Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013

Reprint as at 24 February 2016

Coat of Arms of New Zealand

Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013

Public Act
 
2013 No 52
Date of assent
 
17 July 2013
Commencement
 
see section 2
Note

Changes authorised by subpart 2 of Part 2 of the Legislation Act 2012 have been made in this official reprint.

Note 4 at the end of this reprint provides a list of the amendments incorporated.

This Act is administered by the Inland Revenue Department.

Contents

1Title
2Commencement
3Income Tax Act 2007
4Section CB 26 amended (Disposal of certain shares by portfolio investment entities)
5Section CB 36 amended (Disposal of emissions units)
6Section CC 1 amended (Land)
7New sections CC 1B and CC 1C inserted
CC 1BConsideration for agreement to grant, renew, extend, or transfer leasehold estate or licence
CC 1CConsideration for agreement to surrender leasehold estate or terminate licence
8New section CD 29B inserted (Issues to shareholders of rights to subscribe for or sell back shares)
CD 29BIssues to shareholders of rights to subscribe for or sell back shares
9Section CD 40 amended (Adjustment if dividend recovered by company)
10Section CD 41 amended (Adjustment if amount repaid later)
11Section CR 4 amended (Income for general insurance outstanding claims reserve)
12New section CV 18 inserted (Hedging of currency movements in Australian non-attributing shares and attributing FDR method interests)
CV 18Hedging of currency movements in Australian non-attributing shares and attributing FDR method interests
13New section CW 8B inserted (Certain amounts derived from use of assets)
CW 8BCertain amounts derived from use of assets
14Section CW 16 amended (Allowance of Governor-General and other benefits and privileges)
15Section CW 28 amended (Pensions)
16Section CW 31 replaced (Services for members of Parliament)
CW 31Services for members of Parliament
17Section CW 55BB amended (Minors’ income, to limited extent)
18New heading and section CW 65 inserted
CW 65New Zealand Railways Corporation restructure: exempt income
19Section CX 12 replaced (Services for members of Parliament)
CX 12Services for members of Parliament
20Section CX 17 amended (Benefits provided to employees who are shareholders or investors)
21Section CX 25 amended (Benefits provided by charitable organisations)
22New section CX 33B inserted (Benefits for members of Parliament)
CX 33BBenefits for members of Parliament
23New section DA 5 inserted (Treatment of expenditure for commercial fit-out)
DA 5Treatment of expenditure for commercial fit-out
24Section DB 5 amended (Transaction costs: borrowing money for use as capital)
25Section DB 7 amended (Interest: most companies need no nexus with income)
26Section DB 8 amended (Interest: money borrowed to acquire shares in group companies)
27New sections DB 20B and DB 20C inserted
DB 20BConsideration for agreement to grant, renew, extend, or transfer leasehold estate or licence
DB 20CConsideration for agreement to surrender leasehold estate or terminate licence
28Section DB 54 amended (Treatment of credits for investment fees)
29Section DB 64 amended (Capital contributions)
30New subpart DG inserted (Expenditure related to use of certain assets)
DG 1What this subpart does
DG 2Application of this subpart
DG 3Meaning of asset for this subpart
DG 4Meaning of private use for this subpart
DG 5Meaning and treatment of interest expenditure for this subpart
DG 6Associated persons: company rule modified
DG 7Expenditure related to income-earning use
DG 8Expenditure limitation rule
DG 9Apportionment formula
DG 10Interest expenditure rules
DG 11Interest expenditure: close companies
DG 12Interest expenditure: group companies
DG 13Interest expenditure: corporate shareholders
DG 14Interest expenditure: non-corporate shareholders
DG 15Quarantined expenditure rules
DG 16Quarantined expenditure when asset activity negative
DG 17Allocation of amounts quarantined under section DG 16
DG 18Quarantined expenditure: group companies and shareholders
DG 19Allocation of amounts quarantined under section DG 18
DG 20When income cannot be separately attributed
DG 21Opting out of treatment under this subpart
DG 22Application of rules to part years
31Section DO 1 amended (Enhancements to land, except trees)
32Section DO 2 amended (Erosion and shelter plantings)
33Section DO 5 amended (Expenditure on land: planting of listed horticultural plants)
34Section DO 11 amended (Improvement destroyed or made useless)
35New section DV 25 inserted (Hedging of currency movements in Australian non-attributing shares and attributing FDR method interests)
DV 25Hedging of currency movements in Australian non-attributing shares and attributing FDR method interests
36Section DW 4 amended (Deduction for general insurance outstanding claims reserve)
37New section DZ 21 inserted (Expenditure on certain assets before 31 March 2013)
DZ 21Expenditure on certain assets before 31 March 2013
38Section EA 3 amended (Prepayments)
39New sections EC 4B and EC 4C inserted
EC 4BCompulsory use of herd scheme method for associated persons
EC 4CValue and timing of transfers
40Section EC 7 amended (Valuation methods)
41Section EC 8 replaced (Restrictions arising from use of herd scheme)
EC 8Restrictions arising from use of herd scheme
42Section EC 11 amended (Restrictions on making of elections)
43Section EC 20 amended (Herd livestock disposed of before values determined)
44Section EC 21 repealed (Herd livestock on death before values determined)
45New section ED 4 inserted (Valuation of certain excepted financial arrangements denominated in foreign currency)
ED 4Valuation of certain excepted financial arrangements denominated in foreign currency
46Section EE 7 amended (What is not depreciable property?)
47Section EE 60 amended (Total deductions in section EE 56)
48New section EI 4B inserted (Consideration for agreement to grant, renew, extend, or transfer leasehold estate or licence)
EI 4BConsideration for agreement to grant, renew, extend, or transfer leasehold estate or licence
49New subpart EM inserted (Hedging of currency movements in Australian non-attributing shares and attributing FDR method interests)
EM 1Australian non-attributing shares and attributing FDR method interests
EM 2Who does this subpart apply to?
EM 3What hedges does this subpart apply to?
EM 4Irrevocable elections
EM 5Fair dividend rate hedge portions
EM 6Income and expenditure for fair dividend rate hedge portions
EM 7Quarterly test of fair dividend rate hedge portions
EM 8Some definitions
50Section EW 8 amended (Election to treat certain excepted financial arrangements as financial arrangements)
51Section EX 21 amended (Attributable CFC amount and net attributable CFC income or loss: calculation rules)
52Section EX 50 amended (Attributable FIF income method)
53Section EX 63 amended (Consequences of changes in method)
54New heading and sections EZ 64 to EZ 68 inserted
EZ 64New Zealand Railways Corporation restructure: purpose and initial amounts for tax purposes
EZ 65Expenditure or loss incurred, and amounts derived
EZ 66Prepayments
EZ 67Leased assets
EZ 68Definitions
55Section FB 15 replaced (Specified livestock valued under herd scheme)
FB 15Specified livestock valued under herd scheme
56Section FM 31 amended (Eligibility rules)
57Section FN 4 amended (Eligibility rules)
58Section GB 24 amended (Exemption for genuine contracts)
59Section GC 5 amended (Leases for inadequate rent)
60Section HA 33 amended (Revocation of shareholders’ elections: by event)
61Section HG 2 amended (Partnerships are transparent)
62Section HG 3 amended (General provisions relating to disposals)
63Section HM 12 amended (Income types)
64Section HM 19C amended (Modified rules for foreign investment variable-rate PIEs)
65Section HM 37 amended (When income cannot be attributed)
66Section HM 60 amended (Notified investor rates)
67New section IQ 2C inserted (Effect of FIF net loss if attributed FIF income method not available)
IQ 2CEffect of FIF net loss if attributed FIF income method not available
68Section LA 6 amended (Remaining refundable credits: PAYE, RWT, and certain other items)
69Section LH 17 amended (Some definitions)
70Section LK 1 amended (Tax credits relating to attributed CFC income)
71Section LP 2 amended (Tax credits for supplementary dividends)
72Section LP 5 amended (Application of benchmark dividend rules and imputation credit ratio)
73Section LP 8 amended (Relationship with exempt income rules)
74Sections LZ 2 to LZ 5 repealed
75Section MB 1 amended (Adjustments for calculation of family scheme income)
76New section MB 7B inserted (Family scheme income from employment benefits: employees not controlling shareholders)
MB 7BFamily scheme income from employment benefits: employees not controlling shareholders
77Section MB 8 amended (Family scheme income from fringe benefits)
78Section MD 16 amended (Calculation of parental tax credit abatement)
79Section ME 3 amended (Meaning of net family scheme income)
80Section OB 71 amended (Imputation additional tax on leaving wholly-owned group)
81Section OB 72 amended (Imputation additional tax on joining wholly-owned group)
82Section OB 72B amended (Limit on using entitlement to refund after joining wholly-owned group)
83Section OP 6 amended (Provisions applying to consolidated imputation groups)
84Section RD 39 amended (Benefits provided by charitable organisations)
85Section RD 54 amended (Value of and payments towards fringe benefits)
86Section RD 60 amended (Close company option)
87Section RM 2 amended (Refunds for overpaid tax)
88Section RM 4 amended (Overpayment on amended assessment)
89Section RM 6 repealed (Refunds after 4-year period ends)
90Section RM 10 amended (Using refund to satisfy tax liability)
91Section RM 13 amended (Limits on refunds for ICA companies)
92Section RM 17 amended (Treatment of further income tax paid)
93Section RM 22 amended (Limits on refunds for Maori authorities)
94Section RM 23 amended (Limits on refunds when Maori authority stops being Maori authority)
95Section RM 26 amended (Treatment of further income tax paid)
96Section RM 28 amended (Limits on refunds for PCA persons)
97Section RM 33 amended (Limits on refunds for certain unit trusts and group investment funds)
98Section YA 1 amended (Definitions)
99Section YB 11 amended (Trustee and person with power of appointment or removal)
100Section YB 14 amended (Tripartite relationship)
101New section YC 18C inserted (Railways restructure not affecting Crown economic ownership)
YC 18CRailways restructure not affecting Crown economic ownership
102Schedule 3 amended (Payment of provisional tax and terminal tax)
103Schedule 17 amended (Types and classes of livestock)
104Schedule 20 amended (Expenditure on farming, horticultural, aquacultural, and forestry improvements)
105Schedule 32 amended (Recipients of charitable or other public benefit gifts)
106Tax Administration Act 1994
107Section 2 amended (Purpose of Act)
108Section 16 amended (Commissioner may access premises to obtain information)
109Section 16C amended (Power to remove and retain documents for inspection)
110New section 30D inserted (Statements to shareholders when certain assets held by companies)
30DStatements to shareholders when certain assets held by companies
111Section 31C amended (Notification requirements for multi-rate PIEs)
112Section 41A amended (Returns by persons with tax credits for charitable or other public benefit gifts)
113Section 91C amended (Taxation laws in respect of which binding rulings may be made)
114Section 120C amended (Definitions)
115Section 125 amended (Certain rights of objection not conferred)
116Section 138E amended (Certain rights of challenge not conferred)
117Section 140C repealed (Transitional imputation penalty tax payable in some circumstances)
118Section 184 amended (Refund of tax paid on income subsequently exempted by Order in Council)
119Goods and Services Tax Act 1985
120Section 2 amended (Interpretation)
121Section 5 amended (Meaning of term supply)
122Section 9 amended (Time of supply)
123Section 10 amended (Value of supply of goods and services)
124Section 10 amended (Value of supply of goods and services)
125Section 11 amended (Zero-rating of goods)
126Section 19 amended (Accounting basis)
127Section 19A amended (Requirements for accounting on payments basis)
128Section 19AB repealed (Local authorities accounting on payments basis on and after 1 July 2001)
129Section 19C amended (Tax payable, or refund, where change in accounting basis)
130Section 20 amended (Calculation of tax payable)
131New section 20G inserted (Treatment of supplies of certain assets)
20GTreatment of supplies of certain assets
132Section 21B amended (Adjustments when person or partnership becomes registered after acquiring goods and services)
133Section 21D amended (Calculating amount of adjustment)
134Section 21G amended (Definitions and requirements for apportioned supplies and adjustment periods)
135Section 26 amended (Bad debts)
136Section 46 amended (Commissioner’s right to withhold payments)
137Section 51 amended (Persons making supplies in course of taxable activity to be registered)
138Section 51B amended (Persons treated as registered)
139Section 53 amended (Registered person to notify change of status)
140Section 52 amended (Cancellation of registration)
141New sections 54B and 54C inserted
54BNon-residents: registration
54CNon-residents: cancellation of registration
142Section 55 amended (Group of companies)
143Section 60 amended (Agents and auctioneers)
144Section 75 amended (Keeping of records)
145New section 78G inserted (Railways vesting: zero-rating and timing of tax calculations and documents)
78GRailways vesting: zero-rating and timing of tax calculations and documents
146New section 87 inserted (Change of accounting basis: transitional provision for certain local authorities)
87Change of accounting basis: transitional provision for certain local authorities
147Section 4 amended (Interpretation)
148Section 202 amended (Provisions of Tax Administration Act 1994 and Income Tax Act 2007 to apply to this Act)
149Section 86I amended (Application of approved issuer levy and zero-rating)
150Section 86L amended (Refund of levy paid in error or in excess)
151Income Tax Act 2004
152New section CD 21BA inserted (Issues to shareholders of rights to subscribe for or sell back shares)
CD 21BAIssues to shareholders of rights to subscribe for or sell back shares
153Section CR 3 amended (Income for general insurance outstanding claims reserve)
154Section CW 25 replaced (Services for members of Parliament)
CW 25Services for members of Parliament
155Section CX 11 replaced (Services for members of Parliament)
CX 11Services for members of Parliament
156Section DW 3 amended (Deduction for general insurance outstanding claims reserve)
157Section EC 7 amended (Valuation methods)
158Section EE 7 amended (What is not depreciable property?)
159Section EE 51 amended (Total deductions in section EE 47)
160Section OB 1 amended (Definitions)
161Section 70 amended (Rate of benefits if overseas pension payable)
162Non-resident investment companies Orders in Council revoked
163Tax Administration (Form of Warrant) Regulations 2003 revoked
164Schedule amended (Powers in other enactments to which all or part of Part 4 of Search and Surveillance Act 2012 applies)
165Child Support Amendment Act 2013
166Section 5 amended (Interpretation)
167Section 8 amended (New section 4A inserted)
168Section 10 amended (New headings and sections 7B to 19 substituted)
169Section 12 amended (New headings and sections 29 to 36D substituted)
170New heading and section 22A inserted
22AApplication for determination
171Schedule 3 amended (Consequential amendments to principal Act)
172Deletion of redundant LAQC legislation
Reprint notes

The Parliament of New Zealand enacts as follows: