Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020

Reprint as at 25 March 2020

Coat of Arms of New Zealand

Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020

Public Act
 
2020 No 5
Date of assent
 
23 March 2020
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
3KiwiSaver Act 2006
4Section 4 amended (Interpretation)
5Section 17 amended (How to opt out)
6Section 18 amended (Extension of opt-out period)
7Section 22 amended (Employees giving information to employers)
8Section 23 replaced (Employers must give information to Commissioner)
23Employers must give information about new employees to Commissioner
9Section 34 amended (Opting in by person 18 years or more)
10Section 38 amended (Providers must give notice to Commissioner if they contract directly with members)
11Section 39 amended (Commissioner must give notice to employer if provider gives notice that employee has opted in under section 38)
12Section 48 amended (Effect of employer choice of KiwiSaver scheme)
13Section 51 amended (Completion of allocation to default KiwiSaver scheme if person does not choose his or her own KiwiSaver scheme)
14Section 56 amended (Notification of transfers and requirement to transfer funds and information)
15Section 57 amended (Involuntary transfers)
16Section 59B amended (Initial back-dated validation)
17Section 59C amended (Confirmed back-dated validation)
18Section 59D amended (No confirmed backdated validation)
19New section 63B inserted (Information on salary or wages from which deductions are made)
63BInformation on salary or wages from which deductions are made
20Section 64 amended (Contribution rate)
21Section 69 replaced (Unremitted deductions made by employers)
69Unremitted deductions made by employers
22Section 71 amended (Time at which unexplained remittances deemed to be received)
23Section 73 amended (Deductions entered in and paid out of holding account)
24Section 74 amended (Other contributions entered in and paid out of holding account)
25Section 75 amended (Initial contributions stay in holding account for 3 months)
26Section 76 repealed (Employer contributions may stay in holding account until deducted contributions paid)
27Section 78 replaced (Treatment of unremitted deductions in holding account)
78Treatment of certain unremitted deductions and employer contributions in holding account
28Section 81 amended (Refund by provider of amounts paid in excess of required amount of contribution)
29Section 85 replaced (Time when contributions treated as received for interest purposes)
85Time when deductions and employer contributions treated as received for interest purposes
30Section 88 amended (How and when interest is paid on on-payments)
31Section 93 amended (Employer contributions paid via Commissioner)
32New sections 95B to 95D inserted
95BUnremitted employer contributions
95CUnexplained remittances of employer contributions
95DTime at which unexplained remittances of employer contributions deemed to be received
33Section 96 amended (What Commissioner must do with contributions received under this subpart)
34Section 98 repealed (Short payments by employers if not enough money remitted to Commissioner to cover all of employees’ deductions and employer contributions)
35Section 98A amended (Quantifying short payments for the purposes of Income Tax Act 2007 and Tax Administration Act 1994)
36Section 99 repealed (Short payments if not enough employer contribution remitted to cover all employees)
37Section 101 amended (Refunds of employer contribution by provider)
38New section 101AA inserted (What Commissioner must do with employer contribution refunded by provider)
101AAWhat Commissioner must do with employer contribution refunded by provider
39Section 101C amended (Employee’s requirements)
40Section 103 amended (How to apply for savings suspension)
41Section 104 amended (Granting of savings suspension)
42Section 105 amended (Commissioner must give notice of grant of savings suspension)
43Section 107 amended (Employers to whom savings suspension applies)
44Section 108 amended (Savings suspensions have 3-month minimum life)
45Section 112B amended (Non-deduction notices)
46New section 221B inserted (Commissioner may make certain assumptions)
221BCommissioner may make certain assumptions
47Section 226 amended (Crown contribution: kick-start contributions)
48Section 228 amended (Regulations)
49New section 243 inserted (Protection from non-compliance: Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020)
243Protection from non-compliance: Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020
50Schedule 1 amended (KiwiSaver scheme rules)
51Student Loan Scheme Act 2011
52Section 4 amended (Interpretation)
53Section 5 amended (Meaning of unpaid amount)
54Section 25 amended (Commissioner may treat certain borrowers as being physically in New Zealand)
55Section 26 amended (Method of making application and provision of evidence and information)
56Section 27 amended (Commissioner must notify borrower and specify period or conditions when granting application)
57New section 62A inserted (Commissioner may notify employers when loan balance close to zero)
62ACommissioner may notify employers when loan balance close to zero
58Section 72 amended (Application of this subpart)
59Section 74 amended (Notification of Schedule 3 adjustments)
60Section 106 amended (Meaning of repayment holiday)
61Cross-heading and section 107 amended
62Section 107B amended (Grant of repayment holiday)
63Section 108 amended (Duration of repayment holiday)
64Section 108A amended (Borrowers who have had, or are having, repayment holidays under Student Loan Scheme Act 1992)
65Section 110 amended (Repayment obligations of overseas-based borrowers)
66Section 114 amended (Notification of Schedule 3 adjustments by New Zealand-based non-resident borrowers)
67Section 115 amended (Repayment obligations of borrowers who are overseas-based for part of tax year)
68Section 144 amended (Power of Commissioner in relation to small amounts)
69Section 146A amended (Commissioner may grant relief from penalties)
70Section 161A and cross-heading repealed
71Section 176 amended (Challenge to decision concerning treating borrowers as being physically in New Zealand)
72Section 182A amended (Challenge to decision concerning repayment holiday)
73Section 189 amended (Annual administration fee)
74Section 191 amended (Limit on repayment obligation for pay period or tax year)
75Section 194 amended (Order in which salary or wage deductions and payments offset against borrower’s consolidated loan balance)
76Section 195 amended (Date on which salary or wage deductions and payments treated as being made and credited)
77Section 197 amended (Write-off of consolidated loan balance)
78Section 220 amended (Application, savings, and transitional provisions)
79Schedule 1 amended (Conditions to borrower being treated as being physically in New Zealand)
80Schedule 6 amended (Application, savings, and transitional provisions)
81Income Tax Act 2007
82Section BB 2 amended (Main obligations)
83Section BC 7 amended (Income tax liability of person with schedular income)
84Section CB 16A amended (Main home exclusion for disposal within 5 years)
85Section CC 1 amended (Land)
86Section CC 1B amended (Consideration for agreement to grant, renew, extend, or transfer leasehold estate or licence)
87Section CC 1B amended (Consideration relating to grant, renewal, extension, or transfer of leasehold estate or licence)
88Section CD 4 amended (Transfers of value generally)
89Section CD 5 amended (What is a transfer of value?)
90Section CD 6 amended (When is a transfer caused by a shareholding relationship)
91Section CD 27 amended (Property made available intra-group)
92Section CD 29C amended (Transfers to shareholders by ASX-listed Australian company of shares in subsidiary)
93Section CD 38 amended (General calculation rule for transfers of value)
94New section CE 7CB inserted (Meaning of market value)
CE 7CBMeaning of market value
95Section CW 26C amended (Meaning of exempt ESS)
96New section CW 26DB inserted (Meaning of market value)
CW 26DBMeaning of market value
97Section CW 38 amended (Public authorities)
98Section CW 38B amended (Public purpose Crown-controlled companies)
99Section CW 39 amended (Local authorities)
100Section CW 56 amended (Non-resident aircraft operators)
101Section CX 17 amended (Benefits provided to employees who are shareholders or investors)
102Section CX 22 amended (Benefits to non-executive directors)
103Section CX 56 amended (Attributed income of certain investors in multi-rate PIEs)
104Section CZ 35 amended (Amounts derived by Te Kōwhatu Tū Moana)
105Section EE 47 amended (Events for purposes of section EE 44)
106Section EL 3 amended (Definitions for this subpart)
107Section EL 4 amended (Allocation of deductions for loss-making residential rental properties)
108Section EL 5 amended (When residential portfolios sold)
109Section EL 7 amended (When property A sold)
110Section EL 8 repealed (Treatment of previously transferred amounts on fully-taxed disposals)
111Section EL 15 amended (Transfers between companies in wholly-owned groups)
112Section EL 16 amended (Interests in residential land-rich entities)
113Section EL 18 amended (Modifications when entities transparent)
114Section EY 30 amended (Transitional adjustments: life risk)
115Section FB 3A amended (Residential land)
116Section FC 1 amended (Disposals to which this subpart applies)
117Section FC 2 amended (Transfer at market value)
118Section FE 5 amended (Thresholds for application of interest apportionment rules)
119Section FE 6 amended (Apportionment of interest by excess debt entity)
120Section FE 16B amended (Total group non-debt liabilities)
121Section FH 1 amended (Subpart implements OECD recommendations for domestic law)
122Section FH 5 amended (Payments by New Zealand resident or New Zealand deducting branch producing deduction without income)
123New section FH 5B inserted (Exception: when payee group not allowed deductions for supplies as prerequisites for payer supplies)
FH 5BException: when payee group not allowed deductions for supplies as prerequisites for payer supplies
124Section FH 7 amended (Payments to person outside New Zealand producing deduction without income)
125Section FH 14 amended (Irrevocable election by owner of hybrid entity)
126Section FM 8 amended (Transactions between group companies: income)
127Section GB 27 amended (Attribution rule for income from personal services)
128Section GB 29 amended (Attribution rule: calculation)
129Section GC 10 amended (Compensating arrangement: person receiving more than arm’s length amount)
130Section GC 16 amended (Credit rating of borrower: other than insuring or lending person)
131Section HA 13 amended (Qualifying companies’ distributions)
132Section HC 2 amended (Obligations of joint trustees for calculating income and providing returns)
133Section HC 4 amended (Corpus of trust)
134Section HC 7 amended (Trustee income)
135Section HC 10 amended (Complying trusts)
136Section HC 14 amended (Distributions from trusts)
137Section HC 15 amended (Taxable distributions from non-complying and foreign trusts)
138Section HC 16 amended (Ordering rule for distributions from non-complying and foreign trusts)
139Section HC 25 amended (Foreign-sourced amounts: non-resident trustees)
140Section HC 26 amended (Foreign-sourced amounts: resident trustees)
141Section HC 27 amended (Who is a settlor?)
142Section HC 28 amended (Activities treated as those of settlor)
143New section HC 31B inserted (Value transfer by deferral, or non-exercise, of right to demand payment)
HC 31BValue transfer by deferral, or non-exercise, of right to demand payment
144Section HC 33 amended (Choosing to satisfy income tax liability of trustee)
145Section HC 36 amended (Trusts and minor beneficiary rule)
146Section HM 3 amended (Foreign PIE equivalents)
147Section HM 6 amended (Intended effects for multi-rate PIEs and investors)
148New section HM 36B inserted (Calculating PIE schedular income adjustments for natural person investors)
HM 36BCalculating PIE schedular income adjustments for natural person investors
149Section HM 55D amended (Requirements for investors in foreign investment PIEs)
150Section HM 56 amended (Prescribed investor rates: schedular rates)
151Section HM 60 amended (Notified investor rates)
152New section HM 60B inserted (Investor rates provided by Commissioner)
HM 60BInvestor rates provided by Commissioner
153New section HZ 11 inserted (Protection from non-compliance: Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020)
HZ 11Protection from non-compliance: Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020
154Section IQ 4 amended (Group companies using attributed CFC net losses)
155Section LA 5 amended (Treatment of remaining credits) [Repealed]
156Section LA 6 amended (Remaining refundable credits: PAYE, RWT, and certain other items)
157Section LD 3 amended (Meaning of charitable or other public benefit gift)
158Section LD 6 amended (When donation is paid to ineligible recipient)
159Section LJ 2 amended (Tax credits for foreign income tax)
160Section LO 2 amended (Beneficiaries of trusts)
161Section LS 2 amended (Tax credits for investors in multi-rate PIEs)
162Section LY 1 amended (Research and development tax credits)
163Section LY 3 amended (When this subpart applies)
164Section LY 8 amended (Carry forward for remaining research and development tax credits)
165Section LZ 13 amended (Part-year override of section LY 3(2)(b))
166Section MF 6 amended (Overpayment or underpayment of tax credit)
167Section MK 2 amended (Eligibility requirements)
168Section OK 19 amended (Maori authority credits attached to distributions)
169Section RC 5 amended (Methods for calculating provisional tax liability)
170Section RC 9 amended (Provisional tax payable in instalments)
171Section RC 10 amended (Calculating amount of instalment under standard and estimation methods)
172Section RC 13 amended (Paying 2 instalments for tax year)
173Section RC 14 amended (Paying 1 instalment for tax year)
174Section RC 20 amended (Calculating residual income tax in transitional years)
175Section RC 29 amended (Residual income tax of consolidated groups)
176Section RC 33 amended (Amalgamated companies: calculating residual income tax)
177Section RC 35B amended (Treatment of overpaid provisional tax instalments calculated using AIM method)
178Section RC 37 amended (Availability of early-payment discounts)
179Section RD 5 amended (Salary or wages)
180Section RE 4 amended (Persons who have withholding obligations)
181New section RE 10C inserted (Obligations of custodial institutions in relation to certain payments of investment income)
RE 10CObligations of custodial institutions in relation to certain payments of investment income
182Section RF 2 amended (Non-resident passive income)
183Section RF 4 amended (Non-resident passive income received by agents and others)
184Section RZ 16 amended (Treatment of certain refunds not paid within 4-year period: 1 April 2008 to 31 March 2013)
185Section YA 1 amended (Definitions)
186New section YD 3BA inserted (Country of residence of joint trustees)
YD 3BACountry of residence of joint trustees
187Schedule 21 amended (Excluded activities for research and development activities tax credits)
188Schedule 28 amended (Requirements for complying fund rules)
189Schedule 32 amended (Recipients of charitable or other public benefit gifts)
190Amendments to Income Tax Act 2007 consequential to enactment of Kāinga Ora–Homes and Communities Act 2019
191Tax Administration Act 1994
192Section 3 amended (Interpretation)
193Section 22 amended (Keeping of business and other records)
194Section 22AA amended (Records to be kept by employers and PAYE intermediaries)
195Section 22AAB amended (Records to be kept by payers of passive income)
196Section 22C amended (Outline of subpart)
197Section 22D amended (Key terms)
198Section 22H amended (Finalising accounts)
199Section 25B amended (Investment income information: outline of provisions)
200Section 25E amended (Who must provide investment income information to Commissioner)
201New section 25MB inserted (Information from custodial institutions)
25MBInformation from custodial institutions
202Section 32E amended (Applications for RWT-exempt status)
203Section 36BB amended (Electronic format for details required for tax pooling intermediaries)
204Section 41 amended (Annual returns by persons who receive credit under family scheme)
205Section 68CB amended (Research and development tax credits: general approval 2019–20 income year pilot)
206Section 68CB amended (Research and development tax credits: general approval)
207Section 68CC amended (Research and development tax credits: greater than $2 million approval)
208Section 78D amended (Evidential requirements for tax credits)
209Section 80KLB amended (Recovery of excess tax credits)
210Section 80KM repealed (Summary of instalments paid)
211Section 89C amended (Notices of proposed adjustment required to be issued by Commissioner)
212Section 91EI amended (Withdrawal of a private ruling)
213New section 91ESB inserted (Withdrawal of a short-process ruling)
91ESBWithdrawal of a short-process ruling
214Section 91FJ amended (Withdrawal of a product ruling)
215Section 106 amended (Assessment where default made in furnishing returns)
216Section 108 amended (Time bar for amendment of income tax assessment)
217Section 113A amended (Correction of certain errors in subsequent returns)
218Section 113E amended (Amended assessments: research and development tax credits)
219New section 113F inserted (Amended assessments: election under section HC 33 to satisfy trustee liability)
113FAmended assessments: election under section HC 33 to satisfy trustee liability
220Section 120C amended (Definitions)
221Section 120KB amended (Provisional tax instalments and due dates generally)
222Section 120KBB amended (Interest for most standard method and some estimation method provisional taxpayers)
223New section 120KF inserted (Tolerance for provisional tax instalments)
120KFTolerance for provisional tax instalments
224Section 120L amended (Meaning of unpaid tax and overpaid tax for provisional tax purposes)
225Section 120LB repealed (Meaning of unpaid tax and overpaid tax for certain transferees under AIM method)
226Section 124G amended (Refusal, removal, or disallowance of status of tax agents, representatives, and nominated persons)
227Section 124ZH amended (Approved research providers)
228Section 124ZI amended (Certificates for research and development)
229Section 138E amended (Certain rights of challenge not conferred)
230Section 139B amended (Late payment penalty)
231Section 139C amended (Late payment penalty and provisional tax)
232Section 141JA repealed (Application of Part 9 to non-filing taxpayers)
233New section 142AC inserted (New due date for payment of terminal tax by certain individuals)
142ACNew due date for payment of terminal tax by certain individuals
234Section 143A amended (Knowledge offences)
235Section 143D amended (Offences related to disclosure of certain information by persons other than revenue officers)
236Section 173L amended (Transfer of excess tax within taxpayer’s accounts)
237Section 184A amended (Refund of tax paid in excess made by direct credit to bank account)
238Schedule 4 amended (Reporting of employment income information)
239Schedule 7 amended (Disclosure rules)
38Agencies for research and development
39Agencies for Australian wine producer rebate
240Schedule 8 amended (Reporting of income information by individuals and treatment of certain amounts)
241Goods and Services Tax Act 1985
242Section 5 amended (Meaning of term supply)
243Section 8 amended (Imposition of goods and services tax on supply)
244Section 10B amended (Estimating value of goods in supply for treatment as distantly taxable goods)
245Section 10C amended (Election by supplier that supplies of higher-value goods be supplies of distantly taxable goods)
246Section 12 amended (Imposition of goods and services tax on imports)
247Section 20H amended (Goods and services tax incurred in making financial services for raising funds)
248Section 24 amended (Tax invoices)
249Section 24BAB amended (Receipts for supplies)
250Section 24BAC amended (Information for importation of goods including distantly taxable goods)
251Section 60C amended (Electronic marketplaces)
252Section 60D amended (Approved marketplaces)
253Section 77 amended (New Zealand or foreign currency)
254Section 85C amended (Certain contracts entered into before 1 December 2019)
255Income Tax Act 2004
256Section CW 45 amended (Non-resident aircraft operators)
257Section MD 1 amended (Refund of excess tax)
258Section MD 1C amended (Treatment of certain refunds not paid within 4-year period: 2005–06, 2006–07, and 2007–08 income years)
259Section OB 1 amended (Definitions)
260Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019
261Section 34 repealed (Section 36BB amended (Electronic format for details required for tax pooling intermediaries))
262Section 362 amended (Section MD 1 amended (Refund of excess tax))
263Section 364 amended (New section MD 1C inserted (Treatment of certain refunds not paid within 4-year period: 2005–06, 2006–07, and 2007–08 income years))
264Section 370 amended (Section MD 1 amended (Refund of excess tax))
265Section 375 amended (Regulation 2 amended (Interpretation))
266Schedule 1 amended (New schedules 7 and 8 amended)
3Small amounts of tax payable
267Section CB 14 amended (Exemption from tax of certain aircraft operators)
268Section MD 1 amended (Refund of excess tax)
269Section 64A amended (Exemption from tax of certain aircraft operators)
270Section 409 amended (Refund of excess tax)
271Section 46 amended (Section 138E amended (Certain rights of challenge not conferred))
272Section 332 repealed (Section 78D amended (Evidential requirements for tax credits))
273Section 65 amended (Section EY 30 amended (Transitional adjustments: life risk))
274Sections repealed
275Section 11 amended (Earnings as an employee: what it does not include)
276Schedule amended (Powers in other enactments to which all or part of Part 4 of Search and Surveillance Act 2012 applies)
277Section 2 amended (Interpretation)
278Schedule 3 amended (Information matching provisions)
279Income Tax (Adverse Event Income Equalisation Scheme Rate of Interest) Regulations 1995 revoked
Reprint notes

The Parliament of New Zealand enacts as follows: