Taxation (International Investment and Remedial Matters) Act 2012

Taxation (International Investment and Remedial Matters) Act 2012

Public Act2012 No 34
Date of assent7 May 2012
Commencementsee section 2


1 Title

2 Commencement

Part 1
Amendments to Income Tax Act 2007

3 Income Tax Act 2007

4 Elections to make bonus issue into dividend

5 Foreign investment fund income

6 Prevention of double taxation of share cancellation dividends

7 When attributed CFC income arises

8 When FIF income arises

9 Dividend derived from foreign company

10 Section CW 11 repealed

11 Dividends derived by qualifying companies

12 When attributed CFC loss arises

13 Ring-fencing cap on deduction

14 Foreign investment fund loss

15 When FIF loss arises

16 Ring-fencing cap on deduction: branch equivalent method

17 Section DX 3 repealed

18 Section EX 14 replaced

19 Attributable CFC amount

20 Net attributable CFC income or loss

21 Adjustment of fraction for excessively debt funded CFC

22 Relative debt-asset ratio for CFC

23 Attributable CFC amount and net attributable CFC income or loss: calculation rules

24 Non-attributing active CFCs

25 Applicable accounting standards for section EX 21E

26 Non-attributing active CFC: default test

27 Non-attributing active CFC: test based on accounting standard

28 CFC rules exemption

29 Section EX 35 replaced

30 New resident's accrued superannuation entitlement exemption

31 Six calculation methods

32 Limits on choice of calculation methods

33 Default calculation method

34 Section EX 49 repealed

35 Branch equivalent method

36 Comparative value method

37 Fair dividend rate method: usual method

38 Fair dividend rate method for unit-valuing funds and others by choice

39 Additional FIF income or loss if CFC owns FIF

40 Codes: comparative value method, deemed rate of return method, fair dividend rate method, and cost method

41 Limits on changes of method

42 Consequences of changes in method

43 Migration of persons holding FIF interests

44 Changes in application of FIF exemptions

45 Entities emigrating from New Zealand

46 Entities ceasing to be FIFs

47 New section EX 67B inserted

48 Change of FIF's balance date

49 Commissioner's default assessment power

50 What this subpart does

51 When this subpart applies

52 Interest apportionment for individuals

53 Thresholds for application of interest apportionment rules

54 New section FE 6B inserted

55 New section FE 12B inserted

56 Financial arrangements entered into with persons outside group

57 Consolidation of debts and assets

58 Total group assets

59 Banking group's New Zealand net equity

60 Identifying New Zealand parent

61 Identifying members of New Zealand group

62 Ownership interests in companies outside New Zealand group

63 CFCs in worldwide group for natural persons or trustees described in section FE 2(1)(g)

64 Identifying members of New Zealand banking group

65 New section FE 36B inserted

66 Some general rules for treatment of consolidated groups

67 Eligibility rules

68 Resident's restricted amalgamations

69 FIF income or loss: arrangements for measurement day concessions

70 Section GB 40 repealed

71 Arrangements involving cancellation of conduit tax relief credits

72 Section GZ 2 repealed

73 No CFC income interests or FIF direct income interests of 10% or more

74 Dividends derived by qualifying companies

75 Foreign-sourced amounts: non-resident trustees

76 Partnerships are transparent

77 Effect of attributed CFC net loss and FIF net loss from before first affected year

78 When attributed CFC net loss becomes FIF net loss

79 Credits from tax year before first affected year

80 Section LQ 5 repealed

81 Memorandum accounts

82 Credits

83 Debits

84 Opening balances of memorandum accounts

85 Shareholder continuity requirements for memorandum accounts

86 General treatment of credits and debits on resident's restricted amalgamation

87 When credits or debits due to amalgamating company but not recorded

88 Continuity of shareholding when group companies amalgamate

89 When credits or debits due to consolidated group but not recorded

90 Calculation of maximum permitted ratios

91 General rules for companies with imputation credit accounts

92 ICA payment of tax

93 ICA credit on resident's restricted amalgamation

94 ICA debit on resident's restricted amalgamation

95 FDPA refund of FDP

96 FDPA transfer to imputation credit account

97 Section OC 19 repealed

98 FDP credits attached to dividends

99 Subpart OD repealed

100 General rules for companies and other persons with branch equivalent tax accounts

101 Headings and sections OE 2 to OE 4 repealed

102 Treatment of attributed CFC income and FIF income in this subpart

103 Section OE 5 replaced

104 BETA payment of income tax on foreign income

105 Heading and section OE 6 repealed

106 BETA payment of income tax

107 Section OE 7 repealed

108 BETA refund of FDP

109 Sections OE 9 to OE 16B repealed

110 Table O7 repealed

111 Section OP 70 repealed

112 Headings and sections OP 78 to OP 80 repealed

113 Heading and sections OP 83 to OP 87 repealed

114 Sections OP 89 to OP 94 repealed

115 Heading, section OP 96, and tables O23 and O24 repealed

116 Headings and sections OP 97 and OP 98 repealed

117 Consolidated BETA payment of income tax on foreign income

118 Heading and section OP 100 repealed

119 Consolidated BETA payment of income tax

120 Section OP 101 repealed

121 Consolidated BETA refund of FDP

122 Sections OP 103 to OP 104B repealed

123 Heading and section OP 108B repealed

124 Table O25 repealed

125 Section OZ 16 repealed

126 Section OZ 17 repealed

127 Resident passive income

128 Certain dividends

129 When dividends fully imputed or fully credited

130 Non-cash dividends

131 Interest paid by approved issuers or transitional residents

132 Definitions

133 Demutualisation of insurers

134 Corporate reorganisations not affecting economic ownership

135 Residence of CTR company shareholders

136 Heading and sections YD 9 to YD 11 repealed

137 Schedule 25—Foreign investment funds

138 Schedule 31—Annualised equivalent amount for Part M

Part 2
Amendments to Tax Administration Act 1994

139 Tax Administration Act 1994

140 Keeping of business and other records

141 Shareholder dividend statement to be provided by company

142 Section 30A repealed

143 New section 65B inserted

144 Section 68A repealed

145 Annual ICA return

146 Section 77 repealed

147 Determination on insurer as non-attributing active CFC

148 Remission for GST transitional taxable periods

Part 3
Amendment to Stamp and Cheque Duties Act 1971

149 Section 86I replaced by new sections 86I and 86IB

Legislative history

The Parliament of New Zealand enacts as follows: