Tax Administration Act 1994
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Version as at 18 December 2025
Tax Administration Act 1994
Public Act |
1994 No 166 |
|
Date of assent |
20 December 1994 |
|
Commencement |
see section 1 |
Note
The Parliamentary Counsel Office has made editorial and format changes to this version using the powers under subpart 2 of Part 3 of the Legislation Act 2019.
Note 4 at the end of this version provides a list of the amendments included in it.
This Act is administered by the Inland Revenue Department.
Contents
An Act to reorganise and consolidate the law relating to the Inland Revenue Department and the administration of income tax matters
1 Short Title and commencement
(1)
This Act may be cited as the Tax Administration Act 1994.
(2)
This Act shall come into force on 1 April 1995, and shall, where appropriate, apply with respect to the tax on income derived in the 1995–96 tax year and subsequent years.
(3)
This Act shall also apply with respect to late 1994–95 income years to the extent specified in section YB 7 of the Income Tax Act 1994.
Section 1(2): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 1(3): inserted, on 10 April 1995, by section 2 of the Tax Administration Amendment Act 1995 (1995 No 24).
Part 1 Purpose and construction
2 Purpose of Act
(1)
The purpose of this Act is to re-enact the administrative provisions contained in the Income Tax Act 1976 and the Inland Revenue Department Act 1974 in a reorganised form.
(2)
The reorganisation of the provisions and the changes of style and language carried out by this Act in relation to the provisions of those Acts are not intended to affect the interpretation or effect of those provisions as they are included in this Act.
(3)
A reference in this Act to the time of commencement of a provision shall be construed as a reference to the time of commencement of the corresponding provision in the Income Tax Act 1976 or the Inland Revenue Department Act 1974.
(4)
[Repealed]Section 2(4): repealed, on 17 July 2013, by section 107 of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).
3 Interpretation
(1)
In this Act, unless the context otherwise requires,—
abusive tax position is defined in section 141D(7) for the purposes of Part 9 and section 177C
acceptable tax position means a tax position that is not an unacceptable tax position
accepted software package means a computer program or group of computer programs that is used for business, accounting, tax, or other purposes and is accepted by the Commissioner for use in communicating information to the Commissioner and receiving information from the Commissioner
accident compensation legislation is defined in section 143E(5) for the purposes of that section
accounting period, in section 107, has the same meaning as in section YA 1 of the Income Tax Act 2007
activities undertaken as an airport operator, in section 42, has the meaning given to airport operator activities in section HR 7 of the Income Tax Act 2007
affected class means 1 of the following classes of the person’s depreciable property that the affected depreciable property is included in:
(a)
buildings:
(b)
commercial fit-out not referred to in paragraph (c):
(c)
commercial fit-out for which the person uses the pool method:
(d)
depreciable property for which the person uses the pool method, other than commercial fit-out:
(e)
depreciable property not referred to in paragraphs (a) to (d)
affected depreciable property means depreciable property that—
(a)
is not depreciable intangible property; and
(b)
is included in an affected class; and
(c)
as a result of an emergency event, is affected by—
(i)
damage that meets the requirements of section EE 47(4) of the Income Tax Act 2007; or
(ii)
a disposal and reacquisition under section FP 14 of that Act
affected improvement to land means an improvement to land subject to section DO 4 or DO 5 of the Income Tax Act 2007 that has been damaged or destroyed in an emergency event
affected property means—
(a)
affected depreciable property:
(b)
affected improvements to land:
(c)
affected revenue property
affected revenue property means a person’s land or building that is—
(a)
revenue account property under section CB 6, CB 7, CB 12, or CB 13 of the Income Tax Act 2007; and
(b)
damaged by an emergency event; and
(c)
useless for the purposes of deriving income as a result of that event; and
(d)
if it is a building, required to be demolished or abandoned for later demolition due to the damage to the land, building, or the neighbourhood of the building
agency is defined in section 18E(6) for the purposes of that section and section 18F
amount payable is defined in section 157(10) for the purposes of that section
applicant is defined in schedule 7, part C, subpart 2, clause 46(2) for the purposes of that clause
applicant information is defined in schedule 7, part C, subpart 2, clause 46(2) for the purposes of that clause
apply, for a mode of communication, has the meaning set out in section 14C
approved advisor group is defined in section 20B(5)
approved credit reporting agency is defined in schedule 7, part C, subpart 1, clause 33(10) for the purposes of that clause
approved organisation is an organisation—
(a)
whose members include natural persons—
(i)
who are subject to a professional code of conduct; and
(ii)
who are subject to a disciplinary process intended to enforce compliance with the code; and
(b)
whose members—
(i)
typically provide trustee services in the course of their business activities:
(ii)
satisfy other criteria acceptable to the Commissioner; and
(c)
that has been approved by the Commissioner for the purposes of this definition
approved research and development cap means the approved research and development cap described in section 68CD
approved research provider means an approved research provider described in section 124ZH
arrangement—
(a)
means a contract, agreement, plan or understanding, whether enforceable or unenforceable, including all steps and transactions by which it is carried into effect:
(b)
for the purpose of Part 5A, includes facts that the Commissioner considers are material or relevant as background or context to a private or a product ruling
ask, for a mode of communication, has the meaning set out in section 14B
assessment means—
(a)
an assessment of tax made under a tax law by a taxpayer or by the Commissioner:
(b)
an assessment of a net loss for the purposes of the Income Tax Act 2007:
(c)
an assessment of terminal tax or a refund for the purposes of the Income Tax Act 2007:
(d)
an assessment of a refund due under the Goods and Services Tax Act 1985:
(e)
an amendment by the Commissioner of an assessment
authorised officer is defined in the following clauses for the purposes of that clause:
(a)
schedule 7, part C, subpart 1, clause 25(4):
(b)
schedule 7, part C, subpart 2, clause 41(9):
(c)
schedule 7, part C, subpart 2, clause 43(8):
(d)
schedule 7, part C, subpart 2, clause 45(7)
authorised officer of the Ministry is defined in schedule 7, part C, subpart 2, clause 44(6) for the purposes of that clause
authorised officer of the Police is defined in schedule 7, part C, subpart 2, clause 44(6) for the purposes of that clause
award is defined in section 130(6) for the purposes of that section
bank is defined in section 157(10) for the purposes of that section
bank account means, for a person, the identifying number of an account—
(a)
that the person holds with a registered bank, or with a licensed NBDT as defined in section 4 of the Non-bank Deposit Takers Act 2013; and
(b)
for which the relevant reporting entity, under the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (the Act), has obtained identity information and completed verification of identity in accordance with the Act, if customer due diligence is required under that Act for the person
base amount has the same meaning as in section YA 1 of the Income Tax Act 2007
basis of exemption, in section 208(1)(f), is the basis of exemption referred to in section 32E(2)
beneficiary is defined in schedule 7, part C, subpart 2, clause 41(9) for the purposes of that clause
beneficiary information is defined in schedule 7, part C, subpart 2, clause 41(9) for the purposes of that clause
bill of exchange, in section 144, means a bill of exchange within the meaning of the Bills of Exchange Act 1908; and includes a promissory note within the meaning of that Act, other than a bank note
binding ruling means any—
(a)
public ruling made under section 91D:
(b)
private ruling made under section 91E:
(bb)
short-process ruling made under section 91EK:
(c)
product ruling made under section 91F:
(d)
status ruling made under section 91GA
business is defined in section 152(18) for the purposes of that section
business group amnesty means an amnesty declared by the Commissioner under section 226B
challenge means—
(a)
to commence proceedings under Part 8A challenging a disputable decision; or
(ab)
to commence proceedings under section 89K(6) challenging a refusal to issue a notice; or
(b)
the proceedings,—
as the context requires
challenge notice means a notice issued by the Commissioner in accordance with section 89P
chief executive is defined in the following clauses for the purpose of that clause:
(a)
schedule 7, part C, subpart 1, clause 35(4):
(b)
schedule 7, part C, subpart 2, clause 43(8)
civil penalty means—
(a)
a late filing penalty; or
(b)
a late payment penalty; or
(c)
a shortfall penalty; or
(cb)
a promoter penalty; or
(cbb)
a penalty under section 139AAB, 139AB, 139ABB, or 139AC; or
(cc)
a penalty under section 142H, 142I, 142J, or 142K; or
(cd)
a penalty under section 141EE; or
(d)
a non-electronic filing penalty; or
(e)
a civil penalty under section 215 of the KiwiSaver Act 2006
collective agreement is defined in section 130(6) for the purposes of that section
combined tax and earner-related payment—
(a)
unless paragraph (b) applies, has the same meaning as in section YA 1 of the Income Tax Act 2007:
(b)
is defined in section 167(4) of this Act for the purposes of that section
commercial production, in section 91(1)(d), has the same meaning as in section YA 1 of the Income Tax Act 2007
Commission is defined in schedule 7, part C, subpart 1, clause 35(4) for the purposes of that clause
Commissioner of Inland Revenue, or Commissioner, means the Commissioner of Inland Revenue appointed or deemed to have been appointed under this Act; and includes any person for the time being authorised to exercise or perform any of the powers, duties, or functions of the Commissioner
Commissioner-set instalment date is defined in section 139C for the purposes of that section
Commissioner’s official opinion—
(a)
means, for a taxpayer,—
(i)
an opinion of the Commissioner concerning the tax affairs of the taxpayer communicated by the Commissioner after all information relevant to forming the opinion has been provided to the Commissioner, if that information is correct:
(ii)
a finalised official statement of the Commissioner notifying the taxpayer, if it specifically applies to the taxpayer’s situation:
(b)
does not include a private binding ruling
Commissioner’s statement of position means the statement of position that the Commissioner issues pursuant to a disclosure notice; and includes any additional information the Commissioner provides in respect of the statement under section 89M(8) or section 89M(11)
company is defined in schedule 7, part C, subpart 1, clause 35(4) for the purposes of that clause
compensation means—
(a)
insurance or another amount in recognition of loss:
(b)
for affected revenue property, an amount that a person derives from insurance, a government or local authority buy-out, or other amount in recognition of loss, or a combination of these, that would be income of the person under section CB 6, CB 7, CB 12, CB 13, or CG 6 of the Income Tax Act 2007 in the absence of subpart FP of that Act
competent authority—
(a)
has the meaning provided in a double tax agreement or in a tax recovery agreement; and
(b)
includes the Commissioner
competent objection, for the purposes of Part 8 and in relation to a person, being a taxpayer, and to any assessment, means an objection made by the person, to the assessment, in accordance with section 126; but does not include any non-qualifying objection
consideration, in section 91, has the same meaning as in paragraph (a) of the definition of that term in section YA 1 of the Income Tax Act 2007
contact address in schedule 3, tables 1 and 2, schedule 4, tables 2 and 3, and schedule 6, table 1 has the meaning given in section 14G
contested act of assistance is defined in section 173B
contract payment, for the purpose of section 141AA, has the meaning given by section YA 1 of the Income Tax Act 2007
co-operative company, in section 64, has the same meaning as in section YA 1 of the Income Tax Act 2007
Corporation is defined in schedule 7, part C, subpart 2, clause 41(9) for the purposes of that clause
correct tax position means the correct tax position established under 1 or more tax laws
cost of living payments scheme means the Cost of Living Payments Scheme established and administered by the Crown to provide financial support to certain low- and middle-income persons affected by an increase in the cost of living
COVID-19 resurgence support payments scheme means the COVID-19 Resurgence Support Payments Scheme established and administered by the Crown to provide support to businesses in the circumstances of a resurgence in New Zealand of COVID-19
COVID-19 support payments scheme means a scheme that is—
(a)
established and administered by the Crown to provide support to persons financially affected by a public health measure, business circumstance, or matter that is related to COVID-19, or by a group of such measures, circumstances, or matters; and
(b)
activated by an Order in Council made under section 7AAC
credit report is defined in schedule 7, part C, subpart 1, clause 33(11) for the purposes of that clause
CRS applied standard means the CRS standard as modified by section 185O for the determination of requirements under this Act
CRS publication means the Standard for Automatic Exchange of Financial Account Information in Tax Matters, published by the Organisation for Economic Co-operation and Development
CRS standard means the Common Standard on Reporting and Due Diligence for Financial Account Information, as amended from time to time, which is a standard—
(a)
developed by the Organisation for Economic Co-operation and Development and the Group of Twenty countries; and
(b)
agreed by the Council for the Organisation for Economic Co-operation and Development on 15 July 2014; and
(c)
contained in Part IIB of the CRS publication
CSP terms is defined in section 7AAB(9)
current year means an income year that falls within the emergency event period
date interest starts is defined in section 120C for the purposes of Part 7
day of determination of final liability—
(a)
for the purposes of Part 8, means,—
(i)
where the Commissioner receives from the taxpayer a notice of the withdrawal by the taxpayer of the objection to an assessment, the day on which the Commissioner receives that notice:
(ii)
where the objection to an assessment is deemed to be withdrawn under subsection (8) of section 136, the day following the expiry of the period referred to in subsection (5) or, where appropriate, subsection (12) of that section:
(iii)
where the objection to an assessment is otherwise deemed to be withdrawn by or under this Act, the expiry of the period of 2 calendar months following the day on which the objection is deemed to be withdrawn:
(iv)
where the objection is determined by a Taxation Review Authority and not by a court, the day on which the Taxation Review Authority determines the objection:
(v)
where the objection is determined as a result of proceedings taken in a court, whether or not by way of appeal, the day on which the objection is finally determined, whether in those proceedings or, as the case may be, on an appeal:
(vi)
where the taxpayer does not, within the period of 2 months immediately succeeding the date on which the notice of disallowance of the taxpayer’s objection is given to the taxpayer by or on behalf of the Commissioner, by notice to the Commissioner, require—
(A)
that the objection be heard and determined by a Taxation Review Authority; or
(B)
the Commissioner to state a case for the opinion of the High Court, specifying in the notice the registry of that court in which the taxpayer requires the case to be filed,—
the day on which there expires that period of 2 months:
(vii)
where, and to the extent that, an objection is allowed by the Commissioner, the day on which the notice of that allowance (to that extent) is given to the taxpayer by the Commissioner:
(b)
for the purposes of Part 8A, means—
(i)
the day on which the Commissioner is notified by the disputant that the disputant is discontinuing a challenge:
(ii)
[Repealed](iii)
if a challenge is determined by a Taxation Review Authority in its general jurisdiction, and not by a court, the day on which the Authority determines the challenge:
(iv)
if a challenge is determined by a court, whether or not by way of appeal, the day on which the challenge is finally determined, whether in those proceedings or in a subsequent appeal:
(v)
to the extent the Commissioner concedes a challenge, the day on which the Commissioner notifies the disputant of the concession
decision, for the purposes of the definition of disputable decision, includes the making, giving, or exercising of a discretion, judgment, direction, opinion, approval, consent, or determination by the Commissioner
deferrable tax, for a person who is a taxpayer or disputant, means—
(a)
(b)
goods and services tax, payable (as defined in section 20A(1) of the Goods and Services Tax Act 1985) by the person on a due date, in relation to which the person makes a competent objection under Part 8 or that the person challenges under Part 8A:
(c)
an amount of tax assessed under a tax law as payable by the person and described in section RP 17B(3)(bb) of the Income Tax Act 2007:
(d)
an amount of tax for which the person’s liability depends on the liability of another person (the disputant) for an amount of tax and the disputant has a current dispute with the Commissioner concerning the disputant’s liability after making a competent objection or challenge that meets the requirements of paragraph (a) or (b) for the disputant or entering an agreement with the Commissioner referred to in section RP 17B(3)(bb) of the Income Tax Act 2007
department means the Inland Revenue Department
disclosure notice means a disclosure notice issued by the Commissioner to a disputant under section 89M
discovery obligation means an order of a court or Taxation Review Authority, or notice of discovery in proceedings before a court or Authority, requiring the disclosure of information to the Commissioner in relation to proceedings before the court or Authority
discretion is defined in section 91B for the purposes of Part 5A
disposition, in section 65, has a meaning corresponding to paragraph (e) of the definition of dispose in section YA 1 of the Income Tax Act 2007
disputable decision means—
(a)
an assessment:
(b)
a decision of the Commissioner under a tax law, except for a decision—
(i)
to decline to issue a binding ruling under Part 5A; or
(ii)
that cannot be the subject of an objection under Part 8; or
(iii)
that cannot be challenged under Part 8A; or
(iv)
to issue a Commissioner’s notice of proposed adjustment under section 89B, a Commissioner’s disclosure notice or statement of position under section 89M, or a challenge notice; or
(v)
to issue, or to decline to issue, a Commissioner’s COVID-19 response variation under section 6I; or
(vba)
to make, or to decline to make, an entitlement under the final-year fees-free scheme under section 7AAAA; or
(vb)
to make, or to decline to make, a grant under the cost of living payments scheme under section 7AAA; or
(vi)
to grant, or to decline to grant, a loan under the small business cashflow scheme under section 7AA; or
(vii)
to make, or to decline to make, a grant under the COVID-19 resurgence support payments scheme, or another COVID-19 support payments scheme, under section 7AAB
disputant means a person—
(a)
who may issue a notice of proposed adjustment to the Commissioner; or
(b)
to whom the Commissioner issues a notice of proposed adjustment or an assessment; or
(c)
who may challenge a disputable decision—
under a tax law
disputant’s statement of position means the statement of position that a disputant provides under section 89M(6) in response to a disclosure notice; and includes any additional information the disputant provides in respect of the statement under section 89M(11)
disqualifying offence is defined in section 141FB(3) for the purpose of section 141FB
disqualifying penalty is defined in section 141FB(3) for the purpose of section 141FB
document means—
(a)
a thing that is used to hold, in or on the thing and in any form, items of information:
(b)
an item of information held in or on a thing referred to in paragraph (a):
(c)
a device associated with a thing referred to in paragraph (a) and required for the expression, in any form, of an item of information held in or on the thing
DRCD deferral date has the meaning given by section RA 6(6) of the Income Tax Act 2007
due date means the last day on which a taxpayer is able—
(a)
to pay tax; or
(b)
to provide a tax return; or
(c)
to provide a tax form; or
(d)
to do any other thing under a tax law—
before being liable to pay a penalty or (in the case of paragraph (a)) interest under Part 7
earnings as a self-employed person is defined in schedule 7, part C, subpart 2, clause 42(3) for the purposes of that clause
earnings as a shareholder-employee is defined in schedule 7, part C, subpart 2, clause 42(3) for the purposes of that clause
earnings-related compensation is defined in schedule 7, part C, subpart 2, clause 41(9) for the purposes of that clause
electronic sales suppression tool means a software program, device, tool, or other thing, part of a thing, or combination of things or parts,—
(a)
that can hide, conceal, modify, falsify, destroy, or prevent the creation of a record that—
(i)
a person is required under a tax law to make or keep; and
(ii)
is, or would be, created by a system that is or includes an electronic point of sale system; and
(b)
the use of which would lead to a reasonable conclusion that 1 of its principal functions is to facilitate the concealment, modification, falsification, destruction, or prevention of the creation of a record
emergency event—
(a)
means an emergency as defined in section 4 of the Civil Defence Emergency Management Act 2002 that is—
(i)
declared as a state of emergency under that Act:
(ii)
subject to a power exercised under section 121 of the Biosecurity Act 1993:
(iii)
subject to a direction given under section 122 of the Biosecurity Act 1993:
(b)
for the purposes of section 91AAS, means an event declared to be an emergency event by the Commissioner in a determination under that section
emergency event period means the period—
(a)
beginning with the start of the income year in which the emergency event first occurs; and
(b)
ending with either—
(i)
the last day of the income year that is 5 income years after the income year referred to in paragraph (a); or
(ii)
a later date specified by the Governor-General by Order in Council made under section 6J
employee—
(a)
is defined in section 23L(6) for the purposes of that section:
(b)
is defined in section 143E(5) for the purposes of that section
employer—
(a)
in section 47, has the same meaning as in paragraphs (c) and (d) of the definition of that term in section YA 1 of the Income Tax Act 2007:
(b)
is defined in schedule 7, part C, subpart 2, clause 42(3) for the purposes of that clause
employment income information is defined in section 23C for the purposes of subpart 3C, sections 23, 36, 47, 80D, 108AB, 108B, 124Q, 139A, 139AA(4), 141AA, 141ED, 142, 142G, and 227C, and schedules 3 and 4
encumbrance, in respect of an estate or interest in land, means any trust, contract, easement, condition, or contingency affecting the same, and any restriction, however imposed, on the owner’s power of user, alienation, or disposition
ESS deferral date has the meaning given by section CE 2(9) of the Income Tax Act 2007
exceptional circumstance—
(a)
is defined in section 89K(3) for the purposes of that section:
(b)
is defined in section 89L(3) for the purposes of that section:
(c)
is defined in section 138D(2) for the purposes of that section
exploratory well, in section 91(1)(e), has the same meaning as in section YA 1 of the Income Tax Act 2007
exploratory well expenditure, in section 91(1), has the same meaning as in section YA 1 of the Income Tax Act 2007
extended model reporting standard for digital platforms means—
(a)
the model reporting standard for digital platforms; and
(b)
Part II of the Model Reporting Rules for Digital Platforms: International Exchange Framework and Optional Module for Sale of Goods
family notice of entitlement, in relation to any person, means a notice issued by the Commissioner under section 80KD for the estimated entitlement of the person to a tax credit under the family scheme
family scheme has the same meaning as in section YA 1 of the Income Tax Act 2007
family trust is defined in section 173M(5) for the purpose of that section
FamilyBoost tax credit has the same meaning as in section MH 2 of the Income Tax Act 2007
FATCA agreement means the Agreement between the Government of New Zealand and the Government of the United States of America to Improve International Tax Compliance and to Implement FATCA, commonly known as the intergovernmental agreement, which was brought into force for New Zealand by the Double Tax Agreements (United States of America—FATCA) Order 2014 (LI 2014/209), as amended from time to time
final account, for an individual and a tax year, is defined in section 22D(6) for the purposes of Part 3, subpart 3B, sections 4A, 33, 37, 38, 42C, 89D, 106, 110, and 143, and the definitions of tax return and taxpayer’s tax position
final-year fees-free scheme means the scheme established and administered by the Crown to provide financial support to persons who have completed their first qualification or programme
fines defaulter is defined in schedule 7, part C, subpart 2, clause 43(8) for the purposes of that clause
fines defaulter information is defined in schedule 7, part C, subpart 2, clause 43(8) for the purposes of that clause
first payment period, in section 47 and 173, has the same meaning as in section YA 1 of the Income Tax Act 2007
FMA means the Financial Markets Authority established under Part 2 of the Financial Markets Authority Act 2011
foreign account information-sharing agreement has the same meaning as in section YA 1 of the Income Tax Act 2007
foreign exemption trust, for an income year or part of an income year (the test period), means a trust for which a trustee is resident in New Zealand in the test period, no election under section HC 33 of the Income Tax Act 2007 is effective for the trust and the test period, and either or both—
(a)
no settlor is resident in New Zealand at any time in the period—
(i)
starting on the later of 17 December 1987 and the date on which a settlement was first made on the trust; and
(ii)
ending at the end of the test period:
(b)
the trustee takes a tax position that an amount of income derived by the trustee in or before the test period is exempt income under section HC 26 of the Income Tax Act 2007
fringe benefit, in section 22, has the meaning given by section CX 2 of the Income Tax Act 2007
full and complete inspection—
(a)
includes use as evidence in court proceedings:
(b)
does not include removal to make copies under sections 17C and 17D
gift-exempt body, in sections 18K, 32, and 58, means—
(a)
any society, institution, association, organisation, trust, or fund specifically named in Schedule 32 of the Income Tax Act 2007; or
(b)
any other person who has RWT-exempt status following an application made under section 32E(2)(k) or (l) in relation to a tax year in which they have that status
government agency,—
(a)
in section 6, includes any department or Crown entity (as those terms are defined in the Public Finance Act 1989) and any public authority (as defined in the Income Tax Act 2007):
(b)
is defined in schedule 7, part C, subpart 1, clause 23B(6) for the purposes of that clause
government screen production payment means a payment that—
(a)
is in the nature of a large budget screen production grant, post-production digital and visual effects grant, or New Zealand screen production incentive; and
(b)
is authorised by the New Zealand Film Commission in relation to a company that—
(i)
is resident in New Zealand:
(ii)
has a permanent establishment in New Zealand
GST means goods and services tax
GST payable has the meaning given to tax payable by section 2 of the Goods and Services Tax Act 1985
GST ratio has the same meaning as in section YA 1 of the Income Tax Act 2007
hearing authority means—
(a)
a Taxation Review Authority; or
(b)
the High Court
income other than reportable income, for the purposes of Part 3, subpart 3B and the definition of tax position, has the same meaning as other income
income tax is defined in section 157(10) for the purposes of that section
incremental late payment penalty means a late payment penalty imposed under section 139B(2)(b)
individual, for a person, is defined in section 22D(1) of the Tax Administration Act 1994 for the purposes of Part 3, subpart 3B, sections 4A, 22, 33, 37, 42C, 89D, 92, 106, 110, 143, and 227G, and schedule 8, and the definitions of final account, pre-populated account, tax return, and taxpayer’s tax position
inflation-indexed instrument has the same meaning as in section YA 1 of the Income Tax Act 2007
inform, for a mode of communication, has the meaning set out in section 14B
information, for the purpose of Part 11B, includes a self-certification
information demand means a notice under section 17B
information holder is defined in section 20B(1) for the purposes of sections 20B to 20F
initial late payment penalty means a late payment penalty imposed under section 139B(2)(a)
Inland Revenue Acts means the Acts specified in Schedule 1 of this Act, and includes any Acts (whether repealed or not) that before the commencement of this Act were specified in Schedule 1 of the Inland Revenue Department Act 1974
instalment date, in sections 120KB to 120KE, has the same meaning as in section YA 1 of the Income Tax Act 2007
integrity of the tax system is defined in section 6(2)
interest concession provisional taxpayer is defined in section 120KBB(4) for the purposes of Part 7
interest instalment date has the same meaning as in section YA 1 of the Income Tax Act 2007
interest liability period is defined in section 121 for the purposes of that section
interest paid to a taxpayer is defined in section 120C for the purposes of Part 7
interest period is defined in section 120C for the purposes of Part 7
investment income is defined in section 25C for the purposes of subpart 3E, sections 142G, and 227E, and schedule 6
investment income information is defined in section 25D for the purposes of subpart 3E, sections 32H, 57, 57B, 139AA, 142G, and 227E, schedule 6, and sections RA 11, RA 12, and RM 8 of the Income Tax Act 2007
issuing officer is defined in section 17D(6) for the purposes of that section
large multinational group, for an income year or a period set by the Commissioner under section 78G, means a consolidated accounting group that, in the income year or period,—
(a)
has a member resident in New Zealand or income with a source in New Zealand; and
(b)
has a member resident in a country or territory other than New Zealand; and
(c)
in the preceding income year or period, has annual consolidated group revenue equal to or exceeding the exemption threshold referred to in paragraph 5.52 of the OECD transfer pricing guidelines
late filing penalty means a civil penalty imposed under section 139A or 139AAA for not providing on time a tax return described in section 139A(1) or 139AAA(1), as applicable
late payment penalty means—
(a)
a civil penalty imposed under section 139B for not paying a tax calculated or assessed as payable under a tax law on time; and
(b)
for sections 157, 183A, and 183D includes:
(i)
[Repealed](ii)
[Repealed](iii)
[Repealed](iv)
[Repealed](v)
[Repealed](vi)
interest on unpaid racing duty under section 12 of the Gaming Duties Act 1971 for lotteries drawn:
(vii)
interest on unpaid gaming machine duty under section 12F of the Gaming Duties Act 1971 for dutiable games played by means of gaming machines:
(viii)
interest on unpaid casino duty under section 12Q of the Gaming Duties Act 1971 for casino wins
legal personal representative is defined in schedule 7, part B, clause 15(2) for the purposes of that clause
legal practitioner is defined in section 20 for the purposes of that section
licensed early childhood service has the same meaning as in section MH 2 of the Income Tax Act 2007
life insurer, in section 112, has the same meaning as in paragraph (a) of the definition of that term in section YA 1 of the Income Tax Act 2007
maintain, for a financial institution to which the CRS applied standard or the FATCA agreement applies in relation to a financial account, includes,—
(a)
if the financial account is a custodial account, holding custody over the assets in the financial account, including by holding assets in street name for an account holder in the financial institution:
(b)
if the financial account is a depository account, having an obligation to make payments with respect to the financial account, other than as agent for another financial institution:
(c)
if the financial account is an equity or debt interest, being the financial institution in which the interest is held:
(d)
if the account is a cash value insurance contract or an annuity contract, having an obligation to make payments with respect to the contract
Maori authority distribution penalty tax means tax payable under section 140CB
Minister means the Minister of Finance
Ministry is defined in schedule 7, part C, subpart 2, clause 44(6) for the purposes of that clause
model reporting standard for digital platforms means the Model Rules for Reporting by Platform Operators with respect to Sellers in the Sharing and Gig Economy that is a standard—
(a)
developed by the Organisation for Economic Co-operation and Development and the Group of Twenty countries; and
(b)
agreed by the Council for the Organisation for Economic Co-operation and Development
multinational top-up tax return means a return required under section 78J
natural person—
(a)
does not include a natural person who is acting in the capacity of trustee:
(b)
for the purposes of sections 177 and 177A, includes a natural person who is acting in the capacity of trustee
new provisional taxpayer means a person who has an initial provisional tax liability as described in section YA 1 of the Income Tax Act 2007
New Zealand superannuation qualification age means the age at which a person becomes entitled to receive New Zealand superannuation under the New Zealand Superannuation and Retirement Income Act 2001
nil value distribution is defined in section 59BA(7) for the purposes of that section
nil value settlement is defined in section 59BA(7) for the purposes of that section
nominated person means a person who—
(a)
is nominated under section 124F by another person to act on their behalf in relation to—
(i)
their tax affairs:
(ii)
their social policy entitlements and obligations; and
(b)
is treated by the Commissioner as a nominated person; and
(c)
does not later have their status as a nominated person disallowed by the Commissioner
non-cash distribution is defined in section 59BA(7) for the purposes of that section
non-cash settlement is defined in section 59BA(7) for the purposes of that section
non-filing taxpayer, for a person and a tax year, means—
(a)
a person whose only income having a source in New Zealand for the tax year is a schedular payment derived in their capacity as a non-resident entertainer and who chooses not to file a return of income for the tax year; or
(b)
a person who for the tax year, derives only non-resident passive income referred to in section RF 2(3) of the Income Tax Act 2007; or
(c)
a person whose only income having a source in New Zealand for the tax year is a payment derived in their capacity as a non-resident seasonal worker
non-qualifying objection, for the purposes of Part 8 and in relation to a person, being a taxpayer, and to any assessment, means an objection made by the person, to the assessment, in accordance with section 126 where, and to the extent that, any ground of objection stated by the person is that—
(a)
the return of income furnished by the taxpayer or the other particulars supplied together with the return of income, being the return and the other particulars from and by reference to which the assessment has been made, is deficient or, as the case may be, are deficient or insufficient; or
(b)
the assessment has been made, under section 106, in the absence of the return of income or the particulars from or by reference to which, had that return of income or those particulars been furnished to the Commissioner, the assessment would have been made
(c)
[Repealed]non-resident seasonal worker has the meaning given in section YA 1 of the Income Tax Act 2007
notice, for an item of information, means the form or manner in which the item is notified or communicated, as described in section 14C or 14D, as appropriate
notice of proposed adjustment means a notice of proposed adjustment in the prescribed form—
(a)
issued by the Commissioner to a disputant under section 89B; or
(b)
issued by a disputant to the Commissioner under either section 89D or section 89DA
notify—
(a)
means to give notice; and
(b)
for a mode of communication, has the meaning set out in section 14C or 14D, as appropriate
obvious error is defined in section 6G for the purposes of Part 2, subpart 2B
officer, for the purposes of sections 89C, 141F, 141G, 142C, and 147 and the definition of taxpayer in section 157(10), in relation to a corporate body, includes—
(a)
a director or secretary or other statutory officer of the corporate body:
(b)
a receiver or a manager of any property of the corporate body, or a person having powers or responsibilities, similar to those of such a receiver or manager, in relation to the corporate body:
(c)
a liquidator of the corporate body
officer of the department includes any person employed in the service of the department and any person employed in the service of the Government of any overseas country or territory who is for the time being attached or seconded to the department
offshore payment is defined in section 17F(7) for the purposes of that section
offshore person means,—
(a)
for an individual,—
(i)
a New Zealand citizen who is outside New Zealand and has not been in New Zealand within the last 3 years:
(ii)
a person who holds a residence class visa granted under the Immigration Act 2009, and who is outside New Zealand and has not been in New Zealand within the last 12 months:
(iii)
a person who is not a New Zealand citizen and who does not hold a residence class visa granted under the Immigration Act 2009:
(b)
for a body corporate or an unincorporated body of persons, including a trust or a unit trust, a person who would be an overseas person under section 7(2)(b) to (k) of the Overseas Investment Act 2005, treating references to an overseas person or persons in that section as including a person or persons described in paragraph (a) of this definition
on time, for the purposes of performing a tax obligation, means—
(a)
except if paragraph (b) applies, on or before the relevant due date:
(b)
if the Commissioner sets a new due date for performing the tax obligation, on or before the new due date
other income is defined in section 22D(4) for the purposes of Part 3, subpart 3B, and section 141JA, and schedule 8
parental leave is defined in schedule 7, part C, subpart 2, clause 46(2) for the purposes of that clause
passive income, in the application of the CRS applied standard to a person or entity for a period, means an amount that is not income from a transaction entered into in the ordinary course of the business of a dealer in financial assets and that is—
(a)
a dividend:
(b)
interest:
(c)
income equivalent to interest:
(d)
rent or a royalty, other than rent or a royalty derived in the active conduct of a business conducted, partly or wholly, by employees of the person or entity:
(e)
an annuity:
(f)
for financial assets that give rise to amounts included under paragraphs (a) to (e), the amount by which gains from the sales or exchanges of the financial assets in the period exceed losses from the sales or exchanges:
(g)
the amount by which gains from the transactions in financial assets in the period exceed losses from the transactions:
(h)
the amount by which gains from the foreign currency transactions in the period exceed losses from the transactions:
(i)
the amount by which gains from the swaps in the period exceed losses from the swaps:
(j)
an amount received under a cash value insurance contract
payday in subpart 3C and schedule 4, means the day on which an employer makes a PAYE income payment to an employee
PAYE period means first payment period or second payment period, as applicable
payment, in section 120U, and for the purposes of section 25G and schedule 6, table 1, row 18, has a corresponding meaning to paragraph (a) of the definition of pay in section YA 1 of the Income Tax Act 2007
payroll software is defined in section 23P for the purposes of that section and section 23F
period of deferral, in respect of deferrable tax, means the period that starts on the later of—
(a)
(b)
the day that immediately succeeds the due date for payment of the tax,—
and ends at the expiry of the day that, in relation to the deferrable tax, is the day of determination of final liability
permit area, in section 91(1)(d), has the same meaning as in section YA 1 of the Income Tax Act 2007
permitted disclosure is defined in section 16C(5) for the purposes of subpart 3A and schedule 7
personal information is defined in schedule 7, part C, subpart 2, clause 45(7) for the purposes of that clause
petroleum mining operations, in section 91, has the same meaning as in section YA 1 of the Income Tax Act 2007
petroleum permit, in section 91 of this Act, means—
(a)
a petroleum permit under section YA 1 of the Income Tax Act 2007:
(b)
a replacement permit under section YA 1 of that Act
policyholder net loss, in section 112 of this Act, has the same meaning as in section YA 1 of the Income Tax Act 2007
pre-populated account, for an individual and a tax year, is defined in section 22D(5) for the purposes of Part 3, subpart 3B, sections 4A and 106, and section CX 27 of the Income Tax Act 2007
prescribed means prescribed by regulations under this Act or the Income Tax Act 2007 or by the Commissioner
primary employment earnings, for an employee and for a pay period, means a PAYE income payment that is not a schedular payment or an extra pay, when the payment meets one of the following requirements:
(a)
the payment is derived by the employee in the pay period from 1 employer:
(b)
the payment is the largest payment derived by the employee in the pay period, if the employee derives payments in the period from 2 or more employers:
(c)
the payment is derived in the pay period and is of the same amount as another payment that the employee chooses, if the employee derives payments in the period from 2 or more employers and 2 or more of the payments are of the same amount
private domestic worker is defined in schedule 7, part C, subpart 2, clause 42(3) for the purposes of that clause
private dwelling is defined in section 17(5) for the purposes of that section and section 17D
professional trustee means a person whose profession, employment, or business is or includes acting or investing money on behalf of others
promoter is defined in section 141EC
property, in section 90, has the same meaning as in paragraph (b) of the definition of that term in section YA 1 of the Income Tax Act 2007
property or documents is defined in section 17(5) for the purposes of that section and sections 16 and 16B
proposed adjustment means—
(a)
an adjustment or amendment the Commissioner or a disputant proposes in respect of 1 or more disputable decisions; or
(b)
the way the Commissioner proposes to treat differently a tax position or tax positions taken by a disputant in 1 or more tax returns,—
for the purposes of 1 or more return periods; and, where the context permits, an adjustment is to include a proposed adjustment
proscribed question means—
(a)
whether a fact is correct or exists:
(b)
what is a person’s purpose or intention, for the purpose of any provision of the Income Tax Act 2007 that expressly refers to a person’s purpose or intention:
(c)
what is the value of a thing:
(d)
what is commercially acceptable practice, for the purposes of any provision of that Act that expressly refers to commercially acceptable practice:
(e)
a question related to research and development tax credits under subpart LY of the Income Tax Act 2007
provider of digital services means a person who provides digital services to enable another person who is a user of the services to communicate information to, and receive information from, the Commissioner
provisional tax associate is defined in section 120KBB(4) for the purposes of Part 7
provisional tax interest avoidance arrangement is defined in section 120KBB(4) for the purposes of Part 7
provisional tax paid is defined in section 139C
provisional tax payable is defined in section 139C
provisional taxpayer means a person who is liable to pay provisional tax under section RC 3 of the Income Tax Act 2007
public services is defined in section 18E(5) for the purposes of that section and sections 16B and 18F
qualifying individual is defined in section 22D(2) for the purposes of Part 3, subpart 3B, sections 22, 38, 89C, and 120C, in the definition of date interest starts, paragraph (a), and schedule 8
ratio instalment date has the same meaning as in section YA 1 of the Income Tax Act 2007
record—
(a)
is defined in section 152(18) for the purposes of that section:
(b)
is defined in section 22(7) for the purposes of that section and section 22AAB
record holder is defined in section 220(18) for the purposes of that section
registered person has the meaning given by section 2(1) of the Goods and Services Tax Act 1985
registration Act is defined in section 169(11) for the purposes of that section
relative is defined in section 173M(5) for the purpose of that section
relief company means, in relation to a taxpayer, a company in which—
(a)
the taxpayer owns 50% or more of the shares:
(b)
the taxpayer and 1 other person jointly own 50% or more of the shares:
(c)
the taxpayer is a shareholder-employee, and the company satisfies paragraphs (a) and (c) of the definition of close company in section YA 1 of the Income Tax Act 2007
relinquishment, in section 91, has the same meaning as in section YA 1 of the Income Tax Act 2007
replacement cost means the amount of expenditure a person incurs to acquire replacement property
replacement property means property that replaces affected property and is,—
(a)
for affected revenue property, a building or land that is revenue account property located in New Zealand:
(b)
for affected depreciable property, property—
(i)
included in the same class, as described in the definition of affected class, as the affected depreciable property; and
(ii)
located in New Zealand:
(c)
for an affected improvement to land, an improvement to farmland as described in schedule 20, part A of the Income Tax Act 2007 or a listed horticultural plant located in New Zealand
reportable income is defined in section 22D(3) for the purposes of this Act and the Income Tax Act 2007
reportable unpaid tax is defined in schedule 7, part C, subpart 1, clause 33(12) for the purposes of that clause
representative means a person who—
(a)
is eligible under section 124D(2) to act as a representative; and
(b)
is approved by the Commissioner as a representative; and
(c)
does not later have their approval of representative status disallowed by the Commissioner
request, for a mode of communication, has the meaning set out in section 14B
research and development certificate means a research and development certificate described in section 124ZI
residual income tax—
(a)
is defined in section 120KB(4) for the purposes of Part 7:
(b)
for the purposes of any other provision of this Act, has the same meaning as in section YA 1 of the Income Tax Act 2007
response period is defined in section 89AB
responsible department is defined in schedule 7, part C, subpart 2, clause 46(2) for the purposes of that clause
restricted information, in sections 87 and 205, means any information that the Commissioner has obtained under the Inland Revenue Acts, including all Acts (whether repealed or not) at any time administered by or in the department, or arising out of such other functions as may from time to time have been lawfully conferred on the Commissioner
return period means—
(a)
the period covered by a tax return, or which would be covered by a tax return if one were provided:
(b)
for a tax return that relates to a transaction, the time within which the transaction must be returned
revenue information is defined in section 16C(2) for the purposes of Part 3, subpart 3A and schedule 7
revenue law is defined in section 16C(1) for the purposes of Part 3, subpart 3A and schedule 7
revenue officer is defined in section 16C(4) for the purposes of Part 3, subpart 3A
RWT rate, for a person and resident passive income, means the basic rate for RWT given by the Income Tax Act 2007, in Schedule 1, Part D, for the person and the resident passive income
second payment period, in sections 47 and 173(1)(b), has the same meaning as in section YA 1 of the Income Tax Act 2007
secondary employment earnings, for an employee and for a pay period, means a PAYE income payment that—
(a)
is derived by the employee in the pay period from an employer; and
(b)
is not—
(i)
a payment of primary employment earnings; or
(ii)
a schedular payment; or
(iii)
an extra pay
security, for the purposes of section 7A, means a security given to the Commissioner to secure the performance of a tax obligation, and includes a mortgage or charge or other encumbrance over, or pledge of, an asset or right, and a guarantee or indemnity
self-employed person is defined in schedule 7, part C, subpart 2, clause 42(3) for the purposes of that clause
sensitive revenue information is defined in section 16C(3) for the purposes of Part 3, subpart 3A and schedule 7
serious threat is defined in section 18J(2) for the purposes of that section
sex offence is defined in schedule 7, part C, subpart 2, clause 44(6) for the purposes of that clause
short-process ruling means a short-process ruling under sections 91EK to 91ET
shortfall penalty means a penalty imposed under any of sections 141AA to 141K for taking an incorrect tax position or for doing or failing to do anything specified or described in those sections
social security agreement is defined in schedule 7, part C, subpart 2, clause 45(7) for the purposes of that clause
standard-cost household service means a service that is a standard-cost household service under a determination that is made by the Commissioner under section 91AA
status ruling means a ruling made under section 91GA
student allowance means an allowance paid under regulations made under section 645 of the Education and Training Act 2020
suspended recovery income—
(a)
is defined in section FP 6 of the Income Tax Act 2007 for the purposes of affected revenue property:
(b)
is defined in section FP 9 of that Act for the purposes of an affected class of depreciable property:
(c)
is defined in section FP 12(3) of that Act for the purposes of affected improvements to land
tax—
(a)
means—
(i)
a tax, levy, or duty of any type imposed by a tax law, regardless of how the tax, levy, or duty is described:
(ii)
an amount deemed by a tax law to be a tax, levy, or duty:
(iii)
any other amount payable to the Commissioner under a tax law, including:
(A)
[Repealed](B)
an amount imposed under section 157 of this Act or payable under section 43 of the Goods and Services Tax Act 1985:
(C)
an amount payable by a payer (as defined in section 153 of the Child Support Act 1991) under Part 10 of the Child Support Act 1991:
(CB)
an amount required to be deducted under subpart 1 of Part 3 of the KiwiSaver Act 2006:
(CC)
KiwiSaver Act 2006 employer contributions:
(CD)
an amount of compulsory employer contributions unpaid, specified in a notice under section 141(5) of the KiwiSaver Act 2006:
(D)
a salary or wage deduction (as defined in section 4(1) of the Student Loan Scheme Act 2011), or an amount recovered in accordance with section 193 of that Act:
(iv)
a credit of tax under a tax law:
(v)
a tax of the general character described in any of paragraphs (i) to (iv)—
(A)
that is imposed on or payable by a taxpayer in a country or territory other than New Zealand; or
(B)
that is relevant under a tax law for the purposes of determining a tax position:
but does not include—
(vi)
interest imposed under Part 7:
(vii)
subject to paragraph (b), a civil penalty:
(viii)
[Repealed](ix)
financial support (as defined in section 2(1) of the Child Support Act 1991):
(x)
an end-of-year repayment obligation or an overseas-based repayment obligation (as those terms are defined in section 4(1) of the Student Loan Scheme Act 2011):
(xi)
[Repealed](xii)
is a tax prescribed in section 173D:
(xiii)
[Repealed](xiv)
a fee described in section 226C:
(xv)
a registration fee referred to in section 59B:
(xvi)
a return filing fee referred to in section 59D:
(ab)
for the purposes of the application of this Act in relation to a regulation made under section CV 8 of the Income Tax Act 2007, includes an Australian wine producer rebate:
(b)
(c)
for the purposes of sections 6, 6A, and 6B, includes—
(i)
revenue collected under, entitlements arising from, or amounts paid or payable under the Inland Revenue Acts; and
(ii)
loan interest charged on a loan balance (as those terms are defined in section 4(1) of the Student Loan Scheme Act 2011); and
(iii)
contributions administered by the Commissioner under the KiwiSaver Act 2006:
(ca)
for the purpose of Part 10B, includes—
(i)
financial support, as defined in section 2(1) of the Child Support Act 1991; and
(ii)
a repayment obligation, as defined in section 4(1) of the Student Loan Scheme Act 2011:
(iii)
[Repealed](cb)
for the purposes of sections 156 to 165, includes a combined tax and earner-related payment:
(cc)
for the purposes of Part 10B, and sections 6, 6A, 6B, 156 to 165, 174AA, 176, 177, and 177A to 177CA, includes an amount payable in relation to a loan made under the small business cashflow scheme:
(cd)
for the purposes of sections 6 to 6B, 156 to 165, 173L, 173M, 173S, 173T, 174AA, and 176 to 177CA, includes an amount payable in relation to a grant made under the COVID-19 resurgence support payments scheme or another COVID-19 support payments scheme:
(ce)
for the purposes of sections 6 to 6B, 156 to 165, 174AA, and 176 to 177CA, includes an amount payable in relation to a grant made under the cost of living payments scheme:
(cf)
for the purposes of sections 6 to 6B, 120C, 156 to 165, 174AA, 177B, 177CA, and 183C, includes an amount payable in relation to an entitlement under the final-year fees-free scheme:
(d)
for the purpose of sections 176, 177, and 177A to 177D, means—
(i)
a tax, levy or duty of any type imposed by a tax law, regardless of how the tax, levy or duty is described:
(ii)
an amount deemed by a tax law to be a tax, levy or duty:
(iii)
any other amount payable to the Commissioner under a tax law, including:
(A)
[Repealed](B)
an amount imposed under section 157 of this Act or payable under section 43 of the Goods and Services Tax Act 1985:
(C)
an amount payable by a payer, as defined in section 153 of the Child Support Act 1991, under Part 10 of that Act:
(CB)
an amount of short payment under Part 3, subpart 3 of the KiwiSaver Act 2006 that relates to a compulsory employer contribution:
(CC)
an amount of compulsory employer contributions unpaid, specified in a notice under section 101I(5) of the KiwiSaver Act 2006:
(D)
a salary or wage deduction (as defined in section 4(1) of the Student Loan Scheme Act 2011) or an amount recovered in accordance with section 193 of that Act:
(iv)
a tax prescribed in section 173D:
(v)
interest imposed under Part 7:
(vi)
a civil penalty:
but does not include—
(vii)
[Repealed](viii)
financial support, as defined in section 2(1) of the Child Support Act 1991:
(viiib)
an amount of short payment under Part 3, subpart 3 of the KiwiSaver Act 2006 that does not relate to a compulsory employer contribution:
(ix)
an end-of-year repayment obligation or an overseas-based repayment obligation (as those terms are defined in section 4(1) of the Student Loan Scheme Act 2011)
tax advice document is defined in section 20B(3)
tax advisor is defined in section 20B(4)
tax agent means a person who—
(a)
is eligible under section 124C(3) to be a tax agent; and
(b)
is listed by the Commissioner as a tax agent; and
(c)
is not later removed by the Commissioner from the list of tax agents
tax code is defined in section 24B(1)
tax contextual information is defined in section 20F(3)
tax credit quarter has the same meaning as in section MH 2 of the Income Tax Act 2007
tax file number means an identification number that the Commissioner allocates to a person
tax form means a form or document a taxpayer is required by a tax law—
(a)
to complete; and
(b)
to provide to a person other than the Commissioner
tax law means—
(a)
a provision of an Inland Revenue Act other than the Unclaimed Money Act 1971, or an Act that such an Inland Revenue Act replaces:
(b)
an Order in Council or a regulation made under another tax law:
(c)
a non-disputable decision:
(d)
in relation to an obligation to provide a tax return or a tax form, also includes a provision of the Accident Rehabilitation and Compensation Insurance Act 1992 or a regulation made under that Act or the Accident Insurance Act 1998 or a regulation made under that Act or the Accident Compensation Act 2001 or a regulation made under that Act
tax paid is defined in section 120C for the purposes of Part 7
tax payable is defined in section 120C for the purposes of Part 7
tax position means a position or approach with regard to tax under 1 or more tax laws, including without limitation a position or approach with regard to—
(a)
a liability for an amount of tax, or the payment of an amount of tax:
(b)
an obligation to deduct or withhold an amount of tax, or the deduction or withholding of an amount of tax:
(c)
a right to a tax refund, or to claim or not to claim a tax refund:
(d)
a right to a credit of tax, or to claim or not to claim a credit of tax:
(e)
the provision of a tax return, or the non-provision of a tax return:
(f)
the derivation of an amount of income or exempt income or a capital gain, or the inclusion or non-inclusion of an amount in income:
(g)
the incurring of an amount of expenditure or loss, or the allowing or denying as a deduction of an amount of expenditure or loss:
(h)
the availability of a tax loss component or loss balance, or the use of a tax loss component or loss balance:
(i)
the attaching of a credit of tax, or the receipt of or lack of entitlement to receive a credit of tax:
(j)
the balance of a tax account or memorandum account of any type or description, or a debit or credit to such an account:
(k)
the estimation of the provisional tax payable:
(kb)
the use of the AIM method for provisional tax and the software product of an approved AIM provider:
(l)
whether the taxpayer must provide information to the Commissioner on the income other than reportable income that they derive for a tax year:
(m)
the application of Part 3, subpart 3B:
(n)
a right to a tax credit
(o)
[Repealed]tax recovery agreement is defined in section 173B
tax return—
(a)
means a form or document that a taxpayer is required to complete and return to the Commissioner whether provided in relation to a period or not; and
(ab)
includes an individual’s final account that is treated under section 22I(1)(a) as a return of income; and
(b)
includes a tax form issued by another taxpayer that the taxpayer provides to the Commissioner; but
(bb)
does not include a report required by section 185N to be provided to the Commissioner; and
(c)
does not include the prescribed form or electronic format under section 185K
tax shortfall, for a return period, means—
(a)
the difference between the tax effect of a taxpayer’s tax position for the return period and the correct tax position for that period, when the taxpayer’s tax position—
(i)
results in too little tax paid or payable by the taxpayer or another person:
(ii)
overstates a tax benefit, credit, or advantage of any type or description whatever by or benefiting the taxpayer or another person; but
(b)
for a person that has taken a tax position for section 23K (the tax position) and has not made an election under section RD 7B of the Income Tax Act 2007, the amount of tax that they would have been liable to pay, if they had made an election under section RD 7B of that Act for the period, for the difference between the tax position and the correct tax position
tax to pay is defined in section 139B
taxation law is defined in section 91B for the purposes of Part 5A
Taxation Review Authority, or Authority, means a Taxation Review Authority established or continued in existence under the Taxation Review Authorities Act 1994
taxpayer means a person who—
(a)
is liable to perform, or to comply with, a tax obligation; or
(b)
may take a tax position,—
whether as principal, or as an agent or employee or officer of another person, or otherwise
taxpayer identification number, for a person and a jurisdiction other than New Zealand, means the functional equivalent of the person’s tax file number in that jurisdiction
taxpayer’s paying rate is defined in section 120C for the purposes of Part 7
taxpayer’s tax position means—
(a)
a tax position taken by a taxpayer in or in respect of—
(i)
a tax return; or
(ii)
an individual’s final account that is treated under section 22I(1)(a) as a return of income; or
(iii)
a due date
(b)
[Repealed]taxpayer’s total tax figure is defined in section 141B for the purposes of that section
TIN means a taxpayer identification number
unacceptable tax position is defined in section 141B
unpaid tax includes any amount of tax refunded under a tax law to the extent that the amount—
(a)
is not properly refundable; or
(b)
is in excess of any amount of tax that is refundable,—
under the tax law
victim is defined in schedule 7, part C, subpart 2, clause 44(6) for the purposes of that clause
workplace legislation means—
(a)
(c)
(d)
(h)
(i)
(o)
an Act under or in relation to which a labour inspector or an employee of WorkSafe New Zealand or designated agency exercise their functions:
(p)
any regulations made under the Acts listed in paragraphs (a) to (o).
(2)
Unless the context otherwise requires, and having regard to the context where there is more than 1 definition of the same term, other terms used in this Act have the same meanings as they have in the Income Tax Act 2007.
(3)
[Repealed](4)
[Repealed]Section 3(1) abusive tax position: inserted, on 26 July 1996 (applying on and after 1 October 1996 for the purposes of Parts 4A, 8, and 8A of the Tax Administration Act 1994), by section 3(1) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 3(1) abusive tax position: amended, on 17 October 2002 (applying on and after 1 December 2002), by section 73(2) of the Taxation (Relief, Refunds and Miscellaneous Provisions) Act 2002 (2002 No 32).
Section 3(1) acceptable interpretation: repealed, on 26 March 2003 (applying to a tax position taken by a taxpayer on or after 1 April 2003), by section 82(2) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
Section 3(1) acceptable tax position: inserted, on 26 March 2003 (applying to a tax position taken by a taxpayer on or after 1 April 2003), by section 82(3) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
Section 3(1) accepted software package: inserted, on 2 June 2016, by section 76(2) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section 3(1) accident compensation legislation: inserted, on 18 March 2019, by section 5(2) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 3(1) accounting period: amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 3(1) activities as an airport operator: repealed, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 3(1) activities undertaken as an airport operator: inserted, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 3(1) activities undertaken as an airport operator: amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 3(1) additional tax: repealed, on 26 July 1997 (applying on and after 1 October 1996 for the purposes of Parts 4A, 8, and 8A), by section 3(2) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 3(1) affected class: inserted, on 1 April 2025, by section 150(2) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
Section 3(1) affected depreciable property: inserted, on 1 April 2025, by section 150(3) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
Section 3(1) affected improvement to land: inserted, on 1 April 2025, by section 150(4) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
Section 3(1) affected property: inserted, on 30 March 2025, by section 150(5) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
Section 3(1) affected revenue property: inserted, on 1 April 2025, by section 150(6) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
Section 3(1) agency: inserted, on 18 March 2019, by section 5(3) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 3(1) applicant: inserted, on 18 March 2019, by section 5(4) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 3(1) applicant information: inserted, on 18 March 2019, by section 5(4) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 3(1) apply: inserted, on 2 June 2016, by section 76(3) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section 3(1) approved advisor group: inserted, on 21 June 2005, by section 120(2) of the Taxation (Base Maintenance and Miscellaneous Provisions) Act 2005 (2005 No 79).
Section 3(1) approved credit reporting agency: replaced, on 18 March 2019, by section 5(5) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 3(1) approved organisation: inserted, on 1 October 2006, by section 210(3) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).
Section 3(1) approved research and development cap: inserted, on 1 April 2019, by section 24(2) (and see section 3 for application) of the Taxation (Research and Development Tax Credits) Act 2019 (2019 No 15).
Section 3(1) approved research provider: inserted, on 1 April 2019, by section 24(3) (and see section 3 for application) of the Taxation (Research and Development Tax Credits) Act 2019 (2019 No 15).
Section 3(1) arrangement: replaced, on 26 March 2003, by section 82(4) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
Section 3(1) ask: inserted, on 2 June 2016, by section 76(3) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section 3(1) assessment: inserted, on 26 March 2003 (applying for 2002–03 and subsequent income years), by section 82(5) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
Section 3(1) assessment paragraph (b): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 3(1) assessment paragraph (c): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 3(1) authorised officer: replaced, on 18 March 2019, by section 5(6) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 3(1) authorised officer of the Ministry: inserted, on 18 March 2019, by section 5(7) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 3(1) authorised officer of the Police: inserted, on 18 March 2019, by section 5(7) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 3(1) authorised savings institution: repealed, on 2 June 2016, by section 76(4) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section 3(1) bank account: inserted, on 1 October 2015, by section 4(2) of the Tax Administration Amendment Act 2015 (2015 No 83).
Section 3(1) base amount: inserted, on 1 October 2007 (applying for income years corresponding to 2008–09 and subsequent tax years), by section 210(4) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).
Section 3(1) base amount: amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 3(1) basis of exemption: amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 3(1) beneficiary: replaced, on 18 March 2019, by section 5(8) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 3(1) beneficiary information: replaced, on 18 March 2019, by section 5(9) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 3(1) benefit: repealed, on 31 August 2017, by section 299(7) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section 3(1) benefit: amended, on 31 August 2017, by section 299(6) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section 3(1) bill of exchange: inserted, on 26 July 1996 (applying on and after 1 October 1996 for the purposes of Parts 4A, 8, and 8A of the Tax Administration Act 1994), by section 3(4) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 3(1) binding ruling: inserted (with effect on 1 April 1995), on 10 April 1995, by section 3(2) of the Tax Administration Amendment Act 1995 (1995 No 24).
Section 3(1) binding ruling paragraph (bb): inserted, on 1 October 2019, by section 5(10) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 3(1) binding ruling paragraph (d): inserted, on 20 May 1999 (applying on and after 20 May 1999), by section 62(1)(a) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
Section 3(1) book and document and book or document: repealed, on 29 August 2011, by section 142(2) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section 3(1) business: amended, on 26 July 1996 (applying on and after 1 October 1996 for the purposes of Parts 4A, 8, and 8A of the Tax Administration Act 1994), by section 3(5) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 3(1) business group amnesty: inserted, on 19 December 2007, by section 188(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 3(1) cardholder: repealed, on 31 August 2017, by section 299(8) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section 3(1) cardholder information: repealed, on 31 August 2017, by section 299(9) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section 3(1) certificate of exemption: repealed, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 3(1) challenge: inserted, on 26 July 1996 (applying on and after 1 October 1996 for the purposes of Parts 4A, 8, and 8A of the Tax Administration Act 1994), by section 3(6) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 3(1) challenge paragraph (ab): inserted, on 29 August 2011, by section 142(3) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section 3(1) challenge notice: inserted, on 29 August 2011 (applying for a dispute initiated by a taxpayer issuing a notice of proposed adjustment after 29 August 2011), by section 142(4) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section 3(1) Charities Commission: repealed, on 1 July 2012, by section 16(2) of the Charities Amendment Act (No 2) 2012 (2012 No 43).
Section 3(1) chief executive: inserted, on 18 March 2019, by section 5(11) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 3(1) civil penalty: replaced (with effect on 1 April 1997), on 23 September 1997, by section 68(1) of the Taxation (Remedial Provisions) Act 1997 (1997 No 74).
Section 3(1) civil penalty paragraph (c): amended, on 7 October 1998 (applying to 1999–2000 and subsequent income years), by section 3(1)(b) of the Taxation (Simplification and Other Remedial Matters) Act 1998 (1998 No 101).
Section 3(1) civil penalty paragraph (cb): inserted, on 26 March 2003, by section 82(6) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
Section 3(1) civil penalty paragraph (cbb): replaced, on 1 January 2025, by section 129(3) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
Section 3(1) civil penalty paragraph (cc): inserted, on 1 July 2017, by section 9(2) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
Section 3(1) civil penalty paragraph (cc): amended (with effect on 1 January 2024), on 28 March 2024, by section 129(5) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
Section 3(1) civil penalty paragraph (cc): amended (with effect on 1 April 2023), on 28 March 2024, by section 129(4) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
Section 3(1) civil penalty paragraph (cd): inserted, on 30 March 2022, by section 180(2) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section 3(1) civil penalty paragraph (d): replaced, on 1 December 2006, by section 231 of the KiwiSaver Act 2006 (2006 No 40).
Section 3(1) civil penalty paragraph (e): inserted, on 1 December 2006, by section 231 of the KiwiSaver Act 2006 (2006 No 40).
Section 3(1) civil penalty paragraph (e): amended, on 1 April 2009, by section 15 of the Taxation (KiwiSaver) Act 2007 (2007 No 110).
Section 3(1) combined tax and earner premium deduction or combined tax and earner levy deduction: repealed, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 3(1) combined tax and earner-related payment: inserted, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 3(1) commercial production: amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 3(1) Commission: inserted, on 18 March 2019, by section 5(12) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 3(1) Commissioner-set instalment date: inserted, on 26 July 1996 (applying on and after 1 October 1996 for the purposes of Parts 4A, 8, and 8A of the Tax Administration Act 1994), by section 3(7) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 3(1) Commissioner’s official opinion: inserted, on 7 September 2010, by section 126(2) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section 3(1) Commissioner’s official opinion paragraph (a)(i): amended, on 2 June 2016, by section 76(5)(a) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section 3(1) Commissioner’s official opinion paragraph (a)(ii): amended, on 2 June 2016, by section 76(5)(b) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section 3(1) Commissioner’s statement of position: inserted, on 26 July 1996 (applying on and after 1 October 1996 for the purposes of Parts 4A, 8, and 8A of the Tax Administration Act 1994), by section 3(7) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 3(1) company: inserted, on 18 March 2019, by section 5(13) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 3(1) compensation: inserted, on 30 March 2025, by section 150(9) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
Section 3(1) competent authority: replaced, on 1 July 2014, by section 151(1) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).
Section 3(1) competent objection: amended, on 26 July 1996 (applying on and after 1 October 1996 for the purposes of Parts 4A, 8, and 8A of the Tax Administration Act 1994), by section 3(9) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 3(1) consideration: amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 3(1) consideration: amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 3(1) contact address: inserted, on 1 April 2020, by section 261(2) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 3(1) contested act of assistance: inserted, on 20 May 1999 (applying on and after 20 May 1999), by section 62(1)(b) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
Section 3(1) contested tax: repealed, on 8 December 2009, by section 128 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
Section 3(1) contract payment: inserted, on 21 December 2004, by section 88(2) of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).
Section 3(1) contract payment: amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 3(1) co-operative company: amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 3(1) Corporation: replaced, on 18 March 2019, by section 5(14) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 3(1) correct tax position: inserted, on 26 July 1996 (applying on and after 1 October 1996 for the purposes of Parts 4A, 8, and 8A of the Tax Administration Act 1994), by section 3(10) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 3(1) cost of living payments scheme: inserted, on 25 May 2022, by section 4(2) of the Taxation (Cost of Living Payments) Act 2022 (2022 No 25).
Section 3(1) COVID-19 resurgence support payments scheme: inserted, on 18 February 2021, by section 4(2) of the Taxation (COVID-19 Resurgence Support Payments and Other Matters) Act 2021 (2021 No 1).
Section 3(1) COVID-19 support payments scheme: inserted, on 25 November 2021, by section 4(2) of the Taxation (COVID-19 Support Payments and Working for Families Tax Credits) Act 2021 (2021 No 52).
Section 3(1) CRS applied standard: inserted, on 1 July 2017, by section 9(3) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
Section 3(1) CRS publication: inserted, on 1 July 2017, by section 9(3) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
Section 3(1) CRS standard: inserted, on 1 July 2017, by section 9(3) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
Section 3(1) credit report: replaced, on 18 March 2019, by section 5(15) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 3(1) CSP terms: inserted, on 25 November 2021, by section 4(3) of the Taxation (COVID-19 Support Payments and Working for Families Tax Credits) Act 2021 (2021 No 52).
Section 3(1) current year: inserted, on 1 April 2025, by section 150(11) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
Section 3(1) date interest starts: inserted, on 26 July 1996 (applying on and after 1 October 1996 for the purposes of Parts 4A, 8, and 8A of the Tax Administration Act 1994), by section 3(10) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 3(1) day of determination of final liability: replaced, on 26 July 1996 (applying on and after 1 October 1996 for the purposes of Parts 4A, 8, and 8A of the Tax Administration Act 1994), by section 3(11) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 3(1) day of determination of final liability paragraph (a)(i): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 3(1) day of determination of final liability paragraph (a)(vi): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 3(1) day of determination of final liability paragraph (b)(i): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 3(1) day of determination of final liability paragraph (b)(ii): repealed, on 29 August 2011 (applying for a dispute or challenge, in relation to which there has been no election into the small claims jurisdiction of a Taxation Review Authority before 29 August 2011), by section 142(6) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section 3(1) decision: inserted, on 26 July 1996 (applying on and after 1 October 1996 for the purposes of Parts 4A, 8, and 8A of the Tax Administration Act 1994), by section 3(12) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 3(1) debtor: repealed, on 31 August 2017, by section 299(10) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section 3(1) debtor information: repealed, on 31 August 2017, by section 299(11) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section 3(1) deferrable tax: replaced, on 24 February 2016, by section 245(1) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
Section 3(1) deferrable tax paragraph (c): amended, on 30 March 2021, by section 144(2)(a) of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
Section 3(1) deferrable tax paragraph (d): inserted, on 30 March 2021, by section 144(2)(b) of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
Section 3(1) deficient tax: repealed, on 26 July 1996 (applying on and after 1 October 1996 for the purposes of Parts 4A, 8, and 8A of the Tax Administration Act 1994), by section 3(14) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 3(1) Deputy Commissioner of Inland Revenue or Deputy Commissioner: repealed, on 10 April 1995, by section 3(3) of the Tax Administration Amendment Act 1995 (1995 No 24).
Section 3(1) determination: repealed, on 24 October 2001 (applying on first day of 2002–03 income year), by section 189(2) of the Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 (2001 No 85).
Section 3(1) determination of loss: repealed, on 26 July 1996 (applying to 1997–98 and subsequent income years), by section 430(b) of the Taxation (Core Provisions) Act 1996 (1996 No 67).
Section 3(1) determination of loss carried forward: repealed, on 26 July 1996 (applying to 1997–98 and subsequent income years), by section 430(c) of the Taxation (Core Provisions) Act 1996 (1996 No 67).
Section 3(1) determination of net loss: repealed, on 24 October 2001 (applying on first day of 2002–03 income year), by section 189(2) of the Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 (2001 No 85).
Section 3(1) determination of net loss carried forward: repealed, on 24 October 2001 (applying on first day of 2002–03 income year), by section 189(2) of the Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 (2001 No 85).
Section 3(1) disclosure notice: inserted, on 26 July 1996 (applying on and after 1 October 1996 for the purposes of Parts 4A, 8, and 8A of the Tax Administration Act 1994), by section 3(15) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 3(1) discovery obligation: inserted, on 6 October 2009, by section 596(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 3(1) discretion: inserted (with effect on 1 April 1995), on 10 April 1995, by section 3(4) of the Tax Administration Amendment Act 1995 (1995 No 24).
Section 3(1) disposition: replaced, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 3(1) disposition: amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 3(1) disputable decision: inserted, on 26 July 1996 (applying on and after 1 October 1996 for the purposes of Parts 4A, 8, and 8A), by section 3(16) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 3(1) disputable decision paragraph (b): replaced, on 20 May 1999 (applying on and after 20 May 1999), by section 62(1)(c) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
Section 3(1) disputable decision paragraph (b)(iii): amended, on 1 April 2005, by section 88(3) of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).
Section 3(1) disputable decision paragraph (b)(iv): replaced, on 29 August 2011 (applying for a dispute initiated by a taxpayer issuing a notice of proposed adjustment after 29 August 2011), by section 142(7) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section 3(1) disputable decision paragraph (b)(iv): amended (with effect on 17 March 2020), on 30 April 2020, by section 17 of the COVID-19 Response (Taxation and Other Regulatory Urgent Measures) Act 2020 (2020 No 10).
Section 3(1) disputable decision paragraph (b)(v): inserted (with effect on 17 March 2020), on 30 April 2020, by section 17 of the COVID-19 Response (Taxation and Other Regulatory Urgent Measures) Act 2020 (2020 No 10).
Section 3(1) disputable decision paragraph (b)(vba): inserted (with effect on 1 January 2025), on 29 March 2025, by section 150(12) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
Section 3(1) disputable decision paragraph (b)(vb): inserted, on 25 May 2022, by section 4(3) of the Taxation (Cost of Living Payments) Act 2022 (2022 No 25).
Section 3(1) disputable decision paragraph (b)(vi): inserted (with effect on 17 March 2020), on 30 April 2020, by section 17 of the COVID-19 Response (Taxation and Other Regulatory Urgent Measures) Act 2020 (2020 No 10).
Section 3(1) disputable decision paragraph (b)(vi): amended, on 18 February 2021, by section 4(3)(a) of the Taxation (COVID-19 Resurgence Support Payments and Other Matters) Act 2021 (2021 No 1).
Section 3(1) disputable decision paragraph (b)(vii): inserted, on 18 February 2021, by section 4(3)(b) of the Taxation (COVID-19 Resurgence Support Payments and Other Matters) Act 2021 (2021 No 1).
Section 3(1) disputable decision paragraph (b)(vii): amended, on 25 November 2021, by section 4(4) of the Taxation (COVID-19 Support Payments and Working for Families Tax Credits) Act 2021 (2021 No 52).
Section 3(1) disputant: inserted, on 26 July 1996 (applying on and after 1 October 1996 for the purposes of Parts 4A, 8, and 8A of the Tax Administration Act 1994), by section 3(16) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 3(1) disputant’s statement of position: inserted, on 26 July 1996 (applying on and after 1 October 1996 for the purposes of Parts 4A, 8, and 8A of the Tax Administration Act 1994), by section 3(16) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 3(1) disqualifying offence: inserted, on 21 December 2004, by section 88(4) of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).
Section 3(1) disqualifying penalty: inserted, on 21 December 2004, by section 88(4) of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).
Section 3(1) District Commissioner of Inland Revenue: repealed, on 10 April 1995, by section 3(3) of the Tax Administration Amendment Act 1995 (1995 No 24).
Section 3(1) dividend: repealed, on 26 July 1996 (applying on and after 1 October 1996 for the purposes of Parts 4A, 8, and 8A of the Tax Administration Act 1994), by section 3(17) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 3(1) dividend treated as interest: repealed, on 1 April 2020, by section 261(3) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 3(1) document: inserted, on 29 August 2011, by section 142(5) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section 3(1) DRCD deferral date: inserted (with effect on 30 August 2022), on 31 March 2023, by section 162(3) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 3(1) due date: inserted, on 26 July 1996 (applying on and after 1 October 1996 for the purposes of Parts 4A, 8, and 8A of the Tax Administration Act 1994), by section 3(18) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 3(1) duty of the Commissioner: repealed, on 18 March 2019, by section 5(16) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 3(1) earnings as a self-employed person: inserted, on 18 March 2019, by section 5(17) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 3(1) earnings as a shareholder-employee: inserted, on 18 March 2019, by section 5(17) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 3(1) earnings-related compensation: replaced, on 18 March 2019, by section 5(18) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 3(1) electronic sales suppression tool: inserted, on 30 March 2022, by section 180(3) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section 3(1) emergency event: inserted, on 1 April 2025, by section 150(13) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
Section 3(1) emergency event period: inserted, on 1 April 2025, by section 150(14) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
Section 3(1) employee: replaced, on 18 March 2019, by section 5(19) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 3(1) employee: amended, on 1 April 2019, by section 261(4) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 3(1) employer: replaced, on 18 March 2019, by section 5(20) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 3(1) employment income information: inserted, on 1 April 2019, by section 261(5) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 3(1) employment income information: amended, on 30 March 2022, by section 180(4) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section 3(1) encumbrance: replaced, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 3(1) entitlement card: repealed, on 31 August 2017, by section 299(12) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section 3(1) ESS deferral date: inserted, on 1 April 2019, by section 261(6) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 3(1) exceptional circumstance: inserted, on 26 July 1996 (applying on and after 1 October 1996 for the purposes of Parts 4A, 8, and 8A of the Tax Administration Act 1994), by section 3(20) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 3(1) excess tax: repealed, on 26 July 1996 (applying on and after 1 October 1996 for the purposes of Parts 4A, 8, and 8A of the Tax Administration Act 1994), by section 3(21) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 3(1) exempt person: repealed, on 1 April 2020, by section 261(8) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 3(1) exploratory well: amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 3(1) exploratory well expenditure: amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 3(1) extended model reporting standard for digital platforms: inserted, on 1 January 2024, by section 162(4) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 3(1) family certificate of entitlement: repealed, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 3(1) family notice of entitlement: inserted, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 3(1) family notice of entitlement: amended, on 1 July 2018, by section 25(a) of the Families Package (Income Tax and Benefits) Act 2017 (2017 No 51).
Section 3(1) family scheme: inserted, on 1 July 2018, by section 25(b) of the Families Package (Income Tax and Benefits) Act 2017 (2017 No 51).
Section 3(1) family support certificate of entitlement: repealed, on 1 July 1996, by section 2 of the Tax Administration Amendment Act 1996 (1996 No 19).
Section 3(1) family support credit of tax: repealed, on 1 July 1996, by section 2 of the Tax Administration Amendment Act 1996 (1996 No 19).
Section 3(1) family tax credit: repealed, on 24 May 1999 (applying on and after 1 October 1999), by section 15 of the Taxation (Parental Tax Credit) Act 1999 (1999 No 62).
Section 3(1) family trust: inserted, on 17 October 2002 (applying to 2002–03 and subsequent income years), by section 73(3) of the Taxation (Relief, Refunds and Miscellaneous Provisions) Act 2002 (2002 No 32).
Section 3(1) FamilyBoost tax credit: inserted (with effect on 1 July 2024), on 29 March 2025, by section 150(15) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
Section 3(1) FATCA agreement: inserted, on 1 July 2017, by section 9(4) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
Section 3(1) final account: inserted, on 1 April 2019, by section 5(21) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 3(1) final-year fees-free scheme: inserted (with effect on 1 January 2025), on 29 March 2025, by section 150(16) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
Section 3(1) fines defaulter: inserted, on 18 March 2019, by section 5(22) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 3(1) fines defaulter information: inserted, on 18 March 2019, by section 5(22) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 3(1) first instalment date: repealed, on 26 July 1996 (applying on and after 1 October 1996 for the purposes of Parts 4A, 8, and 8A of the Tax Administration Act 1994), by section 3(22) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 3(1) first PAYE period: repealed, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 3(1) first payment period: inserted, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 3(1) floating charge: repealed, on 1 May 2002, by section 191(1) of the Personal Property Securities Act 1999 (1999 No 126).
Section 3(1) FMA: inserted, on 1 May 2011, by section 82 of the Financial Markets Authority Act 2011 (2011 No 5).
Section 3(1) foreign account information-sharing agreement: inserted, on 1 July 2014, by section 151(2) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).
Section 3(1) foreign exemption trust: inserted, on 1 April 2023, by section 162(5) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 3(1) foreign tax: repealed, on 24 October 2001 (applying on first day of 2002–03 income years), by section 189(2) of the Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 (2001 No 85).
Section 3(1) fringe benefit: amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 3(1) fringe benefit: amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 3(1) fringe benefit tax: repealed, on 26 July 1996 (applying on and after 1 October 1996 for the purposes of Parts 4A, 8, and 8A of the Tax Administration Act 1994), by section 3(23) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 3(1) full and complete inspection: inserted, on 18 December 2006, by section 169(1) of the Taxation (Savings Investment and Miscellaneous Provisions) Act 2006 (2006 No 81).
Section 3(1) full and complete inspection paragraph (b): amended, on 18 March 2019, by section 5(23) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 3(1) gift-exempt body: amended, on 1 April 2019, by section 5(24) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 3(1) gift-exempt body paragraph (a): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 3(1) gift-exempt body paragraph (b): replaced, on 1 April 2020, by section 261(9) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 3(1) government agency: replaced (with effect on 17 March 2020), on 25 March 2020, by section 32 of the COVID-19 Response (Taxation and Social Assistance Urgent Measures) Act 2020 (2020 No 8).
Section 3(1) government screen production payment: inserted (with effect on 1 January 2010), on 7 September 2010, by section 126(3) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section 3(1) GST: inserted, on 26 July 1996 (applying on and after 1 October 1996 for the purposes of Parts 4A, 8, and 8A of the Tax Administration Act 1994), by section 3(24) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 3(1) GST payable: inserted, on 1 April 2005, by section 88(5) of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).
Section 3(1) GST ratio: inserted, on 1 October 2007 (applying for income years corresponding to 2008–09 and subsequent tax years), by section 210(5) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).
Section 3(1) GST ratio: amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 3(1) hearing authority: inserted, on 26 July 1996 (applying on and after 1 October 1996 for the purposes of Parts 4A, 8, and 8A of the Tax Administration Act 1994), by section 3(24) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 3(1) holder: repealed, on 20 May 1999 (applying on and after 20 May 1999), by section 62(1)(i) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
Section 3(1) implementation date: repealed, on 20 May 1999 (applying on and after 20 May 1999), by section 62(1)(i) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
Section 3(1) income other than reportable income: inserted, on 1 April 2019, by section 5(25) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 3(1) income statement: repealed, on 1 April 2019, by section 5(26) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 3(1) income tax payable: repealed, on 26 July 1996 (applying on and after 1 October 1996 for the purposes of Parts 4A, 8, and 8A of the Tax Administration Act 1994), by section 3(25) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 3(1) income year: repealed, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 3(1) incremental late payment penalty: inserted, on 26 July 1996 (applying on and after 1 October 1996 for the purposes of Parts 4A, 8, and 8A), by section 3(26) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 3(1) incremental late payment penalty: amended, on 19 December 2007, by section 188(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 3(1) incremental tax: repealed, on 26 July 1996 (applying on and after 1 October 1996 for the purposes of Parts 4A, 8, and 8A of the Tax Administration Act 1994), by section 3(27) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 3(1) individual: inserted, on 1 April 2019, by section 5(27) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 3(1) individual: amended (with effect on 1 April 2019), on 28 March 2024, by section 129(6) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
Section 3(1) inflation-indexed instrument: inserted, on 30 June 2014, by section 151(3) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).
Section 3(1) inform: inserted, on 2 June 2016, by section 76(6) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section 3(1) information: inserted, on 1 July 2017, by section 9(5) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
Section 3(1) information demand: inserted, on 18 March 2019, by section 5(28) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 3(1) information holder: inserted, on 21 June 2005, by section 120(3) of the Taxation (Base Maintenance and Miscellaneous Provisions) Act 2005 (2005 No 79).
Section 3(1) information requisition: repealed, on 18 March 2019, by section 5(29) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 3(1) initial late payment penalty: inserted, on 26 July 1996 (applying on and after 1 October 1996 for the purposes of Parts 4A, 8, and 8A of the Tax Administration Act 1994), by section 3(28) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 3(1) initial late payment penalty: amended, on 19 December 2007, by section 188(3) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 3(1) Inland Revenue officer: repealed, on 18 March 2019, by section 5(30) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 3(1) instalment date: amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 3(1) instalment date: amended, on 1 October 2007 (applying for income years corresponding to 2008–09 and subsequent tax years), by section 210(6) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).
Section 3(1) instalment portion: repealed, on 26 July 1996 (applying on and after 1 October 1996 for the purposes of Parts 4A, 8, and 8A of the Tax Administration Act 1994), by section 3(30) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 3(1) instrument: repealed, on 26 July 1996 (applying on and after 1 October 1996 for the purposes of Parts 4A, 8 and 8A of the Tax Administration Act 1994), by section 3(31) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 3(1) instrument, instrument of conveyance, and instrument of nomination of shares: repealed, on 20 May 1999, by section 7 of the Stamp Duty Abolition Act 1999 (1999 No 61).
Section 3(1) integrity of the tax system: inserted, on 26 June 2019, by section 82(2) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).
Section 3(1) interest concession provisional taxpayer: inserted, on 1 April 2017, by section 101(4) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
Section 3(1) interest instalment date: inserted, on 1 October 2007 (applying for income years corresponding to 2008–09 and subsequent tax years), by section 210(7) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).
Section 3(1) interest instalment date: amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 3(1) interest paid to a taxpayer: inserted, on 26 July 1996 (applying on and after 1 October 1996 for the purposes of Parts 4A, 8, and 8A of the Tax Administration Act 1994), by section 3(32) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 3(1) interest period: inserted, on 26 July 1996 (applying on and after 1 October 1996 for the purposes of Parts 4A, 8, and 8A of the Tax Administration Act 1994), by section 3(32) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 3(1) investment income: inserted, on 1 April 2020, by section 261(10) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 3(1) investment income information: inserted, on 1 April 2020, by section 261(10) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 3(1) IR5 taxpayer: repealed, on 24 February 2016, by section 245(2) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
Section 3(1) issuer: repealed, on 20 May 1999 (applying on and after 20 May 1999), by section 62(1)(i) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
Section 3(1) issuing officer: replaced, on 18 March 2019, by section 5(31) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 3(1) judicial officer: repealed, on 1 September 2013, by section 302(2) of the Search and Surveillance Act 2012 (2012 No 24).
Section 3(1) large multinational group: inserted, on 18 March 2019, by section 5(32) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 3(1) large multinational group paragraph (c): amended (with effect on 20 January 2022), on 31 March 2023, by section 162(6) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 3(1) late filing penalty: replaced (with effect on 1 April 2008), on 6 October 2009, by section 596(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 3(1) late payment penalty: replaced, on 20 May 1999 (applying on and after 1 April 1997), by section 62(1)(d) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
Section 3(1) late payment penalty paragraph (b): amended, on 27 March 2001 (applying on and after 1 April 2002), by section 44(4) of the Taxation (Beneficiary Income of Minors, Services-Related Payments and Remedial Matters) Act 2001 (2001 No 4).
Section 3(1) late payment penalty paragraph (b)(i): repealed, on 24 February 2016, by section 245(3) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
Section 3(1) late payment penalty paragraph (b)(ii): repealed, on 24 February 2016, by section 245(3) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
Section 3(1) late payment penalty paragraph (b)(iii): repealed, on 24 February 2016, by section 245(3) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
Section 3(1) late payment penalty paragraph (b)(iv): repealed, on 21 December 2010, by section 143(2) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
Section 3(1) late payment penalty paragraph (b)(v): repealed, on 21 September 2021, by section 32 of the Racing Reform Act 2019 (2019 No 32).
Section 3(1) late payment penalty paragraph (b)(viii): amended, on 21 December 2004, by section 88(6) of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).
Section 3(1) legal personal representative: replaced, on 18 March 2019, by section 5(33) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 3(1) licensed early childhood service: inserted (with effect on 1 July 2024), on 29 March 2025, by section 150(17) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
Section 3(1) life insurer: amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 3(1) maintain: inserted, on 1 July 2017, by section 9(6) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
Section 3(1) Maori: repealed, on 26 March 2003 (applying for 2004–05 and subsequent income years), by section 82(8) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
Section 3(1) Maori authority distribution penalty tax: inserted, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 3(1) Ministry: inserted, on 18 March 2019, by section 5(34) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 3(1) model reporting standard for digital platforms: inserted, on 1 January 2024, by section 162(7) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 3(1) multinational top-up tax return: inserted, on 1 January 2025, by section 129(7) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
Section 3(1) natural person: inserted, on 29 March 2018, by section 261(11) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 3(1) new provisional taxpayer: replaced, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 3(1) new return date: repealed (with effect on 1 April 2005), on 18 December 2006, by section 169(3)(a) of the Taxation (Savings Investment and Miscellaneous Provisions) Act 2006 (2006 No 81).
Section 3(1) New Zealand superannuation qualification age: inserted (with effect on 1 April 2020), on 30 March 2021, by section 144(3) of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
Section 3(1) New Zealand tax: repealed, on 24 October 2001 (applying on first day of 2002–03 income year), by section 189(2) of the Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 (2001 No 85).
Section 3(1) nil value distribution: inserted (with effect on 1 April 2024), on 29 March 2025, by section 150(18) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
Section 3(1) nil value settlement: inserted (with effect on 1 April 2024), on 29 March 2025, by section 150(18) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
Section 3(1) nominated person: inserted, on 18 March 2019, by section 5(35) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 3(1) non-cash distribution: inserted (with effect on 1 April 2024), on 29 March 2025, by section 150(18) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
Section 3(1) non-cash settlement: inserted (with effect on 1 April 2024), on 29 March 2025, by section 150(18) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
Section 3(1) non-exempt person: repealed, on 1 April 2020, by section 261(12) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 3(1) non-filing taxpayer: inserted, on 1 April 2019, by section 5(36) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 3(1) non-qualifying objection: amended, on 26 July 1996 (applying on and after 1 October 1996 for the purposes of Parts 4A, 8, and 8A of the Tax Administration Act 1994), by section 3(35) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 3(1) non-qualifying objection paragraph (c): repealed, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 3(1) non-resident seasonal worker: inserted (with effect on 1 April 2008), on 30 June 2014, by section 151(4) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).
Section 3(1) notice: replaced, on 2 June 2016, by section 76(7) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section 3(1) notice of proposed adjustment: inserted, on 26 July 1996 (applying on and after 1 October 1996 for the purposes of Parts 4A, 8, and 8A of the Tax Administration Act 1994), by section 3(36) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 3(1) notice of proposed adjustment: amended, on 26 November 1998 (applying on and after 1 April 1999), by section 25(1) of the Taxation (Tax Credits, Trading Stock, and Other Remedial Matters) Act 1998 (1998 No 107).
