Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Bill

Hon Stuart Nash

Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Bill

Government Bill

273—1

Contents

Explanatory note
1Title
2Commencement
3Annual rates of income tax for 2020–21 tax year
4Income Tax Act 2007
5Section CB 16A amended (Main home exclusion for disposal within 5 years)
6Section CB 16 amended (Residential exclusion from sections CB 6 to CB 11)
7Section CB 19 amended (Business exclusion from sections CB 6 to CB 11)
8New heading and section CC 14 inserted
CC 14NZ IFRS 16 leases
9Section CD 1 amended (Dividend)
10Section CE 6 amended (Trusts are nominees)
11New heading and section CH 13 inserted
CH 13Feasibility expenditure clawback
12Section CW 55BB amended (Minors’ income, to limited extent)
13Section CW 58 amended (Disposal of companies’ own shares)
14Section DB 23 amended (Cost of revenue account property)
15New heading and section DB 51C inserted
DB 51CNZ IFRS 16 leases
16New heading and sections DB 66 and DB 67 inserted
DB 66Feasibility expenditure: spread deduction
DB 67Feasibility expenditure: immediate deduction
17Heading and section EB 24 repealed
18Section ED 3 amended (Part-year tax calculations for transfers: general insurance OCR)
19Section EE 40 amended (Transfer of depreciable property on or after 24 September 1997)
20Section EE 45 amended (Consideration for purposes of section EE 44)
21Section EJ 3 amended (Spreading forward of fertiliser expenditure)
22Section EJ 10 amended (Personal property lease payments)
23New section EJ 10B inserted (IFRS leases)
EJ 10BIFRS leases
24Section EL 2 amended (Outline of subpart: specific provisions)
25Section EL 3 amended (Definitions for this subpart)
26Section EW 15I amended (Mandatory use of yield to maturity method for some arrangements)
27Section EW 48 amended (Anti-avoidance provisions)
28Section EX 21 amended (Attributable CFC amount and net attributable CFC income or loss: calculation rules)
29Section EX 28 amended (Meaning of FIF)
30Section EY 5 amended (Part-year tax calculations)
31Section EY 7 amended (Meaning of claim)
32Section EY 11 amended (Superannuation schemes providing life insurance)
33New section EZ 4B inserted (Cattle destroyed because of Mycoplasma bovis: spreading)
EZ 4BCattle destroyed because of Mycoplasma bovis: spreading
34Section FE 2 amended (When this subpart applies)
35Section FE 6 amended (Apportionment of interest by excess debt entity)
36Section FE 12 amended (Calculation of debt percentages)
37Section FE 22 amended (Notional offshore investment)
38Section GB 20 amended (Arrangements involving petroleum and mineral mining)
39Section GC 18 amended (Loan features disregarded by rules for transfer pricing arrangements)
40New heading and sections GC 20 and GC 21 inserted
GC 20Effect of agreed purchase price allocation
GC 21Purchase price allocation required
41Section HC 10 amended (Complying trusts)
42Section HC 24 amended (Trustees’ obligations)
43Section HC 27 amended (Who is a settlor?)
44Section HC 30 amended (Treatment of foreign trusts when settlor becomes resident)
45Section LY 5 amended (Eligible research and development expenditure)
46Section MD 12 amended (Calculation of parental tax credit)
47Section MF 7 amended (Orders in Council)
48Section OB 52 replaced (ICA imputation credit of consolidated imputation group)
OB 52ICA transfer to consolidated imputation group
49Table O2 amended (Imputation debits)
50Section OP 22 replaced (Consolidated ICA group company’s credit)
OP 22Consolidated ICA transfer from group company’s ICA
51Table O19 amended (Imputation credits of consolidated imputation groups)
52Section RA 1 amended (What this Part does)
53Section RC 5 amended (Methods for calculating provisional tax liability)
54Section RD 24 amended (Exemptions for non-resident contractors)
55Section RE 2 amended (Resident passive income)
56Section RE 10C amended (Obligations of custodial institutions in relation to certain payments of investment income)
57Section RF 2C amended (Meaning of non-resident financial arrangement income)
58Section YA 1 amended (Definitions)
59Schedule 21 amended (Excluded activities for research and development activities tax credits)
60Schedule 21B amended (Expenditure or loss for research and development tax credits)
61Schedule 29 amended (Portfolio investment entities: listed investors)
62Schedule 32 amended (Recipients of charitable or other public benefit gifts)
63Schedule 36 amended (Government enterprises)
64Income Tax Act 2007: aligning nomenclature with Social Security Act 2018
65Other enactments: consequential amendments aligning nomenclature
66Tax Administration Act 1994
67Section 3 amended (Interpretation)
68Section 4A amended (Construction of certain provisions)
69Section 17C amended (Commissioner’s powers in relation to documents)
70Section 25E amended (Who must provide investment income information to Commissioner)
71Section 25J amended (Information on attributed PIE income: non-locked-in funds
72Section 25K repealed (Information on attributed PIE income; locked-in funds)
73Section 25MB amended (Information from custodial institutions)
74Section 57B amended (Return requirements for multi-rate PIEs)
75Section 61 amended (Disclosure of interest in foreign company or foreign investment fund)
76Section 68CC amended (Research and development tax credits: greater than $2 million approval)
77Section 89D amended (Taxpayers and others with standing may issue notices of proposed adjustment)
78Section 89DA amended (Taxpayer may issue notice of proposed adjustment for taxpayer assessment
79Section 108 amended (Time bar for amendment of income tax assessment)
80Section 120B amended (Persons excluded)
81Section 139A amended (Late filing penalty for certain returns)
82Section 139AB amended (Penalty for member of large multinational group failing to provide information)
83Section 157 amended (Deduction of tax from payments due to defaulters)
84Schedule 8 amended (Reporting of income information by individuals and treatment of certain amounts)
85Goods and Services Tax Act 1985
86Section 2 amended (Interpretation)
87Section 8 amended (Imposition of goods and services tax on supply)
88Section 11 amended (Zero-rating of goods)
89Section 11AB amended (Zero-rating of telecommunications services)
90Section 25 amended (Credit and debit notes)
91Section 51 amended (Persons making supplies in course of taxable activity to be registered)
92Section 34 amended (Repayment codes for New Zealand-based borrowers who derive salary or wages)
93Section 4 amended (Interpretation)
94Section 53 amended (Dividends)
95Land Transfer Act 2017
96Section 77 amended (Interpretation)
97Section 79 replaced (Content of tax statement)
79Content of tax statement
98Section 83 amended (Other provisions concerning use of tax information)
99Section 227 amended (Regulations)
100Schedule 1 amended
101Regulation 3 amended (Reportable unpaid tax threshold)

The Parliament of New Zealand enacts as follows: