Taxation (Budget Measures) Act 2010

Reprint
as at 24 May 2011

Coat of Arms of New Zealand

Taxation (Budget Measures) Act 2010

Public Act2010 No 27
Date of assent27 May 2010
Commencementsee section 2

Note

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

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

This Act is administered by the Inland Revenue Department.


Contents

1 Title

2 Commencement

Part 1
Personal tax cuts, company tax cuts, and GST rate increase: 1 October 2010 start

Amendments to Income Tax Act 2007

3 Income Tax Act 2007

4 Withdrawals [Repealed]

5 Attributed income of certain investors in multi-rate PIEs

6 Calculation of tax liability or tax credit of multi-rate PIEs

7 Use of foreign tax credits by zero-rated and certain exiting investors

8 Section HM 58 replaced

9 Notified investor rates

10 What this subpart does

11 Tax credit for redundancy payments

12 ICA benchmark dividend rules

13 FDPA benchmark dividend rules

14 Section OZ 7 replaced

15 Attaching imputation credits and FDP credits: maximum permitted ratio

16 Benchmark dividends: ratio change

17 Modifying ratios for imputation credits and FDP credits

18 Tax credits for imputation credits and FDP credits

19 Tax credits for non-resident investors

20 Fully credited dividends: modifying actual ratio

21 Dividends from qualifying companies

22 Attaching imputation credits and notional distributions: modifying amounts

23 BETA reductions

24 CTRA reductions

25 Methods for calculating provisional tax liability

26 GST ratio method

27 Calculating amount of instalment under standard and estimation methods

28 Calculating amount of instalment using GST ratio

29 Sections RZ 3 to RZ 5C replaced

30 Definitions

31 Schedule 1—Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe benefits: part D, table 1

32 Schedule 1—Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe benefits: part D, table 2

33 Schedule 1—Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe benefits: part D, table 3

34 Schedule 1—Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe benefits: part D, table 4

35 Schedule 1—Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe benefits: part D, table 5

36 Schedule 2—Basic tax rates for PAYE income payments: part A

37 Schedule 2—Basic tax rates for PAYE income payments: part B, table 1

38 Schedule 4—Rates of tax for schedular payments: part I

39 Schedule 6—Prescribed rates: PIE investments and retirement scheme contributions: table 1

40 Schedule 6—Prescribed rates: PIE investments and retirement scheme contributions: table 2

Amendments to Tax Administration Act 1994

41 Tax Administration Act 1994

42 Person advising retirement savings scheme of retirement scheme prescribed rate

43 Section 140BB replaced

Amendments to Goods and Services Tax Act 1985

44 Goods and Services Tax Act 1985

45 Imposition of goods and services tax on supply

46 Value of supply of goods and services

47 Imposition of goods and services tax on imports

48 New section 21CB

49 Deductions from output tax for goods and services applied for making taxable supplies

50 Fringe benefits and entertainment expenses

51 Commissioner's right to withhold payments

52 Effect of imposition or alteration of tax

53 Adjustments to tax payable for persons furnishing returns on payments basis following change in rate of tax

GST-related amendments to Tax Administration Act 1994

54 Tax Administration Act 1994

55 Late payment penalty

56 New section 183AA

Part 2
Personal tax cuts: 2010–11 start

57 Application

Amendments to Income Tax Act 2007

58 Income Tax Act 2007

59 Child's income

60 Tax credits for transitional circumstances

61 Calculation of family tax credit

62 Minimum family tax credit

63 New sections MF 4D and MF 4E

64 Employer's liability for attributed benefits

65 Calculation for certain employees when information lacking

66 Pooling non-attributed benefits

67 Single rate option

68 Alternate rate option

69 Close company option

70 Small business option

71 Schedule 1—Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe benefits: part A, table 1

72 Schedule 1—Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe benefits: part C, table 1

Amendment to Tax Administration Act 1994

73 Returns not required for certain providers of personal services

Part 3
Other measures

Amendments to Income Tax Act 2007

74 Income Tax Act 2007

75 New section CG 8

76 New heading and section DB 64

Capital contributions

77 Annual rate for item acquired in person's 1995–96 or later income year

78 Special rate or provisional rate

79 Improvements

80 Effect of disposal or event

81 Meaning of annual rate

82 Meaning of excluded depreciable property

83 Other definitions

84 Subparts EE and EZ: list of defined terms

85 Annual rate for item acquired on or after 1 April 1993 and before end of person's 1994–95 income year

86 Pre-1993 depreciation rate

87 Thresholds for application of interest apportionment rules

88 Apportionment of interest by excess debt entity

89 Calculation of debt percentages

90 Measurement of debts and assets of worldwide group

91 Tax credits for supplementary dividends

92 Section MB 3 replaced

93 Section MB 3 replaced

94 Orders in Council

95 Subpart ML repealed [Repealed]

96 Definitions

97 Schedule 1—Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe benefits: part A

98 Schedule 1—Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe benefits: part D, table 3

99 New schedule 39

Amendment to Tax Administration Act 1994

100 Write-off of tax by Commissioner


1 Title
  • This Act is the Taxation (Budget Measures) Act 2010.

2 Commencement

Part 1
Personal tax cuts, company tax cuts, and GST rate increase: 1 October 2010 start

Amendments to Income Tax Act 2007

3 Income Tax Act 2007
4 Withdrawals
  • [Repealed]

    Section 4: repealed, on 7 September 2010, by section 209 of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).

5 Attributed income of certain investors in multi-rate PIEs
  • (1) In section CX 56(1)(b), tax rate notified under section HM 60 (Notified rates) is replaced by notified investor rate.

    (2) In section CX 56, in the list of defined terms, notified investor rate is inserted.

6 Calculation of tax liability or tax credit of multi-rate PIEs
  • (1) In section HM 47(4)(a)(i), section HM 60 relating to the investor for the period is replaced by section HM 58 or HM 60, as applicable, that relates to the investor for each day for the period.

    (2) In section HM 47(4)(a)(ii), 30 is replaced by 28.

7 Use of foreign tax credits by zero-rated and certain exiting investors
  • (1) In section HM 52(3)(b), in the words before the subparagraphs, tax year is replaced by tax year or exit period, as applicable.

    (2) In section HM 52(3)(b)(i), for the attribution period before their exit period is replaced with that the PIE would have used had the period not been an exit period.

8 Section HM 58 replaced
  • Section HM 58 is replaced by the following:

    HM 58 Transition of rate for certain investors
    • When this section applies

      (1) This section applies to a multi-rate PIE in relation to a person who is an investor in the PIE, and the person has, on 30 September 2010, a notified investor rate of 12.5%, 21%, or 30%.

      Rate applying on and after 1 October 2010

      (2) On and after 1 October 2010, the person's notified investor rate is––

      • (a) 10.5%, if it was 12.5% on 30 September 2010:

      • (b) 17.5%, if it was 21% on 30 September 2010:

      • (c) 28%, if it was 30% on 30 September 2010.

      Exception: new notified rate

      (3) Subsection (2) does not apply if the person advises the PIE of a different notified investor rate.

      Defined in this Act: multi-rate PIE, notified investor rate, notify.

9 Notified investor rates
  • (1) Section HM 60(3) is replaced by the following:

    Application of rate
    • (3) For an investor for an income year, a multi-rate PIE must apply the most recent notified investor rate to every day in every period for the income year. However, for the 2010–11 income year, the most recent notified investor rate on or after 1 October 2010 is applied only to every day on or after 1 October 2010. For a day before 1 October 2010, the multi-rate PIE must apply the notified investor rate that would have applied ignoring the Taxation (Budget Measures) Act 2010.

    (2) In section HM 60(6), 30 is replaced by 28.

10 What this subpart does
  • In section ML 1(1), redundancy payment is replaced by redundancy payment before 1 October 2010.

11 Tax credit for redundancy payments
  • In section ML 2(1), in the words before the paragraphs, redundancy payment has a tax credit of an amount equal to 6 cents for every complete dollar of total redundancy payments derived by them is replaced by redundancy payment before 1 October 2010 has a tax credit of an amount equal to 6 cents for every complete dollar of total redundancy payments derived by them before 1 October 2010.

12 ICA benchmark dividend rules
  • In section OB 61(4), This subsection is modified by section OZ 9 (Benchmark dividends: ratio change). is added as the second sentence.

13 FDPA benchmark dividend rules
  • In section OC 28(4), This subsection is modified by section OZ 9 (Benchmark dividends: ratio change). is added as the second sentence.

14 Section OZ 7 replaced
  • Section OZ 7 is replaced by the following:

    OZ 7 Memorandum accounts in transitional period
    • Unless the context otherwise requires, sections OZ 8 to OZ 15 apply for a period (the transitional period)—

      • (a) beginning the first day of a person's 2011–12 income year; and

      • (b) ending on 31 March 2013.

      Defined in this Act: income year.

15 Attaching imputation credits and FDP credits: maximum permitted ratio
16 Benchmark dividends: ratio change
17 Modifying ratios for imputation credits and FDP credits
  • (1) In section OZ 10(1)(a), 1 October 2007 to 31 March 2010 is replaced by 1 October 2010 to 31 March 2013.

    (2) In section OZ 10(1)(b)(i) to (iii),––

    • (a) 30/70 is replaced, in each place in which it appears, by 28/72; and

    • (b) 33/67 is replaced, in each place in which it appears, by 30/70.

    (3) In section OZ 10(2), 33/67 is replaced by 30/70.

18 Tax credits for imputation credits and FDP credits
  • (1) Section OZ 11(1)(a) is replaced by the following:

    • (a) a person—

      • (i) derives a dividend in the transitional period, if the person is a new company tax rate person that is not a multi-rate PIE:

      • (ii) derives a dividend in the period from 1 October 2010 to 31 March 2013, if the person is a new company tax rate person that is a multi-rate PIE; and.

    (2) In section OZ 11(1)(b)(i) to (iii),––

    • (a) 30/70 is replaced, in each place in which it appears, by 28/72; and

    • (b) 33/67 is replaced, in each place in which it appears, by 30/70.

    (3) In section OZ 11(1)(c), new tax rate person is replaced by new company tax rate person.

    (4) In section OZ 11(2), in the formula, 0.30 is replaced by 0.28.

    (5) In section OZ 11(4), in the formula, 0.30 is replaced by 0.28.

    (6) In section OZ 11, in the list of defined terms, multi-rate PIE and new company tax rate person are inserted.

19 Tax credits for non-resident investors
  • (1) In section OZ 12(1)(b)(i) and (ii),––

    • (a) 30/70 is replaced, in each place in which it appears, by 28/72; and

    • (b) 33/67 is replaced, in each place in which it appears, by 30/70.

    (2) In section OZ 12(2),––

    • (a) 33/67 is replaced by 30/70; and

    • (b) 7/17 as 67/187 is replaced by 24/53 as 7/17.

    (3) In section OZ 12(3),––

    • (a) 33/67 is replaced, in each place in which it appears, by 30/70; and

    • (b) 7/17 as 67/187 is replaced by 24/53 as 7/17.

    (4) In section OZ 12(4), 33/67 is replaced by 30/70.

    (5) In section OZ 12(5), 33 is replaced by 30.

20 Fully credited dividends: modifying actual ratio
  • (1) In section OZ 13(1),––

    • (a) 30/70 is replaced by 28/72; and

    • (b) 33/67 is replaced by 30/70.

    (2) In section OZ 13(2), 30/70 is replaced by 28/72.

21 Dividends from qualifying companies
22 Attaching imputation credits and notional distributions: modifying amounts
  • In section OZ 15,––

    • (a) in subsection (2), 33 is replaced by 30; and

    • (b) in subsection (3), 33 is replaced by 30; and

    • (c) in subsection (4), 33 is replaced by 30; and

    • (d) in subsection (5), 33 is replaced by 30.

23 BETA reductions
  • (1) In section OZ 16(1),––

    • (a) in paragraph (a), 2008–09 is replaced by 2011–12; and

    • (b) in paragraph (b),––

      • (i) 2008–09 is replaced by 2011–12; and

      • (ii) 2007–08 is replaced by 2010–11.

    (2) In section OZ 16(2), 30/33 is replaced by 28/30.

24 CTRA reductions
  • (1) In section OZ 17(1),––

    • (a) in paragraph (a), 2008–09 is replaced by 2011–12; and

    • (b) in paragraph (b),––

      • (i) 2008–09 is replaced by 2011–12; and

      • (ii) 2007–08 is replaced by 2010–11.

    (2) In section OZ 17(2), 30/33 is replaced by 28/30.

25 Methods for calculating provisional tax liability
  • In section RC 5(4), Sections RZ 3 and RZ 5B (which relate to tax rate changes) modify is replaced by Section RZ 3 (Standard method: 2010–11 to 2012–13 income years) modifies.

26 GST ratio method
  • In section RC 8(9), Sections RZ 4 and RZ 5C (which relate to tax rate changes) modify is replaced by Section RZ 4 (GST ratio method: 2010–11 to 2013–14 income years) modifies.

27 Calculating amount of instalment under standard and estimation methods
  • In section RC 10(3)(a),––

    • (a) in subparagraph (i), sections RZ 5 and RZ 5B (which relate to tax rate changes) is replaced by section RZ 5 (Calculating amounts under standard method: 2010–11 to 2012–13 income years); and

    • (b) in subparagraph (ii), sections RZ 5 and RZ 5B is replaced by section RZ 5.

28 Calculating amount of instalment using GST ratio
  • In section RC 11(4), Sections RZ 4 and RZ 5C (which relate to tax rate changes) modify is replaced by Section RZ 4 (GST ratio method: 2010–11 to 2013–14 income years) modifies.

29 Sections RZ 3 to RZ 5C replaced
  • Sections RZ 3 to RZ 5C are replaced by the following:

    RZ 3 Standard method: 2010–11 to 2012–13 income years
    • When this section applies

      (1) This section applies to the calculation of a person's provisional tax liability, when section RC 5 (Methods for calculating provisional tax liability) applies,––

      • (a) for instalments payable on or after 1 October 2010 for the 2010–11 income year and for instalments for the 2011–12 and 2012–13 income years, if the person is a new personal tax rate person:

      • (b) for instalments payable for the 2011–12 and 2012–13 income years, if the person is a new company tax rate person.

      Standard method modified: for 5% uplift

      (2) The standard method under section RC 5(2) is modified so that––

      • (a) for instalments payable on or after 1 October 2010 for the 2010–11 income year, instead of using 105%, the amount of provisional tax payable is calculated using 95%, if the person is a new personal tax rate person:

      • (b) for the 2011–12 income year, instead of using 105%, the amount of provisional tax payable is calculated using––

        • (i) 95%, if the person is a new personal tax rate person; or

        • (ii) 100%, if the person is a new company tax rate person.

      Standard method modified: for 10% uplift

      (3) The standard method under section RC 5(3) is modified so that––

      • (a) for instalments payable on or after 1 October 2010 for the 2010–11 income year, instead of using 110%, the amount of provisional tax payable is calculated using 95%, if the person is a new personal tax rate person:

      • (b) for the 2011–12 income year, instead of using 110%, the amount of provisional tax payable is calculated using––

        • (i) 95%, if the person is a new personal tax rate person; or

        • (ii) 105%, if the person is a new company tax rate person:

      • (c) for the 2012–13 income year, instead of using 110%, the amount of provisional tax payable is calculated using––

        • (i) 100%, if the person is a new personal tax rate person; or

        • (ii) 105%, if the person is a new company tax rate person.

      Defined in this Act: amount, income year, new company tax rate person, new personal tax rate person, pay, provisional tax

    RZ 4 GST ratio method: 2010–11 to 2013–14 income years
    • When this section applies

      (1) This section applies to the calculation of a person's provisional tax liability, when section RC 8 (GST ratio method) applies and requires an amount of residual income tax or an assessment of income tax for the calculation of the GST ratio,––

      • (a) for instalments payable on or after 1 October 2010 for the 2010–11 income year and for instalments for the 2011–12, 2012–13, and 2013–14 income years, if the person is a new personal tax rate person:

      • (b) for instalments payable for the 2011–12, 2012–13, and 2013–14 income years, if the person is a new company tax rate person.

      (2) The GST ratio method under section RC 8 is modified so that––

      • (a) for instalments payable on or after 1 October 2010 for the 2010–11 income year, and for the 2011–12 income year, if the person is a new personal tax rate person,––

        • (i) the amount of residual income tax or the amount of an assessment of income tax for the preceding year, as applicable, is reduced by multiplying the amount by 0.90:

        • (ii) the amount of residual income tax or the amount of an assessment of income tax for the tax year before the preceding year or the transitional year, as applicable, is reduced by multiplying the amount by 0.85:

        • (iii) the amount of residual income tax or the amount of an assessment of income tax for the year that is 2 years before the preceding year or the transitional year, as applicable, is reduced by multiplying the amount by 0.80:

      • (b) for instalments payable for the 2012–13 income year, if the person is a new personal tax rate person,––

        • (i) the amount of residual income tax or the amount of an assessment of income tax for the tax year before the preceding year or the transitional year, as applicable, is reduced by multiplying the amount by 0.90:

        • (ii) the amount of residual income tax or the amount of an assessment of income tax for the year that is 2 years before the preceding year or the transitional year, as applicable, is reduced by multiplying the amount by 0.85:

      • (c) for instalments payable for the 2013–14 income year, if the person is a new personal tax rate person, the amount of residual income tax or the amount of an assessment of income tax for the year that is 2 years before the preceding year or the transitional year, as applicable, is reduced by multiplying the amount by 0.90:

      • (d) for instalments payable for the 2011–12 income year, if the person is a new company tax rate person,––

        • (i) the amount of residual income tax or the amount of an assessment of income tax for the preceding year, as applicable, is reduced by multiplying the amount by 0.95:

        • (ii) the amount of residual income tax or the amount of an assessment of income tax for the tax year before the preceding year or the transitional year, as applicable, is reduced by multiplying the amount by 0.95:

        • (iii) the amount of residual income tax or the amount of an assessment of income tax for the year that is 2 years before the preceding year or the transitional year, as applicable, is reduced by multiplying the amount by 0.95:

      • (e) for instalments payable for the 2012–13 income year, if the person is a new company tax rate person,––

        • (i) the amount of residual income tax or the amount of an assessment of income tax for the tax year before the preceding year or the transitional year, as applicable, is reduced by multiplying the amount by 0.95:

        • (ii) the amount of residual income tax or the amount of an assessment of income tax for the year that is 2 years before the preceding year or the transitional year, as applicable, is reduced by multiplying the amount by 0.95:

      • (f) for instalments payable for the 2013–14 income year, if the person is a new company tax rate person, the amount of residual income tax or the amount of an assessment of income tax for the year that is 2 years before the preceding year or the transitional year, as applicable, is reduced by multiplying the amount by 0.95.

      Defined in this Act: amount, assessment, GST ratio, income tax, income year, new company tax rate person, new personal tax rate person, pay, provisional tax, residual income tax

    RZ 5 Calculating amounts under standard method: 2010–11 to 2012–13 income years
    • When this section applies

      (1) This section applies to the calculation of a person's provisional tax liability, when section RC 10 (Calculating amount of instalment under standard and estimation methods) applies,––

      • (a) for instalments payable on or after 1 October 2010 for the 2010–11 income year and for instalments for the 2011–12 and 2012–13 income years, if the person is a new personal tax rate person:

      • (b) for instalments payable for the 2011–12 and 2012–13 income years, if the person is a new company tax rate person.

      Calculation modified: for 5% uplift

      (2) In the calculation of the amount of an instalment, in section RC 10(3)(a), subparagraph (i) is modified so that––

      • (a) for instalments payable on or after 1 October 2010 for the 2010–11 income year, instead of using a 5% uplift, a 5% reduction is used, if the person is a new personal tax rate person:

      • (b) for the 2011–12 income year, instead of using a 5% uplift, the amount of provisional tax payable is calculated using––

        • (i) a 5% reduction, if the person is a new personal tax rate person; or

        • (ii) no uplift, if the person is a new company tax rate person.

      Calculation modified: for 10% uplift

      (3) In the calculation of the amount of an instalment, in section RC 10(3)(a), subparagraph (ii) is modified so that––

      • (a) for instalments payable on or after 1 October 2010 for the 2010–11 income year, instead of using a 10% uplift, a 5% reduction is used, if the person is a new personal tax rate person:

      • (b) for the 2011–12 income year, instead of using a 10% uplift, the amount of provisional tax payable is calculated using––

        • (i) a 5% reduction, if the person is a new personal tax rate person; or

        • (ii) a 5% uplift, if the person is a new company tax rate person:

      • (c) for the 2012–13 income year, instead of using a 10% uplift, the amount of provisional tax payable is calculated using––

        • (i) no uplift, if the person is a new personal tax rate person; or

        • (ii) a 5% uplift, if the person is a new company tax rate person.

      Defined in this Act: amount, income year, new company tax rate person, new personal tax rate person, pay, provisional tax.

30 Definitions
  • (1) This section amends section YA 1.

    (2) The definition of new personal tax rate person is replaced by the following:

    new company tax rate person,––

    • (a) means a person who uses a 28% basic tax rate for the 2011–12 income year or later income years:

    • (b) includes, for the purposes of subpart OZ (Terminating provisions), a multi-rate PIE:

    • (c) does not include, for the purposes of subpart RZ (Terminating provisions), a multi-rate PIE

    new personal tax rate person means a person whose basic rate of income tax is calculated under schedule 1, part A, clause 1 for the 2010–11 income year or a later income year.

    (3) The definition of new tax rate person is repealed.

    (4) In the definition of notified investor rate, section HM 60 (Notified rates) is replaced by section HM 60 (Notified investor rates) or a notified investor rate under section HM 58 (Transition of rate for certain investors).

    (5) In the definition of old company tax rate, 33 is replaced by 30.

31 Schedule 1—Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe benefits: part D, table 1
  • Schedule 1, part D, table 1 is replaced by the following:

    Table 1
    RowESCT rate threshold amountTax rate
    1$0 – $16,800 0.105
    2$16,801 – $57,600 0.175
    3$57,601 – $84,0000.300
    4$84,001 upwards0.330
    How to use this table:Find the range in the second column for the last dollar of the amount of salary or wages under section RD 69(1), and apply the relevant rate in the third column.
32 Schedule 1—Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe benefits: part D, table 2
  • Schedule 1, part D, table 2 is replaced by the following:

    Table 2
    RowConditionsPayment rate
    1The payer of the interest has not been supplied with the tax file number of a person who is paid the interest. 0.330
     
    2The payer of the interest— 
     (a)  has been supplied with the tax file number of a person who opens a new account after 31 March 2010 and who is paid the interest; and 
     (b) has not received a payment rate election from the recipient of the interest: 
     (c) is not required to use a rate notified by the Commissioner under section 25A of the Tax Administration Act 1994.0.330
    3The payer of the interest— 
     (a)  has been supplied with the tax file number of a person who is paid the interest; and  
     (b) has received a payment rate election from the recipient of the interest–– 
      (i)before 1 October 2010, choosing the 0.390 or 0.380 payment rate, and the payer is not required to use a rate notified by the Commissioner under section 25A of the Tax Administration Act 1994: 
      (ii)on or after 1 October 2010, choosing the 0.330 payment rate.0.330
    4 The payer of the interest— 
     (a) has been supplied with the tax file number of a person who is paid the interest; and  
     (b) has received a payment rate election from the recipient of the interest–– 
      (i)before 1 October 2010, choosing the 0.330 payment rate, and the payer is not required to use a rate notified by the Commissioner under section 25A of the Tax Administration Act 1994: 
      (ii)on or after 1 October 2010, choosing the 0.300 payment rate.0.300
    5The payer of the interest— 
     (a)  has been supplied with the tax file number of a person who has not opened a new account after 31 March 2010 and who is paid the interest; and  
     (b) has not received a payment rate election from the recipient of the interest; and 
     (c) is not required to use a rate notified by the Commissioner under section 25A of the Tax Administration Act 1994.0.175
    6 The payer of the interest— 
     (a) has been supplied with the tax file number of a person who is paid the interest; and  
     (b) has received a payment rate election from the recipient of the interest–– 
      (i)before 1 October 2010, choosing the 0.195 or 0.210 payment rate, and the payer is not required to use a rate notified by the Commissioner under section 25A of the Tax Administration Act 1994: 
      (ii)on or after 1 October 2010, choosing the 0.175 payment rate.0.175
    7 The payer of the interest— 
     (a) has been supplied with the tax file number of a person, other than a trustee, who is paid the interest; and  
     (b)  has received a payment rate election from the recipient of the interest–– 
      (i)before 1 October 2010, choosing the 0.125 payment rate, and the payer is not required to use a rate notified by the Commissioner under section 25A of the Tax Administration Act 1994: 
      (ii)on or after 1 October 2010, choosing the 0.105 payment rate; and 
     (c) the recipient has a reasonable expectation at the time of the election that their income for the income year will be $14,000 or less.0.105
    8The payer of the interest— 
     (a) has been supplied with the tax file number of a person who is paid the interest as a trustee of a testamentary trust to which section HC 37 applies; and 
     (b) has received a payment rate election from the recipient of the interest–– 
      (i)before 1 October 2010, choosing the 0.125 payment rate, and the payer of the interest is not required to use a rate notified by the Commissioner under section 25A of the Tax Administration Act 1994: 
      (ii)on or after 1 October 2010, choosing the 0.105 payment rate.0.105
    How to use this table:Find the applicable condition in the second column, in order to find the relevant rate to apply, in the third column.
33 Schedule 1—Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe benefits: part D, table 3
  • In schedule 1, part D, table 3, rows 3 and 4 are replaced by the following:

    3The payer of the interest— 
     (a)  has been supplied with the tax file number of a person who is paid interest; and  
     (b) has received a payment rate election from the recipient of the interest,–– 
      (i)on or after 1 October 2010, choosing the 0.33 payment rate: 
      (ii)before 1 October 2010, choosing the 0.39 or 0.38 payment rate.0.33
    4 The payer of the interest has not been supplied with the tax file number of a person who is paid the interest.0.33
34 Schedule 1—Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe benefits: part D, table 4
  • In schedule 1, part D, table 4, row 2, 0.38 is replaced by 0.33.

35 Schedule 1—Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe benefits: part D, table 5
  • Schedule 1, part D, table 5 is replaced by the following:

    Table 5
    RowConditionsPayment rate
    1The person responsible for withholding RSCT— 
     (a) has been notified under section 28C of the Tax Administration Act 1994 that 12.5 or 10.5 cents in the dollar is the person's retirement scheme prescribed rate; and 
     (b)has been supplied with the tax file number of the person.0.105
    2 The person is a non-resident and a distribution of no more than $200 is made to them by a retirement scheme contributor that is a Maori authority.0.105
    3The person responsible for withholding RSCT— 
     (a)has been notified under section 28C of the Tax Administration Act 1994 that 21 or 17.5 cents in the dollar is equal to or greater than the person's retirement scheme prescribed rate; and 
     (b)has been supplied with the tax file number of the person.0.175
    4 The person responsible for withholding RSCT— 
     (a) has been notified under section 28C of the Tax Administration Act 1994 that 33 or 30 cents in the dollar is equal to or greater than the person's retirement scheme prescribed rate; and 
     (b)has been supplied with the tax file number of the person.0.300
    5When none of rows 1 to 4 apply.0.330
    How to use this table:Find the applicable condition in the second column, in order to find the relevant rate to apply, in the third column.
36 Schedule 2—Basic tax rates for PAYE income payments: part A
  • In schedule 2, part A,––

    • (a) in clause 4, 0.21 is replaced by 0.175; and

    • (b) in clause 5, 0.33 is replaced by 0.300; and

    • (c) in clause 6, 0.38 is replaced by 0.330; and

    • (d) in clause 7, 0.21 is replaced by 0.175; and

    • (e) in clause 9, 0.125 is replaced by 0.105.

37 Schedule 2—Basic tax rates for PAYE income payments: part B, table 1
38 Schedule 4—Rates of tax for schedular payments: part I
  • In schedule 4, part I, clause 1, 0.125 is replaced by 0.105.

39 Schedule 6—Prescribed rates: PIE investments and retirement scheme contributions: table 1
  • In schedule 6, table 1,––

    • (a) in row 1, 0.300 is replaced by 0.280; and

    • (b) in row 2, 0.300 is replaced by 0.280; and

    • (c) in row 3, 0.300 is replaced by 0.280; and

    • (d) in row 4, 0.210 is replaced by 0.175; and

    • (e) in row 5, 0.210 is replaced by 0.175; and

    • (f) in row 6, 0.125 is replaced by 0.105; and

    • (g) in row 7, 0.125 is replaced by 0.105.

40 Schedule 6—Prescribed rates: PIE investments and retirement scheme contributions: table 2
  • In schedule 6, table 2,––

    • (a) in row 1, 0.380 is replaced by 0.330; and

    • (b) in row 2, 0.330 is replaced by 0.300; and

    • (c) in row 3, 0.210 is replaced by 0.175; and

    • (d) in row 4, 0.125 is replaced by 0.105; and

    • (e) in row 5, 0.125 is replaced by 0.105; and

    • (f) in row 6, 0.125 is replaced by 0.105.

Amendments to Tax Administration Act 1994

41 Tax Administration Act 1994
42 Person advising retirement savings scheme of retirement scheme prescribed rate
43 Section 140BB replaced
  • Section 140BB is replaced by the following:

    140C Transitional imputation penalty tax payable in some circumstances
    • (1) This section applies when a company has an end of year debit balance under section OA 3(3) and (4) of the Income Tax Act 2007 for its imputation credit account as at 31 March 2013, if the company is treated, for the purposes of this section, as having only the balances and adjustments referred to in subsections (2) and (3).

      (2) For the purposes of subsection (1), for the transitional period, the following adjustments must be made to the company's ICA balance at the end of the company's 2010–11 income year for transactions occurring after the end of that income year:

      • (a) first, the company must subtract any overpayment of income tax for the 2010–11 or earlier income year in which the company was an ICA company:

      • (b) secondly, the company must subtract––

        • (i) any payment for an income year after the 2010–11 income year:

        • (ii) any amount that is or would be refundable for an income year after the 2010–11 income year:

      • (c) thirdly, the company must add any income tax paid for the 2010–11 or earlier income year in which the company was an ICA company.

      (3) For the purposes of subsection (1), the company must include in its ICA balance the ICA credits and debits for transactions occurring after the end of the company's 2010–11 income year to the extent to which those credits and debits relate to memorandum account debits, credits, and balances dealt with, arising, or calculated using an old company tax rate, but excluding any amount taken into account under subsection (2).

      (4) The company is liable for a special tax known as imputation penalty tax.

      (5) The amount of imputation penalty tax is 10% of the positive difference between zero and the end of year debit balance described in subsection (1).

Amendments to Goods and Services Tax Act 1985

44 Goods and Services Tax Act 1985
45 Imposition of goods and services tax on supply
  • (1) In section 8(1), 12.5 is replaced by 15.

    (2) Subsection (1) applies to supplies made on or after 1 October 2010.

46 Value of supply of goods and services
  • (1) In section 10(6), 7.5 is replaced in each place in which it appears by 9.

    (2) Subsection (1) applies to supplies made on or after 1 October 2010.

47 Imposition of goods and services tax on imports
  • (1) In section 12(1), 12.5 is replaced by 15.

    (2) Subsection (1) applies to the importation of goods on or after 1 October 2010.

48 New section 21CB
  • After section 21C, the following is inserted:

    21CB Rate for change of use before 1 October 2010
    • For a registered person who is treated as supplying goods and services as described in sections 21 and 21D, the rate of goods and services tax used for attributing output tax under section 21C for the supply of those goods and services is the rate that applied for the supply of goods and services immediately before 1 October 2010 if,––

      • (a) before 1 October 2010, the goods and services are applied for a purpose other than making taxable supplies; and

      • (b) the registered person chooses to apply this section.

49 Deductions from output tax for goods and services applied for making taxable supplies
  • (1) In section 21F(1), tax fraction is replaced by COU tax fraction.

    (2) After section 21F(2), the following is inserted:

    • (4) For the purposes of this section, COU tax fraction means––

      • (a) the tax fraction, if paragraph (b) does not apply:

      • (b) the tax fraction that applied at the time that the goods and services referred to in section 21E were acquired by the person, if, before 1 October 2010, the goods and services are applied in a taxable period for a purpose of making taxable supplies either by the person or, if the person is a member of a partnership, by the partnership.

50 Fringe benefits and entertainment expenses
  • (1) In section 21I(4)(b), the time of the supply is replaced by unless subsection (4B) applies, the time of the supply.

    (2) After section 21I(4), the following is inserted:

    • (4B) Despite subsection (4)(b), for a registered person who is treated as supplying entertainment as described in subsection (4), the time of supply for that entertainment is treated as being 30 September 2010 if––

      • (a) the relevant expenditure or loss for the entertainment is incurred before 1 October 2010; and

      • (b) the registered person chooses to apply this section.

51 Commissioner's right to withhold payments
52 Effect of imposition or alteration of tax
  • In section 78(2), in the words before the paragraphs, or where the alteration in the law has been taken into account, is omitted.

53 Adjustments to tax payable for persons furnishing returns on payments basis following change in rate of tax
  • (1) Section 78B(2)(b) is repealed.

    (2) In section 78B(4), for the return referred to in subsection (2)(b) of this section. is replaced by for,––, and the following is added:

    • (a) the person's part 1 return furnished under section 78A of this Act; or

    • (b) the return for the taxable period ending with the day preceding the date on which the new rate of tax comes into force, if the person is not required to furnish a part 1 return.

    (3) In section 78B(5), paragraph (c) and the words following paragraph (c) are replaced by the following:

    • (c) to the extent that it cannot be so set off, refunded to the person, subject to section 46(6).

GST-related amendments to Tax Administration Act 1994

54 Tax Administration Act 1994
55 Late payment penalty
  • (1) In section 139B(1)(b), the taxpayer has failed is replaced by ignoring any failure to pay for which a penalty is remitted under section 183AA, the taxpayer has failed.

    (2) In section 139B(1)(c), the taxpayer has paid on time is replaced by ignoring any failure to pay for which a penalty is remitted under section 183AA, the taxpayer has paid on time.

56 New section 183AA
  • Before section 183A, the following is inserted:

    183AA Remission for GST transitional taxable periods
    • (1) This section applies to––

      • (a) a late filing penalty imposed under section 139AAA in respect of a GST return required to be furnished for a GST transitional taxable period:

      • (b) a late payment penalty imposed under section 139B in respect of unpaid tax for a GST transitional taxable period:

      • (c) interest payable under Part 7 in respect of unpaid tax for a GST transitional taxable period.

      (2) The Commissioner must remit a taxpayer's penalty or interest to the extent to which, objectively, the penalty or interest are imposed because of the taxpayer's acts or omissions in respect of the change in the rate of goods and services tax on 1 October 2010.

      (3) Subsection (2) does not apply if the taxpayer is liable for a shortfall penalty in respect of a GST transitional taxable period, if the liability is attributable wholly or in part to the taxpayer's acts or omissions in respect of the change in the rate of goods and services tax on 1 October 2010.

      (4) In this section, GST transitional taxable period means, for a taxpayer,—

      • (a) a taxable period, as defined in the Goods and Services Tax Act 1985 (a GST taxable period), that includes 1 October 2010:

      • (b) a GST taxable period that includes 1 October 2010 and a later GST taxable period, if that later GST taxable period ends on or before 31 December 2010:

      • (c) a GST taxable period for which the taxpayer is required to make a return that includes an adjustment under section 78B of the Goods and Services Tax Act 1985 because of the change in the rate of goods and services tax on 1 October 2010.

    Section 56: amended, on 7 September 2010, pursuant to section 174 of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).

Part 2
Personal tax cuts: 2010–11 start

57 Application
  • In this Part, other than section 58,—

    • (a) the subsection (1) of the sections apply for the 2010–11 income year and later income years:

    • (b) the subsection (2) of the sections apply for the 2011–12 income year and later income years.

Amendments to Income Tax Act 2007

58 Income Tax Act 2007
59 Child's income
  • (1) In section LC 3,––

    • (a) in subsection (3)(a), $292.50 is replaced by $269.10; and

    • (b) in subsection (4), in the formula, 12.5 is replaced by 11.5.

    (2) In section LC 3,––

    • (a) in subsection (3)(a), $269.10 is replaced by $245.70; and

    • (b) in subsection (4), in the formula, 11.5 is replaced by 10.5.

60 Tax credits for transitional circumstances
  • (1) In section LC 4,––

    • (a) in subsection (3)(a)(i), $728 is replaced by $669.76; and

    • (b) in subsection (4), in the formula,––

      • (i) $728 is replaced by $669.76; and

      • (ii) 0.20 is replaced by 0.184.

    (2) In section LC 4,––

    • (a) in subsection (3)(a)(i), $669.76 is replaced by $611.52; and

    • (b) in subsection (4), in the formula,––

      • (i) $669.76 is replaced by $611.52; and

      • (ii) 0.184 is replaced by 0.168.

61 Calculation of family tax credit
  • (1) In section MD 3(4),––

    • (a) in paragraph (a)(i), $4,487 is replaced by $4,532:

    • (b) in paragraph (a)(ii), $5,198 is replaced by $5,251:

    • (c) in paragraph (b)(i), $3,119 is replaced by $3,151:

    • (d) in paragraph (b)(ii), $3,557 is replaced by $3,593:

    • (e) in paragraph (b)(iii), $4,651 is replaced by $4,698.

    (2) In section MD 3(4),––

    • (a) in paragraph (a)(i), $4,532 is replaced by $4,578:

    • (b) in paragraph (a)(ii), $5,251 is replaced by $5,303:

    • (c) in paragraph (b)(i), $3,151 is replaced by $3,182:

    • (d) in paragraph (b)(ii), $3,593 is replaced by $3,629:

    • (e) in paragraph (b)(iii), $4,698 is replaced by $4,745.

62 Minimum family tax credit
63 New sections MF 4D and MF 4E
  • (1) After section MF 4C, the following is inserted:

    MF 4D Calculation of instalments: 1 April 2010 to 30 September 2010
    • When this section applies

      (1) This section applies for calculating the amount of an instalment by way of tax credit under section MD 1 (Abating WFF tax credit), or as applicable, sections MD 1 and ME 1 (Minimum family tax credit) for the period starting on 1 April 2010 and finishing on 30 September 2010.

      Family tax credit formula: section MD 3

      (2) The instalments for the relevant tax credit are calculated using, for the calculation of the family tax credit, the following formula:

       prescribed amount ×days 
       365. 
      Definition of items in formula in subsection (2)

      (3) The items in the formula are defined in subsections (4) and (5).

      Prescribed amount

      (4) Prescribed amount is the sum of the following amounts:

      • (a) for the eldest dependent child for whom the person is a principal caregiver during the entitlement period, 1 of the following, as applicable:

        • (i) $4,487, if the child is younger than 16:

        • (ii) $5,198, if the child is 16 or older:

        • (iii) a weighted average of the amounts in subparagraphs (i) and (ii) that reflects the proportion of the period for which those subparagraphs apply to the child, if the child turns 16 during the entitlement period; and

      • (b) for each dependent child for whom the person is a principal caregiver during the entitlement period, other than the eldest dependent child, 1 of the following, as applicable:

        • (i) $3,119, if the child is younger than 13:

        • (ii) $3,557, if the child is 13, 14, or 15:

        • (iii) $4,651, if the child is 16 or older:

        • (iv) a weighted average of the amounts in subparagraphs (i) and (ii) that reflects the proportion of the period for which those subparagraphs apply to the child, if the child turns 13 during the entitlement period:

        • (v) a weighted average of the amounts in subparagraphs (ii) and (iii) that reflects the proportion of the entitlement period for which those subparagraphs apply to the child, if the child turns 16 during the entitlement period.

      Days

      (5) Days is the number of days in the entitlement period.

      When another person cares for dependent child

      (6) A family tax credit must be reduced in proportion to the time in the entitlement period that a dependent child spends in the exclusive care of another person who qualifies under section MC 2 (Who qualifies for entitlements under family scheme?).

      Family credit abatement formula: section MD 13

      (7) The instalments for the relevant tax credit are calculated using, for the calculation of the family credit abatement, the following formula:

       full-year abatement ×days 
       365. 
      Definition of items in formula in subsection (7)

      (8) In the formula,—

      • (a) full-year abatement is,—

        • (i) if the person has no spouse, civil union partner, or de facto partner during the entitlement period, and the person’s family scheme income for the relationship period containing the entitlement period is more than $36,827, 20 cents for each complete dollar of the excess; or

        • (ii) if the person has a spouse, civil union partner, or de facto partner during the entitlement period, and the person’s family scheme income, the family scheme income of their spouse, civil union partner, or de facto partner, or the sum of those incomes for the relationship period containing the entitlement period is more than $36,827, 20 cents for each complete dollar of the excess:

      • (b) days is the number of days in the entitlement period excluding the days of any calendar months in which the person receives protected family tax credit as described in section MD 14 (Person receiving protected family tax credit).

      When 56-day period includes 31 March

      (9) If a person who qualifies under section MC 2 receives instalments of the parental tax credit in a 56-day period that includes 31 March, the formula is applied so that—

      • (a) instalments of the parental tax credit received in the first tax year are abated against the person’s family scheme income, the family scheme income of their spouse, civil union partner, or de facto partner, or the sum of those incomes for that tax year; and

      • (b) instalments of the parental tax credit received in the second tax year are abated against the person’s family scheme income, the family scheme income of their spouse, civil union partner, or de facto partner, or the sum of those incomes for that tax year.

      Relationship with subject matter

      (10) Sections MD 14 to MD 16 (which relate to family credit abatement), with necessary modifications, apply to the calculation of the family credit abatement in subsection (7).

      Minimum family tax credit formula: section ME 1

      (11) The instalments for the relevant tax credit are calculated using, for the calculation of the minimum family tax credit, the following formula:

       prescribed amount – net family scheme income ×weekly periods 
       52. 
      Definition of items in formula in subsection (11)

      (12) In the formula,—

      • (a) prescribed amount is $20,800:

      • (b) net family scheme income is the net family scheme income, calculated using the formula in section ME 3 (Meaning of net family scheme income), for a relationship period containing the entitlement period, of––

        • (i) the person; or

        • (ii) their spouse, civil union, or de facto partner; or

        • (iii) the person and their spouse, civil union, or de facto partner:

      • (c) weekly periods is the number of periods of 1 week in the entitlement period for which the person is a full-time earner.

      Relationship with subject matter

      (13) Sections ME 2 (Meaning of employment for this subpart) and ME 3, with necessary modifications, apply to the calculation of the minimum family tax credit in subsection (11).

      Defined in this Act: amount, child, civil union partner, de facto partner, dependent child, entitlement period, family credit abatement, family scheme income, family tax credit, full-time earner, minimum family tax credit, net family scheme income, parental tax credit, principal caregiver, protected family tax credit, relationship period, spouse, tax credit, tax year

    MF 4E Calculation of instalments: 1 October 2010 to 31 March 2011
    • When this section applies

      (1) This section applies for calculating the amount of an instalment by way of tax credit under section MD 1 (Abating WFF tax credit), or as applicable, sections MD 1 and ME 1 (Minimum family tax credit) for the period starting on 1 October 2010 and finishing on 31 March 2011.

      Family tax credit formula: section MD 3

      (2) The instalments for the relevant tax credit are calculated using, for the calculation of the family tax credit, the following formula:

       prescribed amount ×days 
       365. 
      Definition of items in formula in subsection (2)

      (3) The items in the formula are defined in subsections (4) and (5).

      Prescribed amount

      (4) Prescribed amount is the sum of the following amounts:

      • (a) for the eldest dependent child for whom the person is a principal caregiver during the entitlement period, 1 of the following, as applicable:

        • (i) $4,578, if the child is younger than 16:

        • (ii) $5,303, if the child is 16 or older:

        • (iii) a weighted average of the amounts in subparagraphs (i) and (ii) that reflects the proportion of the period for which those subparagraphs apply to the child, if the child turns 16 during the entitlement period; and

      • (b) for each dependent child for whom the person is a principal caregiver during the entitlement period, other than the eldest dependent child, 1 of the following, as applicable:

        • (i) $3,182, if the child is younger than 13:

        • (ii) $3,629, if the child is 13, 14, or 15:

        • (iii) $4,745, if the child is 16 or older:

        • (iv) a weighted average of the amounts in subparagraphs (i) and (ii) that reflects the proportion of the period for which those subparagraphs apply to the child, if the child turns 13 during the entitlement period:

        • (v) a weighted average of the amounts in subparagraphs (ii) and (iii) that reflects the proportion of the entitlement period for which those subparagraphs apply to the child, if the child turns 16 during the entitlement period.

      Days

      (5) Days is the number of days in the entitlement period.

      When another person cares for dependent child

      (6) A family tax credit must be reduced in proportion to the time in the entitlement period that a dependent child spends in the exclusive care of another person who qualifies under section MC 2 (Who qualifies for entitlements under family scheme?).

      Family credit abatement formula: section MD 13

      (7) The instalments for the relevant tax credit are calculated using, for the calculation of the family credit abatement, the following formula:

       full-year abatement ×days 
       365. 
      Definition of items in formula in subsection (7)

      (8) In the formula,—

      • (a) full-year abatement is,—

        • (i) if the person has no spouse, civil union partner, or de facto partner during the entitlement period, and the person’s family scheme income for the relationship period containing the entitlement period is more than $36,827, 20 cents for each complete dollar of the excess; or

        • (ii) if the person has a spouse, civil union partner, or de facto partner during the entitlement period, and the person’s family scheme income, the family scheme income of their spouse, civil union partner, or de facto partner, or the sum of those incomes for the relationship period containing the entitlement period is more than $36,827, 20 cents for each complete dollar of the excess:

      • (b) days is the number of days in the entitlement period excluding the days of any calendar months in which the person receives protected family tax credit as described in section MD 14 (Person receiving protected family tax credit).

      When 56-day period includes 31 March

      (9) If a person who qualifies under section MC 2 receives instalments of the parental tax credit in a 56-day period that includes 31 March, the formula is applied so that—

      • (a) instalments of the parental tax credit received in the first tax year are abated against the person’s family scheme income, the family scheme income of their spouse, civil union partner, or de facto partner, or the sum of those incomes for that tax year; and

      • (b) instalments of the parental tax credit received in the second tax year are abated against the person’s family scheme income, the family scheme income of their spouse, civil union partner, or de facto partner, or the sum of those incomes for that tax year.

      Relationship with subject matter

      (10) Sections MD 14 to MD 16 (which relate to family credit abatement), with necessary modifications, apply to the calculation of the family credit abatement in subsection (7).

      Minimum family tax credit formula: section ME 1

      (11) The instalments for the relevant tax credit are calculated using, for the calculation of the minimum family tax credit, the following formula:

       prescribed amount – net family scheme income ×weekly periods 
       52. 
      Definition of items in formula in subsection (11)

      (12) In the formula,—

      • (a) prescribed amount is $21,216:

      • (b) net family scheme income is the net family scheme income, calculated using the formula in section ME 3 (Meaning of net family scheme income), for a relationship period containing the entitlement period, of––

        • (i) the person; or

        • (ii) their spouse, civil union, or de facto partner; or

        • (iii) the person and their spouse, civil union, or de facto partner:

      • (c) weekly periods is the number of periods of 1 week in the entitlement period for which the person is a full-time earner.

      Relationship with subject matter

      (13) Sections ME 2 (Meaning of employment for this subpart) and ME 3, with necessary modifications, apply to the calculation of the minimum family tax credit in subsection (11).

      Defined in this Act: amount, child, civil union partner, de facto partner, dependent child, entitlement period, family credit abatement, family scheme income, family tax credit, full-time earner, minimum family tax credit, net family scheme income, parental tax credit, principal caregiver, protected family tax credit, relationship period, spouse, tax credit, tax year.

    (2) Sections MF 4B and MF 4C are repealed.

64 Employer's liability for attributed benefits
  • (1) In section RD 50,––

    • (a) in subsection (4), 49 is replaced by 45.99; and

    • (b) in subsection (5), 61.29 is replaced by 55.04.

    (2) In section RD 50,––

    • (a) in subsection (4), 45.99 is replaced by 42.86; and

    • (b) in subsection (5), 55.04 is replaced by 49.25.

65 Calculation for certain employees when information lacking
  • (1) In section RD 52(3),––

    • (a) in paragraph (a), 49 is replaced by 45.99; and

    • (b) in paragraph (b), 61.29 is replaced by 55.04.

    (2) In section RD 52(3),––

    • (a) in paragraph (a), 45.99 is replaced by 42.86; and

    • (b) in paragraph (b), 55.04 is replaced by 49.25.

66 Pooling non-attributed benefits
  • (1) In section RD 53(4),––

    • (a) in paragraph (a), 61 is replaced by 55.04; and

    • (b) in paragraph (b), 49 is replaced by 45.99.

    (2) In section RD 53(4),––

    • (a) in paragraph (a), 55.04 is replaced by 49.25; and

    • (b) in paragraph (b), 45.99 is replaced by 42.86.

67 Single rate option
  • (1) Section RD 58(1), other than its heading, is replaced by the following:

    • (1) An employer who chooses to pay their FBT liability under the single rate option must pay FBT at the rate of––

      • (a) 61% of the taxable value of a fringe benefit for each of the first 2 quarters of a tax year:

      • (b) 49.25% of the taxable value of a fringe benefit for each of the last 2 quarters of a tax year.

    (2) Section RD 58(1), other than its heading, is replaced by the following:

    • (1) An employer who chooses to pay their FBT liability under the single rate option must pay FBT at the rate of 49.25% of the taxable value of a fringe benefit for each of the 4 quarters of a tax year.

68 Alternate rate option
  • (1) In section RD 59,––

    • (a) in subsection (2), first 3 quarters of a tax year at 49% of is replaced by first 2 quarters of a tax year at 49% of, and, for the 3rd quarter, at 43% of,; and

    • (b) subsection (3), other than its heading, is replaced by the following:

    • (3) The employer must pay FBT at the rate of––

      • (a) 61% of the taxable value of a fringe benefit for any of the first 2 quarters of a tax year for which they do not pay at the rate of 49% under subsection (2):

      • (b) 49% of the taxable value of a fringe benefit for the 3rd quarter of a tax year for which they do not pay at the rate of 43% under subsection (2).

    (2) In section RD 59,––

    • (a) in subsection (2), first 2 quarters of a tax year at 49% of, and, for the 3rd quarter, at 43% of, is replaced by first 3 quarters of a tax year at 43% of; and

    • (b) subsection (3), other than its heading, is replaced by the following:

    • (3) The employer must pay FBT at the rate of 49.25% of the taxable value of a fringe benefit for any of the first 3 quarters of a tax year for which they do not pay at the rate of 43% under subsection (2).

    Section 68(2)(b): amended, on 7 September 2010, by section 210 of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).

69 Close company option
70 Small business option
71 Schedule 1—Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe benefits: part A, table 1
  • (1) Schedule 1, part A, table 1 is replaced by the following:

    Table 1
    RowRange of dollar in taxable incomeTax rate
    1$0 – $14,0000.1150
    2$14,001 – $48,0000.1925
    3$48,001 – $70,0000.3150
    4$70,001 upwards0.3550
    How to use this table:Find the range in the second column for each dollar in the person's taxable income, and apply the relevant rate for the dollar in the third column.

    (2) Schedule 1, part A, table 1 is replaced by the following:

    Table 1
    RowRange of dollar in taxable incomeTax rate
    1$0 – $14,0000.105
    2$14,001 – $48,0000.175
    3$48,001 – $70,0000.300
    4$70,001 upwards0.330
    How to use this table:Find the range in the second column for each dollar in the person's taxable income, and apply the relevant rate for the dollar in the third column.
72 Schedule 1—Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe benefits: part C, table 1
  • (1) Schedule 1, part C, table 1 is replaced by the following:

    Table 1
    RowRange of dollar in all-inclusive payTax rate
    1$0 – $12,3900.1299
    2$12,391 – $39,8450.2384
    3$39,846 – $54,9150.4599
    4$54,916 upwards0.5504
    How to use this table:Find the range in the second column for each dollar in the person's all-inclusive pay under section RD 51, and apply the relevant rate for the dollar in the third column.

    (2) Schedule 1, part C, table 1 is replaced by the following:

    Table 1
    RowRange of dollar in all-inclusive payTax rate
    1$0 – $12,5300.1173
    2$12,531 – $40,5800.2121
    3$40,581 – $55,9800.4286
    4$55,981 upwards0.4925
    How to use this table:Find the range in the second column for each dollar in the person's all-inclusive pay under section RD 51, and apply the relevant rate for the dollar in the third column.

Amendment to Tax Administration Act 1994

73 Returns not required for certain providers of personal services
  • (1) In section 33C(c) of the Tax Administration Act 1994, rate of 12.5% from is replaced by rate of 10.5% or 12.5% from.

    (2) In section 33C(c) of the Tax Administration Act 1994, rate of 10.5% or 12.5% from is replaced by rate of 10.5% from.

Part 3
Other measures

Amendments to Income Tax Act 2007

74 Income Tax Act 2007
75 New section CG 8
  • (1) After section CG 7, the following is added:

    CG 8 Capital contributions
    • When this section applies

      (1) This section applies for the income year (the first year) in which a person derives a capital contribution and for the 9 income years after that first year.

      Income

      (2) For an income year, the amount given by the following formula is income of the person derived in that income year:

       capital contribution 
       10. 
      Definition of item in formula

      (3) In the formula, capital contribution is the capital contribution that the person derives in the first year.

      Exception

      (4) This section does not apply for the capital contribution if the person has chosen, in accordance with section DB 64(1)(c) (Capital contributions), to apply section DB 64 instead.

      Defined in this Act: amount, capital contribution, income, income year, return of income.

    (2) Subsection (1) applies for capital contributions derived after 20 May 2010.

76 New heading and section DB 64
  • (1) Before the heading to subpart DC, the following is added to subpart DB:

    Capital contributions

    DB 64 Capital contributions
    • When this section applies

      (1) This section applies if,––

      • (a) a person has derived a capital contribution after 20 May 2010; and

      • (b) in the absence of this section, the person would be allowed a deduction for an amount of depreciation loss for an item of depreciable property for which the capital contribution is a contribution (see: definition of capital contribution); and

      • (c) the person has chosen to apply this section in a return of income for the income year in which the capital contribution is derived.

      Deduction

      (2) For the purposes of quantifying the amount of depreciation loss for the income year under subpart EE (Depreciation), the item's adjusted tax value, base value, cost, or value, as applicable, is reduced by the amount of the capital contribution.

      Links with subpart DA

      (3) This section overrides the general permission.

      Defined in this Act: adjusted tax value, amount, capital contribution, deduction, general permission, income, income year, return of income.

    (2) Subsection (1) applies for capital contributions derived after 20 May 2010.

77 Annual rate for item acquired in person's 1995–96 or later income year
  • (1) In section EE 31(1), the following is added as the second sentence: Subsection (2) specifies the annual rate for the item if the person acquires it, or enters into a binding contract for the purchase or construction of it, on or before 20 May 2010, and subsection (3) specifies the annual rate for the item if subsection (2) does not apply and the person acquires it, or enters into a binding contract for the purchase or construction of it, after 20 May 2010.

    (2) In section EE 31(2),––

    • (a) in the heading, Rate is replaced by Rate for item acquired on or before 20 May 2010; and

    • (b) The rate is is replaced by The rate, if the person acquires the item, or enters into a binding contract for the purchase or construction of the item, on or before 20 May 2010, is.

    (3) After section EE 31(2), the following is added:

    Rate for item acquired after 20 May 2010
    • (3) The rate, if subsection (2) does not apply and the person acquires the item, or enters into a binding contract for the purchase or construction of the item, after 20 May 2010, is 1 of the following:

      • (a) the item's economic rate, special rate, or provisional rate, for an item not described in paragraph (b):

      • (b) a diminishing value rate of 15% or a straight-line rate of 10% for an international aircraft.

    (4) In section EE 31, as amended,––

    • (a) in subsection (2)(a), either paragraph (b) or (c) is replaced by paragraph (b), (c), or (d); and

    • (b) in subsection (2)(c), aircraft. is replaced by aircraft:, and the following is added:

      • (d) 0% for a building that has an economic rate or provisional rate of more than 0% due to an estimated useful life of 50 years or more.”; and; and

    • (c) in subsection (3)(a), paragraph (b) is replaced by either paragraph (b) or (c); and

    • (d) in subsection (3)(b), aircraft. is replaced by aircraft:, and the following is added:

      • (c) 0%, for a building that has an economic rate or provisional rate of more than 0% due to an estimated useful life of 50 years or more.”

    (5) In section EE 31, in the list of defined terms, estimated useful life is inserted.

    (6) Subsections (4) and (5) apply for the 2011–12 and later income years.

78 Special rate or provisional rate
  • (1) Section EE 35(2) is replaced by the following:

    No special rate for excluded depreciable property, special excluded depreciable property, or building
    • (2) A special rate may not be set for an item of excluded depreciable property, an item of special excluded depreciable property, or a building.

    (2) In section EE 35, in the list of defined terms, special excluded depreciable property is inserted.

79 Improvements
  • (1) Section EE 37(3)(a) is replaced by the following:

    • (a) a person who uses the diminishing value method or the straight-line method for the item that was improved may choose to apply subsection (4) or (5), if paragraph (ab) does not apply:

    • (ab) a person who uses the diminishing value method or the straight-line method for the item that was improved must use subsection (3B) if––

      • (i) the person makes the improvement, or enters into a binding contract for the purchase or construction of the improvement, after 30 July 2009; and

      • (ii) the item that was improved is a grandparented structure:.

    (2) Section EE 37(3)(a) and (ab) are replaced by the following:

    • (a) a person who uses the diminishing value method or the straight-line method for the item that was improved may choose to apply subsection (4) or (5), if paragraph (ab) does not apply:

    • (ab) a person who uses the diminishing value method or the straight-line method for the item that was improved must use subsection (3B) if––

      • (i) the person makes the improvement, or enters into a binding contract for the purchase or construction of the improvement, after 20 May 2010; and

      • (ii) the item that was improved is a grandparented structure, or is not a building, is not a used import car, is not an international aircraft, or has not been used or held for use in New Zealand as an item of depreciable property before the date on which the person acquires it:.

    (3) After section EE 37(3), the following is inserted:

    Improvement compulsorily treated as separate item
    • (3B) For the purposes of subsection (3)(ab), a person must treat the improvement as a separate item of depreciable property.

    (4) In section EE 37, in the list of defined terms, grandparented structure, international aircraft, and New Zealand are inserted.

80 Effect of disposal or event
  • (1) Section EE 48(1)(b) is replaced by the following:

    • (b) the amount given by subsections (1B) and (1C).

    (2) After section EE 48(1), the following is inserted:

    Amount for subsection (1)(b)
    • (1B) The amount for the purposes of subsection (1)(b) is given by the following formula:

       item depreciation loss + CZ 11 item amount + DB 64 item amount. 
        
    Definition of items in formula
    • (1C) In the formula in subsection (1B),—

      • (a) item depreciation loss is the total of the amounts of depreciation loss for which the person has been allowed deductions for the item:

      • (b) CZ 11 item amount is the amount of any deduction allowed for the acquisition of the item, for the person, if the item is one to which section CZ 11 (Recovery of deductions for software acquired before 1 April 1993) applies:

      • (c) DB 64 item amount is the amount of the capital contribution for the item, for the person, if the item is one to which section DB 64 (Capital contributions) applies.

    (3) In section EE 48, in the list of defined terms, capital contribution is inserted.

81 Meaning of annual rate
  • (1) In section EE 61(2), The rate is the rate set by section EE 31(2)(a) or (b) if is replaced by The rate is the rate set by section EE 31(2)(a) or (b), or by section EE 31(3)(a), as applicable, if.

    (2) In section EE 61(3), The rate is the rate set by section EE 31(2)(c) if is replaced by The rate is the rate set by section EE 31(2)(c), or by section EE 31(3)(b), as applicable, if.

    (3) After section EE 61(3), the following is inserted:

    1995–1996 income year or later: buildings with estimated useful lives of 50 years or more
    • (3B) The rate is the rate set by section EE 31(2)(d), or by section EE 31(3)(c), as applicable, if the item is a building that––

      • (a) has an economic rate or provisional rate of more than 0% due to an estimated useful life of 50 years or more; and

      • (b) the person acquires in their 1995–96 income year or a later income year.

    (4) After section EE 61(7), the following is inserted:

    Special excluded depreciable property
    • (7B) The rate is 0% for all depreciation methods, if the item is an item of special excluded depreciable property that would be an item of excluded depreciable property but for the exclusion in section EE 64(3).

    (5) In section EE 61, in the list of defined terms, economic rate, estimated useful life, provisional rate, and special excluded depreciable property are inserted.

    (6) Subsections (3) to (5) apply for the 2011–12 and later income years.

82 Meaning of excluded depreciable property
  • (1) After section EE 64(2), the following is added:

    Another exclusion
    • (3) Excluded depreciable property does not include special excluded depreciable property.

    (2) In section EE 64, in the list of defined terms, special excluded depreciable property is inserted.

    (3) Subsections (1) and (2) apply for the 2011–12 and later income years.

83 Other definitions
  • (1) In section EE 67, after the definition of provisional rate, the following is inserted:

    special excluded depreciable property means all buildings that are items not specified in schedule 39 (Items for purposes of definition of special excluded depreciable property).

    (2) In section EE 67, in the list of defined terms, special excluded depreciable property is inserted.

    (3) Subsections (1) and (2) apply for the 2011–12 and later income years.

84 Subparts EE and EZ: list of defined terms
85 Annual rate for item acquired on or after 1 April 1993 and before end of person's 1994–95 income year
  • (1) Section EZ 13(2) is replaced by the following:

    Rate
    • (2) The rate is––

      • (a) the item's economic rate, if the item is not a building that has an economic rate or provisional rate of more than 0% due to an estimated useful life of 50 years or more; or

      • (b) the pre-1993 depreciation rate described in section EZ 14, if the person chooses under that section; or

      • (c) 0%, for a building that has an economic rate or provisional rate of more than 0% due to an estimated useful life of 50 years or more.

    (2) In section EZ 13, in the list of defined terms, estimated useful life, and provisional rate are inserted.

    (3) Subsections (1) and (2) apply for the 2011–12 and later income years.

86 Pre-1993 depreciation rate
  • (1) In section EZ 14(1) 1994–95 income year is replaced by 1994–95 income year excluding buildings that have an economic rate or provisional rate of more than 0% due to an estimated useful life of 50 years or more.

    (2) In section EZ 14, in the list of defined terms, economic rate, estimated useful life, and provisional rate are inserted.

    (3) Subsections (1) and (2) apply for the 2011–12 and later income years.

87 Thresholds for application of interest apportionment rules
  • (1) Section FE 5(1), other than its heading, is replaced by the following:

    • (1) An excess debt entity must apportion its interest expenditure for an income year under section FE 6 if,––

      • (a) the excess debt entity is not a trustee and not an excess debt outbound company, or is a trustee who is not described in section FE 2(1)(g), and––

        • (i) the debt percentage of its New Zealand group for the income year is more than 60%; and

        • (ii) for a company or a trustee, the debt percentage of its New Zealand group for the income year is more than 110% of the debt percentage of the worldwide group; or

      • (b) the excess debt entity is an excess debt outbound company, or is a trustee who is described in section FE 2(1)(g), and––

        • (i) the debt percentage of its New Zealand group for the income year is more than 75%; and

        • (ii) for a company or a trustee, the debt percentage of its New Zealand group for the income year is more than 110% of the debt percentage of the worldwide group.

    (2) Section FE 5(3), other than its heading, is replaced by the following:

    • (3) A natural person must apportion their interest expenditure for an income year under section FE 6 if,––

      • (a) they are not described in section FE 2(1)(g), and the debt percentage of their New Zealand group for the income year is more than 60%; or

      • (b) they are described in section FE 2(1)(g), and the debt percentage of their New Zealand group for the income year is more than 75%.

    (3) Subsections (1) and (2) apply for the 2011–12 and later income years.

88 Apportionment of interest by excess debt entity
  • (1) Section FE 6(3)(e) is replaced by the following:

    • (e) threshold amount is, as applicable,––

      • (i) if the excess debt entity is not a trustee and not an excess debt outbound company, or is a trustee who is not described in section FE 2(1)(g), the greater of 60% and 110% of the debt percentage of their worldwide group:

      • (ii) if the person is a natural person who is not described in section FE 2(1)(g), 60%:

      • (iii) if the excess debt entity is an excess debt outbound company, or is a trustee who is described in section FE 2(1)(g), the greater of 75% and 110% of the debt percentage of their worldwide group:

      • (iv) if the person is a natural person who is described in section FE 2(1)(g), 75%.

    (2) In section FE 6, in the list of defined terms, excess debt outbound company is inserted.

    (3) Subsections (1) and (2) apply for the 2011–12 and later income years.

89 Calculation of debt percentages
  • (1) In section FE 12(2), is more than 75% as described in section FE 5(1)(a), the is replaced by is, as applicable, more than 60% as described in section FE 5(1)(a), or more than 75% as described in section FE 5(1)(b), then the.

    (2) Subsection (1) applies for the 2011–12 and later income years.

90 Measurement of debts and assets of worldwide group
  • (1) Section FE 18(5), other than its heading, is replaced by the following:

    • (5) The debt percentage of the worldwide group of an excess debt entity is treated as,––

      • (a) 54.5454%, if the excess debt entity is not a trustee and not an excess debt outbound company, or is a trustee who is not described in section FE 2(1)(g), and––

        • (i) the entity is unable to calculate the percentage and does not ask the Commissioner to make an estimate under subsection (4):

        • (ii) the Commissioner cannot reasonably estimate the debt percentage under subsection (4):

        • (iii) no member of the entity's worldwide group, other than the entity, is not resident in New Zealand; or

      • (b) 68.1818%, if the excess debt entity is an excess debt outbound company, or is a trustee who is described in section FE 2(1)(g), and––

        • (i) the entity is unable to calculate the percentage and does not ask the Commissioner to make an estimate under subsection (4):

        • (ii) the Commissioner cannot reasonably estimate the debt percentage under subsection (4):

        • (iii) no member of the entity's worldwide group, other than the entity, is not resident in New Zealand.

    (2) Subsection (1) applies for the 2011–12 and later income years.

91 Tax credits for supplementary dividends
  • (1) In section LP 2(2), in the formula, 7/17 is replaced by 24/53.

    (2) Subsection (1) applies for the 2011–12 and later income years.

92 Section MB 3 replaced
  • (1) Section MB 3 is replaced by the following:

    MB 3 When person carries on 1 or more businesses
    • When this section applies

      (1) This section applies when a person carries on 1 or more businesses in the income year (each separate business, a single family scheme activity).

      Ignore income and deductions for net loss activity

      (2) The income and deductions for a person's family scheme activity for an income year are ignored when calculating the person's family scheme income for the year if, treating the person as having only the income and deductions of that activity, the person would have a net loss for that year.

      Modification of what counts as 1 family scheme activity

      (3) For the purposes of applying subsection (2), and despite subsection (1), 2 or more family scheme activities may be treated as a single business activity, if the Commissioner considers that the 2 or more activities are of the kind that are normally carried on in association with each other.

      Apportionment of deductions between family scheme activities

      (4) For the purposes of applying subsection (2) as modified by subsection (3), deductions that relate to an asset used in carrying on 2 or more family scheme activities must be appropriately apportioned between the activities on the basis of the use of that asset in those 2 or more activities.

      Defined in this Act: business, deduction, family scheme income, income, income year, net loss

      Compare: 2004 No 35 s KD 1(1)(f), (2).

    (2) Subsection (1) applies for the 2008–09 and later income years.

93 Section MB 3 replaced
  • (1) Section MB 3 is replaced by the following:

    MB 3 When person carries on 1 or more businesses or investment activities
    • When this section applies

      (1) This section applies when a person carries on 1 or more businesses in the income year, or has or carries on 1 or more investment activities in the income year (each separate business or investment activity, a single family scheme activity).

      Ignore income and deductions for net loss activity

      (2) The income and deductions for a person's family scheme activity for an income year are ignored when calculating the person's family scheme income for the year if, treating the person as having only the income and deductions of that activity, the person would have a net loss for that year.

      Modification of what counts as 1 family scheme activity

      (3) For the purposes of applying subsection (2), and despite subsection (1), 2 or more family scheme activities may be treated as a single family scheme activity, if the Commissioner considers that the 2 or more activities are of the kind that are normally carried on in association with each other.

      Apportionment of deductions between family scheme activities

      (4) For the purposes of applying subsection (2) as modified by subsection (3), deductions that relate to an asset used in carrying on 2 or more family scheme activities must be appropriately apportioned between the activities on the basis of the use of that asset in those 2 or more activities.

      Definition

      (5) In this section, investment activity includes passive holding of an investment asset, other than a variable principal debt instrument.

      Defined in this Act: business, deduction, family scheme income, income, income year, investment activity, net loss, variable principal debt instrument.

    (2) Subsection (1) applies for the 2011–12 and later income years.

94 Orders in Council
  • (1) In section MF 7(1)(a), in the words before the paragraphs and the amount of the threshold set out in section MD 13(3) (Calculation of family credit abatement) is omitted.

    (2) In section MF 7(1)(a)(i), quarterly all groups index number of the is omitted.

    (3) After section MF 7(1)(c), the following is inserted:

    • (cb) increase the amounts appearing as the amount of the threshold set out in section MD 13(3):.

    (4) In section MF 7(2)(a) and (b), movements in the quarterly all groups index number of is replaced with movement in.

    (5) After section MF 7(2), the following is inserted:

    How movement in CPI determined
    • (2B) For the purposes of subsections (1)(a)(i) and (2)(a) and (b), a movement in the New Zealand Consumers Price Index over a period is determined by comparing the following numbers:

      • (a) the number that, when the period started, was the most recent quarterly index number of—

        • (i) the New Zealand Consumers Price Index all groups, if the period starts before 29 April 2010; and

        • (ii) the New Zealand Consumers Price Index all groups excluding cigarettes and other tobacco products, if the period starts after 28 April 2010:

      • (b) the number that, when the period ended, was the most recent quarterly index number of—

        • (i) the New Zealand Consumers Price Index all groups, if the period ends before 29 April 2010; and

        • (ii) the New Zealand Consumers Price Index all groups excluding cigarettes and other tobacco products, if the period ends after 28 April 2010.

    (6) Subsections (2), (4), and (5) apply for Working for Families entitlements for the 2011–12, 2012–13, and 2013–14 tax years.

95 Subpart ML repealed
  • [Repealed]

    Section 95: repealed, on 24 May 2011, by section 14 of the Taxation (Canterbury Earthquake Measures) Act 2011 (2011 No 24).

96 Definitions
  • (1) This section amends section YA 1.

    (2) After the definition of broodmare, the following is inserted:

    building, in subparts EE and EZ, does not include a grandparented structure.

    (3) The definition of capital contribution is replaced by the following:

    capital contribution––

    • (a) in sections CG 8, DB 64, and EE 48 (which relate to capital contributions), means an amount that––

      • (i) is paid by a person (the payer) to a person (the recipient) under an agreement between them that is not a contract of insurance; and

      • (ii) is paid by the payer other than in their capacity of settlor, partner, or shareholder of the recipient; and

      • (iii) is not income of the recipient, ignoring section CG 8; and

      • (iv) is paid, under the express terms and conditions of the agreement, as a contribution for depreciable property owned or to be acquired by the recipient:

    • (b) is defined in section HG 11(12) (Limitation on deductions by partners in limited partnerships) for the purposes of that section.

    (4) After the definition of grandparented consolidated company, the following is inserted:

    grandparented structure means, for a person, any item on the following list, if the person acquired the item, or entered into a binding contract for the purchase or construction of the item, on or before 30 July 2009:

    • (a) barns, including barns (drying):

    • (b) carparks (buildings):

    • (c) chemical works:

    • (d) fertiliser works:

    • (e) powder drying buildings:

    • (f) site huts.

    (5) After the definition of international tax rules, the following is inserted:

    investment activity is defined in section MB 3 (When person carries on 1 or more businesses or investment activities) for the purpose of that section.

    (6) [Repealed]

    (7) After the definition of special corporate entity, the following is inserted:

    special excluded depreciable property is defined in section EE 67 (Other definitions).

    (8) In the definition of temporary building, paragraph (a) is repealed.

    (9) Subsections (5), (7), and (8) apply for the 2011–12 and later income years.

    Section 96(6): repealed, on 24 May 2011, by section 15 of the Taxation (Canterbury Earthquake Measures) Act 2011 (2011 No 24).

97 Schedule 1—Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe benefits: part A
  • (1) In schedule 1, part A, clause 2, 0.30 is replaced by 0.28.

    (2) In schedule 1, part A, clause 5, 0.30 is replaced by 0.28.

    (3) In schedule 1, part A, clause 6, 0.30 is replaced by 0.28.

    (4) In schedule 1, part A, clause 8, 0.30 is replaced by 0.28.

    (5) Subsections (1) to (4) apply for the 2011–12 and later income years.

98 Schedule 1—Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe benefits: part D, table 3
  • In schedule 1, part D, table 3, rows 1 and 2 are replaced by the following:

    1The payer of the interest— 
     (a)  has been supplied with the tax file number of a person who is paid interest; and  
     (b) has not received a payment rate election from the recipient of the interest, ignoring the receipt of an election for the 0.33 payment rate before 1 October 2010 (if any).0.28
    2The payer of the interest— 
     (a) has been supplied with the tax file number of a person who is paid interest; and  
     (b) has received a payment rate election from the recipient of the interest, choosing the 0.28 payment rate.0.28
99 New schedule 39
  • (1) After schedule 37, the following is inserted:

    Schedule 39
    Items for purposes of definition of special excluded depreciable property

    s EE 67

    Carports (hired out to householders)

    Portable huts

    Cool-stores and freezing chambers

    Slaughterhouses on farms

    Fowl houses

    Plastic hothouses and PVC tunnel houses

    Glasshouses

    Buildings affected by acid

    Milking sheds

    Roofed livestock yards

    Wintering barns and simple loafing barns

    Milk powder buildings

    Temporary buildings


    (2) Subsection (1) applies for the 2011–12 and later income years.

Amendment to Tax Administration Act 1994

100 Write-off of tax by Commissioner
  • After section 177C(1C) of the Tax Administration Act 1994, the following is inserted:

    • (1D) The Commissioner must write off an amount, not exceeding $30, of outstanding tax to the extent to which the amount––

      • (a) is outstanding from the 2010–11 tax year; and

      • (b) is tax payable under section MF 5(2) or MF 6(2) of the Income Tax Act 2007, or is otherwise the result of WFF tax credit overpayment or overcrediting.


Contents

  • 1General

  • 2Status of reprints

  • 3How reprints are prepared

  • 4Changes made under section 17C of the Acts and Regulations Publication Act 1989

  • 5List of amendments incorporated in this reprint (most recent first)


Notes
1 General
  • This is a reprint of the Taxation (Budget Measures) Act 2010. The reprint incorporates all the amendments to the Act as at 24 May 2011, as specified in the list of amendments at the end of these notes.

    Relevant provisions of any amending enactments that contain transitional, savings, or application provisions that cannot be compiled in the reprint are also included, after the principal enactment, in chronological order. For more information, see http://www.pco.parliament.govt.nz/reprints/ .

2 Status of reprints
  • Under section 16D of the Acts and Regulations Publication Act 1989, reprints are presumed to correctly state, as at the date of the reprint, the law enacted by the principal enactment and by the amendments to that enactment. This presumption applies even though editorial changes authorised by section 17C of the Acts and Regulations Publication Act 1989 have been made in the reprint.

    This presumption may be rebutted by producing the official volumes of statutes or statutory regulations in which the principal enactment and its amendments are contained.

3 How reprints are prepared
  • A number of editorial conventions are followed in the preparation of reprints. For example, the enacting words are not included in Acts, and provisions that are repealed or revoked are omitted. For a detailed list of the editorial conventions, see http://www.pco.parliament.govt.nz/editorial-conventions/ or Part 8 of the Tables of New Zealand Acts and Ordinances and Statutory Regulations and Deemed Regulations in Force.

4 Changes made under section 17C of the Acts and Regulations Publication Act 1989
  • Section 17C of the Acts and Regulations Publication Act 1989 authorises the making of editorial changes in a reprint as set out in sections 17D and 17E of that Act so that, to the extent permitted, the format and style of the reprinted enactment is consistent with current legislative drafting practice. Changes that would alter the effect of the legislation are not permitted.

    A new format of legislation was introduced on 1 January 2000. Changes to legislative drafting style have also been made since 1997, and are ongoing. To the extent permitted by section 17C of the Acts and Regulations Publication Act 1989, all legislation reprinted after 1 January 2000 is in the new format for legislation and reflects current drafting practice at the time of the reprint.

    In outline, the editorial changes made in reprints under the authority of section 17C of the Acts and Regulations Publication Act 1989 are set out below, and they have been applied, where relevant, in the preparation of this reprint:

    • omission of unnecessary referential words (such as of this section and of this Act)

    • typeface and type size (Times Roman, generally in 11.5 point)

    • layout of provisions, including:

      • indentation

      • position of section headings (eg, the number and heading now appear above the section)

    • format of definitions (eg, the defined term now appears in bold type, without quotation marks)

    • format of dates (eg, a date formerly expressed as the 1st day of January 1999 is now expressed as 1 January 1999)

    • position of the date of assent (it now appears on the front page of each Act)

    • punctuation (eg, colons are not used after definitions)

    • Parts numbered with roman numerals are replaced with arabic numerals, and all cross-references are changed accordingly

    • case and appearance of letters and words, including:

      • format of headings (eg, headings where each word formerly appeared with an initial capital letter followed by small capital letters are amended so that the heading appears in bold, with only the first word (and any proper nouns) appearing with an initial capital letter)

      • small capital letters in section and subsection references are now capital letters

    • schedules are renumbered (eg, Schedule 1 replaces First Schedule), and all cross-references are changed accordingly

    • running heads (the information that appears at the top of each page)

    • format of two-column schedules of consequential amendments, and schedules of repeals (eg, they are rearranged into alphabetical order, rather than chronological).

5 List of amendments incorporated in this reprint (most recent first)
  • Taxation (Canterbury Earthquake Measures) Act 2011 (2011 No 24): sections 14, 15

    Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109): sections 174, 209, 210