Income Tax Amendment Act 1992
Income Tax Amendment Act 1992
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Income Tax Amendment Act 1992
Income Tax Amendment Act 1992
Public Act |
1992 No 1 |
|
Date of assent |
13 March 1992 |
|
Contents
An Act to amend the Income Tax Act 1976
BE IT ENACTED by the Parliament of New Zealand as follows:
1 Short Title and commencement
(1)
This Act may be cited as the Income Tax Amendment Act 1992, and shall be read together with and deemed part of the Income Tax Act 1976 (hereinafter referred to as the principal Act).
(2)
Except as otherwise provided in this Act, this Act shall come into force on the day on which it receives the Royal assent.
Part I Income Tax
2 Interpretation
(1)
Section 2 of the principal Act is hereby amended by repealing the definition of the term “friendly society”
(as amended by section 161(1) of the Friendly Societies and Credit Unions Act 1982), and substituting the following definition:
“‘Friendly society’ means any society or credit union or association of credit unions registered or deemed to be registered under the Friendly Societies and Credit Unions Act 1982:”.
(2)
Section 2 of the principal Act is hereby further amended by inserting in paragraph (ca) of the definition of the term “salary or wages”
(as inserted by section 63(1) of the Income Tax Amendment Act (No. 5) 1988), after the expression “Education Act 1964”
, the expression “, section 303 of the Education Act 1989, or any enactment in substitution therefor”
.
(3)
Section 2 of the principal Act is hereby further amended by inserting, after the definition of the term “shearing shed hand”
, the following definition:
“‘Source deduction payment’ has the meaning ascribed to that term by section 6 of this Act:”.
(4)
Section 2 of the principal Act is hereby further amended by inserting, after the definition of the term “tax deduction certificate”
, the following definition:
“‘Tax file number’ means any identification number that has been allocated to a person by the Commissioner either generally for the purposes of this Act or specifically for the purpose of issue to that person of a certificate of exemption in accordance with section 327m of this Act:”.
(5)
The Friendly Societies and Credit Unions Act 1982 is hereby consequentially amended by repealing so much of the Sixth Schedule as relates to the Income Tax Act 1976.
(6)
Subsections (1) and (5) of this section shall apply to income derived on or after the 1st day of April 1992.
3 References to income years, and to non-standard accounting years, etc.
The principal Act is hereby amended by inserting, after section 2, the following section:
“2a
“(1)
In this Act, references to any income year that is identified by means of a reference to 2 calendar years (whether or not the years are mentioned in full or in shortened form) are references to the income year that—
“(a)
Commences on the 1st day of April in the earlier of those 2 calendar years; and
“(b)
Ends on the 31st day of March in the later of those 2 calendar years.
“(2)
In this Act, unless the context otherwise requires,—
“(a)
References to persons with—
“(i)
A standard balance date; or
“(ii)
A standard accounting year; or
“(iii)
A standard income year—
are references to persons who furnish a return of income under section 9 of this Act for an income year ending with the 31st day of March, being the income year that is the income year in respect of which the reference is made:
“(b)
References to persons with—
“(i)
A non-standard balance date; or
“(ii)
A non-standard accounting year; or
“(iii)
A non-standard income year—
are references to persons who furnish a return of income under section 15 of this Act for an accounting year ending with an annual balance date other than the 31st day of March, being, unless the context otherwise requires, the accounting year that corresponds to the income year in respect of which the reference is made:
“(c)
References to persons with—
“(i)
An early balance date; or
“(ii)
An early accounting year; or
“(iii)
An early income year—
are references to persons who furnish a return of income under section 15 of this Act for an accounting year ending with an annual balance date that falls between the 1st day of October and the following 30th day of March (both days inclusive), being, unless the context otherwise requires, the accounting year that corresponds to the income year in respect of which the reference is made:
“(d)
References to persons with—
“(i)
A late balance date; or
“(ii)
A late accounting year; or
“(iii)
A late income year—
are references to persons who furnish a return of income under section 15 of this Act for an accounting year ending with an annual balance date that falls between the 1st day of April and the following 30th day of September (both days inclusive), being, unless the context otherwise requires, the accounting year that corresponds to the income year in respect of which the reference is made.
“(3)
In this Act, unless the context otherwise requires, where any statement is made, in relation to any provision or provisions, that references to income years include references to non-standard accounting years,—
“(a)
References in the provision or provisions to income years shall be read as including, in the case of persons with non-standard accounting years, references to the corresponding non-standard accounting years of such persons; and
“(b)
The provision or provisions shall, in relation to such non-standard accounting years, apply accordingly with any necessary modifications.’
4 Meaning of term “source deduction payment”
Section 6 of the principal Act is hereby amended by inserting in both subsection (2) and subsection (3), in each case after the expression “except Part Xb”
(as inserted by section 4(1) of the Income Tax Amendment Act 1986), the expression “and section 432”
.
5 Commissioner may approve furnishing of return information by electronic means
The principal Act is hereby amended by inserting, after section 14, the following section:
“14a
“(1)
For the purposes of this Act, the Commissioner may give approval to any taxpayer, or to any person who acts as agent to any taxpayer, to transmit by electronic means in the prescribed electronic format the information contained in any return of the taxpayer.
“(2)
Any approval given under subsection (1) of this section—
“(a)
May relate to any individual taxpayer or agent or to any class or classes of taxpayers:
“(b)
May relate to any one or more classes of return:
“(c)
Shall be subject to such conditions (if any) as may be specified by the Commissioner, whether generally or in any particular case.
“(3)
Where any taxpayer or agent of a taxpayer transmits to the Commissioner in the prescribed electronic format the information contained in any return of the taxpayer in accordance with an approval given under subsection (1) of this section,—
“(a)
The taxpayer shall retain or cause to be retained a hard-copy transcript of the information so transmitted; and
“(b)
The hard-copy transcript shall be deemed to be the return of the taxpayer, and shall be signed by the taxpayer in accordance with section 17a of the Inland Revenue Department Act 1974 and held by the taxpayer on behalf of the Commissioner; and
“(c)
The information transmitted to the Commissioner shall be treated for the purposes of this Act as if it were a return furnished pursuant to section 9 of this Act or to such other provision or provisions of this Act as relate to the kind of return in question.”
6 Dates by which annual returns to be filed
(1)
Section 17 of the principal Act is hereby amended by repealing subsections (1) and (2) (as amended by sections 2 and 12(2) of the Income Tax Amendment Act (No. 3) 1987), and substituting the following subsections:
“(1)
In this section, ‘IR5 taxpayer’ means, in relation to an income year, a natural person where—
“(a)
The only income of the person in that year is New Zealand sourced income that consists only of any one or more of the following:
“(i)
Salary or wages; or
“(ii)
Extra emoluments; or
“(iii)
Resident withholding income; and
“(b)
The person does not derive in that income year any income consisting of—
“(i)
Withholding payments; or
“(ii)
Beneficiary income as defined in section 226(1) of this Act.
“(2)
The annual returns of income required under this Act shall be furnished to the Commissioner as follows:
“(a)
In the case of an IR5 taxpayer with a standard balance date, not later than the 7th day of June in each year:
“(b)
In the case of any taxpayer with a late balance date, not later than the 7th day of the month which is the 4th month after the end of the taxpayer’s accounting year:
“(c)
In all other cases, not later than the 7th day of July in each year.”
(2)
Section 17(5) of the principal Act (as inserted by section 5(1) of the Income Tax Amendment Act (No. 2) 1985) is hereby consequentially amended by omitting from subparagraph (b)(i) the expression “subsections (1) and (2)”
and substituting the expression “subsection (2)”
.
(3)
Sections 2 and 12(2) of the Income Tax Amendment Act (No. 3) 1987 are hereby consequentially repealed.
(4)
This section shall apply with respect to annual returns of income required to be furnished in relation to income derived in the 1991–92 income year and subsequent years.
7 Limitation of time for amendment of assessment
Section 25(1) of the principal Act is hereby amended by omitting the words “assessment was made”
, and substituting the words “notice of original assessment was issued”
.
8 Evidence of returns and assessments
(1)
Section 28 of the principal Act is hereby amended—
(a)
By inserting, after the words “the Commissioner”
where they first occur, the words “or a Regional Controller”
:
(b)
By inserting, after the words “the Commissioner”
where they secondly occur, the words “or Regional Controller”
.
(2)
Section 28 of the principal Act is hereby further amended by adding the following subsection:
“(2)
The production of any document under the hand of the Commissioner or a Regional Controller or a District Commissioner purporting to be a hard-copy transcript of all or any information transmitted by electronic means in accordance with section 14a or any other provision of this Act shall in all Courts and in all proceedings (including proceedings before a Taxation Review Authority) be sufficient evidence of the information electronically transmitted, and all Courts and Taxation Review Authorities shall in all proceedings take judicial notice of the signature of the Commissioner or Regional Controller or District Commissioner to any such hard-copy transcript.”
9 How objections to assessments originated
(1)
Section 30(1) of the principal Act is hereby amended by inserting, after the words “notice of assessment is given”
, the following words and paragraphs:
“, or within such extended time as the Commissioner may allow on the application of the person made before the expiry of—
“(a)
The time for objection specified in the notice of assessment; or
“(b)
Any extended time for objection previously allowed by the Commissioner in respect of the assessment:”.
(2)
Section 30(2) of the principal Act is hereby amended by inserting, after the words “notice of assessment”
, the words “, or after such extended time as the Commissioner may allow under subsection (1) of this section,”
.
10 When objection may be referred in first instance to High Court
(1)
Section 33 of the principal Act is hereby amended by inserting, after subsection (6), the following subsections:
“(6a)
The case so stated and signed shall be filed by the Commissioner not later than 6 months after—
“(a)
In the case of an objection that relates to a question of law only, the date on which the Commissioner receives from the objector written notice in respect of the objection under—
“(i)
Subsection (2)(a) of this section, where it is the objector who requires the case to be stated; or
“(ii)
Section 31(2) of this Act, where it is the Commissioner who determines to state the case:
“(b)
In the case of an objection that relates to a question of fact (whether or not it also relates to a question of law),—
“(i)
The date (if any) on which both the Commissioner and the objector consent under subsection (4) of this section to the referral of the objection to the High Court; or
“(ii)
The date (if any) on which the High Court grants leave under that subsection for the objection to be referred directly to the High Court:
“Provided that the High Court may on the application of the Commissioner extend any time limit specified in this subsection for the filing of a case, whether the application is made before or after the expiry of the time limit.
“(6b)
Where the Commissioner fails to file a case within the time specified in subsection (6a) of this section or within such extended time as the High Court may allow under that subsection, the objector may apply to the High Court for an order directing the Commissioner to allow the objector’s objection, and the High Court—
“(a)
Shall make such an order accordingly, unless it is satisfied that there are reasonable grounds for the failure to file the case:
“(b)
May, where it refuses to make such an order, make such other orders as in the circumstances it thinks fit, whether relating to the filing of the case in the High Court, the remitting of the objection to a Taxation Review Authority for hearing and determination, or otherwise.”
(2)
This section shall apply to any objection in respect of which the written notice of the objector under section 31(2) or section 33(2)(a) or section 33(3)(a) of the principal Act is received by the Commissioner on or after the 1st day of July 1992.
11 Incomes wholly exempt from tax
(1)
Section 61 of the principal Act is hereby amended by repealing paragraph (9) (as amended by section 22(1) of the Income Tax Amendment Act (No. 4) 1986), and substituting the following paragraph:
“(9)
The income of a New Zealand company, being a company—
“(a)
That the Commissioner is satisfied derives its income exclusively or principally from Niue; and
“(b)
That, if it were a foreign company as defined in section 245a of this Act, would not at any time during the income year in which the income was derived be a controlled foreign company within the meaning of section 245c of this Act:
“Provided that the exemption under this paragraph shall not apply to any income derived by the company from sources in New Zealand:”.
(2)
Section 61 of the principal Act is hereby further amended by inserting, after paragraph (23), the following paragraph:
“(23a)
Income derived on or after the 15th day of May 1991 and before the 1st day of April 1992 by any union, employers organisation, or association that, having been registered or deemed to be registered under the Labour Relations Act 1987 immediately before the commencement of section 185 of the Employment Contracts Act 1991, is deemed by the said section 185 to have become an incorporated society incorporated under the Incorporated Societies Act 1908, except so far as any such income is derived from business carried on beyond the circle of the union’s, organisation’s, or association’s membership:”.
(3)
Section 61(37) of the principal Act (as amended by section 64(1) of the Income Tax Amendment Act (No. 5) 1988) is hereby amended by inserting, after the expression “Education Act 1964”
, the expression “, section 303 of the Education Act 1989, or any enactment in substitution therefor”
.
(4)
Section 61(39) of the principal Act is hereby amended by omitting the words “registered or deemed to be registered under the Friendly Societies and Credit Unions Act 1982”
.
(5)
Section 61 of the principal Act is hereby further amended by repealing paragraph (48) (as amended by section 22(2) of the Income Tax Amendment Act (No. 4) 1986), and substituting the following paragraph:
“(48)
Dividends from a New Zealand company, being a company that the Commissioner is satisfied derives its income exclusively or principally from Niue, derived by any person other than—
“(a)
A person who is resident in New Zealand; or
“(b)
A company that, at any time during the income year in which the dividends were derived, is a controlled foreign company within the meaning of section 245c of this Act; or
“(c)
A trustee of a trust where at any time during the income year in which the dividends were derived any settlor (as defined in section 226 of this Act) or any beneficiary of the trust is resident in New Zealand:
“Provided that the exemption under this paragraph shall not apply to any dividends to the extent that those dividends constitute distribution of income or gains derived by the company from sources in New Zealand:”.
(6)
Section 22 of the Income Tax Amendment Act (No. 4) 1986 is hereby consequentially amended by repealing subsections (1), (2), and (4).
(7)
Subsections (1), (4), and (6) of this section shall apply to income derived on or after the 1st day of April 1992.
(8)
Subsection (5) of this section shall apply to dividends derived on or after the 1st day of April 1992.
12 New start grants for farmers
Section 64fb(2) of the principal Act (as inserted by section 37(1) of the Income Tax Amendment Act 1989) is hereby amended—
(a)
By inserting in paragraph (a), after the expression “30th day of September 1990”
, the expression “(or the 30th day of September 1991, in the case of the drought conditions referred to in paragraph (c) of the definition of the term ‘adverse event’)”
:
(b)
By omitting from paragraph (b) the expression “the 30th day of September 1990”
, and substituting the expression “that 30th day of September”
.
13 Items included in assessable income
Section 65(2)(da) of the principal Act (as inserted by section 65(1) of the Income Tax Amendment Act (No. 5) 1988) is hereby amended by inserting, after the expression “Education Act 1964”
, the expression “, section 303 of the Education Act 1989, or any enactment in substitution therefor”
.
14 Income credited in account or otherwise dealt with—provisional tax of shareholder-employees
Section 8(4) of the Income Tax Amendment Act (No. 3) 1991 is hereby amended by adding to paragraph (b) the expression “;or”
, and inserting, after that paragraph, the following paragraph:
“(c)
Under section 384(2)(a)(ii) of the principal Act the amount of additional tax payable by such a person in respect of income derived in the 1991–92 income year,—”.
15 Accrual expenditure
Section 104a of the principal Act (as inserted by section 11 of the Income Tax Amendment Act 1978) is hereby amended by adding the following subsection:
“(8)
For the avoidance of doubt, it is hereby declared that, for the purposes of this section and section 75 of this Act, and also for the purposes of section 6(2) of this Act insofar as it relates to this section and the said section 75,—
“(a)
The term ‘employee’ includes a director; and
“(b)
The term ‘monetary remuneration’ includes directors’ fees.”
16 Trade associations
(1)
The principal Act is hereby amended by inserting, after section 197h, the following section:
“197i
“(1)
In this section, the term ‘trade association’ means any—
“(a)
Union, employers organisation, or association deemed to be registered under the Incorporated Societies Act 1908 pursuant to section 185 of the Employment Contracts Act 1991; or
“(b)
Any other body or association whose income, having been exempt from tax pursuant to section 61(23) of this Act as income of a friendly society, ceases to be so exempt on and after the 1st day of April 1992 by virtue of the enactment of section 2(1) of the Income Tax Amendment Act 1992.
“(2)
For the purpose of determining the amount of any depreciation allowable under section 108 of this Act to any trade association in respect of the depreciation of any asset that—
“(a)
Was acquired by the trade association before the 1st day of April 1992; and
“(b)
Was used in tax exempt activities of the trade association before the 1st day of April 1992,—the Commissioner shall, subject to subsection (3) of this section, have regard to the cost of the asset and to all amounts that the Commissioner would have allowed as a deduction under section 108 of this Act if the asset had been used in the production of assessable income of the trade association for—
“(c)
The income year in which the asset was acquired; and
“(d)
Every subsequent income year up to and including the 1991–92 income year.
“(3)
Where any asset to which subsection (2) of this section applies is a building, the Commissioner shall, when determining the amount of the deduction allowable in respect of the asset under section 108 of this Act, have regard to the amount of expenditure that the trade association incurred in acquiring the asset.
“(4)
Where there is any question under this section as to—
“(a)
The cost of any asset acquired by a trade association before the 1st day of April 1992; or
“(b)
The date on which a trade association acquired, altered, or added to such asset,—
it shall be determined by agreement between the trade association and the Commissioner or, in default of such agreement, by the Commissioner.”
(2)
This section shall come into force on the 1st day of April 1992.
17 Transitional provisions—attributed foreign income and losses and foreign investment fund income and losses
(1)
Section 15 of the Income Tax Amendment Act (No. 5) 1988 is hereby amended by omitting from the proviso (as added by section 9(1) of the Income Tax Amendment Act (No. 2) 1991) the expression “1991”
, and substituting the expression “1992”
.
(2)
Section 245y of the principal Act (as inserted by section 24 of the Income Tax Amendment Act (No. 5) 1988 and amended by section 55(1) of the Income Tax Amendment Act 1989 and section 9 of the Income Tax Amendment Act (No. 2) 1991) is hereby amended—
(a)
By omitting from subsection (1) the expression “1991”
in the 5 places it occurs, and substituting in each case the expression “1992”
:
(b)
In subsection (1a)—
(i)
By omitting the expression “or foreign entity”
:
(ii)
By omitting the words “or entity”
where they twice occur:
(c)
By omitting from subsection (2) the expression “1991”
, and substituting the expression “1992”
:
(d)
In subsection (3a)—
(i)
By omitting the expression “1991”
in the 2 places it occurs, and substituting in each case the expression “1992”
:
(ii)
By omitting the expression “1992”
, and substituting the expression “1993”
.
(e)
By omitting from subsection (5) the expression “1991”
, and substituting the expression “1992”
:
(f)
By omitting from subsection (6) the expression “1991”
in the 2 places it occurs, and substituting in each case the expression “1992”
:
(g)
In subsection (9)—
(i)
By omitting the expression “6th day of March 1991”
in the 3 places it occurs, and substituting in each case the expression “19th day of December 1991”
:
(ii)
By omitting the expression “31st day of March 1991”
and substituting the expression “31st day of March 1992”
:
(iii)
By omitting the expression “1st day of April 1991”
and substituting the expression “1st day of April 1992”
:
(h)
In subsection (10)—
(i)
By omitting the expression “1991”
, and substituting the expression “1992”
:
(ii)
By omitting the expression “1992”
, and substituting the expression “1993”
:
(i)
By omitting from subsection (11) the expression “1991”
, and substituting the expression “1992”
.
(3)
Section 9(2) of the Income Tax Amendment Act (No. 2) 1991 is hereby consequentially repealed.
18 Objections to determinations
(1)
Section 299(1) of the principal Act is hereby amended by inserting, after the words “on behalf of the Commissioner”
, the following words and paragraphs:
“or within such extended time as the Commissioner may allow on the application of the person made before the expiry of—
“(a)
That one-month period; or
“(b)
Any extended time for objection previously allowed by the Commissioner in respect of the determination:’’.
(2)
Section 299(2) of the principal Act is hereby amended by inserting, after the words “of this section”
, the words “, or after such extended time as the Commissioner may allow under that subsection,”
.
19 Interpretation—resident withholding tax deductions
Section 327a(1) of the principal Act (as inserted by section 12(1) of the Income Tax Amendment Act (No. 2) 1989) is hereby amended by repealing the definition of the term “tax file number”
.
20 Records to be kept
(1)
Section 327p(6)(b) of the principal Act (as inserted by section 12(1) of the Income Tax Amendment Act (No. 2) 1989) is hereby amended—
(a)
By omitting the expression “10 years”
, and substituting the expression “7 years”
:
(b)
By adding the expression “;and”
.
(2)
Section 327p(6) of the principal Act (as so inserted) is hereby amended by adding the following paragraph:
“(c)
Where the Commissioner so notifies the person in writing in accordance with subsection (8) of this section, retain such of those records as may be specified by the Commissioner for such further period as the Commissioner may specify under that subsection.”
(3)
Section 327p of the principal Act (as so inserted) is hereby further amended by adding the following subsection:
“(8)
The Commissioner may, by notice in writing given before the expiry of the 7-year retention period specified in subsection (6) of this section, require a person to retain any records specified by the Commissioner for a further period not exceeding 3 years following the expiry of the 7-year period where—
“(a)
The affairs of the person are or have been under audit or investigation by the Commissioner; or
“(b)
The affairs of any person to whom the records relate are or have been under audit or investigation by the Commissioner; or
“(c)
The Commissioner intends to conduct such an audit or investigation before the expiry of the retention period as so extended, or is actively considering any such audit or investigation.”
(4)
This section shall come into force on the 1st day of April 1992.
21 Taxable value of fringe benefit
(1)
Section 336p(1)(a) of the principal Act (as inserted by section 34(1) of the Income Tax Amendment Act (No. 2) 1985) is hereby amended—
(a)
By inserting, after the words “paid by the employee”
, the words “(or, where section 336n(3) of this Act applies, by the associated person)”
:
(b)
By inserting, after the words “improvement by the employee”
, the words “or associated person”
.
(2)
Section 336p(1)(b) of the principal Act (as so inserted) is hereby amended—
(a)
By inserting after the words “which is owned in part by the employee”
, the words (or, where section 336n(3) of this Act applies, by the associated person) and which is not valued by the employer under clause 3 of the Tenth Schedule to this Act on a cost price or market value that is exclusive of goods and services tax”:
(b)
By inserting in subparagraph (ii), after the word “employee”
, the words “or the associated person”
:
(c)
By omitting from subparagraph (iii) the expression “10 percent,— ”
, and substituting the expression “10 percent:”
:
(d)
By omitting the words “of the vehicle to the employee,”
and substituting the words “(determined inclusive of goods and services tax in accordance with paragraphs (a) and (b) of clause 2 of the Tenth Schedule to this Act) of the vehicle to the employee or the associated person”
.
(3)
Section 336p(1) of the principal Act (as so inserted) is hereby amended by inserting, after paragraph (b), the following paragraph:
“(c)
In relation to a motor vehicle which is owned in part by the employee (or, where section 336n(3) of this Act applies, by the associated person), and which is valued by the employer under clause 3 of the Tenth Schedule to this Act on a cost price or market value that is exclusive of goods and services tax, an amount equal to—
“(i)
Where the employer pays fringe benefit tax on a quarterly basis, a percentage calculated in accordance with the following formula:
2.5 + (2.5 × a)
where a is the rate of goods and services tax specified in clause 3(b)(ii) of the Tenth Schedule to this Act as applying in respect of the employer and the relevant quarter:
“(ii)
Where the employer pays fringe benefit tax on an annual basis pursuant to section 336ta of this Act, a percentage for each quarter within the relevant year during which the vehicle was owned in part by the employee or the associate calculated in accordance with the following formula:
2.5 + (2.5 × a)
where a is the rate of goods and services tax specified in clause 3(b)(ii) of the Tenth Schedule to this Act as applying in respect of the employer and each relevant quarter:
“(iii)
Subject to subsections (1a) and (1b) of this section, where the employer pays fringe benefit tax on an income year basis pursuant to section 336tb of this Act, a percentage calculated in accordance with the following formula:
10 + (10 × b)
where b is the rate of goods and services tax specified in clause 3(b)(iii) of the Tenth Schedule to this Act as applying in respect of the employer and the relevant income year of the employer,—
of so much of the cost price of the vehicle as is the cost price (determined exclusive of goods and services tax in accordance with clause (3)(b)(i) of the Tenth Schedule to this Act) of the vehicle to the employee or the associated person.”
22 Assessment and payment of tax
(1)
Section 361 of the principal Act is hereby amended by repealing subsection (2) (as substituted by section 24 of the Income Tax Amendment Act (No. 3) 1990), and substituting the following subsection:
“(2)
All income tax payable under an assessment made in accordance with subsection (1) of this section and not otherwise due and payable shall be due and payable on the 7th day of February in the next income year or on such earlier date as is specified in the notice of assessment given to the taxpayer, not being a date that is less than 30 days after the date of the notice.”
(2)
Section 24 of the Income Tax Amendment Act (No. 3) 1990 is hereby consequentially repealed.
(3)
This section shall apply with respect to the tax on income derived in the 1991–92 income year and subsequent years.
23 Interpretation—family support credit of tax
Section 374a of the principal Act (as inserted by section 17(1) of the Income Tax Amendment Act (No. 2) 1986) is hereby amended by inserting in paragraph (b) of the definition of the term “financially independent”
(as inserted by section 13(3) of the Income Tax Amendment Act (No. 2) 1991), after the expression “(S.R. 1988/308)”
, the expression “, the Student Allowances Regulations 1991 (S.R. 1991/295), or any regulations in substitution therefor”
.
24 Family support credit of tax
Section 374d of the principal Act (as inserted by section 17(1) of the Income Tax Amendment Act (No. 2) 1986) is hereby amended—
(a)
By omitting from item y of the formula in subsection (2) (as substituted by section 70 of the Income Tax Amendment Act (No. 5) 1988) the words “entitled to receive a family benefit”
, and substituting the words “a principal caregiver”
:
(b)
By omitting from item y of the formula in subsection (3) (as so substituted) the words “entitled to receive a family benefit”
, and substituting the words “a principal caregiver”
.
25 Guaranteed minimum family income credit of tax
Section 374e(1) of the principal Act (as inserted by section 17 of the Income Tax Amendment Act (No. 2) 1986) is hereby amended by omitting from the definition of the term “qualifying person”
(as substituted by section 15(1) of the Income Tax Amendment Act (No. 2) 1991) the words “specified war pension”
, and substituting the words “veteran’s pension”
.
26 Assessment and payment of terminal tax
(1)
Section 388 of the principal Act (as inserted by section 17 of the Income Tax Amendment Act (No. 3) 1988) is hereby amended by repealing subsection (2) (as substituted by section 28 of the Income Tax Amendment Act (No. 3) 1990), and substituting the following subsection:
“(2)
All income tax payable in accordance with subsection (1) of this section and not previously due and payable shall be due and payable on the 7th day of the month specified in the Eighth Schedule to this Act as being the month for payment of terminal tax.”
(2)
Section 28 of the Income Tax Amendment Act (No. 3) 1990 is hereby consequentially repealed.
(3)
This section shall apply with respect to the tax on income derived in the 1991–92 income year and subsequent years.
27 Payment of tax
(1)
Section 395 of the principal Act is hereby amended by repealing subsection (2) (as substituted by section 29 of the Income Tax Amendment Act (No. 3) 1990), and substituting the following subsection:
“(2)
All income tax payable on income derived in any income year by any person (other than a company to which subsection (1) of this section applies) and not otherwise due and payable under this Act shall be due and payable on the 7th day of the month specified in the Eighth Schedule to this Act as being the month for payment of terminal tax.”
(2)
Section 29 of the Income Tax Amendment Act (No. 3) 1990 is hereby consequentially repealed.
(3)
This section shall apply with respect to the tax on income derived in the 1991–92 income year and subsequent years.
28 Relief in cases of serious hardship
Section 414 of the principal Act is hereby amended by inserting, after subsection (2a), the following subsection:
“(2b)
In any case where a new start grant (as defined in section 64fb of this Act) in respect of any of the adverse events specified in paragraphs (a) to (c) of the definition of the term ‘adverse event’ (as also so defined) is payable to a taxpayer, the Commissioner shall, in addition to any relief granted to a person referred to in subsection (2a) of this section, also grant to any such person relief from the payment of any unpaid tax deductions, or any amounts owing to the Commissioner under Part XI of this Act, where the unpaid tax deductions or amounts owed relate to source deduction payments made in relation to the business of fanning in respect of which the new start grant was paid.”
29 Keeping of business records
(1)
Section 428(3) of the principal Act (as substituted by section 41(1) of the Income Tax Amendment Act (No. 2) 1982) is hereby amended—
(a)
By omitting the expression “subsection (4)”
, and substituting the expression “subsections (3a), (4), and (8)”
:
(b)
By omitting the expression “10 years”
(where that expression appears after paragraph (i)), and substituting the expression “7 years”
.
(2)
Section 428 of the principal Act (as so substituted) is hereby amended by inserting, after subsection (3), the following subsection:
“(3a)
A pay-period taxpayer who is required by subsection (3) of this section to retain records of income of that taxpayer from which tax has been deducted at source need retain those records only until the expiry of 12 months after the end of the income year in which the income was received by the taxpayer.”
(3)
The said section 428 is hereby further amended by repealing subsection (6) (as inserted by section 41(2) of the Income Tax Amendment Act (No. 3) 1983).
(4)
The said section 428 is hereby further amended by adding the following subsections:
“(7)
The Commissioner may, by notice in writing given before the expiry of the 7-year retention period specified in subsection (3) of this section, require a taxpayer to retain all or any of the records specified in that subsection for a further period not exceeding 3 years following the expiry of the 7-year period where—
“(a)
The affairs of the taxpayer are or have been under audit or investigation by the Commissioner; or
“(b)
The Commissioner intends to conduct such an audit or investigation before the expiry of the retention period as so extended, or is actively considering any such audit or investigation.
“(8)
The Commissioner may, by notice published in the Gazette, dispense any class of taxpayers from the need to retain the records, or any class of records, specified in subsection (3) of this section for more than 12 months following the end of the income year to which they relate where—
“(a)
The taxpayers are not provisional taxpayers; and
“(b)
The records relate to payments from which tax has been deducted at source.”
(5)
Section 41(2) of the Income Tax Amendment Act (No. 3) 1983 is hereby consequentially repealed.
(6)
This section shall come into force on the 1st day of April 1992.
30 Keeping of returns where return information transmitted electronically
The principal Act is hereby amended by inserting, after section 428, the following section:
“428a
“(1)
Where information contained in a taxpayer’s return has been transmitted by electronic means in the prescribed electronic format in accordance with section 14a of this Act, the taxpayer shall retain or cause to be retained the return (being the signed hard-copy transcript of the information so transmitted) for—
“(a)
Seven years after the end of the income year to which the return relates; or
“(b)
Such greater period as the Commissioner requires under section 428 of this Act in relation to any other records of the taxpayer, where the Commissioner gives the taxpayer notice of a further retention period under subsection (7) of that section.
“(2)
This section does not require the retention of any return—
“(a)
In respect of which the Commissioner has given notice in writing that retention is not required; or
“(b)
Of a company that has been wound up and finally dissolved.
“(3)
Every reference in this section to an income year includes a reference to any corresponding non-standard accounting year.”
31 Employers to make returns as to employees
Section 432 of the principal Act is hereby amended by adding the following subsections:
“(2)
Without limiting the generality of subsection (1) of this section, but subject to the other provisions of this section, every employer who, in respect of any period commencing on or after the 1st day of April 1992, is required to deliver a remittance certificate to the Commissioner pursuant to any of paragraphs (a), (ab), and (ac) of section 353(1) of this Act, shall also sign and deliver to the Commissioner in respect of that period an employment commencement and cessation certificate in respect of any persons who, during the period, commence or cease to be employees of the employer.
“(3)
Every such certificate shall be in a form approved by the Commissioner and shall show—
“(a)
The name and tax file number of the employer; and
“(b)
The name of every person who has commenced or ceased to be an employee of the employer during the period to which the certificate relates; and
“(c)
The date or dates on which each such person commenced or ceased, as the case may be, to be an employee of the employer; and
“(d)
The tax file number of each such person (where supplied to the employer); and
“(e)
Such other particulars as the Commissioner may require.
“(4)
Any such certificate for any period shall be delivered to the Commissioner not later than the date by which the employer is required by paragraph (a) or paragraph (ab) or paragraph (ac) of section 353(1) of this Act to deliver to the Commissioner the remittance certificate for the same period.
“(5)
The Commissioner may vary any of the requirements of subsections (2) to (4) of this section in relation to any employer or class of employer in such cases and to such extent as the Commissioner thinks fit, and in every such case this section shall apply as so varied:
“Provided that no such variation shall impose more onerous requirements on an employer than are imposed by subsections (2) to (4) of this section.
“(6)
Nothing in subsection (2) of this section requires a certificate to be furnished, or to contain information, in relation to—
“(a)
Any period referred to in subsection (2) of this section where no person commences or ceases in that period to be an employee of the employer; or
“(b)
The commencement or cessation of—
“(i)
Any class or description of employment; or
“(ii)
The employment of any class or description of employee; or
“(iii)
The employment of employees by any class or description of employer,—
specified by the Commissioner as not requiring to be included in a certificate under this section; or
“(c)
The commencement or cessation of the entitlement of any person to national superannuation, veteran’s pension, or any income-tested benefit, or to earnings-related compensation or other compensation under the Accident Compensation Act 1982.
“(7)
For the purposes of this section, the term ‘employee’ includes any person who receives or is entitled to receive a payment that would, but for subsection (2) or subsection (3) of section 6 of this Act, be a source deduction payment.”
32 Eleventh Schedule substituted
(1)
The principal Act is hereby amended by repealing the Eleventh Schedule (as inserted by section 17(2) of the Income Tax Amendment Act (No. 2) 1986), and substituting the new Eleventh Schedule set out in the Schedule to this Act.
(2)
Section 17(2) of the Income Tax Amendment Act (No. 2) 1986 is hereby consequentially repealed.
(3)
This section shall apply with respect to the tax on income derived in the 1992–93 income year and subsequent years.
33 Seventeenth Schedule amended
(1)
Part B of the Seventeenth Schedule to the principal Act (as inserted by section 29 of the Income Tax Amendment Act (No. 5) 1988) is hereby amended by adding to clause 3 the following paragraphs:
“(d)
Companies deriving income or profits from goods manufactured in Ireland:
“(e)
Companies deriving income or capital gains from the following operations:
“(i)
Life assurance business with policy holders and annuitants who reside outside Ireland:
“(ii)
The management of the investments of one or more unit trusts where all the unit holders are resident outside Ireland:
“(f)
Companies obtaining initial allowances or accelerated writing down allowances in respect of qualifying assets of financial-type operations carried out in the Shannon Free Airport Zone or any designated urban renewal area:
“(g)
Companies undertaking administrative or liaison activities.”
(2)
Part B of the Seventeenth Schedule to the principal Act (as so inserted) is hereby further amended by adding to clause 5 the following paragraphs:
“(c)
Companies obtaining relief or exemption from tax under the Labuan Onshore Business Activity Tax Act 1990:
“(d)
Companies obtaining relief or exemption from tax under the Offshore Banking Act 1990:
“(e)
Companies obtaining relief or exemption from tax under the Offshore Companies Act 1990:
“(f)
Companies obtaining relief or exemption from tax under the Offshore Insurance Act 1990:
“(g)
Companies obtaining relief or exemption from tax under the Labuan Trust Companies Act 1990:
“(h)
Companies obtaining relief or exemption from tax under the Promotion of Investments (Criteria for the Grant of Pioneer Status to a Small-Scale Company) Order 1990.”
(3)
Part B of the Seventeenth Schedule to the principal Act (as so inserted) is hereby further amended by inserting, after clause 5, the following clause:
| “5a. Malta | “(a) Companies obtaining relief or exemption from tax under the Malta International Business Activities Act 1988: |
| “(b) Companies obtaining relief or exemption from tax under the Offshore Trusts Act 1988: | |
| “(c) Companies obtaining relief or exemption from tax under the Malta Freeports Act 1989: | |
| “(d) Companies obtaining relief or exemption from tax under the Merchant Shipping Act 1973.” |
Part II Income Tax (Annual)
Income Tax
34 Rates of income tax for year commencing on 1 April 1991
For the year commencing on the 1st day of April 1991, income tax shall be assessed, levied, and paid pursuant to Part IV of the principal Act at the basic rates specified in the First Schedule to the principal Act (as amended by sections 24 and 25 of the Income Tax Amendment Act (No. 3) 1988, section 27 of the Income Tax Amendment Act 1989, section 11 of the Finance Act 1989, section 12 of the Income Tax Amendment Act 1990, section 32 of the Income Tax Amendment Act (No. 3) 1990, and section 20(2) of the Income Tax Amendment Act (No. 3) 1991).
Excess Retention Tax
35 Rates of excess retention tax for year commencing on 1 April 1991
For the year commencing on the 1st day of April 1991, excess retention tax shall be assessed, levied, and paid pursuant to Part V of the principal Act at the rate specified in clause 11 of Part A of the First Schedule to that Act.
Repeal
36 Repeal
The Income Tax (Annual) Act 1991 is hereby repealed.
Schedule New Eleventh Schedule Substituted in Principal Act
Section 32(1)
“ELEVENTH SCHEDULE Amount that, for the Purposes of Section 374g(4) of this Act, is Deemed to be Equivalent of an Annual Amount
Section 374g(4)
| First Column | Second Column | |
|---|---|---|
| Amount that, in relation to any application for a certificate of entitlement to a credit of tax, is the annual amount | Amount that, for the purpose of section 374g of this Act, is deemed to be equivalent of that annual amount | |
| $ | ||
| Amount does not exceed $ 17,500 | 17,500 | |
| Amount exceeds $ 17,500 but does not exceed $ 19,500 | 19,500 | |
| Amount exceeds $ 19,500 but does not exceed $ 21,500 | 21,500 | |
| Amount exceeds $ 21,500 but does not exceed $ 23,500 | 23,500 | |
| Amount exceeds $ 23,500 but does not exceed $ 25,500 | 25,500 | |
| Amount exceeds $ 25,500 but does not exceed $ 27,000 | 27,000 | |
| Amount exceeds $ 27,000 but does not exceed $ 28,500 | 28,500 | |
| Amount exceeds $ 28,500 but does not exceed $ 30,000 | 30,000 | |
| Amount exceeds $ 30,000 but does not exceed $ 31,500 | 31,500 | |
| Amount exceeds $ 31,500 but does not exceed $ 33,000 | 33,000 | |
| Amount exceeds $ 33,000 but does not exceed $ 34,500 | 34,500 | |
| Amount exceeds $ 34,500 but does not exceed $ 36,000 | 36,000 | |
| Amount exceeds $ 36,000 but does not exceed $ 37,500 | 37,500 | |
| Amount exceeds $ 37,500 but does not exceed $ 39,000 | 39,000 | |
| Amount exceeds $ 39,000 but does not exceed $ 40,500 | 40,500 | |
| Amount exceeds $ 40,500 but does not exceed $ 42,000 | 42,000 | |
| Amount exceeds $ 42,000 but does not exceed $ 43,500 | 43,500 | |
| Amount exceeds $ 43,500 but does not exceed $ 45,000 | 45,000 | |
| Amount exceeds $ 45,000 but does not exceed $ 46,500 | 46,500 | |
| Amount exceeds $ 46,500 but does not exceed $ 48,000 | 48,000 | |
| Amount exceeds $ 48,000 but does not exceed $ 49,500 | 49,500 | |
| Amount exceeds $ 49,500 but does not exceed $ 51,000 | 51,000 | |
| Amount exceeds $ 51,000 but does not exceed $ 52,500 | 52,500 | |
| Amount exceeds $ 52,500 but does not exceed $ 54,000 | 54,000 | |
| Amount exceeds $ 54,000 but does not exceed $ 55,500 | 55,500 | |
| Amount exceeds $ 55,500 but does not exceed $ 57,000 | 57,000 | |
| Amount exceeds $ 57,000 but does not exceed $ 58,500 | 58,500 | |
| Amount exceeds $ 58,500 but does not exceed $ 60,000 | 60,000 | |
| Amount exceeds $ 60,000 but does not exceed $ 61,500 | 61,500 | |
| Amount exceeds $ 61,500 but does not exceed $ 63,000 | 63,000 | |
| Amount exceeds $ 63,000 but does not exceed $ 64,500 | 64,500 | |
| Amount exceeds $ 64,500 but does not exceed $ 66,000 | 66,000 | |
| Amount that exceeds $ 66,000 | the amount that is equal to the number of complete dollars comprised in the annual amount.” |
This Act is administered in the Inland Revenue Department.
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Versions
Income Tax Amendment Act 1992
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