Section 3(1) notice of proposed adjustment paragraph (b): amended, on 24 October 2001 (applying to 2002–03 and subsequent income years), by section 189(4) of the Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 (2001 No 85).
Section 3(1) notify: inserted, on 2 June 2016, by section 76(8) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section 3(1) obvious error: inserted, on 26 June 2019, by section 82(3) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).
Section 3(1) officer: amended, on 26 July 1996 (applying on and after 1 October 1996 for the purposes of Parts 4A, 8, and 8A of the Tax Administration Act 1994), by section 3(37) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 3(1) offshore payment: amended, on 18 March 2019, by section 5(37) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 3(1) offshore person: inserted, on 1 October 2015, by section 4(3) of the Tax Administration Amendment Act 2015 (2015 No 83).
Section 3(1) offshore person: amended, on 5 July 2021, by section 40 of the Overseas Investment Amendment Act 2021 (2021 No 17).
Section 3(1) on time: inserted, on 26 July 1996 (applying on and after 1 October 1996 for the purposes of Parts 4A, 8, and 8A of the Tax Administration Act 1994), by section 3(38) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 3(1) original return date: repealed (with effect on 1 April 2005), on 18 December 2006, by section 169(3)(b) of the Taxation (Savings Investment and Miscellaneous Provisions) Act 2006 (2006 No 81).
Section 3(1) other income: inserted, on 1 April 2019, by section 5(38) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 3(1) other income: repealed, on 20 August 1997 (applying to tax on taxable income for 1998–99 and subsequent income years), by section 12 of the Taxation (Superannuitant Surcharge Abolition) Act 1997 (1997 No 59).
Section 3(1) outstanding tax: inserted, on 17 October 2002 (applying on and after 1 December 2002), by section 73(4) of the Taxation (Relief, Refunds and Miscellaneous Provisions) Act 2002 (2002 No 32).
Section 3(1) paid: repealed, on 26 July 1996 (applying on and after 1 October 1996 for the purposes of Parts 4A, 8, and 8A of the Tax Administration Act 1994), by section 3(39) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 3(1) parental leave: inserted, on 18 March 2019, by section 5(39) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 3(1) passive income: inserted, on 1 July 2017, by section 9(7) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
Section 3(1) payday: inserted, on 1 April 2019, by section 261(13) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 3(1) PAYE period: amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 3(1) payment: amended, on 1 April 2020, by section 261(14) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 3(1) payment: amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 3(1) payroll software: inserted, on 1 April 2019, by section 261(15) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 3(1) penal tax: repealed, on 26 July 1996 (applying on and after 1 October 1996 for the purposes of Parts 4A, 8, and 8A of the Tax Administration Act 1994), by section 3(41) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 3(1) penalty: repealed, on 26 July 1996 (applying on and after 1 October 1996 for the purposes of Parts 4A, 8, and 8A of the Tax Administration Act 1994), by section 3(42) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 3(1) period of deferral: replaced, on 26 July 1996 (applying on and after 1 October 1996 for the purposes of Parts 4A, 8, and 8A of the Tax Administration Act 1994), by section 3(43) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 3(1) period of deferral paragraph (a): amended, on 24 October 2001 (applying to 2002–03 and subsequent income years), by section 189(5)(a) of the Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 (2001 No 85).
Section 3(1) period of deferral paragraph (b): amended, on 24 October 2001 (applying to 2002–03 and subsequent income years), by section 189(5)(b) of the Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 (2001 No 85).
Section 3(1) permit area: amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 3(1) permitted disclosure: inserted, on 18 March 2019, by section 5(40) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 3(1) person: repealed, on 26 July 1996 (applying on and after 1 October 1996 for the purposes of Parts 4A, 8, and 8A of the Tax Administration Act 1994), by section 3(44) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 3(1) person incorrectly assumed to be a provisional taxpayer: repealed, on 18 March 2019, by section 5(41) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 3(1) person incorrectly assumed to be a taxpayer: repealed, on 26 July 1996 (applying on and after 1 October 1996 for the purposes of Parts 4A, 8, and 8A of the Tax Administration Act 1994), by section 3(45) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 3(1) person to whom this section applies: repealed, on 18 March 2019, by section 5(41) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 3(1) person with access to restricted information: repealed, on 18 March 2019, by section 5(41) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 3(1) personal information: inserted, on 18 March 2019, by section 5(42) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 3(1) petroleum mining operations: amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 3(1) petroleum permit: replaced (with effect on 1 April 2005), on 2 November 2012, by section 170(2) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).
Section 3(1) petroleum permit: amended (with effect on 1 April 2008), on 2 November 2012 (applying for the 2008–09 and later income years), by section 170(3)(a) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).
Section 3(1) petroleum permit: amended (with effect on 1 April 2008), on 2 November 2012 (applying for the 2008–09 and later income years), by section 170(3)(b) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).
Section 3(1) policyholder loss: repealed, on 26 July 1996 (applying to the 1997–98 and subsequent income years), by section 430(e) of the Taxation (Core Provisions) Act 1996 (1996 No 67).
Section 3(1) policyholder net loss: inserted, on 26 July 1996 (applying to the 1997–98 and subsequent income years), by section 430(e) of the Taxation (Core Provisions) Act 1996 (1996 No 67).
Section 3(1) policyholder net loss: amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 3(1) pre-populated account: inserted, on 1 April 2019, by section 5(43) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 3(1) pre-populated account: amended, on 23 March 2020, by section 192(2) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 3(1) prescribed: amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 3(1) primary employment earnings: inserted, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 3(1) private domestic worker: inserted, on 18 March 2019, by section 5(44) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 3(1) private dwelling: replaced, on 18 March 2019, by section 5(45) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 3(1) proceedings: inserted, on 26 July 1996 (applying on and after 1 October 1996 for the purposes of Parts 4A, 8, and 8A of the Tax Administration Act 1994), by section 3(46) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 3(1) professional trustee: inserted, on 16 November 2015, by section 20 of the Taxation (Bright-line Test for Residential Land) Act 2015 (2015 No 111).
Section 3(1) professional trustee: amended, on 1 April 2023, by section 162(8)(a) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 3(1) professional trustee: amended, on 1 April 2023, by section 162(8)(b) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 3(1) promoter: inserted, on 7 September 2010, by section 126(4) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section 3(1) property: amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 3(1) property: amended, on 20 May 1999 (applying on and after 20 May 1999), by section 62(1)(e) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
Section 3(1) property or documents: inserted, on 18 March 2019, by section 5(46) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 3(1) proposed adjustment: inserted, on 26 July 1996 (applying on or after 1 October 1996 for the purposes of Parts 4A, 8, and 8A of the Tax Administration Act 1994), by section 3(47) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 3(1) proscribed question: inserted, on 7 September 2010, by section 126(5) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section 3(1) proscribed question paragraph (b): amended (with effect on 1 October 2019), on 30 March 2022, by section 180(5) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section 3(1) proscribed question paragraph (b): amended, on 1 October 2019, by section 5(47) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 3(1) proscribed question paragraph (e): inserted, on 1 April 2019, by section 24(4) (and see section 3 for application) of the Taxation (Research and Development Tax Credits) Act 2019 (2019 No 15).
Section 3(1) provider of digital services: inserted, on 18 March 2019, by section 5(48) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 3(1) provisional tax associate: inserted, on 1 April 2017, by section 101(5) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
Section 3(1) provisional tax interest avoidance arrangement: inserted, on 1 April 2017, by section 101(6) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
Section 3(1) provisional tax paid: inserted, on 26 July 1996 (applying on or after 1 October 1996 for the purposes of Parts 4A, 8, and 8A of the Tax Administration Act 1994), by section 3(47) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 3(1) provisional tax payable: inserted, on 26 July 1996 (applying on or after 1 October 1996 for the purposes of Parts 4A, 8, and 8A of the Tax Administration Act 1994), by section 3(47) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 3(1) provisional taxpayer: replaced, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 3(1) public services: inserted, on 18 March 2019, by section 5(49) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 3(1) qualifying individual: inserted, on 1 April 2019, by section 5(50) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 3(1) qualifying individual: amended (with effect on 1 April 2019), on 28 March 2024, by section 129(8) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
Section 3(1) qualifying person: repealed, on 31 August 2017, by section 299(13) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section 3(1) qualifying resident foreign trustee: repealed, on 21 February 2017, by section 9(8) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
Section 3(1) qualifying tax in dispute: repealed, on 26 July 1996 (applying on or after 1 October 1996 for the purposes of Parts 4A, 8, and 8A of the Tax Administration Act 1994), by section 3(48) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 3(1) ratio instalment date: inserted, on 1 October 2007 (applying for income years corresponding to 2008–09 and subsequent tax years), by section 210(10) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).
Section 3(1) ratio instalment date: amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 3(1) reconciliation statement: repealed, on 1 April 2020, by section 261(16) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 3(1) record paragraph (a): amended, on 26 July 1996 (applying on or after 1 October 1996 for the purposes of Parts 4A, 8, and 8A of the Tax Administration Act 1994), by section 3(49) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 3(1) record paragraph (b): amended, on 1 April 2020, by section 261(17) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 3(1) record holder: amended, on 1 April 2020, by section 261(18) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 3(1) Regional Controller of Inland Revenue or Regional Controller: repealed, on 10 April 1995, by section 3(6) of the Tax Administration Amendment Act 1995 (1995 No 24).
Section 3(1) registered person: replaced, on 29 March 2018, by section 261(19) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 3(1) registration Act: inserted, on 25 November 2003, by section 103(1) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).
Section 3(1) registration Act to which the property is subject: repealed, on 25 November 2003, by section 103(1) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).
Section 3(1) reject: inserted, on 26 July 1996 (applying on or after 1 October 1996 for the purposes of Parts 4A, 8, and 8A of the Tax Administration Act 1994), by section 3(50) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 3(1) relative: inserted, on 17 October 2002 (applying to 2002–03 and subsequent income years), by section 73(5) of the Taxation (Relief, Refunds and Miscellaneous Provisions) Act 2002 (2002 No 32).
Section 3(1) relief company: inserted, on 30 June 2014, by section 151(5) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).
Section 3(1) relinquishment: amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 3(1) replacement cost: inserted, on 1 April 2025, by section 150(20) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
Section 3(1) replacement property: inserted, on 1 April 2025, by section 150(21) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
Section 3(1) reportable income: inserted, on 1 April 2019, by section 5(51) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 3(1) reportable unpaid tax: replaced, on 18 March 2019, by section 5(52) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 3(1) reporting platform operator: inserted, on 1 January 2024, by section 162(9) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 3(1) representative: inserted, on 18 March 2019, by section 5(53) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 3(1) request: inserted, on 2 June 2016, by section 76(8) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section 3(1) research and development certificate: inserted, on 1 April 2020, by section 43(2) (and see section 38 for application) of the Taxation (Research and Development Tax Credits) Act 2019 (2019 No 15).
Section 3(1) resident foreign trustee: repealed, on 1 April 2023, by section 162(10) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 3(1) residual income tax: replaced, on 26 July 1996 (applying on or after 1 October 1996 for the purposes of Parts 4A, 8, and 8A of the Tax Administration Act 1994), by section 3(51) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 3(1) residual income tax paragraph (a): amended, on 1 October 2007 (applying for income years corresponding to 2008–09 and subsequent tax years), by section 210(12) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).
Section 3(1) residual income tax paragraph (b): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 3(1) residual income tax paragraph (b): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 3(1) response period: replaced (with effect on 1 April 2008 and applying for 2008–09 and later income years), on 6 October 2009, by section 596(4) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 3(1) responsible department: inserted, on 18 March 2019, by section 5(55) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 3(1) return date: repealed (with effect on 1 April 2005), on 18 December 2006, by section 169(3)(c) of the Taxation (Savings Investment and Miscellaneous Provisions) Act 2006 (2006 No 81).
Section 3(1) return period: replaced, on 20 May 1999 (applying on and after 1 April 1999), by section 62(1)(f) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
Section 3(1) revenue information: inserted, on 18 March 2019, by section 5(56) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 3(1) revenue law: inserted, on 18 March 2019, by section 5(56) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 3(1) revenue officer: inserted, on 18 March 2019, by section 5(56) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 3(1) RWT exemption certificate: repealed, on 1 April 2020, by section 261(21) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 3(1) RWT rate: inserted (with effect on 1 April 2010), on 7 September 2010, by section 126(6) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section 3(1) second instalment date: repealed, on 1 October 2007 (applying for income years corresponding to 2008–09 and subsequent tax years), by section 210(14) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).
Section 3(1) second PAYE period: repealed, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 3(1) second payment period: inserted, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 3(1) secondary employment earnings: inserted, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 3(1) security: inserted, on 26 July 1996 (applying on or after 1 October 1996 for the purposes of Parts 4A, 8, and 8A), by section 3(55) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 3(1) self-employed person: inserted, on 18 March 2019, by section 5(57) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 3(1) sensitive revenue information: inserted, on 18 March 2019, by section 5(58) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 3(1) serious threat: inserted, on 18 March 2019, by section 5(58) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 3(1) sex offence: inserted, on 18 March 2019, by section 5(58) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 3(1) separated person: repealed, on 17 October 2002 (applying on 1 December 2002), by section 73(6) of the Taxation (Relief, Refunds and Miscellaneous Provisions) Act 2002 (2002 No 32).
Section 3(1) settlement: repealed, on 21 February 2017, by section 9(9) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
Section 3(1) settlor: repealed, on 21 February 2017, by section 9(10) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
Section 3(1) short-process ruling: inserted, on 1 October 2019, by section 5(59) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 3(1) shortfall penalty: inserted, on 26 July 1996 (applying on or after 1 October 1996 for the purposes of Parts 4A, 8, and 8A of the Tax Administration Act 1994), by section 3(56) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 3(1) shortfall penalty: amended (with effect on 1 April 2005), on 21 June 2005, by section 120(4) of the Taxation (Base Maintenance and Miscellaneous Provisions) Act 2005 (2005 No 79).
Section 3(1) social security agreement: inserted, on 18 March 2019, by section 5(60) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 3(1) special account: repealed, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 3(1) special tax code certificate: repealed, on 1 April 2019, by section 261(22) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 3(1) special tax code notification: repealed, on 1 April 2019, by section 261(22) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 3(1) specified dividends: repealed, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 3(1) specified rate of additional tax: repealed, on 26 July 1996 (applying on or after 1 October 1996 for the purposes of Parts 4A, 8, and 8A of the Tax Administration Act 1994), by section 3(58) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 3(1) specified rate of interest: repealed, on 26 July 1996 (applying on or after 1 October 1996 for the purposes of Parts 4A, 8, and 8A of the Tax Administration Act 1994), by section 3(59) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 3(1) standard-cost household service: inserted, on 25 November 2003, by section 103(2) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).
Section 3(1) START tax type: repealed, on 1 April 2022, by section 180(7) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section 3(1) status ruling: inserted, on 20 May 1999 (applying on or after 20 May 1999), by section 62(1)(g) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
Section 3(1) student allowance: inserted, on 21 December 2004, by section 88(9) of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).
Section 3(1) student allowance: amended, on 1 August 2020, by section 668 of the Education and Training Act 2020 (2020 No 38).
Section 3(1) suspended recovery income: inserted, on 1 April 2025, by section 150(22) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
Section 3(1) tax: replaced, on 26 July 1996 (applying on or after 1 October 1996 for the purposes of Parts 4A, 8, and 8A of the Tax Administration Act 1994), by section 3(60) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 3(1) tax paragraph (a)(iii)(A): repealed (with effect on 30 June 2009 and applying for all income years beginning on or after 1 July 2009), on 6 October 2009, by section 596(5) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 3(1) tax paragraph (a)(iii)(B): replaced, on 26 July 1996 (applying to 1997–98 and subsequent income years), by section 430(f) of the Taxation (Core Provisions) Act 1996 (1996 No 67).
Section 3(1) tax paragraph (a)(iii)(CB): inserted, on 1 December 2006, by section 231 of the KiwiSaver Act 2006 (2006 No 40).
Section 3(1) tax paragraph (a)(iii)(CC): replaced, on 1 April 2021, by section 144(4)(a) of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
Section 3(1) tax paragraph (a)(iii)(CD): inserted, on 1 April 2008, by section 14(a) of the Taxation (KiwiSaver) Act 2007 (2007 No 110).
Section 3(1) tax paragraph (a)(iii)(CD): amended, on 1 April 2021, by section 144(4)(b) of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
Section 3(1) tax paragraph (a)(iii)(D): replaced, on 1 April 2012, by section 223 of the Student Loan Scheme Act 2011 (2011 No 62).
Section 3(1) tax paragraph (a)(v)(A): replaced, on 26 July 1996 (applying to 1997–98 and subsequent income years), by section 430(g) of the Taxation (Core Provisions) Act 1996 (1996 No 67).
Section 3(1) tax paragraph (a)(viii): repealed, on 1 April 2021, by section 144(4)(c) of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
Section 3(1) tax paragraph (a)(x): replaced, on 1 April 2012, by section 223 of the Student Loan Scheme Act 2011 (2011 No 62).
Section 3(1) tax paragraph (a)(x): amended (with effect on 1 April 2012), on 30 March 2013, by section 52(2) of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
Section 3(1) tax paragraph (a)(xi): repealed, on 1 April 2019, by section 5(62)(a) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 3(1) tax paragraph (a)(xii): inserted, on 8 September 1999 (applying on or after 20 May 1999), by section 58(1) of the Taxation (Remedial Matters) Act 1999 (1999 No 98).
Section 3(1) tax paragraph (a)(xiii): repealed, on 1 April 2020, by section 261(24) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 3(1) tax paragraph (a)(xiv): inserted, on 29 August 2011, by section 142(10) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section 3(1) tax paragraph (a)(xv): inserted (with effect on 21 February 2017), on 30 March 2021, by section 144(4)(d) of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
Section 3(1) tax paragraph (a)(xvi): inserted (with effect on 21 February 2017), on 30 March 2021, by section 144(4)(d) of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
Section 3(1) tax paragraph (ab): inserted, on 21 December 2005, by section 9 of the Taxation (Urgent Measures) Act 2005 (2005 No 121).
Section 3(1) tax paragraph (ab): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 3(1) tax paragraph (c): replaced, on 1 April 2012, by section 223 of the Student Loan Scheme Act 2011 (2011 No 62).
Section 3(1) tax paragraph (ca): inserted, on 17 October 2002 (applying to 2002–03 and subsequent income years), by section 73(7)(a) of the Taxation (Relief, Refunds and Miscellaneous Provisions) Act 2002 (2002 No 32).
Section 3(1) tax paragraph (ca)(ii): amended, on 1 April 2012, by section 223 of the Student Loan Scheme Act 2011 (2011 No 62).
Section 3(1) tax paragraph (ca)(iii): repealed, on 1 April 2019, by section 5(62)(b) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 3(1) tax paragraph (cb): inserted, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 3(1) tax paragraph (cc): inserted (with effect on 30 April 2020), on 16 May 2020, by section 3 of the COVID-19 Response (Further Management Measures) Legislation Act 2020 (2020 No 13).
Section 3(1) tax paragraph (cc): amended, on 30 March 2021, by section 144(4)(e) of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
Section 3(1) tax paragraph (cd): inserted, on 18 February 2021, by section 4(4) of the Taxation (COVID-19 Resurgence Support Payments and Other Matters) Act 2021 (2021 No 1).
Section 3(1) tax paragraph (cd): amended, on 25 November 2021, by section 4(5) of the Taxation (COVID-19 Support Payments and Working for Families Tax Credits) Act 2021 (2021 No 52).
Section 3(1) tax paragraph (ce): inserted, on 25 May 2022, by section 4(4) of the Taxation (Cost of Living Payments) Act 2022 (2022 No 25).
Section 3(1) tax paragraph (cf): inserted (with effect on 1 January 2025), on 29 March 2025, by section 150(23) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
Section 3(1) tax paragraph (d): inserted, on 10 October 2000 (applying to 2001–2002 and subsequent income years), by section 60(4) of the Taxation (GST and Miscellaneous Provisions) Act 2000 (2000 No 39).
Section 3(1) tax paragraph (d): amended, on 17 October 2002 (applying on or after 1 December 2002), by section 73(7)(b) of the Taxation (Relief, Refunds and Miscellaneous Provisions) Act 2002 (2002 No 32).
Section 3(1) tax paragraph (d)(iii)(A): repealed (with effect on 30 June 2009 and applying for all income years beginning on or after 1 July 2009), on 6 October 2009, by section 596(5) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 3(1) tax paragraph (d)(iii)(CB): inserted, on 1 April 2008, by section 14(c) of the Taxation (KiwiSaver) Act 2007 (2007 No 110).
Section 3(1) tax paragraph (d)(iii)(CC): inserted, on 1 April 2008, by section 14(c) of the Taxation (KiwiSaver) Act 2007 (2007 No 110).
Section 3(1) tax paragraph (d)(iii)(D): replaced, on 1 April 2012, by section 223 of the Student Loan Scheme Act 2011 (2011 No 62).
Section 3(1) tax paragraph (d)(vii): repealed, on 27 March 2001 (applying on first day of 2001–02 income year), by section 44(5)(b) of the Taxation (Beneficiary Income of Minors, Services-Related Payments and Remedial Matters) Act 2001 (2001 No 4).
Section 3(1) tax paragraph (d)(viiib): inserted, on 1 April 2008, by section 14(d) of the Taxation (KiwiSaver) Act 2007 (2007 No 110).
Section 3(1) tax paragraph (d)(ix): replaced, on 1 April 2012, by section 223 of the Student Loan Scheme Act 2011 (2011 No 62).
Section 3(1) tax paragraph (d)(ix): amended (with effect on 1 April 2012), on 30 March 2013, by section 52(2) of the Student Loan Scheme Amendment Act 2013 (2013 No 10).
Section 3(1) tax advice document: inserted, on 21 June 2005, by section 120(5) of the Taxation (Base Maintenance and Miscellaneous Provisions) Act 2005 (2005 No 79).
Section 3(1) tax advisor: inserted, on 21 June 2005, by section 120(5) of the Taxation (Base Maintenance and Miscellaneous Provisions) Act 2005 (2005 No 79).
Section 3(1) tax agent: replaced, on 19 December 2007, by section 188(6) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 3(1) tax agent paragraph (a): amended, on 18 March 2019, by section 5(63)(a) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 3(1) tax agent paragraph (b): replaced, on 18 March 2019, by section 5(63)(b) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 3(1) tax code: inserted, on 1 April 2019, by section 261(25) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 3(1) tax code certificate: repealed, on 1 April 2019, by section 261(26) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 3(1) tax code notification: repealed, on 1 April 2019, by section 261(26) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 3(1) tax contextual information: inserted, on 21 June 2005, by section 120(6) of the Taxation (Base Maintenance and Miscellaneous Provisions) Act 2005 (2005 No 79).
Section 3(1) tax credit quarter: inserted (with effect on 1 July 2024), on 29 March 2025, by section 150(24) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
Section 3(1) tax deduction: repealed, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 3(1) tax file number: inserted, on 1 October 2015, by section 4(3) of the Tax Administration Amendment Act 2015 (2015 No 83).
Section 3(1) tax form: inserted, on 26 July 1996 (applying on and after 1 October 1996 for the purposes of Parts 4A, 8, and 8A of the Tax Administration Act 1994), by section 3(61) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 3(1) tax law: inserted, on 26 July 1996 (applying on and after 1 October 1996 for the purposes of Parts 4A, 8, and 8A of the Tax Administration Act 1994), by section 3(61) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 3(1) tax law paragraph (a): replaced, on 30 March 2021, by section 144(5) of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
Section 3(1) tax law paragraph (d): amended, on 21 December 2010, by section 189 of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
Section 3(1) tax law paragraph (d): amended, on 1 April 2002, by section 338 of the Injury Prevention, Rehabilitation, and Compensation Act 2001 (2001 No 49).
Section 3(1) tax law paragraph (d): amended, on 19 December 1998, by section 416 of the Accident Insurance Act 1998 (1998 No 114).
Section 3(1) tax or duty: repealed, on 26 July 1996 (applying on and after 1 October 1996 for the purposes of Parts 4A, 8, and 8A of the Tax Administration Act 1994), by section 3(60) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 3(1) tax paid: inserted, on 26 July 1996 (applying on and after 1 October 1996 for the purposes of Parts 4A, 8, and 8A of the Tax Administration Act 1994), by section 3(61) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 3(1) tax payable: inserted, on 26 July 1996 (applying on and after 1 October 1996 for the purposes of Parts 4A, 8, and 8A of the Tax Administration Act 1994), by section 3(61) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 3(1) tax position: inserted, on 26 July 1996 (applying on and after 1 October 1996 for the purposes of Parts 4A, 8, and 8A of the Tax Administration Act 1994), by section 3(61) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 3(1) tax position: amended, on 26 March 2003 (applying to a tax position taken by a taxpayer on or after 1 April 2003), by section 82(9)(a) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
Section 3(1) tax position: amended, on 26 March 2003 (applying to a tax position taken by a taxpayer on or after 1 April 2003), by section 82(9)(b) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
Section 3(1) tax position paragraph (f): replaced, on 26 July 1996 (applying to 1997–98 and subsequent income years), by section 430(h) of the Taxation (Core Provisions) Act 1996 (1996 No 67).
Section 3(1) tax position paragraph (f): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 3(1) tax position paragraph (g): replaced, on 26 July 1996 (applying to 1997–98 and subsequent income years), by section 430(h) of the Taxation (Core Provisions) Act 1996 (1996 No 67).
Section 3(1) tax position paragraph (g): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 3(1) tax position paragraph (h): replaced, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 3(1) tax position paragraph (j): replaced, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 3(1) tax position paragraph (k): inserted, on 23 September 1997 (applying to 1998–99 and subsequent income years), by section 68(3) of the Taxation (Remedial Provisions) Act 1997 (1997 No 74).
Section 3(1) tax position paragraph (kb): inserted, on 1 April 2018 (applying for the 2018–19 and later income years), by section 49(1) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
Section 3(1) tax position paragraph (l): replaced, on 1 April 2019, by section 5(64)(a) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 3(1) tax position paragraph (m): replaced, on 1 April 2019, by section 5(64)(b) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 3(1) tax position paragraph (n): inserted, on 7 October 1998 (applying to 1999–2000 and subsequent income years), by section 3(1)(d) of the Taxation (Simplification and Other Remedial Matters) Act 1998 (1998 No 101).
Section 3(1) tax position paragraph (n): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 3(1) tax position paragraph (o): repealed, on 1 April 2020, by section 261(27) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 3(1) tax recovery agreement: inserted, on 20 May 1999 (applying on and after 20 May 1999), by section 62(1)(b) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
Section 3(1) tax return: replaced, on 1 July 2014, by section 151(6) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).
Section 3(1) tax return paragraph (a): amended, on 2 June 2016, by section 76(12) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section 3(1) tax return paragraph (ab): inserted, on 1 April 2019, by section 5(65) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 3(1) tax return paragraph (bb): inserted, on 21 February 2017, by section 9(11) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
Section 3(1) tax shortfall: replaced, on 29 March 2018, by section 261(28) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 3(1) tax shortfall paragraph (b): amended, on 30 March 2022 (with effect on 1 April 2019), by section 180(8) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section 3(1) tax to pay: inserted, on 26 July 1996 (applying on and after 1 October 1996 for the purposes of Parts 4A, 8, and 8A of the Tax Administration Act 1994), by section 3(61) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 3(1) taxation law: inserted (with effect on 1 April 1995), on 10 April 1995, by section 3(8) of the Tax Administration Amendment Act 1995 (1995 No 24).
Section 3(1) taxpayer: replaced, on 26 July 1996 (applying on and after 1 October 1996 for the purposes of Parts 4A, 8, and 8A of the Tax Administration Act 1994), by section 3(62) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 3(1) taxpayer identification number: inserted, on 21 February 2017, by section 9(12) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
Section 3(1) taxpayer’s paying rate: inserted, on 26 July 1996 (applying on and after 1 October 1996 for the purposes of Parts 4A, 8, and 8A of the Tax Administration Act 1994), by section 3(62) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 3(1) taxpayer’s tax position: replaced, on 7 October 1998 (applying to 1999–2000 and subsequent income years), by section 3(1)(e) of the Taxation (Simplification and Other Remedial Matters) Act 1998 (1998 No 101).
Section 3(1) taxpayer’s tax position paragraph (a): amended, on 24 October 2001 (applying to 2002–03 and subsequent income years), by section 189(7)(a) of the Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 (2001 No 85).
Section 3(1) taxpayer’s tax position paragraph (a)(ii): replaced, on 1 April 2019, by section 5(66) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 3(1) taxpayers tax position paragraph (b): repealed, on 24 October 2001 (applying on first day of 2002–03 income year), by section 189(7)(b) of the Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 (2001 No 85).
Section 3(1) taxpayer’s total tax figure: inserted, on 26 July 1996 (applying on or after 1 October 1996 for the purposes of Parts 4A, 8, and 8A of the Tax Administration Act 1994), by section 3(62) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 3(1) third instalment date: repealed, on 1 October 2007 (applying for income years corresponding to 2008–09 and subsequent tax years), by section 210(17) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).
Section 3(1) TIN: inserted, on 21 February 2017, by section 9(13) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
Section 3(1) trade credit: repealed, on 20 May 1999 (applying on and after 20 May 1999), by section 62(1)(i) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
Section 3(1) trustee income: repealed, on 1 October 2007 (applying for income years corresponding to 2008–09 and subsequent tax years), by section 210(18) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).
Section 3(1) unacceptable tax position: inserted, 26 March 2003 (applying to a tax position taken by a taxpayer on or after 1 April 2003), by section 82(10) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
Section 3(1) underestimation penalty: repealed, on 23 September 1997 (applying to 1998–99 and subsequent income years), by section 68(6) of the Taxation (Remedial Provisions) Act 1997 (1997 No 74).
Section 3(1) unpaid tax: inserted, on 26 July 1996 (applying on and from 1 October 1996 for the purposes of Parts 4A, 8, and 8A of the Tax Administration Act 1994), by section 3(65) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 3(1) victim: inserted, on 18 March 2019, by section 5(67) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 3(1) withdrawal tax: repealed, on 2 June 2016, by section 76(13) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section 3(1) workplace legislation: inserted, on 18 March 2019, by section 5(68) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 3(2): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 3(3): repealed (with effect on 1 April 2005), on 3 April 2006 (applying for income years corresponding to 2005–06 and subsequent tax years), by section 210(19) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).
Section 3(4): repealed (with effect on 1 April 2005), on 3 April 2006 (applying for income years corresponding to 2005–06 and subsequent tax years), by section 210(19) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).
4 Construction of statutory references
Except where there is express provision to the contrary,—
(a)
a reference in this Act to a particular Part, or section, is to be construed as a reference to a Part, or section, of this Act; and
(b)
a reference in this Act to some other particular element is to be construed as a reference to that element in its immediate context.
For example, a reference to paragraph (f) is to be construed as a reference to paragraph (f) of the section, subsection, definition, or clause in which that paragraph is contained.
4A Construction of certain provisions
(1)
In this Act—
(a)
a provision referring to a tax liability or to a tax obligation, or to something a person must do, refers to a taxpayer’s liability or obligation under a tax law:
(b)
a provision referring to a taxpayer taking a tax position or to a taxpayer’s tax position, also refers to the taxpayer’s—
(i)
claiming or returning or not claiming or returning the tax position; or
(ii)
paying, deducting, or withholding, or not paying, not deducting, or not withholding, an amount of tax; or
(iii)
being placed in the tax position,—
whether knowingly or intentionally or involuntarily:
(c)
a provision referring to a tax position taken in a tax return refers to a tax position taken explicitly or implicitly in the tax return:
(ca)
a provision referring to a tax position taken under Part 3, subpart 3B refers to a tax position taken explicitly or implicitly in an individual’s final account for a tax year, whether or not the tax position arises from information included by the Commissioner in the individual’s pre-populated account:
(d)
a provision referring to a taxpayer’s obligation to pay an amount of tax refers to the taxpayer’s obligation to pay tax to the Commissioner:
(e)
a provision referring to a taxpayer’s obligation to provide a tax return refers to the taxpayer’s obligation to complete and provide the tax return to the Commissioner:
(f)
a provision referring to a taxpayer’s obligation to provide a tax form refers to the taxpayer’s obligation to complete and provide the tax form to the person entitled to it:
(g)
a provision referring to any tax (including, for the avoidance of doubt, a penalty) or interest is to be taken to be a reference to all, or part, or the relevant part, of the tax or interest.
(2)
For the purposes of this Act—
(a)
[Repealed](b)
an amount of tax is deemed to be withheld when payment is made of the net amount of a PAYE income payment:
(bb)
a contribution deduction under the KiwiSaver Act 2006 is deemed to be made when payment is made of the net amount of a PAYE income payment:
(c)
the amount withheld or deducted described in paragraph (b) or paragraph (bb) is deemed to have been applied for a purpose other than in payment to the Commissioner if the amount is not paid to the Commissioner by the relevant due date:
(d)
if the amount withheld or deducted described in paragraph (b) or paragraph (bb) is not paid to the Commissioner by the due date, the amount is deemed to be unpaid tax:
(e)
despite paragraph (d), and only for the purposes of Part 10B, the amount of tax deemed to be withheld referred to in paragraph (b) is treated as tax paid although it may not have been paid to the Commissioner by the due date.
(3)
References in this Act to tax liabilities for withholding or deducting an amount of tax, or making or accounting for amounts deducted or amounts withheld, under the PAYE rules, to the extent necessary, are also to be construed as including references to liabilities for withholding, deducting, making, or accounting for,—
(a)
deductions of premiums payable under the Accident Rehabilitation and Compensation Insurance Act 1992 or regulations made under that Act or the Accident Insurance Act 1998 or a regulation made under that Act; or
(aa)
deductions of levies under the Accident Compensation Act 2001 or a regulation made under that Act; or
(b)
deductions under the Child Support Act 1991; or
(bb)
deductions under the KiwiSaver Act 2006; or
(bc)
amounts of KiwiSaver Act 2006 employer contributions paid or to be paid to the Commissioner, including an amount of compulsory employer contributions unpaid and specified in a notice under section 141(5) of that Act; or
(c)
salary or wage deductions under the Student Loan Scheme Act 2011,—
where the relevant liabilities arise or are to be performed at the same time as the tax liabilities under the PAYE rules.
(4)
When a taxpayer has an obligation under any of sections RA 5, RA 6, RA 10, RA 15 to RA 19, RD 2, RD 4, RD 22, RE 20, RE 21, or RF 13 of the Income Tax Act 2007—
(a)
furnishes a return that shows a liability to pay tax under that section; and
(b)
the tax is required to be paid by a due date for a return period; and
(c)
the liability shown in the return is greater than the tax that the taxpayer paid by the due date—
the taxpayer’s tax position in respect of the due date is the tax paid and not the amount of tax shown as payable in the tax return.
(5)
If a taxpayer does not provide a tax return for a return period, the taxpayer is deemed, in relation to each type of tax, to take, in respect of every due date that would be covered by a tax return for the return period if a return were provided, a tax position that is based on the tax of that type paid by the taxpayer for that return period.
(6)
Where—
(a)
a provision (in this subsection referred to as the relevant provision) of this Act applies in respect of a taxpayer making an objection to or a challenge in respect of an assessment or other disputable decision, but not to both; and
(b)
it is necessary or appropriate for the purposes of another provision of this Act that applies with respect to objections or challenges, but not to both, that the relevant provision apply,—
the relevant provision is to be read as if it referred with respect to both objections and challenges.
Section 4A: inserted, on 26 July 1996, by section 4 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 4A(1)(b)(ii): replaced, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 4A(1)(ca): replaced, on 1 April 2019, by section 6(1) (and see section 6(2) for application) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 4A(2)(a): repealed (with effect on 30 June 2009), on 6 October 2009 (applying for all income years beginning on or after 1 July 2009), by section 597(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 4A(2)(b): replaced, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 4A(2)(bb): replaced, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 4A(2)(c): amended (with effect on 30 June 2009), on 6 October 2009 (applying for all income years beginning on or after 1 July 2009), by section 597(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 4A(2)(c): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 4A(2)(c): amended, on 1 December 2006, by section 231 of the KiwiSaver Act 2006 (2006 No 40).
Section 4A(2)(c): amended (with effect from 1 April 1997), on 23 September 1997, by section 69(1) of the Taxation (Remedial Provisions) Act 1997 (1997 No 74).
Section 4A(2)(d): amended (with effect on 30 June 2009), on 6 October 2009 (applying for all income years beginning on or after 1 July 2009), by section 597(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 4A(2)(d): amended (with effect on 1 April 2008), on 6 October 2009, by section 597(4) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 4A(2)(d): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 4A(2)(d): amended, on 1 December 2006, by section 231 of the KiwiSaver Act 2006 (2006 No 40).
Section 4A(2)(d): amended (with effect from 1 April 1997), on 23 September 1997, by section 69(2) of the Taxation (Remedial Provisions) Act 1997 (1997 No 74).
Section 4A(2)(e): inserted (with effect on 1 April 2008), on 6 October 2009, by section 597(4) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 4A(3): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 4A(3)(a): amended, on 19 December 1998, by section 416 of the Accident Insurance Act 1998 (1998 No 114).
Section 4A(3)(aa): inserted, on 1 April 2002, by section 338 of the Injury Prevention, Rehabilitation, and Compensation Act 2001 (2001 No 49).
Section 4A(3)(aa): amended, on 21 December 2010, by section 189 of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
Section 4A(3)(bb): inserted, on 1 December 2006, by section 231 of the KiwiSaver Act 2006 (2006 No 40).
Section 4A(3)(bc): replaced, on 1 April 2021, by section 145 of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
Section 4A(3)(bc): amended, on 1 April 2023, by section 163 of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 4A(3)(c): replaced, on 1 April 2012, by section 223 of the Student Loan Scheme Act 2011 (2011 No 62).
Section 4A(4): replaced (with effect on 1 April 1997), on 23 September 1997, by section 69(3) of the Taxation (Remedial Provisions) Act 1997 (1997 No 74).
Section 4A(4): amended (with effect on 30 June 2009), on 6 October 2009 (applying for all income years beginning on or after 1 July 2009), by section 597(5) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 4A(4): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
4AB Status of examples
Examples are included in this Act only as an interpretational aid. If there is conflict between an example and a provision of this Act, the provision prevails.
Section 4AB: inserted, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
4B Application of Act in relation to Australian wine producer rebate
(1)
This section governs the application of this Act in relation to the rights and obligations of a person under a regulation made under section CV 8 of the Income Tax Act 2007, which relates to Australian wine producer rebates.
(2)
This Act applies to the rights and obligations as if—
(a)
a person’s claim for approval in respect of an Australian wine producer rebate were an application made by the person to the Commissioner for registration in respect of the administration of a tax imposed by an Inland Revenue Act:
(b)
a person’s claim for a payment of an Australian wine producer rebate were an application by the person to the Commissioner for a refund of a tax imposed by an Inland Revenue Act:
(c)
a decision concerning an entitlement of the person to a payment of an Australian wine producer rebate were a decision by the Federal Commissioner of Taxation for Australia concerning an entitlement of the person to a refund of a tax imposed by the Commonwealth of Australia:
(d)
a payment to the person of an Australian wine producer rebate were a refund by the Federal Commissioner of Taxation for Australia of a tax imposed by the Commonwealth of Australia.
Section 4B: inserted, on 21 December 2005, by section 10 of the Taxation (Urgent Measures) Act 2005 (2005 No 121).
Section 4B(1): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Part 2 Commissioner and department
Subpart 2A—Commissioner and department
Subpart 2A heading: inserted, on 26 June 2019, by section 83 of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).
5 Inland Revenue Department
There shall continue to be a department of State, to be known as the Inland Revenue Department, which shall be the same department as the Inland Revenue Department continued under the Inland Revenue Department Act 1974.
Compare: 1974 No 133 s 3(1)
5B Commissioner of Inland Revenue
The person appointed as chief executive of the department under the Public Service Act 2020 is designated the Commissioner of Inland Revenue.
Section 5B: inserted, on 26 June 2019, by section 84 of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).
Section 5B: amended, on 7 August 2020, by section 135 of the Public Service Act 2020 (2020 No 40).
Subpart 2B—Care and management of tax system
Subpart 2B heading: inserted, on 26 June 2019, by section 85 of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).
Responsibilities and duties
Heading: inserted, on 26 June 2019, by section 85 of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).
6 Responsibility of Ministers and officials to protect integrity of tax system
Best endeavours to protect integrity of tax system
(1)
Every Minister and every officer of any government agency having responsibilities under this Act or any other Act in relation to the collection of tax and for the other functions under the Inland Revenue Acts must at all times use their best endeavours to protect the integrity of the tax system.
Meaning of integrity of tax system
(2)
Without limiting its meaning, the integrity of the tax system includes—
(a)
the public perception of that integrity; and
(b)
the rights of persons to have their liability determined fairly, impartially, and according to law; and
(c)
the rights of persons to have their individual affairs kept confidential and treated with no greater or lesser favour than the tax affairs of other persons; and
(d)
the responsibilities of persons to comply with the law; and
(e)
the responsibilities of those administering the law to maintain the confidentiality of the affairs of persons; and
(f)
the responsibilities of those administering the law to do so fairly, impartially, and according to law.
Section 6: replaced, on 26 June 2019, by section 85 of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).
6A Commissioner’s duty of care and management
Care and management
(1)
The Commissioner is charged with the care and management of the taxes covered by the Inland Revenue Acts and with such other functions as may be conferred on the Commissioner.
Highest net revenue practicable within the law
(2)
In collecting the taxes committed to the Commissioner’s charge, and despite anything in the Inland Revenue Acts, it is the duty of the Commissioner to collect over time the highest net revenue that is practicable within the law having regard to—
(a)
the resources available to the Commissioner; and
(b)
the importance of promoting compliance, especially voluntary compliance, by all persons with the Inland Revenue Acts; and
(c)
the compliance costs incurred by persons.
Section 6A: replaced, on 26 June 2019, by section 85 of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).
6B Directions to Commissioner
Order for directions
(1)
The Governor-General may, by Order in Council and with due regard to this subpart and the provisions of the Public Service Act 2020 and the Public Finance Act 1989, issue directions to the Commissioner in relation to the administration of the Inland Revenue Acts.
Limitations
(2)
Subsection (1) does not authorise the giving of directions concerning the tax affairs of individual persons or the interpretation of tax law.
Secondary legislation
(3)
An order under subsection (1)—
(a)
is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements); but
(b)
becomes binding on the Commissioner in accordance with subsection (4) (even if it is not yet published).
Order laid before House of Representatives
(3B)
If an order is made under subsection (1), the Minister of Revenue must ensure that any accompanying statement of the reasons for the order, and any advice of the Commissioner in relation to it, is laid before the House of Representatives as soon as practicable after it is made.
Binding after 7 days
(4)
An order made under subsection (1) becomes binding on the Commissioner on the 7th day after the date on which it is made.
| Legislation Act 2019 requirements for secondary legislation made under this section | ||||
| Publication | PCO must publish it on the legislation website and notify it in the Gazette | LA19 s 69(1)(c) | ||
| Presentation | The Minister must present it to the House of Representatives and comply with subsection (3B) | LA19 s 114, Sch 1 cl 32(1)(a) | ||
| Disallowance | It may be disallowed by the House of Representatives | LA19 ss 115, 116 | ||
| This note is not part of the Act. | ||||
Section 6B: replaced, on 26 June 2019, by section 85 of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).
Section 6B(1): amended, on 7 August 2020, by section 135 of the Public Service Act 2020 (2020 No 40).
Section 6B(3) heading: replaced, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
Section 6B(3): replaced, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
Section 6B(3B) heading: inserted, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
Section 6B(3B): inserted, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
Remedial powers
Heading: inserted, on 26 June 2019, by section 85 of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).
6C Powers to modify provisions of Inland Revenue Acts
Nature of remedial powers
(1)
Sections 6D to 6G set out remedial powers that provide for modifications to, and exemptions from, provisions of the Inland Revenue Acts to apply in certain circumstances and for a limited time. The powers are in addition to sections 6 and 6A.
Purpose of remedial powers
(2)
The purpose of sections 6D to 6G is to provide flexibility to temporarily remedy or mitigate the effect of a provision of the Inland Revenue Acts by making a modification or granting an exemption when it is reasonably necessary—
(a)
due to an obvious error in the provision:
(b)
to give effect to the intended purpose or object of the provision, to resolve ambiguity, or to reconcile inconsistencies.
General application
(3)
A modification or exemption applies generally unless it is expressly stated that it applies only to a particular class of persons or circumstances.
Optional application
(4)
Despite subsection (3), a person to whom a modification or exemption is available may choose whether or not to apply the modification or exemption by the means set out in the modification or exemption under section 6D or 6E, as applicable.
Effect of not applying modification or exemption
(5)
If a person chooses not to apply a modification or exemption, the law applies as if the modification or exemption did not exist in relation to the person.
Section 6C: inserted, on 26 June 2019, by section 85 of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).
6D Modifications made by Order in Council
Orders in Council
(1)
The Governor-General may, by Order in Council made on the recommendation of the Minister of Revenue, modify the application of the Inland Revenue Acts by providing that a provision of the Inland Revenue Acts does not apply or applies with conditions.
Content of modifications
(2)
A modification made under subsection (1)—
(a)
must specify a period for which the modification applies; and
(b)
must, despite section 6C(3), allow a person to whom the modification is available to choose whether or not to apply the modification by means set out in the modification; and
(c)
may—
(i)
be subject to terms and conditions:
(ii)
state whether the modification applies generally or is limited to a particular class of persons or circumstances:
(iii)
provide for transitional, savings, and related matters; and
(d)
may be made by—
(i)
stating an alternative means of complying with the provision:
(ii)
substituting a discretionary power to be exercised by the Commissioner.
Application periods for modifications
(3)
For the purposes of subsection (2)(a), a period for which a modification applies—
(a)
must end no later than the end of the second income year after the income year corresponding to the tax year in which the modification comes into force; and
(b)
may include a period before the date on which the modification comes into force, but any period of retrospective application must not extend back more than 5 income years before the income year corresponding to the tax year in which the modification comes into force; and
(c)
subject to paragraph (b), may include a period before the date on which this section comes into force.
Opt-out or opt-in modifications permitted
(4)
For the purposes of subsection (2)(b), a modification may provide that it applies to a person to whom it is available—
(a)
unless the person chooses not to apply it; or
(b)
only if the person chooses to apply it.
Minister’s recommendations
(5)
Before making a recommendation referred to in subsection (1), the Minister of Revenue must be satisfied that—
(a)
the modification is reasonably necessary to do 1 or more of the following:
(i)
to remedy or mitigate the effect of an obvious error in a provision of the Inland Revenue Acts:
(ii)
to give effect to the intended purpose or object of a provision of the Inland Revenue Acts, or to resolve ambiguity:
(iii)
to reconcile an inconsistency between certain provisions of the Inland Revenue Acts, or between the relevant provision and an administrative practice of the Commissioner; and
(b)
the modification does not materially affect the intended scope or effect of the provisions to which it applies; and
(c)
the modification is not inconsistent with the intended purpose or object of the relevant provision; and
(d)
the modification is the most appropriate way of addressing or resolving the issue at the time; and
(e)
the extent of the modification is not broader than is reasonably necessary to address or resolve the issue that gave rise to it; and
(f)
for a modification that applies to a person unless they choose not to apply it, the person has a reasonable opportunity to choose not to apply it; and
(g)
a consultative process has been undertaken as described in section 6F, unless the Minister has dispensed with the consultative process under section 6F(3); and
(h)
making the modification will not, in substance, have the effect of extending the period for which a modification previously made under this section, or an exemption previously granted under section 6E, applies.
Secondary legislation
(6)
An order under this section is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).
Publication of modifications
(7)
The Minister of Revenue’s reasons for recommending a modification, and an explanation of the way in which the modification complies with this section, must be published together with an order under this section.
| Legislation Act 2019 requirements for secondary legislation made under this section | ||||
| Publication | PCO must publish it on the legislation website and notify it in the Gazette | LA19 s 69(1)(c) | ||
| Subsection (7) must also be complied with | ||||
| Presentation | The Minister must present it to the House of Representatives | LA19 s 114, Sch 1 cl 32(1)(a) | ||
| Disallowance | It may be disallowed by the House of Representatives | LA19 ss 115, 116 | ||
| This note is not part of the Act. | ||||
Section 6D: inserted, on 26 June 2019, by section 85 of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).
Section 6D(6) heading: replaced, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
Section 6D(6): replaced, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
Section 6D(7) heading: inserted, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
Section 6D(7): inserted, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
6E Exemptions granted by Commissioner
Exemptions
(1)
Subject to subsection (2), the Commissioner may grant an exemption from a provision of the Inland Revenue Acts if the Commissioner is satisfied that the exemption is reasonably necessary to do 1 or more of the following:
(a)
to remedy or mitigate the effect of an obvious error in a provision of the Inland Revenue Acts:
(b)
to give effect to the intended purpose or object of a provision of the Inland Revenue Acts, or to resolve ambiguity:
(c)
to reconcile an inconsistency between certain provisions of the Inland Revenue Acts, or between the relevant provision and an administrative practice of the Commissioner.
Limitations
(2)
The Commissioner may grant the exemption only if the Commissioner is satisfied that—
(a)
the exemption—
(i)
does not materially affect the intended scope or effect of the provisions to which it applies; and
(ii)
is not inconsistent with the intended purpose or object of the relevant provision; and
(iii)
has no, or has only negligible, fiscal implications for the Crown; and
(iv)
is the most appropriate way of addressing or resolving the issue at the time; and
(b)
the extent of the exemption is not broader than is reasonably necessary to address or resolve the issue that gave rise to it; and
(c)
for an exemption that applies to a person unless they choose not to apply it, the person has a reasonable opportunity to choose not to apply it; and
(d)
a consultative process has been undertaken as described in section 6F, unless the Commissioner has dispensed with the consultative process under section 6F(3); and
(e)
granting the exemption will not, in substance, have the effect of extending the period for which a modification previously made under section 6D, or an exemption previously granted under this section, applies.
Content of exemptions
(3)
An exemption made under subsection (1)—
(a)
must specify a period for which the exemption applies; and
(b)
must, despite section 6C(3), allow a person to whom the exemption is available to choose whether or not to apply the exemption by means set out in the exemption; and
(c)
may—
(i)
include terms and conditions as the Commissioner thinks fit:
(ii)
state whether the exemption applies generally or is limited to a particular class of persons or circumstances:
(iii)
provide for transitional, savings, and related matters.
Application periods for exemptions
(4)
For the purposes of subsection (3)(a), a period for which an exemption applies—
(a)
must end no later than the end of the second income year after the income year corresponding to the tax year in which the exemption comes into force; and
(b)
may include a period before the date on which the exemption comes into force, but any period of retrospective application must not extend back further than the start of the income year corresponding to the tax year in which the exemption comes into force; and
(c)
subject to paragraph (b), may include a period before the date on which this section comes into force.
Opt-out or opt-in exemptions permitted
(5)
For the purposes of subsection (3)(b), an exemption may provide that it applies to a person to whom it is available—
(a)
unless the person chooses not to apply it; or
(b)
only if the person chooses to apply it.
Secondary legislation
(6)
An exemption under this section is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).
Publication of exemptions
(7)
The Commissioner’s reasons for granting an exemption, and an explanation of the way in which the exemption complies with this section, must be published together with the exemption.
| Legislation Act 2019 requirements for secondary legislation made under this section | ||||
| Publication | PCO must publish it on the legislation website and notify it in the Gazette | LA19 s 69(1)(c) | ||
| Subsection (7) must also be complied with | ||||
| Presentation | The Minister must present it to the House of Representatives | LA19 s 114, Sch 1 cl 32(1)(a) | ||
| Disallowance | It may be disallowed by the House of Representatives | LA19 ss 115, 116 | ||
| This note is not part of the Act. | ||||
Section 6E: inserted, on 26 June 2019, by section 85 of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).
Section 6E(6) heading: replaced, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
Section 6E(6): replaced, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
Section 6E(7) heading: replaced, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
Section 6E(7): replaced, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
6F Consultation on proposed modifications and exemptions
Consultative process
(1)
Before the Minister of Revenue recommends that a modification be made under section 6D, or the Commissioner grants an exemption under section 6E, a consultative process must be undertaken that includes the distribution, to persons or representatives of persons that it is considered reasonable to consult for the particular purpose, of—
(a)
the proposed modification or exemption, as applicable; and
(b)
an explanation of the way in which, as applicable,—
(i)
the modification would comply with the requirements of section 6D(5):
(ii)
the exemption would comply with the requirements of section 6E(2).
Period of consultation
(2)
The consultative process must provide a period of consultation of at least 6 weeks.
Cases of urgency
(3)
Despite subsections (1) and (2), the Minister or Commissioner, as applicable, may, if satisfied that a case of urgency exists, either reduce the period of consultation or dispense with the consultative process in relation to a modification or an exemption.
Section 6F: inserted, on 26 June 2019, by section 85 of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).
6G Meaning of obvious error
For the purposes of this subpart, obvious error means an error of a type that arises only if—
(a)
the intended purpose or object of the relevant provision is clear; and
(b)
the intended purpose or object cannot be carried into effect by the relevant provision; and
(c)
the substance of the provision that Parliament would have made, had the error become known or had the circumstances been allowed for, is clear.
Section 6G: inserted, on 26 June 2019, by section 85 of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).
COVID-19 response variations
Heading: inserted (with effect on 17 March 2020), on 30 April 2020, by section 18 of the COVID-19 Response (Taxation and Other Regulatory Urgent Measures) Act 2020 (2020 No 10).
6H COVID-19 response: powers to vary provisions of Inland Revenue Acts
Commissioner’s discretionary power
(1)
Section 6I provides the Commissioner with a discretionary power to extend or otherwise modify a due date, deadline, time period, or timeframe set out in an Inland Revenue Act, or to vary a procedural or administrative requirement of an Inland Revenue Act, to apply in certain circumstances and for a limited time.
Purpose of section 6I
(2)
The purpose of section 6I is to provide the Commissioner with some flexibility to mitigate the effect of a provision of the Inland Revenue Acts when compliance is impossible, impractical, or unreasonable for a person or a class of persons in circumstances arising either from the imposition of COVID-19 response measures or as a consequence of COVID-19.
Supplementary discretionary power
(3)
The discretionary power to make a variation under section 6I supplements the powers of the Commissioner under the provisions of this Act. The power to vary a provision is intended to be used only when the Commissioner considers that an appropriate outcome is not possible or is difficult to achieve under the terms of an existing provision.
Application of section 6I
(4)
Section 6I applies in relation to a variation of a provision for some or all of the period starting on 17 March 2020 and ending on 30 September 2021. However, the Governor-General may, by Order in Council made on the recommendation of the Minister of Revenue, extend the application of section 6I if it is reasonably necessary in the circumstances because of the continuing impact of COVID-19 related measures or circumstances.
Extended meaning of Inland Revenue Acts
(5)
For the purpose of this section and section 6I, Inland Revenue Acts includes the Unclaimed Money Act 1971.
Secondary legislation
(6)
An order under subsection (4) is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).
| Legislation Act 2019 requirements for secondary legislation made under this section | ||||
| Publication | PCO must publish it on the legislation website and notify it in the Gazette | LA19 s 69(1)(c) | ||
| Presentation | The Minister must present it to the House of Representatives | LA19 s 114, Sch 1 cl 32(1)(a) | ||
| Disallowance | It may be disallowed by the House of Representatives | LA19 ss 115, 116 | ||
| This note is not part of the Act. | ||||
Section 6H: inserted (with effect on 17 March 2020), on 30 April 2020, by section 18 of the COVID-19 Response (Taxation and Other Regulatory Urgent Measures) Act 2020 (2020 No 10).
Section 6H(1): amended (with effect on 17 March 2020), on 6 August 2020, by section 3 of the COVID-19 Response (Further Management Measures) Legislation Act (No 2) 2020 (2020 No 58).
Section 6H(6) heading: inserted, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
Section 6H(6): inserted, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
6I COVID-19 response: Commissioner’s variations
Power to vary
(1)
The Commissioner may vary the application of a provision in an Inland Revenue Act by—
(a)
extending or otherwise modifying a due date, deadline, time period, or timeframe by, within, or in relation to which—
(i)
a person must comply with a requirement set out in the provision:
(ii)
a person must make an election under the provision:
(iii)
a person’s entitlements, rights, or obligations are affected:
(b)
modifying a procedural or administrative requirement that a person must meet under the provision, for example, modifying the nature or form of information or action required under the provision.
Meaning of modifying
(1B)
For the purposes of subsection (1), modifying a due date, deadline, time period, or timeframe may include shortening or reducing it if the Commissioner considers it would be advantageous for persons generally or for a particular class of persons.
Person treated as meeting requirements
(2)
A person who complies with a variation made under this section is treated as having met their requirements under the relevant Act.
General application
(3)
A variation made under subsection (1) applies generally unless it is expressly stated that the variation—
(a)
applies to a particular class of persons or circumstances; or
(b)
requires certain conditions to be met for the variation to apply.
Optional application
(4)
Despite subsection (3), a person to whom a variation is available may choose whether or not to apply the variation by taking a tax position, for example, in a return of income, or by informing the Commissioner of their election. If the person chooses not to apply a variation, the law applies as if the variation did not apply in relation to the person.
Secondary legislation
(5)
A variation under this section is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).
| Legislation Act 2019 requirements for secondary legislation made under this section | ||||
| Publication | The maker must publish it in a manner chosen by the maker | LA19 ss 73, 74(1)(a), Sch 1 cl 14 | ||
| Presentation | It is not required to be presented to the House of Representatives because a transitional exemption applies under Schedule 1 of the Legislation Act 2019 | LA19 s 114, Sch 1 cl 32(1)(a) | ||
| Disallowance | It may be disallowed by the House of Representatives | LA19 ss 115, 116 | ||
| This note is not part of the Act. | ||||
Section 6I: inserted (with effect on 17 March 2020), on 30 April 2020, by section 18 of the COVID-19 Response (Taxation and Other Regulatory Urgent Measures) Act 2020 (2020 No 10).
Section 6I: extended for a further period that starts on 1 October 2022 and ends on 30 September 2023, on 30 September 2022, by clause 3 of the Tax Administration (COVID-19 Response Variations) Order 2022 (SL 2022/245).
Section 6I(1)(a): amended (with effect on 17 March 2020), on 6 August 2020, by section 3 of the COVID-19 Response (Further Management Measures) Legislation Act (No 2) 2020 (2020 No 58).
Section 6I(1B) heading: inserted (with effect on 17 March 2020), on 6 August 2020, by section 3 of the COVID-19 Response (Further Management Measures) Legislation Act (No 2) 2020 (2020 No 58).
Section 6I(1B): inserted (with effect on 17 March 2020), on 6 August 2020, by section 3 of the COVID-19 Response (Further Management Measures) Legislation Act (No 2) 2020 (2020 No 58).
Section 6I(5) heading: replaced, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
Section 6I(5): replaced, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
6J Tax relief for emergencies
(1)
If there is an emergency event, the Governor-General may, by Order in Council made on the recommendation of the Minister of Revenue, make regulations specifying—
(a)
that 1 or both of the following apply:
(i)
any 1 or more of sections FP 5 to FP 27 of the Income Tax Act 2007:
(ii)
schedule 7, part C, subpart 1, clause 23C, if the emergency event has been declared a state of national emergency under section 66 of the Civil Defence Emergency Management Act 2002:
(b)
the period for which a section or clause referred to in paragraph (a) applies:
(c)
the start date of the emergency event:
(d)
the end date of the emergency event period.
(2)
Regulations made under this section may be expressed to come into force on a day that is before, on, or after the date on which they are made, but not earlier than the date specified as the beginning of the emergency event, and the regulations come into force or, as the case may be, are deemed to have come into force accordingly.
(3)
Regulations made under this section may be retrospective only to the extent provided for in subsection (2).
(4)
If regulations made under subsection (1) specify that section FP 22 applies, the time limit imposed by section FP 22(3) may be extended by Order in Council made—
(a)
on the recommendation of the Minister of Revenue; and
(b)
before the expiry of the relevant time limit in section FP 22(3) that applies immediately before the Order in Council comes into force.
(5)
Regulations made under this section are secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).
| Legislation Act 2019 requirements for secondary legislation made under this section | ||||
| Publication | PCO must publish it on the legislation website and notify it in the Gazette | LA19 s 69(1)(c) | ||
| Presentation | The Minister must present it to the House of Representatives | LA19 s 114 | ||
| Disallowance | It may be disallowed by the House of Representatives | LA19 ss 115, 116 | ||
| This note is not part of the Act. | ||||
Section 6J: inserted, on 1 April 2025, by section 151 of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
Subpart 2C—Functions and powers of Commissioner
Subpart 2C heading: inserted, on 26 June 2019, by section 86 of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).
7 Delegation of powers by Commissioner
(1)
The Commissioner may delegate in accordance with clauses 2 to 4 of Schedule 6 of the Public Service Act 2020 any of the Commissioner’s functions or powers under this Act or any other Act (including functions or powers delegated to the Commissioner under this Act or any other Act), except that—
(a)
the delegation of functions or powers delegated to the Commissioner by a Minister requires the prior written approval of that Minister; and
(b)
the delegation of functions or powers delegated to the Commissioner by the Public Service Commissioner requires the prior written approval of the Public Service Commissioner.
(2)
However, the Commissioner may not delegate to a person outside the public service (as described in clause 2(5) of Schedule 6 of the Public Service Act 2020) any of the following functions or powers:
(a)
the Commissioner’s functions or powers in relation to obtaining information from and about taxpayers (sections 16 to 17L of this Act); and
(b)
(c)
the Commissioner’s functions or powers in relation to deducting amounts from payments due (section 157 of this Act, section 193 of the Student Loan Scheme Act 2011 but in respect only of the powers in section 157 of this Act, and section 154 of the Child Support Act 1991); and
(d)
the Commissioner’s functions or powers in relation to tax recovery agreements negotiated between the government of a territory outside New Zealand and the Government of New Zealand (Part 10A of this Act).
(3)
Clauses 2 to 4 of Schedule 6 of the Public Service Act 2020 apply to delegations under this section as if those delegations were made under clause 2 of that schedule.
Section 7: replaced, on 18 July 2013, by section 61 of the State Sector Amendment Act 2013 (2013 No 49).
Section 7(1): amended, on 7 August 2020, by section 135 of the Public Service Act 2020 (2020 No 40).
Section 7(1)(b): amended, on 7 August 2020, by section 135 of the Public Service Act 2020 (2020 No 40).
Section 7(2): amended, on 7 August 2020, by section 135 of the Public Service Act 2020 (2020 No 40).
Section 7(2)(a): amended, on 18 March 2019, by section 113 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 7(3): replaced, on 7 August 2020, by section 135 of the Public Service Act 2020 (2020 No 40).
7AAAA Administration of final-year fees-free scheme
(1)
It is a function of the Commissioner to administer the final-year fees-free scheme (the scheme) on behalf of the Crown.
(2)
If a person who receives an entitlement under the scheme from the Commissioner does not qualify for the entitlement under the eligibility requirements of the scheme, the person must immediately repay to the Commissioner the total amount of the entitlement.
(3)
The Commissioner must publish, on an internet site administered by the Commissioner, the eligibility requirements referred to in subsection (2).
Section 7AAAA: inserted (with effect on 1 January 2025), on 29 March 2025, by section 152 of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
7AAA Administration of cost of living payments scheme
(1)
It is a function of the Commissioner to administer the cost of living payments scheme (the scheme) on behalf of the Crown.
(2)
If a person who receives a grant under the scheme from the Commissioner does not qualify for the grant under the eligibility requirements of the scheme, the person must immediately repay to the Commissioner the total amount of the grant.
(3)
The Commissioner must publish, on an internet site administered by the Commissioner, the eligibility requirements referred to in subsection (2).
Section 7AAA: inserted, on 25 May 2022, by section 5 of the Taxation (Cost of Living Payments) Act 2022 (2022 No 25).
7AA Authorisation to make payments under small business cashflow loan scheme
(1)
The Commissioner, on behalf of the Crown, may grant a loan under the small business cashflow scheme (the scheme) to a person who—
(a)
meets the eligibility requirements for a loan under the scheme; and
(b)
makes a loan application to the Commissioner; and
(c)
enters into a loan contract with the Commissioner.
(2)
[Repealed](3)
The person in whose name the loan application is made—
(a)
must provide the information to the Commissioner required by the loan contract; and
(b)
is bound by the terms of the loan contract and must pay or repay all amounts payable by the person under the loan contract at the times and in the manner provided in the loan contract.
(4)
If a person who receives a payment from the Commissioner does not meet the required eligibility requirements, the person, or an associated person who receives the benefit of the payment other than as adequate consideration for a supply of goods or services, must repay the total amount to the Commissioner immediately.
(4B)
For the purposes of this section, the chief executive of the Ministry of Social Development is authorised to provide the Commissioner with any information relating to the wage subsidy scheme administered by the Ministry.
(4C)
The Commissioner may use the information provided under subsection (4B) in connection with the exercise or performance of any of the Commissioner’s duties, powers, or functions under the Inland Revenue Acts.
(5)
A loan contract under this section is not a credit contract or a consumer credit contract for the purposes of the Credit Contracts and Consumer Finance Act 2003.
(6)
For the purposes of this section,—
loan contract means a loan contract or agreement that—
(a)
is provided by or on behalf of the Commissioner to a person in whose name a loan application has been made; and
(b)
records the terms on which a loan under the small business cashflow scheme is, or will be, made
small business cashflow scheme means the Small Business Cashflow (Loan) Scheme established and administered by the Crown to provide loans to assist small-to-medium businesses in the circumstances arising from the continuing impact of COVID-19 related measures or circumstances
wage subsidy scheme means a subsidy scheme that is established as part of the Government’s COVID-19 response measures and which the Ministry administers on behalf of the Government.
(7)
Eligibility requirements under this section are secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).
| Legislation Act 2019 requirements for secondary legislation made under this section | ||||
| Publication | The maker must publish it on an internet site administered by the maker | LA19 ss 73, 74(1)(a), Sch 1 cl 14 | ||
| Presentation | It is not required to be presented to the House of Representatives because a transitional exemption applies under Schedule 1 of the Legislation Act 2019 | LA19 s 114, Sch 1 cl 32(1)(a) | ||
| Disallowance | It may be disallowed by the House of Representatives | LA19 ss 115, 116 | ||
| This note is not part of the Act. | ||||
Section 7AA: inserted, on 30 April 2020, by section 19 of the COVID-19 Response (Taxation and Other Regulatory Urgent Measures) Act 2020 (2020 No 10).
Section 7AA(2): repealed, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
Section 7AA(4): amended, on 30 March 2022, by section 181 of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section 7AA(4B): inserted (with effect on 30 April 2020), on 16 May 2020, by section 3 of the COVID-19 Response (Further Management Measures) Legislation Act 2020 (2020 No 13).
Section 7AA(4C): inserted (with effect on 30 April 2020), on 16 May 2020, by section 3 of the COVID-19 Response (Further Management Measures) Legislation Act 2020 (2020 No 13).
Section 7AA(6) small business cashflow scheme: replaced (with effect on 30 April 2020), on 16 May 2020, by section 3 of the COVID-19 Response (Further Management Measures) Legislation Act 2020 (2020 No 13).
Section 7AA(6) wage subsidy scheme: inserted (with effect on 30 April 2020), on 16 May 2020, by section 3 of the COVID-19 Response (Further Management Measures) Legislation Act 2020 (2020 No 13).
Section 7AA(7): inserted, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
7AAB Authorisation to make COVID-19 support payments
(1)
The purpose of this section is to authorise the making of payments under a COVID-19 support payments scheme (the CSP scheme) as grants to eligible persons in New Zealand who are financially affected by a public health measure, business circumstance, or matter that is related to COVID-19 (a COVID-19 circumstance), or by a group of COVID-19 circumstances.
(2)
The Commissioner, on behalf of the Crown, may make a grant under the CSP scheme (a grant) to a person if—
(a)
the CSP scheme is declared active for the COVID-19 circumstance or group of COVID-19 circumstances affecting the person by an Order in Council made under section 7AAC; and
(b)
for the period of activation of the CSP scheme,—
(i)
the person meets the eligibility requirements referred to in subsection (3)(b)(i) for a grant; and
(ii)
the person, or another person on their behalf, applies to the Commissioner for the grant.
(3)
For the purposes of subsection (2) and an activation period, the Commissioner—
(a)
must set out the procedure required for a person to make an application for a grant:
(b)
must determine—
(i)
the eligibility requirements that a person must meet to qualify for a grant:
(ii)
the terms and conditions that apply to a grant:
(c)
must publish, on an internet site administered by the Commissioner, the eligibility requirements referred to in paragraph (b)(i).
(4)
If a person applies for a grant on behalf of another person, both the person and the person in whose name the application is made must provide information as required by the Commissioner.
(5)
The person in whose name an application is made is bound by the CSP terms of the grant.
(6)
The total amount of a grant paid to the person, together with any amount payable under the CSP terms, must be repaid to the Commissioner if the CSP terms require repayment.
(7)
If a person who receives a grant from the Commissioner does not meet the eligibility requirements referred to in subsection (3)(b)(i), the person, or an associated person who receives the benefit of the grant, other than as adequate consideration for a supply of goods or services must immediately repay to the Commissioner the total amount of the grant together with any amount payable under the CSP terms.
(8)
The persons referred to in subsection (4) must keep records referred to in section 22 to demonstrate that the eligibility requirements are met and the CSP terms have not been breached.
(9)
For the purposes of this section and section 7AAC, the CSP terms of a grant for an activation period mean—
(a)
the terms and conditions applying in relation to a person’s eligibility for the grant at the time the grant is made, and any other terms and conditions determined by the Commissioner under subsection (3)(b)(ii):
(b)
the terms set out in an application for the grant that is made by or on behalf of a person, including the contents of a declaration, consent, or other representation made by or on behalf of the person:
(c)
the terms and conditions set out in an agreement between the Commissioner and the person receiving the grant.
(10)
The COVID-19 resurgence support payments scheme is a CSP scheme and the CRSP terms of a grant under that scheme are CSP terms of the grant.
Section 7AAB: replaced, on 25 November 2021, by section 5(1) of the Taxation (COVID-19 Support Payments and Working for Families Tax Credits) Act 2021 (2021 No 52).
Section 7AAB(7): amended, on 30 March 2022, by section 182 of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
7AAC Orders in Council related to COVID-19 support payments scheme
(1)
For the purposes of section 7AAB, the Governor-General may by Order in Council—
(a)
declare the activation of a COVID-19 support payments scheme (the CSP scheme) in relation to a COVID-19 circumstance, or a group of COVID-19 circumstances, which affects eligible persons in New Zealand:
(b)
specify the period for which, or the circumstances in which, the CSP scheme is to operate in relation to the COVID-19 circumstance or group of COVID-19 circumstances:
(c)
describe a class or classes of persons who may apply for a grant under the CSP scheme and the amount of the grant to which they may be entitled:
(d)
specify amendments to the CSP scheme, the CSP terms of a grant, or the matters referred to in section 7AAB(3)(a) and (b):
(e)
extend, renew, or replace a time limit referred to in schedule 7, part A, clause 13B(2)(b).
(2)
For an order made under the power given in subsection (1)(e), the order—
(a)
expires if not renewed or replaced under paragraph (b), after—
(i)
the period set out in the order, if applicable; or
(ii)
if no period is set out, 6 months after the order comes into force:
(b)
may be renewed or replaced by an Order in Council made on or before the date on which the order would otherwise expire.
(3)
An Order in Council made under subsection (1) or (2)(b) is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).
| Legislation Act 2019 requirements for secondary legislation made under this section | ||||
| Publication | PCO must publish it on the legislation website and notify it in the Gazette | LA19 s 69(1)(c) | ||
| Presentation | The Minister must present it to the House of Representatives | LA19 s 114 | ||
| Disallowance | It may be disallowed by the House of Representatives | LA19 ss 115, 116 | ||
| This note is not part of the Act. | ||||
Section 7AAB: replaced, on 25 November 2021, by section 5(1) of the Taxation (COVID-19 Support Payments and Working for Families Tax Credits) Act 2021 (2021 No 52).
7A Authorisation to take securities
(1)
The Commissioner may—
(a)
accept securities to secure the performance of tax obligations; and
(b)
require that securities be given on such terms (including the manner of payment of any costs and disbursements associated with the security) as the Commissioner specifies; and
(c)
require that securities be transferred into the name of, and be held by, the Commissioner until the performance of a tax obligation or obligations; and
(d)
if the Commissioner considers that the existing securities are or may be or become inadequate or insufficient, call for additional or substitute securities; and
(e)
enforce a security if a taxpayer defaults in the performance of the tax obligation in respect of which the security was taken; and
(f)
grant discharges, releases, or transfers of securities on terms the Commissioner considers appropriate; and
(g)
recover from a taxpayer the costs of accepting, enforcing, discharging, releasing, or transferring any security.
(2)
The Commissioner is not to be liable for any loss suffered in relation to an asset or right that is the subject of a security, unless the Commissioner is guilty of wilful misconduct in dealing with the asset or right.
(3)
For the purposes of this section, the Commissioner and the Commissioner’s successors in office—
(a)
are deemed to be a corporation sole; and
(b)
as such corporation sole, are to have and may exercise all the rights, powers, and privileges, and may incur all the liabilities and obligations, of a natural person of full age and capacity.
(4)
Nothing in subsection (1) limits—
(a)
any tax law which specifies the Commissioner’s entitlement to a charge or other security; or
(b)
the Commissioner’s rights under the terms of a document evidencing or constituting a security; or
(c)
the Commissioner’s other rights to collect or recover tax or other amounts.
Section 7A: inserted, on 1 October 1996, by section 5 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
8 Deputy Commissioners of Inland Revenue
[Repealed]Section 8: repealed, on 10 April 1995, by section 5 of the Tax Administration Amendment Act 1995 (1995 No 24).
9 Regional Controllers of Inland Revenue
[Repealed]Section 9: repealed, on 10 April 1995, by section 5 of the Tax Administration Amendment Act 1995 (1995 No 24).
10 District Commissioners of Inland Revenue
[Repealed]Section 10: repealed, on 10 April 1995, by section 5 of the Tax Administration Amendment Act 1995 (1995 No 24).
11 Appointment of other officers
[Repealed]Section 11: repealed, on 10 April 1995, by section 5 of the Tax Administration Amendment Act 1995 (1995 No 24).
12 Official seal
(1)
There shall be an official seal of the Inland Revenue Department, which shall be in the custody of the Commissioner.
(2)
[Repealed]Section 12(2): repealed, on 10 April 1995, by section 6 of the Tax Administration Amendment Act 1995 (1995 No 24).
13 Proof of signature of Commissioner
(1)
The printed or electronic signature of the Commissioner or an officer of the department may be used on any certificate, notice, or other document in relation to the exercise of the Commissioner’s or officer’s powers, duties, and functions under this or any other Act.
(2)
Any certificate, notice, or other document purporting to bear the written, printed, or electronic signature of the Commissioner or an officer of the department shall, until the contrary is proved, be deemed to have been duly signed by the person whose signature it purports to bear.
(3)
Judicial notice shall be taken of every such signature and of the fact that the person whose signature it purports to be holds or has held office as Commissioner or other relevant officer of the department, as the case may require.
Section 13: replaced, on 10 April 1995, by section 7 of the Tax Administration Amendment Act 1995 (1995 No 24).
Section 13(1): amended, on 2 June 2016, by section 77(1) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section 13(2): amended, on 2 June 2016, by section 77(2) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
13B Use of electronic signatures for tax administration purposes
(1)
Subject to meeting the criteria and requirements set out in the guidelines referred to in subsection (2) and the provisions of Part 4 of the Contract and Commercial Law Act 2017, a person may give information to the Commissioner under an electronic signature.
(2)
The Commissioner must make guidelines that set out the criteria and technical requirements for—
(a)
the use of a valid electronic signature on documents provided to the Commissioner:
(b)
the nature of, and circumstances in which, the Commissioner accepts information under an electronic signature.
(3)
When the Commissioner receives a document bearing the electronic signature of a person, unless there are reasonable grounds to suppose otherwise,—
(a)
the document is treated as signed by the person; and
(b)
the person is treated as complying with both the guidelines referred to in subsection (2) and section 228 of the Contract and Commercial Law Act 2017.
(4)
Guidelines under subsection (2) are secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).
| Legislation Act 2019 requirements for secondary legislation made under this section | ||||
| Publication | The maker must publish it | LA19 ss 73, 74(1)(a), Sch 1 cl 14 | ||
| Presentation | It is not required to be presented to the House of Representatives because a transitional exemption applies under Schedule 1 of the Legislation Act 2019 | LA19 s 114, Sch 1 cl 32(1)(a) | ||
| Disallowance | It may be disallowed by the House of Representatives | LA19 ss 115, 116 | ||
| This note is not part of the Act. | ||||
Section 13B: inserted, on 2 June 2016, by section 78 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section 13B(1): amended, on 1 September 2017, by section 347 of the Contract and Commercial Law Act 2017 (2017 No 5).
Section 13B(2): amended, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
Section 13B(3)(b): amended, on 1 September 2017, by section 347 of the Contract and Commercial Law Act 2017 (2017 No 5).
Section 13B(4): inserted, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
13C Annual report
(1)
The Commissioner shall, as soon as practicable after the close of each financial year, furnish to the Minister a report on the administration of the Inland Revenue Acts during the financial year.
(2)
Every such report shall be laid before Parliament as soon as practicable after it has been received by the Minister.
Compare: 1974 No 133 s 22
Section 13C (former section 15): renumbered, on 18 March 2019, by section 7 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Subpart 2D—Modes of communication
Subpart 2D heading: inserted, on 26 June 2019, by section 87 of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).
14 Modes of communication: general provisions
(1)
Sections 14B to 14E apply for the purposes of this Act, the Income Tax Act 2007, and the Goods and Services Tax Act 1985, unless the context requires otherwise, to set out what is meant when a person (person A) gives information to, or communicates with, another person (person B) by—
(a)
asking or requesting:
(b)
informing:
(c)
applying:
(d)
notifying:
(e)
formally notifying.
(2)
Sections 14F and 14G set out the requirements for giving information or communicating by personal delivery, post, or electronic means.
(3)
Despite sections 6, 14B(2)(c), and 14C(2)(a), and sections 220 and 224 of the Contract and Commercial Law Act 2017, when there are reasonable grounds to suppose an electronic communication will be received by a person, the consent of the person is not required in order for the Commissioner to communicate in electronic form.
(4)
Despite subsection (1) and the references to this Act, the Income Tax Act 2007, and the Goods and Services Tax Act 1985, sections 14C to 14G apply when any other Act requires the Commissioner to give notice to a person, or a person to give notice to the Commissioner.
Section 14: replaced, on 2 June 2016, by section 79 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section 14(2): amended, on 30 March 2022, by section 183 of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section 14(3): amended, on 1 September 2017, by section 347 of the Contract and Commercial Law Act 2017 (2017 No 5).
Section 14(4): amended (with effect on 2 June 2016), on 30 March 2017, by section 300 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
14B Asking, requesting, or informing
(1)
This section applies when a provision in this Act, the Income Tax Act 2007, or the Goods and Services Tax Act 1985 refers to or describes person A—
(a)
asking person B for something:
(b)
requesting something from person B:
(c)
informing person B about something.
(2)
Person A may communicate—
(a)
by telephone; or
(b)
orally in person in a manner acceptable to the Commissioner; or
(c)
by electronic means, if person A complies with the provisions of Part 4 of the Contract and Commercial Law Act 2017, for an item of information delivered in a way referred to in section 14F; or
(d)
in print and delivered in a way referred to in section 14F, whether the document is handwritten, typewritten, or otherwise visibly represented, and whether copied or reproduced on paper; or
(e)
in another manner permitted by the Commissioner.
(3)
However, communication under this section does not include communication on the internet or by other electronic means, if person B is not directly alerted to the communication in some manner.
(4)
Section 14E may apply to override the application of this section.
Section 14B: replaced, on 2 June 2016, by section 79 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section 14B(2)(c): amended, on 1 September 2017, by section 347 of the Contract and Commercial Law Act 2017 (2017 No 5).
14C Applying or notifying
(1)
This section applies when a provision in this Act, the Income Tax Act 2007, or the Goods and Services Tax Act 1985 refers to or describes person A—
(a)
applying to person B for something:
(b)
notifying person B about something.
(2)
Person A may communicate—
(a)
by electronic means, if person A complies with the provisions of Part 4 of the Contract and Commercial Law Act 2017, for an item of information delivered in a way referred to in section 14F; or
(b)
in print and delivered in a way referred to in section 14F, whether the document is handwritten, typewritten, or otherwise visibly represented, and whether copied or reproduced on paper; or
(c)
in another manner permitted by the Commissioner.
(3)
However, communication under this section does not include communication on the internet or by other electronic means, if person B is not directly alerted to the communication in some manner.
(4)
Section 14E may apply to override the application of this section.
Section 14C: replaced, on 2 June 2016, by section 79 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section 14C(2)(a): amended, on 1 September 2017, by section 347 of the Contract and Commercial Law Act 2017 (2017 No 5).
14D Formally notifying
(1)
If a provision in this Act, the Income Tax Act 2007, or the Goods and Services Tax Act 1985 refers to or describes person A formally notifying person B, person A may communicate only in print, delivered personally or by registered post, whether the document is typewritten, or otherwise visibly represented, and whether copied or reproduced on paper.
(2)
However, communication under this section does not include communication by email, the internet, or other electronic means.
(3)
Section 14E may apply to override the application of this section.
Section 14D: inserted, on 2 June 2016, by section 79 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
14E Overriding provisions
(1)
A specific provision in this Act, the Income Tax Act 2007, or the Goods and Services Tax Act 1985 may apply to override the application of sections 14B to 14D by—
(a)
specifying the way in which a person gives information or communicates a matter:
(b)
prescribing the manner, form, or format for giving information or communicating a matter:
(c)
providing for the Commissioner to prescribe the manner, form, or format for giving information or communicating a matter.
(2)
Sections 14B to 14D apply to a provision in the Acts referred to in subsection (1) that relates to or implements a double tax agreement or other agreement described in section BH 1 of the Income Tax Act 2007 only to the extent to which they are not inconsistent with the application of the agreement.
Section 14E: inserted, on 2 June 2016, by section 79 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
14F Giving information by personal delivery, post, or electronic means
(1)
This section applies when a provision in this Act, the Income Tax Act 2007, or the Goods and Services Tax Act 1985 requires person A to communicate with person B by delivering the information in the way set out in subsections (2) to (5).
(2)
When the Commissioner is person A, the Commissioner may communicate with person B—
(a)
if person B is not a corporate body,—
(i)
by personal delivery to person B; or
(ii)
by personal delivery to person B’s usual or last known place of residence; or
(b)
if person B is a corporate body, by personal delivery to person B’s office during working hours; or
(c)
by delivery to person B’s contact address as described in section 14G.
(3)
When the Commissioner is person B, person A may communicate with the Commissioner—
(a)
by electronic means if, in delivering the communication, person A complies with Part 4 of the Contract and Commercial Law Act 2017; or
(b)
[Repealed](c)
by personal delivery during working hours to an office of the department that is available to accept communication of the information; or
(d)
by post—
(i)
to the street address of an office of the department; or
(ii)
to the post office box number of the department.
(4)
When the Commissioner is neither person A nor person B, person A may communicate with person B—
(a)
if person B is not a corporate body, by personal delivery to person B; or
(b)
if person B is a corporate body, by personal delivery to person B’s office during working hours; or
(c)
by delivery to person B’s contact address as described in section 14G.
(5)
For the purposes of subsection (2), the Commissioner may communicate with—
(a)
the person; or
(b)
a representative authorised to act on behalf of the person in relation to the relevant matter.
(6)
A communication by post is treated as having been given at the time the communication would have been delivered in the ordinary course of the post.
(7)
Section 214 of the Contract and Commercial Law Act 2017 applies to determine the time of receipt of an electronic communication.
(8)
[Repealed]Section 14F: inserted, on 2 June 2016, by section 79 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section 14F heading: amended, on 30 March 2022, by section 184(1) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section 14F(1): amended (with effect on 2 June 2016), on 30 March 2017, by section 301 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section 14F(3)(a): amended, on 1 September 2017, by section 347 of the Contract and Commercial Law Act 2017 (2017 No 5).
Section 14F(3)(b): repealed, on 30 March 2022, by section 184(2) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section 14F(7): amended, on 1 September 2017, by section 347 of the Contract and Commercial Law Act 2017 (2017 No 5).
Section 14F(8): repealed, on 30 March 2022, by section 184(3) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
14G Contact addresses
(1)
For the purposes of section 14F(2) and (4), a person’s contact address may be 1 of the following:
(a)
for delivery by electronic means to a person who is not a corporate body,—
(i)
an email or other electronic address that they have provided:
(ii)
their last known email or other electronic address:
(iii)
an email or other electronic address of the person that is otherwise available, if there are reasonable grounds to suppose that the person will receive the communication:
(b)
for delivery by electronic means to a person who is a corporate body,—
(i)
an email or other electronic address of the corporate body provided by a person acting for or on behalf of the corporate body in relation to the relevant matter:
(ii)
the last known email or other electronic address of a person acting for or on behalf of the corporate body in relation to the relevant matter:
(iii)
an email or other electronic address of the corporate body that is otherwise available, if there are reasonable grounds to suppose that a person acting for or on behalf of the corporate body in relation to the relevant matter will receive the communication:
(c)
for delivery by post,—
(i)
the street address of their usual or last known place of residence; or
(ii)
the street address of any of their usual or last known places of business; or
(iii)
any other address of the person, if they have notified the Commissioner that they accept delivery at the address.
(d)
[Repealed](2)
For the purposes of the delivery of income information, a person’s contact address is the address described in subsection (1)(a) to (c).
Section 14G: inserted, on 2 June 2016, by section 79 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section 14G(1)(d): repealed, on 30 March 2022, by section 185 of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section 14G(2): inserted, on 1 April 2019, by section 262 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Part 2A Taxpayer’s tax obligations
Part 2A: inserted, on 26 July 1996, by section 6 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
15A Purpose of this Part
The purpose of this Part is to outline the primary obligations of taxpayers under the tax laws.
Section 15A: inserted, on 26 July 1996, by section 6 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
15B Taxpayer’s tax obligations
A taxpayer must do the following:
(aa)
if required under a tax law, make an assessment:
(a)
unless the taxpayer is a non-filing taxpayer, correctly determine the amount of tax payable by the taxpayer under the tax laws:
(b)
deduct or withhold the correct amounts of tax from payments or receipts of the taxpayer when required to do so by the tax laws:
(c)
pay tax on time:
(d)
keep all necessary information (including books and records) and maintain all necessary accounts or balances required under the tax laws:
(e)
disclose to the Commissioner in a timely and useful way all information (including books and records) that the tax laws require the taxpayer to disclose:
(f)
to the extent required by the Inland Revenue Acts, co-operate with the Commissioner in a way that assists the exercise of the Commissioner’s powers under the tax laws:
(g)
comply with all the other obligations imposed on the taxpayer by the tax laws.
(h)
[Repealed](i)
[Repealed]Section 15B: inserted, on 26 July 1996, by section 6 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 15B(aa): inserted, on 24 October 2001 (applying to 2002–03 and subsequent income years), by section 190(1) of the Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 (2001 No 85).
Section 15B(a): amended, on 27 March 2001 (applying to 1999–2000 and subsequent income years), by section 45(1) of the Taxation (Beneficiary Income of Minors, Services-Related Payments and Remedial Matters) Act 2001 (2001 No 4).
Section 15B(h): repealed, on 1 April 2019, by section 8 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 15B(i): repealed, on 1 April 2019, by section 8 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Part 2B Intermediaries for PAYE, provisional tax, and resident passive income
[Repealed]Part 2B heading: repealed, on 18 March 2019, by section 9(1) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
15U Requirements for applications to establish tax pooling accounts
[Repealed]Section 15U: repealed (with effect on 1 April 2008), on 6 October 2009 (applying for tax on income derived in 2008–09 or later income years), by section 598(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
15V Winding up tax pooling accounts
[Repealed]Section 15V: repealed (with effect on 1 April 2008), on 6 October 2009 (applying for tax on income derived in 2008–09 or later income years), by section 598(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
RWT proxies[Repealed]
Heading: repealed (with effect on 1 April 2008), on 6 October 2009 (applying for tax on income derived in 2008–09 or later income years), by section 598(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
15W RWT proxies
[Repealed]Section 15W: repealed (with effect on 1 April 2008), on 6 October 2009 (applying for tax on income derived in 2008–09 or later income years), by section 598(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Part 3 Information, record-keeping, and returns
Subpart 3A—Commissioner’s powers to obtain information
Subpart 3A heading: replaced, on 1 April 2019, by section 269 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Commissioner’s powers to obtain information[Repealed]
Heading: repealed, on 18 March 2019, by section 10 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
16 Purposes of subpart
The purposes of this subpart are—
(a)
to provide the Commissioner with the necessary powers to enable—
(i)
the collection of all taxes or duties imposed by the Inland Revenue Acts:
(ii)
the carrying into effect of any of the Inland Revenue Acts:
(iii)
the carrying out of functions lawfully conferred on the Commissioner:
(b)
to enable the collection by the Commissioner of revenue information, including the power to—
(i)
gain access to property or documents; and
(ii)
remove documents to make copies; and
(iii)
remove and retain documents for review:
(c)
to require a person or entity to produce documents or to provide or allow access to information to the Commissioner:
(d)
to set out the Commissioner’s powers to copy, remove, or retain documents:
(e)
to provide a regulation-making power for the regular collection of bulk data:
(f)
to describe how revenue information may be used:
(g)
to protect the confidentiality of sensitive revenue information:
(h)
to facilitate efficient and effective government administration and law enforcement by allowing permitted disclosures of sensitive revenue information for certain specific or appropriate purposes.
Section 16: replaced, on 18 March 2019, by section 10 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
16B Principles on which subpart based
Purpose of collection of revenue information
(1)
The collection of revenue information may be made for 1 or more of the following purposes:
(a)
to protect the integrity of the tax system:
(b)
to carry into effect the revenue laws:
(c)
to carry out or support a function lawfully conferred on the Commissioner:
(d)
to encourage compliance with the revenue laws:
(e)
for any other function lawfully conferred on the Commissioner.
Necessary or relevant for stated purposes
(2)
In collecting revenue information, the Commissioner may access property or documents only if taking that action is—
(a)
necessary or relevant for a purpose set out in subsection (1); and
(b)
considered likely to provide the information required.
Protection of information
(3)
Revenue information that is held by the Commissioner must be protected by such security safeguards as it is reasonable in the circumstances to take, against—
(a)
loss:
(b)
unauthorised instances of access, use, modification, or disclosure:
(c)
misuse.
Non-disclosure of sensitive revenue information
(4)
A revenue officer may not disclose sensitive revenue information unless the disclosure is a permitted disclosure made—
(a)
for the purposes of carrying into effect a revenue law or carrying out a function lawfully conferred on the Commissioner:
(b)
under certain agreements or regulations:
(c)
to a person in relation to their own revenue information:
(d)
for the following and certain other specified purposes:
(i)
public services purposes:
(ii)
international purposes:
(iii)
risk of harm purposes.
Collection of information
(5)
For the purposes of subsection (2), the collection of information includes the compilation, collation, synthesis, or generation of information by the Commissioner.
Commissioner, authorised officers, accompanying persons, and particular offices
(6)
For the purposes of this subpart, and section 227F,—
(a)
a reference to the Commissioner includes a reference to an officer of the department authorised by the Commissioner:
(b)
a reference to the Commissioner in sections 17(1) and (2) and 17C(1)(d) includes a reference to an accompanying person:
(c)
when a provision requires information to be produced, filed, or delivered to the Commissioner, the Commissioner may require that the information is produced, filed, or delivered to a particular office of the department.
Section 16B: replaced, on 18 March 2019, by section 10 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
16C Key terms
Meaning of revenue law
(1)
For the purposes of this subpart and schedule 7, revenue law means—
(a)
the Inland Revenue Acts:
(b)
the Accident Compensation Act 2001, the Accident Insurance Act 1998, the Accident Rehabilitation and Compensation Insurance Act 1992, or the Accident Compensation Act 1982:
(c)
the New Zealand Superannuation Act 1974:
(d)
any Act that imposes taxes or duties payable to the Crown.
Meaning of revenue information
(2)
For the purposes of this subpart and schedule 7, revenue information means information that is acquired, obtained, accessed, received by, disclosed to, or held by the Commissioner—
(a)
in connection with a revenue law and for a purpose set out in section 16B(1):
(b)
under an information-sharing agreement.
Meaning of sensitive revenue information
(3)
For the purposes of this subpart and schedule 7, sensitive revenue information—
(a)
means revenue information—
(i)
that identifies, or is reasonably capable of being used to identify, a person or entity, whether directly or indirectly; or
(ii)
that might reasonably be regarded as private, commercially sensitive, or otherwise confidential; or
(iii)
the release of which could result in loss, harm, or prejudice to a person to whom, or an entity to which, it relates:
(b)
does not include aggregate or statistical data that may contain information about the person or entity to the extent to which the information does not meet the requirements of paragraph (a):
(c)
does not include information if the only person or entity that it identifies is the Commissioner or chief executive of the Inland Revenue Department, unless it relates to the application of the Inland Revenue Acts to the Inland Revenue Department as a taxpayer.
Meaning of revenue officer
(4)
For the purposes of this subpart and schedule 7, a revenue officer—
(a)
means a person who is employed in or seconded to Inland Revenue; and
(b)
includes—
(i)
a person employed in the service of the Government of an overseas country or territory who is for the time being seconded to Inland Revenue:
(ii)
a person formerly employed in or seconded to Inland Revenue.
Meaning of permitted disclosure
(5)
For the purposes of this subpart and schedule 7, permitted disclosure means the disclosure of an item of sensitive revenue information to another person as an exception to the rule of confidentiality set out in section 18. The purposes for which a revenue officer may disclose sensitive revenue information are set out in sections 18D to 18J and schedule 7.
New Zealand superannuation
(6)
For the purposes of subsection (1)(c), the New Zealand Superannuation Act 1974 includes Part 1 of the Superannuation Schemes Act 1976, and the New Zealand Superannuation Corporation includes the National Provident Fund Board in relation to its functions under that Part.
Section 16C: replaced, on 18 March 2019, by section 10 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 16C(2)(a): replaced (with effect on 18 March 2019), on 30 March 2022, by section 186(1) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section 16C(3)(a): amended (with effect on 18 March 2019), on 30 March 2022, by section 186(2)(a) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section 16C(3)(a)(i): amended (with effect on 18 March 2019), on 30 March 2022, by section 186(2)(b) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section 16C(3)(a)(iii): amended (with effect on 18 March 2019), on 26 June 2019, by section 88 of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).
Section 16C(3)(c): inserted (with effect on 18 March 2019), on 30 March 2022, by section 186(3) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Collection of information
Heading: inserted, on 18 March 2019, by section 10 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
17 Commissioner may obtain information by accessing property or documents
Access to property or documents
(1)
Despite anything in any other Act but subject to subsection (2), the Commissioner may access any property or documents for the purpose of inspecting a document, property, process, or matter that the Commissioner considers—
(a)
is necessary or relevant for the purposes and principles set out in sections 16 and 16B:
(b)
is likely to provide information that would otherwise be required for the purposes of the Inland Revenue Acts and any function lawfully conferred on the Commissioner.
Consents or warrants required for private dwellings
(2)
The Commissioner must not enter a private dwelling to access any property or documents except with the consent of an occupier or under a warrant issued under section 17D.
Providing assistance and answering questions
(3)
Despite section 103(3)(b)(ii) and (7) of the Search and Surveillance Act 2012, the occupier of land, or a building, or a place that the Commissioner enters, or proposes to enter, must—
(a)
provide the Commissioner with all reasonable facilities and assistance for the effective exercise of the powers under this section and section 17C; and
(b)
answer all proper questions relating to the effective exercise of the powers under this section as, and in the manner, required by the Commissioner.
Accompanying persons
(4)
A person whose presence at a place is considered by the Commissioner to be necessary for the effective exercise of the powers under this section may accompany the Commissioner to a place.
Definitions for this section
(5)
In this section, and sections 16, 16B, and 17D,—
property or documents includes—
(a)
all lands, buildings, places, or other premises:
(b)
a document, whether in the custody or under the control of a public officer, or a body corporate, or any other person
private dwelling means a building or part of a building occupied as residential accommodation, and includes—
(a)
a garage, shed, and other building used in connection with the private dwelling; and
(b)
any business premises that are, or are within, a private dwelling.
Section 17: replaced, on 18 March 2019, by section 10 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
17A Court orders for production of information or return
[Repealed]Section 17A: repealed, on 18 March 2019, by section 10 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
17B Commissioner may require information or production of documents
Requiring information or production of documents
(1)
A person must, when notified by the Commissioner in an information demand, provide any information that the Commissioner considers necessary or relevant for any purpose relating to—
(a)
the administration or enforcement of an Inland Revenue Act:
(b)
the administration or enforcement of any matter arising from, or connected with, a function lawfully conferred on the Commissioner.
Documents included
(2)
In this section and in sections 17 and 17G to 17H, a requirement to provide information includes a requirement to produce a document.
Requirements
(3)
The Commissioner may require that information provided under this section be—
(a)
verified by statutory declaration or otherwise:
(b)
provided to a particular office of the Commissioner:
(c)
provided in a manner acceptable to the Commissioner.
Persons included
(4)
For the purposes of this section and section 17L, a person includes—
(a)
an officer employed in, or in connection with, a department of the government or a public authority:
(b)
any other public officer.
Particular requirements for information demands and inquiries
(5)
Sections 17F, 17G, and 17H to 17K set out some particular requirements for information demands and inquiries.
Section 17B: inserted, on 18 March 2019, by section 10 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 17B(2): amended (with effect on 7 December 2020), on 30 March 2021, by section 146(1) of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
Section 17B(4): amended, on 30 March 2022, by section 187 of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section 17B(5): amended (with effect on 7 December 2020), on 30 March 2021, by section 146(2) of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
17C Commissioner’s powers in relation to documents
Taking extracts, making copies, removing for inspection
(1)
In relation to a document accessed under section 17, or produced under 1 or more of sections 17B, 17GB, 17H(6), and 17I, the Commissioner may—
(a)
take an extract from the document:
(b)
make a copy of the document:
(c)
remove the document from a place to make a copy:
(d)
remove the document from a place and retain it for a full and complete inspection.
Copying and returning documents
(2)
When a document is removed and a copy made under subsection (1)(c), the copy must be made and the document then returned as soon as practicable.
Removing documents with consent or under warrant
(3)
The Commissioner may remove and retain a document under subsection (1)(d) for a full and complete inspection for as long as is necessary to undertake the inspection if the Commissioner has—
(a)
the consent of an occupier:
(b)
a warrant issued under section 17D.
No charge for copies
(4)
For the purposes of subsection (1)(a) to (c), the Commissioner may take an extract from or make a copy of a document without charge.
Owner’s inspection
(5)
The owner of a document that is removed under subsection (1) may inspect and obtain a copy of the document at the premises to which it is removed—
(a)
at the time the document is removed to the premises:
(b)
at all reasonable times subsequently.
Evidence
(6)
A copy of a document certified by or on behalf of the Commissioner is admissible in evidence in court as if it were the original.
Section 17C: inserted, on 18 March 2019, by section 10 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 17C(1): amended, on 30 March 2021, by section 147(2) of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
Section 17C(1): amended (with effect on 7 December 2020), on 30 March 2021, by section 147(1) of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
Section 17C(5): amended, on 30 March 2021, by section 147(3) of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
17D Warrants
When this section applies
(1)
This section applies for the purposes of sections 17 and 17C when—
(a)
an application is made for a search warrant under Part 4, subpart 3 of the Search and Surveillance Act 2012 for a warrant to enter a private dwelling or to remove and retain a document from a place; and
(b)
an issuing officer is satisfied that the issue of the warrant is required for the exercise of a function lawfully conferred on the Commissioner.
Warrants for entry
(2)
The issuing officer may issue a warrant to the Commissioner to enter a private dwelling when physical access to the dwelling is required.
Warrants for removal of documents
(3)
The issuing officer may issue a warrant to the Commissioner to remove a document from a place and retain it when a full and complete inspection of the document is required.
Exercising warrants
(4)
A person exercising the power of entry conferred by a warrant issued under subsection (2) or a warrant for removal of a document under subsection (3) must produce the warrant and evidence of their identity on first entering the private dwelling or the place and whenever subsequently reasonably required to do so.
Relationship with Search and Surveillance Act 2012
(5)
For the purposes of this section, and of sections 17 and 17C(1)(d), (3), (5), and (6), the provisions of subparts 1, 3, 4, 7, 9, and 10 of Part 4 of that Act, other than sections 102, 103(3)(b)(ii), 103(4)(g), 103(7), 115(1)(b), 118, 119, and 130(4) apply.
Definition for this section
(6)
In this section, issuing officer has the meaning given in section 3 of that Act.
Section 17D: inserted, on 18 March 2019, by section 10 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 17D(5): amended (with effect on 18 March 2019), on 26 June 2019, by section 90 of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).
17E Information or documents treated as in persons’ knowledge, possession, or control
Non-residents
(1)
For the purposes of sections 17B(1), 17GB(1), 143(2), and 143A(2), information or a document that is in the knowledge, possession, or control of a non-resident is treated as being in the knowledge, possession, or control of a New Zealand resident if the New Zealand resident controls, directly or indirectly, the non-resident. For this purpose,—
(a)
a New Zealand resident is treated as holding anything held by a person who—
(i)
is resident in New Zealand and is associated with the New Zealand resident:
(ii)
is a controlled foreign company and is associated with the New Zealand resident:
(b)
a law of a foreign country that relates to the secrecy of information is ignored.
Large multinational groups
(2)
For the purposes of sections 17B(1), 17GB(1), and 139AB, information or a document is treated as being in the knowledge, possession, or control of a member of a large multinational group in an income year, disregarding any law of a foreign country relating to the secrecy of information, if the information or document is relevant to the taxation of the large multinational group and is in the knowledge, possession, or control of the member or another member of the large multinational group.
Section 17E: inserted, on 18 March 2019, by section 10 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 17E(1): amended (with effect on 7 December 2020), on 30 March 2021, by section 148(1) of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
Section 17E(2): amended (with effect on 7 December 2020), on 30 March 2021, by section 148(2) of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
Section 17E(2): amended (with effect on 18 March 2019), on 26 June 2019, by section 91 of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).
Particular information demands and inquiries
Heading: inserted, on 18 March 2019, by section 10 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
17F Commissioner may require information about offshore payments
When this section applies
(1)
This section applies when—
(a)
the Commissioner notifies a person in an information demand that they are required under section 17B to provide information relating to an offshore payment for which a deduction may be allowed; and
(b)
the person fails to provide a response, or a sufficient response, to the information demand by the date that is 3 months after the information demand (the demand date).
Deduction disallowed
(2)
The Commissioner may disallow the deduction, in whole or in part, in the course of making an assessment, and the person who has the deduction (person A) may not dispute the assessment in proceedings under Part 8 or Part 8A unless they establish in the proceedings that a sufficient response to the information demand was provided within 3 months of the demand date, whether the response was provided by them or another person to whom an information demand was given.
Information not admissible in evidence
(3)
In relation to an assessment referred to in subsection (2), when the information demand was given to person A, or to another person (person B) with a copy provided to person A, the information is not admissible in proceedings under Part 8 or Part 8A in which a deduction for an offshore payment is at issue, except to the extent to which the evidence—
(a)
is provided or identified in either person A or person B’s response to the information demand:
(b)
is provided or identified in person A’s response to the copy of the information demand as described in subsection (6):
(c)
is contained in other material in the possession of the Commissioner at the time the Commissioner issued the information demand and can reasonably be verified by the Commissioner.
Notice of insufficient response
(4)
The rule against admissibility in subsection (3) applies only if the Commissioner gives person A a separate notice, before or at the time of making the assessment, stating that the Commissioner does not consider that either person A or person B has provided a sufficient response to the information demand.
Commissioner’s evidence
(5)
Subsection (3) does not apply to prevent the Commissioner from producing any evidence in any proceedings.
Notices
(6)
When a notice under subsection (1), (3), or (4) is given to person B, a copy must be provided to person A. A notice or copy of a notice given by the Commissioner to a person in their capacity as an agent for a partnership or as a partner in a partnership is treated as a notice given to every partner in the partnership.
Meaning of offshore payment
(7)
For the purposes of this section, an offshore payment, for a person, means an amount of expenditure or loss incurred or purportedly incurred by them to—
(a)
a person outside New Zealand; or
(b)
a person, whether in or outside New Zealand, associated with, acting for or on behalf of, or in a fiduciary capacity in relation to, a person outside New Zealand; or
(c)
a person in New Zealand who, in the opinion of the Commissioner, may in consequence of the expenditure or loss incurred by the taxpayer, whether or not in consequence of any other thing and whether or not as an immediate or eventual consequence, make a payment to—
(i)
a person outside New Zealand; or
(ii)
a person in New Zealand making a payment as described in this paragraph.
Section 17F: inserted, on 18 March 2019, by section 10 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
17G Commissioner may require information from large multinational groups
When this section applies
(1)
This section applies when the Commissioner notifies a member of a large multinational group in an information demand that the member is required under section 17B to provide information relating to the large multinational group or to a member of the large multinational group, and the member—
(a)
fails to provide by the date that is 3 months after the information demand (the demand date) a response to the information demand:
(b)
provides, by the demand date, a response that the Commissioner considers to be misleading because it contains misleading information or omits relevant information:
(c)
provides, by the demand date, a response that the Commissioner considers omits information, whether or not in the knowledge, possession, or control of the member, required by the information demand for the calculation of—
(i)
an arm’s length amount for a cross-border transaction:
(ii)
an amount of profit attributable to a permanent establishment in New Zealand of the member or another member of the large multinational group:
(d)
provides, by the demand date, a response that the Commissioner considers does not fulfil the requirements of the information demand.
Consequences of failing to provide satisfactory responses
(2)
The Commissioner must notify the member by a further notice that if the member does not provide a satisfactory response to the information demand before the date (the information deadline) that is 1 month after the date of the further notice,—
(a)
the Commissioner may rely on the information held by the Commissioner in exercising the Commissioner’s power to prosecute, penalise, assess, or reassess the member or other members of the large multinational group for a tax year to which the information required by the information demand relates; and
(b)
information required by the information demand and not provided to the Commissioner by the information deadline will not be allowed as evidence for use by the member or other members of the large multinational group in a dispute concerning an action of the Commissioner referred to in paragraph (a).
Treatment of information in disputes
(3)
If a member of a large multinational group disputes a prosecution, imposition of a penalty, assessment, or reassessment, relating to a tax year, and information that is required by an information demand and relates to the tax year is not provided to the Commissioner before the information deadline, the information that is not the subject of a court order under subsection (4) is not—
(a)
allowed as evidence for use by the member in a disputes procedure under Part 4A:
When court overrules treatment of information
(4)
A member of a large multinational group is allowed to use information in a way that would otherwise be prevented by subsection (3) if a court or Authority—
(a)
determines that obtaining the information in response to the information demand would have required an investment by the member of time and resources that would have been unreasonable in relation to the relevance of the information to the tax issues involved; and
(b)
determines that admission of the evidence is necessary to avoid manifest injustice to the member; and
(c)
orders that the information be allowed or admissible as evidence in the proceedings.
Section 17G: inserted, on 18 March 2019, by section 10 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
17GB Commissioner may require information or production of documents for tax policy development
(1)
A person must, when notified by the Commissioner that the person is required to provide information under this section, provide any information that the Commissioner considers relevant for a purpose relating to the development of policy for the improvement or reform of the tax system.
(2)
The Commissioner must not use, as evidence in proceedings against a person, information provided by the person in response to a notice under subsection (1).
(3)
Subsection (2) does not apply to any information subsequently obtained by the Commissioner under another section of this Act.
Section 17GB: inserted, on 7 December 2020, by section 33 of the Taxation (Income Tax Rate and Other Amendments) Act 2020 (2020 No 65).
17H Court may make order for provision of information
Applying to Court for orders
(1)
When a person does not fully comply with a notice under section 17B or 17GB, or does not provide a tax return required under the Inland Revenue Acts, the Commissioner may apply to the District Court for an order requiring the person to provide the information or the tax return, as applicable.
Application as alternative remedy
(2)
The Commissioner may make an application under subsection (1) as well as, or instead of, prosecuting the person.
Notifying persons affected
(3)
The Commissioner must notify the person in relation to whom the order is sought of the application, and must notify any other person, as the Court directs.
Hearing
(4)
The Commissioner and every person notified of the application is entitled to appear and be heard on the hearing of the application.
Court review
(5)
The Court may—
(a)
order the information to be provided to the Court; and
(b)
review the information to determine—
(i)
whether to make an order requiring the person to provide the information to the Commissioner; and
(ii)
whether the information is the subject of legal professional privilege, whether within the meaning of section 20 or otherwise at law; and
(iii)
whether the information is contained in a tax advice document, and if so, whether it is required to be disclosed under section 20E, 20F, or 20G.
Court orders
(6)
The Court may order the person named in the application to provide the information, or a part of the information, to the Commissioner if and to the extent to which the Court is satisfied that the information—
(a)
is likely to be relevant for a purpose relating to the administration or enforcement of a revenue law or a matter arising from, or connected with, a function lawfully conferred on the Commissioner; and
(b)
is not the subject of legal professional privilege, whether within the meaning of section 20 or otherwise at law.
Returns
(7)
The Court may order the person named in the application to provide a tax return.
Undocumented information
(8)
A person who is required to provide information under this section must, if the information is not kept in a document, make the necessary arrangements to ensure that the information can be viewed and copied.
Overriding provision
(9)
This section applies despite any enactment or rule of law that may oblige a person to keep information secret, or not to disclose information, or not to perform an obligation. Compliance with a court order under this section is not a breach of the enactment, rule, or obligation.
No excuse
(10)
A person is not excused from having to comply with this section on the ground that—
(a)
providing the information could or might prove a breach of a tax obligation or subject the person to a fine, penalty, or conviction; or
(b)
the person could claim another privilege in relation to the provision of the information in proceedings in a court.
Offences
(11)
For offences under this section, see section 143G.
Section 17H: inserted, on 18 March 2019, by section 10 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 17H(1): amended (with effect on 7 December 2020), on 30 March 2021, by section 149 of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
17I Commissioner may conduct inquiries
When this section applies
(1)
This section applies for the purposes of obtaining information—
(a)
in relation to a person’s tax liability under an Inland Revenue Act:
(b)
that is required—
(i)
for the purposes of the administration or enforcement of an Inland Revenue Act:
(ii)
in carrying out a function lawfully conferred on the Commissioner.
Inquiry by Commissioner
(2)
The Commissioner may notify a person that they are required to attend and provide information to the Commissioner or to produce documents in their possession or control that contain the information or that the Commissioner considers are likely to contain the information.
Evidence
(3)
The Commissioner may require a person to give evidence on oath, and orally or otherwise, and for that purpose, the Commissioner or an authorised officer may administer an oath.
Offences
(4)
For offences under this section, see section 143F.
Section 17I: inserted, on 18 March 2019, by section 10 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
17J Commissioner may apply for District Court Judge to conduct inquiries
When this section applies
(1)
This section applies when the Commissioner considers that an inquiry is necessary for the purposes of obtaining information—
(a)
in relation to a person’s tax liability under an Inland Revenue Act:
(b)
that is required—
(i)
for the purposes of the administration or enforcement of an Inland Revenue Act:
(ii)
in carrying out a function lawfully conferred on the Commissioner.
Inquiries before District Court Judge
(2)
The Commissioner may apply to a District Court Judge to hold an inquiry for the purposes of obtaining the information.
Summoning and examination of persons
(3)
The Judge may—
(a)
summon a person that the Commissioner or another interested person requires to be examined; and
(b)
examine the person on oath in chambers regarding any matter relevant to the subject matter of the inquiry.
Judge’s jurisdiction and person’s rights
(4)
The Judge has all jurisdiction and authority in relation to the summons and examination of the person that they would have in relation to a witness in a civil action within the Judge’s ordinary jurisdiction. Subject to the Inland Revenue Acts, the person has all the rights that the person would have and is subject to the liabilities that the person would be if the person were the witness.
Commissioner’s powers
(5)
The Commissioner—
(a)
may cross-examine a person summoned:
(b)
may be represented by a barrister or solicitor who may examine, cross-examine, and re-examine a person summoned according to ordinary practice.
Persons interested
(6)
A person interested in the subject matter of the inquiry may be represented and may examine, cross-examine, and re-examine a person summoned according to ordinary practice.
Statements
(7)
The statement of a person examined under this section must be recorded in a document, signed by the person in the presence of the Judge, and delivered to the Commissioner. The statement does not form part of court records.
Offences
(8)
For offences under this section, see section 143F.
Section 17J: inserted, on 18 March 2019, by section 10 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
17K Questions and statements made in inquiries
When this section applies
(1)
This section applies when a person is summoned and examined by either the Commissioner under section 17I or a District Court Judge under section 17J.
No excuse
(2)
No person summoned or examined is excused from answering a question on the ground that the answer may incriminate them or render them liable to a penalty or forfeiture.
Statements not admissible in evidence
(3)
A statement made by a person in answer to a question put to them is not admissible in criminal proceedings against the person, except on a charge of perjury. The provisions of the Crimes Act 1961 which relate to perjury are applicable to an inquiry by the Commissioner under section 17I.
Travelling expenses
(4)
A person who has been summoned is entitled to receive an amount on account of travelling expenses and loss of time. The amount is a reasonable amount determined by the Commissioner or the Judge, as applicable.
Offences
(5)
For offences under this section, see section 143F.
Section 17K: inserted, on 18 March 2019, by section 10 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Regulations
Heading: inserted, on 18 March 2019, by section 10 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
17L Regulations providing for regular collection of bulk data
What this section does
(1)
This section provides a regulation-making power in relation to the administration of this Act and the other Inland Revenue Acts to authorise the Commissioner to collect bulk information in the form of datasets from a person who is the holder of the information if the collection of the information is considered necessary or relevant for a purpose relating to the administration or enforcement of a matter arising from or connected with a function lawfully conferred on the Commissioner.
Orders in Council
(2)
The Governor-General may, by Order in Council on the recommendation of the Minister of Revenue, make regulations—
(a)
authorising the Commissioner to collect on a continuing and regular basis, information in the form of datasets from a person, or a class of persons:
(b)
prescribing—
(i)
the type of information that may be collected:
(ii)
the person or the class of persons to whom the regulations apply:
(iii)
the frequency of reporting by the person or class of persons:
(iv)
the form of the information:
(v)
the specifications for the reporting method that must be used:
(c)
setting out the way in which the information is necessary for the purposes set out in subsection (1):
(d)
specifying a person or class of persons who may be given an exemption from some or all of a requirement under paragraph (a), (b), or (c):
(e)
prescribing how provisions of this Act or another Inland Revenue Act must be applied or modified for the purpose set out in section 17B.
Secondary legislation
(2B)
An order under this section is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).
Requirements
(3)
The Minister may recommend the making of regulations under this section only if satisfied that—
(a)
the regulations are necessary for a purpose relating to—
(i)
the administration or enforcement of any of the Inland Revenue Acts:
(ii)
the administration or enforcement of any matter arising from or connected with a function lawfully conferred on the Commissioner; and
(b)
the proposed use of the information is consistent with the purposes of the Inland Revenue Acts; and
(c)
the type and quantity of information collected is no more than is necessary for a purpose relating to—
(i)
the administration or enforcement of any of the Inland Revenue Acts:
(ii)
the administration or enforcement of any matter arising from or connected with a function lawfully conferred on the Commissioner; and
(d)
the regulations do not unreasonably impinge on the privacy of individuals, and contain safeguards that adequately protect the privacy of individuals; and
(e)
a consultative process has been undertaken that—
(i)
includes the distribution of draft regulations and an explanation of the way in which the regulations would meet the requirements of paragraphs (a), (b), (c), and (d) to the Privacy Commissioner, information holders, and other persons or organisations with whom the Commissioner considers it is reasonable to consult for the purposes of this section; and
(ii)
provides a period of consultation of at least 6 weeks.
Review
(4)
Within the period of time set out in subsection (5), the Commissioner must—
(a)
review the operation of this section; and
(b)
assess the impact of this section, in consultation with the Privacy Commissioner; and
(c)
consider whether amendments to the law are necessary or desirable, and in particular, whether this section is needed; and
(d)
report the findings to the Minister of Revenue.
Timing of review
(5)
The review must occur after the expiry of 5 years from the commencement of this section but before the expiry of 6 years from the commencement of this section.
| Legislation Act 2019 requirements for secondary legislation made under this section | ||||
| Publication | PCO must publish it on the legislation website and notify it in the Gazette | LA19 s 69(1)(c) | ||
| Presentation | The Minister must present it to the House of Representatives | LA19 s 114, Sch 1 cl 32(1)(a) | ||
| Disallowance | It may be disallowed by the House of Representatives | LA19 ss 115, 116 | ||
| This note is not part of the Act. | ||||
Section 17L: inserted, on 18 March 2019, by section 10 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 17L(2B) heading: inserted, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
Section 17L(2B): inserted, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
Use of information
Heading: inserted, on 18 March 2019, by section 10 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
17M Use of information
Purposes
(1)
Despite anything in any other Act, nothing prevents the Commissioner from—
(a)
using information obtained under this Act for the purposes of—
(i)
carrying into effect any of the Inland Revenue Acts:
(ii)
carrying out or supporting a function lawfully conferred on the Commissioner; or
(b)
using information obtained under any of the Inland Revenue Acts for the purposes of—
(i)
carrying into effect the provisions of this Act:
(ii)
carrying out or supporting a function lawfully conferred on the Commissioner.
Permitted disclosures
(2)
For the purposes of subsection (1), the use of information by the Commissioner includes its use in a permitted disclosure.
Re-use of information
(3)
In this section, the use of information includes the re-use of the information.
Section 17M: inserted, on 18 March 2019, by section 10 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Confidentiality of information
Heading: inserted, on 18 March 2019, by section 10 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
18 Confidentiality of sensitive revenue information
Confidentiality requirements for revenue officers
(1)
A revenue officer must keep confidential all sensitive revenue information and must not disclose the information unless the disclosure is a permitted disclosure that meets the requirements of sections 18D to 18J.
Confidentiality requirements for other persons
(2)
A person, other than a revenue officer, who has access to, or obtains sensitive revenue information must keep it confidential and must not disclose the information unless the disclosure is—
(a)
authorised by the Commissioner as a permitted disclosure that meets the requirements of sections 18D to 18J:
(b)
authorised by the Commissioner for a purpose, and only to the extent authorised:
(c)
permitted under the agreement under which the information is accessed or obtained.
Other revenue information
(3)
Despite sections 18D to 18J and schedule 7, the Commissioner is not required to disclose any item of revenue information if the release of the information would adversely affect the integrity of the tax system or would prejudice the maintenance of the law.
Offences and penalties
(4)
For the offences and related penalties,—
(a)
by revenue officers, see section 143C:
(b)
by persons other than revenue officers, see sections 143D to 143EB.
Section 18: replaced, on 18 March 2019, by section 10 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
18B Requirements for revenue officers and other persons
Declarations by revenue officers
(1)
For the purposes of section 18(1), before a revenue officer performs their first official duty as an officer, they must complete a declaration of confidentiality as prescribed by the Commissioner.
Certificates by other officers
(2)
For the purposes of section 18(2), a person, other than a revenue officer, who acquires, obtains, or has access to sensitive revenue information must complete a certificate of confidentiality as prescribed by the Commissioner. The certificate must be kept in a form acceptable to the Commissioner by the person, entity, or agency that employs, appoints, or contracts services from the person.
Making declarations
(3)
The declaration under subsection (1) may be made before—
(a)
the Commissioner; or
(b)
a revenue officer; or
(c)
a person authorised by or under the Oaths and Declarations Act 1957 to take statutory declarations.
Revenue officers treated as making declaration
(4)
A revenue officer who has made a declaration described in subsection (1) under an earlier taxation secrecy or fidelity provision corresponding to this provision, or who was treated as making that declaration under an earlier provision, is treated as having made a declaration under this section.
Other persons treated as making declaration
(5)
A person other than a revenue officer who has completed a certificate as described in subsection (2) under an earlier taxation secrecy or fidelity provision corresponding to this provision, or who was treated as completing that certificate under an earlier provision, is treated as having completed a certificate under this section.
Section 18B: inserted, on 18 March 2019, by section 10 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 18B(2): amended (with effect on 18 March 2019), on 31 March 2023, by section 164 of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Permitted disclosures
Heading: inserted, on 18 March 2019, by section 10 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
18C Permitted disclosures
Sections 18D to 18J provide exceptions to the rule of confidentiality set out in section 18. These exceptions are permitted disclosures.
Section 18C: inserted, on 18 March 2019, by section 10 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
18D Disclosures made in carrying into effect revenue laws
Carrying into effect revenue law
(1)
Section 18 does not apply to a disclosure of sensitive revenue information that is made for the purpose of carrying into effect a revenue law as set out in schedule 7, part A.
Carrying out function conferred on Commissioner
(2)
Section 18 does not apply if—
(a)
a disclosure of sensitive revenue information is made in carrying out or supporting a function lawfully conferred on the Commissioner to—
(i)
administer the tax system:
(ii)
implement the tax system:
(iii)
improve, research, or reform the tax system; and
(b)
the Commissioner considers the disclosure is reasonable for the purposes described in paragraph (a), having regard to—
(i)
the Commissioner’s obligation at all times to use best endeavours to protect the integrity of the tax system; and
(ii)
the importance of promoting compliance with the law, especially voluntary compliance; and
(iii)
the impact of the disclosure, personally or commercially or in some other way; and
(iv)
the resources available to the Commissioner; and
(v)
the public availability of the information.
Disclosures in co-located environments
(3)
Section 18 does not apply to a disclosure of sensitive revenue information that a revenue officer—
(a)
makes—
(i)
to a person who is a revenue officer or a person to whom section 18B(2) applies; and
(ii)
at a place, and in conditions relating to the confidentiality of information, in which the Commissioner expects revenue officers to perform their duties; and
(b)
does not intend, and takes the care that is reasonable in the place and conditions to prevent, the receipt of the information by the person receiving it.
Disclosures for court proceedings
(4)
Section 18 does not apply to—
(a)
prevent the disclosure of sensitive revenue information to a court or tribunal if the disclosure is necessary for the purpose of carrying into effect a revenue law:
(b)
require a revenue officer to produce a document in a court or tribunal, or to disclose to a court or tribunal a matter or thing that comes to their notice in the performance of their duties.
Section 18D: inserted, on 18 March 2019, by section 10 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
18E Disclosures made under information-sharing arrangements
Disclosure under agreements and regulations
(1)
Section 18 does not apply to a disclosure of sensitive revenue information and other information, as applicable, that is made for the purpose of a disclosure under—
(a)
an approved agreement under subsection (2):
(b)
an agreement made under subsection (3):
(c)
regulations made under section 18F.
Approved information-sharing agreements
(2)
The Commissioner may provide information under an information-sharing agreement approved by an Order in Council made under section 145 of the Privacy Act 2020. The information-sharing agreement—
(a)
may relate to information that is sensitive revenue information, being personal information and other non-personal information:
(b)
may extend a restricted information-sharing provision in an Inland Revenue Act, as contemplated by the Privacy Act 2020, without further authority than this section:
(c)
includes an existing approved information-sharing agreement made under the authority of this Act that continues to be in force.
Disclosure by agreement when consent obtained
(3)
The Commissioner may enter into an agreement to share certain information if—
(a)
the agreement—
(i)
is made for public services purposes; and
(ii)
relates to the disclosure of sensitive revenue information held about a person or entity; and
(iii)
specifies appropriate conditions for the security and use of the information; and
(iv)
stipulates a process to ensure the consent is properly obtained and recorded; and
(b)
the Commissioner has consulted the Privacy Commissioner on the terms of the agreement, and the Privacy Commissioner agrees that the disclosure is appropriate; and
(c)
the person or entity consents to the disclosure of the information.
Inquiry into provenance of types of data
(4)
Before proposing a new information-sharing agreement under subsection (2), a new consent agreement under subsection (3), or new regulations under section 18F, the Commissioner must—
(a)
inquire into, and make an assessment of, the likely provenance of the types of data proposed to be shared; and
(b)
consider whether particular conditions are required to be specified for the security and use of the information.
Meaning of public service
(5)
In this section and sections 16B and 18F, public service means a public function or duty that is conferred or imposed on an agency described in subsection (6)—
(a)
by or under law; or
(b)
by a policy of the government.
Meaning of agency
(6)
For the purposes of this section and section 18F, agency has the meaning given in section 138 of the Privacy Act 2020.
Section 18E: inserted, on 18 March 2019, by section 10 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 18E(2): amended, on 1 December 2020, by section 217 of the Privacy Act 2020 (2020 No 31).
Section 18E(2)(b): amended, on 1 December 2020, by section 217 of the Privacy Act 2020 (2020 No 31).
Section 18E(6): replaced, on 1 December 2020, by section 217 of the Privacy Act 2020 (2020 No 31).
18F Regulations for information-sharing for public services purposes
Regulations relating to provision of public services
(1)
This section provides a regulation-making power for matters relating to the provision of public services in the sharing of revenue information or other information, as applicable, when—
(a)
the sharing of the information is intended to improve the ability of the government to deliver efficient and effective services or enforce the law; and
(b)
the information is more easily or more efficiently obtained from, or verified by, the Commissioner; and
(c)
it is not unreasonable or impractical to require the Commissioner to deliver the information; and
(d)
the nature of the sharing is proportionate, taking into account the purpose for which the information is proposed to be shared; and
(e)
the person, entity, or agency receiving the information has adequate protection for the information; and
(f)
the sharing of the information will not unduly inhibit the future provision of information to the Commissioner.
Regulations
(2)
The Governor-General may, by Order in Council on the recommendation of the Minister of Revenue, make regulations—
(a)
providing for the sharing of revenue information that the Commissioner holds with an agency; and
(b)
prescribing—
(i)
the classes or types of revenue information that may be shared:
(ii)
how the information is to be provided or accessed:
(iii)
how the information is to be used:
(iv)
how the information must be stored, kept secure, or disposed of; and
(c)
providing that the information-sharing arrangements under the regulations are monitored by the Privacy Commissioner; and
(d)
specifying—
(i)
whether further disclosure of the information is permitted:
(ii)
whether review requirements are to be stipulated, including instances of breaches of confidentiality.
Secondary legislation
(2B)
An order under this section is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).
Requirements for making of regulations
(3)
The Minister may recommend the making of regulations under this section only if satisfied that—
(a)
the regulations are necessary to achieve the purpose set out in subsection (1); and
(b)
the type and quantity of information to be shared under the regulations are no more than is necessary to facilitate the provision of effective and efficient services or enforce the law; and
(c)
the regulations do not unreasonably impinge on the privacy of individuals and contain safeguards that adequately protect the privacy of individuals; and
(d)
the mechanism used to share the information is the most appropriate mechanism, taking into account the type and quantity of the information to be shared; and
(e)
a consultative process has been undertaken that—
(i)
includes the distribution of draft regulations and an explanation of the way in which the regulations would meet the requirements of paragraphs (a) to (d) to the Privacy Commissioner and other persons or organisations with whom the Commissioner considers it is reasonable to consult for the purposes of this section; and
(ii)
provides a period of consultation of at least 4 weeks.
Government agency communication
(4)
An Order in Council made under the authority of this Act under section 81BA as repealed by the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019, to the extent to which it continues to be in force, is treated as a regulation made under this section.
| Legislation Act 2019 requirements for secondary legislation made under this section | ||||
| Publication | PCO must publish it on the legislation website and notify it in the Gazette | LA19 s 69(1)(c) | ||
| Presentation | The Minister must present it to the House of Representatives | LA19 s 114, Sch 1 cl 32(1)(a) | ||
| Disallowance | It may be disallowed by the House of Representatives | LA19 ss 115, 116 | ||
| This note is not part of the Act. | ||||
Section 18F: inserted, on 18 March 2019, by section 10 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 18F(2B) heading: inserted, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
Section 18F(2B): inserted, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
18G Disclosures to persons and their representatives
Section 18 does not apply to a disclosure of sensitive revenue information made to a person in relation to whom the information is held. The disclosure may be made to the person and also to the person’s representative as set out in schedule 7, part B.
Section 18G: inserted, on 18 March 2019, by section 10 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
18H Disclosures to other agencies for certain specified purposes
Section 18 does not apply to a disclosure of sensitive revenue information to certain agencies when the disclosure is made for certain specified purposes as set out in schedule 7, part C.
Section 18H: inserted, on 18 March 2019, by section 10 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
18I Disclosures for international purposes
Section 18 does not apply to a disclosure of sensitive revenue information that is made for the purposes of an international obligation of the Commissioner as set out in schedule 7, part D.
Section 18I: inserted, on 18 March 2019, by section 10 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
18J Disclosures for risk of harm purposes
Serious threat to health and safety
(1)
Section 18 does not apply to a disclosure of sensitive revenue information that is made when disclosure is necessary to prevent or lessen a serious threat to—
(a)
public health or public safety:
(b)
the life or health of a person.
Meaning of serious threat
(2)
For the purposes of this section, serious threat means a threat that the Commissioner reasonably believes to be serious having regard to—
(a)
the likelihood of the threat being realised; and
(b)
the severity of the consequences if the threat is realised; and
(c)
the time at which the threat may be realised.
Section 18J: inserted, on 18 March 2019, by section 10 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
18K Commissioner to notify Minister where funds of gift-exempt body applied for non-charitable purpose, etc
In any case where the Commissioner has reason to believe that the funds of any gift-exempt body might be or are being applied for a purpose that is not charitable, benevolent, philanthropic, or cultural, the Commissioner shall, notwithstanding section 18(1), without revealing the identity of the maker of any donation to the gift-exempt body, notify the Minister accordingly.
Compare: 1976 No 65 s 432A(4)
Section 18K (former section 89): renumbered, on 18 March 2019, by section 50 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 18K heading: amended, on 2 June 2016, by section 128(1) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section 18K: amended, on 18 March 2019, by section 113 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 18K: amended, on 2 June 2016, by section 128(2) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
19 Inquiry by Commissioner
[Repealed]Section 19: repealed, on 18 March 2019, by section 10 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Subpart 3AB—Tax advice documents
Subpart 3AB heading: inserted, on 18 March 2019, by section 11 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
20 Privilege for confidential communications between legal practitioners and their clients
(1)
Despite anything in the Search and Surveillance Act 2012, but subject to subsections (2) and (3), any information or document shall, for the purposes of sections 16 to 17E, 17GB to 17I, 143(1)(b), 143A(1)(b), 143B(1)(b), and 143F, be privileged from disclosure, if—
(a)
it is a confidential communication passing between—
(i)
a legal practitioner in the practitioner’s professional capacity and another legal practitioner in such capacity; or
(ii)
a legal practitioner in the practitioner’s professional capacity and the practitioner’s client,—
whether made directly or indirectly through an agent of either; and
(b)
it is made or brought into existence for the purpose of obtaining or giving legal advice or assistance; and
(c)
it is not made or brought into existence for the purpose of committing or furthering the commission of some illegal or wrongful act.
(2)
Where the information or document consists wholly or partly of, or relates wholly or partly to, the receipts, payments, income, expenditure, or financial transactions of a specified person (whether a legal practitioner, the practitioner’s client, or any other person), it shall not be privileged from disclosure if it is contained in, or comprises the whole or part of, any book, account, statement, or other record prepared or kept by the legal practitioner in connection with a trust account of the legal practitioner within the meaning of section 6 of the Lawyers and Conveyancers Act 2006.
(3)
Where the information or document consists wholly or partly of, or relates wholly or partly to investment receipts (being receipts arising or accruing on or after 1 April 1975 from any money lodged at any time with a legal practitioner for investment) of any person or persons (whether the legal practitioner, the practitioner’s client or clients, or any other person or persons), it shall not be privileged from disclosure if it is contained in, or comprises the whole or part of, any book, account, statement, or other record prepared or kept by the legal practitioner in connection with a trust account of the legal practitioner within the meaning of section 6 of the Lawyers and Conveyancers Act 2006.
(4)
Except as provided in subsection (1), no information or document shall for the purposes of sections 16 to 17E, 17GB to 17I, 143(1)(b), 143A(1)(b), 143B(1)(b), and 143F be privileged from disclosure on the ground that it is a communication passing between one legal practitioner and another legal practitioner or between a legal practitioner and the practitioner’s client.
(5)
Where any person refuses to disclose any information or document on the ground that it is privileged under this section, the Commissioner or that person may apply to a District Court Judge for an order determining whether or not the claim of privilege is valid; and, for the purposes of determining any such application, the District Court Judge may require the information or document to be produced to the District Court Judge. An application under this subsection may be made in the course of an inquiry under section 17J to the District Court Judge who is holding the inquiry.
(6)
Subject to subsection (3), this section shall apply to information and documents made or brought into existence whether before or after the commencement of this Act.
(7)
In this section, legal practitioner means a barrister or solicitor of the High Court, and references to a legal practitioner include a firm or an incorporated law firm (within the meaning of the Lawyers and Conveyancers Act 2006) in which he or she is, or is held out to be, a partner, director, or shareholder.
Compare: 1974 No 133 s 20
Section 20 heading: replaced (with effect on 1 April 1995), on 12 December 1995, by section 3 of the Tax Administration Amendment Act (No 3) 1995 (1995 No 77).
Section 20(1): amended (with effect on 7 December 2020), on 30 March 2021, by section 150(1) of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
Section 20(1): amended, on 18 March 2019, by section 113 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 20(1): amended, on 1 September 2013, by section 302(10) of the Search and Surveillance Act 2012 (2012 No 24).
Section 20(1): amended, on 29 August 2011, by section 149(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section 20(1): amended, on 26 July 1996, by section 8 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 20(1)(a): amended, on 2 June 2016, by section 83 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section 20(2): amended, on 29 August 2011, by section 149(2) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section 20(2): amended, on 1 August 2008, by section 348 of the Lawyers and Conveyancers Act 2006 (2006 No 1).
Section 20(3): amended, on 29 August 2011, by section 149(3) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section 20(3): amended, on 1 August 2008, by section 348 of the Lawyers and Conveyancers Act 2006 (2006 No 1).
Section 20(4): amended (with effect on 7 December 2020), on 30 March 2021, by section 150(2) of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
Section 20(4): amended, on 18 March 2019, by section 113 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 20(4): amended, on 29 August 2011, by section 149(4) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section 20(4): amended, on 26 July 1996, by section 8 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 20(5): amended, on 18 March 2019, by section 113 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 20(5): amended, on 29 August 2011, by section 149(5) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section 20(6): amended, on 29 August 2011, by section 149(6) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section 20(7): replaced, on 1 August 2008, by section 348 of the Lawyers and Conveyancers Act 2006 (2006 No 1).
20B No requirement to disclose tax advice document
(1)
Despite anything in the Search and Surveillance Act 2012, a person (called in this section and sections 20C to 20G an information holder) who is required under 1 or more of sections 16 to 17E and 17GB to 17I or under a discovery obligation to disclose information in relation to the information holder or another person is not required to disclose a document that is a tax advice document for the person to whom the information relates.
(2)
A document is eligible to be a tax advice document for a person if the document—
(a)
is confidential; and
(b)
is created by—
(i)
the person for the main purpose of instructing a tax advisor to act for the person by giving advice to the person, if the advice is to be about the operation and effect of tax laws:
(ii)
a tax advisor or, where the tax advisor is in public practice, an employee of the tax advisor’s firm, for the main purpose of recording research and analysis, if the research and analysis is performed for the main purpose of enabling the tax advisor to give advice to the person about the operation and effect of tax laws:
(iii)
a tax advisor or, where the tax advisor is in public practice, an employee of the tax advisor’s firm, for the main purpose of the giving of advice by the tax advisor to the person, or the recording of advice given by the tax advisor to the person, if the advice is about the operation and effect of tax laws; and
(c)
is created for purposes that do not include a purpose of committing, or promoting or assisting the committing of, an illegal or wrongful act.
(3)
A document is a tax advice document for a person if—
(a)
the document is eligible under subsection (2) to be a tax advice document for the person; and
(b)
the person makes a claim, under section 20D, that the document is a tax advice document; and
(c)
the person satisfies the requirements of sections 20E and 20F for the document.
(4)
A tax advisor is a natural person who is subject to the code of conduct and disciplinary process, referred to in subsection (5)(a)(ii) and (iii), of an approved advisor group.
(5)
An approved advisor group is a group that—
(a)
includes natural persons who—
(i)
have a significant function of giving advice on the operation and effect of tax laws; and
(ii)
are subject to a professional code of conduct in giving the advice; and
(iii)
are subject to a disciplinary process that enforces compliance with the code of conduct; and
(b)
is approved by the Commissioner for the purposes of this definition.
Section 20B: inserted, on 21 June 2005 (applying to a requirement to disclose information for which notice of requirement is given after 21 June 2005), by section 122(1) of the Taxation (Base Maintenance and Miscellaneous Provisions) Act 2005 (2005 No 79).
Section 20B(1): amended (with effect on 7 December 2020), on 30 March 2021, by section 151 of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
Section 20B(1): amended, on 18 March 2019, by section 113 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 20B(1): amended, on 1 September 2013, by section 302(11) of the Search and Surveillance Act 2012 (2012 No 24).
Section 20B(1): amended, on 29 August 2011, by section 150(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section 20B(1): amended, on 6 October 2009, by section 600(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 20B(2): amended, on 29 August 2011, by section 150(2) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section 20B(3): amended, on 29 August 2011, by section 150(3) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section 20B(3)(a): amended, on 29 August 2011, by section 150(3) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section 20B(3)(b): amended, on 29 August 2011, by section 150(3) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section 20B(3)(c): amended, on 29 August 2011, by section 150(3) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
20C Treatment of document
(1)
This section applies to a document that is—
(a)
included in a request for, or discovery obligation for disclosure of, information in relation to a person; and
(b)
possibly eligible to be a tax advice document for the person.
(2)
The document must be treated as being a tax advice document for the person—
(a)
from the time of the request for, or discovery obligation for disclosure of, information:
(b)
until the earlier of—
(i)
the time by which the person is required by section 20D to claim that the document is a tax advice document for the person:
(ii)
the time at which the person notifies the Commissioner that the person does not claim that the document is a tax advice document for the person.
(3)
If the person makes a claim under section 20D that the document is a tax advice document for the person, the document must be treated as being a tax advice document for the person from the time of the claim until—
(a)
the document is ruled not to be a tax advice document for the person by—
(i)
the District Court:
(ii)
a court or Taxation Review Authority, if the claim is made in response to a discovery obligation in proceedings before the court or Authority:
(b)
the person notifies the Commissioner that the document is not eligible to be a tax advice document for the person:
(c)
the person notifies the Commissioner that they withdraw the claim that the document is a tax advice document for the person:
(d)
an approved advisor group informs the Commissioner that a tax advisor is not or was not a member of the approved advisor group at a time—
(i)
at which the tax advisor is claimed by the person or the tax advisor to be a member of the approved advisor group; and
(ii)
at which the tax advisor would be required to be a member of an approved advisor group for the document to be a tax advice document.
(4)
If a document must be treated under this section as being a tax advice document for a person, a copy of the document must be held in a secure place for the periods referred to in subsections (2) and (3) by a tax advisor.
Section 20C: inserted, on 21 June 2005 (applying to a requirement to disclose information for which notice of the requirement is given after 21 June 2005), by section 122(1) of the Taxation (Base Maintenance and Miscellaneous Provisions) Act 2005 (2005 No 79).
Section 20C heading: amended, on 29 August 2011, by section 151(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section 20C(1): amended, on 29 August 2011, by section 151(2) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section 20C(1)(a): amended, on 6 October 2009, by section 601(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 20C(2): amended, on 29 August 2011, by section 151(3) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section 20C(2)(a): replaced, on 6 October 2009, by section 601(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 20C(2)(b)(i): amended, on 29 August 2011, by section 151(3) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section 20C(2)(b)(ii): amended, on 2 June 2016, by section 84(1) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section 20C(2)(b)(ii): amended, on 29 August 2011, by section 151(3) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section 20C(3): amended, on 29 August 2011, by section 151(4) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section 20C(3)(a): replaced, on 6 October 2009, by section 601(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 20C(3)(a): amended, on 29 August 2011, by section 151(4) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section 20C(3)(b): replaced, on 2 June 2016, by section 84(2) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section 20C(3)(c): replaced, on 2 June 2016, by section 84(3) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section 20C(4): amended, on 29 August 2011, by section 151(5) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
20D Claim that document is tax advice document
(1)
A claim by a person that a document is a tax advice document for the person must be made by the person or by a tax advisor who is authorised to act on behalf of the person for the purposes of sections 20C to 20G.
(2)
A claim that a document created by a person is a tax advice document for the person must contain the following information:
(a)
a brief description of the form and contents of the document; and
(b)
the name of the tax advisor for whom the document was intended; and
(c)
the date on which the document was created.
(3)
A claim that a document created by a tax advisor, or by an employee of a tax advisor’s firm, is a tax advice document for a person must contain the following information:
(a)
a brief description of the form and contents of the document; and
(b)
the name of the tax advisor giving the tax advice in relation to which the document was created; and
(c)
the approved advisor group to which the tax advisor belonged when the document was created; and
(d)
the statute or other enactment and the type of revenue that was the subject of the tax advisor’s advice in relation to which the document was created; and
(e)
the date on which the document was created.
(4)
A claim that a document is a tax advice document for a person must be made—
(a)
if the requirement to disclose information is under section 17 or under section 17 and 17C—
(i)
on the day on which the Commissioner or an officer of the department exercises the right of inspection or removal that leads to the claim:
(ii)
by a later date to which the Commissioner agrees:
(b)
if the requirement to disclose information is under section 17B or 17GB, by the date that is the later of the following:
(i)
the date that is given by the Commissioner in the request for disclosure of the information:
(ii)
the date that is 28 days after the date of the request by the Commissioner for disclosure of the information:
(c)
if the requirement to disclose information is under section 17H, 17J, or 17K, by the date on which the court requires the production of information:
(d)
if the requirement to disclose information is under section 17I, by the date on which the Commissioner requires the production of information:
(e)
if the requirement to disclose information is under a discovery obligation, by the date by which the discovery obligation requires the disclosure of information.
(5)
If a tax advisor acting on behalf of a person claims that a document is a tax advice document for the person, the claim must include notification by the tax advisor that the tax advisor is authorised to act on behalf of the person for the purposes of sections 20C to 20G.
Section 20D: inserted, on 21 June 2005 (applying to a requirement to disclose information for which notice of the requirement is given after 21 June 2005), by section 122(1) of the Taxation (Base Maintenance and Miscellaneous Provisions) Act 2005 (2005 No 79).
Section 20D heading: amended, on 29 August 2011, by section 152(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section 20D(1): amended, on 29 August 2011, by section 152(2) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section 20D(2): amended, on 29 August 2011, by section 152(3) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section 20D(2)(a): amended, on 29 August 2011, by section 152(3) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section 20D(2)(b): amended, on 29 August 2011, by section 152(3) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section 20D(2)(c): amended, on 29 August 2011, by section 152(3) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section 20D(3): amended, on 29 August 2011, by section 152(4) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section 20D(3)(a): amended, on 29 August 2011, by section 152(4) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section 20D(3)(b): amended, on 29 August 2011, by section 152(4) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section 20D(3)(c): amended, on 29 August 2011, by section 152(4) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section 20D(3)(d): amended, on 29 August 2011, by section 152(4) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section 20D(3)(e): amended, on 29 August 2011, by section 152(4) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section 20D(4): amended, on 29 August 2011, by section 152(5) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section 20D(4)(a): amended (with effect on 7 December 2020), on 30 March 2021, by section 152(1) of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
Section 20D(4)(a): amended, on 18 March 2019, by section 113 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 20D(4)(b): amended (with effect on 7 December 2020), on 30 March 2021, by section 152(2) of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
Section 20D(4)(b): amended, on 18 March 2019, by section 113 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 20D(4)(c): amended, on 18 March 2019, by section 113 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 20D(4)(d): amended, on 18 March 2019, by section 113 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 20D(4)(d): amended, on 6 October 2009, by section 602(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 20D(4)(e): inserted, on 6 October 2009, by section 602(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 20D(5): amended, on 2 June 2016, by section 85 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section 20D(5): amended, on 29 August 2011, by section 152(6) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
20E Document or part of document included in tax advice document
An information holder who is required to disclose information in relation to a person is required to provide a copy of a document or part of document that—
(a)
is attached to a document that is eligible under section 20B(2) to be a tax advice document for the person; and
(b)
is not eligible under section 20B(2) to be a tax advice document for the person.
Section 20E: inserted, on 21 June 2005 (applying to a requirement to disclose information for which notice of the requirement is given after 21 June 2005), by section 122(1) of the Taxation (Base Maintenance and Miscellaneous Provisions) Act 2005 (2005 No 79).
Section 20E heading: replaced, on 29 August 2011, by section 153(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section 20E: amended, on 29 August 2011, by section 153(2) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section 20E(a): amended, on 29 August 2011, by section 153(2) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
20F Person must disclose tax contextual information from tax advice document
(1)
An information holder who is required to disclose information relating to a person must disclose under subsection (2) a description of tax contextual information from a document that the person claims, under section 20D, to be a tax advice document for the person.
(2)
A disclosure under subsection (1) of a description of tax contextual information from a document must be made—
(a)
if the requirement to disclose information is under section 17 or under section 17 and 17C, by the date that is determined by the Commissioner:
(b)
if the requirement to disclose information is under section 17B or 17GB and the requirement is accompanied or followed by a requirement for disclosure of a description of tax contextual information, by the date that is the later of—
(i)
the date that is given by the Commissioner in the requirement for disclosure of the description:
(ii)
the date that is 28 days after the date of the requirement by the Commissioner for disclosure of the description:
(c)
if the requirement to disclose information is under section 17H, 17J, or 17K, by the date on which the court requires the production of information:
(d)
if the requirement to disclose information is under section 17I, by the date on which the Commissioner requires the production of information:
(e)
if the requirement to disclose information is under a discovery obligation, by the date by which the discovery obligation requires the disclosure of information.
(3)
Tax contextual information for a tax advice document for a person is—
(a)
a fact or assumption relating to a transaction that has occurred or is postulated by the person creating the tax advice document:
(b)
a description of a step involved in the performance of a transaction that has occurred or is postulated by the person creating the tax advice document:
(c)
advice that does not concern the operation and effect on the person of tax laws:
(d)
advice that concerns the operation and effect on the person of tax laws relating to the collection by the Commissioner of debts payable to the Commissioner:
(e)
a fact or assumption relating to advice that is referred to in paragraph (c) or (d):
(f)
a fact or assumption from, or relating to the preparation of,—
(i)
financial statements of the person:
(ii)
a document containing information that the person is required to provide to the Commissioner under an Inland Revenue Act.
(4)
A disclosure by a person or tax advisor of tax contextual information from a tax advice document for the person must be in a statutory declaration that—
(a)
is made by a tax advisor who has not been barred under subsection (5) from making statutory declarations under this subsection; and
(b)
states that the tax advisor is authorised to act on behalf of the person for the purposes of sections 20C to 20G; and
(c)
is in the prescribed form.
(5)
The Commissioner may apply to a District Court Judge, or to a court or Taxation Review Authority in relation to a tax advisor making a statutory declaration considered in proceedings before the court or Authority, that a tax advisor be barred from making statutory declarations under this section, if the tax advisor is convicted of an offence under—
(a)
section 111 of the Crimes Act 1961:
(b)
(e)
(6)
An application under subsection (5) may be made in the course of proceedings before a court or Taxation Review Authority.
Section 20F: inserted, on 21 June 2005 (applying to a requirement to disclose information for which notice of the requirement is given after 21 June 2005), by section 122(1) of the Taxation (Base Maintenance and Miscellaneous Provisions) Act 2005 (2005 No 79).
Section 20F(1): amended, on 29 August 2011, by section 154(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section 20F(2): amended, on 29 August 2011, by section 154(2) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section 20F(2)(a): amended (with effect on 7 December 2020), on 30 March 2021, by section 153(1) of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
Section 20F(2)(a): amended, on 18 March 2019, by section 113 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 20F(2)(b): amended (with effect on 7 December 2020), on 30 March 2021, by section 153(2) of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
Section 20F(2)(b): amended, on 18 March 2019, by section 113 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 20F(2)(c): amended, on 18 March 2019, by section 113 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 20F(2)(d): amended, on 18 March 2019, by section 113 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 20F(2)(d): amended, on 6 October 2009, by section 603(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 20F(2)(e): inserted, on 6 October 2009, by section 603(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 20F(5): amended, on 6 October 2009, by section 603(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 20F(6): inserted, on 6 October 2009, by section 603(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
20G Challenge to claim that document is tax advice document
(1)
If a person claims that a document is a tax advice document for the person, the Commissioner or the person may apply to a District Court Judge, or to the court or Taxation Review Authority hearing the proceedings giving rise to the claim, for an order determining whether—
(a)
the document is a tax advice document for the person:
(b)
information provided or withheld by the person is tax contextual information in relation to the document:
(c)
the person should provide a more detailed or better description of tax contextual information in relation to the document.
(2)
For the purposes of determining an application under this section, the District Court Judge, court, or Taxation Review Authority may require the document to be produced to the District Court Judge, court, or Taxation Review Authority.
(3)
An application under this section may be made in the course of an inquiry under section 17J to the District Court Judge who is holding the inquiry.
(4)
An application under this section may be made in the course of proceedings before a court or Taxation Review Authority.
Section 20G: inserted, on 21 June 2005 (applying to a requirement to disclose information for which notice of the requirement is given after 21 June 2005), by section 122(1) of the Taxation (Base Maintenance and Miscellaneous Provisions) Act 2005 (2005 No 79).
Section 20G heading: amended, on 29 August 2011, by section 155(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section 20G(1): amended, on 29 August 2011, by section 155(2) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section 20G(1)(a): amended, on 29 August 2011, by section 155(2) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section 20G(1)(b): amended, on 29 August 2011, by section 155(2) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section 20G(1)(c): amended, on 29 August 2011, by section 155(2) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section 20G(1): amended, on 6 October 2009, by section 604(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 20G(1)(b): replaced, on 6 October 2009, by section 604(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 20G(2): amended, on 29 August 2011, by section 155(3) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section 20G(2): amended, on 6 October 2009, by section 604(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 20G(3): amended, on 18 March 2019, by section 113 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 20G(4): inserted, on 6 October 2009, by section 604(4) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
21 Information requisitions in relation to offshore payments
[Repealed]Section 21: repealed, on 18 March 2019, by section 13 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
21BA Information required to be provided by large multinational group
[Repealed]Section 21BA: repealed, on 18 March 2019, by section 14 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Subpart 3AC—Taxpayers’ obligations to keep records
Subpart 3AC heading: inserted, on 1 April 2019 (replaced 18 March 2019 (with effect from 1 April 2019), by section 12 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5)), by section 270 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Taxpayer’s obligations to keep records[Repealed]
Heading: repealed, on 1 April 2019, by section 270 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
21B Preparing financial statements
(1)
A company must prepare financial statements in accordance with the applicable minimum requirements prescribed in an Order in Council made under section 21C, unless the company is of a class specified as exempt from the minimum requirements in an Order in Council made under section 21C.
(2)
A taxpayer of a class specified in an Order in Council under section 21C must prepare financial statements in accordance with the applicable minimum requirements prescribed in an Order in Council made under section 21C.
(3)
If an enactment other than this one provides applicable minimum requirements for preparing financial statements for a company or taxpayer, the company or taxpayer must prepare financial statements using those minimum requirements and subsection (1) and (2) do not apply.
(4)
Section 22 applies to keeping and retaining the financial statements.
Section 21B: inserted, on 27 February 2014, by section 134(2) of the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Act 2014 (2014 No 4).
21C Preparing financial statements: Orders in Council
(1)
The Governor-General may from time to time, by Order in Council made on the recommendation of the Minister of Revenue, prescribe, for the purposes of section 21B,—
(a)
minimum requirements for preparing financial statements:
(b)
classes of taxpayers to whom the minimum requirements apply:
(c)
classes of companies that are exempt from the minimum requirements:
(d)
the period for which financial statements must be prepared.
(2)
Before recommending the making or amending of an Order in Council under this section, the Minister of Revenue must, whether before or after the date on which the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Act 2014 receives the Royal assent, consult with professional accounting bodies that the Minister decides it is reasonable to consult for the purposes of this section.
(3)
An order under this section is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).
| Legislation Act 2019 requirements for secondary legislation made under this section | ||||
| Publication | PCO must publish it on the legislation website and notify it in the Gazette | LA19 s 69(1)(c) | ||
| Presentation | The Minister must present it to the House of Representatives | LA19 s 114, Sch 1 cl 32(1)(a) | ||
| Disallowance | It may be disallowed by the House of Representatives | LA19 ss 115, 116 | ||
| This note is not part of the Act. | ||||
Section 21C: inserted, on 27 February 2014, by section 134(1) of the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Act 2014 (2014 No 4).
Section 21C(3): inserted, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
22 Keeping of business and other records
(1)
Without limiting the generality of subsection (7), the records required to be kept and retained under subsection (2) in respect of any business carried on during any income year by any person, shall contain—
(aa)
the financial statements required to be prepared by section 21B; and
(a)
a record of the assets and liabilities of the person (in relation to that business); and
(b)
a record of all entries from day to day of all sums of money received and expended by the person (in relation to that business) and the matters in respect of which the receipt and expenditure takes place; and
(c)
where that business involves dealing in goods—
(i)
a record of all goods purchased, and of all goods sold in the carrying on of that business (except those sold in the course of cash retail trading customarily conducted in a business of the kind of which that business is one) showing the goods, and the sellers and buyers or, as the case may be, the agents of the sellers and buyers in sufficient detail to enable the goods, and the sellers and buyers, and those agents, to be readily identified by the Commissioner; and all invoices relating to the goods; and
(ii)
statements (including quantities and values) of trading stock held by the person at the end of each such tax year, and all records of stocktakings from which any such statement of trading stock has been, or is to be, prepared; and
(iii)
a taxpayer, other than a low-turnover trader, must retain all accounting records relating to the calculation of the value of closing stock (as defined in section YA 1 of the Income Tax Act 2007); and
(iv)
a low-turnover trader (as defined in section YA 1 of the Income Tax Act 2007) must retain records of the valuation methods and their application in calculating the value of closing stock, except if the methods and their application are not materially different from the previous income year; and
(v)
the taxpayer must comply with section EB 22(4) of the Income Tax Act 2007; and
(d)
where that business involves the provision of services, records of the services provided and all invoices relating to them; and
(e)
the charts and codes of accounts, the accounting instruction manuals, and the system and programme documentation which describes the accounting system used in each income year in the carrying on of that business.
(2)
Subject to subsections (2BA), (2B), (3), (4), and (6), every person who—
(a)
carries on any business in New Zealand:
(b)
carries on any other activity (not being the carrying on of employment as an employee) in New Zealand for the purpose of deriving assessable income:
(c)
is a person to whom the ESCT rules apply and who makes an employer’s superannuation cash contribution to a superannuation fund:
(cb)
is a person to whom the RSCT rules apply and who makes a retirement scheme contribution to a retirement savings scheme:
(d)
makes, holds, or disposes of, for the purpose of deriving assessable income, any investment:
(e)
is an employer to whom the FBT rules apply or is a person who provides any fringe benefit to any person who, in relation to any employer to whom the FBT rules apply, is an employee:
(eb)
has a tax credit under subpart LY of the Income Tax Act 2007:
(ec)
is an approved research provider:
(ed)
is an employer to whom section RD 13B of that Act applies in relation to the treatment of a tax credit for a payroll donation:
(f)
is a company that is an ICA company, a BETA person, a PCA company, or a PCA person:
(fb)
is a resident trustee of a foreign trust in any income year:
(fc)
is a borrower under section 4(1) of the Student Loan Scheme Act 2011 who has adjusted net income as defined in section 73 of that Act:
(fd)
must meet requirements under Part 11B, including requirements expressed as being imposed on an entity other than a person, of—
(i)
a financial institution, as defined in the FATCA agreement:
(ii)
a financial institution, as defined in the CRS applied standard:
(fe)
is a reporting platform operator to whom sections 185S and 185T apply—
shall keep sufficient records to enable the ascertainment readily by the Commissioner, or any officer authorised by the Commissioner in that behalf, of—
(g)
the assessable income derived by that person from the carrying on of that business, or the carrying on of that other activity, or the making or holding or disposing of that investment; and
(h)
the deductions of that person in the carrying on of that business, or the carrying on of that other activity, or the making or holding or disposing of that investment; and
(i)
every fringe benefit, and the taxable value of every fringe benefit, provided by the person to any person in relation to whom the person is an employer, and every fringe benefit provided by the person to any person who in relation to another person is an employee, those records to include (without limiting the generality of the preceding provisions of this paragraph) details of the recipient of the fringe benefit, the occasion of the providing of it, and the amount (if any) paid or payable by the employee for the receipt or enjoyment of it; and
(j)
[Repealed](k)
every credit and debit to the person’s memorandum accounts (other than an ASC account), and the amount of a credit attached to a dividend or distribution paid by the person:
(kb)
[Repealed](kc)
the amount of the person’s tax credit under subpart LY of the Income Tax Act 2007; and
(kd)
if the person is an approved research provider, the following matters:
(i)
ongoing compliance with section 124ZH(4); and
(ii)
amounts derived and incurred by the person performing research and development activities on behalf of other persons; and
(ke)
the transfer under section 124ZG of an amount of an employee’s payroll donation to the recipient of the donation; and
(l)
every employer’s superannuation cash contribution, and the taxable value of that contribution, made by the person to any superannuation fund, those records to include (without limiting the generality of the preceding provisions of this paragraph) details of the recipient of the employer’s superannuation cash contribution, the occasion of making it, and any related tax credit under section MK 1(2) of the Income Tax Act 2007; and
(lb)
every retirement scheme contribution, and the taxable value of that contribution, made by the person to any retirement savings scheme, those records to include, without limiting the generality of the preceding provisions of this paragraph, details of the recipient of the retirement scheme contribution and the occasion of making it; and
(lc)
the person’s compliance with Part 11B; and
(ld)
a failure by the person to obtain a self-certification as required by the CRS applied standard; and
(le)
steps taken by the person and evidence relied upon by the person in performing obligations under Part 11B relating to the CRS applied standard; and
(lf)
for a reporting platform operator, evidence of steps undertaken in the operation of the digital platform, and information relied on for the performance of due diligence procedures and reporting requirements set out in the model reporting standard for digital platforms and the extended model reporting standard for digital platforms, as applicable; and
(m)
the financial position of the foreign trust; and
(n)
adjusted net income under the Student Loan Scheme Act 2011,—
and shall retain all such records for a period of at least 7 years after the end of the income year, or (for paragraph (k)) the tax or income year (as applicable), or (for paragraph (lf)) the calendar year, to which they relate.
(2BA)
A taxpayer required by subsection (2) to keep and retain a record must keep and retain the record—
(a)
in English or te reo Maori, or in a language in which the Commissioner authorises the taxpayer under subsection (8) to keep the record or the type of record; and
(b)
at a place in New Zealand, or at a place outside New Zealand where—
(i)
the Commissioner authorises the taxpayer under subsection (8) to keep the record or the type of record:
(ii)
the record is kept by a person authorised by the Commissioner under subsection (8) to keep records for taxpayers that include the taxpayer.
(2B)
A taxpayer referred to in subsection (2)(e) who is required by subsection (2) to retain records is not required to retain those records for a period of more than 7 years after the end of the income year to which the records relate.
(2C)
If there are more than 1 resident trustee of a foreign trust, the resident trustees may appoint one of themselves as an agent for the purposes of keeping the records required by subsection (2).
(3)
A qualifying individual who is required by subsection (2) to retain records of their assessable income, must retain those records for a period of 12 months after the end of the income year in which the individual derived the income.
(4)
This section shall not require the retention of any records—
(a)
in respect of which the Commissioner has given notice that retention is not required:
(b)
of a company which has been liquidated:
(c)
by a partner of a partnership, if the partnership retains the records that the partner would be required to retain but for this paragraph.
(5)
The Commissioner may, by notice given before the expiry of the 7-year retention period specified in subsection (2) or (2B), 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.
(6)
The Commissioner may, by notice, dispense any class of taxpayers from the need to retain the records, or any class of records, specified in subsection (2) or (2B), for more than 12 months following the end of the income year or tax 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 withheld or deducted at source.
(6B)
A notice under subsection (6) is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).
(7)
In this section, records includes—
(a)
books of account (whether contained in a manual, mechanical, or electronic format) recording receipts or payments or income or expenditure:
(b)
vouchers, bank statements, invoices, receipts, and such other documents as are necessary to verify the entries in the books of account referred to in paragraph (a):
(c)
accounts (whether contained in a manual, mechanical, or electronic format) to be maintained under the imputation rules, or section OA 3 for accounts under subpart OE, of the Income Tax Act 2007, and any statement to be retained under section 31 of this Act:
(d)
in the case of a foreign trust, other than for the period for which section 59C(3) applies,—
(i)
[Repealed](ii)
[Repealed](iii)
a record of—
(A)
the assets and liabilities of the foreign trust; and
(B)
all entries from day to day of all sums of money received and expended by the trustee in relation to the foreign trust and the matters in respect of which the receipt and expenditure takes place; and
(C)
if the trust carries on a business, the charts and codes of accounts, the accounting instruction manuals, and the system and programme documentation which describes the accounting system used in each income year in the administration of the trust:
(e)
for the purposes of subsection (2)(kc), other documents evidencing research and development activities.
(8)
The Commissioner may, upon application by the taxpayer or person, authorise for the purposes of subsection (2BA),—
(a)
a taxpayer to keep and retain a record or type of record—
(i)
in a language other than English or te reo Maori:
(ii)
at a place outside New Zealand:
(b)
a person to hold, for taxpayers, records—
(i)
at places outside New Zealand; and
(ii)
in a form approved by the Commissioner; and
(iii)
accessible by the Commissioner in a way approved by the Commissioner.
(9)
The Commissioner may, for an authorisation under subsection (8) of a person,—
(a)
impose reasonable conditions on the authorisation:
(b)
reasonably vary the conditions on the authorisation:
(c)
withdraw the authorisation, upon request by the person or after giving reasonable notice of the withdrawal:
(d)
give public notice of an action under subsection (8)(b) or this subsection, in a publication chosen by the Commissioner.
Compare: 1976 No 65 s 428; 1994 No 76 s 73
| Legislation Act 2019 requirements for secondary legislation made under this section | ||||
| Publication | The maker must publish it in the Gazette | LA19 ss 73, 74(1)(a), Sch 1 cl 14 | ||
| Presentation | It is not required to be presented to the House of Representatives because a transitional exemption applies under Schedule 1 of the Legislation Act 2019 | LA19 s 114, Sch 1 cl 32(1)(a) | ||
| Disallowance | It may be disallowed by the House of Representatives | LA19 ss 115, 116 | ||
| This note is not part of the Act. | ||||
Section 22 heading: amended, on 19 December 2007 (applying for 2008–09 and later income years), by section 189(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 22(1): amended (with effect on 1 April 2005), on 3 April 2006 (applying for income years corresponding to 2005–06 and subsequent tax years), by section 211(1)(a) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).
Section 22(1)(aa): inserted, on 27 February 2014, by section 135 of the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Act 2014 (2014 No 4).
Section 22(1)(c)(ii): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 22(1)(c)(iii): inserted, on 26 November 1998, by section 26 of the Taxation (Tax Credits, Trading Stock, and Other Remedial Matters) Act 1998 (1998 No 107).
Section 22(1)(c)(iii): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 22(1)(c)(iii): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 22(1)(c)(iv): inserted, on 26 November 1998, by section 26 of the Taxation (Tax Credits, Trading Stock, and Other Remedial Matters) Act 1998 (1998 No 107).
Section 22(1)(c)(iv): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 22(1)(c)(iv): amended (with effect on 1 April 2005), on 3 April 2006 (applying for income years corresponding to 2005–06 and subsequent tax years), by section 211(1)(b) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).
Section 22(1)(c)(iv): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 22(1)(c)(v): inserted, on 26 November 1998, by section 26 of the Taxation (Tax Credits, Trading Stock, and Other Remedial Matters) Act 1998 (1998 No 107).
Section 22(1)(c)(v): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 22(1)(c)(v): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 22(1)(e): amended (with effect on 1 April 2005), on 3 April 2006 (applying for income years corresponding to 2005–06 and subsequent tax years), by section 211(1)(c) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).
Section 22(2): amended, on 2 November 2012, by section 171(1)(a) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).
Section 22(2): amended, on 2 November 2012, by section 171(1)(c) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).
Section 22(2): amended, on 2 November 2012, by section 171(1)(e) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).
Section 22(2): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 22(2): amended (with effect on 1 April 2005), on 1 October 2006, by section 211(2)(a) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).
Section 22(2): amended (with effect on 1 April 2005), on 3 April 2006 (applying for income years corresponding to 2005–06 and subsequent tax years), by section 211(3) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).
Section 22(2) proviso: repealed, on 2 November 2012, by section 171(1)(e) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).
Section 22(2)(b): replaced, on 26 July 1996 (applying to 1997–98 and subsequent income years), by section 432(1) of the Taxation (Core Provisions) Act 1996 (1996 No 67).
Section 22(2)(b): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 22(2)(c): amended (with effect on 1 April 2008), on 2 November 2012, by section 171(1)(b) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).
Section 22(2)(c): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 22(2)(cb): inserted (with effect on 1 April 2007), on 19 December 2007 (applying for 2008–09 and later income years), by section 189(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 22(2)(d): replaced, on 26 July 1996 (applying to 1997–98 and subsequent income years), by section 432(1) of the Taxation (Core Provisions) Act 1996 (1996 No 67).
Section 22(2)(d): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 22(2)(eb): inserted, on 19 December 2007 (applying for 2008–09 and later income years), by section 189(3) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 22(2)(eb): amended, on 1 April 2019, by section 26(1) (and see section 3 for application) of the Taxation (Research and Development Tax Credits) Act 2019 (2019 No 15).
Section 22(2)(ec): replaced, on 1 April 2019, by section 26(2) (and see section 3 for application) of the Taxation (Research and Development Tax Credits) Act 2019 (2019 No 15).
Section 22(2)(ed): inserted (with effect on 6 January 2010), on 6 October 2009, by section 605(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 22(2)(f): replaced, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 22(2)(f): amended, on 1 April 2017, by section 302(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section 22(2)(f): amended, on 1 July 2012 (applying for records relating to income years beginning on or after that date), by section 140(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section 22(2)(fb): amended, on 1 January 2024, by section 165(1) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 22(2)(fb): inserted (with effect on 1 April 2005), on 1 October 2006, by section 211(2)(b) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).
Section 22(2)(fb): amended, on 14 May 2016, by section 77(1) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).
Section 22(2)(fc): inserted, on 14 May 2016, by section 77(2) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).
Section 22(2)(fc): amended, on 1 July 2017, by section 10(1) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
Section 22(2)(fd): amended, on 1 January 2024, by section 165(2) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 22(2)(fd): inserted, on 1 July 2017, by section 10(2) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
Section 22(2)(fe): inserted, on 1 January 2024, by section 165(3) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 22(2)(g): replaced, on 26 July 1996 (applying to 1997–98 and subsequent income years), by section 432(1) of the Taxation (Core Provisions) Act 1996 (1996 No 67).
Section 22(2)(g): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 22(2)(h): replaced, on 26 July 1996 (applying to 1997–98 and subsequent income years), by section 432(1) of the Taxation (Core Provisions) Act 1996 (1996 No 67).
Section 22(2)(h): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 22(2)(j): repealed (with effect on 30 June 2009), on 6 October 2009 (applying for all income years beginning on or after 1 July 2009), by section 605(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 22(2)(k): replaced, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 22(2)(k): amended (with effect on 1 July 2011 and applying for records relating to income years beginning on or after that date), on 7 May 2012, by section 140(2) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section 22(2)(kb): repealed, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 22(2)(kc): inserted, on 19 December 2007 (applying for 2008–09 and later income years), by section 189(4) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 22(2)(kc): amended, on 1 April 2019, by section 26(3) (and see section 3 for application) of the Taxation (Research and Development Tax Credits) Act 2019 (2019 No 15).
Section 22(2)(kd): replaced, on 1 April 2019, by section 26(4) (and see section 3 for application) of the Taxation (Research and Development Tax Credits) Act 2019 (2019 No 15).
Section 22(2)(ke): inserted (with effect on 6 January 2010), on 6 October 2009, by section 605(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 22(2)(ke): amended (with effect on 1 April 2019), on 23 March 2020, by section 193 of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 22(2)(l): amended (with effect on 1 April 2008), on 2 November 2012, by section 171(1)(d) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).
Section 22(2)(l): amended, on 1 April 2008, by section 17 of the Taxation (KiwiSaver) Act 2007 (2007 No 110).
Section 22(2)(l): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 22(2)(lb): inserted (with effect on 1 April 2007), on 19 December 2007 (applying for 2008–09 and later income years), by section 189(5) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 22(2)(lc): inserted, on 1 July 2014, by section 152 of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).
Section 22(2)(ld): inserted, on 1 July 2017, by section 10(3) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
Section 22(2)(le): inserted, on 1 July 2017, by section 10(3) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
Section 22(2)(lf): inserted, on 1 January 2024, by section 165(4) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 22(2)(m): inserted (with effect on 1 April 2005), on 1 October 2006, by section 211(2)(c) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).
Section 22(2)(m): amended, on 14 May 2016, by section 77(3) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).
Section 22(2)(n): inserted, on 14 May 2016, by section 77(4) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).
Section 22(2)(n): amended (with effect on 1 January 2024), on 28 March 2024, by section 130 of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
Section 22(2) proviso: repealed, on 2 November 2012, by section 171(1)(e) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).
Section 22(2BA): inserted, on 2 November 2012, by section 171(2) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).
Section 22(2BA)(a): amended, on 26 June 2019, by section 92(1) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).
Section 22(2B): inserted (with effect on 1 April 2005), on 3 April 2006 (applying for income years corresponding to 2005–06 and subsequent tax years), by section 211(4) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).
Section 22(2C): inserted, on 1 October 2006, by section 211(5) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).
Section 22(2C): amended, on 1 January 2024, by section 165(5) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 22(3): replaced, on 1 April 2019, by section 15(2) (and see section 15(3) for application) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 22(4)(a): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 22(4)(b): amended, on 1 April 2008 (for a person who is not a limited partner of a limited partnership registered under the Limited Partnerships Act 2008, applying for income years starting on and after 1 April 2008), by section 28(1) of the Taxation (Limited Partnerships) Act 2008 (2008 No 2).
