1 Title
2 Commencement
Part 1Amendments to Income Tax Act 2007
3 Income Tax Act 2007
4 Available capital distribution amount
5 New section CG 5B
CG 5B Receipts from insurance, indemnity, or compensation for interruption or impairment of business activities
6 Attributed income of investors in multi-rate PIEs
7 New section CW 1B
CW 1B Treaty of Waitangi claim settlements: rights to take timber
8 Dividend within New Zealand wholly-owned group
9 Attributed income of certain investors in multi-rate PIEs
10 Distributions to investors in multi-rate PIEs
11 New section CZ 23
CZ 23 Insurance or compensation for buildings replaced as revenue account property affected by Canterbury earthquakes
12 Taxes, other than GST, and penalties
13 New section DB 3B
DB 3B Use of money interest
14 New section DB 4B
DB 4B Fees to purchase funds in tax pooling accounts
15 Cost of revenue account property
16 New section DB 54B
DB 54B Expenditure incurred by foreign investment PIEs
17 New section DP 9B
DP 9B Treaty of Waitangi claim settlements: rights to take timber
18 Cost of timber
19 Disposal of petroleum mining asset to associate
20 Association rebates
21 New section DZ 19
DZ 19 Attributed CFC loss carried back under section EZ 32C
22 Valuation under herd scheme
23 What this subpart does
24 Application of sections EE 48 to EE 52
25 Consideration for purposes of section EE 44
26 Events for purposes of section EE 44
27 Effect of disposal or event
28 Use of money interest payable by Commissioner
29 Use of money interest payable by person
30 Section EF 6 repealed
31 What is included when spreading methods used
32 IFRS financial reporting method
33 When calculation of base price adjustment required
34 Base price adjustment formula
35 Consideration when party changes from fair value method
36 Attributable CFC amount
37 Net attributable CFC income or loss
38 Non-attributing active CFC: test based on accounting standards
39 Limits on choice of calculation methods
40 Fair dividend rate method: usual method
41 Fair dividend rate method and cost method: when periods affected by share reorganisations
42 Additional FIF income or loss if CFC owns FIF
43 New section EZ 23B
EZ 23B Property acquired after depreciable property affected by Canterbury earthquakes
44 New section EZ 32C
EZ 32C Treatment in section EX 20C of currency effects on CFC's borrowing
45 Apportionment of interest by excess debt entity
46 Calculation of debt percentages
47 Rights and obligations of amalgamated companies
48 Leases for inadequate rent
49 Further eligibility requirements relating to investments
50 Portfolio entity tax liability and tax credits of portfolio tax rate entity for period
51 Outline of subpart and relationship with other Parts
52 What is a portfolio investment entity?
53 What is an investor class?
54 Intended effects for multi-rate PIEs and investors
55 New section HM 6B
HM 6B Optional look-through rules for PIEs
56 Requirements
57 Residence in New Zealand
58 Investment types
59 Income sources
60 Maximum shareholdings in investments
61 Minimum number of investors
62 New section HM 19B
HM 19B Modified rules for foreign investment zero-rate PIEs
63 New section HM 19C
HM 19C Modified rules for foreign investment variable-rate PIEs
64 Exceptions for certain investors
65 When entity no longer meets investment or investor requirements
66 Rules for multi-rate PIEs
67 Rules for and treatment of investors in multi-rate PIEs
68 Proxies for PIE investors
69 New section HM 35C
HM 35C Determining amounts for notified foreign investors
70 Calculating amounts attributed to investors
71 When superannuation fund investor has conditional entitlement
72 Options for calculation and payment of tax
73 Provisional tax calculation option
74 New section HM 44B
HM 44B NRWT calculation option
75 Voluntary payments
76 Calculation of tax liability or tax credit of multi-rate PIEs
77 Use of foreign tax credits by PIEs
78 Use of tax credits other than foreign tax credits by PIEs
79 New heading and sections HM 55C to HM 55H
Special rules for foreign investment PIEs
HM 55C Modified source rules
HM 55D Requirements for investors in foreign investment PIEs
HM 55E Changes in status of investors in foreign investment PIEs
HM 55F Treatment of income attributed to notified foreign investors
HM 55G Allowable amounts and thresholds for income with New Zealand source
HM 55H Treatment when certain requirements for foreign investment PIEs not met
80 Prescribed investor rates: schedular rates
81 New section HM 57B
HM 57B Prescribed investor rates for new residents
82 Notified investor rates
83 Certain exiting investors zero-rated
84 Use of investor classes' losses
85 Use of land losses of investor classes
86 New section HM 71B
HM 71B Choosing to become foreign investment PIE
87 When elections take effect
88 New section HR 4B inserted
HR 4B Crown activities through New Zealand Superannuation Fund
89 Qualifying companies: transition into look-through companies
90 Common ownership: group of companies
91 Breach in income year in which tax loss component arises
92 New section IQ 1A inserted and amended
IQ 1A When this subpart applies
93 General treatment
94 Ring-fencing cap on attributed CFC net losses
95 Attributed CFC net loss from tax year before first affected year
96 Ring-fencing cap on FIF net losses
97 Group companies using attributed CFC net losses
98 Section IQ 5 repealed
99 Tax credits for resident withholding tax
100 What this subpart does
101 Calculation of New Zealand tax
102 Repaid foreign tax: effect on income tax liability
103 Repaid foreign tax: effect on FDP liability
104 Tax credits relating to attributed CFC income
105 Tax credits for multi-rate PIEs
106 Tax credits for investors in multi-rate PIEs
107 Family scheme income from amounts derived by dependent children
108 Third requirement: residence
109 Fifth requirement: full-time earner
110 Meaning of employment for this subpart
111 Payment of tax credits
112 ICA payment of tax
113 Reduction of further income tax
114 Co-operative companies' notional distributions that are dividends
115 BETA payment of income tax
116 Section OE 8 repealed
117 New section OK 6B
OK 6B MACA attributed PIE income with imputation credit
118 Table O17: Maori authority credits
119 Consolidated BETA payment of income tax
120 Section OP 102 repealed
121 ASCA lost excess available subscribed capital
122 Salary or wages
123 Section RD 67 replaced
RD 67 Calculating amounts of tax for employer's superannuation cash contributions
124 Resident passive income
125 Tax pooling intermediaries
126 Tax pooling accounts and their use
127 Transfers from tax pooling accounts
128 New section RP 19B inserted
RP 19B Transfers for certain expected tax liabilities
129 Refusals to transfer amounts
130 Definitions
131 No look-through rule for companies in certain cases
132 Corporate spin-outs
133 Directors' knowledge of failure to meet requirements of continuity provision
134 New section YD 3B
YD 3B Crown
135 New section YZ 3
YZ 3 Saving effect of section DF 5 of Income Tax Act 1994
136 Schedule 1—Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe benefits
137 Schedule 6—Prescribed rates: PIE investments and retirement scheme contributions
138 Schedule 32––Recipients of charitable or other public benefit gifts
139 Schedule 39—Items for purposes of definition of special excluded depreciable property
140 Minor textual amendments to Income Tax Act 2007
Part 2Amendments to Tax Administration Act 1994
141 Tax Administration Act 1994
142 Interpretation
143 Commissioner may access premises to obtain information
144 Power to remove and copy documents
145 Power to remove and retain documents for inspection
146 Information to be furnished on request of Commissioner
147 Court orders for production of information or return
148 Inquiry by Commissioner
149 Privilege for confidential communication between legal practitioners and their clients
150 No requirement to disclose tax advice document
151 Treatment of book or document
152 Claim that book or document is tax advice document
153 Book or document or part of book or document included in tax advice document
154 Person must disclose tax contextual information from tax advice document
155 Challenge to claim that book or document is tax advice document
156 Information requisitions in relation to offshore payments
157 New section 28D
28D Information required from notified foreign investors
158 Notification requirements for PIEs
159 Notification requirements for multi-rate PIEs
160 Notification of amalgamation to Commissioner
161 Effect of giving notice of entitlement
162 Officers to maintain secrecy
163 New section 81BA inserted
