Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012

Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012

Public Act2012 No 88
Date of assent2 November 2012
Commencementsee section 2

Contents

1 Title

2 Commencement

Part 1
Annual rates of income tax

3 Annual rates of income tax for 2012–13 tax year

Part 2
Amendments to Income Tax Act 2007

4 Income Tax Act 2007

5 Films

6 Bonus issues in lieu of dividend

7 New section CD 7B

8 Elections to make bonus issue into dividend

9 New section CD 23B

10 Available subscribed capital (ASC) amount

11 Meaning of expenditure on account of an employee

12 Section CG 4 replaced

13 Receipts from insurance, indemnity, or compensation for interruption or impairment of business activities

14 Section CV 17 repealed

15 Dividends paid by qualifying companies

16 Expenditure on account, and reimbursement, of employees

17 Proceeds from disposal of investment shares

18 Section CZ 23 repealed

19 New section CZ 25

20 New section CZ 26

21 New heading and section DB 40B inserted

22 Expenditure incurred by foreign investment PIEs

23 Some definitions

24 Ring-fenced cap on deduction

25 Ring-fencing cap on deduction: attributable FIF income method

26 Non-resident general insurers, shippers, and film renters

27 Deduction for general insurance outstanding claims reserve

28 Section DZ 19 repealed

29 New section DZ 20 inserted

30 Application of subpart

31 Valuation of excepted financial arrangements

32 Valuation of emissions units issued for zero price

33 New section ED 3

34 What this subpart does

35 Cases affecting pool

36 Consideration for purposes of section EE 44

37 Total deductions in section EE 56

38 Use of money interest payable by person

39 Spreading forward of deductions for repairs to fishing boats

40 Scheme for finding person's attributed CFC income or loss

41 Attributable CFC amount

42 Net attributable CFC income or loss

43 Adjustment of fraction for excessively debt funded CFC

44 Non-attributing active CFCs

45 Exemption for ASX-listed Australian companies

46 Exemption for interest in FIF resident in Australia

47 Section EX 39 repealed

48 Attributable FIF income method

49 Additional FIF income or loss if CFC owns FIF

50 Limits on changes of method

51 Measurement of cost

52 New heading and new section EX 73

53 Part-year tax calculations

54 Shareholder base other profit: profit participation policies that are existing business

55 Transitional adjustments: life risk

56 Property acquired after depreciable property affected by Canterbury earthquakes

57 New section EZ 23C

58 New section EZ 23D

59 New section EZ 23E inserted

60 New section EZ 23F inserted

61 New section EZ 23G inserted

62 Section EZ 32 repealed

63 Section EZ 32C repealed

64 New section EZ 32D

65 New section EZ 32E

66 Disposal and acquisition upon entry

67 Transfer at market value

68 Alternative apportionment of interest by some excess debt entities

69 Measurement dates

70 Banking group's equity threshold

71 Some general rules for treatment of consolidated groups

72 Transactions between group companies: income

73 New heading and section FZ 7

74 Benefits provided to employee's associates

75 Grandparenting requirement

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

77 Measuring effective interests

78 Look-through companies are transparent

79 Disposal of financial arrangements and certain excepted financial arrangements

80 Limitation on deductions by persons with interests in look-through companies

81 LTC elections

82 Taxable distributions from foreign trusts

83 Trustees' obligations

84 Foreign-sourced amounts: non-resident trustees

85 Limitation on deductions by partners in limited partnerships

86 Portfolio entity tax liability and tax credits of portfolio tax rate entity for period

87 Foreign PIE equivalents

88 What is an investor class?

89 Section HM 6B replaced

90 Investment types

91 Income sources

92 Minimum number of investors

93 Same rights to all investment proceeds

94 Modified rules for foreign investment variable-rate PIEs

95 Ending of New Zealand residence

96 When foreign PIE equivalent no longer meets requirements

97 Rules for and treatment of investors in multi-rate PIEs

98 Attribution periods

99 Determining net amounts and taxable amounts

100 Treatment of certain provisions made by multi-rate PIEs

101 Determining amounts for notified foreign investors

102 Quarterly calculation option

103 NRWT calculation option

104 Attributing credits to investors

105 Use of foreign tax credits by PIEs

106 Use of tax credits other than foreign tax credits by PIEs

107 New section HM 55FB inserted

108 Prescribed investor rates for certain investors: 0%

109 Use of investor classes' losses

110 Use of land losses of investor classes

111 Qualifying companies: transition into partnership

112 Qualifying companies: transition into look-through companies

113 Restrictions relating to schedular income

114 Ring-fencing cap on attributed CFC net losses

115 Meaning of charitable or other public benefit gift

116 Credits for persons who are non-resident or who receive exempt income

117 Repaid foreign tax: effect on income tax liability

118 Tax credits for supplementary dividends

119 Section LZ 1 repealed

120 Meaning of full-time earner for family scheme

121 Adjustments for calculation of family scheme income

122 Treatment of distributions from superannuation schemes

123 Family scheme income from other payments

124 Third requirement: residence

125 Third requirement: residence

126 Fifth requirement: full-time earner

127 Calculation of in-work tax credit

128 General rules for companies with imputation credit accounts

129 ICA payment of tax

130 ICA payment of schedular income tax

131 Payment of further income tax for closing debit balance

132 Payment of further income tax when company no longer New Zealand resident

133 Table O4: FDP debits

134 BETA payment of income tax

135 Consolidated ICA payment of schedular income tax

136 Consolidated BETA payment of income tax

137 Who is required to pay provisional tax?

138 Alternate rate option

139 ESCT rules and their application

140 Employer's superannuation cash contributions

141 Calculating amounts of tax for employer's superannuation cash contributions

142 Section RD 67 replaced

143 Choosing different rates for employer's superannuation cash contributions

144 Calculating amounts of tax on failure to withhold

145 Amounts of tax treated as paid to and received by superannuation funds

146 Resident passive income

147 Non-cash dividends other than bonus issues in lieu

148 Bonus issues in lieu

149 Non-resident passive income

150 Certain dividends

151 Non-cash dividends

152 Section RF 11B replaced

153 Using refund to satisfy tax liability

154 Definitions

155 When sections YC 8 to YC 19 apply

156 Reverse takeovers

157 Corporate reorganisations not affecting economic ownership

158 New section YC 19B

159 Apportionment of income from sea transport

160 Section YD 7 repealed

161 Apportionment of premiums derived by non-resident general insurers

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

163 Schedule 6—Prescribed rates: PIE investments and retirement scheme contributions

164 Schedule 19—Expenditure in avoiding, remedying, or mitigating detrimental effects of discharge of contaminant

165 Schedule 26 repealed

166 Schedule 28—Requirements for complying fund rules

167 Schedule 29—Portfolio investment entities: listed investors

168 Schedule 32—Recipients of charitable or other public benefit gifts

Part 3
Amendments to Tax Administration Act 1994

169 Tax Administration Act 1994

170 Interpretation

171 Keeping of business and other records

172 Keeping of returns where information transmitted electronically

173 RWT withholding certificates

174 Shareholder dividend statement to be provided by company

175 Maori authority to give notice of amounts distributed

176 Returns of income

177 New section 33AA inserted

178 Annual returns of income not required

179 Section 33A repealed

180 Return not required for certain providers of personal services

181 New section 33D inserted

182 Commissioner may approve furnishing of return information by electronic means

183 Returns to annual balance date

184 Annual returns by persons who receive family assistance credit

185 Income tax returns and assessments by executors or administrators

186 ESCT statements provided by employers

187 RWT withholding reconciliation statements

188 Return requirements for multi-rate PIEs

189 Application

190 Notification required that taxpayer not subject to this Part

191 Requests for income statements

192 Commissioner must issue income statement

193 Taxpayer obligations and assessment on receipt of income statement

194 Determination on insurer as non-attributing active CFC

195 Commissioner to make private rulings on request

196 Disclosure requirements

197 Taxpayer assessment of income tax

198 Section 92AA repealed

199 Assessment of ESCT

200 Persons excluded

201 Late payment penalty

202 Knowledge offences

203 Taxpayer may apply for financial relief

204 Write-off of tax by Commissioner

205 Secure credit or debit card payment and fees

Part 4
Amendments to Goods and Services Tax Act 1985

206 Goods and Services Tax Act 1985

207 Interpretation

208 Meaning of input tax

209 Meaning of term supply

210 Imposition of goods and services tax on supply

211 Time of supply

212 Zero-rating of goods

213 Accounting basis

214 Calculation of tax payable

215 Goods and services tax incurred relating to determination of liability to tax

216 Adjustments for apportioned supplies

217 When adjustments required

218 Adjustments when person becomes registered after acquiring goods and services

219 Concurrent uses of land

220 Definitions and requirements for apportioned supplies and adjustment periods

221 Transitional accounting rules

222 Tax invoices

223 Group of companies

224 Nominated recipients of supplies

225 Keeping of records

226 Liability in relation to supplies of land

Part 5
Amendments to other Acts and regulations

Amendments to KiwiSaver Act 2006

227 KiwiSaver Act 2006

228 Interpretation

229 Employees giving information to employers

230 When subpart does not apply

231 Contribution rate

232 Treatment of unremitted deductions in holding account

233 How and when interest is paid on on-payments

234 Compulsory employer contribution amount: general rule

235 New section 112B inserted

236 Crown contribution

237 New section 238

238 Schedule 1—KiwiSaver scheme rules

Amendment to Child Support Act 1991

239 Notification requirements of liable parent

Amendments to Income Tax Act 2004

240 Income Tax Act 2004

241 Meaning of expenditure on account of an employee

242 Expenditure on account, and reimbursement, of employees

243 New heading and section DB 31B inserted

244 Some definitions

245 Application of this subpart

246 Use of money interest payable by person

247 Spreading forward of deductions for repairs to fishing boats

248 Portfolio entity tax liability and rebates of portfolio tax rate entity for period

249 Definitions

Amendments to Income Tax Act 1994

250 Income Tax Act 1994

251 Certain repairs to fishing boats

Amendments to Taxation (Tax Administration and Remedial Matters) Act 2011

252 Taxation (Tax Administration and Remedial Matters) Act 2011

253 New section DZ 19

254 Net attributable CFC income or loss

255 New section EZ 32C

Amendments to Income Tax (Depreciation Determinations) Regulations 1993

256 Income Tax (Depreciation Determinations) Regulations 1993

257 Fees

258 Payment of fees

259 Regulation 11 replaced

260 Regulation 12 revoked

Amendments to Income Tax (Determinations) Regulations 1987

261 Income Tax (Determinations) Regulations 1987

262 Publication of determinations

263 Regulation 13 replaced

Amendments to Tax Administration (Binding Rulings) Regulations 1999

264 Tax Administration (Binding Rulings) Regulations 1999

265 Fees

266 Regulation 7 revoked

Amendments to Tax Administration (Form of Warrant) Regulations 2003

267 Tax Administration (Form of Warrant) Regulations 2003

268 Schedule 2—Form of warrant

Income Tax (Refund of Excess Tax) Order 2003

269 Income Tax (Refund of Excess Tax) Order 2003 revoked

Legislative history


The Parliament of New Zealand enacts as follows: