Taxation (Tax Credits, Trading Stock, and Other Remedial Matters) Act 1998

Taxation (Tax Credits, Trading Stock, and Other Remedial Matters) Act 1998

Public Act1998 No 107
Date of assent26 November 1998
Commencement26 November 1998

Note

This Act is administered by the Inland Revenue Department


Contents

Title

15 Low income rebate [Repealed]

22 Definitions [Repealed]


An Act to make remedial amendments respecting tax and other payments made under the Inland Revenue Acts

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

1 Short Title
  • This Act may be cited as the Taxation (Tax Credits, Trading Stock, and Other Remedial Matters) Act 1998.

Part 1
Amendments to Income Tax Act 1994

[Repealed]

  • Part 1 (comprising sections 2 to 23): repealed, on 1 April 2005, by section YA 2 of the Income Tax Act 2004 (2004 No 35).

2 Income Tax Act 1994
  • [Repealed]

    Part 1 (comprising sections 2 to 23): repealed, on 1 April 2005, by section YA 2 of the Income Tax Act 2004 (2004 No 35).

3 Exempt income—interest
  • [Repealed]

    Part 1 (comprising sections 2 to 23): repealed, on 1 April 2005, by section YA 2 of the Income Tax Act 2004 (2004 No 35).

4 Exemption income—dividends
  • [Repealed]

    Part 1 (comprising sections 2 to 23): repealed, on 1 April 2005, by section YA 2 of the Income Tax Act 2004 (2004 No 35).

5 New section inserted
  • [Repealed]

    Part 1 (comprising sections 2 to 23): repealed, on 1 April 2005, by section YA 2 of the Income Tax Act 2004 (2004 No 35).

6 New section inserted
  • [Repealed]

    Part 1 (comprising sections 2 to 23): repealed, on 1 April 2005, by section YA 2 of the Income Tax Act 2004 (2004 No 35).

7 New subpart substituted
  • [Repealed]

    Part 1 (comprising sections 2 to 23): repealed, on 1 April 2005, by section YA 2 of the Income Tax Act 2004 (2004 No 35).

8 Consequential changes to section references resulting from new Part EE
  • [Repealed]

    Part 1 (comprising sections 2 to 23): repealed, on 1 April 2005, by section YA 2 of the Income Tax Act 2004 (2004 No 35).

9 Matching regime for cost of revenue account property
  • [Repealed]

    Part 1 (comprising sections 2 to 23): repealed, on 1 April 2005, by section YA 2 of the Income Tax Act 2004 (2004 No 35).

10 Formula for calculating depreciation deduction
  • [Repealed]

    Part 1 (comprising sections 2 to 23): repealed, on 1 April 2005, by section YA 2 of the Income Tax Act 2004 (2004 No 35).

11 New section inserted
  • [Repealed]

    Part 1 (comprising sections 2 to 23): repealed, on 1 April 2005, by section YA 2 of the Income Tax Act 2004 (2004 No 35).

12 Cancellation of shares held by amalgamating company on amalgamation
  • [Repealed]

    Part 1 (comprising sections 2 to 23): repealed, on 1 April 2005, by section YA 2 of the Income Tax Act 2004 (2004 No 35).

13 Acquisition of property by amalgamated company on qualifying amalgamation
  • [Repealed]

    Part 1 (comprising sections 2 to 23): repealed, on 1 April 2005, by section YA 2 of the Income Tax Act 2004 (2004 No 35).

14 Cross-border arrangement between associated persons
  • [Repealed]

    Part 1 (comprising sections 2 to 23): repealed, on 1 April 2005, by section YA 2 of the Income Tax Act 2004 (2004 No 35).

15 Low income rebate
  • [Repealed]

    Part 1 (comprising sections 2 to 23): repealed, on 1 April 2005, by section YA 2 of the Income Tax Act 2004 (2004 No 35).

16 Determination of net income for family tax credits
  • [Repealed]

    Part 1 (comprising sections 2 to 23): repealed, on 1 April 2005, by section YA 2 of the Income Tax Act 2004 (2004 No 35).

17 Credit of tax for imputation credit
  • [Repealed]

    Part 1 (comprising sections 2 to 23): repealed, on 1 April 2005, by section YA 2 of the Income Tax Act 2004 (2004 No 35).

18 Credits in respect of dividends to non-resident investors
  • [Repealed]

    Part 1 (comprising sections 2 to 23): repealed, on 1 April 2005, by section YA 2 of the Income Tax Act 2004 (2004 No 35).

19 Special rules for holding companies
  • [Repealed]

    Part 1 (comprising sections 2 to 23): repealed, on 1 April 2005, by section YA 2 of the Income Tax Act 2004 (2004 No 35).

20 Specified superannuation contribution withholding tax imposed
  • [Repealed]

    Part 1 (comprising sections 2 to 23): repealed, on 1 April 2005, by section YA 2 of the Income Tax Act 2004 (2004 No 35).

21 New section inserted
  • [Repealed]

    Part 1 (comprising sections 2 to 23): repealed, on 1 April 2005, by section YA 2 of the Income Tax Act 2004 (2004 No 35).

22 Definitions
  • [Repealed]

    Part 1 (comprising sections 2 to 23): repealed, on 1 April 2005, by section YA 2 of the Income Tax Act 2004 (2004 No 35).

23 Further definitions of associated person
  • [Repealed]

    Part 1 (comprising sections 2 to 23): repealed, on 1 April 2005, by section YA 2 of the Income Tax Act 2004 (2004 No 35).

Part 2
Amendments to Tax Administration Act 1994

24 Tax Administration Act 1994
25 Interpretation
  • (1) In section 3(1), in the definition of notice of proposed adjustment, in the prescribed form is inserted after means a notice of proposed adjustment.

    (2) Subsection (1) applies on and after 1 April 1999.

26 Keeping business records
  • After section 22(1)(c)(ii), the following is inserted:

    • (iii) A taxpayer, other than a small taxpayer, must retain all accounting records relating to the calculation of the value of closing stock (as defined in section OB 1 of the Income Tax Act 1994); and

    • (iv) A small taxpayer (as defined in section OB 1 of the Income Tax Act 1994) must retain records of the valuation methods and their application in calculating the value of closing stock, except if the methods and their application are not materially different from the previous income year; and

    • (v) The taxpayer must comply with section EE 16(5) of the Income Tax Act 1994; and.

27 Officers to maintain secrecy
  • In section 81(4)(g), insert or (2A) after subsection (2).

28 Form and content of notice of proposed adjustment
  • (1) In section 89F, in the portion before paragraph (a), be in the prescribed form and is inserted before contain.

    (2) Subsection (1) applies on and after 1 April 1999.

29 Commissioner to make private binding rulings on request
  • Section 91E(4) is amended by adding ; or at the end of paragraph (i) and inserting after paragraph (i) the following:

    • (j) The application for the ruling would require the Commissioner to form an opinion as to a generally accepted accounting principle or to form an opinion as to a commercially acceptable practice.

30 Commissioner may make product rulings
  • Section 91F(4) is amended by adding ; or at the end of paragraph (g) and inserting after paragraph (g) the following:

    • (h) The application for the ruling would require the Commissioner to form an opinion as to a generally accepted accounting principle or to form an opinion as to a commercially acceptable practice.

Part 3
Amendments to Income Tax Act 1976

31 Income Tax Act 1976
  • This Part amends the Income Tax Act 1976 and is to be read together with and is deemed to be a part of that Act as it applied on 31 March 1994 before any subsequent amendment was made, with the exception of the amendments made under this Part.

32 Interpretation
  • (1) In section 2, after the definition of private domestic worker, the following is inserted:

    Property, in section 80A, includes money and money's worth

    (2) Subsection (1) is deemed to have come into force on 1 April 1989.

33 New section inserted
  • (1) After section 80, the following is inserted:

    80A Gross income derived from certain property
    • (1) The income of a person is deemed to include an amount equal to the market value of property the possession or control of which that person obtained without colour of right.

      (2) The income to which this section applies is deemed to be derived in the income year in which possession or control of the property is obtained.

      (3) Subsection (1) applies notwithstanding the existence of any constructive trust of which the person is the trustee.

      (4) In the income year in which the person makes a restitution in respect of property referred to in subsection (1), the person is allowed a deduction equal to the amount of restitution made to a person beneficially entitled to the property referred to in that subsection.

      (5) Restitution in subsection (4) includes restitution made to a person claiming through the person beneficially entitled to the property.

      (6) This section and the definition of property in section 2 does not apply to a taxpayer assessed for income tax in respect of income otherwise deemed to be derived under this section who, before 6 March 1998, made a competent objection under section 126 of the Tax Administration Act 1994.

    (2) This section is deemed to have applied with respect to income derived on or after 1 April 1989 and before the 1995–96 income year.

Part 4
Amendments to Taxation (Remedial Provisions) Act 1996

34 Taxation (Remedial Provisions) Act 1996
  • (1) The heading immediately before section 18 is repealed.

    (2) In section 18(3), 1997 is replaced by 1998.

    (3) The heading immediately before section 19 is repealed.

    (4) In section 19(3), 1998 is replaced by 1999.

    (5) This section is deemed to have come into force on 2 September 1996.