Goods and Services Tax Amendment Act 1996

Goods and Services Tax Amendment Act 1996

Public Act1996 No 59
Date of assent26 July 1996

BE IT ENACTED by the Parliament of New Zealand as follows:

1 Short Title, application, and commencement
  • (1) This Act may be cited as the Goods and Services Tax Amendment Act 1996, and shall be read together with and deemed part of the Goods and Services Tax Act 1985 (in this Act referred to as the principal Act).

    (2) Except as provided in subsections (3) and (4), the provisions of this Act shall apply with respect to tax obligations, liabilities, and rights that are to be performed under or arise in relation to supplies made in respect of taxable periods commencing on or after the 1st day of April 1997.

    (3) Except as provided in subsection (4), sections 2(2), 3(1) and (3), 5(1)(a), (b), and (d), 6, 7, 8, and 17 come into force on the 1st day of October 1996.

    (4) Where—

    • (a) A provision of this Act amends, inserts, or repeals a provision (the relevant provision) of the principal Act; and

    • (b) The relevant provision is referred to in, or necessary for the purposes of, another provision (the other provision) of the principal Act; and

    • (c) The other provision—

      • (i) Is amended, inserted, or repealed by this Act; and

      • (ii) Has an application date that is not the same as the general application date for the relevant provision,—

      the relevant provision shall, for all purposes in regard to the other provision, have the same application date as the other provision.

2 Interpretation
  • (1) Section 2(1) of the principal Act is amended by repealing the definition of additional tax.

    (2) This subsection inserted the definition of Challenge in s 2(1) of the principal Act.

    (3) This subsection inserted the definition of the term Late payment in s 2(1) of the principal Act.

    (4) Section 2(1) of the principal Act is further amended by repealing the definition of penal tax.

    (5) This subsection inserted the definition of the term Shortfall penalty in s 2(1) of the principal Act.

    (6) This subsection substituted para (b) of the definition of the term tax payable in s 2(1) of the principal Act.

    (7) This subsection amended the definition of the term tax payable in s 2(1) of the principal.

    (8) Subsection (2) applies on and after the 1st day of October 1996.

3 Goods and services tax incurred relating to determination of liability to tax
  • (1) This subsection amended s 20A(2) of the principal Act (as inserted by section 11(1) of the Goods and Services Tax Amendment Act 1988).

    (2) This subsection inserted s 20A(3)(ca) of the principal Act.

    (3) This subsection amended s 20A(3)(d) of the principal Act.

4 Payment of tax
  • This section amended s 23(3) of the principal Act.

5 Assessment of tax
  • (1) This subsection amended s 27 of the principal Act.

    (2) This subsection amended s 27 of the principal Act.

    (3) This subsection amended s 27 of the principal Act.

    (4) This subsection amended s 27 of the principal Act.

    (5) This subsection amended s 27 of the principal Act.

    (6) This subsection amended s 27 of the principal Act.

    (7) These subsection amended s 27 of the principal Act.

    (8) Section 9(2) of the Goods and Services Tax Amendment Act 1990 is consequentially repealed.

    Subsection (5)(1)(c) was repealed, as from 23 September 1997, by section 113(3) Taxation (Remedial Provisions) Act 1997 (1997 No 167).

6 Assessments deemed correct except in challenge proceedings
  • This section amended s 29 of the principal Act.

7 Application of Parts 4A and 8A of Tax Administration Act 1994
  • (1) This subsection substituted s 31 of the principal Act.

    (2) Section 8 of the Goods and Services Tax Amendment Act (No 2) 1987 is consequentially repealed.

8 Repeal of Part 5—objections
  • (1) This subsection repealed Part 5 of the principal Act.

    (2) Notwithstanding subsection (1), Part 5 of the principal Act continues to apply as if it had not been repealed to every notice of assessment or reassessment—

    • (a) Issued by the Commissioner under the principal Act before the 1st day of October 1996; or

    • (b) That is referred to in section 31(2) of the principal Act (as inserted by section 7 of this Act).

    (3) The Commissioner may, with the written agreement of a registered person, specify that a notice of assessment or reassessment—

    • (a) Issued before the 1st day of October 1996, is to be treated as if it had been issued after that date (in which case the provisions of Parts 4A and 8A of the Tax Administration Act 1994 apply to the notice):

    • (b) Issued on or after the 1st day of April 1996, is to be treated as if it had been issued before that date (in which case the provisions of Part 5 of the principal Act continue to apply to the notice).

    (4) For the purposes of a notice referred to in subsection (2) or subsection (3)(b) of this section, any section of the Tax Administration Act 1994 specified in Part 5 of the principal Act that is repealed by the Tax Administration Amendment Act (No 2) 1996 continues to apply as if it had not been repealed.

    (5) The following enactments are consequentially repealed:

    • (a) Section 22 of the Goods and Services Tax Amendment Act 1986:

    • (b) Section 23 of the Goods and Services Tax Amendment Act 1986:

    • (c) Section 14 of the Goods and Services Tax Amendment Act 1988:

    • (g) Section 8 of the Goods and Services Tax Amendment Act (No 2) 1990:

    • (h) Section 5(3) of the Goods and Services Tax Amendment Act 1991:

    • (i) Section 8(1) of the Goods and Services Tax Amendment Act 1992:

    • (j) Section 8(2) of the Goods and Services Tax Amendment Act 1992:

    • (k) Section 7 of the Goods and Services Tax Amendment Act (No 2) 1992:

    • (l) Section 8 of the Goods and Services Tax Amendment Act (No 2) 1992:

    • (m) Sections 4, 5, and 6 of the Goods and Services Tax Amendment Act (No 2) 1993.

9 Additional tax to be payable if default made in payment of tax
  • (1) Section 41 of the principal Act is repealed.

    (2) Notwithstanding subsection (1), section 41 of the principal Act as it applied immediately before its repeal by this Act continues to apply to a person's obligations in respect of all taxable periods commencing before the 1st day of April 1997 as if—

    • (a) That section 41; and

    • (b) Any provision giving rise to a liability on the part of a person under that section 41; and

    • (c) Any provision that exists interdependently with, or has effect for the purposes of (including for the purposes of providing a right of relief or remission), a provision in that section 41

    had not been repealed or varied by this Act or the Tax Administration Amendment Act (No 2) 1996.

    (3) Section 3 of the Goods and Services Tax Amendment Act (No 2) 1991 is consequentially repealed.

10 Deductions where tax unpaid
  • This section amended s 43(2) of the principal Act.

11 Application of certain provisions of Income Tax Act 1976 relating to recovery procedures
  • Section 44 of the principal Act is repealed.

12 Refund of excess tax
  • This section amended s 45(1) of the principal Act.

13 Commissioner's right to withhold payments
  • (1) This subsection substituted s 46 of the principal Act.

    (2) Notwithstanding subsection (1), section 46 of the principal Act as it applied immediately before its repeal by this Act continues to apply in respect of all taxable periods commencing before the 1st day of April 1997 as if—

    • (a) That section 46; and

    • (b) Any provision giving rise to a liability on the part of the Commissioner or a person under that section 46; and

    • (c) Any provision that exists interdependently with, or has effect for the purposes of (including for the purposes of providing a right of relief or remission) a provision in that section 46,—

    had not been varied or repealed by this Act or the Tax Administration Amendment Act (No 2) 1996.

    (3) The following enactments are consequentially repealed:

    • (a) Section 25(1) of the Goods and Services Tax Amendment Act 1986:

    • (c) Section 5(5) of the Goods and Services Tax Amendment Act 1991.

14 Tax paid in excess may be credited towards tax payable when assessment re-opened
  • This section amended s 47 of the principal Act.

15 Power of Commissioner in respect of small amounts
  • Section 48 of the principal Act is repealed.

16 Relief from additional tax
  • Section 49 of the principal Act is repealed.

17 Appropriation of refunds
  • This section amended s 50 of the principal Act

18 Application of Part 9 of Tax Administration Act 1994
  • This section inserted s 61B of the principal Act.

19 Repeal of Part 10—penalties
  • (1) Part 10 of the principal Act is repealed.

    (2) Notwithstanding subsection (1), Part 10 of the principal Act as it applied immediately before its repeal by this Act continues to apply to a person's obligations in respect of all taxable periods that commence before the 1st day of April 1997 as if—

    • (a) That Part 10; and

    • (b) Any provision giving rise to a liability on the part of a person under that Part 10; and

    • (c) Any provision that exists interdependently with, or has effect for the purposes of (including for the purposes of providing a right of relief or remission), a provision in that Part 10

    had not been repealed or varied by this Act or the Tax Administration Amendment Act (No 2) 1996.

    (3) Section 32 of the Goods and Services Tax Amendment Act 1986 is consequentially repealed.