Taxation (International Investment and Remedial Matters) Act 2012

Part 3
Amendment to Stamp and Cheque Duties Act 1971

149 Section 86I replaced by new sections 86I and 86IB
  • Section 86I of the Stamp and Cheque Duties Act 1971 is replaced by the following:

    86I Application of approved issuer levy and zero-rating
    • For the purposes of the NRWT rules of the Income Tax Act 2007 and section 86J of this Act, and notwithstanding any provision of the NRWT rules of the Income Tax Act 2007, a payment of interest shall be treated as being paid by an approved issuer in respect of a registered security only where,—

      • (a) and to the extent that, payment is made by or on behalf of the approved issuer of approved issuer levy on the leviable value of the registered security at the time of the payment of interest—

        • (i) at the rate specified in section 86J of this Act; and

        • (ii) by the date specified in either section 86K or 86KA, or by a later date upon the payment of any interest or penalties imposed under Part 7 or 9 of the Tax Administration Act 1994 respectively; or

      • (b) the registered security meets the requirements of section 86IB and the approved issuer provides a statement to the Commissioner—

        • (i) showing the details prescribed by the Commissioner under section 86K(2) for a statement relating to payments of interest under such a registered security and provided to the Commissioner within the time given by subparagraph (ii); and

        • (ii) by the time that would be required by section 86K(1)(b) for a payment of the levy in relation to the payment of interest, or by a later date for the statement if that date is set by the Commissioner in a notice given to the approved issuer.

    86IB Zero rate of approved issuer levy—requirements for securities
    • (1) A registered security meets the requirements of this section if—

      • (a) the security is denominated in New Zealand dollars; and

      • (b) the issue of the security—

        • (i) was an offer to the public for the purposes of the Securities Act 1978; and

        • (ii) was not a private placement; and

      • (c) the security is not an asset-backed security; and

      • (d) the activities of the registrar and the paying agent for the security are carried on through a fixed establishment in New Zealand; and

      • (e) the security—

        • (i) is listed on an exchange registered under the Securities Markets Act 1988:

        • (ii) is 1 of a number of securities meeting the requirements of subsection (2) that are traded in a market bringing together buyers and sellers of such securities.

      (2) A security meets the requirements of this subsection if, at or before the time of the payment of interest referred to in section 86I in respect of the registered security,—

      • (a) the security is 1 of a number of identical debt securities (the class of securities) that are registered securities; and

      • (b) the group of persons who each hold a security included in the class of securities consists of 100 or more persons; and

      • (c) the issuer of the class of securities has reasonable grounds for expecting that each of 100 or more persons in the group—

        • (i) is not associated with the issuer except by being a beneficiary of a trust established for the main purpose of protecting and enforcing beneficiaries' rights under the class of securities; and

        • (ii) is not associated with another member of the group; and

        • (iii) is not part of an arrangement intended to temporarily increase the number of persons in the group; and

      • (d) no person or group of associated persons holds more than 10% by value of the class of securities.