if the development had been completed. Deduction
2: The person is allowed a deduction for expenditure incurred in the development of the software to the extent to which no deduction has been allowed for the expenditure under another provision of this Act or under another Act. Timing of deduction
3: The deduction is allocated to the income year in which the development of the software is abandoned. Link with subpart DA
4: This section overrides the capital limitation. The general permission must still be satisfied and the other general limitations still apply. capital limitation, deduction, general limitation, general permission, income year .
2: Subsection (1) applies for the 2008–09 and later income years.
22: Expenditure incurred by foreign investment PIEs
1: Section DB 54B(1)
1: This section applies when a foreign investment PIE incurs expenditure or loss in deriving income attributable to—
a: a notified foreign investor in the PIE:
b: a transitional resident who has chosen under section HM 55D(9) (Requirements for investors in foreign investment PIEs) to use the specified prescribed investor rate.
2: In section DB 54B prescribed investor rate transitional resident
23: Some definitions
1: In section DC 15(1) employee
a: means a person that—
i: is employed by a company:
ii: is not a corporation sole, a body corporate, or an unincorporated body: .
2: In section DC 15(1) employee
a: in paragraph (b)(ii), the company; or the company
b: paragraph (b)(iii) is repealed.
3: Subsections (1) and (2) apply for the 2008–09 and later income years.
24: Ring-fenced cap on deduction
1: Section DN 4(1) Amount of deduction: CFC not elective attributing CFC
1: The deduction that a person is allowed in an income year for an attributed CFC loss from a CFC (the first CFC
a: total attributed CFC income of the person for the income year from other CFCs, each of which is resident in the same country as the first CFC for the relevant accounting period:
b: total FIF income of the person for the income year from FIFs,—
i: each of which is resident in the same country as the first CFC for the relevant accounting period; and
ii: for each of which the person uses the branch equivalent method. Amount of deduction: elective attributing CFC
1B: The deduction that a person is allowed in an income year for an attributed CFC loss from a CFC (the first CFC
a: total attributed CFC income of the person for the income year from other CFCs, each of which—
i: is resident in the same country as the first CFC for the relevant accounting period; and
ii: is an elective attributing CFC for the person in the income year; and
iii: has the same election commencement year as the first CFC:
b: total FIF income of the person for the income year from FIFs, each of which—
i: is resident in the same country as the first CFC for the relevant accounting period; and
ii: is an elective attributing FIF for the person in the income year; and
iii: has the same election commencement year as the first CFC.
2: In section DN 4(1)(b)(ii) branch equivalent method attributable FIF income method
3: In section DN 4(2) subsection (1) subsection (1) or (1B)
4: Section DN 4(3)
3: Any excess not able to be deducted because of subsection (1) or (1B) is an attributed CFC net loss able to be used under sections IQ 2, IQ 4, and IQ 9 (which relate to the use of attributed CFC net losses).
5: In section DN 4 election commencement year elective attributing CFC elective attributing FIF
6: Subsections (1), (3), and (4) apply for income years beginning on or after 1 July 2009.
7: Subsection (2) applies for income years beginning on or after 1 July 2011.
25: Ring-fencing cap on deduction: attributable FIF income method
1: Section DN 8(1) Amount of deduction: FIF not elective attributing FIF
1: The deduction that a person is allowed in an income year for a FIF loss from a FIF (the first FIF
a: total attributed CFC income of the person for the income year from CFCs, each of which is resident in the same country as the first FIF for the relevant accounting period:
b: total FIF income of the person for the income year from other FIFs,—
i: each of which is resident in the same country as the first FIF for the relevant accounting period; and
ii: for each of which the person uses the branch equivalent method. Amount of deduction: elective attributing FIF
1B: The deduction that a person is allowed in an income year for a FIF loss from a FIF (the first FIF
a: total attributed CFC income of the person for the income year from CFCs, each of which—
i: is resident in the same country as the first FIF for the relevant accounting period; and
ii: is an elective attributing CFC for the person in the income year; and
iii: has the same election commencement year as the first FIF:
b: total FIF income of the person for the income year from other FIFs, each of which—
i: is resident in the same country as the first FIF for the relevant accounting period; and
ii: is an elective attributing FIF for the person in the income year; and
iii: has the same election commencement year as the first FIF.
2: In section DN 8(1)(b)(ii) branch equivalent method attributable FIF income method
3: In section DN 8(2) subsection (1) subsection (1) or (1B)
4: Section DN 8(3
3: Any excess not able to be deducted because of subsection (1) or (1B) is a FIF net loss able to be used under section IQ 3 (Ring-fencing cap on FIF net losses).
5: In section DN 8 election commencement year elective attributing CFC elective attributing FIF
6: Subsections (1), (3), and (4) apply for income years beginning on or after 1 July 2009.
7: Subsection (2) applies for income years beginning on or after 1 July 2011.
26: Non-resident general insurers, shippers, and film renters
1: In section DW 3 Non-resident general insurers and shippers
2: In section DW 3(2)(b) New Zealand: New Zealand.
3: Section DW 3(2)(c)
27: Deduction for general insurance outstanding claims reserve
1: In section DW 4(6) The general limitations still apply The general limitations still apply, except that the capital limitation does not apply for general insurance contracts after they are transferred to an insurer
2: In section DW 4 capital limitation
3: Subsections (1) and (2) apply to a transfer of general insurance contracts––
a: on and after 1 October 2012, unless paragraph (b) applies:
b: on and after 7 September 2010, if the transferor chooses to apply subsection (1) and the transfer is made—
i: to a transferee who is a non-resident and does not carry on a business in New Zealand through a fixed establishment; and
ii: for the purposes of complying with the Insurance (Prudential Supervision) Act 2010
28: Section DZ 19 repealed
1: Section DZ 1
2: Subsection (1) applies for income years beginning on or after 1 July 2009.
29: New section DZ 20 inserted
1: Before Part E
DZ 20: Expenditure incurred while income-earning activity interrupted by Canterbury earthquake
When this section applies
1: This section applies for a person and an income year (the current year
a: the person has an income-earning activity in greater Christchurch (as defined in section 4 of the Canterbury Earthquake Recovery Act 2011) immediately before a Canterbury earthquake (as defined in that section); and
b: the activity is interrupted for a period (the period of interruption
c: in the current year, during the period of interruption, the person incurs expenditure or loss (the interruption expenditure
d: the interruption expenditure does not meet the requirements of the general permission for the person and the income-earning activity but would do so but for the interruption; and
e: the person resumes the income-earning activity in an income year (the resumption year Deduction for interruption expenditure
2: The person is allowed a deduction for the interruption expenditure. Timing of deduction
3: The deduction is allocated to the resumption year. Link with subpart DA
4: This section supplements the general permission; the general limitations still apply. deduction, general limitation, general permission, income, income year, loss .
2: Subsection (1) applies for the 2010–11 to the 2015–16 income years.
30: Application of subpart
1: Section EC 1(1) When this subpart applies
1: This subpart applies to the valuation of property when a person who owns or carries on a business, other than of selling livestock, holds livestock for the purposes of sale or exchange in the ordinary course of carrying on the business.
2: Subsection (1) applies for the 2008–09 and later income years. However, subsection (1) does not apply to a person in relation to a tax position taken by the person—
a: in the period from 1 April 2008 to 31 May 2011; and
b: relating to the valuation of livestock; and
c: relying on the provisions of subpart EC
31: Valuation of excepted financial arrangements
In section ED 1(7B)(a) section 64, or
32: Valuation of emissions units issued for zero price
1: Section ED 1B(1)(a)(i) and (ii)
i: under sections 80 to 86F of the Climate Change Response Act 2002:
ii: under section 64 of the Climate Change Response Act 2002 for a removal activity listed in Schedule 4, Part 2 of that Act:
iii: by a public authority under a supplementary agreement to a negotiated greenhouse agreement:
iv: by a public authority as a rebate, under a negotiated greenhouse agreement, for an indirect emissions charge; and .
2: Section ED 1B(1)(d), (e), and (f)
3: Section ED 1B(7)(a)(iii)
iii: allocation entitlement under section 64 of the Climate Change Response Act 2002 for a removal activity listed in Schedule 4, Part 2 of that Act:
iv: emissions units corresponding to the actual emissions amount under a supplementary agreement to a negotiated greenhouse agreement:
v: emissions units corresponding to a rebate, under a negotiated greenhouse agreement, for an indirect emissions charge: .
33: New section ED 3
1: After section ED 2
ED 3: Part-year tax calculations for transfers: general insurance OCR
When this section applies
1: This section applies when an insurer to whom sections CR 4 and DW 4 (which relate to outstanding claims reserves) apply (the transferor transferee Part-year calculations for transfers
2: The transferor does a part-year calculation immediately before the transfer, as described in subsection (3), for the transferred general insurance contracts, but only for their part-year ending on the day the transfer occurs. The transferee also does a part-year calculation for the transferred contracts, as described in subsection (3), but only for their part-year starting on the day the transfer occurs. The transferee's relevant opening outstanding claims reserve amounts equal the transferor's relevant closing outstanding claims reserve amounts immediately before the transfer, but if the reinsurance associated with transferred policies is not assigned by the transferor to the transferee, the transferee's reserve amounts are calculated without subtracting relevant reinsurance amounts. Part-year calculations for transfers: description
3: For calculating their income tax liability for the tax year that corresponds to the income year, the transferor and transferee treat references, in sections CR 4 and DW 4 and in the new life insurance rules, to an income year or a tax year as if they are references to 2 separate tax years and corresponding income years (the part-years Part-year calculations for transfers: effect
4: Transferor's and transferee's part-year calculations may give rise to income and deductions for the income year, but they do not create any part-year tax return obligations. amount, deduction, general insurance, IFRS 4, income, income tax liability, income year, insurer, outstanding claims reserve, pay, tax year .
2: Subsection (1) applies to a transfer of general insurance contracts––
a: on and after 1 October 2012, unless paragraph (b) applies:
b: on and after 7 September 2010, if the transferor chooses to apply subsection (1) and the transfer is made—
i: to a transferee who is a non-resident and does not carry on a business in New Zealand through a fixed establishment; and
ii: for the purposes of complying with the Insurance (Prudential Supervision) Act 2010
34: What this subpart does
In section EE 1(3)(c) section EE 38 section EE 47
35: Cases affecting pool
1: After section EE 22(2) Insurance or compensation for damage to item
2B: If a person in an income year derives an amount of insurance, indemnity, or compensation (the compensation amount
2: In section EE 22(3) any consideration they derive from the disposal and derives an amount of consideration from the disposal, or derives an amount of insurance, indemnity, or compensation to which subsection (2B) does not apply for damage to the item occurring before the disposal, any excess of the amount derived over the expenditure or loss incurred in deriving the amount
3: Subsections (1) and (2) apply for—
a: the 2011–12 and later income years, except as given by paragraph (b); or
b: the 2010–11 and later income years for a person who is granted an extension of time for filing a return of income for the 2010–11 income year under the Canterbury Earthquake (Inland Revenue Acts) Order 2011
36: Consideration for purposes of section EE 44
1: In section EE 45(8) amount of insurance, indemnity, or compensation total of the amount of insurance, indemnity, or compensation, and the amount of proceeds from the disposal,
2: Subsection (1) applies for—
a: the 2011–12 and later income years, except as given by paragraph (b); or
b: the 2010–11 and later income years for a person who is granted an extension of time for filing a return of income for the 2010–11 income year under the Canterbury Earthquake (Inland Revenue Acts) Order 2011
37: Total deductions in section EE 56
In section EE 60(5)(a)(ii) section EE 55(4) section EE 6(4)
38: Use of money interest payable by person
In section EF 5(2) income tax liability assessed liability
39: Spreading forward of deductions for repairs to fishing boats
1: In section EJ 2(1) Part 10 of the Maritime Transport Act 1994 Part 21 of the Maritime Rules made under the Maritime Transport Act 1994
2: In section EJ 2(6) fishing boat a fishing boat under Part 4 of the Fisheries Act 1983 a fishing vessel under section 103 of the Fisheries Act 1996
3: Subsections (1) and (2) apply for the 2008–09 and later income years.
40: Scheme for finding person's attributed CFC income or loss
1: In section EX 18A(2)(b)(i) subsection (3): subsection (3), for which the interest holder is not affected by an election under section EX 73:
2: Subsection (1) applies for income years beginning on or after 1 July 2009.
41: Attributable CFC amount
1: Section EX 20B(3)(f)
f: income from a business of insurance or from being an insurer: .
2: Subsection (1) applies for income years beginning on or after 1 July 2009.
42: Net attributable CFC income or loss
1: In section EX 20C(2) attributable CFC – apportioned funding income
2: Section EX 20C(3) to (11) Definition of items in formula
3: In the formula in subsection (2),—
a: attributable CFC
b: apportioned funding income
i: if the CFC is an entity carrying on a business of banking or insurance or is directly or indirectly controlled by such an entity, zero:
ii: if subparagraph (i) does not apply, the amount calculated using the formula— funding income × funding fraction × (1 – asset fraction):
c: apportioned funding costs funding costs × funding fraction × cost fraction:
d: other deductions Definition of items in formula
4: The items in the formulas in subsection (3)(b)(ii) and (c) are defined in subsections (5), (6), (8), (10), and (11). Funding income
5: Funding income attributable CFC
a: that provides funds for the CFC; and
b: for which there is no reasonable expectation, when the CFC enters the financial arrangement or when the terms of the financial arrangement are changed, that the CFC will have from the financial arrangement amounts that would be income for the CFC exceeding in total the amounts that would be deductions for the CFC, during—
i: the period that the CFC is a party to the financial arrangement:
ii: a period predictable in advance during which the CFC is a party to the financial arrangement. Funding fraction
6: Funding fraction
a: if the item funding
b: if the item is being used to calculate the item apportioned funding costs
c: if neither of paragraphs (a) and (b) apply, the amount calculated using the formula— funding – group funding funding. Definition of items in formula
7: In the formula in subsection (6),—
a: funding
i: a financial arrangement to which the CFC is a party and which provides funds for the CFC:
ii: a fixed rate foreign equity, or share giving a right to a deductible foreign equity distribution, issued by the CFC and held by a company that is a New Zealand resident or CFC:
b: group funding funding
i: under which the CFC provides funds to another CFC associated with the CFC under section YB 2 (Two companies); and
ii: that produces for the CFC an amount included in the item arrangement Asset fraction
8: Asset fraction attributable CFC's assets – group funding total CFC's assets – group funding. Definition of items in formula
9: In the formula in subsection (8),—
a: attributable CFC's assets
b: group funding
i: zero, if subparagraph (ii) does not apply; or
ii: the amount of the item group funding
c: total CFC's assets Funding costs
10: Funding costs
a: would be a deduction of the CFC relating to a financial arrangement to which the CFC is a party and which provides funds for the CFC:
b: is a distribution relating to fixed-rate foreign equity or a deductible foreign equity distribution of the CFC and is paid by the CFC to a company resident in New Zealand or to a CFC. Cost fraction
11: Cost fraction
a: if the CFC is not excessively debt funded under section EX 20D, the amount of the item asset fraction
b: if the CFC is excessively debt funded under section EX 20D, the lesser of—
i: the amount of the item asset fraction
ii: the amount calculated under section EX 20D.
3: In section EX 20C(7)(a)(ii) resident or CFC resident, a CFC, or a FIF for which the interest holder uses the attributable FIF income method
4: In section EX 20C(7)(b)(i) companies) companies) or to a FIF for which the interest holder uses the attributable FIF income method and that is associated with the CFC under section YB 2
5: In section EX 20C(10)(b) New Zealand or to a CFC New Zealand, to another CFC, or to a FIF for which the interest holder uses the attributable FIF income method
6: In section EX 20C(12) subsection (11) subsection (9)
7: After section EX 20C(12) Requirements for item other deductions
13: Amounts of expenditure or loss contribute to the item other deductions
a: the amounts do not relate to a financial arrangement or share and—
i: are incurred for the purpose of deriving an attributable CFC amount; and
ii: are not incurred for the purpose of deriving an amount that is not an attributable CFC amount; and
iii: are deductions of the CFC:
b: the amounts relate to financial arrangements or shares referred to in the definition of the item funding funding costs funding fraction apportioned funding costs
c: the amounts—
i: do not relate to financial arrangements that provide funds for the CFC; and
ii: relate to financial arrangements referred to in section EX 20B(4).
8: Subsections (1), (2), (6), and (7) apply for income years beginning on or after 1 July 2009.
9: Subsections (3), (4), and (5) apply for income years beginning on or after 1 July 2011.
43: Adjustment of fraction for excessively debt funded CFC
1: In section EX 20D fraction cost fraction
2: In section EX 20D(1) section EX 20C(8) the item (the CFC's cost fraction
3: In section EX 20D(9) Fraction Cost fraction
4: In section EX 20D(9) item fraction item cost fraction
5: In section EX 20D(10) fraction cost fraction
6: In section EX 20D(10) CFC's fraction CFC's cost fraction
7: Section EX 20D(10)
10: The formula for the CFC's cost fraction is— attributable foreign company assets total foreign company assets.
8: Subsection (7) applies for income years beginning on or after 1 July 2011.
44: Non-attributing active CFCs
1: Section EX 21B(1)
1: Non-attributing active CFC interest holder
a: for which the interest holder is not affected by an election under section EX 73 for the accounting period; and
b: that meets the requirements of subsection (2) or (3), alone or as part of a test group of companies under section EX 21D or EX 21E.
2: In section EX 21B group of companies
3: Subsection (1) applies for income years beginning on or after 1 July 2009.
45: Exemption for ASX-listed Australian companies
In section EX 31(2)(c) ASX Market Rules, made under Chapter 7 of the Corporations Act 2001 (Aust), ASX Operating Rules
46: Exemption for interest in FIF resident in Australia
1: Section EX 35(a)
a: at all times in the year, the item income interest .
2: Subsection (1) applies for income years beginning on or after 1 July 2011.
47: Section EX 39 repealed
1: Section EX 39
2: Subsection (1) applies for the 2012–13 and later income years.
48: Attributable FIF income method
1: Section EX 50(7B)(a)(i)
2: Section EX 50(7B)(b)
b: the FIF would meet the test for a non-attributing active CFC under section EX 21B(2)(b) if the items added passive reported revenue
i: relating to the FIF's interests in each member of a grouping of one or more foreign companies including the foreign company; and
ii: reported in the accounts of the FIF, or in the consolidated accounts of the FIF's test group under section EX 21E.
3: Section EX 50(7B)(c)
4: After section EX 50(7B) Requirements for test under subsection (7B)(b)
7C: In determining whether a FIF would meet the requirements of subsection (7B)(b) for an accounting period,—
a: the amounts required to be included in the items are—
i: amounts recognised in profit and loss under the equity method under whichever is appropriate of NZIAS 28, NZIAS 31, an equivalent IFRSE, and an equivalent standard or principle in the generally accepted accounting principles in the United States of America:
ii: amounts recognised in profit or loss under proportionate consolidation under whichever is appropriate of NZIAS 31, an equivalent IFRSE, and an equivalent standard or principle in the generally accepted accounting principles in the United States of America:
iii: dividends and net fair value changes recognised in profit or loss in relation to investments accounted for under whichever is appropriate of NZIAS 39, an equivalent IFRSE, and an equivalent standard or principle in the generally accepted accounting principles in the United States of America; and
b: an interest holder must not use the result of the test applied to the FIF and a foreign company as a member of a grouping of foreign companies if the interest holder uses for the period a result of the test applied to the FIF and a different grouping of foreign companies.
5: Subsections (1) to (4) apply for income years beginning on or after 1 July 2011.
49: Additional FIF income or loss if CFC owns FIF
1: Section EX 58(5)
5: Despite subsection (4), the CFC's FIF income or loss does not include an amount actuarially determined to be attributable to policyholders in the CFC or another company as a result of applying section EX 21(25) and (26) to the CFC.
2: Subsection (1) applies for income years beginning on or after 1 July 2011.
50: Limits on changes of method
1: In section EX 62(2)(b) section EX 46(3)(a) or (b) prevents section EX 46(3)(a) and (b) prevent
2: Subsection (1) applies for income years beginning on or after 1 July 2011.
51: Measurement of cost
1: After section EX 68(11) Optional transitional rule: interests excluded by section EX 39 until 2012–13 income year
12: For interests that were acquired by the person before 1 January 2005 and excluded by section EX 39 from being attributing interests until the beginning of the 2012–13 income year, the person may choose to treat the cost of every interest as being the market value of the interest at the beginning of the 2012–13 income year, for the purposes of the $50,000 threshold in sections CQ 5(1)(d) or (e) and DN 6(1)(d) or (e).
2: Subsection (1) applies for the 2012–13 and later income years.
52: New heading and new section EX 73
1: After section EX 72 Election relating to CFC or FIF
EX 73: Election that CFC not non-attributing active CFC or FIF not non-attributing active FIF
Election to have elective attributing CFC
1: A person (the interest holder
a: a CFC of the interest holder, in which the interest holder has an income interest of 10% or more, not be a non-attributing active CFC for the interest holder:
b: a FIF of the interest holder, for which the interest holder uses the attributable FIF income method, not be a non-attributing active FIF for the interest holder. Exception
2: The interest holder must not make an election under subsection (1) for a CFC or FIF that is—
a: an entity carrying on a business of banking or insurance or is directly or indirectly controlled by such an entity:
b: a non-attributing Australian CFC. Period of election
3: An election under subsection (1) is made for all accounting periods—
a: for a CFC, ending in the interest holder's income years beginning on or after 1 July 2009, if the notice—
i: specifies that the election is made under this paragraph or for that period; and
ii: meets the requirements of subsection (4); or
b: for a FIF, ending in the interest holder's income years beginning on or after 1 July 2011, if the notice—
i: specifies that the election is made under this paragraph or for that period; and
ii: meets the requirements of subsection (4); or
c: beginning in the interest holder's income years beginning after—
i: the date on which the notice is given to the Commissioner; or
ii: another date agreed by the Commissioner. Timing of retrospective election
4: A notice of election for a period given by subsection (3)(a) or (b) is not effective unless given to the Commissioner by the later of—
a: the end of the interest holder's income year in which this subsection receives the Royal assent:
b: a date allowed by the Commissioner. Currency of election
5: An election under subsection (1) remains effective until the beginning of the earliest income year—
a: for which the election is revoked under subsection (6):
b: in which the election ceases to be effective under subsection (7). Revoking election
6: The interest holder may revoke an election under subsection (1) if—
a: the interest holder gives notice of the revocation to the Commissioner before the beginning of the interest holder's first income year for which the notice is given; and
b: the interest holder satisfies the Commissioner that—
i: expenditure or loss of a CFC included, while the election is effective, in net attributable CFC income or loss for the interest holder is extremely unlikely to result after the revocation in an amount that would otherwise have been an attributable CFC amount for the CFC; and
ii: the revocation is not made for a purpose or effect of reducing a tax liability; and
c: the Commissioner agrees to the revocation. Expiry of election
7: An election by the interest holder under subsection (1) ceases to be effective in an income year if the election is for—
a: a CFC that in the income year ceases to be a CFC in which the interest holder has an income interest of 10% or more, except if the CFC becomes at that time a FIF for which the interest holder uses the attributable FIF income method, in which case the election becomes effective as if made for the FIF:
b: a FIF that in the income year ceases to be a FIF for which the interest holder uses the attributable FIF income method, except if the FIF becomes at that time a CFC meeting the requirements of subsection (8), in which case the election becomes effective as if made for the CFC:
c: a CFC or FIF that in the income year becomes an entity carrying on a business of banking or insurance or becomes directly or indirectly controlled by such an entity:
d: a CFC that becomes a non-attributing Australian CFC in the income year. Requirements for CFC to be affected by FIF election
8: For a CFC to be affected under subsection (7)(b) by an election,—
a: the interest holder must have an income interest of 10% or more in the CFC; and
b: the CFC must not be a non-attributing Australian CFC. Effect of expiry or revocation of election
9: If an election under subsection (1) ceases to be effective for a CFC or FIF,—
a: becoming effective for a FIF under subsection (7)(a) because the CFC becomes a FIF for which the interest holder uses the attributable FIF income method, the interest holder may carry forward under section IQ 1B (Losses carried forward to tax year) attributed CFC losses of the CFC to a later tax year as if they were FIF net losses that were attributed from the FIF when the CFC losses were attributed from the CFC:
b: becoming effective for a CFC under subsection (7)(b) because the FIF becomes a CFC of the interest holder in which the interest holder has an income interest of 10% or more, the interest holder may carry forward under section IQ 1B the FIF net losses of the FIF as if they were attributed CFC losses that were attributed from the CFC when the FIF losses were attributed from the FIF:
c: other than under paragraphs (a) and (b), the interest holder must not carry forward under section IQ 1B an attributed CFC loss from an elective attributing CFC, or a FIF net loss from an elective attributing FIF, to an income year for which the election for the CFC or FIF has ceased to be effective. Further election
10: The interest holder may make a further election under subsection (1) for a period given by subsection (3)(c) after an earlier election ceases to be effective, if—
a: the interest holder gives notice of the election to the Commissioner before the beginning of the interest holder's first income year for which the notice is given; and
b: the interest holder satisfies the Commissioner that—
i: the expiry of the earlier election was due to an oversight on the part of the interest holder or the CFC or FIF; and
ii: the interest holder gave notice of the further election within a reasonable time after the expiry; and
iii: the further election has no purpose or effect of allowing the attribution of deductions without the attribution of corresponding income; and
c: the Commissioner agrees to the election. Further election for entity by associate of original interest holder
11: An interest holder may not make an election under subsection (1) for a CFC or FIF for which an earlier election by a person associated with the interest holder has ceased to be effective, unless—
a: the interest holder gives notice of the proposed election to the Commissioner before the beginning of the interest holder's first income year for which the election is made; and
b: the interest holder satisfies the Commissioner that the proposed election has no purpose or effect of allowing the attribution of deductions without the attribution of corresponding income; and
c: the Commissioner agrees to the proposed election. Form and means of notice to Commissioner
12: A notice to the Commissioner under this section must be given in the form and by the means prescribed by the Commissioner. attributable FIF income method, attributed CFC loss, CFC, Commissioner, elective attributing CFC, elective attributing FIF, FIF, income interest, income year, net attributable FIF loss, non-attributing active CFC, non-attributing active FIF, non-attributing Australian CFC, notice .
2: Subsection (1) applies for income years beginning on or after 1 July 2009.
53: Part-year tax calculations
In section EY 5(4)
a: part-year calculation, as described part-year calculation immediately before the transfer, as described
b: reserve amounts, and reserve amounts immediately before the transfer, and
54: Shareholder base other profit: profit participation policies that are existing business
1: In section EY 28(8) existing business
a: in paragraph (a), 2009; or 2009:
b: in paragraph (b)(ii), 2009. 2009:
2: In section EY 28(8) existing business
c: the replacement of another policy (the replaced policy
i: the replaced policy was existing business under this subsection; and
ii: the replaced policy and the policy have the same substantial and material terms, conditions, and bonus entitlements ignoring any annual increase in life insurance cover that is less than 10% or is less than the annual percentage change in the consumer price index.
3: Subsections (1) and (2) apply––
a: on and after 1 July 2010, except if paragraph (b) applies:
b: for an income year that includes 1 July 2010 and later income years, if the life insurer chooses to apply the new life insurance rules in the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009
55: Transitional adjustments: life risk
1: Section EY 30(1)(a)
a: reinstating the old policy after either a lapse in premium payments or cancellation by the insured, if the new policy comes into force within 90 days of the lapse or cancellation, and the life insurer treats the new policy and old policy the same; or .
2: In section EY 30(1)(b) selling selling or transferring
3: In section EY 30(3)
a: in the words before the paragraphs the individual lives covered, if the policy is issued either the individual lives covered or a relevant underlying life insurance policy, if the multiple life policy (the policy
b: in paragraph (b), individual lives covered individual lives covered or relevant underlying life insurance policy
4: Section EY 30(3)(c)
c: to the extent to which, looking through to and in relation to the individual lives covered or relevant underlying policy,—
i: the cover was first in place before the grandparenting start day:
ii: the multiple life policy is a life reinsurance policy that was first in place before the grandparenting start day; and .
5: Subsections (1) to (4) apply––
a: on and after 1 July 2010, except if paragraph (b) applies:
b: for an income year that includes 1 July 2010 and later income years, if the life insurer chooses to apply the new life insurance rules in the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009
56: Property acquired after depreciable property affected by Canterbury earthquakes
1: Section EZ 23B(1)(a)
a: in or before the current year, receives insurance or compensation for items of depreciable property (the affected property
i: damage meeting the requirements of section EE 47(4) (Events for purposes of section EE 44); or
ii: a disposal and reacquisition under section EZ 23C.
2: In section EZ 23B(2)(b) subsection (7) subsection (8)
3: Subsection (1) applies for the 2010–11 to the 2015–16 income years.
57: New section EZ 23C
1: After section EZ 23B
EZ 23C: Insurance for Canterbury earthquake damage of property: deemed sale and purchase
When this section applies
1: This section applies for a person and an item of depreciable property and an income year (the current year
a: the item is damaged by a Canterbury earthquake as that term is defined in section 4 of the Canterbury Earthquake Recovery Act 2011; and
b: the person is entitled to an amount of insurance or compensation for the damage to the item; and
c: the item is assessed by the payer of the insurance or compensation (the insurer
d: the damage does not meet the requirements of section EE 47(4) (Events for purposes of section EE 44). Deemed sale and repurchase of item
2: The person is treated as, on the date of the Canterbury earthquake,—
a: disposing of the item for the amount of insurance or compensation; and
b: reacquiring the item for zero consideration. Relationship with section EE 52
3: This section overrides section EE 52 (Amount of depreciation recovery income when compensation received). amount, depreciable property, income year .
2: Subsection (1) applies for the 2010–11 to the 2015–16 income years.
58: New section EZ 23D
1: After section EZ 23C, the following is inserted:
EZ 23D: Insurance for Canterbury earthquake damage of property: limit on depreciation recovery income
When this section applies
1: This section applies for a person and an item of depreciable property and an income year (the current year
a: the item is damaged by a Canterbury earthquake as that term is defined in section 4 of the Canterbury Earthquake Recovery Act 2011; and
b: the person is entitled to an amount of insurance or compensation for the damage to the item; and
c: the damage does not meet the requirements of section EE 47(4) (Events for purposes of section EE 44); and
d: section EZ 23C does not apply for the item. Limit on depreciation recovery income under section EE 52
2: If the person would derive depreciation recovery income under section EE 52 (Amount of depreciation recovery income when compensation received) in an income year for the item in the absence of this section, the person derives in the income year an amount of depreciation recovery income equal to the lesser of—
a: the amount of depreciation recovery income under section EE 52 that the person would derive in the income year for the item in the absence of this section:
b: the total of the amounts of depreciation loss for which the person has been allowed deductions for the item. Relationship with section EE 52
3: This section overrides section EE 52. amount, deduction, depreciable property, depreciation loss, depreciation recovery income, income year .
2: Subsection (1) applies for the 2010–11 to the 2015–16 income years.
59: New section EZ 23E inserted
1: After section EZ 23D, the following is inserted:
EZ 23E: Item treated as available for use if access restricted due to Canterbury earthquake
An item of depreciable property is treated for an income year as being available for use while access to the item is affected by a restriction imposed due to the effects of a Canterbury earthquake (as defined in section 4 of the Canterbury Earthquake Recovery Act 2011), if—
a: the item was used or available for use immediately before the restriction was imposed; and
b: the item would be used or available for use in the absence of the restriction; and
c: the income year is the 2015–16 or an earlier income year. depreciable property, income year .
2: Subsection (1) applies for the 2010–11 to the 2015–16 income years.
60: New section EZ 23F inserted
1: After section EZ 23E, the following is inserted:
EZ 23F: Insurance for Canterbury earthquake damage causing disposal: optional timing rule for income, deductions
When this section applies
1: This section applies for a person and an item of depreciable property when—
a: the item is damaged by a Canterbury earthquake as that term is defined in section 4 of the Canterbury Earthquake Recovery Act 2011; and
b: the damage—
i: results in the item being affected by a disposal and reacquisition under section EZ 23C; or
ii: meets the requirements of section EE 47(4) (Events for purposes of section EE 44); and
c: the person is entitled to an amount of insurance or compensation for the damage to the item; and
d: the person chooses to apply this section for all items of depreciable property meeting the requirements of paragraphs (a) to (c). Attribution of income from insurance and disposal
2: If the amount of insurance or compensation for the damage (the insurance receipt
a: the 2015–16 income year:
b: the first income year in which—
i: the amount of the cost of disposing of the item (the disposal cost
ii: the insurance receipt is or has been derived or able to be reasonably estimated; and
iii: the consideration from the disposal of the item is or has been derived or able to be reasonably estimated. Attribution of deductions
3: If the disposal cost is incurred or able to be reasonably estimated before the end of the 2015–16 income year, the person's deductions for the disposal cost and for depreciation loss under section EE 48 (Effect of disposal or event) are attributed to the earlier of—
a: the 2015–16 income year:
b: the first income year in which—
i: the disposal cost is or has been incurred or able to be reasonably estimated; and
ii: the insurance receipt is or has been derived or able to be reasonably estimated; and
iii: the consideration from the disposal of the item is or has been derived or able to be reasonably estimated. Relationship with other sections
4: This section overrides sections EE 1, EE 22, and EE 48 (which state when depreciation loss and depreciation recovery income arise) in relation to the timing of the person's—
a: income from the insurance receipt and consideration from the disposal of the item:
b: deductions for the disposal cost and depreciation loss. amount, building, deduction, grandparented structure, income, income year .
2: Subsection (1) applies for the 2010–11 to the 2015–16 income years.
61: New section EZ 23G inserted
1: After section EZ 23F, the following is inserted:
EZ 23G: Insurance for repairs of Canterbury earthquake damage: optional timing rule for income, deductions
When this section applies
1: This section applies for a person and an item of depreciable property when—
a: the item is damaged by a Canterbury earthquake as that term is defined in section 4 of the Canterbury Earthquake Recovery Act 2011; and
b: the damage—
i: does not result in the item being subject to a disposal and reacquisition under section EZ 23C; and
ii: does not meet the requirements of section EE 47(4) (Events for purposes of section EE 44); and
c: the person is entitled to an amount of insurance or compensation for the damage to the item; and
d: the person chooses to apply this section for all items of depreciable property meeting the requirements of paragraphs (a) to (c). Attribution of income from insurance
2: If the amount of insurance or compensation for the damage (the insurance receipt
a: the 2015–16 income year:
b: the first income year in which—
i: the amount of expenditure for total repair of the damage (the repair cost
ii: the insurance receipt is or has been derived or able to be reasonably estimated. Attribution of deductions for repairs
3: If the repair cost is incurred or able to be reasonably estimated before the end of the 2015–16 income year, the person's deductions for the repair cost are attributed to the earlier of—
a: the 2015–16 income year:
b: the first income year in which—
i: the repair cost is or has been incurred or able to be reasonably estimated; and
ii: the insurance receipt is or has been derived or able to be reasonably estimated. Relationship with other sections
4: This section overrides sections CG 4, EE 22, and EE 52 (which provide for receipts of insurance or indemnity payments) in relation to the timing of the person's—
a: income from the insurance receipt:
b: deductions for the repair cost. amount, deduction, income, income year .
2: Subsection (1) applies for the 2010–11 to the 2015–16 income years.
62: Section EZ 32 repealed
Section EZ 32
63: Section EZ 32C repealed
1: Section EZ 32C
2: Subsection (1) applies for income years beginning on or after 1 July 2009.
64: New section EZ 32D
1: Before the heading before section EZ 33
EZ 32D: Value of asset fraction: CFC with excessive debt funding and loan entered before 21 June 2012
When this section applies
1: This section applies when a CFC is excessively debt funded under section EX 20D (Adjustment of cost fraction for excessively debt funded CFC) and entered before 21 June 2012 a financial arrangement (an old funding arrangement
2: The amount of the item apportioned funding income
a: an amount calculated using the formula in section EX 20C(3)(b)(ii) (Net attributable CFC income or loss) with—
i: a value for the item funding income
ii: a value for the item asset fraction cost fraction
b: an amount calculated using the formula in section EX 20C(3)(b)(ii) with a value for the item funding income Relationship with section EX 20C
3: This section overrides section EX 20C(3)(b)(ii). CFC, financial arrangement .
2: Subsection (1) applies for income years beginning on or after 1 July 2009.
65: New section EZ 32E
1: After section EZ 32D, the following is inserted:
EZ 32E: Change in section EX 20B for income of CFC insurer: interest on terminal tax
When section applies
1: This section applies when a person has a liability for terminal tax (the resulting liability
a: for an income year beginning on or after 1 July 2009; and
b: relating to a return of income provided to the Commissioner before the date on which the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (the amending Act
c: that the person would not have but for the replacement by the amending Act of section EX 20B(3)(f) (Attributable CFC amount) coming into force on 1 July 2009. No liability for interest for period
2: The person is not liable to pay interest under Part 7 of the Tax Administration Act 1994 in relation to the resulting liability for the period beginning with 1 July 2009 and ending on the later of—
a: 30 June 2012:
b: a date fixed by the Commissioner for the payment of the resulting liability. Relationship with Tax Administration Act 1994
3: This section overrides Part 7 of the Tax Administration Act 1994. Commissioner, income year, return of income, tax position, terminal tax .
2: Subsection (1) applies for income years beginning on or after 1 July 2009.
66: Disposal and acquisition upon entry
In section EZ 63 portfolio-listed company
67: Transfer at market value
In section FC 2(3) subsection section
68: Alternative apportionment of interest by some excess debt entities
In section FE 6B(3)(a) is the deductions net interest
69: Measurement dates
1: In section FE 8(4) the first measurement date for the new reporting bank is the day the first measurement period for the new reporting bank begins on the day
2: Subsection (1) applies for the 2008–09 and later income years.
70: Banking group's equity threshold
1: In section FE 19(1) 0.06 × (risk-weighted exposures – deductions from equity value).
2: Subsection (1) applies for measurement dates under section FE 8(3)
71: Some general rules for treatment of consolidated groups
1: In section FM 6(3)(c) GB 40,
2: Subsection (1) applies for income years beginning on or after 1 July 2012.
72: Transactions between group companies: income
1: In section FM 8(3)(b)(ii) if the parties were not group companies if the parties were not consolidated group companies
2: Subsection (1) applies for the 2008–09 and later income years, except for a tax position that is inconsistent with subsection (1) and is taken in a tax return filed before 14 September 2011.
73: New heading and section FZ 7
1: After section FZ 6 Earthquake-affected group property
FZ 7: Valuation of group assets: insurance proceeds from Canterbury earthquake
When this section applies
1: This section applies for the purposes of sections FE 16 and FE 18 (which relate to the valuation of the assets of a person's New Zealand group and worldwide group) and a person if—
a: an asset of the person's New Zealand group is damaged as a result of a Canterbury earthquake, as that term is defined in section 4 of the Canterbury Earthquake Recovery Act 2011; and
b: the asset is impaired, or derecognised, under generally accepted accounting practice as a result of the damage; and
c: insurance for the damage is recognised at a later date under generally accepted accounting practice. Optional treatment of insurance
2: The person may choose to include an amount of the insurance, corresponding to the amount of the impairment or the derecognised value of the asset, in the value of the total group assets of the person's New Zealand group during the period—
a: beginning with the impairment or derecognition of the asset; and
b: ending before the earlier of—
i: the recognition of the amount of insurance:
ii: the beginning of the 2016–17 income year. Corresponding treatment for worldwide group
3: If a person includes an amount under subsection (2) in the value of the total group assets of the person's New Zealand group for a period, the person must include the amount in the value of the total group assets of the person's worldwide group for the period. Notice to Commissioner
4: A person choosing to apply subsection (2) for an income year must give to the Commissioner—
a: notice that the person has applied this section for the income year; and
b: the amount of income that would arise under section CH 9 (Interest apportionment: excess debt entity) for the income year in the absence of this section; and
c: the amount of income that arises under section CH 9 for the income year after the application of this section; and
d: further information required by the Commissioner. Form and timing of notice
5: The information required by subsection (4) must be given—
a: in the form and by the means prescribed by the Commissioner; and
b: no later than the later of 30 November 2012 and the day by which the person is required to make a return of income for the corresponding tax year. Commissioner, generally accepted accounting practice, income year, return of income, total group assets .
2: Subsection (1) applies for income years ending after 4 September 2010 and before the 2016–17 income year.
74: Benefits provided to employee's associates
1: In section GB 32(1)(d) exemption in subsection (2) does exemptions in subsections (2) and (2B) do
2: After section GB 32(2) Exemption for LTCs and partnerships
2B: Subsection (3) does not apply when—
a: the benefit is provided by an employer that is––
i: an LTC:
ii: a partnership or limited partnership; and
b: the person associated with the employee, described in subsection (1)(a), is—
i: an owner of the relevant LTC:
ii: a partner of the relevant partnership or limited partnership.
3: In section GB 32 limited partnership LTC partner partnership
75: Grandparenting requirement
1: In section HA 7B 1 April 2011 1 April 2011 and must not have amalgamated, on or after the date on which the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 receives the Royal assent, with another company that is not a qualifying company
2: In section HA 7B amalgamation
76: No CFC income interests or FIF direct income interests of 10% or more
In section HA 8B attributing interest
77: Measuring effective interests
In section HA 44(1) control and ownership ownership
78: Look-through companies are transparent
After section HB 1(5) Elections and methods
6: Inland Revenue Act elections and methods relating to an LTC are chosen by the company ignoring subsection (4), and then subsection (4) applies so that the elections and methods are those of an owner of an effective look-through interest for the look-through company.
79: Disposal of financial arrangements and certain excepted financial arrangements
In section HB 8(1)(b) owners do not derive income from look-through company does not have
80: Limitation on deductions by persons with interests in look-through companies
1: In section HB 11(5)(c) paragraph (b) paragraph (b) by the person or another person
2: Section HB 11(7)(a)
a: income that the person has by virtue of section HB 1 in the income year and previous income years:
ab: if the person has FIF income or a FIF loss, an amount under subsection (7B): .
3: After section HB 11(7) Formula
7B: The amount described in subsection (7)(ab) is given by the following formula, but if the calculation returns a negative number, the amount is zero: dividend – FIF amount. Definition of items in formula
7C: In the formula,—
a: dividend
b: FIF amount
i: zero, if subparagraph (ii) does not apply:
ii: the amount that is the person's FIF income, for the relevant income year and FIF, if the person has such an amount.
4: Section HB 11(12) Some definitions
12: In this section,–– guarantor
a: a person ( person A
i: person A, ignoring section HB 1, secures the relevant debt by guarantee or indemnity:
ii: an owner's associate of person A secures the relevant debt by guarantee or indemnity:
b: a person who is not described in paragraph (a)(i) and (ii) but who secures the relevant debt by guarantee or indemnity, if person A or an owner's associate also secures the relevant debt as described in paragraph (a)(i) or (ii) look-through company deduction owner's associate
a: a relative of a person who has an effective look-through interest for the LTC:
b: a trustee who is associated in their capacity of trustee, with a person who has an effective look-through interest for the LTC recourse property secured amounts
a: the amount of the look-through company's debt ignoring section HB 1 (the secured debt
b: the market value of the recourse property for the secured debt to the extent of the interest that the person and their owner's associates have in it, net of higher-ranking calls whether actual, future or contingent, divided by the total number of guarantors described in paragraph (a) of the definition of guarantor
5: In section HB 11 FIF loss guarantor owner's associate recourse property
81: LTC elections
In section HB 13(5) subsections (1)(b) and (2) subsection (1)(a) and (d)
82: Taxable distributions from foreign trusts
1: In section HC 18 section CV 13(b) section CV 13(c)
2: Subsection (1) applies for the 2008–09 and later income years.
83: Trustees' obligations
1: Section HC 24(2 No tax credits
2: In determining the income tax liability, the trustee is not entitled to have a tax credit under subparts LC and LD (which relate to tax credits for natural persons and for certain gifts).
2: Subsection (1) applies for the 2009–10 and later income years.
84: Foreign-sourced amounts: non-resident trustees
1: In section HC 25(1) when a non-resident trustee derives when a non-resident trustee derives, as trustee income,
2: Subsection (1) applies for the 2008–09 and later income years.
85: Limitation on deductions by partners in limited partnerships
1: Section HG 11(7)(a)
a: income that the partner has by virtue of section HG 2 in the income year and previous income years:
ab: if the partner has FIF income or a FIF loss, an amount under subsection (7B): .
2: After section HG 11(7) Formula
7B: The amount described in subsection (7)(ab) is given by the following formula, but if the calculation returns a negative number, the amount is zero: dividend – FIF amount. Definition of items in formula
7C: In the formula,—
a: dividend
b: FIF amount
i: zero, if subparagraph (ii) does not apply:
ii: the amount that is the person's FIF income, for the relevant income year and FIF, if the person has such an amount.
3: In section HG 11(12) capital contribution capital contribution
a: a capital contribution for the purposes of the Limited Partnerships Act 2008:
b: amounts that the limited partnership is debtor for in relation to the partner, including a loan to the limited partnership and a credit balance in a current account .
4: In section HG 11(12) capital contribution guarantor
a: a partner, if––
i: the partner secures the relevant debt by guarantee or indemnity:
ii: the partner's associate secures the relevant debt by guarantee or indemnity:
b: a person who is not described in paragraph (a)(i) and (ii) but who secures the relevant debt by guarantee or indemnity, if the partner or a partner's associate also secures the relevant debt as described in paragraph (a)(i) or (ii) .
5: In section HG 11(12) partner's associate partner partner, but excluding a person under section YA 1 (Definitions), definition of relative
6: In section HG 11(12) secured amounts recourse property secured amounts
a: the amount of the limited partnership's debt ignoring section HG 2 (the secured debt
b: the market value of the recourse property for the secured debt to the extent of the interest that the partner and the partner's associates have in it, net of higher-ranking calls whether actual, future, or contingent, divided by the total number of guarantors described in the definition of guarantor
7: In section HG 11 FIF loss
8: In section HG 11 guarantor recourse property secured amounts
9: In section HG 11 loan
86: Portfolio entity tax liability and tax credits of portfolio tax rate entity for period
1: After section HL 21(9) Amounts excluded from determination of prescribed investor rate
9B: For the purposes of subsection (9) and the determination of a person's prescribed investor rate, the person's taxable income does not include an amount that—
a: arises because their portfolio investor rate is lower than their prescribed investor rate; and
b: is treated as taxable income because section CX 56 (Attributed income of certain investors in multi-rate PIEs) does not apply.
2: Section HL 21(13)
3: Subsection (1) applies for the 2008–09 and later income years.
87: Foreign PIE equivalents
1: After the heading for section HM 3 General definition
2: After section HM 3(e) Australian managed investment trusts
2: A trust that is, for Australian tax purposes, a managed investment trust under the Taxation Administration Act 1953 (Australia) is a foreign PIE equivalent if it meets the requirement in subsection (1)(a).
88: What is an investor class?
1: After section HM 5(4) Supplementary dividends
5: For the purposes of this section, the payment of a supplementary dividend that is attributed to a notified foreign investor, or would be attributed to them in the absence of section HM 44B(2), is disregarded.
2: In section HM 5 supplementary dividend
3: Subsections (1) and (2) apply for the 2013–14 and later income years.
89: Section HM 6B replaced
1: Section HM 6B
HM 6B: Optional look-through rules for certain PIEs
When this section applies
1: This section applies when a PIE (a retail PIE wholesale PIE Look-through treatment
2: The retail PIE may choose to apply a look-through approach in relation to its investor interest, treating the attributed PIE income or attributed PIE loss as consisting of—
a: the proportion of the assessable income derived by the wholesale PIE that corresponds to the investor interest; and
b: the proportion of the expenditure or loss incurred by the wholesale PIE that corresponds to the investor interest. Sufficient information held by PIE
3: In choosing to apply this section, the retail PIE must have sufficient information to enable it to account for the income, expenditure, or loss, and to discharge its tax obligations in relation to those amounts. Inter-PIE transactions
4: In the application of subsections (1) to (3), any transaction or attribution between the wholesale PIE and retail PIE relating to the income or expenditure is ignored. Foreign investment PIEs
5: When a retail PIE that is a foreign investment variable-rate PIE derives an amount allowable under section HM 55G through having an investor interest in a wholesale PIE that meets the requirements of section HM 19B(1), the retail PIE may treat the amount as a foreign-sourced amount. amount, assessable income, attributed PIE income, attributed PIE loss, foreign investment variable-rate PIE, foreign-sourced amount, investor interest, PIE .
2: Subsection (1) applies for the 2012–13 and later income years.
90: Investment types
1: Section HM 11(2)
2: In section HM 11(3) subsection (1)(a) subsection (1)(a) and modifies subsection (1)(d)
91: Income sources
In section HM 12(2) section HM 19B(2) section HM 19B(1)
92: Minimum number of investors
In section HM 14(1) a company listed on a recognised exchange in New Zealand a listed PIE
93: Same rights to all investment proceeds
1: Section HM 17(3) Exclusions
3: This section does not apply if—
a: the proceeds are category B income:
b: for a single investor class, the only income that the class derives is income under section CC 3 (Financial arrangements).
2: After section HM 17(3) Supplementary dividends
4: For the purposes of this section, the payment of a supplementary dividend that is attributed to a notified foreign investor, or would be attributed to them in the absence of section HM 44B(2), is disregarded.
3: In section HM 17 income investor class notified foreign investor supplementary dividend
4: Subsection (2) applies for the 2013–14 and later income years.
94: Modified rules for foreign investment variable-rate PIEs
1: In section HM 19C(1) section HM 11(a) section HM 11(1)(a)
2: In section HM 19C(2) section HM 12(a) and (b)(v) section HM 12(1)(a) and (b)(iv) and (v)
3: Subsections (1) and (2) apply for the 2012–13 and later income years.
95: Ending of New Zealand residence
Section HM 24
HM 24: Immediate loss of PIE status
An entity loses PIE status immediately if it does not meet—
a: the residence requirements of section HM 8:
b: the requirements of section HM 9 about the nature of the entity:
c: the requirements of section HM 17 concerning rights to investment proceeds. PIE .
96: When foreign PIE equivalent no longer meets requirements
1: Section HM 30(1)
1: A foreign PIE equivalent loses its status immediately if—
a: it becomes resident in New Zealand:
b: it is treated under a double tax agreement as resident in New Zealand.
2: In section HM 30 double tax agreement
97: Rules for and treatment of investors in multi-rate PIEs
Section HM 32(3)
3: An investor in a foreign investment PIE who notifies the PIE under section HM 55D(2) of their wish to become a notified foreign investor is treated as having notified the PIE of a tax rate under subsection (1).
98: Attribution periods
1: In section HM 34 a tax year a tax year or an income year, as applicable,
2: In section HM 34(b) the tax year the income year
3: In section HM 34 income year
4: Subsections (1) and (2) apply for the 2010–11 and later income years.
99: Determining net amounts and taxable amounts
1: In section HM 35(3)(a) received for the income: received for the income but not including the amount of any supplementary dividends:
2: Subsection (1) applies for the 2013–14 and later income years.
100: Treatment of certain provisions made by multi-rate PIEs
In section HM 35B(1)(b)(i) portfolio
101: Determining amounts for notified foreign investors
1: After section HM 35C(4) Treatment of certain transitional residents
5: For the purposes of this section, a transitional resident who has chosen under section HM 55D(9) to use the specified prescribed investor rate is treated as if they were a notified foreign investor. When subsection (7) applies
6: Subsection (7) applies for the purposes of section HM 35 for a notified foreign investor (a qualifying investor Assessable income and supplementary dividends
7: For the purposes of section HM 35(3)(a), the assessable income of the PIE is the total amount of the PIE's assessable income attributed to the class of qualifying investors for the attribution period, including any supplementary dividends to which the qualifying investors are entitled.
2: In section HM 35C prescribed investor rate transitional resident
3: Subsection (1) applies for the 2013–14 and later income years.
102: Quarterly calculation option
1: In section HM 43(3) as a zero-rated investor as zero-rated
2: In section HM 43 zero-rated investor
103: NRWT calculation option
1: After section HM 44B(1) When this section also applies: supplementary dividends
1B: This section also applies when—
a: a foreign investment PIE—
i: derives a dividend with imputation credits attached from a company resident in New Zealand together with a related supplementary dividend; and
ii: has, as an investor, a notified foreign investor who meets the requirements of section LP 2(1)(a) (Tax credits for supplementary dividends); and
iii: pays the investor an amount that represents the total amount of the dividend and supplementary dividend that would be attributed to the investor in the absence of subsection (2); and
iv: pays the amount by the date on which the PIE is required to pay its income tax liability under section HM 42 or HM 43, as applicable; and
b: the PIE chooses to calculate and pay the tax liability in relation to the amount under subpart RF.
2: In section HM 44B(2) the amount represents an unimputed portion of the dividend the amount represents either an unimputed portion of the dividend, or a dividend together with a related supplementary dividend, as applicable
3: In section HM 44B(3) represents an unimputed portion of the dividend represents either an unimputed portion of the dividend, or a dividend together with a related supplementary dividend, as applicable
4: After section HM 44B(4) Relationship with section HM 35(8)
5: When a foreign investment PIE derives a dividend and related supplementary dividend as described in subsection (1B), the allocation rule set out in section HM 35(8) does not apply. The dividend and related supplementary dividend are treated as having been allocated on the date on which ownership of the shares determines a legal entitlement to the dividend.
5: In section HM 44B supplementary dividend
6: Subsections (1) to (4) apply for the 2013–14 and later income years.
104: Attributing credits to investors
1: Section HM 50(1)
1: This section applies when a multi-rate PIE has a tax credit other than a tax credit under subpart LS (Tax credits for multi-rate PIEs and investors).
2: After section HM 50(4) Supplementary dividends and foreign investment PIEs
5: For the purposes of this section and for a payment of a dividend and related supplementary dividend to a foreign investment PIE, the dividend is treated as if it were divided into separate dividends as follows:
a: a dividend of an amount that represents the part to which the notified foreign investors in the PIE who meet the requirements of section LP 2(1)(a) (Tax credits for supplementary dividends) are entitled; and
b: a dividend of an amount that represents the remaining part to which all investors other than those referred to in paragraph (a) are entitled. Imputation credits: first part
6: The imputation credits for the dividend referred to in subsection (5)(a) are treated as attached to that part as if it were a separate dividend. Imputation credits: second part
7: The imputation credits for the dividend referred to in subsection (5)(b) are treated as attached to that part as if it were a separate dividend not payable to a non-resident.
3: In section HM 50 foreign investment PIE notified foreign investor supplementary dividend
4: Subsection (2) applies for the 2013–14 and later income years.
105: Use of foreign tax credits by PIEs
1: In section HM 51(1)(c) foreign investment PIE. foreign investment PIE:
d: a transitional resident who chooses under section HM 55D(8) to use a prescribed investor rate set out in schedule 6, table 1, row 10 (Prescribed rates: PIE investments and retirement scheme contributions).
2: In section HM 51 prescribed investor rate transitional resident
3: Subsection (1) applies for the 2013–14 and later income years.
106: Use of tax credits other than foreign tax credits by PIEs
1: In section HM 53(1)(b)(iii) an imputation credit. an imputation credit:
iv: a transitional resident who chooses under section HM 55D(8) to use a prescribed investor rate set out in schedule 6, table 1, row 10 (Prescribed rates: PIE investments and retirement scheme contributions).
2: In section HM 53 prescribed investor rate transitional resident
3: Subsection (1) applies for the 2013–14 and later income years.
107: New section HM 55FB inserted
1: After section HM 55F
HM 55FB: Notified foreign investors and tax credits for supplementary dividends
When this section applies
1: This section applies when—
a: a foreign investment PIE has an investment consisting of shares in a company resident in New Zealand; and
b: a notified foreign investor in the PIE is a non-resident who meets the requirements of section LP 2(1)(a) (Tax credits for supplementary dividends); and
c: the company has declared a dividend to be paid on a later date. Notification by PIE
2: The PIE must notify the company of the investors referred to in subsection (1)(b) who have an investor interest in the PIE on the date on which ownership of the shares determines a legal entitlement to the dividend. The PIE must provide the information before the date of payment of the dividend. Sufficient information
3: The information provided by the PIE about the investor must be sufficient to enable the calculation and payment of a supplementary dividend to the PIE in relation to the investor. Calculation and payment of supplementary dividend
4: The company must use the information provided by the PIE in calculating and paying the supplementary dividend. company, dividend, foreign investment PIE, investor interest, non-resident, notified foreign investor, pay, resident in New Zealand, share, supplementary dividend .
2: Subsection (1) applies for the 2013–14 and later income years.
108: Prescribed investor rates for certain investors: 0%
Section HM 57(d)
109: Use of investor classes' losses
1: In section HM 64(3) other than a zero-rated investor other than a zero-rated investor or an investor treated under section HM 61 as zero-rated
2: Section HM 64(4)
4: For a notified foreign investor in a foreign investment PIE, the amount is disregarded.
110: Use of land losses of investor classes
Section HM 65(5)
5: For a notified foreign investor in a foreign investment PIE, the amount of land loss is disregarded.
111: Qualifying companies: transition into partnership
1: In section HZ 4B(5) subsection (2) subsection (2) for the transitional income year and later years
2: Section HZ 4B(5)(a)
a: for calculating amounts under section HG 11(5)(a) for shares that were held at the end of the income year (the last year .
112: Qualifying companies: transition into look-through companies
1: In section HZ 4C(2) the look-through company the look-through company for the transitional income year and later years
2: Section HZ 4C(2)(a)
a: for calculating amounts under section HB 11(5)(a) for shares that were held at the end of the income year (the last year .
113: Restrictions relating to schedular income
Section IA 8(1)(d)
114: Ring-fencing cap on attributed CFC net losses
1: Section IQ 2(1) Amount subtracted: losses not from elective attributing CFCs or elective attributing FIFs
1: The total amount of attributed CFC net loss and FIF net loss, relating to a CFC or FIF (the loss entity
a: the total amount of attributed CFC income, and FIF income calculated under the attributable FIF income method or branch equivalent method, that the person derives in the tax year in relation to a CFC or FIF that is resident in the jurisdiction for the accounting period corresponding to the tax year:
b: the total amount of attributed CFC net loss and FIF net loss—
i: relating to the loss entity and the jurisdiction; and
ii: carried forward to the tax year or made available in the tax year to the person by another company in the same group; and
iii: available to the person under subsection (1B), (1C), or section IQ 3. Amount subtracted: losses from elective attributing CFCs or elective attributing FIFs
1BA: The total amount of attributed CFC net loss and FIF net loss, relating to an elective attributing CFC or elective attributing FIF (the loss entity
a: the total amount of attributed CFC income, and FIF income calculated under the attributable FIF income method or branch equivalent method, that the person derives in the tax year in relation to an elective attributing CFC or elective attributing FIF—
i: with the same election commencement date as the loss entity; and
ii: resident in the jurisdiction for the accounting period corresponding to the tax year:
b: the total amount of attributed CFC net loss and FIF net loss—
i: relating to the loss entity and the jurisdiction; and
ii: carried forward to the tax year or made available in the tax year to the person by another company in the same group; and
iii: available to the person under subsection (1B), (1C), or section IQ 3.
2: In section IQ 2 elective attributing CFC elective attributing FIF
3: Subsection (1) applies for income years beginning on or after 1 July 2009.
115: Meaning of charitable or other public benefit gift
In section LD 3
a: charitable or other public benefit gift
b: charitable or other public benefit gift
116: Credits for persons who are non-resident or who receive exempt income
1: In section LF 8(1)(b) CW 9 to CW 11 CW 9 and CW 10
2: Subsection (1) applies for income years beginning on or after 1 July 2009.
117: Repaid foreign tax: effect on income tax liability
1: In section LJ 7(3)(b) the foreign income the foreign-sourced income
2: Subsection (1) applies for the 2008–09 and later income years.
118: Tax credits for supplementary dividends
1: After section LP 2(1)(a)
c: a foreign investment PIE if—
i: a notified foreign investor (a qualifying investor
ii: an amount representing the dividend and the related supplementary dividend is attributed to the qualifying investor, or would be attributed to them in the absence of section HM 44B(2) (NRWT calculation option); and
iii: the PIE notifies the company under section HM 55FB (Notified foreign investors and tax credits for supplementary dividends), providing the relevant information on those qualifying investors who have an entitlement to the dividend and related supplementary dividend.
2: After section LP 2(3) When dividends derived by foreign investment PIEs
3B: For the purposes of subsection (1)(c) and the calculation of the amount of the credit, the following apply in relation to a qualifying investor in a foreign investment PIE:
a: the item attached imputation credit
b: the relevant amount of the dividend and related supplementary dividend is treated as if it were paid by the company directly to the investor:
c: the investor's voting interest in the company is treated as if it were a direct voting interest.
3: Subsections (1) and (2) apply for the 2013–14 and later income years.
119: Section LZ 1 repealed
Section LZ 1
120: Meaning of full-time earner for family scheme
1: In section MA 7(2)(c) leave. leave:
d: a person who receives or will receive weekly compensation from the Accident Compensation Corporation as a surviving spouse or partner of a deceased claimant is treated as being employed, during the week to which that compensation relates, for the number of hours that the deceased claimant would have been employed for in a week before dying, but for their incapacity. The number of hours under this paragraph are in addition to the person's own hours.
2: In section MA 7(3) subsection (2)(b) subsection (2)(b) and (d)
121: Adjustments for calculation of family scheme income
In section MB 1 income statement
122: Treatment of distributions from superannuation schemes
1: Section MB 5(2)
2: This section does not apply to a person who receives a distribution from a superannuation scheme—
a: as a result of and on or after the person's retirement from employment with an employer who was a contributor to the scheme:
b: if the superannuation scheme is a KiwiSaver scheme or a complying superannuation fund.
2: In section MB 5 complying superannuation fund KiwiSaver scheme
123: Family scheme income from other payments
After section MB 13(2)(k)
kb: a payment of a foster care allowance under section 363 of the Children, Young Persons, and Their Families Act 1989: .
124: Third requirement: residence
Section MC 5(2)(a)
a: has been—
i: both a New Zealand resident and present in New Zealand for a continuous period of 12 months at any time; and
ii: resident in New Zealand under section YD 1 (Residence of natural persons) on the days for which a tax credit arises under section MD 1 (Abating WFF tax credit) or ME 1 (Minimum family tax credit); and .
125: Third requirement: residence
1: Section MD 7(2)(a)
a: has been—
i: both a New Zealand resident and present in New Zealand for a continuous period of 12 months at any time; and
ii: resident in New Zealand under section YD 1 (Residence of natural persons) on the days for which a tax credit arises under section MD 1; and .
2: In section MD 7 resident
126: Fifth requirement: full-time earner
1: In section MD 9(1) receiving income from a work activity
2: Section MD 9(1) Normally full-time earner
1: The fifth requirement for an entitlement to an in-work tax credit is that either or both the person referred to in section MD 4 and their spouse, civil union partner, or de facto partner, is normally a full-time earner (the earner
a: derive income as set out in subsections (2) and (3) as a full-time earner or derive an amount of compensation described in subsection (4); or
b: if they are a full-time earner in relation to a close company, be a major shareholder in the close company, and the company must derive gross income in the income year.
3: In section MD 9 close company income year major shareholder
127: Calculation of in-work tax credit
1: In section MD 10(3)(d)(i) refers refers or is a full-time earner described in section MD 9(1)(b)
2: In section MD 10(3)(d)(ii) paragraph subparagraph
3: In section MD 10(3)(d)(ii) refers refers or is a full-time earner described in section MD 9(1)(b)
128: General rules for companies with imputation credit accounts
1: In section OB 1(2)(a)(iv) to CW 11 and CW 10
2: Subsection (1) applies for income years beginning on or after 1 July 2011.
129: ICA payment of tax
1: After section OB 4(3)(g)
gb: further income tax applied under section OC 34 (Further income tax paid satisfying liability for income tax) to pay income tax; or .
2: Subsection (1) applies for income years beginning on or after 1 July 2009.
130: ICA payment of schedular income tax
In section OB 29(1) section CR 3, CV 16, or CV 17 (which relate to non-resident insurers, shippers, and film renters) section CR 3 (Income of non-resident general insurer) or CV 16 (Non-resident shippers)
131: Payment of further income tax for closing debit balance
1: After section OC 30(2) FDP credit for payment under subsection (1)
4: An FDPA company has an FDP credit for an amount of further income tax paid under subsection (1).
2: In section OC 30 FDP credit
3: Subsection (1) applies for income years beginning on or after 1 July 2009.
132: Payment of further income tax when company no longer New Zealand resident
1: After section OC 31(3) FDP credit for payment under subsection (1)
5: A company that stops being an FDPA company has an FDP credit for an amount of further income tax paid under this section.
2: In section OC 31 FDP credit
3: Subsection (1) applies for income years beginning on or after 1 July 2009.
133: Table O4: FDP debits
1: Table O4, row 8 is omitted.
2: Subsection (1) applies for income years beginning on or after 1 July 2011.
134: BETA payment of income tax
1: In section OE 7(6) the total income tax liability for the attributed CFC income referred to in subsection (3) the income tax liability for the income year of the company having the attributed CFC income
2: Section OE 7(7)(b)
b: tax liability .
3: Section OE 7(8
135: Consolidated ICA payment of schedular income tax
In section OP 27(1) section CR 3, CV 16, or CV 17 (which relate to non-resident insurers, shippers, and film renters) section CR 3 (Income of non-resident general insurer) or CV 16 (Non-resident shippers)
136: Consolidated BETA payment of income tax
1: In section OP 101(4B) the total income tax liability for the attributed CFC income referred to in subsection (1) the income tax liability for the income year of the company or the consolidated BETA group having the attributed CFC income
2: Section OP 101(4C)(b)
b: tax liability .
137: Who is required to pay provisional tax?
In section RC 3(2)(b) referred to in section 33A(1) who meets the requirements of section 33AA(1)
138: Alternate rate option
In section RD 59(4) pay of each employee FBT payable for each employee
139: ESCT rules and their application
1: In section RD 64(2) employer who makes an employer's superannuation contribution employer or a person who makes an employer's superannuation cash contribution
2: In section RD 64 employer's superannuation contribution employer's superannuation cash contribution
3: Subsections (1) and (2) do not apply for a tax position that is inconsistent with subsections (1) and (2) and that is taken in a tax return filed before the date on which the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Bill was introduced.
140: Employer's superannuation cash contributions
1: Section RD 65(1) Contribution in money for benefit of employees or past employees
1: An employer's superannuation cash contribution
a: an employer's superannuation contribution:
b: made by a person for the benefit of 1 or more of their past employees.
2: In section RD 65(3) An employer who makes an employer's superannuation cash contribution on behalf of an employee An employer or person who makes an employer's superannuation cash contribution on behalf of an employee or past employee
3: In section RD 65(3) Subsection (4) overrides this subsection.
4: Subsections (1) and (2) do not apply for a tax position that is inconsistent with subsections (1) and (2) and that is taken in a tax return filed before the date on which the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Bill was introduced.
141: Calculating amounts of tax for employer's superannuation cash contributions
1: In section RD 67(a) if the employer if, for a contribution that is an employer's superannuation contribution, the employer
2: In section RD 67 employer's superannuation contribution
3: Subsections (1) and (2) do not apply for a tax position that is inconsistent with subsections (1) and (2) and that is taken in a tax return filed before the date on which the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Bill was introduced.
142: Section RD 67 replaced
Section RD 67
RD 67: Calculating amounts of tax for employer's superannuation cash contributions
The amount of tax for an employer's superannuation cash contribution is––
a: the amount determined under schedule 1, part D, clause 1 (Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe benefits), unless paragraph (b) applies; or
b: 33% of the employer's superannuation cash contribution, if––
i: the contribution is made by a person for the benefit of 1 or more of their past employees:
ii: an employer chooses 33% and the contribution is to a defined benefit fund. amount, amount of tax, defined benefit fund, employer, employer's superannuation cash contribution .
143: Choosing different rates for employer's superannuation cash contributions
1: In section RD 69(1) on behalf of an employee that is an employer's superannuation contribution
2: In section RD 69 employer's superannuation contribution
3: Subsections (1) and (2) do not apply for a tax position that is inconsistent with subsections (1) and (2) and that is taken in a tax return filed before the date on which the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Bill was introduced.
144: Calculating amounts of tax on failure to withhold
1: In section RD 70(1) an employer an employer, person,
2: Subsection (1) does not apply for a tax position that is inconsistent with subsection (1) and that is taken in a tax return filed before the date on which the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Bill was introduced.
145: Amounts of tax treated as paid to and received by superannuation funds
1: In section RD 71
a: in the words before the paragraphs, an employer an employer or a person
b: in paragraph (a), the employer the employer, the person,
2: Subsection (1) does not apply for a tax position that is inconsistent with subsection (1) and that is taken in a tax return filed before the date on which the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Bill was introduced.
146: Resident passive income
1: Section RE 2(5)(c)
2: Subsection (1) applies for income years beginning on or after 1 July 2009.
147: Non-cash dividends other than bonus issues in lieu
1: In section RE 14 Non-cash dividends other than certain share issues
2: Section RE 14(1)
1: This section applies when a person makes a payment of resident passive income that consists of a non-cash dividend other than—
a: a bonus issue in lieu:
b: a share issued under a profit distribution plan.
3: In section RE 14 profit distribution plan
148: Bonus issues in lieu
1: In section RE 15 Bonus issues in lieu and shares issued under profit distribution plans
2: Section RE 15(1)
1: This section applies when a person makes a payment of resident passive income that consists of a dividend that is—
a: a bonus issue in lieu:
b: a share issued under a profit distribution plan.
3: Section RE 15(3)(b)
b: alternative amount
i: the net amount of money offered as an alternative to the bonus issue before the amount of tax is determined; or
ii: for a share issued under a profit distribution plan, the net amount offered by the company for the repurchase of the share before the amount of tax is determined: .
4: In section RE 15 Commissioner profit distribution plan RWT rules
149: Non-resident passive income
Section RF 2(2)(b)
150: Certain dividends
1: After section RF 8(1)(e)
g: an amount paid by a foreign investment PIE to a notified foreign investor under section HM 44B (NRWT calculation option) to the extent to which the amount represents the fully imputed portion of a dividend and the related supplementary dividend derived by the PIE.
2: In section RF 8 foreign investment PIE notified foreign investor
3: Subsections (1) and (2) apply for the 2013–14 and later income years.
151: Non-cash dividends
In section RF 10(5)
a: in paragraph (b), section CD 7(2) or CD 8(3) section CD 7(2), CD 7B(2), or CD 8(3)
b: in paragraph (d), section CD 7(2) or CD 8(3) section CD 7(2), CD 7B(2), or CD 8(3)
152: Section RF 11B replaced
Section RF 11B
RF 11B: Dividends paid by companies in certain situations
The rate of NRWT payable on a payment of non-resident passive income in the form of a dividend paid by a company to a non-resident is—
a: to the extent to which the payment is a fully-imputed dividend, 0% if—
i: the non-resident has a direct voting interest in the company of 10% or more:
ii: the non-resident does not have a direct voting interest in the company of 10% or more and, in the absence of this section, the post-treaty tax rate for the dividend would be less than 15% if no imputation credits were attached to the payment:
b: to the extent to which the payment is not a fully-imputed dividend, the post-treaty tax rate for the dividend that, in the absence of this section, would apply if no imputation credits were attached to the payment. company, direct voting interest, dividend, fully-imputed dividend, imputation credits, non-resident, non-resident passive income, NRWT, pay, post-treaty tax rate .
153: Using refund to satisfy tax liability
In section RM 10(4) section LA 7 section LA 7(1)(a)
154: Definitions
1: This section amends section YA 1
2: The definition of bonus issue bonus issue
a: means the issue of shares in a company, or the giving of credit for or forgiveness of an amount unpaid on any share in a company, if the company receives no consideration for the issue, crediting, or forgiveness other than the shareholder choosing not to receive an amount as an alternative to the issue:
b: includes the issue of shares under a profit distribution plan .
3: In the definition of capital contribution that is not a contract of insurance
4: In the definition of capital contribution recipient: recipient; and
v: if the agreement is a contract of insurance, indemnity, or compensation, is paid in relation to an interruption or impairment of business activities: .
5: In the definition of deductible foreign equity distribution
a: for which a deduction is allowed in the calculation of the income tax imposed by a country or territory other than New Zealand on the income of the foreign company or on the income of a company in the same group as the foreign company: .
6: In the definition of deductible output tax of that Act; and of that Act:
iv: section 21I(1) to (3) of that Act; and .
7: In the definition of dividend
b: in the RWT rules, does not include a dividend of the kind listed in section RE 2(5) (Resident passive income) and modified by section RE 2(6), as applicable: .
8: The following are inserted in the appropriate alphabetical order: election commencement year elective attributing CFC elective attributing FIF .
9: In the definition of employee (3) (3), (3B)
10: In the definition of employer
a: in paragraph (b)(iib), to the extent that paragraph (db) of the definition of employee
b: in paragraph (c)(i), (3) (3), (3B)
11: In the definition of employment income employment) employment), and includes salary or wages or other income to which section RD 3(2) to (4) (PAYE income payments) applies
12: In the definition of FDP rules
d: YA 2(5) to (7) (Meaning of income tax varied) .
13: In the definition of fixed-rate share share cancellations), GC 8 share cancellations), CX 55(4) (Proceeds from disposal of investment shares), GC 8
14: In the definition of flat-owning company and section HA 6 (Corporate requirements) , section HA 6 (Corporate requirements), and the definition of look-through company
15: In the definition of foreign investment variable-rate PIE (Requirements for (Modified rules for
16: In the definition of foreign investment zero-rate PIE (Requirements for foreign investment variable-rate PIEs) (Modified rules for foreign investment zero-rate PIEs)
17: The definition of forestry business forestry business .
18: In the definition of fully imputed RF 8, and RF 10 RF 8, RF 10, and schedule 6, table 1B
19: The following is inserted in the appropriate alphabetical order: guarantor .
20: The definition of guarantor guarantor
a: section HB 11(12) (Limitation on deductions by persons with interests in look-through companies) for the purposes of that section:
b: section HG 11(12) (Limitation on deductions by partners in limited partnerships) for the purposes of that section .
21: The definition of life insurance rules
22: In the definition of local authority
x: the Auckland Council Independent Maori Statutory Board established by section 81 of the Local Government (Auckland Council) Act 2009 .
23: In the definition of market value interest control and ownership interests company ownership
24: In the definition of new start grant
b: paid by the Government of New Zealand to a person .
25: In the definition of non-filing taxpayer to whom section 33A(1) of the Tax Administration Act 1994 applies who meets the requirements of section 33AA(1) of the Tax Administration Act 1994
26: In the definition of option control and ownership interests company ownership
27: The following is inserted in the appropriate alphabetical order: owner's associate .
28: In the definition of ownership interest and section YC 18B (Corporate reorganisations not affecting economic ownership) , and in sections YC 18B and YC 19B (which relate to corporate reorganisations)
29: In the definition of portfolio investment entity
e: a foreign investment PIE that is either a foreign investment zero-rate PIE or a foreign investment variable-rate PIE .
30: In the definition of pre-1990 forest land emissions unit
b: to another person (the appointee
i: transferred by the appointee to the person, as a person (the claimant
ii: held continuously by the person, as the agent or the claimant, from the transfer by the appointee: .
31: The following is inserted in the appropriate alphabetical order: profit distribution plan
a: means a scheme comprising 1 or more steps undertaken by a company by which it—
i: notifies some or all of its shareholders that shares are to be issued on a particular date; and
ii: gives the notified shareholders an option to have some or all of the shares issued to them repurchased by the company:
b: does not include an issue of shares under a share purchase agreement or a share purchase scheme .
32: The following is inserted in the appropriate alphabetical order: recourse property .
33: The definition of recourse property recourse property
a: section HB 11(12) (Limitation on deductions by persons with interests in look-through companies) for the purposes of that section:
b: section HG 11(12) (Limitation on deductions by partners in limited partnerships) for the purposes of that section .
34: In the definition of relative rule), rule) and the definition of look-through company
35: In the definition of relative
bb: in the definition of look-through company .
36: In the definition of schedular income
37: In the definition of share purchase agreement and HC 27(3B) (Who is a settlor?) and section EX 38 (Exemption for employee share purchase scheme of grey list company) , EX 38 (Exemption for employee share purchase scheme of grey list company), HC 27B(3B) (Who is a settlor?), and the definition of profit distribution plan
38: In the definition of superannuation scheme Social Security Act 1964 New Zealand Superannuation and Retirement Income Act 2001
39: In the definition of taxable bonus issue
e: a bonus issue that is a share issued under a profit distribution plan .
40: In the definition of taxed CFC connection countries companies
41: In the definition of voting interest control and ownership interests company ownership
42: Subsections (3) and (4) apply for the 2011–12 and later tax years, except for a tax position that is—
a: inconsistent with subsections (3) and (4); and
b: taken in a tax return filed before the date on which the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Bill is first considered by a committee of the whole House.
43: Subsections (7) and (11) apply for the 2008–09 and later income years.
44: Subsection (8) applies for income years beginning on or after 1 July 2009.
45: Subsections (34) and (35) apply for income years beginning on or after the date on which the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012
155: When sections YC 8 to YC 19 apply
In section YC 7 YC 19 YC 19B
156: Reverse takeovers
In section YC 18(6)
a: this section this section and section YC 19B
b: as determined under section determined by applying section
157: Corporate reorganisations not affecting economic ownership
In section YC 18B(2)(c) the inital percentage the initial percentage
158: New section YC 19B
After section YC 19
YC 19B: Treatment when certain trusts terminated
When this section applies
1: This section applies when—
a: a trust established for the sole benefit of the New Zealand government or an overseas government is terminated; and
b: all the ownership interests held by the trustees of the trust in a company are transferred to the government beneficiary. Date of acquisition of shares
2: The government beneficiary is treated as acquiring the ownership interests transferred by the trustees on the date the trustees acquired the ownership interests. Definition
3: In this section, ownership interest company, New Zealand, ownership interest, trustee .
159: Apportionment of income from sea transport
In section YD 6(4) section DW 3 (Non-resident general insurers, shippers, and film renters) section DW 3 (Non-resident general insurers and shippers)
160: Section YD 7 repealed
Section YD 7
161: Apportionment of premiums derived by non-resident general insurers
In section YD 8(3)(a) section DW 3 (Non-resident general insurers, shippers, and film renters) section DW 3 (Non-resident general insurers and shippers)
162: Schedule 1—Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe benefits
1: In schedule 1 clauses 2 to 9 clauses 2 to 8
2: Schedule 1
3: In schedule 1 clauses 2 to 8 clauses 2 to 9
4: In schedule 1
9: Investment income from portfolio investment entities
The basic rate of income tax for a person who is an investor in a PIE on each dollar of income attributed by the PIE is the rate set out in schedule 6 as notified by the person to the PIE.
5: In schedule 1 clauses 2 to 9 clauses 2 to 10
6: In schedule 1
10: Taxable income: New Zealand Superannuation Fund
The basic rate of income tax on each dollar of taxable income derived by the Crown through the New Zealand Superannuation Fund is the rate applying to companies set out in clause 2.
7: Subsections (3) and (4) apply for the 2008–09 and later income years.
8: Subsections (5) and (6) apply for the 2011–12 and later income years.
163: Schedule 6—Prescribed rates: PIE investments and retirement scheme contributions
1: In schedule 6 8 For a person who is a zero-rated investor or an investor treated under section HM 61 as zero-rated. 0.000 .
2: In schedule 6 rows 1, and 3 to 5, rows 1, 3 to 5, and 7,
3: Schedule 6 Row Amounts Prescribed rate 1 To the extent to which it is not fully imputed, a dividend derived from a company resident in New Zealand attributed to an investor who does not reside in a country with which New Zealand has a double tax agreement. 0.3000 2 An amount other than an amount referred to in rows 1, 3 to 7, and 9 that has a source in New Zealand. 0.2800 3 To the extent to which it is not fully imputed, a dividend derived from a company resident in New Zealand attributed to an investor who resides in a country with which New Zealand has a double tax agreement. 0.1500 4 A fully imputed dividend derived from a company resident in New Zealand in relation to which a supplementary dividend is paid. 0.1500 5 A supplementary dividend. 0.1500 6 Interest derived under a financial arrangement, being an amount referred to in the definition of interest, paragraph (a) or (b), that has a source in New Zealand and is of an amount calculated under subpart EW. 0.0144 7 A fully imputed dividend derived from a company resident in New Zealand, other than a dividend in relation to which a supplementary dividend is paid. 0.0000 8 A foreign-sourced amount. 0.0000 9 An amount derived under a financial arrangement that has a source in New Zealand other than an amount of interest referred to in row 4. 0.0000
4: Subsection (3) applies for the 2013–14 and later income years.
164: Schedule 19—Expenditure in avoiding, remedying, or mitigating detrimental effects of discharge of contaminant
In schedule 19 , incurred in the cessation of a business,
165: Schedule 26 repealed
Schedule 26
166: Schedule 28—Requirements for complying fund rules
1: In schedule 28 2% 3%
2: Subsection (1) applies for payments of salary or wages for pay periods beginning on or after 1 April 2013.
167: Schedule 29—Portfolio investment entities: listed investors
In schedule 29 10 Quayside Holdings Limited.
168: Schedule 32—Recipients of charitable or other public benefit gifts
1: In schedule 32
a: after the entry for Alhay Buhay Foundation Trust Aotearoa Development Cooperative
b: after the entry for Cyclone Val Relief Fund Deepavali Charitable Trust
c: after the entry for Operation Vanuatu Charitable Trust Orphans of Nepal
d: after the entry for Plan New Zealand Queen Elizabeth II Diamond Jubilee Trust
e: after the entry for Save the Children New Zealand (and its branches) School Aid: Global Partnerships Through Schools
2: In schedule 32 Queen Elizabeth II Diamond Jubilee Trust
3: Subsection (1)(a) to (c) and (e) apply for the 2013–14 and later income years.
4: Subsection (1)(d) applies to charitable or other public benefit gifts made on or after 31 May 2012 and before 1 April 2014.
3: Amendments to Tax Administration Act 1994
169: Tax Administration Act 1994
This Part amends the Tax Administration Act 1994 2012-11-02 Tax Administration Act 1994 2016-04-01 Tax Administration Act 1994 (See Commencement section (38)). Sections 170(4), 171(3), 176, 177, 179, 180, 181, 183, 184, 185, 189, 190, 191, 192, 193, 197, 198, 200, 201, come into force on 1 April 2016 or on an earlier date set by OIC.
170: Interpretation
1: This section amends section 3
2: The definition of petroleum permit petroleum permit
a: a petroleum permit under section OB 1 of the Income Tax Act 2004:
b: a replacement permit under section OB 1 of that Act .
3: In the definition of petroleum permit
a: in paragraph (a), OB 1 of the Income Tax Act 2004 YA 1 of the Income Tax Act 2007
b: in paragraph (b), OB 1 YA 1
4: In the definition of tax position section 33A(1) section 33AA
5: Subsection (2) applies for the 2005–06 and later income years. However, subsection (2) does not apply to a person in relation to a tax position taken by the person—
a: in the period from 1 April 2005 to the date of introduction of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Bill; and
b: relating to the treatment of a petroleum permit or replacement permit; and
c: relying on the definition of petroleum permit
6: Subsection (3) applies for the 2008–09 and later income years.
171: Keeping of business and other records
1: In section 22(2)
a: in the words before the paragraphs, subsections (2B) subsections (2BA), (2B)
b: in paragraph (c), employer's superannuation contribution employer's superannuation cash contribution
c: in the words following paragraph (fb) and before paragraph (g), in New Zealand sufficient records in the English language sufficient records
d: in paragraph (l), employer's superannuation contribution employer's superannuation cash contribution
e: in the words after paragraph (m), in New Zealand
2: After section 22(2)
2BA: A taxpayer required by subsection (2) to keep and retain a record must keep and retain the record—
a: in English, or in a language in which the Commissioner authorises the taxpayer under subsection (8) to keep the record or the type of record; and
b: at a place in New Zealand, or at a place outside New Zealand where—
i: the Commissioner authorises the taxpayer under subsection (8) to keep the record or the type of record:
ii: the record is kept by a person authorised by the Commissioner under subsection (8) to keep records for taxpayers that include the taxpayer.
3: In section 22(3) to whom section 33A applies who meets the requirements of section 33AA(1), or is issued an income statement or required to request or be issued an income statement,
4: After section 22(7)
8: The Commissioner may, upon application in writing by the taxpayer or person, authorise for the purposes of subsection (2BA),—
a: a taxpayer to keep and retain a record or type of record—
i: in a language other than English:
ii: at a place outside New Zealand:
b: a person to hold, for taxpayers, records—
i: at places outside New Zealand; and
ii: in a form approved by the Commissioner; and
iii: accessible by the Commissioner in a way approved by the Commissioner.
9: The Commissioner may, for an authorisation under subsection (8) of a person,—
a: impose reasonable conditions on the authorisation:
b: reasonably vary the conditions on the authorisation:
c: withdraw the authorisation, upon request by the person or after giving reasonable notice of the withdrawal:
d: give public notice of an action under subsection (8)(b) or this subsection, in a publication chosen by the Commissioner.
172: Keeping of returns where information transmitted electronically
Section 23(1)
1: Where information contained in a taxpayer's return has been transmitted by electronic means in the prescribed electronic format in accordance with section 36, the taxpayer shall retain or cause to be retained—
a: the return in the form of—
i: a signed hard-copy transcript of the information transmitted:
ii: an electronic form meeting the requirements of section 25 of the Electronic Transactions Act 2002; and
b: for a period of—
i: 7 years after the end of the income year to which the return relates; or
ii: a greater period that the Commissioner requires under section 22 for other records of the taxpayer, if the Commissioner gives the taxpayer notice of a further retention period under section 22(5).
173: RWT withholding certificates
1: Section 25(10)(e
e: is made available electronically to the recipient or to a person authorised to act on behalf of the recipient and the recipient or the authorised person agrees to having the certificate made available in this way.
2: Subsection (1) applies to RWT withholding certificates provided on or after 1 April 2002 that relate to interest or specified dividends paid in the 2001–02 and subsequent income years.
174: Shareholder dividend statement to be provided by company
In section 29(2)(d) business. business; or
e: is made available electronically to the shareholder or to a person authorised to act on behalf of the shareholder and the shareholder or the authorised person agrees to having the shareholder dividend statement made available in this way.
175: Maori authority to give notice of amounts distributed
1: In section 31(2)(b) is
2: In section 31(2)(c) is
3: Section 31(2)(d)
d: sent by post to the authorised person at their last known place of abode or business; or
e: made available electronically to the member or to a person authorised to act on behalf of the member and the member or the authorised person agrees to having the notice made available in this way.
176: Returns of income
In section 33(1) a taxpayer to whom section 33A applies a person who meets the requirements of section 33AA(1), or is issued an income statement or required to request or be issued an income statement,
177: New section 33AA inserted
1: After section 33
33AA: Exceptions to requirement for return of income
1: A natural person is not required to furnish a return of income for a tax year if, for the corresponding income year, the person—
a: derives no assessable income other than—
i: income of a type referred to in subsection (2), including a total of $200 or less of amounts referred to in subsection (3); and
ii: a total of $200 or less of income of a type not referred to in subsection (2); and
b: derives no income from employment for which an amount of tax that is withheld or deducted is determined under a special tax code certificate issued under section 24F; and
c: has total income of $200 or less or derives no schedular payment other than an amount or proportion of an amount for which the Commissioner has made a determination under section RD 8(3) of the Income Tax Act 2007; and
d: has total income of $200 or less or derives no beneficiary income; and
e: derives no income for providing personal services to a claimant under the Accident Compensation Act 2001 or meets the requirements of section 33C; and
f: is at all times—
i: a New Zealand resident:
ii: a non-resident deriving no income with a source in New Zealand other than non-resident passive income referred to in section RF 2(3) of the Income Tax Act 2007; and
g: is not a provisional taxpayer; and
h: is a cash basis person; and
i: has no tax loss balance or tax loss component, other than a tax loss component under section LE 2 of the Income Tax Act 2007; and
j: has no loss balance; and
k: has not carried forward to the tax year a tax credit under section LE 3 of the Income Tax Act 2007; and
l: at no time holds an RWT exemption certificate under section 32E; and
m: is not required under section 44 to furnish a return of income; and
n: is not considered by the Commissioner to be a person who should furnish a return of income.
2: The types of income relevant to subsections (1)(a)(i) and (ii) for a person and an income year are—
a: income from employment that is subject to the PAYE rules:
b: interest or a dividend that is subject to the RWT rules:
c: interest or a dividend that does not have a New Zealand source:
d: a taxable Maori authority distribution:
e: a personal service rehabilitation payment for a claimant under the Accident Compensation Act 2001.
3: The amounts relevant to subsection (1)(a)(i) for a person and an income year are—
a: an amount of income for which the obligations under the PAYE rules, of the employer or PAYE intermediary making the payment, are not met:
b: an amount of income from which the combined tax and earner-related payment is not withheld correctly:
c: an amount of interest or a dividend that is resident passive income to which section RE 3(1)(c) of the Income Tax Act 2007 applies, other than interest for which an RWT withholding certificate was not required under section 25(7), and from which RWT is withheld at a rate other than—
i: 0.175, if the person's annual gross income is more than $14,000 and not more than $48,000; or
ii: 0.300, if the person's annual gross income is more than $48,000 and not more than $70,000; or
iii: 0.330, if the person's annual gross income is more than $70,000:
d: an amount of income from employment that is an extra pay from which tax is withheld at a rate other than—
i: 0.175, if the person's annual gross income is more than $14,000 and not more than $48,000; or
ii: 0.300, if the person's annual gross income is more than $48,000 and not more than $70,000; or
iii: 0.330, if the person's annual gross income is more than $70,000:
e: an amount of income from employment that is secondary employment earnings from which tax is withheld at a rate other than—
i: 0.175, if the person's annual gross income is more than $14,000 and not more than $48,000; or
ii: 0.300, if the person's annual gross income is more than $48,000 and not more than $70,000; or
iii: 0.330, if the person's annual gross income is more than $70,000:
f: a taxable Maori authority distribution if the person's annual gross income is more than $48,000:
g: an amount of interest, a dividend, or a taxable Maori authority distribution if the person is required to pay financial support in the tax year under the Child Support Act 1991:
h: an amount of interest or a dividend that does not have a New Zealand source and is not resident passive income to which section RE 3(1)(c) of the Income Tax Act 2007 applies:
i: an amount of salary or wages from employment as an election day worker, if the worker has used the EDW
j: an amount of salary or wages from employment as casual agricultural employee, if the worker has used the CAE
4: A person who is not required to furnish a return of income for a tax year may choose to furnish a return of income for the tax year if the person furnishes a return of income for each of the 5 tax years, immediately preceding the tax year in which the Commissioner receives the returns,—
a: beginning on or after the earlier of 1 April 2016 and the first day of the first tax year to which this section applies; and
b: for which the person—
i: is not required to furnish a return of income, except under this subsection; and
ii: has not previously furnished a return of income.
5: If a person is required by subsection (4) to make more than one return of income,—
a: the person is treated as having, for the period of tax years to which the returns relate (the return years
b: an overall amount of unpaid tax for the return years is treated as tax payable by the person and due on the later of the following:
i: the day specified by the Commissioner in the notice to the person requiring the payment of the overall amount to the Commissioner:
ii: 60 days after the date of the notice.
6: If a person makes a return of income under subsection (4) for a tax year, in relation to the period beginning with the due date for payment of tax for the tax year and ending with the latest date on which the Commissioner receives from the person a return required by subsection (4),—
a: the person is not liable to pay interest under Part 7, or a late payment penalty under section 139B, in relation to tax for the tax year that the person would not be liable to pay in the absence of the return:
b: the Commissioner is not liable to pay interest under Part 7 in relation to tax for the tax year overpaid by the person.
2: Subsection (1) applies for the 2016–17 tax year, or earlier tax year set by Order in Council, and later tax years.
178: Annual returns of income not required
Section 33A(1)(b)(via)
179: Section 33A repealed
1: Section 33A
2: Subsection (1) applies for the 2016–17 tax year, or earlier tax year set by Order in Council, and later tax years.
180: Return not required for certain providers of personal services
1: In section 33C(d) the person is not required to furnish a return of income under section 33A(1) the person meets the requirements of section 33AA(1)
2: Subsection (1) applies for the 2016–17 tax year, or earlier tax year set by Order in Council, and later tax years.
181: New section 33D inserted
1: After section 33C
33D: Return not required for non-resident seasonal worker
A person who is a non-resident seasonal worker in an income year corresponding to a tax year is not required to furnish a return of income for the tax year and will not receive an income statement from the Commissioner for the year.
2: Subsection (1) applies for the 2016–17 tax year, or earlier tax year set by Order in Council, and later tax years.
182: Commissioner may approve furnishing of return information by electronic means
Section 36(3)(a) to (ba)
a: the taxpayer or registered person shall retain or cause to be retained the information in—
i: a hard-copy transcript:
ii: an electronic form meeting the requirements of section 25 of the Electronic Transactions Act 2002; and
b: if no electronic form under paragraph (a)(ii) of a return is retained, and the return is not an employer monthly schedule or annual reconciliation statement under section 57B, the hard-copy transcript must be signed under section 40 and held by the taxpayer or registered person on behalf of the Commissioner; and .
183: Returns to annual balance date
In section 38(1) taxpayer to whom section 33A(1) or (5) applies person who meets the requirements of section 33AA(1), or is issued an income statement or required to request or be issued an income statement,
184: Annual returns by persons who receive family assistance credit
1: Section 41(4)
4: Whether or not the person derived income in the tax year, the person must furnish to the Commissioner a return for the tax year, in the form prescribed by the Commissioner, providing—
a: details of each family assistance credit paid to the person in the tax year; and
b: the information relevant to the calculation of the person's family scheme income for the tax year; and
c: other information required by the Commissioner.
2: Section 41(5)
3: Subsections (1) and (2) apply for the 2016–17 tax year, or earlier tax year set by Order in Council, and later tax years.
185: Income tax returns and assessments by executors or administrators
1: In section 43(4) a person to whom section 33A(5) refers required under section 80D(2) to apply for an income statement
2: In section 43(5) been a person to whom section 33A(1) applied met the requirements of section 33AA(1)
186: ESCT statements provided by employers
1: In the heading to section 47 employers employers and others
2: In section 47(1) employer or PAYE intermediary withholds in a period an amount of ESCT from an employer's superannuation contribution employer, person, or PAYE intermediary withholds in a period an amount of ESCT from an employer's superannuation cash contribution
187: RWT withholding reconciliation statements
In section 51(7) dividend that to which section RE 3(c) dividend to which section RE 3(1)(c)
188: Return requirements for multi-rate PIEs
After section 57B(5)
5B: Despite subsection (5), a foreign investment zero-rate PIE is not required to carry out the responsibilities in relation to exiting investors as described in subsection (5) for a tax year if the only exiting investors of the PIE in the tax year are notified foreign investors. Instead, the PIE must provide the required information in its return for the tax year.
189: Application
1: Section 80A(1)(a)
a: is a person who—
i: is not exempted under section 33AA from the requirement to furnish an annual return of income; and
ii: meets the requirements of section 33AA(1)(k) to (n); or .
2: In section 80A(1)
a: in paragraph (b), section 33A section 33AA
b: in paragraph (c), section 33A section 33AA
190: Notification required that taxpayer not subject to this Part
In section 80B(1) derived income other than from employment, interest or dividends, or who is a person to whom section 33A(2) applies does not meet the requirements of section 33AA(1)
191: Requests for income statements
In section 80C to whom section 33A(1) applies who meets the requirements of section 33AA(1)
192: Commissioner must issue income statement
1: In section 80D(1)(c)(ii) to whom section 33A(1) does apply who meets the requirements of section 33AA(1)
2: In section 80D(1)(c)(iii) to whom section 33A(1) does apply who meets the requirements of section 33AA(1)
193: Taxpayer obligations and assessment on receipt of income statement
1: Section 80F(6A)(b)
b: the taxpayer meets the requirements of section 33AA(1); and .
2: Subsection (1) applies for the 2016–17 tax year, or earlier tax year set by Order in Council, and later tax years.
194: Determination on insurer as non-attributing active CFC
1: Section 91AAQ(2)(a)(i) and (ii)
i: has a business of insurance to which section 60(1) of the Insurance (Prudential Supervision) Act 2010 applies:
ii: is in the same group of companies as a company resident in New Zealand that has a business of insurance to which section 60(1) of that Act applies; and .
2: In section 91AAQ(3)(b)(i) registered and rated under the Insurance Companies (Ratings and Inspections) Act 1994 to which section 60(1) of the Insurance (Prudential Supervision) Act 2010 applies
195: Commissioner to make private rulings on request
After section 91E(3)
3B: Despite subsection (1), the Commissioner may decide to not make a private ruling, to the extent to which it would be a ruling on how section GA 1 of the Income Tax Act 2007 applies or would apply.
196: Disclosure requirements
After section 91ED(1)
1B: In the case of an application for a private ruling that relates to how either sections GC 6 to GC 14 or YD 5 of the Income Tax Act 2007 applies, or would apply, the applicant must state in a notice, signed by them and sent to the Commissioner at the same time as the application described in subsection (1), that––
a: they have examined the application; and
b: to the best of their knowledge and belief, the information disclosed for the application is comprehensive.
197: Taxpayer assessment of income tax
1: Section 92(5)
2: Subsection (1) applies for the 2016–17 tax year, or earlier tax year given by Order in Council, and later tax years.
198: Section 92AA repealed
1: Section 92AA
2: Subsection (1) applies for the 2016–17 tax year, or earlier tax year given by Order in Council, and later tax years.
199: Assessment of ESCT
In section 98(1)
a: employer employer or person
b: employer's superannuation contribution employer's superannuation cash contribution
200: Persons excluded
Before section 120B(a)
aa: a person making a return of tax under section 33AA(4), to the extent that the person is excused from liability under section 33AA(6): .
201: Late payment penalty
In section 139B(1) assessed, and the taxpayer is not excused from liability for a late payment penalty under section 33AA(6),
202: Knowledge offences
In section 143A(5)(c)(iii) employer's superannuation contribution employer's superannuation cash contribution
203: Taxpayer may apply for financial relief
After section 177(1)
1B: For the purposes of subsection (1)(a), when assessing whether recovery would place the taxpayer in serious hardship, the Commissioner must consider the taxpayer's financial position at the date on which the application for financial relief is made.
204: Write-off of tax by Commissioner
Section 177C(5)
5: If the Commissioner writes off outstanding tax for a taxpayer who has a tax loss, the Commissioner must extinguish all or part of the taxpayer's tax loss, by––
a: dividing the amount written off by 0.33 and reducing the tax loss by that amount, if the taxpayer is not a company; or
b: dividing the amount written off by 0.28 and reducing the tax loss by that amount, if the taxpayer is a company.
205: Secure credit or debit card payment and fees
In section 226C(3) amount. amount, plus any GST.
4: Amendments to Goods and Services Tax Act 1985
206: Goods and Services Tax Act 1985
This Part amends the Goods and Services Tax Act 1985 2012-11-02 Goods and Services Tax Act 1985
207: Interpretation
1: This section amends section 2(1)
2: In the definition of land
a: in the words before the paragraphs, sections 5(24), 11(1)(mb), 60B(6), 75(3B), and 78F the zero-rating of land rules
b: paragraph (b)(iii) is omitted.
3: In the definition of local authority 2004 2004:
ix: the Auckland Council Independent Maori Statutory Board established by section 81 of the Local Government (Auckland Council) Act 2009 .
4: The following definition is inserted in the appropriate alphabetical order: zero-rating of land rules .
208: Meaning of input tax
1: Section 3A(2)(b)
b: the supply is not—
i: a supply of goods previously supplied to a registered person who has entered them for home consumption under the Customs and Excise Act 1996, whether the person is registered at the time they enter the goods for home consumption or later; and
ii: a supply of goods made by a non-resident, whether or not they made the earlier supply referred to in subparagraph (i); and .
2: In section 3A(3C) to which section 21B applies meeting the requirements of section 21B(1)(a)(i) and (b)
3: Section 3A(4)
209: Meaning of term supply
1: In section 5(13) Accident Compensation Act 2001). Accident Compensation Act 2001); or
c: the supply of the contract of insurance is a supply that is chargeable with tax only because sections 5B and 8(4B) apply to it.
2: After section 5(24)
25: For the purposes of this Act, an amount charged for the late payment of an account is treated as being consideration for a supply of services in the course or furtherance of a taxable activity, whether the amount is described as a fee, penalty, or other charge. But this subsection does not apply to the extent to which the amount is penalty or default interest, or a charge in the nature of penalty or default interest, that is imposed under—
a: a contract for the supply of goods and services:
b: an enactment.
26: A supply under subsection (25) is treated for tax purposes in the same way as the supply to which the amount charged for the late payment relates.
3: Subsection (2) applies for taxable periods ending on or after 1 April 2003. However, subsection (2) does not apply for a person and an amount charged by them on or before 31 December 2012 if the person has, before the date of introduction of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Bill, adopted a regular practice of not charging GST on an amount charged for the late payment of an account, relying on the provisions of the Goods and Services Tax Act 1985
210: Imposition of goods and services tax on supply
In section 8(4B)(b)(ii) 90% 95%
211: Time of supply
In section 9(2)(h)
a: first day last day
b: 90% 95%
212: Zero-rating of goods
After section 11(8C)
8D: For the purposes of the zero-rating of land rules,—
a: a supply that is an assignment or surrender of an interest in land, is a supply chargeable with tax at 0%:
b: the supply of an interest in land is not a supply chargeable with tax at 0% if—
i: the supply is made periodically; and
ii: an amount is paid or payable under the agreement for the supply in advance of, or contemporaneously with, the supply being made, that—
A: totals 25% or less of the consideration specified in the agreement; and
B: relates to the longer of 1 year and the shortest possible fixed term of the agreement; and
C: is not itself a regular payment under the agreement.
213: Accounting basis
1: After section 19(3)
3B: Despite subsection (3), a liquidator, receiver, or administrator (as defined in section 239B of the Companies Act 1993) of a registered person who accounts for tax payable on a payments basis may not apply to change the registered person's accounting basis to an invoice basis.
2: Subsection (1) applies in relation to an application for a change to a registered person's accounting basis received on or after the date of Royal assent of this Act.
214: Calculation of tax payable
1: In section 20(3)(d)(v) Accident Compensation Act 2001); and Accident Compensation Act 2001):
vi: does not apply to the supply of a contract of insurance when the supplier is not required to account for output tax on the supply; and .
2: Section 20(3C)
3C: For the purposes of subsection (3), and if subsection (3D) does not apply,—
a: input tax as defined in section 3A(1)(a) or (c) may be deducted to the extent to which the goods or services are used for, or are available for use in, making taxable supplies:
b: input tax as defined in section 3A(1)(b) may be deducted to the extent to which the goods are used for, or are available for use in, making taxable supplies other than—
i: the delivery of the goods to a person in New Zealand:
ii: arranging or making easier the delivery of the goods to a person in New Zealand.
3: In section 20(3J)(a)(iii) goods goods or services
215: Goods and services tax incurred relating to determination of liability to tax
In section 20A(2) for the principal purpose of making taxable supplies for making taxable supplies
216: Adjustments for apportioned supplies
After section 21(4)
5: In determining the extent of percentage actual use and percentage intended use of a motor vehicle, a registered person may refer to a logbook as provided for in sections DE 6 to DE 11 of the Income Tax Act 2007.
217: When adjustments required
In section 21A(c) section 21(2)(c) section 21(2)(c) or (d)
218: Adjustments when person becomes registered after acquiring goods and services
1: Section 21B(1)(a)
a: before becoming a registered person, a person acquires—
i: goods or services on which tax has been charged under section 8(1):
ii: goods entered by them for home consumption under the Customs and Excise Act 1996 on which tax has been levied under section 12(1):
iii: secondhand goods—
A: that are supplied to the person by way of sale; and
B: that have always been situated in New Zealand or have had tax levied on them as described in subparagraph (ii); and
C: the supply of which is not a taxable supply; and .
2: In section 21B(3)(a)(ii) section 24(3) section 24(3) or (7), as applicable
3: Section 21B(4)
4: After section 21B(3)
5: In relation to a supply of secondhand goods, the tax fraction applying to the supply is the tax fraction that applied at the time the goods were purchased by the person.
219: Concurrent uses of land
In section 21E(1) when a registered person uses all or part of an area of land during an adjustment period for making concurrent taxable and non-taxable supplies when a registered person simultaneously uses the same area of land during an adjustment period for making concurrent taxable and non-taxable supplies
220: Definitions and requirements for apportioned supplies and adjustment periods
After section 21G(7)
7B: If a person disposes, or is treated as disposing, of an asset before the last required adjustment period under subsection (4), then for the purposes of subsection (2)(a)(ii) and (b)(ii), the current adjustment period is treated as—
a: ending immediately before the date of the disposal; and
b: the final adjustment period.
221: Transitional accounting rules
1: Section 21H(1)
1: This section applies in relation to goods or services acquired before 1 April 2011 when—
a: a registered person determines the extent to which goods or services are applied for the purposes of making supplies other than taxable supplies under sections 21 to 21H (the old apportionment rules
b: no adjustment was made or was required to be made under the old apportionment rules before 1 April 2011 for goods or services other than those referred to in section 21HB.
2: After section 21H(2)
2B: For goods or services that were acquired before 1 April 2011, for which no adjustment was made or required under the old apportionment rules before 1 April 2011, and that are not referred to in section 21HB(1), this section applies modified as follows:
a: if input tax was deducted under section 20(3) in relation to the goods or services, or if the goods or services were zero-rated at the time of purchase, the person must apply the old apportionment rules in relation to the supply:
b: if no input tax was deducted under section 20(3) in relation to the goods or services, the person must apply the new apportionment rules set out in sections 21 to 21G and subsection (2C).
2C: For the purpose of subsection (2B)(b), the first adjustment period is treated as beginning on the date of acquisition of the goods or services and ending on the date that is the first balance date falling after the later of—
a: the date on which the goods or services were first used for making taxable supplies:
b: the date on which the person becomes a registered person.
3: Subsection (2) applies for supplies made on or after 1 April 2011. However, subsection (2) does not apply for a person in relation to a tax position taken by them—
a: in the period between 1 April 2011 and the date of introduction of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Bill; and
b: relating to an adjustment made under either the old apportionment rules or the new apportionment rules; and
c: relying on the provisions of the Goods and Services Tax Act 1985
222: Tax invoices
In section 24(7B) section 60B(3) to (5) section 60B(3), (4), and (6)
223: Group of companies
1: In section 55(1)(a)(iii) multi-rate PIE multi-rate PIE or a look-through company
2: After section 55(7)(dc), the following is inserted:
dd: any statement or other information provided to a member of the group under section 78F shall be deemed to be provided to the representative member; and
de: any statement or other information provided by a member of the group under section 78F shall be deemed to be provided by the representative member; and .
224: Nominated recipients of supplies
1: Section 60B(5)
2: In section 60B(6) subsections (2) to (5) subsections (2) to (4)
3: Subsections (1) and (2) apply for supplies made on or after 1 April 2011. However, subsections (1) and (2) do not apply for a person in relation to a tax position taken by them—
a: in the period between 1 April 2011 and the date of introduction of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Bill; and
b: relating to an input tax deduction claimed by the person; and
c: relying on the provisions of the Goods and Services Tax Act 1985
225: Keeping of records
1: In section 75(3D) name, address, and registration number name, and address, and registration number or tax file number, as applicable
2: In section 75(3E) name, address, and registration number name, address, and, if the principal is a registered person or expects to be a registered person, the registration number
226: Liability in relation to supplies of land
1: In section 78F(3) provided by the recipient provided as required by subsection (2)
2: Section 78F(5)
5: For the purposes of section 60B and a contract for a supply that wholly or partly consists of land, when the person who enters the contract ( person B person C
a: person B provides the required information as it relates to their expectation of the circumstances of person C:
b: person C provides the required information.
3: In section 78F(7) the date of settlement. the date of settlement. If the agent does not have a registration number, their tax file number may be provided in its place. On meeting the requirements of this subsection, the person is treated as having met the requirements of subsection (2B).
5: Amendments to other Acts and regulations
Amendments to KiwiSaver Act 2006
227: KiwiSaver Act 2006
Sections 228 to 238 KiwiSaver Act 2006 2012-11-02 KiwiSaver Act 2006 2013-04-01 KiwiSaver Act 2006 (See Commencement section (37)). Sections 231, and 234 come into force on 1 April 2013.
228: Interpretation
In section 4 non-deduction notice .
229: Employees giving information to employers
In section 22(1)(c)(ii) ended. ended; or
iii: give his or her employer a non-deduction notice.
230: When subpart does not apply
After section 62(b)
bb: for the period that the employee has a valid non-deduction notice that they have given to their employer under section 112B; or .
231: Contribution rate
1: In section 64(1)(a) 2% 3%
2: After section 64(1)(a)(ii)
iii: the employee is on a 2% contribution rate immediately before the first pay period that starts on or after 1 April 2013 because they chose 2% under subsection (2); or .
3: In section 64(2) 2% 3%
4: Subsections (1) to (3) apply for payments of salary or wages for pay periods that start on or after 1 April 2013.
232: Treatment of unremitted deductions in holding account
In section 78 section 73(1) section 73(1)(a)
233: How and when interest is paid on on-payments
In section 88 at the same time that the amount of contribution is on-paid to the provider within 3 months of when the amount of contribution is on-paid to the provider
234: Compulsory employer contribution amount: general rule
1: Section 101D(4)(b)
b: 2%, if the payment of gross salary or wages is made for a pay period that starts on or before 31 March 2013, excluding a pay period to the extent to which paragraph (a) applies to it:
c: 3%, if the payment of gross salary or wages is made for a pay period that is in a year starting on or after 1 April 2013, excluding a pay period that paragraph (b) applies to.
2: Subsection (1) applies for payments of salary or wages for pay periods that start on or after 1 April 2013.
235: New section 112B inserted
After section 112
112B: Non-deduction notices
1: A person who has passed the KiwiSaver end payment date described in Schedule 1, clause 4(2) may give to their employer a notice (a non-deduction notice
2: The non-deduction notice is valid, for the purposes of section 62(bb), for the first payment of salary or wages after the non-deduction notice is given to the person's employer. It is valid for subsequent payments of salary or wages, until the person revokes that non-deduction notice by giving to the employer another notice (a revocation notice
3: A person must not give a revocation notice to the employer within 3 months of giving a non-deduction notice to them, unless the employer agrees to receive the revocation notice within those 3 months.
236: Crown contribution
In the heading to section 226 contribution contribution: kick-start contributions
237: New section 238
After section 237
238: Protection from non-compliance: Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act
2012 If an effect of the enactment of sections 166, 231, and 234 of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (the Act end date assent day
a: a prospectus that is registered under the Securities Act 1978 on or before assent day:
b: an investment statement under the Securities Act 1978 that is dated on or before assent day.
238: Schedule 1—KiwiSaver scheme rules
1: In schedule 1 contributions holiday contributions holiday or for the period that the employee has a valid non-deduction notice under section 112B that they have given to their employer
2: Schedule 1
b: the 5 year qualification date; or .
3: After schedule 1
6: For the purposes of these rules, 5 year qualification date
a: the date that is 5 years after the day on which the member first became a member of a KiwiSaver scheme; or
b: the date that is 5 years after the day, under section 85, on which the Commissioner first received a contribution for a KiwiSaver scheme in relation to the member. Amendment to Child Support Act 1991
239: Notification requirements of liable parent
In section 81(1)(b) to whom section 33A of the Tax Administration Act 1994 applies who meets the requirements of section 33AA(1) of the Tax Administration Act 1994 2016-04-01 Child Support Act 1991 (See Commencement section (38)). Section 239 comes into force on 1 April 2016 or on an earlier date set by OIC. Amendments to Income Tax Act 2004
240: Income Tax Act 2004
Sections 241 to 249 Income Tax Act 2004 2012-11-02 Income Tax Act 2004
241: Meaning of expenditure on account of an employee
1: Section CE 5(1)
1: Expenditure on account of an employee
2: Subsection (1) applies for the 2005–06 and later income years.
242: Expenditure on account, and reimbursement, of employees
1: In section CW 13(1) Expenditure on account of an employee Expenditure on account of an employee, being a payment to which section CE 5 (Meaning of expenditure on account of an employee) applies, that is
2: Subsection (1) applies for the 2005–06 and later income years.
243: New heading and section DB 31B inserted
1: After section DB 31 Unsuccessful software development
DB 31B: Expenditure in unsuccessful development of software
When this section applies
1: This section applies when a person incurs expenditure in the development of software for use in the person's business if—
a: the development of the software is abandoned before the software is fit to be used in the person's business; and
b: the person would have been entitled to a deduction for an amount of depreciation loss for the software if the software had been made fit to be used in the person's business. Deduction
2: The person is allowed a deduction for the expenditure incurred in the development of the software to the extent to which no deduction has been allowed for the expenditure under another provision of this Act or under another Act. Timing of deduction
3: The deduction is allocated to the income year in which the development of the software is abandoned. Link with subpart DA
4: This section overrides the capital limitation. The general permission must still be satisfied and the other general limitations still apply. capital limitation, deduction, general limitation, general permission, income year .
2: Subsection (1) applies for the 2006–07 and later income years.
244: Some definitions
1: In section DC 14(1) employee
a: means a person that—
i: is employed by a company:
ii: is not a corporation sole, a body corporate, or an unincorporated body: .
2: In section DC 14(1) employee
a: in paragraph (b)(ii), the company; or the company
b: paragraph (b)(iii) is repealed.
3: Subsections (1) and (2) apply for the 2005–06 and later income years.
245: Application of this subpart
1: Section EC 1(1) When this subpart applies
1: This subpart applies to the valuation of property when a person who owns or carries on a business, other than of selling livestock, holds livestock for the purposes of sale or exchange in the ordinary course of carrying on the business.
2: Subsection (1) applies for the 2005–06 and later income years. However, subsection (1) does not apply to a person in relation to a tax position taken by the person—
a: in the period from 1 April 2005 to 31 May 2011; and
b: relating to the valuation of livestock; and
c: relying on the provisions of subpart EC
246: Use of money interest payable by person
In section EF 5(2) income tax liability assessed liability
247: Spreading forward of deductions for repairs to fishing boats
1: In section EJ 2(1) Part 10 of the Maritime Transport Act 1994 Part 21 of the Maritime Rules made under the Maritime Transport Act 1994
2: In section EJ 2(6) fishing boat a fishing boat under Part 4 of the Fisheries Act 1983 a fishing vessel under section 103 of the Fisheries Act 1996
3: Subsections (1) and (2) apply for the 2005–06 and later income years.
248: Portfolio entity tax liability and rebates of portfolio tax rate entity for period
1: After section HL 20(9)
9B: For the purposes of subsection (9) and the determination of a person's prescribed investor rate, the person's taxable income does not include an amount that—
a: arises because their portfolio investor rate is lower than their prescribed investor rate; and
b: is treated as taxable income because section CX 44D does not apply.
2: Section HL 20(13)
249: Definitions
1: This section amends section OB 1
2: In the definition of employee
ab: for the purposes of the FBT rules, includes a shareholder-employee: . Amendments to Income Tax Act 1994
250: Income Tax Act 1994
Section 251 Income Tax Act 1994 2012-11-02 Income Tax Act 1994
251: Certain repairs to fishing boats
1: In section DO 2(1), Part 4 of the Shipping and Seamen Act 1952 Part 10 of the Maritime Transport Act 1994
2: In section DO 2(1), Part 10 of the Maritime Transport Act 1994 Part 21 of the Maritime Rules made under the Maritime Transport Act 1994
3: In section DO 2(2), in the definition of fishing boat the Fisheries Act 1983; the Fisheries Act 1983 or section 103 of the Fisheries Act 1996;
4: Subsection (1) applies for the 1995–96 to 1997–98 income years.
5: Subsection (2) applies for the 1998–99 and later income years.
6: Subsection (3) applies for the 2001–02 and later income years. Amendments to Taxation (Tax Administration and Remedial Matters) Act 2011
252: Taxation (Tax Administration and Remedial Matters) Act 2011
Sections 253 to 255 Taxation (Tax Administration and Remedial Matters) Act 2011 2012-11-02 Taxation (Tax Administration and Remedial Matters) Act 2011
253: New section DZ 19
Section 21(2)
254: Net attributable CFC income or loss
Section 37(2) and (4)
255: New section EZ 32C
Section 44(2 Amendments to Income Tax (Depreciation Determinations) Regulations 1993
256: Income Tax (Depreciation Determinations) Regulations 1993
Sections 257 to 260 Income Tax (Depreciation Determinations) Regulations 1993 2012-11-02 Income Tax (Depreciation Determinations) Regulations 1993
257: Fees
1: In regulation 9(1)(a), $50 $150 plus any GST
2: In regulation 9(1)(b), $30 $75 plus any GST
3: Regulation 9(1)(c) and (d) are replaced by the following:
c: a departmental consultation reimbursement fee equal to the amount of fees, less GST, paid by the Commissioner to consultants such as valuers, engineers, and architects in obtaining advice as to the estimated useful life or estimated residual value of the property to which the application relates (not being fees to which paragraph (d) applies), plus any GST:
d: an additional consultation reimbursement fee, equal to the amount of fees, less GST, paid by the Commissioner to the relevant consultant, plus any GST, where the applicant—
i: requests, in writing to the Commissioner, that a consultant carry out further work on the application:
ii: requests a conference on the application and a consultant paid by the Commissioner attends the conference on the nomination of either the applicant or the Commissioner.
4: After regulation 9(1), the following is inserted:
1B: An applicant for a determination of a provisional rate under section 91AAG of the Act is liable to pay for the application an additional consultation reimbursement fee equal to the amount of fees, less GST, paid by the Commissioner to the relevant consultant, plus any GST, if—
a: the Commissioner declines to issue a determination, or issues a determination that is unfavourable to the applicant; and
b: the applicant, after the Commissioner's decision,—
i: requests, in writing to the Commissioner, that a consultant carry out further work on the application but the further work does not cause the Commissioner to issue a determination favourable to the applicant:
ii: requests a conference on the application and a consultant paid by the Commissioner attends the conference on the nomination of either the applicant or the Commissioner but the conference does not cause the Commissioner to issue a determination favourable to the applicant.
5: In regulation 9(2), subclause (1)(d) subclause (1)(d) or (1B)
258: Payment of fees
1: In regulation 10(1), paragraphs (b) to (d) of regulation 9(1) regulation 9(1)(b) to (d) or (1B)
2: In regulation 10(2), paragraphs (b) to (d) of regulation 9(1) regulation 9(1)(b) to (d) or (1B)
259: Regulation 11 replaced
Regulation 11 is replaced by the following:
11: Waiver of fees
The Commissioner may waive all or part of a fee payable under these regulations if the Commissioner considers it is fair and reasonable in the circumstances to do so, having regard to the nature of the issue that is the subject of the application, the level of skill and experience required in the consideration of the application, the fees paid by the Commissioner to consultants in the application, and any other relevant factors.
260: Regulation 12 revoked
Regulation 12 is revoked. Amendments to Income Tax (Determinations) Regulations 1987
261: Income Tax (Determinations) Regulations 1987
Sections 262 and 263 Income Tax (Determinations) Regulations 1987 2012-11-02 Income Tax (Determinations) Regulations 1987
262: Publication of determinations
In regulation 10 in the Gazette , in a publication chosen by the Commissioner,
263: Regulation 13 replaced
Regulation 13
13: Waiver of fees
The Commissioner may waive all or part of a fee payable under these regulations if the Commissioner considers it is fair and reasonable in the circumstances to do so, having regard to the nature of the issue that is the subject of the application, the level of skill and experience required in the consideration of the application, and any other relevant factors. Amendments to Tax Administration (Binding Rulings) Regulations 1999
264: Tax Administration (Binding Rulings) Regulations 1999
Sections 265 and 266 Tax Administration (Binding Rulings) Regulations 1999 2012-11-02 Tax Administration (Binding Rulings) Regulations 1999
265: Fees
In regulation 3(1)
a: in paragraph (a), $310 $280 plus any GST
b: in paragraph (b)(i), $155 $140 plus any GST
c: paragraph (b)(ii) is revoked.
266: Regulation 7 revoked
Regulation 7 Amendments to Tax Administration (Form of Warrant) Regulations 2003
267: Tax Administration (Form of Warrant) Regulations 2003
Section 268 Tax Administration (Form of Warrant) Regulations 2003 2012-11-02 Tax Administration (Form of Warrant) Regulations 2003
268: Schedule 2—Form of warrant
1: In schedule 2 books or documents documents
2: In schedule 2 documents and books documents Income Tax (Refund of Excess Tax) Order 2003
269: Income Tax (Refund of Excess Tax) Order 2003 revoked
The Income Tax (Refund of Excess Tax) Order 2003 2012-11-02 Income Tax (Refund of Excess Tax) Order 2003