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

  • enacted
72 New sections 54B, and 54C, 54D, and 54E inserted

After section 54, insert:

54B Statement of payment of RLWTReturn of statement for RLWT

(1)

A person that must make a payment of RLWT must give the Commissioner a statement in relation to their RLWT obligations (the return), in the form prescribed by the Commissioner, at the time at which the RLWT must be paid to the Commissioner or within such further time as the Commissioner may allow.

(2)

Also, a person must give the Commissioner the return if they have no RLWT to pay because of the application of section RL 4 of the Income Tax Act 2007.

54C Information in relation to payment of RLWT

(1)

This section applies if a person (the vendor) disposes of residential land (the disposal), and the bright-line date for the residential land is within 2 years of—

(a)

the date on which the instrument to transfer the land to the person was registered under the Land Transfer Act 1952; or

(b)

their date of acquisition of the land, if an instrument to transfer the land to the person is not registered on or before the bright-line date.

(1B)

This section does not apply if the relevant date for the vendor under subsection (1)(a) or (b) is before 1 October 2015.

(2)

The vendor must give to their conveyancer, or if they do not have a conveyancer or they are associated with the purchaser, give to the purchaser’s conveyancer or the purchaser, information in relation to RLWT, in the form prescribed by the Commissioner, before the relevant residential land purchase amount is paid disposal is completed.

(3)

The information must be accompanied by certified copies of relevant and appropriate documents, as prescribed by the Commissioner, to evidence the information in the form (for example: a certified copy of a vendor’s New Zealand passport, to support information in the form that they are not an offshore person).

(4)

The information that a vendor must give includes—

(a)

their full name, address and tax file number; and

(b)

whether or not they are an offshore RLWT person; and

(c)

if they are an offshore RLWT person,—

(i)

whether or not they are associated with the purchaser; and

(ii)

whether or not section RL 1(2)(a) of the Income Tax Act 2007 applies for the disposal.

(5)

If the vendor is not an offshore RLWT person, the following people must verify, as prescribed by the Commissioner, the information and any relevant and appropriate documents:

(a)

in the case of a vendor company or a look-through company, a director who is not an offshore RLWT person:

(b)

in the case of a vendor limited partnership, a general partner of the partnership who is not an offshore RLWT person:

(c)

in the case of a vendor trust, a trustee of the trust who is not an offshore RLWT person.

(56)

The person who receives the information must keep and retain the information for a period of at least 7 years, unless they receive the information as the purchaser. If they receive the information as the purchaser, they must give a copy of it to the Commissioner within 1 month of receiving it, but they do not have to keep and retain the information afterwards.

54D Information in relation to repayment of RLWT

(1)

For the purposes of deciding if an amount of RLWT may be repaid for a person under section RL 6 of the Income Tax Act 2007, the Commissioner must prescribe a form that requires:

(a)

a person’s income and deductions for land for the period of the part of the income year before the date that is 1 month after the relevant disposal of residential land; and

(b)

whether or not the person, for the relevant disposal of residential land, will meet the requirements in section CB 16A; and

(c)

other relevant particulars.

(2)

The Commissioner may also prescribe any appropriate documents to accompany the form.

54E RLWT certificate of exemption

(1)

This section applies when

(a)

a person applies for an RLWT certificate of exemption in the form prescribed by the Commissioner; and

(b)

the form is accompanied by certified copies of relevant and appropriate documents, as prescribed by the Commissioner; and

(c)

the Commissioner is satisfied that the person meets the requirements in 1 of subsection (2), (3), or (4).

(2)

The requirements in this subsection are that the person, for the residential land,

(a)

is a person who carries on a business of developing land or dividing land into lots or erecting buildings; and

(b)

has provided, in accordance with section 7A of this Act, a security that is acceptable to the Commissioner to secure the performance of their income tax obligations in relation to the land.

(3)

The requirements in this subsection are that the person, for the residential land,

(a)

is a person who carries on a business of developing land or dividing land into lots or erecting buildings; and

(b)

has had tax obligations under the Inland Revenue Acts before applying for the certificate; and

(c)

has complied with all tax obligations for the 2 years before they apply for the certificate, and the Commissioner is satisfied that the person will continue to so comply.

(4)

The requirements in this subsection are that the person, for the residential land, will meet the requirements in section CB 16A.

(5)

The Commissioner must issue an RLWT certificate of exemption to the person.