Section 22(4)(c): inserted, on 1 April 2008 (for a person who is not a limited partner of a limited partnership registered under the Limited Partnerships Act 2008, applying for income years starting on and after 1 April 2008), by section 28(1) of the Taxation (Limited Partnerships) Act 2008 (2008 No 2).
Section 22(5): amended (with effect on 1 April 2005), on 1 October 2006, by section 211(7) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).
Section 22(5): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 22(6): amended, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
Section 22(6): amended (with effect on 1 April 2005), on 1 October 2006, by section 211(8)(a) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).
Section 22(6): amended (with effect on 1 April 2005), on 1 October 2006 (applying for income years corresponding to 2005–06 and subsequent tax years), by section 211(8)(b) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).
Section 22(6): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 22(6)(b): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 22(6B): inserted, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
Section 22(7)(c): replaced, on 1 April 2017, by section 302(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section 22(7)(d): inserted, on 1 October 2006, by section 211(9) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).
Section 22(7)(d): amended, on 21 February 2017, by section 10(4) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
Section 22(7)(d)(i): repealed, on 21 February 2017, by section 10(5) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
Section 22(7)(d)(ii): repealed, on 21 February 2017, by section 10(5) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
Section 22(7)(d)(iii)(C): amended, on 19 December 2007 (applying for 2008–09 and later income years), by section 189(6) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 22(7)(e): inserted, on 19 December 2007 (applying for 2008–09 and later income years), by section 189(6) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 22(8): inserted, on 2 November 2012, by section 171(4) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).
Section 22(8): amended, on 2 June 2016, by section 87 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section 22(8)(a)(i): amended, on 26 June 2019, by section 92(2) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).
Section 22(9): inserted, on 2 November 2012, by section 171(4) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).
22AA Records to be kept by employers and PAYE intermediaries
(1)
An employer who makes a PAYE income payment to an employee must keep proper records in English or te reo Maori relating to the payment, the amount of tax withheld for the payment, and the other items of information set out in schedule 3, table 1, as required under this Act, the Child Support Act 1991, the KiwiSaver Act 2006, or the Student Loan Scheme Act 2011.
(2)
A person acting as a PAYE intermediary for an employer must keep proper records relating to their activity as a PAYE intermediary in relation to an employee of the employer.
(3)
An employer or PAYE intermediary must take reasonable steps to ensure the safe-keeping of their records for a period of not less than 7 years after the making of the payments to which the records relate, except to the extent to which—
(a)
the Commissioner has notified the employer or PAYE intermediary that retention is not required; or
(b)
the employer or PAYE intermediary has delivered the records to the Commissioner as required by this Act or the Income Tax Act 2007.
(4)
On application by the person, the Commissioner may authorise the keeping of records under this section in a language other than English or te reo Maori.
Section 22AA: inserted, on 1 April 2019, by section 272 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 22AA(1): amended (with effect on 26 June 2019), on 23 March 2020, by section 194(1) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 22AA(4): amended (with effect on 26 June 2019), on 23 March 2020, by section 194(2) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
22AAB Records to be kept by payers of passive income
(1)
This section applies when a person—
(a)
is liable under the RWT rules to withhold RWT for resident passive income paid to or derived by another person:
(b)
is liable under the NRWT rules to withhold NRWT for non-resident passive income paid to or derived by another person.
(2)
The person must keep proper records in English or te reo Maori relating to the income paid by them, and RWT or NRWT withheld by them, or liable to be withheld by them, sufficient to enable the Commissioner to ascertain readily at any time the information set out in schedule 3, table 2.
(3)
A person referred to in subsections (1) and (2) must take reasonable steps to ensure the safe-keeping of their records for a period of not less than 7 years after the making of the payments to which the records relate, except to the extent to which—
(a)
the Commissioner has notified the person that retention of the records is not required; or
(b)
the records are required by law to be delivered to a person other than the Commissioner; or
(c)
the person is a company that has been liquidated.
(4)
The Commissioner may, before the end of the 7-year period referred to in subsection (3), notify the person that they are required to retain records specified by the Commissioner for a further period of up to 3 years after the end of the 7-year period if—
(a)
the affairs of the person are or have been under audit or investigation by the Commissioner; or
(b)
the affairs of a person to whom the records relate are or have been under audit or investigation by the Commissioner; or
(c)
the Commissioner intends to conduct, or is actively considering, an audit or investigation before the end of the extended retention period.
(5)
On application by the person, the Commissioner may authorise the keeping of records under this section in a language other than English or te reo Maori.
Section 22AAB: inserted, on 1 April 2020, by section 273 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 22AAB(2): amended, on 1 April 2020, by section 195(1) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 22AAB(5): amended, on 1 April 2020, by section 195(2) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
22AAC Keeping of returns where information transmitted electronically
(1)
Where information contained in a taxpayer’s return has been transmitted by electronic means in the prescribed electronic format in accordance with section 36, the taxpayer shall retain or cause to be retained—
(a)
the return in the form of—
(i)
a signed hard-copy transcript of the information transmitted:
(ii)
an electronic form meeting the requirements of section 229 of the Contract and Commercial Law Act 2017; and
(b)
for a period of—
(i)
7 years after the end of the income year to which the return relates; or
(ii)
a greater period that the Commissioner requires under section 22 for other records of the taxpayer, if the Commissioner gives the taxpayer notice of a further retention period under section 22(5).
(2)
This section does not require the retention of—
(a)
a return for which the Commissioner has given notice that retention is not required; or
(b)
a return of a company that has been liquidated; or
(c)
employment income information that has been provided to the Commissioner.
Compare: 1976 No 65 s 428A; 1994 No 76 s 74
Section 22AAC (former section 23): renumbered, on 1 April 2019, by section 17 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 22AAC(1): replaced, on 2 November 2012, by section 172 of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).
Section 22AAC(1)(a)(ii): amended, on 1 September 2017, by section 347 of the Contract and Commercial Law Act 2017 (2017 No 5).
Section 22AAC(2): replaced, on 1 April 2019, by section 274 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
22A Records required under subpart EW of Income Tax Act 2007
(1)
A taxpayer who applies section EW 18 of the Income Tax Act 2007 and who does not use a market approved by the Commissioner under section 90AC(1)(c) must keep, in English or te reo Maori, records sufficient to enable the Commissioner to verify that the market value adopted is reliable.
(2)
A taxpayer who applies section EW 26(2) of the Income Tax Act 2007 must keep, in English or te reo Maori, records sufficient to enable the Commissioner to verify that their reason for changing spreading methods was a sound commercial one.
(3)
A taxpayer required to retain records must—
(a)
take all reasonable precautions for the safe custody of those records; and
(b)
retain those records for 7 years after the end of the year that the records relate to, unless:
(i)
the Commissioner has given notice that retention is not required; or
(ii)
the records are required by law to be given to another person; or
(iii)
the taxpayer is a company that has been liquidated or wound up; and
(c)
retain the records required for a further period as specified by the Commissioner under subsection (4).
(4)
The Commissioner may, by giving notice before the end of the 7-year retention period specified in subsection (3), require a taxpayer to retain records specified by the Commissioner for a further period of not more than 3 years following the expiry of the 7-year period if—
(a)
the taxpayer is or has been under audit or investigation by the Commissioner; or
(b)
the Commissioner intends to conduct an audit or investigation before the expiry of the retention period as extended, or is actively considering an audit or investigation.
Section 22A: inserted, on 20 May 1999 (applying on and after 20 May 1999), by section 63(1) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
Section 22A heading: amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 22A heading: amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 22A(1): amended, on 26 June 2019, by section 93(1) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).
Section 22A(1): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 22A(1): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 22A(2): amended, on 26 June 2019, by section 93(2) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).
Section 22A(2): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 22A(2): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
22B Further records required
(1)
A trustee to whom either section EW 44 or EZ 39 of the Income Tax Act 2007 applies must keep, in English or te reo Maori, records of—
(a)
the amounts of debt forgiven by creditors; and
(b)
amounts distributed to the trust’s beneficiaries.
(2)
A trustee required to retain records must—
(a)
take all reasonable precautions for the safe custody of those records; and
(b)
retain those records for as long as the trust exists.
Section 22B: inserted, on 20 May 1999 (applying on and after 20 May 1999), by section 63(1) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
Section 22B heading: amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 22B(1): amended, on 26 June 2019, by section 94 of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).
Section 22B(1): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Subpart 3B—Reporting of income information by individuals
Subpart 3B: inserted, on 1 April 2019, by section 16(1) (and see section 16(2) for application) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
22C Outline of subpart
What this subpart does
(1)
This subpart provides the administrative settings that underpin an individual’s obligations under sections BB 2, BC 1 to BC 8 of the Income Tax Act 2007 to calculate and satisfy their income tax liability for a tax year. It sets out the requirements for the provision of information about an individual’s income, including—
(a)
the obligations of individuals to provide certain income information to the Commissioner:
(b)
what is meant by certain key terms such as reportable income, other income, pre-populated account, and final account:
(c)
when and how information must be provided to the Commissioner:
(d)
the treatment of an individual’s final account at the end of a tax year:
(e)
when and how an individual’s assessment is made:
(f)
when certain amounts of tax payable may be written off:
(g)
how reporting errors in accounts may be corrected:
(h)
the permitted de minimis amounts:
(i)
the information particulars.
Income types
(2)
For the purposes of this Act and the Income Tax Act 2007, income that an individual derives for a tax year is categorised as either—
(a)
their reportable income; or
(b)
their other income.
Relationship with other provisions
(3)
For the provisions related to—
(a)
returns of income, see sections 33 and 37:
(b)
returns related to family assistance credits, see section 41:
(c)
donations tax credits, see section 41A:
(d)
disputes, see Part 4A:
(e)
assessments, see sections 92, 106, and 113:
(f)
late filing penalties, see section 139A.
Flowchart 1: Scheme of subpart 3B
Section 22C: inserted, on 1 April 2019, by section 16(1) (and see section 16(2) for application) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 22C(1): amended, on 1 April 2020, by section 196 of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 22C(3)(d): amended, on 30 March 2025, by section 153 of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
22D Key terms
Meaning of individual
(1)
For the purposes of this subpart and sections 4A, 22, 33, 37, 42C, 89D, 92, 106, 110, 142AC, 143, and 227G, and schedule 8, individual—
(a)
means a natural person; and
(b)
includes a natural person who is non-resident, other than a person whose only income for the corresponding income year is non-residents’ foreign-sourced income; and
(c)
excludes, from the date of their death, a deceased natural person.
Meaning of qualifying individual
(2)
For the purposes of this subpart and sections 22, 38, 89C, and 120C, definition of date interest starts, paragraph (a), and schedule 8, qualifying individual means—
(a)
an individual who derives only reportable income for an income year; and
(b)
has no other income information that must be provided to the Commissioner under this subpart for the income year.
Meaning of reportable income
(3)
For the purposes of this Act and the Income Tax Act 2007, reportable income, for an individual and a tax year, means an amount of income paid or payable to the individual for the corresponding income year—
(a)
that is—
(i)
a PAYE income payment:
(ii)
a payment of resident passive income:
(iii)
a payment of non-resident passive income:
(iiib)
a payment under the wage subsidy scheme defined in section 7AA(6):
(iiic)
a payment under the leave support scheme made by the Ministry of Social Development on behalf of the Crown in relation to leave taken as a consequence of COVID-19:
(iiid)
a payment under the short-term absence scheme made by the Ministry of Social Development on behalf of the Crown in relation to absence from work as a consequence of COVID-19:
(iv)
a benefit under an employee share scheme described in schedule 4, table 1, rows 4 and 7:
(v)
attributed PIE income; and
(b)
for which the person paying the amount has been provided the individual’s tax file number, however this requirement does not apply if the amount is income derived jointly with another person and the Commissioner is able to allocate an amount to the individual for the income year; and
(c)
in relation to which information must be provided under this Act to the Commissioner by—
(i)
for the items referred to in paragraph (a)(i) to (iv), 31 May in the next tax year:
(ii)
for the item referred to in paragraph (a)(v), the date referred to in section 25K.
Meaning of other income
(4)
For the purposes of this subpart and section 141JA and schedule 8, other income or income other than reportable income, for an individual and a tax year, means an amount of income paid or payable to, or treated as income of, the individual for the corresponding income year that is not their reportable income.
Meaning of pre-populated account
(5)
For the purposes of this subpart, and sections 4A, 106, 142AC, and CX 27 of the Income Tax Act 2007, a pre-populated account, for an individual and a tax year, means the account—
(a)
provided by the Commissioner for the tax year; and
(b)
containing the income information held by the Commissioner, including any income information provided by the individual, quantifying—
(i)
the amount of reportable income derived for the corresponding income year; and
(ii)
any other amount that the Commissioner considers the individual has derived for the income year.
Meaning of final account
(6)
For the purposes of this subpart, and sections 4A, 33, 37, 38, 42C, 89D, 106, 110, and 143, a final account, for an individual and a tax year, means a pre-populated account finalised under section 22H.
Section 22D: inserted, on 1 April 2019, by section 16(1) (and see section 16(2) for application) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 22D(1): amended (with effect on 1 April 2019), on 28 March 2024, by section 131(1) (and see section 131(3) for application) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
Section 22D(1): amended, on 1 April 2020, by section 197(1) (and see section 197(7) for application) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 22D(2): amended (with effect on 1 April 2019), on 28 March 2024, by section 131(2) (and see section 131(3) for application) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
Section 22D(3)(a)(iiib): inserted (with effect on 1 April 2021), on 30 March 2022, by section 188(1) (and see section 188(2) for application) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section 22D(3)(a)(iiic): inserted (with effect on 1 April 2021), on 30 March 2022, by section 188(1) (and see section 188(2) for application) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section 22D(3)(a)(iiid): inserted (with effect on 1 April 2021), on 30 March 2022, by section 188(1) (and see section 188(2) for application) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section 22D(3)(a)(iv): amended, on 1 April 2020, by section 197(2) (and see section 197(8) for application) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 22D(3)(a)(v): inserted, on 1 April 2020, by section 197(3) (and see section 197(8) for application) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 22D(3)(c): replaced, on 1 April 2020, by section 197(4) (and see section 197(8) for application) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 22D(5): amended, on 1 April 2020, by section 197(6) (and see section 197(7) for application) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 22D(5): amended, on 23 March 2020, by section 197(5) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
22E Information included in pre-populated accounts
Pre-populated accounts
(1)
The Commissioner must include in an individual’s pre-populated account for a tax year—
(a)
all the income information held by the Commissioner for the tax year relating to an amount of reportable income derived for the corresponding income year; and
(b)
all the income information on other amounts that the Commissioner considers the individual has derived for the income year, including any income information provided by the individual.
Limits
(2)
Subsection (1) applies only to the extent to which the information—
(a)
is available; and
(b)
is relevant for the individual in making an assessment for the tax year.
Accounts with zero balance
(3)
An individual who has no reportable income for a tax year may ask the Commissioner to make available a pre-populated account with a zero balance in order that they may provide their income information for the tax year.
Section 22E: inserted, on 1 April 2019, by section 16(1) (and see section 16(2) for application) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
22F Information requirements
Obligations for information on other income
(1)
Subject to section 22K(1), an individual must provide information to the Commissioner for a tax year on the total amount of assessable income that they derive for the corresponding income year to the extent to which the amount is not reportable income, see schedule 8, part A, table 1.
Obligations for reportable income information
(2)
No obligation to provide information for a tax year arises in relation to an amount of reportable income that is not included in an individual’s pre-populated account for the tax year unless the individual knows, or might reasonably be expected to have known, that the amount should properly be included in their final account for the tax year.
Additional amounts
(3)
An individual may provide information for a tax year on an amount set out in schedule 8, part A, table 2.
Benefits under employee share schemes
(4)
Subsection (1) does not apply to an amount of income that is a benefit that a person receives under an employee share scheme to the extent to which their employer has included information relating to the benefit in their employment income information under section 23K and schedule 4, table 1, rows 4 and 7.
Information provided on behalf of deceased individuals
(5)
In order to finalise the account of a deceased individual under section 22H, the Commissioner may allow a person appearing on the list described in subsection (6) to provide, to the best of their knowledge, income information on behalf of the deceased individual.
List of classes of persons
(6)
The Commissioner must publish a list of the classes of persons who are considered likely to have a relationship with a deceased individual and that the Commissioner considers may be the sort of person who is best placed to provide income information on behalf of a deceased individual.
Section 22F: inserted, on 1 April 2019, by section 16(1) (and see section 16(2) for application) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
22G Amending accounts for incorrect or missing information
When this section applies
(1)
This section applies for an individual and a tax year when incorrect information relating to the individual has been provided to the Commissioner, or information relating to the individual is missing.
Correction of pre-assessment errors by individuals
(2)
An individual may amend income information in their pre-populated account at any time before the account is finalised under section 22H.
Correction of post-assessment errors by qualifying individuals
(3)
Despite subsection (2), a qualifying individual, or an individual who is treated as a qualifying individual, may amend the income information in their final account at any time before their terminal tax date for the tax year. Any earlier assessment for the tax year is regarded as not having been made.
When amended information incorrect
(4)
Subsection (3) does not apply if the Commissioner has reason to believe that the amended information is incorrect. The Commissioner may decide not to accept all the information as correct and provide an assessment for the individual under section 106.
Correction of pre-assessment errors by Commissioner
(5)
The Commissioner may amend information in the individual’s pre-populated account for the tax year to correct errors in the information. The Commissioner must notify the individual of the amendment.
Correction of post-assessment errors by Commissioner: qualifying individuals
(6)
The Commissioner may amend information in a qualifying individual’s final account for the tax year to correct errors in the information at any time before the end of the period referred to in section 108(1), notifying the individual of the amendment.
Correction of post-assessment errors by Commissioner: other individuals
(7)
If the Commissioner wishes to make an adjustment in relation to the information of an individual other than a qualifying individual, the Commissioner must issue a notice of proposed adjustment under section 89B subject to the exceptions set out in section 89C.
Later requests for changes by individuals
(8)
After their terminal tax date, an individual may ask the Commissioner to amend information in their final account for the tax year under section 113.
Section 22G: inserted, on 1 April 2019, by section 16(1) (and see section 16(2) for application) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
22H Finalising accounts
Pre-populated accounts: qualifying individuals
(1)
If the Commissioner is satisfied that the income information of a qualifying individual for a tax year as set out in their pre-populated account correctly and completely records their income for the corresponding income year, the Commissioner may finalise the individual’s account for the tax year.
Pre-populated accounts: other individuals
(2)
An individual other than a qualifying individual may—
(a)
adjust their pre-populated account for the tax year by providing the income information required under section 22F(1) in relation to their other income; and
(b)
correct any errors in their reportable income information; and
(c)
finalise the account by confirming that the income information in the account as adjusted correctly and completely records their income for the corresponding income year.
Requests for information from qualifying individuals
(3)
If the Commissioner requests income information from a qualifying individual in relation to their pre-populated account, the individual may—
(a)
correct any errors in their reportable income information; and
(b)
finalise the account by confirming that the income information in the account as adjusted correctly and completely records their income for the corresponding income year.
Due dates
(4)
The adjustment, correction, or confirmation is due to be made by—
(a)
the date set out in section 37(1):
(b)
for an individual who has, under section 37(3) to (5), an extension of time to file a return of income, by the later date in the next tax year.
Section 22H: inserted, on 1 April 2019, by section 16(1) (and see section 16(2) for application) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 22H(2): amended (with effect on 1 April 2019), on 23 March 2020, by section 198(1) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 22H(4): amended (with effect on 1 April 2019), on 23 March 2020, by section 198(2) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 22H(4)(a): replaced (with effect on 1 April 2019), on 28 March 2024, by section 132(1) (and see section 132(2) for application) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
22I Returns and assessments
Final account treated as return of income and assessment
(1)
In relation to their final account for a tax year, an individual is treated as having made—
(a)
a return of income for the tax year under section 33; and
(b)
an assessment under section 92 in relation to the return referred to in paragraph (a); and
(c)
a statement of a taxpayer’s tax position for the tax year, unless the individual asks the Commissioner under section 22G(8) for an amendment to be made to the information in their final account.
Date of assessment
(2)
For the purposes of subsection (1)(b), the date on which an assessment is treated as being made is the date on which an individual’s pre-populated account for the tax year is finalised under section 22H.
Date of default assessment
(3)
If an individual does not satisfy the Commissioner that the income information in their pre-populated account for the tax year correctly and completely records their income for the corresponding income year, the date on which the assessment is treated as being made is the date on which the Commissioner provides a default assessment under section 106.
Notification requirements
(4)
The Commissioner must notify an individual affected when an assessment is treated as having been made under subsection (2) or (3).
Section 22I: inserted, on 1 April 2019, by section 16(1) (and see section 16(2) for application) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
22J Commissioner’s power in relation to certain amounts of tax payable
When amounts written off
(1)
For the purposes of this subpart, the Commissioner may write off an amount of tax payable by a qualifying individual for a tax year if the requirements of schedule 8, part B are met.
Reversing write offs
(2)
The Commissioner may reverse a write off made under this section if, for the tax year and the individual,—
(a)
it is established through a reassessment that the requirements of schedule 8, part B are not met:
(b)
during the tax year, the individual ceases to be a qualifying individual.
Order in Council amending schedule 8
(3)
The Governor-General may, by Order in Council made on the recommendation of the Minister, amend schedule 8 by—
(a)
adding an item of information to, or omitting an item of information from, part A, table 1 or table 2:
(b)
adding an amount of tax to, or omitting an amount of tax from, part B, clause 1:
(c)
adding a type of income to, or omitting a type of income from, part B, clause 2.
(3B)
An order under this section is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).
Consultation
(4)
Before the Minister makes a recommendation under subsection (3), a consultative process must be undertaken that includes the distribution of the proposed amendments to schedule 8 to persons or representatives of persons that it is considered reasonable to consult for the purposes of this section.
Flowchart 2: Process for writing off amounts of tax to pay
| Legislation Act 2019 requirements for secondary legislation made under this section | ||||
| Publication | PCO must publish it on the legislation website and notify it in the Gazette | LA19 s 69(1)(c) | ||
| Presentation | The Minister must present it to the House of Representatives | LA19 s 114, Sch 1 cl 32(1)(a) | ||
| Disallowance | It may be disallowed by the House of Representatives | LA19 ss 115, 116 | ||
| This note is not part of the Act. | ||||
Section 22J: inserted, on 1 April 2019, by section 16(1) (and see section 16(2) for application) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 22J(3B): inserted, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
22K No obligation to provide information: de minimis and certain other amounts
Small amounts of income
(1)
No obligation to provide information for a tax year arises if an individual derives income other than reportable income for the corresponding income year of $200 or less.
Other specific provisions may override this section
(2)
A specific provision in an Inland Revenue Act requiring an individual to provide information in a particular circumstance overrides this section.
Section 22K: inserted, on 1 April 2019, by section 16(1) (and see section 16(2) for application) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
22L Information particulars
Items of other income
(1)
The items of information related to amounts of an individual’s income other than reportable income are set out in the table in schedule 8, part A, table 1.
What may be included in information
(2)
The information may include information on the items set out in schedule 8, part A, table 2.
Section 22L: inserted, on 1 April 2019, by section 16(1) (and see section 16(2) for application) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
22M Setting electronic and non-electronic requirements
Prescribing forms for, and means and modes of, delivery
(1)
For the delivery of information on an individual’s income other than reportable income, the Commissioner must prescribe—
(a)
an electronic form and means of electronic communication:
(b)
a form or mode of delivery other than by electronic means.
Particular requirements and conditions
(2)
The requirements relating to a form, means, or mode of communication may relate to an individual, a class of individuals, or all individuals, and may be subject to the conditions specified by the Commissioner, whether generally or in a specific case.
Section 22M: inserted, on 1 April 2019, by section 16(1) (and see section 16(2) for application) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Subpart 3C—Employment income information
Subpart 3C: inserted, on 1 April 2019, by section 275 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
23B Employment income information: outline of provisions
What this subpart does
(1)
This subpart sets out—
(a)
what is meant by employment income information for reporting purposes:
(b)
when employment income information must be provided to the Commissioner and how it must be delivered:
(c)
the information that must be provided for new and departing employees:
(d)
the rules for the correction of errors.
PAYE intermediary included
(2)
For the purposes of this subpart, an employer includes a PAYE intermediary, as the context requires.
Related provisions
(3)
For the provisions related to—
(a)
the making of regulations, see section RA 21 of the Income Tax Act 2007:
(b)
late filing penalties, see section 139A:
(c)
non-electronic filing penalties, see section 139AA:
(d)
employers’ withholding payment penalties, see section 141ED:
(e)
the application of the penalties provisions to PAYE intermediaries, see section 141JB:
(f)
the recovery of tax from employers or PAYE intermediaries, see sections 167 to 169.
Section 23B: inserted, on 1 April 2019, by section 275 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 23B(1) heading: inserted, on 1 April 2019, by section 18 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 23B(2) heading: inserted, on 1 April 2019, by section 18 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 23B(3) heading: inserted, on 1 April 2019, by section 18 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
23C Meaning of employment income information
Meaning of employment income information
(1)
Employment income information, for the purposes of the Inland Revenue Acts, means the items of information that are listed in schedule 4, tables 1 to 3, as applicable, and that—
(a)
an employer to whom section RD 22 of the Income Tax Act 2007 applies, must provide to the Commissioner under sections 23E to 23M; or
(b)
an employee to whom section RD 4(4) of that Act applies, must provide to the Commissioner under section 23I.
Prescribing forms and means for delivery
(2)
The Commissioner must prescribe 1 or more electronic forms and 1 or more means of electronic communication by which employment income information must be delivered by an employer for the purposes of this subpart.
Requirements
(3)
The requirements relating to a form or a means of communication may relate to an employer or a class of employers, and may be subject to the conditions specified by the Commissioner, whether generally or in a specific case.
Requirements for twice-monthly delivery
(4)
For the purposes of the delivery of employment income information, a requirement to deliver the information twice-monthly means that, in determining the date on which the information may be delivered, a payment or benefit is treated as being paid or received on a day in or, at the latest, by the last day of—
(a)
the first payment period in a month when the relevant day falls in the period that starts on the 1st day of the month and ends on the 15th day of the month; or
(b)
the second payment period in a month when the relevant day falls in the period that starts on the 16th day of the month and ends on the last day of the month.
Section 23C: inserted, on 1 April 2019, by section 275 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 23C(1) heading: inserted, on 1 April 2019, by section 18 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 23C(1)(a): amended, on 1 April 2019, by section 19 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 23C(2) heading: inserted, on 1 April 2019, by section 18 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 23C(3) heading: inserted, on 1 April 2019, by section 18 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 23C(4) heading: inserted, on 1 April 2019, by section 18 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 23C(4)(a): amended (with effect on 1 April 2019), on 26 June 2019, by section 95(1) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).
Section 23C(4)(b): amended (with effect on 1 April 2019), on 26 June 2019, by section 95(2) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).
23D Employers’ groups for delivery of information
Groups
(1)
For the delivery of employment income information to the Commissioner, an employer is included in 1 of the following groups of employer, according to the circumstances applying to the employer:
(a)
the online group; or
(b)
the non-electronic group, if they meet the requirements of section 23F or have an exemption under section 23G; or
(c)
the new group, if they meet the requirements of section 23H.
Inclusions in online group
(2)
For the delivery of employment income information,—
(a)
a PAYE intermediary is included in the online group:
(b)
an employer who delivers employment income information electronically, whether through a service or platform provided by the Commissioner or through the use of payroll software, is included in the online group.
Delivery before specified date
(3)
Despite sections 23E to 23H and 23L, an employer may deliver their employment income information at any time before the dates set out in those sections.
Approval to deliver information in other ways
(4)
Despite subsections (1) and (2) and the means of delivery set out in sections 23E to 23H, 23J, and 23K, an employer may ask the Commissioner for approval to deliver employment income information in another way. For this purpose, the Commissioner may—
(a)
give consent with terms and conditions:
(b)
vary the terms and conditions:
(c)
cancel the consent at any time.
Section 23D: inserted, on 1 April 2019, by section 275 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 23D(1) heading: inserted, on 1 April 2019, by section 18 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 23D(2) heading: inserted, on 1 April 2019, by section 18 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 23D(3) heading: inserted, on 1 April 2019, by section 18 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 23D(4) heading: inserted, on 1 April 2019, by section 18 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 23D(4): amended, on 1 April 2019, by section 20 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
23E Online group of employers
Online group
(1)
An employer is included in the online group if the employer is not included in—
(a)
the non-electronic group; or
(b)
the new group.
Delivery of information
(2)
An employer in the online group must deliver their employment income information for a payday—
(a)
in electronic form and by means of an electronic communication as prescribed by the Commissioner; and
(b)
within 2 working days after payday.
Section 23E: inserted, on 1 April 2019, by section 275 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 23E(1) heading: inserted, on 1 April 2019, by section 18 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 23E(2) heading: inserted, on 1 April 2019, by section 18 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
23F Non-electronic group of employers
Non-electronic group
(1)
An employer is included in the non-electronic group if the employer—
(a)
meets either of the requirements set out in subsection (5) or has an exemption under section 23G; and
(b)
does not deliver their employment income information electronically, whether through a service or platform provided by the Commissioner or through the use of payroll software; and
(c)
is not included in the new group.
Delivery of information
(2)
An employer in the non-electronic group must deliver their employment income information for a payday—
(a)
in a format prescribed by the Commissioner; and
(b)
within 10 working days after payday.
Elections for other dates
(3)
For the purposes of subsection (2)(b), an employer in the non-electronic group may choose to treat the payday as—
(a)
the day on which the employer makes a PAYE income payment to an employee; or
(b)
1 of the following, as applicable:
(i)
for an amount paid or benefit provided in the period that starts on the 1st day of a month and ends on the 15th day of the month, the 15th of the month; and
(ii)
for an amount paid or benefit provided in the period that starts on the 16th day of the month and ends on the last day of the month, the last day of the month.
Delivery for twice-monthly option
(4)
An employer who chooses to use, as a payday, a day referred to in subsection (3)(b)(i) or (ii), must deliver the employment income information set out in schedule 4, table 1, rows 4 to 6 for each payment made or benefit provided in the relevant period.
Requirements
(5)
The requirements are that, for a tax year and an amount of tax for a PAYE income payment and an employer’s superannuation cash contribution,—
(a)
an employer other than an employer referred to in paragraph (b), must have gross amounts of tax payable for the preceding tax year that are below the threshold amount:
(b)
a new employer must have total accumulated amounts of tax that are below the threshold amount.
Threshold amount
(6)
The threshold amount referred to in subsection (5) is—
(a)
$50,000; or
(b)
the amount set by the Governor-General by Order in Council under subsection (8).
When threshold reached
(7)
If the accumulated amount referred to in subsection (5)(b) reaches the threshold amount during a tax year, the employer is included in the new group for the remaining months of the 6-month period referred to in section 23H(2) and, following that period, is included in the online group of employers.
Orders in Council setting amount
(8)
The Governor-General may, on the recommendation of the Minister of Revenue, make an Order in Council setting or amending the threshold amount referred to in subsection (6)(b). Before making the recommendation, the Minister must undertake consultation on the proposed amendment that is appropriate and reasonable for the purposes of this section.
Section 23F: inserted, on 1 April 2019, by section 275 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 23F(1) heading: inserted, on 1 April 2019, by section 18 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 23F(2) heading: inserted, on 1 April 2019, by section 18 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 23F(3) heading: inserted, on 1 April 2019, by section 18 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 23F(3)(b)(i): amended (with effect on 1 April 2019), on 26 June 2019, by section 96(1) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).
Section 23F(3)(b)(ii): amended (with effect on 1 April 2019), on 26 June 2019, by section 96(2) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).
Section 23F(4) heading: inserted, on 1 April 2019, by section 18 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 23F(5) heading: inserted, on 1 April 2019, by section 18 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 23F(6) heading: inserted, on 1 April 2019, by section 18 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 23F(7) heading: inserted, on 1 April 2019, by section 18 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 23F(8) heading: inserted, on 1 April 2019, by section 18 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
23G Exemption for certain employers in online group
Exemption
(1)
The Commissioner may exempt an employer in the online group from the online group requirements if it is reasonable in the circumstances, taking into account—
(a)
the nature and availability of digital services to the employer, including the reliability of those services for the purposes of the employer; and
(b)
the capability of the employer relating to the use of computers; and
(c)
the costs that the employer would incur in complying with the requirements if those costs would be unreasonable in the circumstances.
Statement of reasons
(2)
The Commissioner must provide a statement of reasons for the exemption.
Valid until cancellation
(3)
Subject to subsection (4), an exemption under this section remains valid until the Commissioner notifies the employer that the exemption is to be cancelled. The exemption expires on the date that is 6 months after that given in the Commissioner’s notice.
Time limits
(4)
In making an exemption under this section, the Commissioner may set a time limit on the exemption, stating a start date and an end date, as applicable, for the exemption and the reason for setting the limit.
(5)
[Repealed]Section 23G: inserted, on 1 April 2019, by section 275 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 23G(1) heading: inserted, on 1 April 2019, by section 18 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 23G(2) heading: inserted, on 1 April 2019, by section 18 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 23G(3) heading: inserted, on 1 April 2019, by section 18 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 23G(4) heading: inserted, on 1 April 2019, by section 18 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 23G(5) heading: repealed, on 28 October 2021, pursuant to section 3 of the Secondary Legislation Act 2021 (2021 No 7).
Section 23G(5): repealed, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
23H New group of employers
New group
(1)
An employer is included in the new group if the employer becomes an employer in a tax year.
New-employer period
(2)
The new-employer period is the 6-month period that starts on the date in the tax year on which the employer starts employing employees.
Delivery of information
(3)
An employer in the new group may choose to deliver their employment income information for a payday in the new-employer period—
(a)
in a format prescribed by the Commissioner; and
(b)
within 10 working days after payday.
Elections for other dates
(4)
Despite subsection (3)(b), if an employer in the new group meets the requirements of section 23F(1)(a) and (b), they may choose to treat a payday in the way described in section 23F(3) and (4).
When information delivered electronically
(5)
If an employer in the new group chooses to deliver their employment income information electronically, whether through a service or platform provided by the Commissioner or through the use of payroll software, the employer is immediately included in the online group.
Section 23H: inserted, on 1 April 2019, by section 275 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 23H(1) heading: inserted, on 1 April 2019, by section 18 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 23H(2) heading: inserted, on 1 April 2019, by section 18 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 23H(3) heading: inserted, on 1 April 2019, by section 18 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 23H(4) heading: inserted, on 1 April 2019, by section 18 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 23H(5) heading: inserted, on 1 April 2019, by section 18 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
23I Employment income information requirements for employees
An employee who is required to provide employment income information relating to employment-related tax obligations as if an employer under section CE 1F(3) of the Income Tax Act 2007 must deliver the information in the prescribed format within 10 working days after the end of the month in which the payment is made.
Section 23I: inserted, on 1 April 2019, by section 275 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 23I: amended, on 1 April 2023, by section 166 of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
23IB Employment income information requirements in relation to certain cross-border employees
A person that is required to provide employment income information relating to a PAYE income payment to the Commissioner under section RA 15(4B) of the Income Tax Act 2007 must deliver the information in the prescribed format by 31 May after the end of the tax year.
Section 23IB: inserted, on 1 April 2024, by section 167 of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
23J Delivery of employment income information for certain special payments
What this section applies to
(1)
This section applies for the purposes of sections 23E to 23H in relation to—
(a)
a schedular payment described in section RD 8 of the Income Tax Act 2007:
(b)
a payment made to a person on a shadow payroll:
(c)
a payment that an employer makes to an employee outside the regular payment cycle for the employee’s employment income.
Schedular payments
(2)
For a schedular payment referred to in subsection (1)(a), an employer may deliver their employment income information relating to the payment either—
(a)
on a payday basis under sections 23E to 23H, as applicable; or
(b)
twice-monthly as described in section 23C(4), treating the payday as the relevant day.
Shadow payrolls
(3)
For a payment referred to in subsection (1)(b), a non-resident employer has 20 days after an amount is paid to the person before the requirement to provide employment income information arises. The employer may—
(a)
treat the 20th day as the payday for the purposes of sections 23E to 23H, as applicable; or
(b)
provide their employment income information relating to the payment twice-monthly as described in section 23C(4), treating the 20th day as the relevant day.
Out-of-cycle payments
(4)
For an out-of-cycle payment referred to in subsection (1)(c), an employer may deliver their employment income information relating to the payment either—
(a)
on a payday basis under sections 23E to 23H, as applicable; or
(b)
together with their information for the employer’s next regular reporting date for the delivery of information relating to the employee.
When reporting date falls after end date
(5)
Despite subsection (4), if the next regular reporting date referred to in subsection (4)(b) falls after the employer’s end date for the payment, as described in section RA 15(3)(a) and (b) of the Income Tax Act 2007, and would mean that, for reconciliation purposes, the information relating to the payment and the employee would appear to be reported as if the payment related to a later period, the employer must treat the payment as if it were made on a date that is not later than the end date.
Treatment of shadow payroll payments
(6)
For the purposes of subsection (1)(b), a payment made to a person on a shadow payroll is a PAYE income payment paid by a non-resident employer to a person who undertakes employment services in New Zealand but who remains on the employer’s payroll system in a country or territory outside New Zealand.
Relationship with section 23F
(7)
Section 23F(3)(b) and (4) overrides this section.
Section 23J: inserted, on 1 April 2019, by section 275 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 23J(1) heading: inserted, on 1 April 2019, by section 18 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 23J(2) heading: inserted, on 1 April 2019, by section 18 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 23J(3) heading: inserted, on 1 April 2019, by section 18 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 23J(4) heading: inserted, on 1 April 2019, by section 18 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 23J(5) heading: inserted, on 1 April 2019, by section 18 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 23J(6) heading: inserted, on 1 April 2019, by section 18 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 23J(7) heading: inserted, on 1 April 2019, by section 18 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
23K Employment income information requirements relating to employee share schemes
When information required
(1)
For the purposes of sections 23E to 23H and a benefit under an employee share scheme, the employer may—
(a)
treat the ESS deferral date as the payday; or
(b)
provide their employment income information twice-monthly as described in section 23C(4), treating the ESS deferral date as the relevant day.
Inclusions and exclusions
(2)
For reporting purposes,—
(a)
employment income information does not include information on—
(i)
a benefit under an employee share scheme received by a former employee if the employer has not chosen to withhold an amount of tax in relation to the benefit:
(ii)
a benefit arising under an exempt ESS:
(b)
for a benefit that an employee receives under an employee share scheme, employment income information includes the value of the benefit, and if the employer has chosen under section RD 7B of the Income Tax Act 2007 to withhold an amount of tax for the benefit, the amount of tax withheld.
Section 23K: inserted, on 1 April 2019, by section 275 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 23K(1) heading: inserted, on 1 April 2019, by section 18 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 23K(2) heading: inserted, on 1 April 2019, by section 18 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
23L Employment income information for new and departing employees
Employees starting employment
(1)
When an employee starts employment with an employer, the employer must provide the information referred to in schedule 4, table 2 to the Commissioner.
Employees ending employment
(2)
When an employee’s employment ends, the employer must provide the information referred to in schedule 4, table 3 to the Commissioner.
Delivery for new employees
(3)
The information referred to in subsection (1) about new employees must be delivered to the Commissioner by the date on which the employer is required to deliver employment information for the employee’s first payday or, if the employer chooses, at an earlier time.
Delivery for departing employees
(4)
The information referred to in subsection (2) about departing employees must be delivered to the Commissioner by the date on which the employer is required to deliver employment income information for the payday on which the employee was last paid or, if the employer chooses, at an earlier time.
Additional information required
(5)
Despite subsections (1) to (4), if information about the relevant employee is delivered to the Commissioner as part of electronic payday reporting that includes income information about the employee, the only additional information required from the employer is,—
(a)
for a new employee, schedule 4, table 2, rows 5, 6, 7, and 10:
(b)
for a departing employee, schedule 4, table 3, row 5.
Inclusion as employees
(6)
In this section, employee includes a person who receives or is entitled to receive a payment that would, but for section RD 3B or RD 3C of the Income Tax Act 2007, be a PAYE income payment.
Section 23L: inserted, on 1 April 2019, by section 275 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 23L(1) heading: inserted, on 1 April 2019, by section 18 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 23L(2) heading: inserted, on 1 April 2019, by section 18 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 23L(3) heading: inserted, on 1 April 2019, by section 18 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 23L(4) heading: inserted, on 1 April 2019, by section 18 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 23L(5) heading: inserted, on 1 April 2019, by section 18 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 23L(6) heading: inserted, on 1 April 2019, by section 18 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
23M Employment income information when employment ended
An employer who stops employing employees, intending that the cessation is permanent, must notify the Commissioner that employment has ended within 30 working days after the date on which they stop employing employees.
Section 23M: inserted, on 1 April 2019, by section 275 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
23N Correction of errors
What this section does
(1)
This section provides a regulation-making power for matters relating to the correction of errors in employment income information and the manner in which corrections may be made.
Regulations
(2)
The Governor-General may, by Order in Council on the recommendation of the Minister of Revenue, make regulations, providing—
(a)
the nature and type of errors that are able to be corrected by an employer:
(b)
the manner in which errors in employment income information may be corrected, and the specifications for the correction of particular errors in employment income information:
(c)
the periods to which corrections may relate, including past periods and future periods.
Consultation
(3)
Before making a recommendation under subsection (2), the Minister must undertake consultation on the proposed regulation that is appropriate and reasonable for the purposes of this section.
Secondary legislation
(4)
Regulations under this section are secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).
| Legislation Act 2019 requirements for secondary legislation made under this section | ||||
| Publication | PCO must publish it on the legislation website and notify it in the Gazette | LA19 s 69(1)(c) | ||
| Presentation | The Minister must present it to the House of Representatives | LA19 s 114, Sch 1 cl 32(1)(a) | ||
| Disallowance | It may be disallowed by the House of Representatives | LA19 ss 115, 116 | ||
| This note is not part of the Act. | ||||
Section 23N: inserted, on 1 April 2019, by section 275 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 23N(1) heading: inserted, on 1 April 2019, by section 18 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 23N(2) heading: inserted, on 1 April 2019, by section 18 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 23N(3) heading: inserted, on 1 April 2019, by section 18 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 23N(4) heading: inserted, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
Section 23N(4): inserted, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
23O Setting electronic and non-electronic filing requirements
Prescribing means for delivery
(1)
For the delivery of employment income information by an employer or a class of employers, the Commissioner—
(a)
must prescribe—
(i)
an electronic form and means of electronic communication:
(ii)
a form or mode of delivery other than by electronic means:
(b)
may from time to time set specifications for payroll software for use in the delivery of that information.
Processing requirements
(2)
To enable the processing of a payment made to the Commissioner by an employer in relation to an employee, the Commissioner may notify an employer, or a class of employers, that certain items of employment income information must accompany the payment.
