New Zealand Legislation: Bills
Bills are proposed Acts
Hon Peter Dunne
Government Bill
100—2
As reported from the Finance and Expenditure Committee
Part 1
Annual rates of income tax
3 Annual rates of income tax for 2010–11 tax year
Part 2
Amendments to Income Tax Act 2007
4B Amounts derived by mutual associations
5B Distribution excluded from being dividend
7B Available subscribed capital (ASC) amount
7C Income for general insurance outstanding claims reserve
9 Non-resident company involved in exploration and development activities
9C Benefits provided to employees who are shareholders or investors
9D New section CX 51C inserted
9E Available capital distribution amount
10 Acquisition of emissions units
11C Film production expenditure
12 Distribution to member of co-operative company, excluded from being dividend
12C Deduction for general insurance outstanding claims reserve
12D Apportionment on disposal of business assets that include trading stock
13 Valuation of excepted financial arrangements
13B Valuation of emissions units issued for zero price
14 Economic rate for plant, equipment, or building, with high residual value
14B Total deductions in section EE 56
14C Expenditure incurred in acquiring film rights in feature films
14D Expenditure incurred in acquiring film rights in films other than feature films
14E Film production expenditure for New Zealand films having no government screen production payment
14F Film production expenditure for other films having no government screen production payment
18 Meaning of controlled foreign company
19 Non-attributing active CFC: default test
19B Part-year tax calculations
19C Outstanding claims reserving amount: non-participation policies not annuities
19D Premium smoothing reserving amount: non-participation policies not annuities
19E Unearned premium reserving amount: non-participation policies not annuities
19F Capital guarantee reserving amount: non-participation policies not annuities
19G Transitional adjustments: life risk
19H Expenditure when deduction would be denied to consolidated group
19I Close company remuneration to shareholders, directors, or relatives
20 Disposals of trading stock at below market value
20 Disposals of trading stock at below market value
20B Disposals of timber rights or standing timber
20C New section GC 3B inserted
20F When requirements no longer met
20G New section HA 11B inserted
20H Treatment of tax losses other than certain foreign losses
20I Attribution when balance dates differ
21B Effect of failure to meet eligibility requirements for entities
21C Investor interest size requirement
22 Treatment of portfolio class taxable loss and portfolio class land loss for tax year
22B When entity no longer meets investment or investor requirements
22C Use of tax credits other than foreign tax credits by PIEs
23 Use of land losses of investor classes
23B When formation losses carried forward are 5% or more of formation investment value: 3-year spread
24 Transitional provisions for PIE rules
24B Restrictions relating to ring-fenced tax losses
24C Common ownership: group of companies
24D Bad debts or decline of value of shares
24E Breach in tax year in which loss balance is grouped
26 Tax credits for housekeeping
27B Tax credits for certain investors in portfolio tax rate entities
27C Tax credits for investors in multi-rate PIEs
27D Tax credits for certain zero-rated portfolio investors
27E Tax credits for zero-rated investors
27F Treatment of tax credits on permanent emigration
28 ICA transfer from tax pooling account
28C ICA refund from tax pooling account
28D ICA transfer within tax pooling account
30 New heading and section OE 11B inserted
Credit if debit balance including debits from conduit relief
OE 11B Company with debit balance, including debits from conduit relief, at beginning of first affected income year
Treatment of debits from conduit relief
30B Heading and section OE 16B repealed
30C When credits and debits arise only in consolidated imputation group accounts
30D Consolidated ICA transfer from tax pooling account
30E Consolidated ICA refund from tax pooling account
30F Consolidated ICA transfer to tax pooling account
30G New heading and section OP 104B inserted
Treatment by consolidated BETA groups of BETA debits from conduit relief
OP 104B Consolidated BETA group with debit balance, including debits from conduit relief, in certain income years
30H Heading and section OP 108B repealed
31 Payment dates for terminal tax
31C Payments made by RWT proxies
33 General rules for currency conversion
33C Schedule 1—Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe benefits
33D Schedule 4––Rates of tax for schedular payments
33E Schedule 6—Prescribed rates: PIE investments and retirement scheme contributions
34 Schedule 32—Recipients of charitable or other public benefit gifts
Part 3
Amendments to Tax Administration Act 1994
35 Tax Administration Act 1994
37 Exemption certificates for schedular payments
38 Special tax rate certificates for schedular payments
38B Use of inconsistent RWT rates
38C Portfolio tax rate entity to give statement to investors and request information
38D Particulars furnished in electronic format
38E General requirements for returns
39 Returns by persons with tax credits for housekeeping payments and charitable or other public benefit gifts
39B Disclosure of interest payments when no requirement to withhold RWT
40 Determinations in relation to financial arrangements
41 Notification of determinations and notices
42 Determinations in relation to apportionment of interest costs
43 Determinations in relation to standard-cost household service
44 Determinations relating to types and diminishing values of listed horticultural plants
45 Publication and revocation of determinations relating to livestock
46 Commissioner may decline to issue special rate or provisional rate
46B Notice of setting of economic rate
47 Applications for determinations
48 Determinations on rates for diminishing value of environmental expenditure
49 Determination on type of interest in FIF and use of fair dividend rate method
49B Determination on insurer as non-attributing active CFC
49C Determination relating to eligible relocation expenses
50 Content and notification of a public ruling
51 Withdrawal of a public ruling
52 Commissioner to make private rulings on request
54 Application of a private ruling
55 Assumptions in making a private ruling
56 Content and notification of a private ruling
58 Commissioner may make product rulings
60 Application of a product ruling
61 Applying for a product ruling
63 Assumptions in making a product ruling
64 Content and notification of a product ruling
65 Withdrawal of a product ruling
68B Transitional imputation penalty tax payable in some circumstances
Part 4
Amendments to KiwiSaver Act 2006
72B Employees must give information to employers
72C Eligibility to be exempt employer
72D How to apply to be exempt employer
72E How applications to be exempt employer must be dealt with
74 Opting in by persons under 18
75 Initial back-dated validation
76 What happens when initial back-dated validation ends, with no confirmed back-dated validation?
77 PAYE rules apply to deductions
78 Application of other provisions of Superannuation Schemes Act 1989
79 Regulations relating to mortgage diversion facility
80 Schedule 1––KiwiSaver scheme rules
Part 5
Amendments to other Acts and regulations
Goods and Services Tax Act 1985
81 Goods and services tax incurred in making certain supplies of financial services
Estate and Gift Duties Act 1968
82 Exemption for gifts to charities and certain bodies
83AB Foreign investment fund income
83AC Benefits provided to employees who are shareholders or investors
83AD Total deductions in section EE 47
83 Determination alternatives to IFRS
84 Expected value method and equity-free fair value method
85B Codes: comparative value method, deemed rate of return method, fair dividend rate method, and cost method
85C Treatment of portfolio class taxable loss and portfolio class land loss for tax year
85D Credit for investor for tax paid by entity if portfolio investor allocated income not excluded income
85E Credit for zero-rated portfolio investor for tax paid by entity in relation to portfolio investor allocated income
86B Schedule 22A—Identified policy changes
87 Schedule 9—Council-controlled organisations and transfer of undertakings
Tax Administration (Binding Rulings) Regulations 1999
89 Fees inclusive of goods and services tax
Schedule 1
Amendments to Income Tax Act 2007, schedule 1
The Parliament of New Zealand enacts as follows:
