Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014

Reprint as at 24 February 2016

Coat of Arms of New Zealand

Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014

Public Act
 
2014 No 39
Date of assent
 
30 June 2014
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
3Annual rates of income tax for 2014–15 tax year
4Income Tax Act 2007 amended
5Section BB 3 amended (Overriding effect of certain matters)
6Section BH 1 amended (Double tax agreements)
7New section CB 15B inserted (When land acquired)
CB 15BWhen land acquired
8Section CB 26 amended (Disposal of certain shares by portfolio investment entities)
9Section CC 1 amended (Land)
10Section CC 1B replaced (Consideration for agreement to grant, renew, extend, or transfer leasehold estate or licence)
CC 1BConsideration relating to grant, renewal, extension, or transfer of leasehold estate or licence
11Section CC 1C amended (Consideration for agreement to surrender leasehold estate or terminate licence)
12Section CD 32 amended (Employee benefits)
13Section CD 40 amended (Adjustment if dividend recovered by company)
14Section CE 1 amended (Amounts derived in connection with employment)
15New sections CE 1B to CE 1E inserted
CE 1BGeneral rule: accommodation provided by employers
CE 1CException: overseas accommodation
CE 1DException: accommodation provided by Defence Force
CE 1EException: accommodation provided to ministers of religion
16Section CE 5 amended (Meaning of expenditure on account of an employee)
17Section CG 2 amended (Remitted amounts)
18New sections CG 2B to CG 2E inserted
CG 2BRemitted amounts on discharge from bankruptcy
CG 2CRemitted and other amounts: companies in liquidation
CG 2DRemitted and other amounts: companies leaving groups
CG 2ERemitted and other amounts: income apportionment
19New section CG 7B inserted (Disposals or applications after earlier deductions)
CG 7BDisposals or applications after earlier deductions
20Section CT 1 amended (Disposal of exploratory material or petroleum mining asset)
21Section CT 7 amended (Meaning of petroleum mining asset)
22New section CV 17 inserted (Non-exempt charities: taxation of tax-exempt accumulation)
CV 17Non-exempt charities: taxation of tax-exempt accumulation
23Section CV 19 amended (Additional income for certain imputation credits)
24New sections CW 16B to CW 16F inserted
CW 16BAccommodation expenditure: out-of-town secondments and projects
CW 16CTime periods for certain accommodation expenditure
CW 16DAccommodation expenditure: conferences and overnight stays
CW 16EAccommodation expenditure: new employees
CW 16FAccommodation expenditure: multiple workplaces
25Section CW 17 amended (Expenditure on account, and reimbursement, of employees)
26New section CW 17CB inserted (Payments for certain work-related meals)
CW 17CBPayments for certain work-related meals
27New section CW 17CC inserted (Payments for distinctive work clothing)
CW 17CCPayments for distinctive work clothing
28Section CW 38 amended (Public authorities)
29Section CW 39 amended (Local authorities)
30Section CW 41 amended (Charities: non-business income)
31Section CW 42 amended (Charities: business income)
32New section CW 42B inserted (Community housing trusts and companies)
CW 42BCommunity housing trusts and companies
33Section CW 46 amended (Bodies promoting amateur games and sports)
34Section CW 57 amended (Non-resident company involved in exploration and development activities)
35Section CX 19 amended (Benefits provided instead of allowances)
36Section CZ 23 amended (Employee benefits for Canterbury earthquake relief: exempt income)
37New section CZ 29 inserted (Accommodation expenditure: Canterbury earthquake relief)
CZ 29Accommodation expenditure: Canterbury earthquake relief
38New section CZ 30 inserted (Transitional provision: application of certain accommodation provisions)
CZ 30Transitional provision: application of certain accommodation provisions
39New section CZ 31 inserted (Accommodation expenditure: New Zealand Defence Force)
CZ 31Accommodation expenditure: New Zealand Defence Force
40New section CZ 32 inserted (Treatment of certain petroleum storage facilities)
CZ 32Treatment of certain petroleum storage facilities
41Section DB 1 amended (Taxes, other than GST, and penalties)
42Section DB 10 amended (Interest or expenditure connected to profit-related or substituting debentures)
43Section DB 19 amended (Expenses of failed or withdrawn application for resource consent)
44Section DB 20B amended (Consideration for agreement to grant, renew, extend, or transfer leasehold estate or licence)
45Section DB 20C amended (Consideration for agreement to surrender leasehold estate or terminate licence)
46Section DB 25 amended (Cancellation of shares held as revenue account property)
47Section DB 37 amended (Expenses of failed or withdrawn patent application)
48New section DB 40BA inserted (Expenses in application for plant variety rights)
DB 40BAExpenses in application for plant variety rights
49Section DB 55 amended and repealed (Expenditure incurred in deriving exempt income)
50New heading and sections DB 63 to DB 63C inserted
DB 63Expenses in paying dividends
DB 63BPeriodic company registration fees
DB 63CMeetings of shareholders
51Section DD 4 amended (Employment-related activities)
52Section DD 10 amended (Interpretation: reimbursement and apportionment)
53Section DG 6 amended (Associated persons: company rule modified)
54Section DG 9 amended (Apportionment formula)
55Section DG 11 amended (Interest expenditure: close companies)
56Section DG 16 amended (Quarantined expenditure when asset activity negative)
57Section DG 17 amended (Allocation of amounts quarantined under section DG 16)
58Section DZ 21 amended (Expenditure on certain assets before 31 March 2013)
59Amendments to examples in subparts DG and DZ
60Section DO 5 amended (Expenditure on land: planting of listed horticultural plants)
61Section DP 8 amended (Forestry business on land bought from the Crown, Maori owners, or holding company: no deduction)
62Section DU 1 amended (Mining expenditure: prospecting and exploration expenditure)
63Section DU 11 amended (Meaning of mining development expenditure: exclusion of operational expenditure)
64Section EA 3 amended (Prepayments)
65Section EE 7 amended (What is not depreciable property?)
66Section EE 25 amended (Depreciation loss for plant variety rights application granted in 2005–06 or later income year)
67Section EE 57 amended (Base value in section EE 56 when none of sections EE 58, EE 59, and EZ 22(1) applies)
68Section EE 67 amended (Other definitions)
69Section EG 1 amended (Election to use balance date used in foreign country)
70Section EI 4B amended (Consideration for agreement to grant, renew, extend, or transfer leasehold estate or licence)
71Section EI 7 amended (Leases: income derived in anticipation)
72Section EI 8 amended (Disposal of land to the Crown)
73Section EJ 20D amended (Measurement of assumed life of mine and application to rate)
74Section EJ 20E amended (Certain mining expenditure spread on the basis of units of production)
75Section EW 8 amended (Some short-term agreements for sale and purchase acquired in business: election to treat as financial arrangements)
76Section EW 15D amended (IFRS financial reporting method)
77Section EW 15F amended (Expected value method)
78Section EW 15G amended (Modified fair value method)
79Section EW 15H amended (Mandatory use of some determinations)
80Section EW 15I amended (Mandatory use of yield to maturity method for some arrangements)
81Section EW 32 amended (Consideration for agreement for sale and purchase of property or services, hire purchase agreement, specified option, or finance lease)
82New sections EW 33B and EW 33C inserted
EW 33BForeign ASAPs: designated FX hedges
EW 33CConsideration in foreign currency: some agreements for sale and purchase
83Section EW 35 amended (Value relevant for non-financial arrangements rule)
84Section EX 5 amended (Direct control interests)
85Section EX 9 amended (Direct income interests)
86Section EX 20B amended (Attributable CFC amount)
87Section EX 20C amended (Net attributable CFC income or loss)
88Section EX 20D amended (Adjustment of cost fraction for excessively debt funded CFC)
89Section EX 21B amended (Non-attributing active CFCs)
90Section EX 21D amended (Non-attributing active CFC: default test)
91Section EX 21E amended (Non-attributing active CFC: test based on accounting standard)
92Section EX 22 amended (Non-attributing Australian CFCs)
93Section EX 35 amended (Exemption for interest in FIF resident in Australia)
94Section EX 46 amended (Limits on choice of calculation methods)
95Section EX 50 amended (Attributable FIF income method)
96Section EX 51 amended (Comparative value method)
97Section EX 58 amended (Additional FIF income or loss if CFC owns FIF)
98Section EZ 23B amended (Property acquired after depreciable property affected by Canterbury earthquakes)
