52 Cancellation of registration

(1)

Subject to this Act, every registered person who carries on any taxable activity shall cease to be liable to be registered where at any time the Commissioner is satisfied that the value of that person’s taxable supplies in the period of 12 months then beginning will be not more than the amount specified for the purposes of section 51(1).

(2)

Every person who, by virtue of subsection (1), ceases to be liable to be registered may request the Commissioner to cancel that person’s registration, and if the Commissioner is at any time satisfied, as mentioned in subsection (1), the Commissioner shall cancel that person’s registration with effect from the last day of the taxable period during which the Commissioner was so satisfied, or from such other date as may be determined by the Commissioner, and shall notify that person of the date on which the cancellation of the registration takes effect.

(3)

Every registered person who ceases to carry on all taxable activities shall inform the Commissioner of that fact within 21 days of the date of cessation and the Commissioner shall cancel the registration of any such person with effect from the last day of the taxable period during which all such taxable activities ceased, or from such other date as may be determined by the Commissioner:

provided that the Commissioner shall not at any time cancel the registration of any such registered person if there are reasonable grounds for believing that the registered person will carry on any taxable activity at any time within 12 months from that date of cessation.

(4)

Any information provided by a registered person to the Commissioner under subsection (3) must include the date on which the person ceased to carry on all taxable activities and whether or not the person intends to carry on any taxable activity within 12 months from that date.

(5)

Where the Commissioner is satisfied that a registered person is not carrying on a taxable activity the Commissioner may cancel that person’s registration with effect from the last day of the taxable period during which the Commissioner was so satisfied, or from such other date as may be determined by the Commissioner, and shall notify that person of the date on which the cancellation of the registration takes effect.

(5A)

Any date determined by the Commissioner for the cancellation of registration under subsection (5) may be retrospective to a date not earlier than—

(a)

the last day of the taxable period during which taxable activity by the person ceased; or

(b)

the date on which the person was registered under this Act, if the Commissioner is satisfied that the person did not, from that date, carry on any taxable activity.

(6)

[Repealed]

(7)

In subsections (5) and (5A), for a non-resident person who is not registered under section 54B, a taxable activity means a taxable activity carried on in New Zealand.

(8)

If a unit title body corporate is a registered person on the date of introduction of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Bill and the registration is later cancelled after an application under subsection (2), the cancellation must take effect on or after the date on which the unit title body corporate applies for cancellation of the registration.

(9)

If a unit title body corporate is registered under this Act with effect from a date (the registration date) after the date of introduction of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Bill and the registration is later cancelled after an application under subsection (2), the cancellation must take effect on or after the later of—

(a)

the date on which the unit title body corporate applies for cancellation of the registration:

(b)

the day that is 4 years after the registration date.

Section 52(1): amended, on 22 June 1987, by section 9 of the Goods and Services Tax Amendment Act 1987 (1987 No 103).

Section 52(2): amended, on 2 June 2016, by section 193(1) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).

Section 52(3): amended, on 2 June 2016, by section 193(2) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).

Section 52(3): amended, on 25 November 2003, by section 163(2) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).

Section 52(3): amended (with effect on 3 December 1985), on 8 August 1986, by section 27(1) of the Goods and Services Tax Amendment Act 1986 (1986 No 43).

Section 52(4): substituted, on 25 November 2003, by section 163(3) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).

Section 52(5): substituted, on 1 August 1990, by section 13 of the Goods and Services Tax Amendment Act 1990 (1990 No 64).

Section 52(5A): inserted, on 1 August 1990, by section 13 of the Goods and Services Tax Amendment Act 1990 (1990 No 64).

Section 52(6): repealed (with effect on 3 December 1985), on 8 August 1986, by section 27(2) of the Goods and Services Tax Amendment Act 1986 (1986 No 43).

Section 52(7): added, on 21 June 2005 (applying to a person who becomes registered under this Act on or after 21 June 2005), by section 160(1) of the Taxation (Base Maintenance and Miscellaneous Provisions) Act 2005 (2005 No 79).

Section 52(7): amended, on 1 April 2014, by section 140 of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).

Section 52(8): inserted (with effect on 26 February 2015), on 24 February 2016, by section 282 of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).

Section 52(9): inserted (with effect on 26 February 2015), on 24 February 2016, by section 282 of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).