New Zealand Legislation: Acts
Acts are laws made by Parliament
(1) The Commissioner shall not direct any registered person to account for tax payable on a payments basis under section 19 unless—
(a) the registered person is—
(i) [Repealed]
(ii) a local authority specified in an Order in Council made under section 19AB; or
(iii) a non-profit body; or
(b) in respect of the registered person—
(i) at the end of any month, the total value of the person's taxable supplies in the period of 12 months then ending has not exceeded $2,000,000 (or such greater amount as the Governor-General may, from time to time, by Order in Council declare); or
(ii) in the period of 12 months beginning on the first day of any month, the total value of the person's taxable supplies is not likely to exceed the amount specified in or under subparagraph (i); or
(c) the Commissioner is satisfied that, due to the nature, volume, and value of taxable supplies made by the registered person and the nature of the accounting system employed by the person, it would be appropriate for the person to furnish returns under this Act on a payments basis.
(2) Where the Commissioner is satisfied (whether by a notification given by the registered person under section 53(1)(cb) or otherwise) that a registered person who has been directed to account for tax payable on a payments basis has ceased to satisfy the conditions set out in paragraphs (a) to (c) of subsection (1), the Commissioner shall either—
(a) direct that the registered person account for tax payable on an invoice basis; or
(b) if the registered person so requests in writing, direct that the registered person account for tax payable on a hybrid basis.
(3) For the purposes of subsection (2), a registered person shall not be treated as having ceased to satisfy the conditions of subsection (1) by reason only that the total value of the registered person's taxable supplies has exceeded, or as the case may be will exceed, the amount specified by or under subsection (1)(b) solely as a consequence of—
(a) any ending of, including a premature ending of, or any substantial and permanent reduction in the size or scale of, any taxable activity carried on by that person; or
(b) the replacement of any plant or other capital asset used in any taxable activity carried on by that person.
Section 19A: inserted, on 1 April 1991 (applying to allow changes in a registered person's accounting basis in respect of taxable periods commencing on and after 1 April 1991), by section 3(1) of the Goods and Services Tax Amendment Act 1991 (1991 No 11).
Section 19A(1)(a)(i): repealed, on 10 April 1995, by section 7 of the Goods and Services Tax Amendment Act 1995 (1995 No 22).
Section 19A(1)(a)(ii): substituted, on 10 October 2000 (applying on and after 1 July 2001), by section 96(1) of the Taxation (GST and Miscellaneous Provisions) Act 2000 (2000 No 39).
Section 19A(1)(b)(i): amended, on 30 March 2009, by section 26 of the Taxation (Business Tax Measures) Act 2009 (2009 No 5).
Section 19A(2): amended, on 23 September 1997, by section 111 of the Taxation (Remedial Provisions) Act 1997 (1997 No 74).
Section 19A(3)(a): amended, on 10 October 2000 (applying on and after 10 October 2000), by section 96(3) of the Taxation (GST and Miscellaneous Provisions) Act 2000 (2000 No 39).