99Section EZ 32D amended (Value of asset fraction: CFC with excessive debt funding and loan entered before 21 June 2012)
100New sections EZ 75 and EZ 76 inserted
EZ 75Consideration for property or services: IFRS foreign ASAPs before 2014–15 income year
EZ 76Consideration for property or services: non-IFRS foreign ASAPs before 2014–15 income year
101New section EZ 77 inserted (Substituting debentures repeal: transitional rules)
EZ 77Substituting debentures repeal: transitional rules
102Section FA 2 amended (Recharacterisation of certain debentures)
103Section FB 15 amended (Specified livestock valued under herd scheme)
104Section FC 5 amended (Land transferred to close relatives)
105Section FE 1 amended (What this subpart does)
106Section FE 2 amended (When this subpart applies)
107Section FE 3 amended (Interest apportionment for individuals)
108Section FE 4 amended (Some definitions)
109Section FE 13 amended (Financial arrangements entered into with persons outside group)
110Section FE 14 amended (Consolidation of debts and assets)
111Section FE 16 amended (Total group assets)
112Section FE 18 amended (Measurement of debts and assets of worldwide group)
113Section FE 25 amended (New Zealand group for excess debt entity that is a company)
114Section FE 26 amended (Identifying New Zealand parent)
115New section FE 31D inserted (Worldwide group for entity with New Zealand parent depending on non-resident owning body)
FE 31DWorldwide group for entity with New Zealand parent depending on non-resident owning body
116New defined term inserted in lists for some sections in subpart FE
117Section FM 5 amended (Liability when company leaves consolidated group)
118Section FO 5 amended (Amalgamations and remitted liabilities)
119Section GB 34 amended (ICA arrangements for carrying amounts forward)
120New heading and new section GB 51 inserted
GB 51Proportionality between amount of debt and ownership interests
121Section HA 31 amended (Revocation of directors’ elections)
122Section HC 27 amended (Who is a settlor?)
123Section HC 30 amended (Treatment of foreign trusts when settlor becomes resident)
124Section HC 31 amended (When existing trusts come into tax base)
125Section HD 14 amended (Companies issuing debentures)
126Section HF 11 amended (Choosing to become Maori Authority)
127Section HM 1 amended (Outline of subpart and relationship with other Parts)
128New heading and section HR 11 inserted
HR 11Non-exempt charities: initial tax base
129New section HR 12 inserted (Non-exempt charities: taxation of tax-exempt accumulation)
HR 12Non-exempt charities: taxation of tax-exempt accumulation
130Section IW 1 amended (Shortfall penalties)
131Section LD 3 amended (Meaning of charitable or other public benefit gift)
132Section LJ 3 amended (Meaning of foreign income tax)
133Section LJ 5 amended (Calculation of New Zealand tax)
134Subpart LZ amended (Terminating provisions)
135Section MB 1 amended (Adjustments for calculation of family scheme income)
136Section MB 7B amended (Family scheme income from employment benefits: employees not controlling shareholders)
137Section MB 13 amended (Family scheme income from other payments)
138Section RD 5 amended (Salary or wages)
139Section RD 6 amended (Certain benefits and payments)
140Section RE 2 amended (Resident passive income)
141Section RE 14 amended (Non-cash dividends other than certain share issues)
142New section RE 18B (Capital value increase under inflation-indexed instruments: RWT cap)
RE 18BCapital value increase under inflation-indexed instruments: RWT cap
143Section RF 2 amended (Non-resident passive income)
144Section YA 1 amended (Definitions)
145Section YB 11 amended (Trustee and person with power of appointment or removal)
146Section YD 1 amended (Residence of natural persons)
147Schedule 14 amended (Depreciable intangible property)
148Schedule 20 amended (Expenditure on farming, horticultural, aquacultural, and forestry improvements)
149Schedule 32 amended (Recipients of charitable or other public benefit gifts)
150Tax Administration Act 1994 amended
151Section 3 amended (Interpretation)
152Section 22 amended (Keeping of business and other records)
153Section 25 amended (RWT withholding certificates)
154Section 33A amended (Annual returns of income not required)
155Section 33AA amended (Exceptions to requirement for return of income)
156Section 51 amended (RWT withholding reconciliation statements)
157Section 81A amended (Disclosure of information under approved information sharing agreement)
158New heading and section 91AAT inserted
91AATDeterminations relating to certain employment expenditure
159Section 93 amended (Assessment of FBT)
160Section 94 amended (Assessment of qualifying company election tax and additional tax)
161Section 95 amended (Assessment of withdrawal tax)
162Section 97 amended (Assessment of imputation penalty tax)
163Section 97B amended (Assessment of Maori authority distribution penalty tax)
164Section 98 amended (Assessment of ESCT)
165Section 98B amended (Assessment of retirement scheme contribution withholding tax)
166Section 99 amended (Assessment of RWT)
167Section 100 amended (Assessment of NRWT)
168Section 101 amended (Assessment of further income tax)
169Section 101B amended (Assessment of imputation additional tax)
170Section 141B amended (Unacceptable tax position)
171Section 141EB amended (Promoter penalties)
172Section 141FD repealed (Shareholders of loss-attributing qualifying companies)
173Section 142A amended (New due date for payment of tax that is not a penalty)
174Section 143 amended (Absolute liability offences)
175Section 143A amended (Knowledge offences)
176Section 173B amended (Definitions)
177Section 176 amended (Recovery of tax by Commissioner)
178Section 177 amended (Taxpayer may apply for financial relief)
179Section 177A replaced (Definition of serious hardship)
177AHow to apply serious hardship provisions
180Section 177B amended (Instalment arrangements)
181Section 177C amended (Write-off of tax by Commissioner)
182New Part 11B inserted (Foreign account information-sharing agreements)
185EPurpose
185FPermitted choices in relation to foreign account information-sharing agreements
185GObligations related to foreign account information-sharing agreements: registration
185HObligations related to foreign account information-sharing agreements: due diligence
185IObligations related to foreign account information-sharing agreements: information for NZ competent authority
185JObligations related to foreign account information-sharing agreements: information for third parties
185KInformation provided in form prescribed by Commissioner
185LForeign account information-sharing agreements: anti-avoidance
185MTimeframes not specified
183New section 225D inserted (Regulations: community housing trusts and companies)
225DRegulations: community housing trusts and companies
184Goods and Services Tax Act 1985 amended
185Section 2 amended (Interpretation)
186Section 3 amended (Meaning of term financial services)
187Section 6 amended (Meaning of term taxable activity)
188Section 11 amended (Zero-rating of goods)
189Section 11A amended (Zero-rating of services)
190Section 20 amended (Calculation of tax payable)
191New section 21FB inserted (Treatment when use changes to total taxable or non-taxable use)
21FBTreatment when use changes to total taxable or non-taxable use
192Section 21HB amended (Transitional rule related to treatment of dwellings)
193Section 25 amended (Credit and debit notes)
194Section 46 amended (Commissioner’s right to withhold payments)
195Section 54C amended (Non-residents: cancellation of registration)
196Income Tax Act 2004 amended
197Section CD 29 amended (Adjustment if dividend recovered by company)
198Section DB 44 amended (Expenditure incurred in deriving exempt income)
199Section EE 7 amended (What is not depreciable property?)
200Section EG 1 amended (Election to use balance date used in foreign country)
201Section EX 5 amended (Direct control interests)
202Section EX 9 amended (Direct income interests)
203Section EX 44 amended (Comparative value method)
204Section OB 1 amended (Definitions)
205Child Support Act 1991 amended
206Section 2 amended (Interpretation)
207Section 9 amended (Social security beneficiaries must apply for formula assessment)
208Section 40 amended (Estimated taxable income)
209Section 44 amended (End-of-year reconciliation)
210Section 65 amended (Child support voluntary agreement no bar to application for formula assessment)
211Section 81 amended (Notification requirements of liable parent)
212Section 92 amended (Requirements in relation to objections)
213Section 98 amended (Minimum liability in respect of child support)
214Section 142 amended (Payment of formula assessment child support to custodians who are social security beneficiaries)
215Section 179A amended (Waiver of right to payment)
Reprint notes

The Parliament of New Zealand enacts as follows: