Student Loan Scheme Amendment Act 1997

  • repealed
  • Student Loan Scheme Amendment Act 1997: repealed, on 1 April 2012, pursuant to section 225 of the Student Loan Scheme Act 2011 (2011 No 62).

Reprint
as at 1 April 2012

Student Loan Scheme Amendment Act 1997

Public Act1997 No 79
Date of assent23 September 1997
  • Student Loan Scheme Amendment Act 1997: repealed, on 1 April 2012, pursuant to section 225 of the Student Loan Scheme Act 2011 (2011 No 62).


Note

Changes authorised by section 17C of the Acts and Regulations Publication Act 1989 have been made in this eprint.

A general outline of these changes is set out in the notes at the end of this eprint, together with other explanatory material about this eprint.

This Act is administered by the Inland Revenue Department.


An Act to amend the Student Loan Scheme Act 1992

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

1 Short Title
2 Interim repayments to be paid in same manner as provisional tax
  • (1) Section 28 of the principal Act is amended by:

    • (a) Inserting, in subsection (2), after the words Income Tax Act 1994, the words and of the Tax Administration Act 1994;

    • (b) Omitting from paragraph (a) of subsection (3) the expression (1) and substituting the expression (1)(a);

    • (c) Omitting from paragraph (a) of subsection (3) the expression LD 6, and substituting the expression LD 7;

    • (d) Omitting from paragraph (b) of subsection (3) the expression MB 5, and substituting the expression MB 2(1)(b).

3 Payment of terminal repayment obligation
  • Section 30 of the principal Act is amended by repealing subsection (1), and substituting the following subsection:

    • (1) A terminal repayment obligation not previously due and payable is due and payable on—

      • (a) The 7th day of the month specified in Schedule 13 Part A of the Income Tax Act 1994, unless the month is January; and

      • (b) The 15th day of January, where January is the month specified in Schedule 13 Part A of the Income Tax Act 1994..

4 Application of penalty clause in loan contract
5 Underestimation penalty where interim repayments underestimated as at final instalment date
  • The principal Act is amended by inserting, after section 44 (as so substituted), the following section:

    44A
    • (1) If, at the due date for payment of the third instalment, a periodic payer has estimated the repayment obligation and—

      • (a) The estimate applying at the third instalment date is less than 80% of the periodic payer's repayment obligation and is less than the periodic payer's repayment obligation would have been had the periodic payer not estimated; and

      • (b) The amount of interim repayments made on or before the third instalment date is less than 80% of the periodic payer's repayment obligation for the income year—

      the person (subject to subsection (3)) is liable to pay to the Commissioner, by way of penalty, an amount calculated in accordance with subsection (2)..

    • (2) In relation to any income year, the amount of underestimation penalty payable under this section is an amount calculated in accordance with the following formula:

      (a — b) x 10%

      where—

      • a is the periodic payer's repayment obligation for the income year:

      • b is the greater of—

        • (i) The amount of the periodic payer's estimate, being that estimate applying at the due date for payment of the third instalment; and

        • (ii) The amount of the interim repayments paid on or before the due date for payment of the third instalment.

    • (3) If the Commissioner is satisfied that a periodic payer has become liable for underestimation penalty for an income year under this section by reason of—

      • (a) The enactment of any Act amending the Income Tax Act 1994 or the making of any regulation or Order in Council relating to income tax, on or after 1 March in that income year and on or before 20 April in the immediately succeeding income year; or

      • (b) The Commissioner making public, on or after 1 March in that income year and on or before 20 April in the immediately succeeding income year, any ruling in relation to any provision of the Income Tax Act 1994 and that ruling is different from that previously made public by the Commissioner in relation to that provision; or

      • (c) The adoption by the person of an incorrect tax position which is corrected for the income year,

      the Commissioner shall, to the extent that the penalty is higher than it would otherwise have been, write off the penalty or a part thereof.

    • (4) A penalty imposed under this section is deemed to be due and payable on—

      • (a) The 7th day of the month specified in Schedule 13 Part A of the Income Tax Act 1994 as the month for payment of the borrower's terminal tax, unless the month is January; and

      • (b) The 15th day of January, when January is the month specified in Schedule 13 Part A of the Income Tax Act 1994..

6 Application
  • Sections 2, 3, 4, and 5 apply to the 1998-99 and subsequent income years.


Contents

  • 1General

  • 2About this eprint

  • 3List of amendments incorporated in this eprint (most recent first)


Notes
1 General
  • This is an eprint of the Student Loan Scheme Amendment Act 1997. The eprint incorporates all the amendments to the Act as at 1 April 2012. The list of amendments at the end of these notes specifies all the amendments incorporated into this eprint since 3 September 2007.

    Relevant provisions of any amending enactments that contain transitional, savings, or application provisions that cannot be compiled in the eprint are also included, after the principal enactment, in chronological order.

2 About this eprint
3 List of amendments incorporated in this eprint (most recent first)
  • Student Loan Scheme Act 2011 (2011 No 62): section 225