Goods and Services Tax Amendment Act 1991
Goods and Services Tax Amendment Act 1991
Goods and Services Tax Amendment Act 1991
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Goods and Services Tax Amendment Act 1991
Public Act |
1991 No 11 |
|
Date of assent |
31 March 1991 |
|
Contents
An Act to amend the Goods and Services Tax Act 1985
BE IT ENACTED by the Parliament of New Zealand as follows:
1 Short Title
This Act may be cited as the Goods and Services Tax Amendment Act 1991, and shall be read together with and deemed part of the Goods and Services Tax Act 1985 (hereinafter referred to as the principal Act).
2 Interpretation
(1)
Section 2(1) of the principal Act is hereby amended by omitting from the definition of the term “due date”
the expression “section 19(6)”
, and substituting the expression “section 19c(1)”
.
(2)
Section 2(1) of the principal Act is hereby amended by inserting, after the definition of the term “nonprofit body”
, the following definition:
“‘Office of Parliament’ means the administrative and support services and staff of—
“(a)
The Parliamentary Commissioner for the Environment:
“(b)
The Wanganui Computer Centre Privacy Commissioner:
“(c)
The Ombudsmen:
“(d)
The Controller and Auditor-General:”.
(3)
Section 2(1) of the principal Act is hereby further amended by inserting in the definition of the term “public authority”
, after the words “other instruments”
, the words and includes offices of Parliament”.
(4)
Section 2(1) of the principal Act is hereby further amended by omitting from the definition of the term “tax payable”
the expression “section 19”
in both places where it occurs, and substituting in each case the expression “section 19c”
.
(5)
Subsections (1) and (4) of this section shall come into force on the 1st day of April 1991.
(6)
Subsections (2) and (3) of this section shall come into force on the 1st day of July 1991.
3 New sections substituted
(1)
The principal Act is hereby amended by repealing section 19, and substituting the following sections:
“19 Accounting basis
“(1)
Subject to this section and to sections 19a to 19c of this Act, every registered person shall account for tax payable on an invoice basis for the purposes of section 20 of this Act.
“(2)
The Commissioner may, on application in writing in that behalf by a registered person, direct that for the purposes of section 20 of this Act the registered person account for tax payable—
“(a)
On a payments basis, if the registered person satisfies the requirements of section 19a(1) of this Act; or
“(b)
On a hybrid basis.
“(3)
The Commissioner may, on application in writing in that behalf by a registered person who pursuant to a direction of the Commissioner accounts for tax payable on a hybrid basis or a payments basis, direct that the registered person account for tax payable—
“(a)
On an invoice basis; or
“(b)
On a hybrid basis; or
“(c)
On a payments basis, if the registered person satisfies the requirements of section 19a(1) or this Act.
“(4)
Where the Commissioner gives a direction in respect of a registered person’s accounting basis under subsection (2) or subsection (3) of this section or under section 19a(2) of this Act, the registered person shall account for tax payable on the accounting basis directed by the Commissioner with effect from—
“(a)
The commencement of the taxable period immediately following the taxable period during which the direction is given by the Commissioner, in any case to which paragraph (b) or paragraph (c) of this subsection does not apply; or
“(b)
The person’s registration under this Act, where the direction is given by the Commissioner before the end of the first taxable period of the person that follows that registration; or
“(c)
The commencement of such other taxable period as the Commissioner considers equitable, where the Commissioner and the person so agree.
“19a Requirements for accounting on payments basis
“(1)
The Commissioner shall not direct any registered person to account for tax payable on a payments basis under section 19 of this Act unless—
“(a)
The registered person is—
“(i)
A public authority that is appropriated public money otherwise than pursuant to Mode B or Mode C within the meaning of the Public Finance Act 1989; or
“(ii)
A local authority; or
“(iii)
A non-profit body; or
“(b)
In respect of the registered person—
“(i)
At the end of any month, the total value of the person’s taxable supplies in the period of 12 months then ending has not exceeded $1, 000, 000 (or such greater amount as the Governor-General may, from time to time, by Order in Council declare); or
“(ii)
In the period of 12 months beginning on the first day of any month, the total value of the person’s taxable supplies is not likely to exceed the amount specified in or under subparagraph (i) of this paragraph; or
“(c)
The Commissioner is satisfied that, due to the nature, volume, and value of taxable supplies made by the registered person and the nature of the accounting system employed by the person, it would be appropriate for the person to furnish returns under this Act on a payments basis.
“(2)
Where the Commissioner is satisfied (whether by a notification given by the registered person under section 53(cb) of this Act or otherwise) that a registered person who has been directed to account for tax payable on a payments basis has ceased to satisfy the conditions set out in paragraphs fa) to (c) of subsection (1) of this section, the Commissioner shall either—
“(a)
Direct that the registered person account for tax payable on an invoice basis; or
“(b)
If the registered person so requests in writing, direct that the registered person account for tax payable on a hybrid basis.
“(3)
For the purposes of subsection (2) of this section, a registered person shall not be treated as having ceased to satisfy the conditions of subsection (1) of this section by reason only that the total value of the registered person’s taxable supplies has exceeded, or as the case may he will exceed, the amount specified by or under subsection (1)(b) of this section solely as a consequence of—
“(a)
Any cessation of, or any substantial and permanent reduction in the size or scale of, any taxable activity carried on by that person; or
“(b)
The replacement of any plant or other capital asset used in any taxable activity carried on by that person.
“19b Particulars to be furnished and prepared where change in accounting basis
“(1)
Where the Commissioner directs a change in a registered person’s accounting basis under section 19 or section 19a of this Act, the registered person shall furnish to the Commissioner particulars in the prescribed form calculating the tax payable in respect of the change in accounting basis.
“(2)
The particulars required to be furnished under subsection (1) of this section shall be furnished to the Commissioner not later than the last day for furnishing a return pursuant to section 16 of the Act for the taxable period preceding that in which the direction of the Commissioner takes effect.
“(3)
Where the Commissioner directs a change in a registered person’s accounting basis under section 19 or section 19a of this Act, the registered person shall—
“(a)
Where the registered person has been directed to change from an invoice to a payments basis of accounting, or from a payments basis to an invoice basis, —
“(i)
Prepare a list of creditors of the registered person in relation to that person’s taxable activity, showing the amounts due by that person as at the last day of the taxable period preceding that in which the direction takes effect; and
“(ii)
Prepare a list of debtors of the registered person in relation to that person’s taxable activity, showing the amounts due to that person as at the last day of the taxable period preceding that in which the direction takes effect:
“(b)
Where the registered person has been directed to change from an invoice to a hybrid basis of accounting, or from a hybrid basis to an invoice basis, prepare a list of creditors of the registered person in relation to that person’s taxable activity, showing the amounts due by that person as at the last day of the taxable period preceding that in which the direction takes effect:
“(c)
Where that registered person has been directed to change from a payments basis to a hybrid basis of accounting, or from a hybrid basis to a payments basis, prepare a list of debtors of the registered person in relation to that person’s taxable activity, showing the amounts due to that person as at the last day of the taxable period preceding that in which the direction takes effect.
“19c Tax payable, or refund, where change in accounting basis
“(1)
Every registered person whose accounting basis is changed pursuant to section 19 or section 19a of this Act shall, not later than the last day allowed under section 19b(2) of this Act for furnishing particulars in respect of the change, pay to the Commissioner the tax payable (if any) as determined pursuant to this section.
“(2)
Where a registered person changes from an invoice basis to a payments basis of accounting, the tax payable under subsection (1) of this section shall be an amount determined in accordance with the following formula:
(a - b) - (c - d)
where—
a
is an amount equal to the aggregate amount of the input tax deducted pursuant to section 20(3) of this Act in relation to any taxable period up to and including the taxable period preceding that in which the direction changing the person’s accounting basis takes effect; and
b
is an amount equal to the aggregate amount of input tax that would have been deducted pursuant to section 20(3) of this Act if the person had, for those taxable periods, been accounting for tax payable on a payments basis; and
c
is an amount equal to the aggregate amount of the output tax accounted for pursuant to section 20(3) of this Act in relation to those taxable periods; and
d
is an amount equal to the aggregate amount of output tax that would have been accounted for pursuant to section 20(3) of this Act if the person had, for those taxable periods, been accounting for tax payable on a payments basis.
“(3)
Where a registered person changes from a payments basis to an invoice basis of accounting, the tax payable under subsection (1) of this section shall be an amount determined in accordance with the following formula:
(a - b) - (c - d)
where—
a
is an amount equal to the aggregate amount of output tax that would have been accounted for pursuant to section 20(3) of this Act if the person had, in relation to any taxable period up to and including the taxable period preceding that in which the direction changing the person’s accounting basis takes effect, been accounting for tax payable on an invoice basis; and
b
is an amount equal to the aggregate amount of the output tax accounted for in those taxable periods; and
c
is an amount equal to the aggregate amount of input tax that would have been deducted pursuant to section 20(3) of this Act if the person had, in relation to those taxable periods, been accounting for tax payable on an invoice basis; and
d
is an amount equal to the aggregate amount of input tax deducted pursuant to section 20(3) of this Act in those taxable periods.
“(4)
Where a registered person changes from a hybrid basis to an invoice basis of accounting, the tax payable under subsection (1) of this section shall be an amount determined in accordance with the following formula:
a - b
where—
a
is an amount equal to the aggregate amount of input tax deducted pursuant to section 20(3) of this Act in relation to any taxable period up to and including the taxable period preceding that in which the direction changing the person’s accounting basis takes effect; and
b
is an amount equal to the aggregate amount of input tax that would have been deducted pursuant to section 20(3) of this Act if the person had, for those taxable periods, been accounting for tax payable on an invoice basis
“(5)
Where a registered person changes from a hybrid basis to a payments basis of accounting, the tax payable under subsection (1) of this section shall be an amount determined in accordance with the following formula:
a - b
where—
a
is an amount equal to the aggregate amount of output tax that would have been accounted for pursuant to section 20(3) of this Act if the person had, in relation to any taxable period up to and including the taxable period preceding that in which the direction changing the person’s accounting basis takes effect, been accounting for tax payable on a payments basis; and
b
is an amount equal to the aggregate amount of output tax accounted for pursuant to section 20(3) of this Act in those taxable periods.
“(6)
Where a registered person changes from an invoice basis to a hybrid basis of accounting, the tax payable under subsection (1) of this section shall be an amount determined in accordance with the following formula:
a - b
where—
a
is an amount equal to the aggregate amount of input tax deducted pursuant to section 20(3) of this Act in relation to any taxable period up to and including the taxable period preceding that in which the direction changing the person’s accounting basis takes effect; and
b
is an amount equal to the aggregate amount of input tax that would have been deducted pursuant to section 20(3) of this Act if the person had, for those taxable periods, been accounting for tax payable on a hybrid basis.
“(7)
Where a registered person changes from a payments basis to a hybrid basis of accounting, the tax payable under subsection (1) of this section shall be an amount determined in accordance with the following formula:
a - b
where—
a
is an amount equal to the aggregate amount of output tax that would have been accounted for pursuant to section 20(3) of this Act if the person had, in relation to any taxable period up to and including the taxable period preceding that in which the direction changing the person’s accounting basis takes effect, been accounting for tax payable on a hybrid basis; and
b
is an amount equal to the aggregate amount of output tax accounted for pursuant to section 20(3) of this Act in those taxable periods.
“(8)
Subject to this Act, if, in relation to any particulars required to be furnished by section 19b of this Act, the amount determined in accordance with subsection (2) or subsection (3) or subsection (4) or subsection (5) of this section is a negative amount, the amount of that negative amount shall be refunded to the registered person by the Commissioner pursuant to section 46 of this Act.
“(9)
For the purposes of this Act, any previous adjustment made to input tax or output tax, as the case may be, when a registered person changed—
“(a)
From an invoice basis to a payments or a hybrid basis, as the case may be; or
“(b)
From a payments basis to an invoice or a hybrid basis, as the case may be; or
“(c)
From a hybrid basis to an invoice or a payments basis, as the case may be, —
shall be deemed to have been deducted, or accounted for, as the case may be, pursuant to section 20(3) of this Act.”
(2)
The following enactments are hereby consequentially repealed:
(a)
Section 16(2) of the Goods and Services Tax Amendment Act 1986:
(b)
Section 5 of the Goods and Services Tax Amendment Act 1989:
(c)
So much of the First Schedule to the Public Finance Act 1989 as relates to section 19(2)(a) of the Goods and Services Tax Act 1985:
(d)
Section 6(1) and (2) of the Goods and Services Tax Amendment Act (No. 2) 1990.
(3)
This section shall come into force on the 1st day of April 1991, and shall apply to allow changes in a registered person’s accounting basis in respect of taxable periods commencing on and after that date.
4 Calculation of tax payable
(1)
Section 20(3)(b) of the principal Act is hereby amended by inserting, after the words ‘payable on a payments basis”, the words “or a hybrid basis”
.
(2)
Section 20(4)(a) of the principal Act is hereby amended by inserting, after the words “payable on an invoice basis”
, the words “or a hybrid basis”
.
(3)
This section shall come into force on the 1st day of April 1991.
5 Consequential cross-references
(1)
Section 20a(1) of the principal Act (as inserted by section 11 of the Goods and Services Tax Amendment Act 1988) is hereby amended—
(a)
By omitting from paragraph (a) of the definition of the term “goods and services tax payable”
the expression “sections 19 and 20”
, and substituting the expression “sections 19 to 20”
:
(b)
By omitting from paragraph (b) of that definition the expression “section 19”
, and substituting the expression “section 19c”
.
(2)
Section 26(1) of the principal Act is hereby amended by inserting in the second proviso, after the expression “section 19”
, the expression “or section 19a”
.
(3)
Section 32(1) of the principal Act is hereby amended by inserting, after paragraph (c), the following paragraph:
“(ca)
Section 19a:”.
(4)
Section 45(2) of the principal Act is hereby amended by omitting from paragraph (b) the expression “section 19(9), and substituting the expression ”
section 19c(8)”.
(5)
Section 46 of the principal Act (as amended by section 12 of the Goods and Services Tax Amendment Act 1990) is hereby amended by omitting the expression “section 19(9)”
, wherever it occurs, and substituting in each case the expression “section 19c(8)”
.
(6)
Section 53 of the principal Act is hereby amended by omitting from paragraph (cb) (as inserted by section 2(4) of the Goods and Services Tax Amendment Act (No. 2) 1988) the expression “section 19(2)”
, and substituting the expression “section 19a”
.
(7)
Section 55(7) of the principal Act is hereby amended by inserting in paragraph (b), after the expression “section 19”
, the expression “or section 19a”
.
(8)
Section 56(6) of the principal Act (as amended by section 2(7) of the Goods and Services Tax Amendment Act (No. 2) 1988) is hereby amended by omitting the expression “sections 15, 15a, and 19”
wherever it occurs, and substituting in each case the expression “sections 15, 15a, 19, and 19a”
.
(9)
Section 75(2) of the principal Act is hereby amended by omitting from paragraph (c) the expression “section 19(10), and substituting the expression ”
section 19b(3)”.
(10)
Section 76(3) of the principal Act is hereby amended by omitting the expression “19(2)”
, and substituting the expression “19a(1)”
.
(11)
This section shall come into force on the 1st day of April 1991.
6 Adjustments to tax payable for persons furnishing returns on payments basis following change in rate of tax
(1)
Section 78b(1)(a) of the principal Act (as substituted by section 22(1) of the Finance Act 1989) is hereby amended—
(a)
By omitting from subparagraph (ii) the expression “basis,— ”
, and substituting the expression “basis; or”
:
(b)
By inserting, after subparagraph (ii), the following subparagraph:
“(ii)
Any such payment is made in respect of any qualifying supply referred to in subsection (2a)(aa) of this section by a registered person who, as at that date, is required to account for tax payable on a hybrid basis, —”.
(2)
Section 78b(2a) of the principal Act (as so substituted) is hereby amended by inserting, after paragraph (a), the following paragraph:
“(aa)
In relation to a person who, as at the date on which the new rate of tax comes into force, is required to account for tax payable on a hybrid basis, —
“(i)
Any taxable supply made to the registered person; or
“(ii)
Any supply made to the registered person that is a supply of secondhand goods to which paragraph (c) of the definition of the term ‘input tax’ in section 2(1) of this Act applies; and”.
(3)
Section 78b(6a)(a) of the principal Act (as inserted by section 16(1) of the Goods and Services Tax Amendment Act (No. 2) 1989) is hereby amended—
(a)
By inserting, after the expression “section 19”
, the expression “or section 19a”
:
(b)
By inserting, after the words “invoice basis”
, the words “or a hybrid basis”
.
(4)
Section 78b(6b)(a) of the principal Act (as so inserted) is hereby amended—
(a)
By inserting, after the expression “section 19”
, the expression “or section 19a”
:
(b)
By inserting, after the words “invoice basis”
, the words “or a hybrid basis”
.
(5)
This section shall come into force on the 1st day of April 1991.
7 Change in accounting basis coinciding with or occurring after change in rate of tax
(1)
Section 78c(1) of the principal Act (as inserted by section 23 of the Finance Act 1989) is hereby amended by repealing paragraph (c), and substituting the following paragraph:
“(c)
The Commissioner has during that taxable period, at any time before the date on which the new rate of tax comes into force, pursuant to section 19 or section 19a of this Act directed the person to change—
“(i)
From an invoice basis to a payments or a hybrid basis; or
“(ii)
From a payments basis to an invoice or a hybrid basis; or
“(iii)
From a hybrid basis to an invoice or a payments basis—’.
(2)
Section 78c of the principal Act (as so inserted) is hereby amended—
(a)
By omitting from subsection (1) the words “section 19 of this Act (except subsection (5) of that section)”
, and substituting the words “sections 19 to 19c of this Act (except section 19b(2))”
:
(b)
By inserting in subsection (2), after the words “pursuant to section 19”
, the words “or section 19a”
:
(c)
By omitting from subsection (2)(a) the words “under subsections (7) and (8) of section 19”
, and substituting the words “under section 19c”
.
(3)
This section shall come into force on the 1st day of April 1991.
This Act is administered in the Inland Revenue Department.
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Versions
Goods and Services Tax Amendment Act 1991
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