1 Title

2 Commencement

3 Income Tax Act 2007

4 Flowchart B2: Calculating and satisfying income tax liabilities

5 Available capital distribution amount

6 Benefits, pensions, compensation, and government grants

6B Attributed income of certain investors in multi-rate PIEs

6C Available capital distribution amount: 1988 to 2010

7 Goods and services tax

8 Research or development

9 Some definitions

10 Criteria for approval of share purchase schemes: when period of restriction ends

10B Cost of acquiring timber or right to take timber: other cases

11 Section DP 11 replaced

11B Acquiring film rights

11C Mining exploration expenditure or mining development expenditure on acquisition of asset

11D Meaning of income from forestry

11E Determination alternatives

11F Consistency of use of IFRS method

12 Consideration when debt sold at discount to associate of debtor

13 Income and deduction when debt sold at discount to associate of debtor

13B Attributable CFC amount

13C Net attributable CFC income or loss

13D Adjustment of fraction for excessively debt funded CFC

14 Attributable CFC amount and net attributable CFC income or loss

14B Non-attributing active CFC: default test

14C Non-attributing active CFC: test based on accounting standard

14D Exemption for Australian unit trusts with adequate turnover or distributions

14E Limits on choice of calculation methods

15 Accounting profits method

15B Policyholder base income: non-participation policies

15C Policyholder base income: profit participation policies

15D Policyholder base allowable deductions: profit participation policies

15E Shareholder base income: non-participation policies

15F Shareholder base income: profit participation policies

15G Shareholder base allowable deductions: profit participation policies

15H Transitional adjustments: life risk

15I Policyholder income formula: PILF adjustment

15J Consistency of use of IFRS method: Determination G3 change allowed

16 Attribution rule for income from personal services

17 Loss balances not carried forward

18 Beneficiary income

19 Who is a settlor?

19B Unlisted company choosing to become portfolio listed company

19C Minimum number of investors

19D Maximum investors' interests

19E Requirements for listed PIEs: unlisted companies

19F Sections HM 56 to HM 59 replaced

19G Notified rates

19H Certain exiting investors zero-rated

19I When elections take effect

20 New section HZ 7 added

21 Tax losses

22 Using tax losses in tax year

23 Using loss balances carried forward to tax year

24 Restrictions on companies' loss balances carried forward

25 Restrictions on companies grouping tax losses

26 Restrictions relating to ring-fenced losses

27 General treatment

28 New section IQ 1B inserted

29 Ring-fencing cap on attributed CFC net losses

29B Ring-fencing cap on FIF net losses

30 Group companies using attributed CFC net losses

30B Pre-consolidation losses: general treatment

31 When group membership lacking in loss period

32 When group membership lacking in tax year of use

33 General treatment of mining companies' tax losses

34 Treatment of tax losses resulting from certain expenditure

35 Holding companies' tax losses

36 Petroleum miners' tax losses

37 Life insurers' policyholder net losses

37B Tax credits for payroll donations

37C When donation is paid to ineligible recipient

37D When donation returned to person

37E Tax credits for investors in multi-rate PIEs

38 Adjustments for calculation of family scheme income

39 Calculation of maximum permitted ratios

40 ICA payment of tax

40B ICA debit for loss of shareholder continuity

40C Table O2: imputation debits

40D FDPA debit for loss of shareholder continuity

40E Table O4: FDP debits

40F BETA credit for loss of shareholder continuity

40G Table O7: branch equivalent tax credits

40H MACA debit for loss of shareholder continuity

40I Table O18: Maori authority debits

40J Consolidated ICA debit for loss of shareholder continuity

40K Table O20: imputation debits of consolidated imputation groups

40L Consolidated FDPA debit for loss of shareholder continuity

40M Table O22: FDP debits of consolidated FDP groups

40N Consolidated BETA credit for loss of shareholder continuity

40O Table O25: branch equivalent tax credits of consolidated BETA groups

41 New section OZ 18 added

41B Amounts treated as income tax

42 Amounts of tax for PAYE income payments

43 Payment of extra pay with other PAYE income payments

43B RWT rules and their application

43C Resident passive income

44 New section RE 10B inserted

45 Interest

45B Choosing higher rates

46 When payment treated as non-resident passive income

47 NRWT rules and their application

47B Obligation to withhold amounts of tax for non-resident passive income

47C When amounts of tax not withheld or partly withheld

47D Interest paid by approved issuers or transitional residents

48 Overpaid RWT or NRWT

49 Definitions

49B Tripartite relationship

50 Transparency of nominees

51 Schedule 1—Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe benefits

52 Schedule 2—Basic tax rates for PAYE income payments

52B New schedule 6 inserted

53 Schedule 51—Identified changes in legislation

54 Lists of defined terms in Income Tax Act 2007

55 Tax Administration Act 1994

56 Interpretation

57 Giving of notices by Commissioner

58 PAYE tax codes

59 Section 24C replaced

59B New heading and new section 25A

60 New section 26B inserted

61 Person advising retirement savings scheme of retirement scheme prescribed rate

62 Annual returns of income not required

62B Certificates about trees

63 Natural person to request income statement

63 Section 80C replaced

64 Commissioner must issue income statement

64B Statement of family scheme income

65 Taxation laws in respect of which binding rulings may be made

66 New section 113A inserted

67 Certain rights of challenge not conferred

68 Definitions

68B Limitations on assistance in recovery

69 Goods and Services Tax Act 1985

70 Meaning of associated persons

71 Meaning of term supply

72 Income Tax Act 2004

73 Available capital distribution amount

73B Meaning of expenditure on account of an employee

73C Expenditure on account, and reimbursement, of employees

74 Research or development

75 Some definitions

76 Gifts of money by company

77 Section DP 10 replaced

77B Ring-fenced allocations

78 Branch equivalent income or loss: calculation rules

79 Accounting profits method

79B Unlisted company may choose to become portfolio listed company

80 Credits arising to imputation credit account

81 New section NF 2E inserted

82 Definitions

83 Lists of defined terms in Income Tax Act 2004

84 Credits arising to imputation credit account

85 Taxes and duties

86 Section CX 55 replaced

87 Gifts of money by company

88 Commissioner to assess borrower's repayment obligation