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

141 New sections 54B and 54C inserted

After section 54, insert:

54B Non-residents: registration

(1)

Despite section 51(3), the Commissioner may register a person who is a non-resident and has not become liable to be registered under section 51(1) if the Commissioner is satisfied that the person meets the following requirements:

(a)

the person—

(i)

is registered for a consumption tax in the country or territory in which they are resident; or

(ii)

if the country or territory in which the person is resident does not have a consumption tax, or has a consumption tax that does not apply to the person’s activities, is carrying on a taxable activity, and has a level of taxable activity in a country or territory that would render them liable to be registered under section 51(1) if they were carrying out the taxable activity in New Zealand; and

(b)

the amount of the person’s input tax for the first taxable period after the date of registration in New Zealand is likely to be more than $500; and

(c)

the person’s taxable activity does not involve a performance of services in relation to which it is reasonably foreseeable that the performance of the services will be received in New Zealand by a person who is not a registered person; and

(d)

the person—

(i)

is not carrying on a taxable activity in New Zealand, or intending to carry on a taxable activity in New Zealand; and

(ii)

is not, and does not intend to become, a member of a group of companies that is carrying on a taxable activity in New Zealand.

(2)

If a non-resident person who is registered under this section starts making taxable supplies, or becomes a member of a group of companies that is making taxable supplies, they are treated as registered on the date specified by the Commissioner under subsection (1), and not being registered under this section from the date on which they start making taxable supplies or the date on which they join the group, as applicable.

(3)

For timing purposes, the following days are treated as the end of a taxable period:

(a)

the day on which a person ceases to be eligible to be registered under this section:

(b)

the day on which a person who is otherwise registered becomes registered under this section.

54C Non-residents: cancellation of registration

(1)

Section 52 applies to the cancellation of registration of a non-resident person registered under section 54B as modified by this section.

(2)

The Commissioner may, in addition to the powers provided under section 52(5) and (5A), cancel the person’s registration if—

(a)

the Commissioner is satisfied that the person no longer meets the requirements of section 54B(1)(a):

(b)

for 3 consecutive taxable periods, the person has either not filed a return or has filed a late return.

(3)

When a person’s registration is cancelled under subsection (2)(b),—

(a)

the effective date of the cancellation is the first day of the third period:

(b)

the person may not apply to become a registered person again until a period of 5 years has expired, starting on the date of cancellation, and this exclusion period also applies to a non-resident associate of the person.