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

130 Section 20 amended (Calculation of tax payable)

(1)

After section 20(3)(h), insert:

(hb)

an amount calculated in accordance with section 20G in relation to the supply of an asset during the taxable period:

(2)

In section 20(3C), replace “subsection (3D) does” with “subsections (3D) or (3L) do”.

(3)

In section 20(3J)(b), replace “sections 21 to 21H” with “sections 20G and 21 to 21H”.

(4)

After section 20(3J), insert:

(3JB)

For a supply to which section 20G applies, the recipient must,—

(a)

on acquisition,—

(i)

identify the nominal amount of tax that would be chargeable on the value of the supply, as if the value were equal to the consideration charged for the supply, at the rate set out in section 8(1):

(ii)

determine the extent to which they intend to use the goods, as described in subsection (3G); and

(iii)

account for input tax for the amount calculated under subsections (3G) and (3H); and

(b)

make adjustments under section 20G(4) and (5) in relation to the taxable supply referred to in paragraph (a).

(5)

In section 20(3K), replace “a non-profit body” with “a non-profit body that is resident in New Zealand”.

(6)

After section 20(3K), insert:

(3L)

For the purposes of subsection (3), for a non-resident person who is registered under section 54B, input tax may be deducted only to the extent to which the goods or services are used for, or are available for use in, making taxable supplies, treating all the supplies made by the person as if they were made and received in New Zealand.

(3M)

Despite subsection (3L), a non-resident person who is registered under section 54B and who principally makes supplies of financial services may, for the purposes of calculating the amount of input tax, choose to use a fair and reasonable method of apportionment agreed with the Commissioner, as set out in subsection (3E).

(7)

Subsections (1), (3), and (4) apply in relation to supplies of goods other than land or improvements to land made on or after 1 April 2014. For supplies of land or improvements to land, subsections (1), (3), and (4) apply from the date on which this Act receives the Royal assent.