Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Bill

  • enacted
45 Section YA 1 amended (Definitions)

(1)

This section amends section YA 1.

(2)

In the definition of amount of tax, replace “RSCT rules” with “RSCT rules, RLWT rules”.

(3)

In the definition of ancillary tax, after paragraph (kb), insert:

(kc)

RLWT:

(4)

In the definition of bright-line date, replace “and section CB 16A (Main home exclusion for disposal within 2 years)” with “, section CB 16A (Main home exclusion for disposal within 2 years), and section 54C of the Tax Administration Act 1994”.

(5)

Insert, in appropriate alphabetical order:

conveyancer means,—

(a)

for a vendor or a purchaser, the lawyer, incorporated law firm, conveyancing practitioner, or incorporated conveyancing firm that provides conveyancing services, as that term is used in the Lawyers and Conveyancers Act 2006, to the vendor or purchaser using a New Zealand-based trust account; but

(b)

for a purchaser who does not have a conveyancer described in paragraph (a), the purchaser themselves

(6)

In the definition of date of acquisition, replace “and section CB 16A (Main home exclusion for disposal within 2 years)” with “, section CB 16A (Main home exclusion for disposal within 2 years), and section 54C of the Tax Administration Act 1994”.

(7)

Insert, in appropriate alphabetical order:

licensed security holder is defined in section RL 4(8) (How much RLWT?) for the purposes of section RL 4

(8)

Insert, in appropriate alphabetical order:

offshore personRLWT person means, for the purposes of subpart RL (Residential land withholding tax),—

(a)

a natural person, if—

(i)

the person is a New Zealand citizen who is outside New Zealand and they have not been in New Zealand within the last 3 years:

(ii)

the person holds a residence class visa granted under the Immigration Act 2009, and they are outside New Zealand and have not been in New Zealand within the last 12 months:

(iii)

the person is not a New Zealand citizen and they do not hold a residence class visa granted under the Immigration Act 2009:

(b)

a person that is acting as a trustee of a trust, if—

(i)

the person is an offshore person:

(ii)

the person has a co-trustee that is an offshore person:

(iii)

a settlor of the trust is an offshore person:

(i)

more than 25% of the trustees of the trust are offshore RLWT persons:

(ii)

more than 25% of the people that have the power to appoint or remove a trustee of the trust, or to amend the trust deed, are offshore RLWT persons:

(iiiiv)

all natural person beneficiaries and all natural person discretionary beneficiaries of the trust are offshore RLWT persons:

(ivv)

all beneficiaries and all discretionary beneficiaries of the trust are offshore RLWT persons:

(vi)

a beneficiary that is an offshore person has received a distribution from the trust within the last 6 years of a relevant disposal of residential land:

(v)

a beneficiary, including a discretionary beneficiary (a beneficiary), that is an offshore RLWT person has received a distribution from the trust in 1 of the last 4 years before the relevant disposal of residential land and, if the beneficiary is a natural person, the total distributions to the beneficiary for the relevant year are more than $5,000:

(vi)

the trust has disposed of residential land within 4 years before the relevant disposal of residential land and the trust has a beneficiary, including a discretionary beneficiary, that is an offshore RLWT person:

(c)

a person, other than a natural person, if—

(i)

the person is incorporated outside New Zealand:

(ii)

the person is not a natural person and is registered outside New Zealand:

(iii)

the person is constituted under foreign law:

(iv)

the person has a member that is an offshore person:

(v)

the person has an executive or director that is an offshore person:

(iv)

the person is a company or a partner in a limited partnership and more than 25% of the company’s directors or of the limited partnership’s general partners are offshore RLWT persons:

(vvi)

the person is a company and more than 25% or more of the company’s shareholder decision-making rights are held directly or indirectly by offshore RLWT persons:

(vi)

the person is a partner in a limited partnership or an owner of an effective look-through interest in a look-through company (LTC), and more than 25% of the partnership’s partnership shares or of the LTC’s effective look-through interests are held directly or indirectly by offshore RLWT persons:

(9)

Insert, in appropriate alphabetical order:

residential land purchase amount means, in relation to residential land located in New Zealand, an amount paid or payable for the disposal of the land, but excludes a deposit or part payment (the part-amount) if deposits and part payments, including the part-amount, total, in aggregate, less than 50% of the purchase price for the land

(9B)

In the definition of residual income tax, after paragraph (b)(iiib), insert:

(iiibb)

section LB 6B (Tax credits for RLWT):

(10)

Insert, in appropriate alphabetical order:

RLWT means residential land withholding tax and refers to an amount payable under the RLWT rules

(10B)

Insert, in appropriate alphabetical order:

RLWT certificate of exemption means a certificate of exemption issued by the Commissioner under section 54E of the Tax Administration Act 1994

(11)

Insert, in appropriate alphabetical order:

RLWT rules means—

(a)

sections LA 4, LA 6, and LB 6B (which relate to tax credits for RLWT); and

(b)

subpart RL (Residential land withholding tax); and

(c)

sections 54B and 54C, 54C, 54D, and 54E, and Part 9 of the Tax Administration Act 1994.