1: Title
This Act is the Taxation (Tax Administration and Remedial Matters) Act 2011
2: Commencement
1: This Act comes into force on the date on which it receives the Royal assent, except as provided in this section.
2: Sections 219 222
3: Sections 220 221
4: Sections 192 193 194 195 196 197 198 201 206 207 208
5: Sections 199 200 202
6: Sections 203 204 205
7: Sections 4 7 12 13 17 18 19 20 22 31 32 33 34 35 40 41 45(1), (3), (4), and (6) 46 48 49 50 91 92(1) and (3) 93 94(1), (3), (7), (8), and (10) 96(1), (3), (4), and (5) 97(1), (2), (3), (6), and (8) 98 99 100 101 102 103 104 108 112 113 114 115 116 117 118 119 120 121 122 124 130(3), (5), (10), (15), (16), and (19) 131 133 135 140 161 210
8: Section 130(14)
9: Sections 21(1) and (3) 37(1), (3), and (5) 39 42 44(1) and (3) 94(4), (5), (6), (9), and (11) 95 96(2) and (6) 97(5), (7), and (9) 130(6), (8), and (17)
10: Sections 109 110
11: Sections 53 54(1) and (5) 59(1) and (2) 65 80(1), (3), (4), and (5) 106(1) and (3) 130(9) and (18)
12: Section 237
13: Sections 5 11 23 24 25 26 27 43 188
14: Sections 47 130(2)
15: Section 136(8)
16: Section 45(2) and (5)
17: Sections 28 29 30 88 89 107 134 136(1), (2), (3), (6), (7), and (9) 139 209 235(1)(b) and (c), (2), and (3) 236 238 239 240 241 243 244(2) and (3)
18: Section 132
19: Sections 92(2) 94(2) and (12) 97(4) and (10)
20: Section 245
21: Sections 9(3) and (5) 71 81 106(2) and (4) 123 130(13) and (20) 136(4) and (5) 138
22: Sections 21(2) and (4) 37(2), (4), and (6) 44(2) and (4)
1: Amendments to Income Tax Act 2007
3: Income Tax Act 2007
Sections 8 to 140 2011-08-29 Income Tax Act 2007 Sections of this Part except those listed below. 2012-04-01 Income Tax Act 2007 Sections 9(3) and (5), 71, 81, 106(2) and (4), 123, 130(13) and (20), 136(4) and (5), 138 2013-06-30 Income Tax Act 2007 Sections 21(2) and (4), 37(2), (4), and (6), and 44(2) and (4)
4: Available capital distribution amount
1: In section CD 44(7)(b) no part is income no part is assessable income
2: In section CD 44 assessable income
3: Subsection (1) applies for the 2008–09 and later income years.
5: New section CG 5B
After section CG 5
CG 5B: Receipts from insurance, indemnity, or compensation for interruption or impairment of business activities
When this section applies
1: This section applies when a person receives an amount of insurance, indemnity, or compensation for an interruption or impairment of business activities resulting from an event. Income
2: The part of the insurance, indemnity, or compensation attributable to income that the person would have derived if not for the event is income of the person. Timing of income
3: The income is allocated to the earlier of—
a: the income year in which the amount is received:
b: the income year in which the amount is reasonably able to be estimated. amount, business, income, income year .
6: Attributed income of investors in multi-rate PIEs
In section CP 1(1) section HM 36 (Calculating amounts attributed to investors) sections HM 35, HM 35C, and HM 36 (which relate to the attribution of amounts to investors)
7: New section CW 1B
After section CW 1
CW 1B: Treaty of Waitangi claim settlements: rights to take timber
When this section applies
1: This section applies when a person's right to take timber (the old right new rights
a: the sole reason for the new rights replacing the old right is to facilitate a Treaty of Waitangi claim settlement process; and
b: the rights and obligations of the new rights are equivalent to the old right, ignoring differences that are solely for the reason in paragraph (a). Exempt income
2: An amount under section CB 24(1)(b) (Disposal of timber or right to take timber) for the extinguishing of the old right, or for the granting of the new rights, is exempt income of the relevant person. The amount is not income under that section. Exception
3: Subsection (2) Relationship with section DP 9B
4: Section DP 9B (Treaty of Waitangi claim settlements: rights to take timber) deals with the cost of the new rights for the person who is granted them. amount, exempt income, income, pay, person, right to take timber .
8: Dividend within New Zealand wholly-owned group
1: In section CW 10(1)(e) subsections (2) subsections (3)
2: Section CW 10(2)
3: Subsections (1) and (2) apply to—
a: dividends derived by a company, other than a Maori authority, on or after the first day of the company's 2010–11 income year; or
b: dividends derived by a Maori authority on or after the first day of the Maori authority's 2012–13 income year.
9: Attributed income of certain investors in multi-rate PIEs
1: After section CX 56(1) When this section also applies
1B: This section also applies when a foreign investment PIE attributes income to an investor who is, for the calculation period in which the amount is attributed,—
a: a notified foreign investor other than a person referred to in section HM 55D(6):
b: a transitional resident who has chosen a prescribed investor rate referred to in schedule 6, table 1, row 10 (Prescribed rates: PIE investments and retirement scheme contributions):
c: a transitional resident when the calculation period falls in the tax year in which the person becomes or ceases to be a transitional resident:
d: an investor in the PIE when the calculation period falls in the tax year in which the person either becomes or ceases to be resident in New Zealand.
2: In section CX 56(2)(b) (Prescribed rates: PIE investments and retirement scheme contributions)
3: In section CX 56(2)(b) as applicable. as applicable:
c: a person to whom section HM 57B (Prescribed investor rates for new residents) applies chooses not to apply the section to determine their prescribed investor rate for a resident year.
4: In section CX 56 foreign investment PIE notified foreign investor resident in New Zealand tax year transitional resident
5: Subsection (3)
6: Subsection (1) applies for the 2012–13 and later income years for a foreign investment variable-rate PIE and a notified foreign investor in the PIE.
10: Distributions to investors in multi-rate PIEs
1: In section CX 56B Excluded income .
2: In section CX 56B Treatment as non-resident passive income
2: Despite subsection (1), an amount paid by a foreign investment PIE to a notified foreign investor in the PIE is not excluded income under this section to the extent to which it is treated under section HM 44B (NRWT calculation option) as non-resident passive income.
3: In section CX 56B foreign investment PIE non-resident passive income notified foreign investor
4: Subsection (2) applies for the 2012–13 and later income years for a foreign investment variable-rate PIE and a notified foreign investor in the PIE.
11: New section CZ 23
After section CZ 22
CZ 23: Insurance or compensation for buildings replaced as revenue account property affected by Canterbury earthquakes
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, receives insurance or other compensation for buildings (the affected property
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 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 .
12: Taxes, other than GST, and penalties
The cross-heading before section DB 1 Taxes and other amounts
13: New section DB 3B
1: After section DB 3
DB 3B: Use of money interest
Deduction
1: A person is allowed a deduction for an amount of interest they are liable to pay under Part 7 of the Tax Administration Act 1994. Timing of deduction
2: The deduction is allocated under section EF 5 (Use of money interest payable by person). Link with subpart DA
3: This section supplements the general permission and overrides the capital limitation, the private limitation, and the employment limitation. The other general limitations still apply. amount, capital limitation, deduction, employment limitation, general limitation, general permission, private limitation .
2: Subsection (1) applies—
a: for the 2010–11 and later income years; and
b: for the 2009–10 income year,—
i: for a person who has not furnished a return of income for the income year on or before 24 November 2010; or
ii: for a person who has furnished a return of income on or before 24 November 2010, only in relation to an amount of interest imposed under Part 7
c: for the 2008–09 income year, only in relation to an amount of interest imposed under Part 7
i: in a return of income that they have furnished on or before 24 November 2010:
ii: in a notice of proposed adjustment that is issued on or before 24 November 2010.
14: New section DB 4B
After section DB 4
DB 4B: Fees to purchase funds in tax pooling accounts
Deduction
1: A person is allowed a deduction for expenditure incurred in purchasing an amount held in a tax pooling account to pay a liability for provisional tax, terminal tax, or an increase in an assessment of tax as described in sections RP 17 to RP 21 (which relate to tax pooling intermediaries). Timing of deduction
2: The deduction is allocated to the income year in which the amount is transferred into the person's tax account by the Commissioner to satisfy the person's obligation to pay the tax. Link with subpart DA
3: This section supplements the general permission and overrides the private limitation, the employment limitation, and the withholding tax limitation. The other general limitations still apply. amount, assessment, Commissioner, deduction, employment limitation, general permission, income year, intermediary, pay, private limitation, provisional tax, tax account with the Commissioner, tax pooling account, terminal tax, withholding tax limitation .
15: Cost of revenue account property
1: In section DB 23(2) No deduction
2: In section DB 23(2)(b) section CX 55 (Proceeds from disposal of investment shares) section CX 55, CX 56B, or CX 56C (which relate to portfolio investment income)
16: New section DB 54B
1: After section DB 54
DB 54B: Expenditure incurred by foreign investment PIEs
When this section applies
1: This section applies when a foreign investment PIE incurs expenditure or loss in deriving income attributable to a notified foreign investor in the PIE. No deduction
2: The PIE is denied a deduction for the amount of the expenditure or loss. Relationship with section DB 7
3: This section overrides section DB 7 (Interest: most companies need no nexus with income). Link with subpart DA
4: This section overrides the general permission. amount, deduction, foreign investment PIE, general permission, income, loss, notified foreign investor .
2: Subsection (1) applies for the 2012–13 and later income years for a foreign investment variable-rate PIE and a notified foreign investor in the PIE.
17: New section DP 9B
After section DP 9
DP 9B: Treaty of Waitangi claim settlements: rights to take timber
When this section applies
1: This section applies when a person's right to take timber (the old right new rights Cost of acquiring new rights
2: The person who is granted the new rights is treated, for each new right, as having acquired the new right for a cost equal to the expenditure they incurred in relation to the old right, but only to the extent that the expenditure relates to the land covered by the new right and has not been deducted previously. exempt income, land, person, right to take timber .
18: Cost of timber
1: After section DP 11(4)
4B: Subsection (2) does not apply if the amount of income of the person under section CB 24 would be exempt income under section CW 1B section CW 1B(3)
2: In section DP 11 exempt income income
19: Disposal of petroleum mining asset to associate
1: In section DT 9(1)(b) section EJ 12 or EJ 12B (which relate to petroleum development expenditure) section EJ 15 (Disposal of petroleum mining asset)
2: Section DT 9(2)
2: The miner is denied a deduction for the amount that section EJ 16(2) prevents from being allocated to the income year in which the miner disposes of the asset.
3: Subsections (1) and (2) apply for the 2008–09 and later income years.
20: Association rebates
1: In section DV 19(1)(a) mutual transaction mutual transaction with a member
2: In section DV 19(4) those mutual transactions those mutual transactions with members
3: In section DV 19(6)
a: in paragraph (a), the mutual transactions mutual transactions with members
b: in paragraph (b), assessable income assessable income referred to in paragraph (a)
4: Subsections (1) to (3)
21: New section DZ 19
1: After section DZ 18
DZ 19: Attributed CFC loss carried back under section EZ 32C
For the purposes of subpart DN (Attributed losses from foreign equity), an amount of net loss carried back to an income year under section EZ 32C(12) (Treatment in section EX 20C of currency effects on CFC's borrowing) for a CFC is treated as being an attributed CFC loss from the CFC in the income year. attributed CFC loss, CFC, income year, net loss .
2:
3: Subsection (1) applies for income years beginning—
a: on or after 1 July 2009; and
b: before 1 July 2013.
4: Subsection (2) applies for income years beginning on or after 1 July 2013. Section 21(2) repealed 2 November 2012 section 253 Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012
22: Valuation under herd scheme
1: In section EC 16(3) section DB 49(5) section DB 49(3)
2: Subsection (1) applies for the 2008–09 and later income years.
23: What this subpart does
In section EE 1(3)(d) and EE 52(3) EE 52(3), and EZ 23B(8) (Property acquired after depreciable property affected by Canterbury earthquakes)
24: Application of sections EE 48 to EE 52
In section EE 44(2)(c) ended. ended:
d: a person receives, for an item of property, an amount of insurance to which section EZ 23B (Property acquired after depreciable property affected by Canterbury earthquakes) applies.
25: Consideration for purposes of section EE 44
1: The heading to section EE 45(8) Irreparable damage or damage rendering building useless
2: In the first sentence of section EE 45(8) irreparable damage affected item
26: Events for purposes of section EE 44
Section EE 47(4) Irreparable damage or damage rendering building or grandparented structure useless
4: The third event is—
a: the irreparable damage of an item of property that is not a building or grandparented structure; or
b: the damage of an item of property that is a building or grandparented structure, or of the neighbourhood of the building or grandparented structure, causing the building or grandparented structure to be—
i: useless for the purpose of deriving income; and
ii: demolished or abandoned for later demolition.
27: Effect of disposal or event
1: In section EE 48(1) for the income year in which the disposal or event occurs
2: In section EE 48(2) , for the income year in which the disposal or the event occurs,
3: After section EE 48(2) Income year of depreciation recovery income
2B: The person derives the depreciation recovery income in the income year that is the earliest income year in which the consideration can be reasonably estimated.
4: The heading to section EE 48(3) When subsection (2) does not apply
5: Section EE 48(3)(a)
a: the building or grandparented structure has been rendered useless for the purpose of deriving income, and demolished or abandoned for later demolition as a result of damage to the building or grandparented structure or of the neighbourhood of the building or grandparented structure; and .
6: Section EE 48(3)(b)
7: Section EE 48(3)(c)
c: the damage is caused—
i: by a natural event not under the control of the person, an agent of the person, or an associated person; and
ii: other than as a result of the action or failure to act of the person, an agent of the person, or an associated person.
28: Use of money interest payable by Commissioner
1: In section EF 4(1) This subsection is overridden by subsections (2) and (3).
2: Section EF 4(2) to (4)
3: In section EF 4 assessment notice tax year
4: Subsections (1) and (2) apply for the 2011–12 and later income years.
29: Use of money interest payable by person
1: Section EF 5(1)
1: A deduction for interest payable by a person to the Commissioner under Part 7 of the Tax Administration Act 1994 is allocated to the income year in which the person pays the interest.
2: Section EF 5(2) to (5)
3: In section EF 5 Commissioner, deduction, income year, pay
4: Subsections (1) and (2) apply for the 2011–12 and later income years.
30: Section EF 6 repealed
1: Section EF 6
2: Subsection (1) applies for the 2011–12 and later income years.
31: What is included when spreading methods used
1: In section EW 15(1)(a)(ii) or the modified fair value method in section EW 15G EW 15D
2: In section EW 15(1)(b)(ii) or the modified fair value method in section EW 15G EW 15D
32: IFRS financial reporting method
Section EW 15D(2B)(b)
b: the person uses for the other financial arrangement a method that is neither of the following:
i: the IFRS financial reporting method:
ii: the method required under Determination G29: Agreements for sale and purchase of property denominated in foreign currency: exchange rate to determine the acquisition price and method for spreading income and expenditure
33: When calculation of base price adjustment required
In section EW 29(13) at the date of a change for the financial arrangement, where that change involves a change for the first income year for which a changed method is used for the financial arrangement, where the change in method is
34: Base price adjustment formula
1: In section EW 31(4) under section DB 11 (Negative base price adjustment) under sections DB 6 to DB 8 (which relate to deductions for interest) or, if none of those sections applies, under section DB 11 (Negative base price adjustment)
2: Subsection (1) applies for the 2008–09 and later income years.
35: Consideration when party changes from fair value method
1: In section EW 46B(1)(b) at the date of the change at the end of the first income year for which the replacement method is used for the financial arrangement
2: In section EW 46B(2) on the date of the change at the end of the first income year for which the replacement method is used for the financial arrangement
3: Subsections (1) and (2) apply for the 2008–09 and later income years.
36: Attributable CFC amount
1: In section EX 20B(3)(n) subsection (11). subsection (11):
o: attributed PIE income that, for a CFC, is not excluded income under section CX 56 (Attributed income of certain investors in multi-rate PIEs).
2: In section EX 20B attributed PIE income excluded income
37: Net attributable CFC income or loss
1: In section EX 20C(2) attributable CFC − (limited funding costs × fraction) − other deductions − later losses.
2:
3: After section EX 20C(9) Later losses
9B: Later losses
4:
5: Subsections (1) and (3) apply for income years beginning—
a: on or after 1 July 2009; and
b: before 1 July 2013.
6: Subsections (2) and (4) apply for income years beginning on or after 1 July 2013. Section 37(2) repealed 2 November 2012 section 254 Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 Section 37(4) repealed 2 November 2012 section 254 Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012
38: Non-attributing active CFC: test based on accounting standards
After section EX 21E(8)(d)
e: attributed PIE income that is included in the attributable CFC amount for the accounting period under section EX 20B(3)(o).
39: Limits on choice of calculation methods
1: Section EX 46(10)(a)
a: a fixed-rate share: .
2: Subsection (1)—
a: applies for income years beginning on or after 1 July 2009, except if paragraph (b) applies:
b: does not apply for a person and an income year in relation to a tax position taken by the person—
i: in a return of income filed before the date of Royal assent to the Taxation (Tax Administration and Remedial Matters) Act 2011; and
ii: relating to the calculation of FIF income or loss from shares; and
iii: relying on section EX 46(10)(a)
40: Fair dividend rate method: usual method
1: Section EX 52(13)(c)
c: average cost
i: if no share reorganisation occurs in the income year, the total amount of expenditure that the person incurs in acquiring or increasing the attributing interest in the FIF divided by the total for the income year of the shareholding increase in the interest for each acquisition or increase; or
ii: if a share reorganisation occurs in the income year, the amount calculated under section EX 54 for the year.
2: Subsection (1) applies for income years beginning on or after 1 April 2008.
41: Fair dividend rate method and cost method: when periods affected by share reorganisations
1: In section EX 54(1)(b) EX 52(8) EX 52(8), EX 52(12)
2: Subsection (1)
42: Additional FIF income or loss if CFC owns FIF
1: After section EX 58(6) Exclusion for insurance CFC meeting requirements of determination
7: The CFC's FIF income or loss does not include income from an income interest of less than 10% in a FIF if the CFC meets the requirements of a determination made by the Commissioner under section 91AAQ of the Tax Administration Act 1994.
2: Subsection (1) applies for income years beginning on or after 1 July 2009.
43: New section EZ 23B
After section EZ 23
EZ 23B: Property acquired after depreciable property affected by Canterbury earthquakes
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, receives insurance or compensation for items of depreciable property (the affected property
i: if not a building or grandparented structure, is irreparably damaged; or
ii: if a building or grandparented structure, is rendered useless for the purpose of deriving income, and demolished or abandoned for later demolition, because of damage to the building or grandparented structure or to the neighbourhood of the building or grandparented structure; and
b: in the absence of this section, would have in or before the current year, from insurance or compensation for the items of affected property (the affected class subsection (10)(b)
c: plans in the current year to acquire depreciable property (the replacement property subsection (7)
d: gives written notice to the Commissioner under subsection (9)
i: specifying the affected property:
ii: linking, for the purposes of this section, each item of acquired replacement property with an affected class. Depreciation recovery income and suspended recovery income
2: The amount for the affected class of the excess referred to in subsection (1)(b) (the excess recovery
a: remains after adjustment under subsection (3) or (6) (the suspended recovery income
b: is attributed to an income year by subsection (7). Effect of acquiring item of replacement property if suspended recovery income from affected property not in pool
3: If the person acquires an item of replacement property (the replacement item subsection (4)
a: is treated as not being included in the amount of the person's expenditure on the replacement item, for the purposes of determining—
i: under section EE 16(4) (Amount resulting from standard calculation) the item value or cost for the replacement item, if the person uses the diminishing value method or straight-line method for the replacement item; or
ii: under section EE 22 (Cases affecting pool) the cost of the replacement item, if the person uses the pool method for the replacement item; and
b: is a reduction in the amount of the suspended recovery income for the affected property. Amount of reduction: expenditure on replacement item and suspended recovery income
4: The amount of the reduction under s ubsection (3)(a) or (b)
a: zero, if the cost of the affected property equals or is less than the person's total expenditure in acquiring, with or before the replacement item, other replacement property linked with the affected property; or
b: the amount calculated using the formula— limited replacement cost × excess affected cost. Definition of items in formula
5: In the formula,—
a: limited replacement cost
i: the amount by which the cost of the affected property exceeds the total expenditure in acquiring, with or before the replacement item, other replacement property linked with the affected property:
ii: the amount of the expenditure on the replacement item:
b: excess
c: affected cost Effect of acquiring item of replacement property if suspended recovery income from affected property in pool
6: If the person acquires an item of replacement property (the replacement item
a: the amount of the person's expenditure on the replacement item is treated as being reduced, by the amount equal to the lesser of the amount of expenditure on the replacement item and the amount of suspended recovery income for the affected property after the acquisition of other replacement property with or before the replacement item, for the purposes of determining—
i: the adjusted tax value of the replacement item, if subparagraphs (ii) or (iii)
ii: the cost of the replacement item for the straight-line method, if that method is used to determine depreciation loss for the replacement item; and
iii: the adjusted tax value of the pool of the replacement item, if the person uses the pool method for the replacement item; and
b: the amount of the suspended recovery income for the affected property is reduced by the amount of the treated reduction under paragraph (a) Requirements for replacement property
7: An item of replacement property for a person must—
a: be depreciable property that is not depreciable intangible property; and
b: be acquired in or before the person's 2015–16 income year; and
c: be included in the same category under subsection (10)(b) subsection (10)(b)(i) or (ii)
d: be located in greater Christchurch as that term is defined in section 4 of the Canterbury Earthquake Recovery Act 2011, if the item is a building, grandparented structure, or commercial fit-out. Amount of depreciation recovery income
8: The person has, in an income year for affected property, an amount of depreciation recovery income equal to the amount of suspended recovery income for the affected property—
a: at the end of the income year, if that year is the 2015–16 income year and neither of paragraphs (b) and (c)
b: when in the income year the person decides not to acquire more replacement property, if neither of paragraphs (a) and (c)
c: when in the income year the person goes into liquidation or becomes bankrupt, if neither of paragraphs (a) and (b) Notice of election for affected property
9: A person choosing to rely on this section to suspend in a current year the recognition of suspended recovery income from the insurance or compensation for affected property must give written notice to the Commissioner—
a: 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
10: A notice under subsection (9)
a: describe the items of affected property; and
b: indicate in which of the following categories each item of affected property is included:
i: a building or grandparented structure not referred to in subparagraph (iii)
ii: commercial fit-out not referred to in subparagraph (iii)
iii: depreciable property for which the person uses the pool method:
iv: depreciable property not referred to in subparagraphs (i) to (iii)
c: give details of each item of replacement property acquired in the current year and the affected class to which the person is linking the item; and
d: give the amount of the expenditure on the replacement item and the reduction under subsection (3) or (6)
e: give the amount, for the affected class, of the suspended recovery income at the end of the current year. Disposal of replacement property: reduction in cost treated as depreciation loss
11: For the purposes of section EE 48, the amount by which a person's expenditure on a replacement item is treated as being reduced under subsection (3) or (6) Relationship to subpart EE
12: This section overrides subpart EE (Depreciation). adjusted tax value, amount, assessable income, building, commercial building, commercial fit-out, depreciable intangible property, depreciable property, depreciation loss, depreciation recovery income, grandparented structure, income year, liquidation, notice, pool, pool method, return of income, straight-line method .
44: New section EZ 32C
1: After section EZ 32
EZ 32C: Treatment in section EX 20C of currency effects on CFC's borrowing
When this section applies
1: This section applies for a person for an accounting period (the current period
a: the CFC is not an entity that carries on a business of banking or insurance and is not controlled by such an entity; and
b: the main activity of the CFC in the period described in subsection (9) (the offset period
c: the CFC is a party to financial arrangements (the funding arrangements
i: the financial arrangement is a liability of the CFC providing funds to the CFC; and
ii: when the financial arrangement is entered, none of the parties to the financial arrangement, the person, and the associated persons, has a reasonable expectation that the CFC will have more income than expenditure under the financial arrangement; and
d: as a result of changes in currency exchange rates, the CFC has an amount (a loan currency amount
e: the CFC has a loan currency amount from a funding arrangement for an accounting period—
i: other than the current period; and
ii: in the offset period for the current period; and
f: for either accounting period, a loan currency amount is included in the calculation for the funding arrangement of the amount of expenditure that contributes to the item limited funding costs in the formula in section EX 20C(2) (Net attributable CFC income or loss); and
g: for the relevant accounting period, the contribution of the item limited funding costs to the CFC's net attributable CFC income or net attributable CFC loss is reduced because the item fraction in that formula is less than 1; and
h: the person chooses in a return of income to have this section apply to the income year corresponding to the accounting period or to an earlier income year. Included loan currency amount for funding arrangement and current period
2: For a funding arrangement having a loan currency amount for an accounting period (the currency movement period included currency amount currency contribution × fraction − earlier adjustments. Definition of items in formula
3: In the formula in subsection (2),—
a: currency contribution
b: fraction
i: 1, if the loan currency amount is included in the calculation of the item attributable CFC; or
ii: the value for the funding arrangement and the currency movement period of the item fraction in the formula in section EX 20C(2), to the extent that the loan currency amount is included in the calculation of the item limited funding costs; or
iii: the fraction of the loan currency amount that is included in the item other deductions, to the extent that the loan currency amount is included in the calculation of that item:
c: earlier adjustments Conditions for adjustment of included currency amounts
4: For the current period, subsection (7) applies to decrease included currency amounts that are zero or negative and relate to funding arrangements and currency movement periods in the offset period if, for the offset period and the funding arrangements of the CFC, the total of the included currency amounts—
a: is greater than zero; and
b: is greater than the total of the loan currency amounts. Total amount of adjustments for included currency amounts
5: For the current period, subsection (7) decreases included currency amounts referred to in subsection (4) by a total amount (the total current adjustment
a: the total, for the offset period and the funding arrangements, of the included currency amounts:
b: the amount obtained for the offset period and the funding arrangements by subtracting the total of the loan currency amounts from the total of the included currency amounts:
c: the total of the amounts calculated, for each accounting period in the offset period and each funding arrangement, using the formula— loan contribution × fraction − earlier adjustments. Definition of items in formula
6: In the formula in subsection (5)(c),—
a: loan contribution
b: fraction
i: 1, if the amount is included in the calculation of the item attributable CFC; or
ii: the value for the funding arrangement and the accounting period of the item fraction
iii: the fraction of the amount that is included in the item other deductions
c: earlier adjustments Adjustment of included currency amount for funding arrangement and period
7: The amount of the total current adjustment is—
a: applied first to the current period and then, in the order of earliest to latest, to the other accounting periods in the offset period:
b: reduced, for each accounting period, by an amount corresponding to the total amount subtracted under paragraph (d) for the accounting period, with the result being the amount (the available current adjustment
c: applied for funding arrangements having, for an accounting period,—
i: a negative loan currency amount that contributed an amount of expenditure to the item limited funding costs
ii: an included currency amount that is negative or zero and from which the loan currency amount can be obtained by subtracting a positive amount (the difference
d: applied for each such funding arrangement, for the accounting period, by subtracting from the included currency amount for the funding arrangement an amount calculated using the formula— difference × available total differences. Definition of items in formula
8: In the formula in subsection (7)(d),—
a: difference
b: available
c: total differences Requirements for accounting periods in which adjustments made
9: For a current period for a CFC, adjustments may be made under subsection (7) for a funding arrangement and an accounting period if the following requirements are met:
a: the accounting period is the current period or 1 of the 4 accounting periods immediately before the current period; and
b: the accounting period begins on or after 1 July 2009; and
c: the CFC is resident under section YD 3 (Country of residence of foreign companies) in the same country or territory for the period (the continuity period
d: a group of persons exists that has, for the CFC and the continuity period,—
i: voting interests of 49% or more in total; and
ii: market value interests of 49% or more in total. Amount of adjustment included in item later losses in section EX 20C
10: For the purposes of section EX 20C(9B), the amount of an adjustment under subsection (7) for a CFC's funding arrangement and an accounting period is included in the item later losses for the funding arrangement and the accounting period. Amount of adjustment is expenditure of CFC under funding arrangement
11: For the purposes of section EW 31 (Base price adjustment formula), the amount of an adjustment under subsection (7) for a CFC's funding arrangement and an accounting period is expenditure incurred by the CFC under the funding arrangement in the accounting period to the extent that the included currency amount corresponding to the adjustment is not, in the absence of this subsection, included in expenditure incurred under the funding arrangement in the accounting period. Carrying back loss amounts arising from adjustments
12: If adjustments for a CFC under subsection (7) for an accounting period result in a net loss, or an increase in the net loss, of the person for the corresponding income year, the person—
a: may use under section DZ 19 (Attributed CFC loss carried back under section EZ 32C) the amount of the net loss, or of the increase, to offset net income—
i: for an earlier income year in the offset period; and
ii: that has not previously been offset under this subsection; and
iii: to the extent given by subsection (13); and
b: must not use in the corresponding income year the amount of net loss carried back to the earlier income year. Limit on loss amounts carried back
13: The total amount of net loss carried back under subsection (12) to an earlier income year must not exceed the amount, calculated for the earlier income year in the absence of adjustments under subsection (7) and offsets under subsection (12), that is the lesser of—
a: the net income, or the increase in net income, of the person for the earlier income year produced by including foreign currency amounts in the calculation of net attributable CFC income or loss from CFCs; and
b: the net income, or the increase in net income, of the person for the earlier income year produced by including net attributable CFC income or loss from funding arrangements of CFCs. No interest if tax payment excessive because of offset under subsection (12)
14: An amount of tax paid by a person for an income year is not overpaid tax for the purposes of Part 7 of the Tax Administration Act 1994 to the extent that the amount—
a: exceeds the income tax liability of the person for the income year because of the use under subsection (12) of net loss from a later income year to offset net income; and
b: is paid before the offset occurs. accounting period, associated person, attributable CFC amount, CFC, financial arrangement, income year, market value interest, net attributable CFC income, net attributable CFC loss, net income, net loss, return of income, voting interest .
2:
3: Subsection (1) applies for income years beginning—
a: on or after 1 July 2009; and
b: before 1 July 2013.
4: Subsection (2) applies for income years beginning on or after 1 July 2013. Section 44(2) repealed 2 November 2012 section 255 Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012
45: Apportionment of interest by excess debt entity
1: In section FE 6(3)(a)(i) sections FE 14(2) sections FE 3
2: Section FE 6(3)(ac)(ii) to (iv)
ii: the amount (the group finance cost member finance cost
iii: the amount found by multiplying the amount by which $2,000,000 exceeds the group finance cost by the ratio obtained by dividing the member finance cost for the excess debt entity by the group finance cost, if the group finance cost is more than $1,000,000 and less than $2,000,000 and subparagraph (i) does not apply; or
iv: zero, if the group finance cost is $2,000,000 or more and subparagraph (i) does not apply: .
3: After section FE 6(3) Alternative calculation
4: If a company that is in the same wholly-owned group of companies as the excess debt entity has a deduction for interest under any of sections DB 6 to DB 8, the company may choose to be treated as deriving the income that the excess debt entity would otherwise, under subsection (2), be treated as deriving for the income year. The amount of income is not calculated using the formula in subsection (2) but is limited as set out in subsection (5). Limitation on election amount
5: The amount of income for which the company may make the election under subsection (4) must not be more than the total amount of deductions that the company has for interest for the income year, having taken into account any other income that the company chooses to treat itself as deriving under subsection (4).
4: In section FE 6 wholly owned group of companies
5: Subsection (2) does not apply to a person and an income year in relation to a tax position taken by the person—
a: in a return of income filed before the date on which the Taxation (Tax Administration and Remedial Matters) Bill
b: relating to the apportionment of interest expenditure; and
c: relying on section FE 6(3)(ac)
6: Subsection (3) applies for the 2008–09 and later income years.
46: Calculation of debt percentages
1: In section FE 12(1) A natural person A natural person or an excess debt entity
2: Subsection (1) applies for the 2008–09 and later income years.
47: Rights and obligations of amalgamated companies
In section FO 4(2) Companies Act 1993, Companies Act 1993, or under this section in the case of an amalgamation of building societies,
48: Leases for inadequate rent
1: In section GC 5(1) section applies section applies in relation to leases of real and personal property
2: Subsection (1) applies for the 2008–09 and later income years.
49: Further eligibility requirements relating to investments
1: After section HL 10(2)(b)(vii)
viii: an amount of income under section CW 4 (Annuities under life insurance policies) or CX 40 (Superannuation fund deriving amount from life insurance policy).
2: Subsection (1) applies for the 2008–09 and later income years.
50: Portfolio entity tax liability and tax credits of portfolio tax rate entity for period
1: After section HL 21(12) Determining investors' prescribed investor rate
13: For the purposes of determining the item rate
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 (Portfolio investor allocated income and distributions of income by portfolio investment entities) does not apply.
2: In section HL 21 prescribed investor rate taxable income
3: Subsection (1) applies for the 2008–09 and later income years.
51: Outline of subpart and relationship with other Parts
1: After section HM 1(2)(i)
ib: section DB 54B (Expenditure incurred by foreign investment PIEs): .
2: After section HM 1(2) Outline of provisions related to particular PIEs
2B: Certain PIEs either have special rules related to their activities or are affected by some particular rules. These are set out below:
a: for a listed PIE, see
i: section CX 56C (Distributions to investors by listed PIEs):
ii: section EZ 63 (Disposal and acquisition upon entry):
iii: section HM 2(3), which relates to listed PIEs becoming multi-rate PIEs:
iv: section HM 18, which describes how an unlisted company becomes a listed PIE:
v: section HM 19, which relates to distributions of listed PIEs:
vi: section HM 21(4), for a transitional provision for investors in listed PIEs:
vii: section HM 28, for the consequences when a listed PIE does not meet a distributional requirement:
viii: sections MB 1(5) and MB 11, which relate to family scheme income:
b: for a life fund PIE, see
i: section CX 55 (Proceeds from disposal of investment shares):
ii: section DR 1(2) (Policyholder base allowable deduction of life insurer):
iii: section EY 1(2) (What this subpart does):
iv: section EY 2(6) (Policyholder base):
v: section HM 4, which is about who can be an investor:
vi: section HM 10, which excludes entities other than life fund PIEs carrying on a business of life insurance:
vii: section HM 17, for an additional entry rule for PIEs other than life fund PIEs:
viii: section HM 19, for an additional entry rule for listed PIEs other than life fund PIEs:
ix: section HM 26, for an exit rule for entities other than life fund PIEs starting a life insurance business:
x: section OB 35B (ICA debit for transfer from tax pooling account for policyholder base liability):
xi: section OP 33B (Consolidated ICA debit for transfer from tax pooling account for policyholder base liability):
c: for a foreign investment PIE, see
i: section CX 56 (Attributed income of certain investors in multi-rate PIEs):
ii: section CX 56B (Distributions to investors in multi-rate PIEs):
iii: section DB 54B (Expenditure incurred by foreign investment PIEs):
iv: section HM 6B, for the optional look-through treatment of income derived from other PIEs:
v: section HM 19B, for the particular requirements for foreign investment zero-rate PIEs:
vi: section HM 19C, for the particular requirements for foreign investment variable-rate PIEs:
vii: section HM 35C, which is about the determination of the income tax liability of a foreign investment PIE and the calculation of attributed PIE income for a notified foreign investor:
viii: sections HM 41(4) and HM 44(1B), for restrictions on the calculation method available to foreign investment PIEs:
ix: section HM 44B, for an additional calculation method for foreign investment PIEs:
x: section HM 47, which is about the calculation of the tax liability or tax credit of a foreign investment PIE:
xi: sections HM 55C to HM 55H, for the special requirements for foreign investment PIEs and their investors:
xii: section HM 71B, for the election mechanism for foreign investment PIEs:
xiii: schedule 6, tables 1 and 1B, for the prescribed tax rates for certain non-resident investors in foreign investment PIEs and the rates applying to certain sources of income attributed to investors:
xiv: section 28D of the Tax Administration Act 1994, for the information required from notified foreign investors.
52: What is a portfolio investment entity?
1: In section HM 2(2)(d) life fund PIE. life fund PIE:
e: a foreign investment PIE that is either a foreign investment zero-rate PIE or a foreign investment variable-rate PIE.
2: After section HM 2(3) Foreign investment PIEs
4: The provisions of the PIE rules as they relate to multi-rate PIEs apply in the same manner to foreign investment PIEs, unless a provision expressly states otherwise.
3: In section HM 2 foreign investment PIE foreign investment variable-rate PIE foreign investment zero-rate PIE
4: Subsections (1) and (2) apply for the 2012–13 and later income years for a foreign investment variable-rate PIE and a notified foreign investor in the PIE.
53: What is an investor class?
1: In section HM 5(4)(b) notified tax rates notified investor rates
2: In section HM 5
a: notified tax rate
b: notified investor rate
3: Subsection (1) applies for the 2010–11 and later income years.
54: Intended effects for multi-rate PIEs and investors
1: In section HM 6(1)(a) or other persons
2: After section HM 6(1)(a)
ab: in relation to proceeds of the investments that are attributable to notified foreign investors in a foreign investment PIE, the PIE has a tax liability—
i: calculated using a tax rate that is appropriate having regard to the income source and investment type; and
ii: resembling the tax liability of the investor if they were to make the investment directly: .
3: Section HM 6(2)(a)
a: the investor has no tax liability on income arising from proceeds for which the PIE has a tax liability, unless—
i: the investor has given the PIE a rate that is lower than the correct rate:
ii: the investor has been treated by a foreign investment PIE as a notified foreign investor for a period in which they do not in fact meet the requirements of section HM 55D for notified foreign investor status: .
4: In section HM 6 foreign investment PIE notified foreign investor
5: Subsection (1) applies for the 2010–11 and later income years.
6: Subsections (2) and (3) apply for the 2012–13 and later income years for a foreign investment variable-rate PIE and a notified foreign investor in the PIE.
55: New section HM 6B
1: After section HM 6
HM 6B: Optional look-through rules for PIEs
When this section applies
1: This section applies when—
a: a PIE (a retail PIE wholesale PIE
b: the retail PIE has sufficient information about the income derived by the wholesale PIE to enable it to account for the amount and to discharge its tax obligations in relation to the amount. Look-through treatment
2: The retail PIE may choose to apply a look-through approach to the amount, treating the amount as if it were not received by the wholesale PIE but derived directly from the person who paid the amount to the wholesale PIE. Foreign investment PIEs
3: When a retail PIE that is a foreign investment variable-rate PIE derives an amount allowable under section HM 55G from 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, attributed PIE income, foreign investment variable-rate PIE, foreign investment zero-rate PIE, foreign-sourced amount, income, pay, PIE .
2: Subsection (1) applies for the 2012–13 and later income years for a foreign investment variable-rate PIE and a notified foreign investor in the PIE.
56: Requirements
In section HM 7(c) section HM 71 section HM 71 or HM 71B
57: Residence in New Zealand
1: In section HM 8 Requirements
2: In section HM 8 Foreign investment zero-rate PIEs
2: Section HM 19B(2) modifies this section.
58: Investment types
1: In section HM 11 Types
2: In section HM 11 Foreign investment zero-rate PIEs
2: Section HM 19B(2) overrides this section.
3: In section HM 11 Foreign investment variable-rate PIEs
3: Section HM 19C(1) overrides subsection (1)(a).
4: Subsection (3) applies for the 2012–13 and later income years for a foreign investment variable-rate PIE and a notified foreign investor in the PIE.
59: Income sources
1: In section HM 12 sources types
2: In section HM 12(b)(viii) superannuation fund. superannuation fund:
ix: an amount of income under section CW 4 (Annuities under life insurance policies) or CX 40 (Superannuation fund deriving amount from life insurance policy).
3: In section HM 12 Nature of income
4: In section HM 12 Foreign investment zero-rate PIEs
2: Section HM 19B(2) overrides this section.
5: In section HM 12 Foreign investment variable-rate PIEs
3: Section HM 19C(2) overrides subsection (1)(a) and (b)(v).
6: Subsections (1) and (2) apply for the 2010–11 and later income years.
7: Subsection (5) applies for the 2012–13 and later income years for a foreign investment variable-rate PIE and a notified foreign investor in the PIE.
60: Maximum shareholdings in investments
1: After section HM 13(5) Certain investments of foreign investment PIEs
6: Despite the exclusion in subsection (1)(a) and (c), if a foreign investment variable-rate PIE has an investment in a land investment company resident in New Zealand or in an entity that qualifies for PIE status, the investment must––
a: carry voting interests in the company or entity, as applicable, of no more than 20%; or
b: have a market value of no more than 20% of all interests in the entity, if the entity is a unit trust. Exceeding threshold
7: Section HM 55H(4) and (5) subsection (6)
2: In section HM 13 foreign investment PIE resident in New Zealand
3: Subsection (1) applies for the 2012–13 and later income years for a foreign investment variable-rate PIE and a notified foreign investor in the PIE.
61: Minimum number of investors
1: In section HM 14(2) Requirements for listed PIEs
2: In section HM 14(2) If the entity is a company listed For listed PIEs, if the entity is a company listed
62: New section HM 19B
After section HM 19
HM 19B: Modified rules for foreign investment zero-rate PIEs
Income
1: Despite section HM 12, the income derived by a foreign investment zero-rate PIE must consist of no amount other than—
a: a foreign-sourced amount:
b: an amount allowable under section HM 55G, as measured under section HM 55H. Residence
2: A foreign investment zero-rate PIE is resident in New Zealand for the purposes of section HM 8 if it—
a: is a unit trust to which the Unit Trusts Act 1960 applies; and
b: has a trustee who is resident in New Zealand. amount, foreign investment zero-rate PIE, foreign- sourced amount, income, resident in New Zealand, trustee, unit trust .
63: New section HM 19C
1: Before section HM 20
HM 19C: Modified rules for foreign investment variable-rate PIEs
Investment types
1: Despite section HM 11(a) and (d), no investment of a foreign investment variable-rate PIE may include an interest in land in New Zealand or a right or option in relation to land in New Zealand. Income sources
2: Despite section HM 12(a) and (b)(v), the income derived by a foreign investment variable-rate PIE must not include an amount derived from—
a: an interest in land in New Zealand:
b: the disposal of an interest in land in New Zealand. amount, foreign investment variable-rate PIE, interest, land, New Zealand .
2: Subsection (1) applies for the 2012–13 and later income years for a foreign investment variable-rate PIE and a notified foreign investor in the PIE.
64: Exceptions for certain investors
1: Section HM 21(1)
1: The rule for a minimum number of investors in section HM 14(1) does not apply if—
a: an investor class of the entity includes at least 1 investor listed in schedule 29, part A (Portfolio investment entities: listed investors):
b: the only income that the investor derives is exempt income under section CW 41 or CW 42 (which relate to charities).
2: Section HM 21(2)
2: The rule for maximum investor interests in section HM 15(1) does not apply if the investor is—
a: listed in schedule 29, part A or B:
b: a person whose only income is exempt income under section CW 41 or CW 42.
3: In section HM 21 exempt income income
65: When entity no longer meets investment or investor requirements
1: In section HM 25(2)
a: in paragraph (a), the last day of the first quarter the first day of the second quarter
b: in paragraph (b), the last day of the second quarter the first day of the third quarter
2: Subsection (1) applies for the 2010–11 and later income years.
66: Rules for multi-rate PIEs
1: In section HM 31(1)(a) the investor's tax rate the investor's tax rates
2: After section HM 31(1) Foreign investment PIEs
1B: For the provisions relating to the treatment of notified foreign investors in foreign investment PIEs, see
3: In section HM 31 foreign investment PIE notified foreign investor
67: Rules for and treatment of investors in multi-rate PIEs
1: After section HM 32(2) Notified foreign investors
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 meets the requirements of subsection (1).
2: In section HM 32 foreign investment PIE notified foreign investor
68: Proxies for PIE investors
1: After section HM 33(2)(b)
bb: for a foreign investment PIE and a notified foreign investor, the investor were a notified foreign investor in the proxy; and .
2: After section HM 33(3)(d)
db: for a foreign investment PIE, collect information required from the notified foreign investors and act generally on behalf of the PIE in relation to its notified foreign investors; and .
3: In section HM 33 foreign investment PIE notified foreign investor
4: Subsections (1) and (2) apply for the 2012–13 and later income years for a foreign investment variable-rate PIE and a notified foreign investor in the PIE.
69: New section HM 35C
1: After section HM 35B
HM 35C: Determining amounts for notified foreign investors
When this section applies
1: This section applies for the purposes of sections HM 35 to HM 47 when a foreign investment PIE determines its income tax liability and calculates an amount of attributed PIE income for a notified foreign investor in the PIE. Single class of investors
2: For the purposes of the calculations, the PIE must treat its notified foreign investors as a single notional investor class. Taxable amounts
3: In section HM 35(5), in relation to an investor class that is made up of notified foreign investors, the taxable amount for an attribution period is equal to the assessable income of the PIE for the period for each particular income source and investment type of income of the class. Attributed amounts
4: For the purposes of section HM 36, in the calculation of an amount attributed to a notified foreign investor,—
a: the item loss
b: the item expenses
c: the item credits for fees
d: if the result given by the formula is negative, the result is treated as zero. amount, assessable income, attributed PIE income, attribution period, foreign investment PIE, income tax liability, investor class, notified foreign investor, taxable amount .
2: Subsection (1) applies for the 2012–13 and later income years for a foreign investment variable-rate PIE and a notified foreign investor in the PIE.
70: Calculating amounts attributed to investors
1: In section HM 36(1) and an investor class
2: In section HM 36(3)(e)
i: fees for management or administration services paid from or charged to the account of the investor as a member of the investor class when the services are ongoing for the investor class: .
3: In section HM 36 pay
71: When superannuation fund investor has conditional entitlement
1: Section HM 38(3)(b)
b: the person and the employer have agreed that the person will have an unconditional entitlement to the interest at the end of a vesting period that—
i: starts on the date when a contribution to the fund is made; and
ii: ends on the date when the employee becomes unconditionally entitled to the investor interest to which the contribution relates; and
bb: the vesting period is within 5 years of its end as described in paragraph (b)(ii); and .
2: Subsection (1) applies for the 2012–13 and later income years.
72: Options for calculation and payment of tax
1: After section HM 41(3) Foreign investment PIEs
4: Despite subsection (1)(c), a multi-rate PIE that chooses under section HM 71B to become a foreign investment PIE must not use the provisional tax calculation option in section HM 44 to calculate its income tax liability.
2: Subsection (1) applies for the 2012–13 and later income years for a foreign investment variable-rate PIE and a notified foreign investor in the PIE.
73: Provisional tax calculation option
1: After section HM 44(1) When this section does not apply
1B: Despite subsection (1), a multi-rate PIE that chooses under section HM 71B to become a foreign investment PIE must not apply this section to calculate and pay its income tax liability.
2: In section HM 44 foreign investment PIE
74: New section HM 44B
1: After section HM 44
HM 44B: NRWT calculation option
When this section applies
1: This section applies when—
a: a foreign investment PIE—
i: derives a dividend that is not fully imputed from a company resident in New Zealand; and
ii: pays an amount that represents some or all of the amount of the dividend to a notified foreign investor in the PIE 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 (Withholding tax on non-resident passive income). Excluding amount from calculation
2: In determining the net amount for notified foreign investors under sections HM 35 and HM 36, to the extent to which the amount represents an unimputed portion of the dividend, the amount is not included in—
a: the item assessable income
b: the item income Non-resident passive income
3: The NRWT rules apply to the amount paid to the extent to which the amount represents an unimputed portion of the dividend. Relationship with section CX 56B
4: Despite section CX 56B (Distributions to investors in multi-rate PIEs), the amount is not excluded income of the notified foreign investor. amount, company, dividend, excluded income, foreign investment PIE, imputation credit, income tax liability, multi-rate PIE, non-resident passive income, notified foreign investor, NRWT rules, pay, resident in New Zealand .
2: Subsection (1) applies for the 2012–13 and later income years for a foreign investment variable-rate PIE and a notified foreign investor in the PIE.
75: Voluntary payments
1: In section HM 45(1) and an investor reduces their investor interest in an investor class of the PIE
2: In section HM 45(3)(a)(ii) the month of the reduction the month in which the tax liability for the investor referred to in subsection (2) is calculated
3: In section HM 45 tax year
76: Calculation of tax liability or tax credit of multi-rate PIEs
1: After section HM 47(2) Notified foreign investors
2B: For the purposes of subsection (2), for a notified foreign investor in a foreign investment PIE, the amount of the PIE's tax liability for each investor is the sum of the amounts calculated using the formula in subsection (3) for the amount attributed to the investor for each particular income source and investment type.
2: After section HM 47(4)(a)(i)
ib: the tax rates applying under schedule 6, table 1B (Prescribed rates: PIE investments and retirement scheme contributions) for an amount attributed to a notified foreign investor in relation to each income source and investment type; or .
3: After section HM 47(5) Negative result and foreign investment PIEs
6: If the result of the formula in subsection (3) is negative and the multi-rate PIE has chosen under section HM 71B to become a foreign investment PIE, no tax credit arises in relation to an amount attributed to an investor in the PIE who is, at the time of attribution, a notified foreign investor.
4: In section HM 47 foreign investment PIE notified foreign investor
5: Subsections (1) to (3) apply for the 2012–13 and later income years for a foreign investment variable-rate PIE and a notified foreign investor in the PIE.
77: Use of foreign tax credits by PIEs
1: In section HM 51(1)(b) zero-rated. zero-rated:
c: a notified foreign investor in a foreign investment PIE.
2: In section HM 51 foreign investment PIE notified foreign investor
3: Subsection (1) applies for the 2012–13 and later income years for a foreign investment variable-rate PIE and a notified foreign investor in the PIE.
78: Use of tax credits other than foreign tax credits by PIEs
1: In section HM 53(1)(b)(ii) zero-rated. zero-rated:
iii: a notified foreign investor in a foreign investment PIE, in relation to a credit that is an imputation credit.
2: In section HM 53 foreign investment PIE imputation credit notified foreign investor
3: Subsection (1) applies for the 2012–13 and later income years for a foreign investment variable-rate PIE and a notified foreign investor in the PIE.
79: New heading and sections HM 55C to HM 55H
1: After section HM 55 Special rules for foreign investment PIEs
HM 55C: Modified source rules
Business in New Zealand
1: Despite section YD 4(2) (Classes of income treated as having New Zealand source), income attributed to a notified foreign investor by a foreign investment PIE is not treated as having a source in New Zealand merely because the business of the PIE is carried on in New Zealand. Contracts made or performed in New Zealand
2: Despite section YD 4(3), income attributed to a notified foreign investor by a foreign investment PIE is not treated as having a source in New Zealand merely because the income is derived from a contract made or performed in New Zealand but only to the extent to which the income relates to the PIE's investments outside New Zealand. business, foreign investment PIE, income, New Zealand, notified foreign investor
HM 55D: Requirements for investors in foreign investment PIEs
What this section does
1: This section applies to determine the treatment of a non-resident person who is an investor in a multi-rate PIE that chooses under section HM 71B to become a foreign investment PIE. This section overrides section HM 32(1). Notification
2: If the person meets the requirements of subsections (3) and (4), they may notify the PIE that they wish to be treated as a notified foreign investor. Status requirements
3: The person must not be—
a: resident in New Zealand; or
b: a CFC; or
c: a FIF for which the item income interest
d: a non-resident trustee of a trust that is not a foreign trust. Information requirements
4: The person must provide the PIE with the information set out in section 28D(1) of the Tax Administration Act 1994. Non-residents' rates
5: If the person does not meet the requirements of subsections (3) and (4), the PIE must treat them as a non-resident person to whom schedule 6, table 1, row 2 (Prescribed rates: PIE investments and retirement scheme contributions) applies. PIE relying on notification
6: Despite subsection (5), the PIE may rely on the notification given by a person and treat them as a notified foreign investor in the following circumstances:
a: the person notifies the PIE that they wish to be treated as a notified foreign investor, but they have misrepresented their eligibility for notified foreign investor status:
b: the person is a notified foreign investor but becomes resident in New Zealand and does not advise the PIE of the change in status:
c: the person has notified the PIE that they are a notified foreign investor but do not in fact meet the requirements for that status. When status may be disregarded
7: The Commissioner may advise a PIE to disregard notification by an investor under subsection (2) if the Commissioner considers on reasonable grounds that the person does not meet or no longer meets the requirements of subsections (3) and (4). As soon as reasonably practicable after receiving the advice, the PIE must treat the investor as a non-resident person described in subsection (5). Cancelling status
8: A notified foreign investor who wishes to have their notified foreign investor status cancelled, must notify the PIE. The status may be cancelled at any time. Transitional residents
9: Despite subsection (3)(a), a transitional resident who is an investor in a foreign investment zero-rate PIE may choose the prescribed investor rate set out in schedule 6, table 1, row 10. CFC, Commissioner, excluded income, FIF, foreign investment PIE, foreign trust, income interest, multi-rate PIE, non-resident, notified foreign investor, notify, resident in New Zealand, transitional resident, trustee
HM 55E: Changes in status of investors in foreign investment PIEs
When this section applies
1: This section applies when—
a: a person who is a notified foreign investor in a foreign investment PIE—
i: becomes resident in New Zealand in a tax year; or
ii: cancels their notified foreign investor status in a tax year under section HM 55D(8):
b: a person who is an investor in a foreign investment PIE and who is resident in New Zealand becomes non-resident in a tax year and chooses under section HM 55D(2) to have notified foreign investor status. Time for changing treatment
2: The PIE must change the treatment of the person as soon as reasonably practicable. But, at the latest, the change must be made from the start of the following tax year. foreign investment PIE, non-resident, notified foreign investor, resident in New Zealand, tax year
HM 55F: Treatment of income attributed to notified foreign investors
What this section does
1: This section applies for a foreign investment PIE for the purposes of the calculations that must be made under sections HM 36 and HM 47 in relation to the income attributed to a notified foreign investor in the PIE or the income tax liability of the PIE. Foreign investment zero-rate PIEs
2: A foreign investment zero-rate PIE must apply a prescribed investor rate of 0% under schedule 6, table 1, row 9 (Prescribed rates: PIE investments and retirement scheme contributions) to all amounts attributed to the investor. Foreign investment variable-rate PIEs
3: A foreign investment variable-rate PIE must, for all amounts attributed to the investor,—
a: identify the income source of each amount; and
b: identify the investment type of each amount that is not a foreign-sourced amount; and
c: apply the relevant prescribed investor rate set out in schedule 6, table 1B to the amount. amount, foreign investment PIE, foreign investment variable rate PIE, foreign investment zero-rate PIE, income, income tax liability, notified foreign investor, prescribed investor rate
HM 55G: Allowable amounts and thresholds for income with New Zealand source
For the purposes of sections HM 19B and HM 55H, and schedule 6 (Prescribed rates: PIE investments and retirement scheme contributions) and for a foreign investment zero-rate PIE, the allowable amounts of income that have a source in New Zealand and the thresholds applying to the amounts are—
a: interest income from financial arrangements with no term or a term of 90 days or less, for which the total value of the financial arrangements must not be more than 5% of the total value of the PIE's investments, determined without reference to an amount described in paragraph (c):
b: a dividend paid by a company resident in New Zealand, if the total value of all the shares held by the PIE in companies resident in New Zealand is not more than 1% of the total value of the PIE's investments:
c: income from a derivative instrument or other non-interest bearing financial arrangement that is related to the PIE's foreign investments:
d: attributed PIE income from a foreign investment zero-rate PIE or a PIE that meets the requirements of section HM 19B(1). amount, attributed PIE income, company, dividend, financial arrangement, foreign investment zero-rate PIE, foreign-sourced amount, income, interest, multi-rate PIE, New Zealand, resident in New Zealand
HM 55H: Treatment when certain requirements for foreign investment PIEs not met
Income sources
1: A foreign investment zero-rate PIE that derives an amount of income other than a foreign-sourced amount or an amount allowable under section HM 55G is treated from the date on which the income is derived as a foreign investment variable-rate PIE. When thresholds exceeded: PIE applying zero rates
2: Subsection (3) applies for an income year and a foreign investment zero-rate PIE when—
a: on the last day of a quarter (the first quarter
b: the failure is not remedied by the last day of the next quarter (the second quarter Variable rates
3: The PIE is treated from the first day of the third quarter as a foreign investment variable-rate PIE, and must apply to each amount of income the variable investor rates under schedule 6, table 1B for all income sources and investment types. When requirements not met: PIE applying variable rates
4: Subsection (5) applies for an income year and a foreign investment variable-rate PIE when—
a: on the last day of the first quarter, the PIE does not meet the requirements of—
i: section HM 13(6):
ii: section HM 19C:
iii: section HM 55F(3):
b: the failure is not remedied by the last day of the second quarter. Multi-rate PIE
5: The PIE is treated from the first day of the third quarter as a multi-rate PIE that is not a foreign investment PIE. Transitional rule
6: For the purposes of subsections (1) and (3), if a breach occurs and is not remedied before 1 April 2012, the PIE is treated as a multi-rate PIE that is not a foreign investment PIE. amount, foreign investment PIE, foreign investment variable rate PIE, foreign investment zero-rate PIE, income, income year, multi-rate PIE, quarter .
2: Subsection (1) applies for the 2012–13 and later income years for a foreign investment variable-rate PIE and a notified foreign investor in the PIE.
80: Prescribed investor rates: schedular rates
1: In section HM 56 Rates set out in schedule
2: In section HM 56(1) table 1 tables 1 and 1B
3: In section HM 56 When amount not included in taxable income
2: In the determination of a person's prescribed investor rate under subsection (1), the person's taxable income does not include an amount that—
a: arises because their notified 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.
4: In section HM 56 amount notified investor rate taxable income
5: Subsections (1), (3), and (4) apply for the 2010–11 and later income years.
81: New section HM 57B
1: After section HM 57
HM 57B: Prescribed investor rates for new residents
When this section applies
1: This section applies for the purposes of determining a person's prescribed investor rate under schedule 6, table 1 (Prescribed rates: investments and retirement scheme contributions) when the person becomes a New Zealand resident. Determining rate
2: Despite section BD 1(5)(c) (Income, exempt income, excluded income, non-residents' foreign-sourced income, and assessable income), the person must include the total amount of their non-residents' foreign-sourced income in their assessable income. Choosing not to apply this section
3: The person may choose not to apply this section for either the income year in which they become a New Zealand resident or the following income year (the resident years Relationship with section CW 27
4: Section CW 27 (Certain income derived by transitional resident) is ignored for the purposes of this section. amount, assessable income, income, income year, New Zealand resident, non-residents' foreign-sourced income, prescribed investor rate, taxable income .
2: Subsection (1) applies for the 2012–13 and later income years.
82: Notified investor rates
1: In section HM 60(1) an investor an investor other than a notified foreign investor
2: In section HM 60 notified foreign investor
83: Certain exiting investors zero-rated
1: In section HM 61 When tax rate zero
2: In section HM 61 Notified foreign investors
2: This section does not apply if the exiting investor is a notified foreign investor in a foreign investment PIE.
3: In section HM 61 foreign investment PIE notified foreign investor
4: Subsection (2) applies for the 2012–13 and later income years for a foreign investment variable-rate PIE and a notified foreign investor in the PIE.
84: Use of investor classes' losses
1: After section HM 64(3) Foreign investment PIEs
4: This section does not apply in relation to an investor who is a notified foreign investor in a foreign investment PIE.
2: In section HM 64 foreign investment PIE notified foreign investor
85: Use of land losses of investor classes
1: After section HM 65(4) Foreign investment PIEs
5: This section does not apply in relation to an investor who is a notified foreign investor in a foreign investment PIE.
2: In section HM 65 foreign investment PIE notified foreign investor
86: New section HM 71B
1: After section HM 71
HM 71B: Choosing to become foreign investment PIE
What this section applies to
1: This section applies to an entity that—
a: is, or is eligible to become, a multi-rate PIE; and
b: has, or intends to have, investors who are not resident in New Zealand; and
c: does not calculate its income tax liability using the provisional tax calculation option in section HM 44. Foreign investment zero-rate PIEs
2: The entity may choose to become a foreign investment zero-rate PIE if it meets the requirements of section HM 19B. Foreign investment variable-rate PIEs
3: An entity may choose to become a foreign investment variable-rate PIE if it meets the requirements of section HM 19C. Election to become foreign investment PIE
4: The entity makes the election by advising the Commissioner. If the entity is not an existing multi-rate PIE, the entity must notify the Commissioner under section 31B of the Tax Administration Act 1994. Commissioner, foreign investment PIE, foreign investment variable-rate PIE, foreign investment zero-rate PIE, income tax liability, multi-rate PIE, notify, resident in New Zealand .
2: Subsection (1) applies for the 2012–13 and later income years for a foreign investment variable-rate PIE and a notified foreign investor in the PIE.
87: When elections take effect
1: In section HM 72(1) section HM 71 to become a PIE section HM 71 or HM 71B to become a PIE or a foreign investment PIE, as applicable
2: In section HM 72 foreign investment PIE
88: New section HR 4B inserted
1: After section HR 4
HR 4B: Crown activities through New Zealand Superannuation Fund
Amounts of income derived and expenditure incurred by the Crown in relation to the activities of its New Zealand Superannuation Fund are determined using the rules in this Act that apply to companies. This treatment applies to determine—
a: how the amounts derived and incurred are quantified and timed:
b: whether income is treated as exempt income or excluded income:
c: any other matter concerning an activity of the Fund. amount, company, excluded income, exempt income, income, tax .
2: Subsection (1) applies for the 2011–12 and later income years.
89: Qualifying companies: transition into look-through companies
1: After section HZ 4C(3) Continuity of elections and methods
4: The look-through company steps into the place of the qualifying company in relation to Inland Revenue Act elections and methods relating to the qualifying company. Effect of elections and methods
5: After subsection (4)
2: In section HZ 4C Inland Revenue Acts
3: Subsections (1) and (2) apply for income years beginning on or after 1 April 2011.
90: Common ownership: group of companies
1: In section IC 3(1) none of which is a multi-rate PIE none of which is a multi-rate PIE or a listed PIE
2: Section IC 3(2B)(b)
b: the other companies in the group are—
i: multi-rate PIEs:
ii: land investment companies:
iii: subsidiary companies that meet the requirements of section HM 7(a) and (d) (Requirements):
iv: foreign PIE equivalents.
3: After section IC 3(2B) When listed PIEs included in group
2C: In relation to 2 or more companies of which 1 is a listed PIE, the companies are treated as a group of companies at a particular time or for a particular period if the PIE owns 100% of the voting interests in the other companies.
4: After section IC 3(2C) When foreign investment PIEs included in group
2D: For the purposes of subsection (2B)(b), a multi-rate PIE that chooses under section HM 71B (Choosing to become foreign investment PIE) to become a foreign investment PIE, must not be part of a group of companies that includes a land investment company.
5: In section IC 3 foreign investment PIE foreign PIE equivalent listed PIE
91: Breach in income year in which tax loss component arises
1: After section IP 4(2)(a)
ab: the amount of the tax loss component is no more than the net income that company B derives in the common span; and .
2: After section IP 4(3) Relationship with section IC 8
4: Despite subsection (2)(ab), section IC 8 overrides this section in limiting the amount that may be used when the net income derived in the common span is more than the net income of company B for the income year.
3: Subsection (1) applies for the 2008–09 and later income years.
92: New section IQ 1A inserted and amended
1: Before section IQ 1
IQ 1A: When this subpart applies
This subpart applies when, for a country or territory and a tax year, a person has—
a: an amount of attributed CFC net loss or FIF net loss—
i: for the tax year:
ii: carried forward from an earlier tax year:
b: an amount of attributed CFC income or FIF income calculated under the branch equivalent method and another person makes available to the person an amount of attributed CFC net loss or FIF net loss. attributed CFC net income, attributed CFC net loss, attributed FIF income method, branch equivalent method, company, FIF income, FIF net loss, group, tax year .
2: In section IQ 1A(b) branch equivalent method branch equivalent method or attributed FIF income method
3: Subsection (1) applies for the 2008–09 and later income years.
93: General treatment
1: Section IQ 1(1)
1: For an amount of a person's attributed CFC net loss or FIF net loss to be carried forward to a tax year,—
a: the person, if a company, must meet the requirements of section IA 5 (Restrictions on companies’ loss balances carried forward); and
b: the amount must be used in the order required by section IA 9 (Ordering rules); and
c: the amount must be adjusted when required by section IA 10 (Amended assessments).
2: Subsection (1) applies for the 2008–09 and later income years.
94: Ring-fencing cap on attributed CFC net losses
1: Before section IQ 2(1) When this section applies
1A: This section applies if a person, for a tax year and a country or territory (the jurisdiction
a: derives an amount of attributed CFC income or FIF income calculated under the branch equivalent method; and
b: has an amount of attributed CFC net loss or FIF net loss—
i: carried forward to the tax year:
ii: made available under section IQ 4 to the person by another company in the same group.
2: In section IQ 2(1A)(a) branch equivalent method attributable FIF income method
3: Section IQ 2(1)
1: The total amount of attributed CFC net loss and FIF net loss, relating to a CFC or FIF that is resident in the jurisdiction when the loss arises, that is subtracted from the person's net income for the tax year is—
a: the total amount of attributed CFC income and FIF income calculated under the branch equivalent method that the person derives in the tax year in relation to a CFC or FIF that is resident in the jurisdiction, if that amount is less than or equal to the amount referred to in paragraph (b); or
b: the total amount of such attributed CFC net loss and FIF net loss that—
i: the person carries forward to the tax year:
ii: is made available in the tax year to the person by another company in the same group.
4: Section IQ 2(1)(a) and (b)
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, if that amount is less than or equal to the amount referred to in paragraph (b); or
b: the total amount of such attributed CFC net loss and FIF net loss, available under subsection (1B), (1C) or section IQ 3, that—
i: the person carries forward to the tax year:
ii: is made available in the tax year to the person by another company in the same group.
5: Section IQ 2(1B) Losses from year after transition
1B: If an amount of attributed CFC net loss or FIF net loss arises for a person in an income year for which section IQ 2B applies to the person, or is made available to the person by a company for which the loss arises in an income year for which section IQ 2B applies to the company, all of the attributed CFC net loss or FIF net loss is available for subtracting from the person's net income for the tax year.
6: In section IQ 2(1C)
a: in the words before the paragraphs, a person's attributed CFC net loss an amount of attributed CFC net loss of a person, or made available to the person,
b: in paragraph (a), the amount available in the tax year for reducing the amount of the attributed CFC net loss available in the tax year for subtracting from
c: in paragraph (b), that attributed CFC net loss that is not available to the person after the tax year is equal to the attributed CFC net loss is reduced by
7: Section IQ 2(2)(b) and (c)
b: establishing their entitlement to make available, under sections IC 5 (Company B using company A's tax loss) or IQ 4, an amount of attributed CFC net loss or FIF net loss carried forward; or
c: applying subsection (1) in relation to another attributed CFC net loss or FIF net loss.
8: In section IQ 2 company FIF net loss income year
9: In section IQ 2 attributable FIF income
10: Subsections (1), (3), and (7) apply for the 2008–09 and later income years.
11: Subsections (4), (5), and (6) apply for income years beginning on or after 1 July 2009.
12: Subsection (2) applies for income years beginning on or after 1 July 2011.
95: Attributed CFC net loss from tax year before first affected year
1: In section IQ 2B Effect of attributed CFC net loss and FIF net loss from before first affected year
2: Section IQ 2B(1)(c)
c: is carried forward to a tax year (the conversion year
3: In section IQ 2B(2)(b) attributed CFC net loss or FIF net loss
4: In section IQ 2B company FIF net loss
5: Subsections (2) and (3) apply for income years beginning on or after 1 July 2009.
96: Ring-fencing cap on FIF net losses
1: Section IQ 3(1)
1: If a person's FIF net loss is carried forward to a tax year or FIF net loss is made available to the person in the tax year, the FIF net loss may be subtracted, under section IQ 2, from the person's net income for the tax year.
2: Section IQ 3(1)
1: If a person's FIF net loss is carried forward to a tax year (the current tax year
a: FIF net loss relating to a tax year for which section IQ 2B applies to the person is available to be subtracted under section IQ 2 from the person's net income for the current tax year; and
b: FIF net loss relating to a tax year for which section IQ 2B does not apply to the person—
i: is available to be subtracted from the person's net income for the current tax year to the extent of the equivalent CFC loss under section IQ 2B; and
ii: is reduced in the current tax year by the converted BE loss under section IQ 2B.
3: In section IQ 3(2) Despite this section Despite subsection (1) and section IQ 2
4: In section IQ 3(3) maximum amount referred to in subsection (1) amount that is available tax loss under section IQ 2(1)
5: Subsections (1), (3), and (4) apply for the 2008–09 and later income years.
6: Subsection (2) applies for income years beginning on or after 1 July 2009.
97: Group companies using attributed CFC net losses
1: Section IQ 4(1)
1: This section supplements the general rules relating to the grouping of net losses when, for a tax year (the current tax year company A
a: of attributed CFC net loss for the current tax year or carried forward from an earlier tax year, or FIF net loss for the current tax year or carried forward from an earlier tax year; and
b: remaining after section IQ 2 is applied for the current tax year and before any amount is made available to another company under this section.
2: Section IQ 4(2) Modifications to general rules for grouping net losses
2: For determining whether company A may make available an amount of attributed CFC net loss or FIF net loss to another company ( company B
a: the group of companies must be a wholly-owned group of companies; and
b: subpart IC (Grouping tax losses) and section GB 4 (Arrangements for grouping tax losses: companies) apply as if an amount of attributed CFC net loss or FIF net loss were a tax loss component; and
c: subsection (3) overrides sections IC 5(1)(d) and IC 8 (which impose limits on the amount of transferred tax loss):
d: section IA 3(2) (Using tax losses in tax year) and subpart IP (Meeting requirements for part-years) do not apply.
3: Section IQ 4(3)
3: The amount of attributed CFC net loss or FIF net loss that company A may make available to company B in the tax year is limited by the following:
a: the total amount made available by company A to group companies must not exceed the amount referred to in subsection (1); and
b: the resulting reduction in company B's net income in the tax year must not exceed the total amount that company B derives in the tax year of attributed CFC income from CFCs, or FIF income calculated under the branch equivalent method from FIFs, resident in the country or territory (the jurisdiction
i: the total amount of the attributed CFC income or FIF income taken into account in calculating a deduction of company B under section DN 4 or DN 8 (which relate to ring-fencing caps on deductions):
ii: the total amount of attributed CFC net loss or FIF net loss that company B derives in the tax year from CFCs or FIFs resident in the jurisdiction:
iii: the total amount of attributed CFC net loss or FIF net loss, from CFCs or FIFs resident in the jurisdiction, that company B carries forward to the tax year:
iv: the total amount of attributed CFC net loss or FIF net loss, from CFCs or FIFs resident in the jurisdiction, that is made available to company B for the tax year under this section by a company other than company A.
4: In section IQ 4(3)(b) branch equivalent attributable FIF income
5: In section IQ 4(3)(b)(iii) tax year tax year and is available tax loss for company B
6: In section IQ 4 FIF net loss
7: In section IQ 4 available tax loss
8: Subsections (1), (2), and (3) apply for the 2008–09 and later income years.
9: Subsection (5) applies for income years beginning on or after 1 July 2009.
10: Subsection (4) applies for income years beginning on or after 1 July 2011.
98: Section IQ 5 repealed
1: Section IQ 5
2: Subsection (1) applies for the 2008–09 and later income years.
99: Tax credits for resident withholding tax
1: After section LB 3(3) Exclusion: Trustees' RWT substitution payment
4: No credit exists under subsection (1) for an amount of tax equal to the amount of an RWT substitution payment that a trustee has paid to the person in relation to the tax. Effect of RWT substitution payment
5: A person who pays an RWT substitution payment has a tax credit for a tax year equal to the payment.
2: In section LB 3 RWT substitution payment trustee
3: Subsection (1) applies for the 2008–09 and later income years if the trustee has taken a tax position in a tax return that is consistent with subsection (1)
100: What this subpart does
1: In section LJ 1(2)(a) not derived from New Zealand sourced from outside New Zealand
2: In section LJ 1 derived from New Zealand
3: Subsections (1) and (2) apply for the 2008–09 and later income years.
101: Calculation of New Zealand tax
1: Section LJ 5(1) to (4B) What this section does
1: This section provides the rules that a person must use to calculate the amount of New Zealand tax for an income year in relation to each segment of foreign-sourced income of the person that is allocated to the income year. Calculation for single segment
2: If the person has a notional income tax liability of more than zero, the amount of New Zealand tax for the income year relating to the allocated segment is calculated using the following formula, the result of which can not be less than zero: (segment – person's deductions) × notional liability. person's net income Definition of items in formula
3: In the formula in subsection (2),—
a: segment
b: person's deductions
c: person's net income
d: notional liability When subsection (4B) applies
4: Subsection (4B) applies for the income year when the total amount of New Zealand tax for all segments of foreign-sourced income of the person calculated under subsection (2) Modification to results of formula for single segment
4B: Each amount of New Zealand tax calculated under subsection (2) in relation to each segment of foreign-sourced income is adjusted by multiplying the amount by the following ratio: person's notional income tax liability NZ tax. Definition of item in formula
4C: In the formula in subsection (4B), NZ tax
2: Subsection (1) applies for the 2008–09 and later income years.
102: Repaid foreign tax: effect on income tax liability
1: Section LJ 7(4)
4: In subsection (3), the date for payment is 30 days after the later of—
a: the date on which the person receives the refund:
b: the date of the notice of assessment in relation to which the person has used the credit.
2: Subsection (1) applies for the 2008–09 and later income years.
103: Repaid foreign tax: effect on FDP liability
1: Section LJ 8(5)
5: In subsection (4), the date for payment is 30 days after the later of—
a: the date on which the person or the company receives the refund:
b: the date for payment of FDP to the Commissioner in relation to the foreign dividend received for which the recalculation is required.
2: Subsection (1) applies for the 2008–09 and later income years.
104: Tax credits relating to attributed CFC income
1: Section LK 1(8) Date for payment
8: In subsection (7)(a), the date for payment is 30 days after the later of—
a: the date on which the person who paid the tax receives the refund:
b: the date of the notice of assessment in relation to which the person has used the credit.
2: Subsection (1) applies for the 2008–09 and later income years.
105: Tax credits for multi-rate PIEs
1: After section LS 1(2)(a)(ii)
iii: a notified foreign investor in a foreign investment PIE in relation to an imputation credit attached to a dividend derived by the PIE: .
2: In section LS 1 foreign investment PIE notified foreign investor
3: Subsection (1) applies for the 2012–13 and later income years for a foreign investment variable-rate PIE and a notified foreign investor in the PIE.
106: Tax credits for investors in multi-rate PIEs
1: Section LS 2(1)(c)
c: the income is not excluded income of the investor because—
i: the test in section CX 56(1)(b) (Attributed income of certain investors in multi-rate PIEs) is not met; or
ii: section CX 56(2)(b) applies.
2: In section LS 2(1)(c)(ii) section CX 56(2)(b) section CX 56(2)(b) or (c)
3: Subsection (1) applies for the 2010–11 and later income years.
4: Subsection (2) applies for the 2012–13 and later income years.
107: Family scheme income from amounts derived by dependent children
1: In section MB 11(1) This section applies for the purpose of determining the amount that represents the family scheme income of a person for an income year when the person is a principal caregiver of a dependent child and the dependent child derives in the income year an amount that is—
2: Section MB 11(2) Amount included in family scheme income
2: If the total of amounts derived by the dependent child in the income year and referred to in subsection (1) is more than $500, the family scheme income of the person for the income year includes an amount calculated using the formula— child's amounts − $500 principal caregivers. Definitions of items in formula
3: In the formula,—
a: child's amounts
i: derived by the dependent child in the income year; and
ii: referred to in subsection (1):
b: principal caregivers
3: In section MB 11 principal caregiver
108: Third requirement: residence
1: In section MC 5(2)(a) is has been
2: In section MC 5(3) resident a New Zealand resident
3: In section MC 5 resident
4: Subsections (1) and (2) apply for the 2008–09 and later income years.
109: Fifth requirement: full-time earner
In section MD 9(3)(c) section RD 5(6)(b)(ii), (iii), or (iv) section RD 5(6)(bb), (bc), or (bd)
110: Meaning of employment for this subpart
In section ME 2(1)(a) section RD 5(3) and (6)(b) and (c) section RD 5(3) and (6)(b), (bb), (bc), (bd), and (c)
111: Payment of tax credits
In section MK 3(5)(b) the fund provider asks for the payment to be made to provider B because
112: ICA payment of tax
1: In section OB 4(1) provisional tax paid provisional tax paid or an amount treated under section RC 32(5)(b) (Wholly-owned groups of companies) as a payment of provisional tax
2: Section OB 4(4)
4: The credit date is—
a: for an amount of income tax or provisional tax paid other than an amount referred to in paragraph (b), the day the tax is paid:
b: for an amount treated under section RC 32(5)(b) as a payment of provisional tax, the day on which notice of the allocation of the tax is given to the Commissioner.
3: Subsections (1) and (2) apply for the 2008–09 and later income years.
113: Reduction of further income tax
1: Section OB 67(2) Reduction applying for consecutive tax years
2: In relation to 2 tax years that are consecutive, the liability for further income tax at the end of the second tax year is reduced by the amount calculated using the formula— debit balance at end of second year − first year adjustment. Definition of items in formula
2B: In the formula in subsection (2),—
a: debit balance at end of second year
b: first year adjustment
i: of the first year's debit balance in the company's imputation credit account less the credits made to the account during the second tax year; and
ii: that cannot be less than zero.
2: In section OB 67(5) the formula the formula in subsection (4)
3: Subsections (1) and (2) apply for the 2008–09 and later income years.
114: Co-operative companies' notional distributions that are dividends
1: In section OB 80(2) credit attached – credit attached. tax rate
2: Subsection (1) applies for the 2008–09 and later income years.
115: BETA payment of income tax
1: Section OE 7(3B)
3B: Despite subsection (3) and section OP 101(2) (Consolidated BETA payment of income tax), the amount of BETA debits applied under elections under subsection (3) and section OP 101(2) relating to the attributed CFC income referred to in subsection (3) must be no more than the amount calculated under section OE 6(1) for the company that has the attributed CFC income, treating the item debit balances as zero.
2: Section OE 7(4)
3: In section OE 7(5) subsection (4) subsection (3), as limited by subsection (3B),
4: Section OE 7(6) Excess amount treated as tax loss component
6: If a company chooses under subsections (3) and (3B) to apply a debit amount that exceeds the total income tax liability for the attributed CFC income referred to in subsection (3), the excess amount is treated as an amount of tax loss component of the company having the attributed income calculated using the formula— debit applied – tax liability tax rate.
5: Section OE 7(7) Definition of items in formula
7: In the formula,—
a: debit applied
b: tax liability
c: tax rate
i: schedule 1, part A, clause 2 (Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe benefits), if the company is not a Maori authority; or
ii: schedule 1, part A, clause 7, if the company is a Maori authority.
6: Subsections (1) to (5) apply for the 2008–09 and later income years.
116: Section OE 8 repealed
1: Section OE 8
2: Subsection (1) applies for the 2008–09 and later income years.
117: New section OK 6B
1: After section OK 6
OK 6B: MACA attributed PIE income with imputation credit
Credit
1: A Maori authority that is an investor in a multi-rate PIE has a Maori authority credit for the amount of an imputation credit attributed to it under section HM 54 (Use of tax credits other than foreign tax credits by investors). Table reference
2: The Maori authority credit in subsection (1) is referred to in table O17: Maori authority credits, row 6B (attributed PIE income with imputation credit). Credit date
3: The credit date is the day the amount is attributed. amount, attributed PIE income, imputation credit, multi-rate PIE .
2: Subsection (1) applies for the 2008–09 and later income years.
118: Table O17: Maori authority credits
1: In table O17, after row 6, the following is inserted: 6B Attributed PIE income with imputation credit day of attribution section OK 6B
2: Subsection (1) applies for the 2008–09 and later income years.
119: Consolidated BETA payment of income tax
1: Section OP 101(1)
1: This section applies when, for a consolidated BETA group,—
a: attributed CFC income is derived by—
i: the consolidated BETA group, and there is a debit balance in the branch equivalent tax account of the consolidated BETA group, of a member of the consolidated BETA group, or of a BETA company (a BETA group company
ii: a BETA group company, and there is a debit balance in the branch equivalent tax account of the consolidated BETA group; and
b: the debits producing the debit balance arise from FDP that has been paid—
i: directly:
ii: by reducing a tax loss:
iii: to reduce an FDP liability under section RG 7 (Reduction of payments for conduit tax relief).
2: Section OP 101(2)
2: A company that is allowed under subsection (6)
3: Section OP 101(2B)
2B: Despite subsection (2) subsection (2) subsection (2)
4: Section OP 101(3)
5: In section OP 101(4) subsection (3) subsection (2) subsection (2B)
6: After section OP 101(4) Excess amount treated as tax loss component
4B: If a company chooses under subsections (2) and (2B)
a: of the BETA group company, if it has the attributed CFC income, or of the consolidated BETA group, otherwise; and
b: calculated using the formula— debit applied – tax liability tax rate. Definition of items in formula
4C: In the formula,—
a: debit applied subsections (2) and (2B)
b: tax liability
c: tax rate
i: schedule 1, part A, clause 2 (Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe benefits), if the company is not a Maori authority; or
ii: schedule 1, part A, clause 7, if the company is a Maori authority.
7: Section OP 101(5)
8: Section OP 101(6)
6: An election under subsection (2)
a: if the income tax liability of the consolidated BETA group is to be satisfied, the election may be made by—
i: the nominated company, if the debit balance is in the branch equivalent tax account of the consolidated BETA group:
ii: a company that is a member of the consolidated BETA group, if the debit balance is in the branch equivalent tax account of that company:
iii: a BETA group company, if the debit balance is in the branch equivalent tax account of that BETA group company:
b: if the income tax liability of a BETA group company is to be satisfied, the election may be made by the nominated company of the consolidated BETA group.
9: Section OP 101(7)
7: An election under subsection (2) subsection (2B)
10: Subsections (1) to (9) apply for the 2008–09 and later income years.
120: Section OP 102 repealed
1: Section OP 102
2: Subsection (1) applies for the 2008–09 and later income years.
121: ASCA lost excess available subscribed capital
1: Section OZ 5(1)(d)
d: the amount of the available subscribed capital, calculated on a per unit basis, is greater than the proceeds from the redemption for the unit.
2: In section OZ 5 MJ 5(1)
3: Subsection (1) applies for the 2008–09 and later income years.
122: Salary or wages
1: Section RD 5(6)(c)
c: a basic grant and independent circumstances grant made under regulations made under section 193 of the Education Act 1964, section 303 of the Education Act 1989, or an enactment substituted for those sections.
2: Subsection (1) applies for the 2008–09 and later income years.
123: 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); or
b: 33% of the employer's superannuation cash contribution, if the 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 .
124: Resident passive income
1: After section RE 2(6) Trustees' RWT substitution payment
7: A trustee may pay an amount of money (the RWT substitution payment RPI beneficiary income Effect of RWT substitution payment
8: The RWT substitution payment is treated as an amount of resident passive income that is beneficiary income, with the same nature as the RPI beneficiary income. There is no liability or obligation to withhold RWT in relation to the RWT substitution payment.
2: In section RE 2 beneficiary RWT substitution payment
3: Subsection (1) subsection (1)
125: Tax pooling intermediaries
1: In section RP 17 Meeting person A's obligations .
2: In section RP 17 Person A and group companies
2: For the purposes of this section, if person A is a company in a group of companies, person A also includes the other companies that are in the group at the time—
a: an amount is deposited in a tax pooling account under section RP 18; and
b: as applicable,—
i: is used or transferred under section RP 17B:
ii: is transferred under section RP 19.
3: In section RP 17 amount company group of companies
126: Tax pooling accounts and their use
1: After section RP 17B(3)(a)
ab: also arises when a person has—
i: before taking any action under subparagraph (ii), filed a return required to be provided for a tax type listed in subsection (8); and
ii: has made a voluntary disclosure in relation to the return:
ac: also arises when—
i: before any assessment or adjustment under subparagraph (ii) is made, the person has filed a return required to be provided for a tax type listed in subsection (8); and
ii: the Commissioner makes an assessment or adjustment increasing an amount previously payable: .
2: In section RP 17B(3)(c) previous assessment previous assessment or the amount that was previously payable under paragraph (ab) or (ac), as applicable
3: Section RP 17B(4) Transfers for provisional tax or terminal tax
4: A person who chooses to use funds in a tax pooling account to satisfy an obligation for provisional tax or terminal tax for a tax year may ask the tax pooling intermediary to arrange the transfer of an amount to their tax account with the Commissioner as follows:
a: on or before the date that is 75 days after their terminal tax date for the tax year unless paragraph (b) or (c) applies:
b: on or before the date that is 76 days after their terminal tax date for the tax year if—
i: the person's balance date falls at the end of October, November, or December; and
ii: the terminal tax date falls in a tax year that has a 29 February in it:
c: if the amount is to be transferred from funds deposited on the person's behalf in the tax pooling account under section RP 18 and the person's return filing requirements have been met, at any time. Group companies
4B: For the purposes of subsection (4)(c), if the person is part of a group of companies, the person includes the other companies in the group at the time at which a deposit to the tax pooling account is made, or funds purchased or used, as applicable.
4: In section RP 17B(5) under subsection (3)(a) as described in subsection (3)(a) to (ac)
5: After section RP 17B(6) Maximum amount of transfer
7: The maximum amount that a person may ask a tax pooling intermediary to transfer to meet an obligation to pay tax is—
a: for a transfer under subsection (4)(a) or (b), the amount payable:
b: for a transfer under subsection (4)(c), the amount of the funds deposited by the person under section RP 18:
c: for a transfer under subsection (5), the increased amount of tax payable:
d: for a transfer under subsection (6), the amount of deferrable tax payable. Extended meaning for increased amount of tax and deferrable tax
8: For the purposes of sections RP 17 to RP 21, an increased amount of tax or deferrable tax includes an amount relating to—
a: tax paid or payable under the PAYE rules, ESCT rules, RSCT rules, RWT rules, or NRWT rules:
b: income tax, GST, FBT, further income tax, and imputation penalty tax payable under section 140B of the Tax Administration Act 1994. When subsection (10) applies
9: Subsection (10) applies when—
a: a person is liable for an increased amount of tax that relates to income tax or resident withholding tax; and
b: subsection (3)(ab)(ii) applies in relation to the amount; and
c: the person has not filed the return required by subsection (3)(ab)(i) before the voluntary disclosure is made. Commissioner's discretion to allow use of funds
10: On application by the person, the Commissioner may agree in writing that they may use funds in a tax pooling account for the increased amount of tax if the Commissioner is satisfied that—
a: the increased amount arises as a result of an event or circumstance beyond the person's control; and
b: the person has a reasonable justification or excuse for not filing the return by the required date; and
c: the person has an otherwise good compliance history for the 2 income years before the income year in which the voluntary disclosure referred to in subsection (3)(ab)(ii) is made. Review
11: After the expiry of 1 year, but before the expiry of 2 years, after the commencement of subsection (10), the Commissioner must—
a: review the operation of subsections (9) and (10); and
b: assess the impact of these subsections; and
c: consider whether any amendments to the law are necessary or desirable and, in particular, whether these subsections are needed; and
d: report the findings to the Minister of Revenue.
6: In section RP 17B balance date corresponding income year income tax return of income
127: Transfers from tax pooling accounts
Section RP 19(3)
3: The credit date for an amount transferred to a person's tax account is—
a: for a transfer under section RP 17B(4)(a) or (b), the relevant instalment date set out in schedule 3, part A (Payment of provisional tax and terminal tax):
b: for a transfer under section RP 17B(4)(c), the date on which the person deposited the funds in a tax pooling account:
c: for a request made within the 60-day period referred to in section RP 17B(5) or (6), a date nominated that is no earlier than the original due date for the relevant period:
d: in any other case, the date on which the Commissioner receives the request for the transfer.
128: New section RP 19B inserted
After section RP 19
RP 19B: Transfers for certain expected tax liabilities
Who this section applies to
1: This section applies to a person who—
a: expects to have an income tax or provisional tax liability for a tax year; and
b: has acquired funds in a tax pooling account other than by depositing them on their own account; and
c: has not yet filed a return of income in relation to the liability for the tax year. Using funds
2: The person may choose to use the funds towards the payment of the liability for the tax year on meeting all the requirements of this section. Requirements at time of making request
3: At the time of making the request, the person must—
a: for an income tax liability, have met all their return filing requirements for earlier tax years:
b: for a provisional tax liability, have met all their obligations under the provisional tax rules for the tax year. Effective date of transfer
4: The effective date that the person nominates for the transfer of funds must correspond to the relevant instalment date set out in schedule 3, part A (Payment of provisional tax and terminal tax). Refunds
5: If, as a result of a transfer under this section, excess tax arises for the person, the amount of excess tax is treated as follows:
a: first, the amount is transferred to meet a liability for the person, as applicable, for—
i: provisional tax or terminal tax under section RP 17B(4)(a) or (b):
ii: an increased amount of tax under section RP 17B(5):
iii: an obligation to pay deferrable tax under section RP 17B(6):
b: second, the amount is transferred with an effective date that is no earlier than the date on which the Commissioner received the later request:
c: third, the amount is refunded to the person. Relationship with section RP 17B
6: This section overrides section RP 17B(7)(a). amount, Commissioner, instalment date, provisional tax, provisional tax rules, return of income, tax pooling account, tax year, terminal tax .
129: Refusals to transfer amounts
1: The section heading to section RP 20 Declining, amending, or reversing transfers
2: After section RP 20(2) Non-compliance
2B: If the Commissioner considers that the request does not comply with sections RP 17 to RP 21, the Commissioner may—
a: decline to process the request:
b: amend the request:
c: reverse the transfer.
130: Definitions
1: This section amends section YA 1
2: The definitions of amalgamated company, amalgamating company, amalgamation amalgamated company
a: the 1 company that results from and continues after an amalgamation and that may be 1 of the amalgamating companies or a new company:
b: for an amalgamation of building societies, a building society described as society B amalgamation amalgamating company
a: a company that amalgamates with 1 or more other companies under an amalgamation:
b: for an amalgamation of building societies, a building society described as society A society B amalgamation amalgamation
a: an amalgamation to which both of the following apply:
i: it occurs under Part 13 or 15 of the Companies Act 1993, or it occurs or occurred under a foreign law that has the same or similar effect to Part 13 or 15 of the Companies Act 1993; and
ii: it causes 2 or more companies to amalgamate and continue as 1 company:
b: a transfer by a building society ( society A society B
i: a notice of the transfer (the notice
ii: society A's funds, property, and assets are transferred or assigned to society B, except to the extent required to settle its affairs before being removed from the register of building societies; and
iii: society A does not carry on business after the notice is registered, except to the extent required to settle its affairs before being removed from the register of building societies; and
iv: society A's liabilities are satisfied or assumed by society B; and
v: society A is or will be removed from the register of building societies as soon as practicable after the notice is registered .
3: In the definition of available tax loss
c: an attributed CFC net loss or FIF net loss carried forward that, under subpart IQ (Attributed controlled foreign company net losses and foreign investment fund net losses), is required to be subtracted from the net income:
d: the amount of another company's attributed CFC net loss or FIF net loss that, under subpart IQ, is subtracted from the net income .
4: In the definition of balance date subpart RC (Provisional tax) subpart RC (Provisional tax), section RP 17B (Tax pooling accounts and their use)
5: In the definition of employee
ab: for the purposes of the FBT rules, includes a shareholder-employee who has chosen under section RD 3(3) to treat amounts paid to them in the income year in their capacity as employee as income other than from a PAYE income payment: .
6: In the definition of fixed-rate share payable payable:
i: in section EX 46(10)(a) and subpart FE (Interest apportionment on thin capitalisation), means a share meeting the requirements of paragraph (f)(i) and (iii) .
7: The following is inserted in its appropriate alphabetical order: foreign investment PIE
a: meets the requirements of sections HM 55C to HM 55H (which relate to the particular requirements for and treatment of foreign investment PIEs); and
b: chooses under section HM 71B (Choosing to become a foreign investment PIE) to become a foreign investment zero-rate PIE or a foreign investment variable-rate PIE foreign investment variable-rate PIE
a: meets the requirements of section HM 19C (Requirements for foreign investment variable-rate PIEs); and
b: chooses under section HM 71B (Choosing to become a foreign investment PIE) to become a foreign investment variable-rate PIE foreign investment zero-rate PIE
a: meets the requirements of section HM 19B (Requirements for foreign investment variable-rate PIEs); and
b: chooses under section HM 71B (Choosing to become a foreign investment PIE) to become a foreign investment zero-rate PIE .
8: In the definitions of jurisdictional attributed income, jurisdictional BE income, jurisdictional income ratio resident group member Attributed CFC net loss from tax year before first affected year Effect of attributed CFC net loss and some FIF net loss from before first affected year
9: In the definition of land investment company sources types
10: In the definition of major shareholder at least 10% of the voting rights of the company at least 10% of the voting and market value interests in the company
11: The following are inserted in their appropriate alphabetical order: notified foreign investor
a: meets the requirements of sections HM 55D(3) and (4) (Requirements for investors in foreign investment PIEs); and
b: notifies the PIE under section HM 55D(2) that they wish to be treated as a notified foreign investor .
12: In the definition of PIE rules
a: in paragraph (a)(v), and DB 54 to DB 54B
b: after paragraph (a)(v), the following is inserted:
vb: section EX 20B(3)(o) (Attributable CFC amount): :
c: in paragraph (a)(viii), IC 3(2B) IC 3(2B) to (2D)
d: in paragraph (b), 28B 28B, 28D
13: In the definition of prescribed investor rate retirement scheme contributions) retirement scheme contributions), modified as necessary by section HM 56(2) HM 57B
14: In the definition of revenue account property person person:
d: is a non-Kyoto greenhouse gas unit .
15: The following is inserted in its appropriate alphabetical order: RWT substitution payment .
16: Subsection (5) does not apply in relation to a tax position taken by a person—
a: in the period from 1 April 2008 to 30 November 2010; and
b: in relation to the payment of fringe benefit tax; and
c: relying on section RD 3(2) to (4)
17: Subsections (6) and (8) apply for income years beginning on or after 1 July 2009.
18: Subsection (9)
19: Subsection (10) applies for the 2008–09 and later income years.
20: Subsection (13) applies for the 2012–13 and later income years.
131: No look-through rule for companies in certain cases
1: In section YC 11(3) market value interest would market value interest in the issuing company would
2: Subsection (1) applies for the 2008–09 and later income years.
132: Corporate spin-outs
Section YC 13(1)(c)
c: before the transfer or issue, the original parent is treated as holding an interest in the spun-out company that is a voting interest of more than 50% or, if a market value circumstance exists, a market value interest of more than 50%, both calculated as if section YC 4 did not apply to treat the original parent's interests in the spun-out company as being held by others; and .
133: Directors' knowledge of failure to meet requirements of continuity provision
1: In section YC 15(1)(b) the failure, but for that concessionary application, to meet the requirements would have occurred in the absence of transactions of the following types:
2: In section YC 15(1)(b)(iii) unit trust; and unit trust:
iv: the sale of shares in a company other than in the ordinary course of trading on a recognised exchange between persons, each of which is not a company associated with the company and has a direct voting interest or direct market value interest of less than 5%, calculated before the application of section YC 4 as modified by section YC 11:
v: transfers, between a company and the company's shareholders, of shares in the company that in total for the company's income year would be a direct voting interest or direct market value interest of less than 5% if held by a single person; and .
3: In section YC 15(1)(b)(iv) sale transfer
4: Section YC 15(1)(b)(v)
v: the issue, redemption, or cancellation by a company, or the transfer to or from the company, or the transfer to an employee of the company from a trustee of a trust with no beneficiary other than the company and the company's employees, of shares in the company, or options over shares in the company, that in total for the company's income year would be a direct voting interest or direct market value interest of less than 5% if held by a single person; and .
5: Subsections (1), (2), (3), and (4) apply for the 2008–09 and later income years.
134: New section YD 3B
1: After section YD 3
YD 3B: Crown
For the purposes of this Act and for the avoidance of doubt, Her Majesty the Queen in right of New Zealand is regarded as resident in New Zealand. New Zealand, resident in New Zealand .
2: Subsection (1) applies for the 2011–12 and later income years.
135: New section YZ 3
1: After section YZ 2
YZ 3: Saving effect of section DF 5 of Income Tax Act 1994
When this section applies
1: This section applies when a person—
a: has made a payment to which section DC 1 (Lump sum payments on retirement) would otherwise apply in the absence of this section; and
b: has allocated the deduction for the payment to an income year relying on the wording used in section DF 5 (Retiring allowances payable to employees) of the Income Tax Act 1994; and
c: has taken the tax position for the allocation on or before 22 February 2011. Savings provision
2: Despite the express wording used in section DC 1, section DF 5 continues to apply for the person in relation to the tax position in the same manner as it applied immediately before the repeal of the Income Tax Act 1994 by the Income Tax Act 2004. deduction, income year, pay .
2: Subsection (1) applies for the 2008–09 and later income years.
136: Schedule 1—Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe benefits
1: In schedule 1 clauses 2 to 8 clauses 2 to 9
2: In schedule 1 clauses 3 to 8 clauses 3 to 9
3: After schedule 1
9: 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.
4: In schedule 1 RD 67 RD 67(a)
5: In schedule 1 RD 67 RD 67(a)
6: In schedule 1 0.30 0.33
7: In schedule 1 0.30 0.33
8: In schedule 1 0.38 0.33
9: Subsections (1), (2), (3), (6), and (7) apply for the 2011–12 and later income years.
137: Schedule 6—Prescribed rates: PIE investments and retirement scheme contributions
1: Schedule 6 Row Conditions Prescribed rate 2 For a non-resident person other than a person described in row 7B or 9 0.280
2: In schedule 6 Row Conditions Prescribed rate 7B For a non-resident person who is a notified foreign investor in a foreign investment variable-rate PIE, see table 1B variable 9 For a non-resident person who is a notified foreign investor in a foreign investment zero-rate PIE. 0.000 10 For a transitional resident who is an investor in a foreign investment zero-rate PIE. 0.000
3: After schedule 6, 1B Foreign investment variable-rate PIEs and notified foreign investors A foreign investment variable-rate PIE must apply the prescribed investor rates set out in table 1B in relation to income attributed to notified foreign investors in the PIE. Table 1B 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, and 3 to 5, 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 Interest derived under a financial arrangement, being an amount referred to in the definition of interest 0.0144 5 A fully imputed dividend derived from a company resident in New Zealand. 0.0000 6 A foreign-sourced amount. 0.0000 7 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: Subsections (1) to (3) apply for the 2012–13 and later income years for a foreign investment variable-rate PIE and a notified foreign investor in the PIE.
138: Schedule 32––Recipients of charitable or other public benefit gifts
1: In schedule 32
a: after the entry for International Christian Aid (ICA) Jasmine Charitable Trust No 2
b: after the entry for New Zealand Disaster Assistance Response Team Trust New Zealand Good Samaritan Heart Mission to Samoa Trust
c: after the entry for New Zealand Sports Foundation (Incorporated) NZ-Iraqi Relief Charitable Trust
d: after the entry for Register of Engineers for Disaster Relief New Zealand RNZWCS Limited
e: before the entry for Sampoerna Foundation Limited Ruel Foundation
f: after the entry for The Band Aid Box The Cambodia Charitable Trust
g: after the entry for The Sir Walter Nash Vietnam Appeal The Unions Aotearoa International Development Trust
2: Subsection (1) applies for the 2012–13 and later tax years.
139: Schedule 39—Items for purposes of definition of special excluded depreciable property
1: In schedule 39 Fish processing buildings Tannery buildings affected by acid
2: Subsection (1) applies for the 2011–12 and later income years.
140: Minor textual amendments to Income Tax Act 2007
1: The Income Tax Act 2007 schedule
2: Subsection (1) applies for the 2008–09 and later income years.
2: Amendments to Tax Administration Act 1994
141: Tax Administration Act 1994
Sections 142 to 190 Tax Administration Act 1994 2011-08-29 Tax Administration Act 1994
142: Interpretation
1: This section amends section 3(1)
2: The definitions of book and document book or document
3: In the definition of challenge
ab: to commence proceedings under section 89K(6) .
4: The following definition is inserted, in alphabetical order: challenge notice section 89P .
5: The following definition is inserted, in alphabetical order: document
a: a thing that is used to hold, in or on the thing and in any form, items of information:
b: an item of information held in or on a thing referred to in paragraph (a):
c: a device associated with a thing referred to in paragraph (a) and required for the expression, in any form, of an item of information held in or on the thing .
6: In the definition of day of determination of final liability
7: In the definition of disputable decision
iv: to issue a Commissioner's notice of proposed adjustment under section 89B, a Commissioner's disclosure notice or statement of position under section 89M .
8: The following definition is inserted, in alphabetical order: duty of the Commissioner .
9: The following definition is inserted, in alphabetical order: Inland Revenue officer .
10: After paragraph (a)(xiii) of the definition of tax
xiv: a fee described in section 226C .
11: Subsections (4) and (7) apply for a dispute initiated by a taxpayer issuing a notice of proposed adjustment after the enactment of the Taxation (Tax Administration and Remedial Matters) Act 2011
12: Subsection (6) applies for a dispute or challenge, in relation to which there has been no election into the small claims jurisdiction of a Taxation Review Authority before the day that the Taxation (Tax Administration and Remedial Matters) Act 2011
143: Commissioner may access premises to obtain information
In section 16(1)
a: books and documents documents
b: books or documents documents
144: Power to remove and copy documents
1: In section 16B(1) books or documents documents
2: In section 16B(2) books or documents documents
3: In section 16B(3) book or document document
4: In section 16B(4) book or document document
145: Power to remove and retain documents for inspection
1: In section 16C(1) books or documents documents
2: In section 16C(2) books or documents documents
3: In section 16C(5) book or document document
4: In section 16C(6) Books or documents Documents
5: In section 16C(7)
a: books or documents documents
b: book or document document
146: Information to be furnished on request of Commissioner
1: In section 17(1) books and documents documents
2: In section 17(1B) book or document document
3: In section 17(1D) books and documents documents
4: In section 17(3)
a: books or documents documents
b: books and documents documents
5: In section 17(4) books or documents documents
6: In section 17(6) books or documents documents
147: Court orders for production of information or return
In section 17A(15) information book or document document
148: Inquiry by Commissioner
In section 19(1) books and documents documents
149: Privilege for confidential communication between legal practitioners and their clients
1: In section 20(1) book or document document
2: In section 20(2) book or document document
3: In section 20(3) book or document document
4: In section 20(4) book or document document
5: In section 20(5) book or document document
6: In section 20(6) information, books, and documents information and documents
150: No requirement to disclose tax advice document
1: In section 20B(1) book or document document
2: In section 20B(2) book or document document
3: In section 20B(3) book or document document
151: Treatment of book or document
1: In the heading to section 20C book or document document
2: In section 20C(1) book or document document
3: In section 20C(2) book or document document
4: In section 20C(3) book or document document
5: In section 20C(4) book or document document
152: Claim that book or document is tax advice document
1: In the heading to section 20D book or document document
2: In section 20D(1) book or document document
3: In section 20D(2) book or document document
4: In section 20D(3) book or document document
5: In section 20D(4) book or document document
6: In section 20D(5) book or document document
153: Book or document or part of book or document included in tax advice document
1: The heading to section 20E Document or part of document included in tax advice document
2: In section 20E book or document document
154: Person must disclose tax contextual information from tax advice document
1: In section 20F(1) book or document document
2: In section 20F(2) book or document document
155: Challenge to claim that book or document is tax advice document
1: In the heading to section 20G book or document document
2: In section 20G(1) book or document document
3: In section 20G(2) book or document document
156: Information requisitions in relation to offshore payments
In section 21(8) information requisition requisition books or documents documents
157: New section 28D
After section 28C
28D: Information required from notified foreign investors
1: In order to become a notified foreign investor in a foreign investment PIE, a non-resident person must provide the PIE with the following information:
a: their full name:
b: their date of birth, if applicable:
c: their home address in the country or territory where they reside for tax purposes:
d: the country code as prescribed by the Commissioner for the country or territory where they reside for tax purposes:
e: the equivalent of their tax file number in the country or territory where they reside for tax purposes, or a declaration if they are unable to provide this number:
f: their tax file number in New Zealand, if applicable.
2: The Commissioner may add to or change the list of information requirements set out in subsection (1) from time to time.
158: Notification requirements for PIEs
In section 31B(1)
a: section HM 71 section HM 71 or HM 71B
b: a PIE a PIE or a foreign investment PIE, as applicable
159: Notification requirements for multi-rate PIEs
1: After section 31C(2)
2B: Subsection (2C)
2C: Despite subsection (2), the PIE may provide the notice referred to in subsection (2) by 30 June after the end of the tax year, as if it were a notice described in subsection (3).
2: In section 31C(5) of that Act. of that Act. However, this subsection does not apply in relation to a foreign investment PIE and a notified foreign investor.
3: After section 31C(6)
7: A foreign investment PIE must ask a person who is a notified foreign investor in the PIE at least once a year to confirm that—
a: their status requirements under section HM 55D(3) of the Income Tax Act 2007 are met; and
b: their information details required under section 28D(1) are unchanged.
8: If the PIE receives no response to its request under subsection (7), they may continue to treat the investor as a notified foreign investor, if that is their existing treatment.
160: Notification of amalgamation to Commissioner
1: After section 75(a)
ab: in the case of an amalgamation of building societies, the notice of the transfer of all engagements is registered under section 34(3) of the Building Societies Act 1965 or the Taxation (Tax Administration and Remedial Matters) Act 2011 .
2: In section 75(e) has effect has effect (being the date provided by paragraph (ab)
161: Effect of giving notice of entitlement
1: In section 80KF(1) section 80KN section 80KI
2: Subsection (1) applies for the 2008–09 and later income years.
162: Officers to maintain secrecy
1: Section 81(1)
1: An Inland Revenue officer must maintain, and must assist in maintaining, the secrecy of all matters relating to the legislation described in subsection (1C), and the officer must not communicate any such matter, except for the purpose of carrying into effect that legislation or under subsection (1B)
1B: Despite subsection (1)
a: the communication is for the purpose of executing or performing a duty of the Commissioner, or for the purpose of supporting the execution or performance of such a duty; and
b: the Commissioner considers that such communication is reasonable with regard to the relevant purpose described in paragraph (a)
i: the Commissioner's obligation at all times to use best endeavours to protect the integrity of the tax system; and
ii: the importance of promoting compliance by taxpayers, especially voluntary compliance; and
iii: any personal or commercial impact of the communication; and
iv: the resources available to the Commissioner; and
v: the public availability of the information.
1C: For the purposes of subsection (1)
a: the Inland Revenue Acts, or another Act that is or was administered by or in Inland Revenue:
b: the Accident Compensation Act 2001, the Injury Prevention, Rehabilitation, and Compensation Act 2001, the Accident Insurance Act 1998, the Accident Rehabilitation and Compensation Insurance Act 1992, or the Accident Compensation Act 1982:
c: the New Zealand Superannuation Act 1974:
d: any Act that imposes taxes or duties payable to the Crown.
1D: For the purposes of subsection (1)
1E: The declaration may be made before—
a: the Commissioner; or
b: an officer of Inland Revenue; or
c: a person authorised by or under the Oaths and Declarations Act 1957 to take statutory declarations.
1F: An Inland Revenue officer who has made a declaration of secrecy or fidelity under an earlier taxation secrecy or fidelity section corresponding to this one, or who was treated as making such a declaration, is treated as having made a declaration to maintain secrecy and fidelity under this section.
2: Section 81(2)
3: In section 81(3)
a: subsection (1) subsections (1) and (1B)
b: book or document document
4: In section 81(4)
a: in the words before the paragraphs, subsection (1) or subsection (3) subsection (1), (1B)
b: in paragraphs (b) and (c), book or document document
c: in paragraph (l), book, document, or information document or information
5: After section 81(7)
8: In this section,—
a: Inland Revenue officer
i: means a person who is employed in the service of Inland Revenue; and
ii: includes—
A: a person employed in the service of the Government of an overseas country or territory who is for the time being attached or seconded to Inland Revenue:
B: a person formerly employed in the service of Inland Revenue:
b: duty of the Commissioner
i: administer the tax system:
ii: implement the tax system:
iii: improve, research, or reform the tax system.
163: New section 81BA inserted
After section 81
81BA: Government agency communication
1: Despite section 81, the Commissioner may communicate information held by the Inland Revenue Department to another government agency if it is reasonable and practicable for the Commissioner to retrieve the information, and—
a: the government agency is lawfully able to collect the information, but the provision, collection, and verification of the information to or by the government agency is inefficient; and
b: the government agency and the nature, type, or class of the information are specified in an Order in Council made under subsection (2); and
c: the communication of the information complies with the conditions specified in an Order in Council made under subsection (2)
d: the Commissioner and the government agency have entered into a memorandum that states the purpose of the communication of the information, the use that may be made of the information, and the arrangements for the control, security, subsequent disclosure, and accuracy of the information, including access to it by taxpayers, as well as providing for the monitoring of the arrangements by the Privacy Commissioner or otherwise.
2: The Governor-General may from time to time, by Order in Council made on the recommendation of the Minister of Revenue, specify the following, for the purposes of subsection (1)
a: a government agency to whom the Commissioner may communicate information, and the nature, type, or class of the information that may be communicated to that government agency:
b: the conditions that a government agency specified under paragraph (a) paragraph (a)
3: Before recommending the making of an Order in Council under subsection (2)
a: decide that the communication of the information under the proposed Order in Council will not unduly inhibit the provision of further information to Inland Revenue in the future; and
b: consult—
i: the Privacy Commissioner; and
ii: the government agency that may be affected by the proposed Order in Council; and
iii: any organisation considered by the Minister of Revenue to represent the interests likely to be substantially affected by the proposed Order in Council; and
c: take the results of the consultation under paragraph (b)
4: After the expiry of 5 years, but before the expiry of 6 years, after the commencement of subsection (2), the Commissioner must—
a: review the operation of this section; and
b: assess the impact of this section, in consultation with the Privacy Commissioner; and
c: consider whether any amendments to the law are necessary or desirable and, in particular, whether this section is needed; and
d: report the findings to the Minister of Revenue.
5: The Minister of Revenue must present a copy of a report provided under subsection (4)
6: The communication of information under this section is not subject to the Privacy Act 1993.
164: Other persons to maintain secrecy
In section 86(2) book or document document
165: Further secrecy requirements
In section 87(2) book or document document
166: Notices of proposed adjustment required to be issued by Commissioner
After section 89C(l)
lb: the assessment extinguishes all or part of a taxpayer's tax loss in accordance with section 177C(5); or .
167: Section 89E repealed
1: Section 89E
2: Subsection (1) applies for a dispute or challenge, in relation to which there has been no election into the small claims jurisdiction of a Taxation Review Authority before the day that the Taxation (Tax Administration and Remedial Matters) Act 2011
168: Deemed acceptance
1: After section 89H(3)
4: If the Commissioner fails to issue a challenge notice in accordance with section 89P
2: Subsection (1) applies for a dispute initiated by a taxpayer issuing a notice of proposed adjustment after the enactment of the Taxation (Tax Administration and Remedial Matters) Act 2011
169: Where Commissioner accepts adjustment proposed by disputant
1: In section 89J(2) may issue a notice of assessment or an amended assessment that does not include or take does not have to issue a notice of assessment or an amended assessment that includes or takes
2: Subsection (1) applies for a dispute initiated by a taxpayer issuing a notice of proposed adjustment after the enactment of the Taxation (Tax Administration and Remedial Matters) Act 2011
170: Late actions deemed to occur within response period
1: Section 89K(1)(a)
a: the Commissioner––
i: considers that an exceptional circumstance has prevented a disputant from doing one or more of the actions described in subsection (1B)
ii: considers that the disputant has a demonstrable intention to enter into or continue the disputes process at the time the disputant fails in doing 1 or more of the actions described in subsection (1B) .
2: In section 89K(1)(b)(i)(A) paragraph (a)(i) subsection (1B)(a)
3: In section 89K(1)(b)(ii)(A) paragraph (a)(ii) subsection (1B)(b)
4: After section 89K(1)
1B: For the purposes of subsection (1)(a)
a: rejecting, within the applicable response period, an adjustment contained in a notice of proposed adjustment issued by the Commissioner:
b: issuing, within the applicable response period, a notice of proposed adjustment under section 89D or 89DA in respect of a disputable decision:
c: issuing, within the applicable response period, a statement of position.
5: After section 89K(3)
4: If the Commissioner decides to not issue a notice in favour of the disputant under subsection (1), the Commissioner must issue a notice of that decision (the refusal notice
5: If the Commissioner fails to issue a refusal notice in accordance with subsection (4) subsection (6)
6: The disputant may challenge the Commissioner's refusal notice by filing proceedings, in accordance with the Taxation Review Authorities Regulations 1998, within 2 months of the notice's issue. For the purposes of this subsection, the Taxation Review Authorities Act 1994, and the Taxation Review Authorities Regulations 1998, the refusal notice is treated as a notice of disputable decision and the challenge is treated as a challenge under Part 8A.
171: Application to High Court
1: After section 89L(1)
1B: The Commissioner may apply to the High Court for an order allowing the Commissioner to issue a challenge notice past the 4 years provided in section 89P(1)
a: the Commissioner considers that an exceptional circumstance applies or has prevented the Commissioner from issuing the challenge notice within the 4 years; and
b: the Commissioner applies within the 4 years.
2: After section 89L(2)
2B: The High Court may—
a: make an order for the purposes of subsection (1B)
b: decline to make an order.
3: In section 89L(3) subsection (1) subsection (1) or (1B)
4: Section 89L(3)(b)
5: Subsections (1), (2), and (3) apply for a dispute initiated by a taxpayer issuing a notice of proposed adjustment after the enactment of the Taxation (Tax Administration and Remedial Matters) Act 2011
172: Disclosure notices
After section 89M(6)
6BA: The Commissioner must issue a statement of position, described in subsection (4), in response to the disputant's statement of position, if the Commissioner is not required to issue a statement of position when issuing a disclosure notice.
173: Completing the disputes process
1: Section 89N(1)(c)(vii)
2: Subsection (1) applies for a dispute or challenge, in relation to which there has been no election into the small claims jurisdiction of a Taxation Review Authority before the day that the Taxation (Tax Administration and Remedial Matters) Act 2011
174: New section 89P
1: After section 89O
89P: Challenge notice for taxpayer-initiated disputes
1: The Commissioner must issue a challenge notice to a disputant within 4 years of the disputant issuing a notice of proposed adjustment, unless––
a: section 89L(2B)(a)
b: section 89J(2)
2: Despite subsection (1)
3: A challenge notice may not be issued before the Commissioner issues a statement of position, unless 1 or more of section 89N(1)(c)(i) to (ix) apply.
4: A challenge notice must state that––
a: the Commissioner will not be issuing an amended assessment that includes or takes into account the adjustment proposed by the disputant; and
b: a challenge may proceed.
2: Subsection (1) applies for a dispute initiated by a taxpayer issuing a notice of proposed adjustment after the enactment of the Taxation (Tax Administration and Remedial Matters) Act 2011
175: Time bar for amendment of income tax assessment
After section 108(2)
2B: A period equal to the number of days in the period described in this subsection is added to the 4 years under subsection 108(1), if a taxpayer successfully challenges a Commissioner's refusal under section 89K(4)
a: starts on the day of the refusal:
b: finishes on the day on which that challenge is finally judged successful by the relevant Taxation Review Authority or court, or the day on which the Commissioner concedes.
176: Time bar for amending GST assessment
After section 108A(3)
3B: A period equal to the number of days in the period described in this subsection is added to the 4 years under subsection (1), if a taxpayer successfully challenges a Commissioner's refusal under section 89K(4)
a: starts on the day of the refusal:
b: finishes on the day on which that challenge is finally judged successful by the relevant Taxation Review Authority or court, or the day on which the Commissioner concedes.
177: When disputant entitled to challenge assessment
1: Section 138B(3)
3: Subject to subsection (4)
a: the assessment was the subject of an adjustment proposed by the disputant which the Commissioner has rejected by written notice within the applicable response period; and
b: the Commissioner has issued a challenge notice to the disputant; and
c: the disputant files the proceedings, in accordance with the Taxation Review Authorities Regulations 1998 (or any regulations made in substitution for those regulations) or the High Court Rules within 2 months.
4: Despite subsection (3)
a: the assessment was the subject of an adjustment (the adjustment paragraph (c)
b: the Commissioner has issued a challenge notice to the disputant; and
c: the adjustment––
i: is in relation to a matter for which the material facts and relevant law are identical to those for another assessment for the taxpayer, for another period, that is at the time of proposing the adjustment the subject of court proceedings; or
ii: corrects a tax position taken by the taxpayer or an associated person as a consequence or result of an incorrect tax position taken by another taxpayer and, at the time of proposing the adjustment, the incorrect tax position taken by the other taxpayer is the subject of, or was the subject of, court proceedings; and
d: the disputant files the proceedings, in accordance with the Taxation Review Authorities Regulations 1998 (or any regulations made in substitution for those regulations) or the High Court Rules within 2 months.
2: Subsection (1) applies for a dispute initiated by a taxpayer issuing a notice of proposed adjustment after the enactment of the Taxation (Tax Administration and Remedial Matters) Act 2011
178: Certain rights of challenge not conferred
In section 138E(1)(e)(iv) 89M 89L, 89M, 89N(1)(c)(viii) and (3)
179: Effect of disclosure notice: exclusion of evidence
1: In the heading to section 138G : exclusion of evidence
2: Section 138G(1)
1: Unless subsection (2)
3: In section 138G(2)
a: in the words before the paragraphs, new facts and evidence, and
b: in paragraph (a), discovered those facts or evidence; or
c: in paragraph (b), the admission of those facts or evidence or
4: Subsections (1) to (3) apply for a dispute or challenge, in relation to which a disclosure notice is issued on or after the day that the Taxation (Tax Administration and Remedial Matters) Act 2011
180: Proceedings may be transferred to different hearing authorities
1: Section 138N(2)
2: If a disputant commences a challenge in a Taxation Review Authority, the Commissioner may apply to the High Court to have the challenge transferred to the High Court.
2: Subsection (1) Taxation (Tax Administration and Remedial Matters) Act 2011
181: Section 138O repealed
1: Section 138O is repealed.
2: Subsection (1) Taxation (Tax Administration and Remedial Matters) Act 2011
182: Absolute liability offences
1: In section 143(1)(a) books and documents documents
2: In section 143(1B) books and documents documents
183: Knowledge offences
In section 143A(1)(a) books and documents documents
184: Evasion or similar offence
In section 143B(1)(a) books and documents documents
185: Evidence in proceedings for failure to furnish returns or information
In section 150D
a: books or documents documents
b: books, or documents documents
186: Deduction of tax from payments due to defaulters
In section 157(10) amount payable uplift the money;— uplift the money:
cb: where the person is a tax pooling intermediary, money that is paid to the Commissioner, on the date the Commissioner receives the payment;–– .
187: Procedure in District Court where defendant absent from New Zealand
In section 159 summons notice of claim
188: New section 183CB
After section 183CA
183CB: Cancellation of interest charged on payments under PAYE rules or provisional tax rules arising from work in Canterbury earthquake recovery programme
1: This section applies for a person (the earner
a: the earner is a non-resident, or is treated as a non-resident under a relevant double tax agreement, on 4 September 2010 and—
i: is a natural person who arrives in New Zealand after that date; or
ii: is not a natural person and, under the double tax agreement, has no permanent establishment in New Zealand on 4 September 2010 but after that date has a permanent establishment in New Zealand or is a resident and not treated as a non-resident; and
b: the income relates to a period beginning after 4 September 2010 and ending before 4 September 2011.
2: If a person is required under the PAYE rules to withhold an amount of tax from a PAYE income payment to the earner for the work and does not pay the amount to the Commissioner by the time required by the PAYE rules, the Commissioner must, on receiving an application by the person, cancel the person's liability to pay interest under Part 7 for the period—
a: beginning on the day of the PAYE income payment; and
b: ending on the earlier of—
i: 4 September 2011:
ii: the first day on or after the day of the PAYE income payment on which it is clear that the person has a withholding liability in New Zealand.
3: If the earner is a provisional taxpayer with residual income tax that is treated for the purposes of Part 7 as due and payable in more than 1 instalment, the Commissioner must, on receiving an application by the earner, cancel the earner's liability to pay interest under Part 7 on each instalment for the period—
a: beginning on the due date of the instalment; and
b: ending on the earlier of—
i: 4 September 2011:
ii: the first day on or after the due date of the instalment on which it is clear that the earner has an income tax liability.
189: New section 184AA
1: After section 184
184AA: Refund of tax: deductible amounts of interest
1: This section applies when a person is allowed a deduction under section DB 3B of the Income Tax Act 2007, section DB 3B of the Income Tax Act 2004, or section DB 2 of the Income Tax Act 1994.
2: The time limits for refunds under the provisions referred to in subsection (3) do not apply for the purposes of the amendments made by sections 194 and 221 of the Taxation (Tax Administration and Remedial Matters) Act 2011 relating to the deductibility of interest imposed under Part 7.
3: The provisions are, as applicable,—
a: sections RM 2 to RM 6 of the Income Tax Act 2007:
b: sections MD 1 and MD 2 of the Income Tax Act 2004:
c: sections MD 1 and MD 2 of the Income Tax Act 1994.
2: Subsection (1) applies for the 1997–98 and later income years but only in relation to an amount of interest imposed under Part 7
a: in a return of income that they have furnished on or before 24 November 2010:
b: in a notice of proposed adjustment that is issued on or before 24 November 2010.
190: New section 226C added
After section 226B
226C: Secure credit or debit card payments and fees
1: The Commissioner may offer to taxpayers the service of paying an amount to the Commissioner by secure internet credit or debit card transfer or secure telephone credit or debit card transfer.
2: The Commissioner may charge the taxpayer, at the time that the taxpayer uses the service, a fee for the service. The fee, if it is charged, must be paid on top of the amount, and as part of the same payment (using the same service).
3: The fee for the service is 1.42% of the amount.
4: Despite subsection (3)
3: Remedial matters and abolition of gift duty
Amendments to Income Tax Act 2004
191: Income Tax Act 2004
Sections 192 to 208 Income Tax Act 2004 2011-08-29 Income Tax Act 2004
192: New section CW 1B
After section CW 1
CW 1B: Treaty of Waitangi claim settlements: rights to take timber
When this section applies
1: This section applies when a person's right to take timber (the old right new rights
a: the sole reason for the new rights replacing the old right is to facilitate a Treaty of Waitangi claim settlement process; and
b: the rights and obligations of the new rights are equivalent to the old right, ignoring differences that are solely for the reason in paragraph (a). Exempt income
2: An amount under section CB 22(1)(b) (Disposal of timber or right to take timber) for the extinguishing of the old right, or for the granting of the new rights, is exempt income of the relevant person. The amount is not income under that section. Exception
3: Subsection (2) Relationship with section DP 8B
4: Section DP 8B (Treaty of Waitangi claim settlements: rights to take timber) deals with the cost of the new rights for the person who is granted them. amount, exempt income, income, pay, person, right to take timber .
193: Taxes, other than GST, and penalties
The cross-heading before section DB 1 Taxes and other amounts
194: New section DB 3B
1: After section DB 3
DB 3B: Use of money interest
Deduction
1: A person is allowed a deduction for an amount of interest they are liable to pay under Part 7 of the Tax Administration Act 1994. Timing of deduction
2: The deduction is allocated under section EF 5 (Use of money interest payable by person). Link with subpart DA
3: This section supplements the general permission and overrides the capital limitation, the private limitation, and the employment limitation. The other general limitations still apply. amount, capital limitation, deduction, employment limitation, general limitation, general permission, private limitation .
2: Subsection (1) applies for the 2005–06 and later income years but only in relation to an amount of interest imposed under Part 7
a: in a return of income that they have furnished on or before 24 November 2010:
b: in a notice of proposed adjustment that is issued on or before 24 November 2010.
195: New section DP 8B
After section DP 8
DP 8B: Treaty of Waitangi claim settlements: rights to take timber
When this section applies
1: This section applies when a person's right to take timber (the old right new rights Cost of acquiring new rights
2: The person who is granted the new rights is treated, for each new right, as having acquired the new right for a cost equal to the expenditure they incurred in relation to the old right, but only to the extent that the expenditure relates to the land covered by the new right and has not been deducted previously. exempt income, land, person, right to take timber .
196: Cost of timber
1: After section DP 10(4)
4B: Subsection (2) does not apply if the amount of income of the person under section CB 22 would be exempt income under section CW 1B section CW 1B(3)
2: In section DP 10 exempt income
197: Disposal of petroleum mining asset to associate
1: In section DT 9(1)(b) section EJ 11 (Petroleum development expenditure) section EJ 14 (Disposal of petroleum mining asset to associate)
2: Section DT 9(2)
2: The miner is denied a deduction for the amount that section EJ 15(2) (Partnership interests and disposal of part of asset) prevents from being allocated to the income year in which the miner disposes of the asset.
3: Subsections (1) and (2) apply for the 2005–06 and later income years.
198: Valuation under herd scheme
1: In section EC 16(3) section DB 40(5) section DB 40(3)
2: Subsection (1) applies for the 2005–06 and later income years.
199: What is included when spreading methods used
1: In section EW 15(1)(a)(ii) or the equity-free fair value method in section EW 15E EW 15C
2: In section EW 15(1)(b)(ii) or the equity-free fair value method in section EW 15E EW 15C
3: Subsections (1) and (2) apply for—
a: the 2007–08 and later income years, if paragraphs (b) and (c) do not apply; or
b: the first income year for which a person adopts IFRSs for the purposes of financial reporting and later income years, if that first income year is before the 2007–08 income year and the person chooses to apply the IFRS taxpayer method in a return of income for that first year; or
c: the 2008–09 and later income years, if a person's 2008–09 income starts before 1 January 2008 and the person has not adopted IFRSs for the purposes of financial reporting before 1 January 2007.
200: IFRS method
1: Section EW 15C(2B)(b)
b: the person uses for the other financial arrangement a method that is neither of the following:
i: the IFRS method:
ii: the method required under Determination G29: Agreements for sale and purchase of property denominated in foreign currency: exchange rate to determine the acquisition price and method for spreading income and expenditure
2: Subsection (1)—
a: applies for the 2007–08 and later income years, unless paragraph (b) or (c) applies; or
b: applies for the first income year for which a person adopts IFRSs for the purposes of financial reporting and later income years, if that first income year is before the 2007–08 income year and the person chooses to apply the IFRS taxpayer method in a return of income for that first year; or
c: does not apply if a person's 2008–09 income year starts before 1 January 2008 and the person has not adopted IFRSs for the purposes of financial reporting before 1 January 2007.
201: Base price adjustment formula
1: In section EW 31(4) under section DB 9 (Negative base price adjustment) under sections DB 6 to DB 8 (which relate to deductions for interest) or, if none of those sections applies, under section DB 9 (Negative base price adjustment)
2: Subsection (1) applies for the 2005–06 and later income years.
202: Consideration when change from fair value method under IFRS method
1: In section EW 48B(1)(b) at the date of the change at the end of the first income year for which the replacement method is used for the financial arrangement
2: In section EW 48B(2) on the date of the change at the end of the first income year for which the replacement method is used for the financial arrangement
203: Further eligibility requirements relating to investments
After section HL 10(2)(b)(vii)
viii: an amount of income under section CW 4 (Annuities under life insurance policies) or CX 34 (Superannuation fund deriving amount from life insurance policy).
204: Portfolio entity tax liability and rebates of portfolio tax rate entity for period
1: After section HL 20(12) Determining investors' prescribed investor rate
13: For the purposes of determining the item rate
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 (Portfolio investor allocated income and distributions of income by portfolio investment entities) does not apply.
2: In section HL 20 prescribed investor rate taxable income
205: Credits arising to Maori authority credit account
1: After section MK 4(1)(e)
eb: the amount of an imputation credit attributed to it during the imputation year under section HL 27(7)(b): .
2: After section MK 4(2)(c)
cb: in the case of a credit referred to in subsection (1)(eb), on the day the amount is attributed: .
206: Modifications to measurement of voting and market value interests in case of continuity provisions
1: Section OD 5(8)(b)
b: the failure, but for that concessionary application, to meet the requirements would have occurred in the absence of transactions of the following types:
i: the sale of shares in a company in the ordinary course of trading on a recognised exchange between persons, each of which is not a company associated with the company and has a direct voting interest or direct market value interest of less than 10%, calculated before the application of sections OD 3(3)(d) and OD 4(3)(d):
ii: the redemption or other cancellation of shares in a company which is a unit trust that falls within any of paragraphs (a), (b), and (c) of the definition of the term widely-held trust
iii: the redemption or other cancellation of shares in a company which is a unit trust that falls within any of paragraphs (a), (b), and (c) of the definition of the term widely-held trust
iv: the transfer of shares in a company other than in the ordinary course of trading on a recognised exchange between persons, each of which is not a company associated with the company and has a direct voting interest or direct market value interest of less than 5%, calculated before the application of sections OD 3(3)(d) and OD 4(3)(d):
v: the issue, redemption, or cancellation by a company, or the transfer to or from the company, or the transfer to an employee of the company from a trustee of a trust with no beneficiary other than the company and the company's employees, of shares in the company, or options over shares in the company, that in total for the company's income year would be a direct voting interest or direct market value interest of less than 5% if held by a single person; and .
2: Subsection (1) applies for the 2005–06 and later income years.
207: New section YA 5C
1: After section YA 5B
YA 5C: Saving effect of section DF 5 of Income Tax Act 1994
When this section applies
1: This section applies when a person—
a: has made a payment to which section DC 1 (Lump sum payments on retirement) would otherwise apply in the absence of this section; and
b: has allocated the deduction for the payment to an income year relying on the wording used in section DF 5 (Retiring allowances payable to employees) of the Income Tax Act 1994; and
c: has taken the tax position for the allocation before 22 February 2011. Savings provision
2: Despite the express wording used in section DC 1, section DF 5 continues to apply for the person in relation to the tax position in the same manner as it applied immediately before the repeal of the Income Tax Act 1994 by the Income Tax Act 2004. deduction, income year, pay .
2: Subsection (1) applies for the 2005–06 and later income years.
208: Schedule 22A—Identified policy changes
1: In schedule 22A DB 7(6) DC 1 A deduction related to lump sum payments on retirement is allocated to the income year in which payment is made.
2: Subsection (1) applies for the 2005–06 and later income years. Amendment to New Zealand Superannuation and Retirement Income Act 2001
209: Section 76 of New Zealand Superannuation and Retirement Income Act 2001 repealed
1: Section 76
2: The repeal of section 76
3: Subsection (1) applies for the 2011–12 and later income years. 2011-08-29 New Zealand Superannuation and Retirement Income Act 2001 Amendments to KiwiSaver Act 2006
210: Section 4 of KiwiSaver Act 2006 amended
In section 4 salary or wages
a: in paragraph (a)(i), and (6)(c) (6)(c), and (8)
b: paragraph (a)(ib) is repealed. 2011-08-29 KiwiSaver Act 2006
211: New section 81B of KiwiSaver Act 2006 inserted
After section 81
81B: Residual refunds
If the Commissioner can not process an amount held in the holding account in accordance with this Act, or the amount is in excess of what this Act or a Revenue Act requires to be in the holding account, then the Commissioner may refund the amount to the person that the Commissioner considers has the best claim to it. Amendments to Taxation Review Authorities Act 1994
212: Taxation Review Authorities Act 1994
Sections 213 to 217 Taxation Review Authorities Act 1994 2011-08-29 Taxation Review Authorities Act 1994 Sections 213 to 217
213: General jurisdiction of Authorities
1: Section 13A(b)(ii)
2: Subsection (1) Taxation (Tax Administration and Remedial Matters) Act 2011
214: Section 13B repealed
1: Section 13B
2: Subsection (1) Taxation (Tax Administration and Remedial Matters) Act 2011
215: An Authority to be a commission of inquiry
In section 15(2) book or document document
216: Evidence in proceedings before an Authority
1: Section 17(2A)
2A: Unless subsection (2B) applies, if the Commissioner issues a disclosure notice to a disputant, and the disputant challenges the disputable decision, the Commissioner and the disputant may raise in the challenge only the issues and the propositions of law that are disclosed in the Commissioner's and disputant's statements of position.
2: In section 17(2B)
a: in the words before the paragraphs, new facts and evidence, and
b: in paragraph (a), discover those facts or evidence; or
c: in paragraph (b), facts or evidence or
3: Subsections (1) and (2) apply for a dispute or challenge, in relation to which a disclosure notice is issued on or after the day that the Taxation (Tax Administration and Remedial Matters) Act 2011
217: Challenges appealed to High Court
1: Section 26A(2)
2: The determination by an Authority of a challenge may not be appealed to the High Court if the determination was made by the Authority under a tax law that provides for the Authority's determination to be final.
2: Subsection (1) applies for a dispute or challenge, in relation to which there has been no election into the small claims jurisdiction of a Taxation Review Authority before the day that the Taxation (Tax Administration and Remedial Matters) Act 2011 Amendments to Income Tax Act 1994
218: Income Tax Act 1994
Sections 219 to 222 Income Tax Act 1994 2011-08-29 Income Tax Act 1994 Sections 219 to 222
219: New section CB 17
Before the heading to subpart CC
CB 17: Treaty of Waitangi claim settlements: rights to take timber
When this section applies
1: This section applies when a person's right to take timber (the old right new rights
a: the sole reason for the new rights replacing the old right is to facilitate a Treaty of Waitangi claim settlement process; and
b: the rights and obligations of the new rights are equivalent to the old right, ignoring differences that are solely for the reason in paragraph (a). Exempt income
2: An amount under section CJ 1(1)(b) for the extinguishing of the old right, or for the granting of the new rights, is exempt income of the relevant person. The amount is not gross income under that section. Exception
3: Subsection (2) Relationship with section DL 1
4: Section DL 1(16) and (17) deal with the cost of the new rights for the person who is granted them.
220: Certain deductions not allowed
The subpart heading before section DB 1 Subpart B—Taxes, levies, and other amounts
221: New section DB 2
1: After section DB 1
DB 2: Deduction for use of money interest
1: Despite section DB 1, a person is allowed a deduction for an amount of interest they are liable to pay under Part 7 of the Tax Administration Act 1994.
2: The deduction is allocated under section ED 6(1) and (3) or ED 7, as applicable.
2: Subsection (1) Part 7
a: in a return of income that they have furnished on or before 24 November 2010:
b: in a notice of proposed adjustment that is issued on or before 24 November 2010.
222: Cost of timber
After section DL 1(15), the following is added:
16: Subsection (17) old right new rights
17: The person who is granted the new rights is treated, for each new right, as having acquired the new right for a cost equal to the expenditure they incurred in relation to the old right, but only to the extent that the expenditure relates to the land covered by the new right and has not been deducted previously.
18: Subsections (2) to (15), and section DJ 13A, do not apply to allow a deduction to the extent to which the amount that would be a deduction, but for this subsection, was incurred in deriving an amount that––
a: is exempt income under section CB 17
b: would be exempt income under section CB 17 section CB 17(3) Amendments to Taxation Review Authorities Regulations 1998
223: Taxation Review Authorities Regulations 1998
Sections 224 to 233 Taxation Review Authorities Regulations 1998 2011-08-29 Taxation Review Authorities Regulations 1998 Sections 224 to 233
224: Interpretation
1: In regulation 2 notice of claim or small claims jurisdiction
2: Subsection (1) Taxation (Tax Administration and Remedial Matters) Act 2011
225: Application of District Court Rules 1992
1: In the heading to regulation 4 1992 2009
2: In regulation 4 1992 2009
226: Proceedings generally
1: In regulation 5 both the general jurisdiction and the small claims jurisdiction the general jurisdiction
2: Subsection (1) applies for a dispute or challenge, in relation to which there has been no election into the small claims jurisdiction of a Taxation Review Authority before the day that the Taxation (Tax Administration and Remedial Matters) Act 2011
227: Form
1: In regulation 7 either the general jurisdiction or the small claims jurisdiction the general jurisdiction
2: Subsection (1) Taxation (Tax Administration and Remedial Matters) Act 2011
228: Notice of defence
1: Regulation 11(2)
2: The notice of defence must be filed and served by the Commissioner within 25 working days of the service of the notice of claim.
2: Subsection (1) applies for a dispute or challenge, in relation to which there has been no election into the small claims jurisdiction of a Taxation Review Authority before the day that the Taxation (Tax Administration and Remedial Matters) Act 2011
229: Interlocutory applications
1: Regulation 12(2)
2: Subsection (1) applies for a dispute or challenge, in relation to which there has been no election into the small claims jurisdiction of a Taxation Review Authority before the day that the Taxation (Tax Administration and Remedial Matters) Act 2011
230: Part 3 revoked
1: Part 3
2: Subsection (1) applies for a dispute or challenge, in relation to which there has been no election into the small claims jurisdiction of a Taxation Review Authority before the day that the Taxation (Tax Administration and Remedial Matters) Act 2011
231: Requirement for directions hearings
1: Regulation 27(2)
2: Subsection (1) applies for a dispute or challenge, in relation to which there has been no election into the small claims jurisdiction of a Taxation Review Authority before the day that the Taxation (Tax Administration and Remedial Matters) Act 2011
232: Time for directions hearing
1: Regulation 28(b)
2: Subsection (1) applies for a dispute or challenge, in relation to which there has been no election into the small claims jurisdiction of a Taxation Review Authority before the day that the Taxation (Tax Administration and Remedial Matters) Act 2011
233: Schedule
1: In the schedule Jurisdiction specify general or small claims
2: In the schedule facts, evidence, issues, issues
3: Subsection (1) applies for a dispute or challenge, in relation to which there has been no election into the small claims jurisdiction of a Taxation Review Authority before the day that the Taxation (Tax Administration and Remedial Matters) Act 2011
4: Subsection (2) applies for a dispute or challenge, in relation to which a disclosure notice is issued on or after the day that the Taxation (Tax Administration and Remedial Matters) Act 2011 Amendments to Goods and Services Tax Act 1985
234: Goods and Services Tax Act 1985
Sections 235 to 244 Goods and Services Tax Act 1985 2011-08-29 Goods and Services Tax Act 1985 Sections 235 to 244
235: Interpretation
1: In section 2(1)
a: the definition of document document :
b: in the definition of land 21E, 21G(5), 21H(3),
c: in the definition of principal place of residence and in sections 5(15), 11(1)(mb), and 78F,
2: Subsection (1)(b) applies to supplies made on or after 1 April 2011. However, subsection (1)(b) does not apply if a person has taken a tax position—
a: for an adjustment period that ends before the date of the Royal assent of this Act:
b: in relation to the use of land to which section 21E
c: relying on the definition of land
3: Subsection (1)(c) applies to supplies made on or after 1 April 2011. However, subsection (1)(c) does not apply if a person takes a tax position—
a: in relation to a supply––
i: made on or before the date of the Royal assent of this Act; and
ii: to which sections 11(1)(mb) 78F
b: relying on the definition of principal place of residence section 2(1) subsection (1)(c)
236: Meaning of term supply
1: Section 5(15)
15: When either of the following supplies are included in a supply, they are deemed to be a separate supply from the supply of any other real property that is included in the supply:
a: a supply of a principal place of residence:
b: a supply referred to in section 14(1)(d).
2: Subsection (1) applies to supplies made on or after 1 April 2011.
237: Value of supply of goods and services
1: Section 10(2)(b)
b: to the extent that the consideration for the supply is not consideration in money,—
i: the open market value of that consideration, if subparagraph (ii) does not apply; or
ii: the value of the consideration agreed by the supplier and the recipient, if subsection (2B) applies.
2: After section 10(2)
2B: The value of consideration for a supply of goods and services is determined under subsection (2)(b)(ii) if—
a: the supply is of a right to receive a specified number of emissions units at a future date; and
b: the supplier and recipient are not associated persons; and
c: each of the supplier and recipient, in the transaction of which the supply is a part,—
i: makes a taxable supply; and
ii: acquires a taxable supply for use in making taxable supplies.
238: Zero-rating of goods
1: In section 11(8C) after that date on or after that date
2: Subsection (1) applies to supplies made on or after 1 April 2011.
239: Adjustments when person becomes registered after acquiring goods and services
1: In section 21B person person or partnership
2: In section 21B(1)(b) the person the person or, if the person is a member of a partnership, the partnership
3: In section 21B(2) and (3) the person the person or partnership, as applicable,
4: Subsections (1) to (3) apply to supplies made on or after 1 April 2011.
240: Treatment on disposal
1: In section 21F(3)
a: For the purposes of the formula For the purposes of the formula in subsection (2)
b: in paragraph (a), section 2(1) section 2(1), unless subsection (7)
2: After section 21F(3)
4: Despite subsection (2), if the acquisition referred to in subsection (1)(a) relates to a supply that is charged at the rate of 0% under section 11(1)(mb), on a disposal referred to in subsection (1)(b), the person must make a final adjustment of an amount calculated using the formula— tax fraction × consideration × (1 – previous use).
5: For the purposes of the formula in subsection (4),—
a: tax fraction
b: consideration
c: previous use
6: The amount given by the formula in subsection (4)
7: In the formulas in subsections (2) and (4) tax fraction
3: Subsections (1) and (2) apply to supplies made on or after 1 April 2011.
241: New section 21HB
1: After section 21H
21HB: Transitional rule related to treatment of dwellings
1: This section applies when goods or services acquired or produced before 1 April 2011 were not acquired or produced for the principal purpose of making taxable supplies but, because of the changes made by section 4(3) and (4) of the Taxation (GST and Remedial Matters) Act 2010 to the definitions of commercial dwelling dwelling
2: Input tax in relation to the acquisition referred to in subsection (3)
3: The person must treat the goods or services as acquired on 1 April 2011 at the original cost of the supply.
2: Subsection (1) applies to supplies made on or after 1 April 2011.
242: Group of companies
In section 55(1)(a)(iii) multi-rate PIE; and multi-rate PIE:
iv: would be a group of companies or part of a group of companies but for 1 or more of the companies being a listed PIE; and .
243: Keeping of records
1: In section 75(3B)(c) land the land
2: After section 75(3B)
3C: Subsections (3D) and (3E)
3D: The requirements of subsection (3B)(a) and (b) are met if the supplier maintains sufficient records to enable the particulars of the name, address, and registration number of the agent to be ascertained.
3E: The agent must maintain sufficient records in relation to the undisclosed principal to enable the name, address, and registration number of the principal to be ascertained.
3: Subsections (1) and (2) apply to supplies made on or after 1 April 2011.
244: Liability in relation to supplies of land
1: After section 78F(2)
2B: For the purposes of subsection (2)(a), a recipient who is a registered person, or who expects to be a registered person, must provide their registration number to the supplier at or before the date of settlement.
2: After section 78F(5)
6: When a supply is made to a person who is, for the purposes of the supply, an agent acting on behalf of an undisclosed principal, the requirements of subsection (2) are met if the agent provides a statement in writing to the supplier as to whether, at the date of settlement, the principal as recipient—
a: is, or expects to be, a registered person; and
b: is acquiring the goods or services with the intention of using them for making taxable supplies; and
c: does not intend to use the land as a principal place of residence for them or a person associated with them under section 2A(1)(c).
7: When a supply is made to a person who is, for the purposes of the supply, an agent acting on behalf of an undisclosed principal, the agent must provide their registration number to the supplier at or before the date of settlement.
3: Subsection (2) applies to supplies made on or after 1 April 2011. Abolition of gift duty
245: Estate and Gift Duties Act 1968
1: No gift duty is payable under the Estate and Gift Duties Act 1968
2: In section 2(2) gift disposition of property disposition of property before 1 October 2011
3: In section 61 made after the commencement of this Act made after the commencement of this Act and before 1 October 2011 2011-10-01 Estate and Gift Duties Act 1968