81BA Government agency communication
164 Other persons to maintain secrecy
165 Further secrecy requirements
166 Notices of proposed adjustment required to be issued by Commissioner
167 Section 89E repealed
168 Deemed acceptance
169 Where Commissioner accepts adjustment proposed by disputant
170 Late actions deemed to occur within response period
171 Application to High Court
172 Disclosure notices
173 Completing the disputes process
174 New section 89P
89P Challenge notice for taxpayer-initiated disputes
175 Time bar for amendment of income tax assessment
176 Time bar for amending GST assessment
177 When disputant entitled to challenge assessment
178 Certain rights of challenge not conferred
179 Effect of disclosure notice: exclusion of evidence
180 Proceedings may be transferred to different hearing authorities
181 Section 138O repealed
182 Absolute liability offences
183 Knowledge offences
184 Evasion or similar offence
185 Evidence in proceedings for failure to furnish returns or information
186 Deduction of tax from payments due to defaulters
187 Procedure in District Court where defendant absent from New Zealand
188 New section 183CB
183CB Cancellation of interest charged on payments under PAYE rules or provisional tax rules arising from work in Canterbury earthquake recovery programme
189 New section 184AA
184AA Refund of tax: deductible amounts of interest
190 New section 226C added
226C Secure credit or debit card payments and fees
Part 3Remedial matters and abolition of gift duty
Amendments to Income Tax Act 2004
191 Income Tax Act 2004
192 New section CW 1B
193 Taxes, other than GST, and penalties
194 New section DB 3B
195 New section DP 8B
DP 8B Treaty of Waitangi claim settlements: rights to take timber
196 Cost of timber
197 Disposal of petroleum mining asset to associate
198 Valuation under herd scheme
199 What is included when spreading methods used
200 IFRS method
201 Base price adjustment formula
202 Consideration when change from fair value method under IFRS method
203 Further eligibility requirements relating to investments
204 Portfolio entity tax liability and rebates of portfolio tax rate entity for period
205 Credits arising to Maori authority credit account
206 Modifications to measurement of voting and market value interests in case of continuity provisions
207 New section YA 5C
YA 5C Saving effect of section DF 5 of Income Tax Act 1994
208 Schedule 22A—Identified policy changes
Amendment to New Zealand Superannuation and Retirement Income Act 2001
209 Section 76 of New Zealand Superannuation and Retirement Income Act 2001 repealed
Amendments to KiwiSaver Act 2006
210 Section 4 of KiwiSaver Act 2006 amended
211 New section 81B of KiwiSaver Act 2006 inserted
81B Residual refunds
Amendments to Taxation Review Authorities Act 1994
212 Taxation Review Authorities Act 1994
213 General jurisdiction of Authorities
214 Section 13B repealed
215 An Authority to be a commission of inquiry
216 Evidence in proceedings before an Authority
217 Challenges appealed to High Court
Amendments to Income Tax Act 1994
218 Income Tax Act 1994
219 New section CB 17
CB 17 Treaty of Waitangi claim settlements: rights to take timber
220 Certain deductions not allowed
221 New section DB 2
DB 2 Deduction for use of money interest
222 Cost of timber
Amendments to Taxation Review Authorities Regulations 1998
223 Taxation Review Authorities Regulations 1998
224 Interpretation
225 Application of District Court Rules 1992
226 Proceedings generally
227 Form
228 Notice of defence
229 Interlocutory applications
230 Part 3 revoked
231 Requirement for directions hearings
232 Time for directions hearing
233 Schedule
Amendments to Goods and Services Tax Act 1985
234 Goods and Services Tax Act 1985
235 Interpretation
236 Meaning of term supply
237 Value of supply of goods and services
238 Zero-rating of goods
239 Adjustments when person becomes registered after acquiring goods and services
240 Treatment on disposal
241 New section 21HB
21HB Transitional rule related to treatment of dwellings
242 Group of companies
243 Keeping of records
244 Liability in relation to supplies of land
Abolition of gift duty
245 Estate and Gift Duties Act 1968
ScheduleMinor textual amendments to Income Tax Act 2007
Legislative history
The Parliament of New Zealand enacts as follows: