22A Records required under subpart EW of Income Tax Act 2007

(1)

A taxpayer who applies section EW 18 of the Income Tax Act 2007 and who does not use a market approved by the Commissioner under section 90AC(1)(c) must keep, in English or te reo Maori, records sufficient to enable the Commissioner to verify that the market value adopted is reliable.

(2)

A taxpayer who applies section EW 26(2) of the Income Tax Act 2007 must keep, in English or te reo Maori, records sufficient to enable the Commissioner to verify that their reason for changing spreading methods was a sound commercial one.

(3)

A taxpayer required to retain records must—

(a)

take all reasonable precautions for the safe custody of those records; and

(b)

retain those records for 7 years after the end of the year that the records relate to, unless:

(i)

the Commissioner has given notice that retention is not required; or

(ii)

the records are required by law to be given to another person; or

(iii)

the taxpayer is a company that has been liquidated or wound up; and

(c)

retain the records required for a further period as specified by the Commissioner under subsection (4).

(4)

The Commissioner may, by giving notice before the end of the 7-year retention period specified in subsection (3), require a taxpayer to retain records specified by the Commissioner for a further period of not more than 3 years following the expiry of the 7-year period if—

(a)

the taxpayer is or has been under audit or investigation by the Commissioner; or

(b)

the Commissioner intends to conduct an audit or investigation before the expiry of the retention period as extended, or is actively considering an audit or investigation.

Section 22A: inserted, on 20 May 1999 (applying on and after 20 May 1999), by section 63(1) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).

Section 22A heading: amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).

Section 22A heading: amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).

Section 22A(1): amended, on 26 June 2019, by section 93(1) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).

Section 22A(1): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).

Section 22A(1): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).

Section 22A(2): amended, on 26 June 2019, by section 93(2) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).

Section 22A(2): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).

Section 22A(2): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).