Section 23O: inserted, on 1 April 2019, by section 275 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 23O(1) heading: inserted, on 1 April 2019, by section 18 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 23O(2) heading: inserted, on 1 April 2019, by section 18 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
23P Employment income information: payroll software
For the purposes of sections 23H(5) and 23O, payroll software means a commercially available payroll system or service, or another bespoke equivalent, that enables the calculation of amounts of salary or wages and amounts that are required to be withheld under the PAYE rules.
Section 23P: inserted, on 1 April 2019, by section 275 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
23Q Employment income information: variation of requirements
Commissioner’s power to vary
(1)
The Commissioner may vary the requirements set out in this subpart and schedule 4 for an employer or a class of employers, and the requirements apply as varied.
Secondary legislation
(2)
A variation under this section is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).
| Legislation Act 2019 requirements for secondary legislation made under this section | ||||
| Publication | It is not required to be published | LA19 s 73(2) | ||
| Presentation | It is not required to be presented to the House of Representatives because a transitional exemption applies under Schedule 1 of the Legislation Act 2019 | LA19 s 114, Sch 1 cl 32(1)(a) | ||
| Disallowance | It may be disallowed by the House of Representatives | LA19 ss 115, 116 | ||
| This note is not part of the Act. | ||||
Section 23Q: replaced, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
Other obligations to keep and provide records[Repealed]
Heading: repealed, on 1 April 2019, by section 276 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
24 Records to be kept by employer or PAYE intermediary
[Repealed]Section 24: repealed, on 1 April 2019, by section 276 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Offshore persons’ bank accounts and tax file numbers[Repealed]
Heading: repealed, on 29 March 2018, by section 277 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
24BA Offshore persons’ bank accounts and tax file numbers
[Repealed]Section 24BA: repealed, on 29 March 2018, by section 277 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Subpart 3D—Tax codes and tax rates for certain payments
Subpart 3D heading: inserted, on 1 April 2019, by section 279 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
PAYE tax codes[Repealed]
Heading: repealed, on 1 April 2019, by section 279 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
24B PAYE tax codes
Meaning of tax code
(1)
For the purposes of the PAYE rules, a tax code means—
(a)
a code applying to an employee’s earnings set out in the table in schedule 5, part A as notified by the employee under section 24C:
(b)
a tax code provided by the Commissioner under section 24D:
(c)
a tax code provided under schedule 5, part B, clause 3:
(d)
a non-notified tax code under section 24E.
What tax codes do not apply to
(2)
A tax code does not apply in relation to—
(a)
a schedular payment, see sections 24F, 24G, and 24H, and schedule 5, part C:
(b)
an extra pay, see sections RD 7 and RD 17 of the Income Tax Act 2007.
Main benefits, New Zealand superannuation, and veteran’s pension
(3)
The amount of tax for a payment of any of the following is determined under section RD 11(3) of the Income Tax Act 2007:
(a)
a main benefit:
(b)
New Zealand superannuation:
(c)
a veteran’s pension.
Education allowances
(3B)
The amount of tax for a payment of an allowance under regulations made under section 645 of the Education and Training Act 2020 is determined under section RD 11(3B) of the Income Tax Act 2007.
Basic tax rates
(4)
The basic tax rates for payments of salary or wages for particular tax codes, including a non-notified tax code, are set out in the Income Tax Act 2007, schedule 2, part A.
Section 24B: replaced, on 1 April 2019, by section 279 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 24B(1) heading: inserted, on 1 April 2019, by section 18 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 24B(2) heading: inserted, on 1 April 2019, by section 18 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 24B(3) heading: replaced, on 9 November 2020, by section 48 of the New Zealand Superannuation and Veteran’s Pension Legislation Amendment Act 2020 (2020 No 36).
Section 24B(3) heading: amended, on 30 March 2021, by section 142 of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
Section 24B(3): replaced, on 9 November 2020, by section 48 of the New Zealand Superannuation and Veteran’s Pension Legislation Amendment Act 2020 (2020 No 36).
Section 24B(3)(a): replaced, on 30 March 2021, by section 142 of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
Section 24B(3B) heading: inserted, on 9 November 2020, by section 48 of the New Zealand Superannuation and Veteran’s Pension Legislation Amendment Act 2020 (2020 No 36).
Section 24B(3B): inserted, on 9 November 2020, by section 48 of the New Zealand Superannuation and Veteran’s Pension Legislation Amendment Act 2020 (2020 No 36).
Section 24B(4) heading: inserted, on 1 April 2019, by section 18 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
24C Notified tax codes
Employees notifying employers
(1)
An employee must notify their employer of the tax code applicable to their circumstances or of a change in their tax code. The notification must be in a form authorised by the Commissioner.
What this section does not apply to
(2)
This section does not apply in relation to—
(a)
a tax code provided by the Commissioner to the employer under schedule 5, part A, clause 2(2):
(b)
a tax code for a non-resident seasonal worker under schedule 5, part B, clause 3.
Section 24C: replaced, on 1 April 2019, by section 279 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 24C(1) heading: inserted, on 1 April 2019, by section 18 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 24C(2) heading: inserted, on 1 April 2019, by section 18 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
24D Tax codes provided by Commissioner
An employee may apply to the Commissioner for, or the Commissioner may recommend for the employee,—
(a)
a tailored tax code under schedule 5, part B, clause 1 to apply to either—
(i)
their New Zealand superannuation income or veteran’s pension income; or
(ii)
their other employment income from 1 or more employers:
(b)
a tax code under schedule 5, part B, clause 2 for their employment as a private domestic worker.
Section 24D: inserted, on 1 April 2019, by section 279 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 24D heading: replaced, on 1 April 2019, by section 22(1) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 24D: amended, on 1 April 2019, by section 22(2) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 24D(a): amended, on 1 April 2019, by section 22(3) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
24D Tax code for parental leave payment
[Repealed]Section 24D: repealed, on 1 April 2016, by section 83 of the Parental Leave and Employment Protection Amendment Act 2016 (2016 No 8).
24DB Use of unsuitable tax codes
For the purposes of section 24D and schedule 5, if the Commissioner considers that a more suitable or more accurate tax code could be, or could have been, used in relation to a PAYE income payment to an employee, the Commissioner—
(a)
may recommend a prospective change of tax code to the employee; and
(b)
with the consent of the employee, notify the employer of the change.
Section 24DB: inserted, on 1 April 2019, by section 23 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
24E Non-notified tax codes
When employees have non-notified tax codes
(1)
An employee, other than a person referred to in section 24D, has a non-notified tax code if—
(a)
the employee has not notified their employer of—
(i)
their name; and
(ii)
their tax file number; and
(iii)
their tax code; and
(b)
the Commissioner has not provided the employer with a tax code or change in tax code under schedule 5, part A, clause 3; and
(c)
the employee is not a non-resident seasonal worker referred to in schedule 5, part B, clause 3.
Full names
(2)
For the purposes of subsection (1)(a)(i), a person’s name is their full name that is sufficient to enable the Commissioner to ascertain a correct tax file number for the person.
Section 24E: replaced, on 1 April 2019, by section 279 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 24E(1) heading: inserted, on 1 April 2019, by section 18 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 24E(2) heading: inserted, on 1 April 2019, by section 18 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
24F Rates of tax for schedular payments: standard, payee, and set rates
Meaning of payer and payee
(1)
In this section, and sections 24G, 24H, and 24I, and in schedule 5, part C,—
(a)
a person who is making a schedular payment is referred to as the payer:
(b)
a person who is entitled to receive a schedular payment is referred to as the payee.
Standard rates
(2)
The standard rates of tax for schedular payments are set out in schedule 4 of the Income Tax Act 2007.
Payee rates
(3)
A payee may choose the rate of tax for the payment under schedule 5, part C, clause 3. Minimum rates apply, see clause 3(1).
Set rates
(4)
If a payee has a liability under the Inland Revenue Acts that has not been met, the Commissioner may, from time to time, set a rate of tax for a schedular payment of the payee under schedule 5, part C, clause 4.
Section 24F: replaced, on 1 April 2019, by section 279 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 24F(1) heading: inserted, on 1 April 2019, by section 18 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 24F(2) heading: inserted, on 1 April 2019, by section 18 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 24F(3) heading: inserted, on 1 April 2019, by section 18 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 24F(4) heading: inserted, on 1 April 2019, by section 18 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
24G Special tax rates for schedular payments
A payee, other than a non-resident entertainer, may apply to the Commissioner, under schedule 5, part C, clause 5, for a special rate of tax that applies to some or all of a schedular payment.
Section 24G: replaced, on 1 April 2019, by section 279 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
24H Exempt schedular payments
Notifying payee of exempt payment
(1)
The Commissioner may notify a payee under schedule 5, part C, clause 6 that 1 or more schedular payments that they are entitled to receive are payments for which no amount of tax is to be withheld. For this purpose, the Commissioner may include in the notification a retroactive period of up to 92 days before the date of their application in which to include a schedular payment.
What this section does not apply to
(2)
This section does not apply to—
(a)
a payment made to a non-resident entertainer:
(b)
a payment described in schedule 4, part J of the Income Tax Act 2007 that is made to a payee who is a New Zealand resident.
Section 24H: replaced, on 1 April 2019, by section 279 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 24H(1) heading: inserted, on 1 April 2019, by section 18 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 24H(1): amended, on 1 April 2024, by section 168 of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 24H(2) heading: inserted, on 1 April 2019, by section 18 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
24HB Schedular payments: tax obligations undertaken by nominated persons
When this section applies
(1)
This section applies in relation to a non-resident contractor that has a schedular payment under schedule 4, part A of the Income Tax Act 2007 for a tax year, if the non-resident contractor has made an arrangement with a person resident in New Zealand in relation to their PAYE, FBT, and ESCT obligations.
Nominating person to carry out tax obligations
(2)
The contractor may nominate the person to carry out the contractor’s tax obligations under section 124F.
Notifying Commissioner
(3)
The nominated person must notify the Commissioner that they act on behalf of the contractor in discharging the contractor’s tax obligations for the tax year in relation to unpaid tax.
Compliance history
(4)
The actions of the nominated person or a party to the arrangement with the contractor may provide a compliance history for the purposes of section RD 24(1)(c) of the Income Tax Act 2007, and for an application under section 24H for an exempt payment.
No separate return
(5)
The contractor may not make a separate assessment or return for the tax year in relation to the arrangement unless they are, for part of the corresponding income year, not part of the arrangement.
Joint and several liability
(6)
Each person who is part of the arrangement is jointly and severally liable for the contractor’s unpaid tax.
Section 24HB: inserted, on 1 April 2024, by section 169 of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 24HB(1): amended, on 1 April 2024, by section 133(1) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
Section 24HB(3): amended, on 1 April 2024, by section 133(2) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
Section 24HB(5): amended, on 1 April 2024, by section 133(3) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
Section 24HB(6): amended, on 1 April 2024, by section 133(4) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
Section 24HB(6): amended, on 1 April 2024, by section 133(5) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
24I Notification requirements
Payees to notify payers: names and tax file numbers
(1)
A payee, other than a non-resident entertainer, must notify the payer of their name and tax file number. The notification must be in a form authorised by the Commissioner.
Payees to notify payers: rates of tax
(2)
The payee must also notify the payer of the rate of tax applying to the payment if—
(a)
they choose the rate of tax as described in section 24F(3):
(b)
they are using a rate of tax set by the Commissioner under section 24F(4):
(c)
they are using a special rate of tax referred to in section 24G.
Section 24I: replaced, on 1 April 2019, by section 279 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 24I(1) heading: inserted, on 1 April 2019, by section 18 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 24I(2) heading: inserted, on 1 April 2019, by section 18 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
24IB Variation of requirements
Commissioner’s power to vary
(1)
The Commissioner may vary the requirements of section 24B and schedule 5, part A, clause 4, for a person or class of persons at any time.
Secondary legislation
(2)
A variation under this section is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).
| Legislation Act 2019 requirements for secondary legislation made under this section | ||||
| Publication | It is not required to be published | LA19 s 73(2) | ||
| Presentation | It is not required to be presented to the House of Representatives because a transitional exemption applies under Schedule 1 of the Legislation Act 2019 | LA19 s 114, Sch 1 cl 32(1)(a) | ||
| Disallowance | It may be disallowed by the House of Representatives | LA19 ss 115, 116 | ||
| This note is not part of the Act. | ||||
Section 24IB: replaced, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
PAYE certificates, notification, and applications[Repealed]
Heading: repealed, on 1 April 2019, by section 280 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
24J Proof of payment
[Repealed]Section 24J: repealed, on 1 April 2019, by section 280 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
24L Schedular notification
[Repealed]Section 24L: repealed, on 1 April 2019, by section 282 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
24LB Schedular tax rate elected by payee
[Repealed]Section 24LB: repealed, on 1 April 2019, by section 282 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
24LC Schedular tax rate prescribed by Commissioner
[Repealed]Section 24LC: repealed, on 1 April 2019, by section 282 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
24M Exemption certificates for schedular payments
[Repealed]Section 24M: repealed, on 1 April 2019, by section 282 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
24N Special tax rate certificates for schedular payments
[Repealed]Section 24N: repealed, on 1 April 2019, by section 282 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
24O Certain information required from agricultural, horticultural, or viticultural employers
[Repealed]Section 24O: repealed (with effect on 1 April 2008 and applying for 2008-09 and later income years), on 24 February 2016, by section 247(1) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
24P Variation of requirements
[Repealed]Section 24P: repealed, on 1 April 2019, by section 282 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Subpart 3E—Investment income information
Subpart 3E heading: replaced, on 1 April 2020, by section 287 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
25B Investment income information: outline of provisions
What this subpart does
(1)
This subpart sets out the information that a person who makes a payment of investment income is required to provide to the Commissioner and, in particular,—
(a)
what is meant for reporting purposes by investment income and investment income information:
(b)
who must provide investment income information to the Commissioner:
(c)
when investment income information must be provided and how it must be delivered:
(d)
when information is required in relation to certain types of investment:
(e)
the correction of errors:
(f)
when information may be filed in non-electronic form.
Meaning of payer and payee
(2)
In this subpart, and in schedule 6,—
(a)
a person who makes a payment of investment income is called the payer:
(b)
a person who derives or receives a payment of investment income is called the payee.
Related provisions
(3)
For the provisions related to—
(a)
the use of inconsistent RWT rates, see section 26B:
(b)
RWT withholding certificates, see section 26C:
(c)
shareholder dividend statements, see section 29:
(d)
Maori authority notices, see section 31:
(e)
notification requirements for multi-rate PIEs, see section 31C:
(f)
further requirements for multi-rate PIEs, see section 57B:
(g)
non-electronic filing penalties, see section 139AA.
Custodial institutions
(4)
For the purposes of subsection (2), a custodial institution that pays on or transfers an amount of investment income to an end investor is treated as a payer.
Section 25B: inserted, on 1 April 2020, by section 287 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 25B(1) heading: inserted, on 1 April 2020, by section 26 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 25B(2) heading: inserted, on 1 April 2020, by section 26 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 25B(3) heading: inserted, on 1 April 2020, by section 26 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 25B(4) heading: inserted, on 1 April 2020, by section 199 of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 25B(4): inserted, on 1 April 2020, by section 199 of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
25C Investment income
For the purposes of this subpart and section 227E, and schedule 6, investment income means—
(a)
resident passive income under section RE 2(1)(a) to (c) of the Income Tax Act 2007, subject to the withholding obligations set out in sections RE 3 and RE 4 of that Act:
(b)
non-resident passive income under section RF 2(1) of that Act:
(c)
attributed income of investors in portfolio investment entities under sections CP 1, CX 56, and CX 56B of that Act.
Section 25C: inserted, on 1 April 2020, by section 287 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
25D Investment income information
Meaning of investment income information
(1)
Investment income information means the items of information listed in schedule 6, table 1 relating to an amount of investment income, that a payer referred to in section 25E must either provide to the Commissioner under this subpart or retain under section 22AAB.
Not cumulative
(2)
The information must be provided for each relevant reporting period rather than on a cumulative basis.
Joint ownership
(3)
If an investment is owned jointly by 2 or more investors, and the payer of the investment income holds the relevant information, the payer must include in their investment income information the information set out in schedule 6, table 1, row 16 in relation to each owner.
When requirements for joint owners do not apply
(4)
Subsection (3) does not apply to a payer in relation to a payment to or for joint owners that is received in their capacity as—
(a)
beneficiaries of a trust:
(b)
shareholders in a company:
(c)
partners in a partnership, unless the partnership is not required to file a separate return.
When information obtained before April 2018
(5)
Despite subsection (1), if the following items of information have been obtained before 1 April 2018, the requirement to include the item in investment income information provided to the Commissioner applies only when it is held in electronic form:
(a)
a person’s date of birth:
(b)
for joint owners, the names, tax file numbers, dates of birth, and contact addresses.
Section 25D: inserted, on 1 April 2020, by section 287 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 25D(1) heading: inserted, on 1 April 2020, by section 26 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 25D(2) heading: inserted, on 1 April 2020, by section 26 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 25D(3) heading: inserted, on 1 April 2020, by section 26 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 25D(4) heading: inserted, on 1 April 2020, by section 26 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 25D(4)(c): amended, on 1 April 2020, by section 27 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 25D(5) heading: inserted, on 1 April 2020, by section 26 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
25E Who must provide investment income information to Commissioner
Persons
(1)
The persons who must provide their investment income information to the Commissioner by the relevant date set out in this subpart are—
(a)
a person who is required to withhold an amount of tax for a payment of interest, see section 25F:
(b)
a person who chooses under section 32M to pay approved issuer levy in relation to a debt, other than a debt in relation to which the interest payments are administered by an offshore paying agent:
(c)
a company that pays a taxable dividend to a person, including a dividend described in section RE 9 of the Income Tax Act 2007, see section 25G:
(d)
a person who pays a royalty to a non-resident person, see section 25H:
(e)
a Maori authority that makes a taxable distribution to a member of the authority, other than a retirement scheme contribution, see section 25I:
(f)
a multi-rate PIE that attributes income to an investor or a proxy for an investor, see section 25J:
(g)
[Repealed](h)
a public unit trust that pays an amount that is treated as a taxable dividend on a withdrawal from the trust, see section 25L:
(i)
an emigrating company that is treated under section FL 2 or FL 3 of the Income Tax Act 2007 as paying a dividend to shareholders, see section 25M:
(ib)
a custodial institution that pays on or transfers an amount of investment income to an end investor, see section 25MB:
(j)
a person who would be liable to pay an amount referred to in paragraph (a) but for the circumstances described in subsection (2).
Circumstances when withholding not required
(2)
The circumstances referred to in subsection (1)(j) are that a person who pays interest for which RWT is not required to be withheld because—
(a)
the amount—
(i)
is not paid by the person in the course or furtherance of a taxable activity; or
(ii)
is an amount to which section RE 10 of the Income Tax Act 2007 applies; and
(b)
the amount is allowed as a deduction under that Act; and
(c)
the amount is paid to a person other than a person with RWT-exempt status.
(3)
If a person who has an obligation under this section to provide investment income information to the Commissioner makes a payment to a custodial institution referred to in subsection (1)(ib), whether or not the institution pays on or transfers the amount to an end investor, the person must, for the purposes of this subpart, treat the institution as a payee.
Section 25E: inserted, on 1 April 2020, by section 287 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 25E(1) heading: inserted, on 1 April 2020, by section 26 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 25E(1)(f): amended (with effect on 1 April 2020), on 30 March 2021, by section 154(1) of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
Section 25E(1)(g): repealed (with effect on 1 April 2020), on 30 March 2021, by section 154(2) of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
Section 25E(1)(i): amended (with effect on 30 August 2022), on 31 March 2023, by section 170 of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 25E(1)(ib): inserted, on 1 April 2020, by section 200(1) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 25E(2) heading: inserted, on 1 April 2020, by section 26 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 25E(3): inserted, on 1 April 2020, by section 200(2) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
25F Information on interest
Delivery of investment income information
(1)
A payer referred to in section 25E(1)(a) and (b) must deliver the investment income information for the payment of interest as set out in schedule 6, table 1, rows 1 to 11, 16, 21, and 22, as applicable, to the Commissioner—
(a)
in electronic form and by means of an electronic communication as prescribed by the Commissioner; and
(b)
by the 20th of the month following the month in which the amount of investment income is paid to or derived by the payee.
Nominees
(2)
Despite subsection (1), when an investor is a nominee, the investment income information required from a payer referred to in section 25E(1)(b) is limited to information held in relation to the nominee unless the payer has access to information on the ultimate investor.
Section 25F: inserted, on 1 April 2020, by section 287 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 25F(1) heading: inserted, on 1 April 2020, by section 26 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 25F(2) heading: inserted, on 1 April 2020, by section 26 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
25G Information on dividends
Delivery of investment income information
(1)
A payer referred to in section 25E(1)(c) must deliver the investment income information for the payment of the dividend as set out in schedule 6, table 1, rows 1 to 11, 14, and 16 to 22, as applicable, to the Commissioner—
(a)
in electronic form and by means of an electronic communication as prescribed by the Commissioner; and
(b)
by the 20th of the month following the month in which the amount of investment income is paid to or derived by the payee.
Certain dividends derived by dual resident companies
(2)
For the purposes of subsection (1) and a dividend described in section CD 1(3) of the Income Tax Act 2007, the payer must treat the DRCD deferral date as the date on which the amount of investment income is paid to or derived by the payee.
Section 25G: inserted, on 1 April 2020, by section 287 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 25G(1) heading: inserted (with effect on 30 August 2022), on 31 March 2023, by section 171(1) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 25G(2) heading: inserted (with effect on 30 August 2022), on 31 March 2023, by section 171(2) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 25G(2): inserted (with effect on 30 August 2022), on 31 March 2023, by section 171(2) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
25H Information on royalties paid to non-residents
A payer referred to in section 25E(1)(d) must deliver the investment income information for the payment of the royalty as set out in schedule 6, table 1, rows 1 to 11, 16, 21, and 22, as applicable, to the Commissioner—
(a)
in electronic form and by means of an electronic communication as prescribed by the Commissioner; and
(b)
by 31 May after the end of the tax year.
Section 25H: inserted, on 1 April 2020, by section 287 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
25I Information on Maori authority distributions
A payer referred to in section 25E(1)(e) must deliver the investment income information for the payment of a Maori authority distribution as set out in schedule 6, table 1, rows 1 to 10, 15, 16, 21, and 22, as applicable, to the Commissioner—
(a)
in electronic form and by means of an electronic communication as prescribed by the Commissioner; and
(b)
by the 20th of the month following the month in which the amount of investment income is paid to or derived by the payee.
Section 25I: inserted, on 1 April 2020, by section 287 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
25J Information on attributed PIE income
A payer referred to in section 25E(1)(f) must deliver the investment income information for the relevant attributed PIE income as set out in schedule 6, table 1, rows 1 to 10, 12, 13, 14, 16, 21, and 22, as applicable, for a tax year to the Commissioner—
(a)
in electronic form and by means of an electronic communication as prescribed by the Commissioner; and
(b)
by the following relevant date:
(i)
15 May after the end of the tax year, if the PIE has a corresponding income year that does not end after the end of the tax year:
(ii)
the end of the second month after that in which the PIE’s corresponding income year ends, if the PIE has a corresponding income year that ends after the end of the tax year:
(iii)
the end of the third month after that in which the PIE loses PIE status, if the cessation occurs in the corresponding income year.
Section 25J: inserted, on 1 April 2020, by section 287 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 25J heading: replaced (with effect on 1 April 2020), on 30 March 2021, by section 155 of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
25K Information on attributed PIE income: locked-in funds
[Repealed]Section 25K: repealed (with effect on 1 April 2020), on 30 March 2021, by section 156 of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
25L Information from public unit trusts
A payer referred to in section 25E(1)(h) must deliver the investment income information set out in schedule 6, table 1, rows 1 to 11, 14, 16, 21, and 22 for a tax year—
(a)
in electronic form and by means of an electronic communication as prescribed by the Commissioner; and
(b)
by 15 May after the end of the tax year.
Section 25L: inserted, on 1 April 2020, by section 287 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
25M Information from emigrating companies
Delivery of investment income information
(1)
A payer referred to in section 25E(1)(i) must deliver the investment income information set out in schedule 6, table 1, rows 1 to 11, 14, 16, 21, and 22, as applicable, for a tax year to the Commissioner—
(a)
in electronic form and by means of an electronic communication as prescribed by the Commissioner; and
(b)
by the relevant date set out in subsection (2).
Due date
(2)
The relevant date is,—
(a)
for an emigrating company that is treated under section FL 2 of the Income Tax Act 2007 as paying a dividend to shareholders, the date that is 3 months after the time of emigration:
(b)
for an emigrating company that is treated under section FL 3 of the Income Tax Act 2007 as paying a dividend to shareholders, the date that is 3 months after the earliest of the events described in subsection (1)(a) to (c) of that section occurs.
Section 25M: inserted, on 1 April 2020, by section 287 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 25M(1) heading: inserted (with effect on 30 August 2022), on 31 March 2023, by section 172(1) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 25M(1)(b): replaced (with effect on 30 August 2022), on 31 March 2023, by section 172(2) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 25M(2) heading: inserted (with effect on 30 August 2022), on 31 March 2023, by section 172(3) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 25M(2): inserted (with effect on 30 August 2022), on 31 March 2023, by section 172(3) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
25MB Information from custodial institutions
When this section applies
(1)
This section applies when—
(a)
a person who is a custodial institution receives a payment of investment income; and
(b)
the institution pays on or transfers the amount received to an end investor.
Specified operators of designated FMIs
(2)
Despite subsection (1) and section 25E(1), the rules in this subpart do not apply to a custodial institution that is the specified operator of a designated FMI to the extent that the FMI is a settlement system. The exclusion extends to a nominee or agent of the specified operator.
Meaning of settlement system and other terms
(2B)
For the purposes of subsection (2) and this subsection,—
(a)
settlement system—
(i)
means a system or arrangement for effecting settlements or processing settlement instructions in accordance with rules; and
(ii)
includes a payment system:
(b)
designated FMI, FMI, rules, settlement, settlement instruction, and specified operator have the same meanings as in section 5 of the Financial Market Infrastructures Act 2021.
Providing investment income information
(3)
The custodial institution must provide investment income information relating to the payment of investment income to the Commissioner under section 25E(1).
Agreements to transfer reporting obligations: outsourcing obligations
(4)
The custodial institution may, before the date on which the payment is received by the institution, enter into an agreement with another person (person B) for person B to provide to the Commissioner the information referred to in subsection (3). However, if person B does not provide the information to the Commissioner, the reporting obligation remains with the custodial institution.
Agreements to transfer reporting obligations: passing up information
(5)
When a payment of investment income is paid on or transferred through interposed custodial institutions before being paid to an end investor, the custodial institution that is last in the chain may enter into an agreement with another custodial institution that precedes them in the chain, for the latter institution to provide to the Commissioner the information referred to in subsection (3). In this case, the reporting obligation passes to the latter institution, and the final custodial institution’s obligation is discharged.
Limited information
(6)
Despite subsection (3),—
(a)
when an end investor is a non-resident custodial institution, the information required under section 25E may be aggregated:
(b)
the investment income information set out in schedule 6, rows 9 (in relation to approved issuer levy), 17, and 20 that a custodial institution is required to provide is limited to information held by the institution.
Meaning of custodial institution
(7)
For the purposes of this subpart, a custodial institution means an entity—
(a)
that holds financial assets or financial instruments as a bare trustee on account for another person; and
(b)
whose activities are supervised or regulated under the Financial Markets Conduct Act 2013, the Financial Market Infrastructures Act 2021, the Financial Markets Authority Act 2011, the Financial Advisers Act 2008, or the Banking (Prudential Supervision) Act 1989, or are supervised or regulated under corresponding legislation in another jurisdiction.
Meaning of end investor
(8)
For the purposes of this subpart, an end investor —
(a)
means an investor to whom a payment of investment income is made who is—
(i)
a direct investor, whether resident or non-resident, who is the beneficial owner of the investment:
(ii)
a custodial institution that is not resident in New Zealand; and
(b)
includes a trustee, PIE, or PIE proxy if the person or entity has an obligation to provide investment income information to the Commissioner under this subpart.
When branches located in New Zealand
(9)
For the purposes of subsection (8)(a)(ii), if the non-resident custodial institution has a branch located in New Zealand that receives a payment of investment income, the branch is treated as the person who must provide investment income information relating to the payment under subsection (3).
Section 25MB: inserted, on 1 April 2020, by section 201 of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 25MB(2) heading: replaced, on 1 March 2024, by section 163(1) of the Financial Market Infrastructures Act 2021 (2021 No 13).
Section 25MB(2): replaced, on 1 March 2024, by section 163(1) of the Financial Market Infrastructures Act 2021 (2021 No 13).
Section 25MB(2B) heading: inserted, on 1 March 2024, by section 163(1) of the Financial Market Infrastructures Act 2021 (2021 No 13).
Section 25MB(2B): inserted, on 1 March 2024, by section 163(1) of the Financial Market Infrastructures Act 2021 (2021 No 13).
Section 25MB(7)(b): replaced (with effect on 1 April 2020), on 30 March 2021, by section 157 of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
Section 25MB(7)(b): amended, on 1 March 2024, by section 163(1) of the Financial Market Infrastructures Act 2021 (2021 No 13).
Section 25MB(7)(b): amended, on 1 July 2022, by section 300(1) of the Reserve Bank of New Zealand Act 2021 (2021 No 31).
Section 25MB(8)(a)(ii): replaced (with effect on 1 April 2020), on 30 March 2022, by section 189(1) (and see section 189(3) for application) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section 25MB(9) heading: inserted (with effect on 1 April 2020), on 30 March 2022, by section 188(2) (and see section 189(3) for application) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section 25MB(9): inserted (with effect on 1 April 2020), on 30 March 2022 (applying for 2020–21 and later income years), by section 188(2) (and see section 189(3) for application) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
25N Information from payers with no withholding obligation
A payer referred to in section 25E(1)(j) must deliver the investment income information described in schedule 6, table 1, rows 4 to 8, 16, 21, and 22, as applicable, for a tax year to the Commissioner—
(a)
in electronic form and by means of an electronic communication as prescribed by the Commissioner; and
(b)
with their return of income for the corresponding income year.
Section 25N: inserted, on 1 April 2020, by section 287 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
25NB De minimis filing requirements for certain persons
When this section applies
(1)
This section applies when a person is required to withhold an amount of tax under—
(a)
section RE 21(3) of the Income Tax Act 2007:
(b)
section RF 13(2) of that Act:
(c)
section 86KA of the Stamp and Cheque Duties Act 1971.
When this section does not apply
(2)
This section does not apply when a person withholds an amount of tax referred to in section RE 21(6) and (7) of the Income Tax Act 2007.
Delivery of investment income information
(3)
Despite sections 25E, 25F, and 25H, the person may deliver the investment income information for the payment to the Commissioner—
(a)
in electronic form and by means of an electronic communication as prescribed by the Commissioner; and
(b)
for the period in the tax year from 1 April to 30 September, by 20th October after the end of the period; and
(c)
for the period in the tax year from 1 October to 31 March, by 20th April after the end of the period.
Section 25NB: inserted, on 1 April 2022, by section 190(1) (and see section 190(2) for application) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
25O Correction of errors in investment income information
An adjustment may be made under section RA 11 or RA 12 of the Income Tax Act 2007 to correct certain errors that a payer has made in relation to an amount of tax for RWT or NRWT.
Section 25O: inserted, on 1 April 2020, by section 287 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
25P Non-electronic filing of investment income information
Exemption
(1)
Despite sections 25F to 25N, the Commissioner may exempt a payer from the requirement to deliver their investment income information in electronic form and by means of an electronic communication. The Commissioner must provide a statement of reasons for the exemption.
Relevant considerations
(2)
In determining whether to exempt a payer under subsection (1), the Commissioner must have regard to—
(a)
the nature and availability of digital services to the payer, including the reliability of those services for the purposes of the payer; and
(b)
the capability of the payer relating to the use of computers; and
(c)
the costs that the payer would incur in complying with the requirements, if those costs would be unreasonable in the circumstances.
Valid until cancellation
(3)
Subject to subsection (4), an exemption under this section remains valid until the Commissioner notifies the payer that the exemption is to be cancelled. The exemption expires on the date that is 6 months after that given in the Commissioner’s notice.
Time limits
(4)
In making an exemption under this section, the Commissioner may set a time limit on the exemption, stating a start date and an end date, as applicable, for the exemption and the reason for setting a time limit.
(5)
[Repealed]Section 25P: inserted, on 1 April 2020, by section 287 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 25P(1) heading: inserted, on 1 April 2020, by section 26 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 25P(2) heading: inserted, on 1 April 2020, by section 26 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 25P(3) heading: inserted, on 1 April 2020, by section 26 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 25P(4) heading: inserted, on 1 April 2020, by section 26 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 25P(5) heading: repealed, on 28 October 2021, pursuant to section 3 of the Secondary Legislation Act 2021 (2021 No 7).
Section 25P(5): repealed, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
25Q Setting electronic and non-electronic filing requirements
For the delivery of investment income information, the Commissioner—
(a)
must prescribe—
(i)
an electronic form and means of electronic communication:
(ii)
a form or mode of delivery other than by electronic means:
(b)
may from time to time set specifications for software for use in the delivery of that information.
Section 25Q: inserted, on 1 April 2020, by section 287 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
25R Investment income information: variation of requirements
Commissioner’s power to vary
(1)
The Commissioner may vary the requirements set out in subpart 3E and schedule 6 for a person or a class of persons, and the requirements apply as varied.
Secondary legislation
(2)
A variation under this section is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).
| Legislation Act 2019 requirements for secondary legislation made under this section | ||||
| Publication | It is not required to be published | LA19 s 73(2) | ||
| Presentation | It is not required to be presented to the House of Representatives because a transitional exemption applies under Schedule 1 of the Legislation Act 2019 | LA19 s 114, Sch 1 cl 32(1)(a) | ||
| Disallowance | It may be disallowed by the House of Representatives | LA19 ss 115, 116 | ||
| This note is not part of the Act. | ||||
Section 25R: replaced, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
RWT rates, certificates, and records[Repealed]
Heading: repealed, on 1 April 2019, by section 284 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
26 Records to be kept for RWT purposes
[Repealed]Section 26: repealed, on 1 April 2020, by section 288 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
26B Use of unsuitable RWT rates
(1)
If the Commissioner considers that a more suitable or more accurate RWT rate could have been used in relation to a payment of resident passive income consisting of interest, the Commissioner—
(a)
may recommend a prospective change of RWT rate to the payee; and
(b)
with the consent of the payee, notify the payer of the change.
(2)
The payer must use the RWT rate provided by the Commissioner in relation to the payee as soon as reasonably practicable after the date of notification. However, if the payee subsequently notifies the payer of a different RWT rate, the payer must apply the rate notified by the payee.
Section 26B (former section 25A): renumbered, on 1 April 2020, by section 285(1) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 26B: replaced, on 1 April 2019, by section 25 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
26C RWT withholding certificates
(1)
Subsection (1B) applies for a tax year when a payer withholds RWT for resident passive income for the following amounts paid to or derived by a payee who has not provided the payer with their tax file number:
(a)
interest:
(b)
a dividend treated as interest:
(c)
a dividend to which section RE 9(2) of the Income Tax Act 2007 applies.
(1B)
The person must prepare an RWT withholding certificate that contains the information set out in subsection (6).
(2)
Every person (in this section referred to as the payer) who is required to prepare an RWT withholding certificate in respect of any amount of resident passive income paid to or derived (as applicable) by any other person (in this section referred to as the recipient) shall, at the discretion of the payer, either—
(a)
prepare the RWT withholding certificate with respect to all such amounts of resident passive income of that type (being either interest or dividends) paid to or derived (as applicable) by the recipient during the relevant tax year; or
(b)
prepare the RWT withholding certificate with respect to each such amount of resident passive income of that type paid to or derived (as applicable) by the recipient,—
and in either case shall provide the RWT withholding certificate to the recipient not later than the 20 May that follows the end of the relevant year.
(3)
Notwithstanding subsection (2), the recipient may at any time during the relevant year notify the payer that they are required to prepare and provide an RWT withholding certificate in relation to RWT withheld during that year for resident passive income that relates to a financial arrangement, if the financial arrangement has matured, been remitted, or been disposed of by the recipient, and in such event the payer shall prepare the withholding certificate and provide it to the recipient not later than 20 working days after the receipt by the payer of the notice.
(4)
Notwithstanding subsection (2), where any person (not being a person with RWT-exempt status notwithstanding the cessation in carrying on a taxable activity) in any month—
(a)
ceases to carry on any taxable activity in respect of which that person has been required to withhold RWT; or
(b)
ceases to carry on any such taxable activity in New Zealand,—
that person shall prepare and provide to the recipients an RWT withholding certificate required to be prepared by that person with respect to that taxable activity not later than the 20th of the following month.
(5)
Notwithstanding subsection (2), where any person in any month ceases to be a person with RWT-exempt status (not being a person who continues to be required to withhold RWT by virtue of making payments in the course of or furtherance of a taxable activity despite the ending of the person’s RWT-exempt status) that person shall prepare and provide to the recipients an RWT withholding certificate required to be prepared by that person not later than the 20th of the following month.
(6)
An RWT withholding certificate must include the following:
(a)
a statement as to whether the resident passive income is interest, a dividend treated as interest, or a dividend to which section RE 9(2) of the Income Tax Act 2007 applies; and
(b)
the date on which the RWT was withheld, or if there is more than 1 instance, the year in which the amounts were withheld; and
(c)
the amount of resident passive income and the amount of RWT withheld; and
(d)
the rate for the resident passive income—
(i)
found by dividing the total amount of RWT withheld by the amount of resident passive income:
(ii)
at which RWT would have been withheld if the resident passive income had been paid or derived at the end of the relevant tax year:
(iii)
at which RWT was withheld during the relevant tax year, together with, if more than 1 RWT rate applied for the resident passive income, the amount to which each rate applied and the amount withheld at each rate; and
(e)
if, for an inflation-indexed instrument, the recipient derives an interest payment for which RWT is capped by the application of section RE 18B(1)(a) of the Income Tax Act 2007,—
(i)
a statement to that effect; and
(ii)
a statement that the recipient may be required to file a return of income.
(6A)
[Repealed](6B)
The Commissioner may prescribe a formula for determining the average basic tax rate that is to be applied to resident passive income.
(7)
No person shall be required to prepare and provide an RWT withholding certificate relating to any interest from which the person has in a tax year withheld RWT where—
(a)
all resident passive income is interest paid by the person under a financial arrangement, and the interest is not more than $50 in that tax year; or
(b)
the RWT withheld was from resident passive income that is interest, and the amount was required to be withheld by the person under section RE 7 or RE 8 of the Income Tax Act 2007, and the total amount of the resident passive income, being interest, paid by the person in that tax year to the recipient of the interest is no more than $50,—
unless the person is notified by the recipient of the interest that they require such a certificate, in which case the certificate shall be prepared and provided to the recipient not later than 20 working days after receipt of that notice.
(8)
An RWT withholding certificate must be retained by the person to whom it is provided for a period of 3 years after the end of the year to which it relates, unless the Commissioner otherwise permits.
(9)
Where any resident passive income is paid to or derived (as applicable) by 2 or more persons jointly, any payer shall be entitled to treat those persons as 1 person and accordingly issue only 1 RWT withholding certificate in the name of any 1 or more of those persons who may be nominated by those persons for this purpose or, in the absence of any such nomination, in the name of those persons jointly.
(10)
For the purposes of this section, an RWT withholding certificate is treated as provided to a recipient if it is delivered in a way described in section 14F(4) to—
(a)
the recipient; or
(b)
a person authorised to act on behalf of the recipient.
(11)
In this section, a dividend that is resident passive income paid by an RWT proxy as described in section RE 3(1)(c) of the Income Tax Act 2007 is treated as being interest.
Compare: 1976 No 65 s 327H
Section 26C (former section 25): renumbered, on 1 April 2020, by section 286(2) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 26C heading: replaced, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 26C(1): replaced, on 1 April 2020, by section 286(3) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 26C(1B): inserted, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 26C(2): amended (with effect on 1 April 2008), on 29 March 2018, by section 286(1) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 26C(2): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 26C(2)(a): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 26C(2)(a): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 26C(2)(b): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 26C(3): amended, on 2 June 2016, by section 93(1) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section 26C(3): amended, on 2 June 2016, by section 93(2) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section 26C(3): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 26C(4): amended, on 1 April 2020, by section 286(4) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 26C(4)(a): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 26C(4)(b): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 26C(5): amended, on 1 April 2020, by section 286(5)(a) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 26C(5): amended, on 1 April 2020, by section 286(5)(b) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 26C(5): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 26C(6): replaced, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 26C(6)(a): amended (with effect on 1 April 2008), on 7 September 2010, by section 130(1) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section 26C(6)(b): amended (with effect on 1 April 2008), on 7 September 2010, by section 130(2) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section 26C(6)(c): amended (with effect on 1 April 2008), on 7 September 2010, by section 130(3) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section 26C(6)(d): replaced (with effect on 1 April 2010), on 7 September 2010 (applying for 2010–11 and later tax years), by section 130(4) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section 26C(6)(d)(iii): amended, on 30 June 2014, by section 153 of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).
Section 26C(6)(e): inserted, on 30 June 2014, by section 153 of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).
Section 26C(6A): repealed, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 26C(6B): inserted, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 26C(7): amended, on 2 June 2016, by section 93(3) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section 26C(7): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 26C(7): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 26C(7)(a): replaced, on 20 May 1999 (applying on and after 20 May 1999), by section 64(1) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
Section 26C(7)(a): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 26C(7)(a): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 26C(7)(a): amended, on 17 October 2002 (applying to 2002–03 and subsequent income years), by section 74(3) of the Taxation (Relief, Refunds and Miscellaneous Provisions) Act 2002 (2002 No 32).
Section 26C(7)(b): replaced, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 26C(8): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 26C(9): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 26C(10): replaced, on 2 June 2016, by section 93(4) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section 26C(11): replaced, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
27 Provision of tax file numbers
(1)
Every recipient who receives resident passive income from which RWT must be withheld and who has a tax file number must, if notified by the payer, provide their tax file number to the payer within 10 working days of receiving the notice.
(2)
[Repealed]Compare: 1976 No 65 ss 327ZB(2), 327ZD(2)
Section 27(1): amended, on 2 June 2016, by section 95(1) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section 27(1): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 27(1): amended, on 21 December 2004, by section 125(b) of the Taxation (Base Maintenance and Miscellaneous Provisions) Act 2005 (2005 No 79).
Section 27(2): repealed, on 29 March 2018, by section 289 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
28 Recipient of resident passive income to provide tax file number when RWT not withheld
A person who receives a payment of resident passive income, that is interest, must provide their tax file number to the payer within 10 working days of receiving a notice from the payer, if no requirement to withhold RWT arises because—
(a)
the payment was not made by the payer in the course of, or furtherance of, a taxable activity:
(b)
section RE 10 of the Income Tax Act 2007 applies.
Section 28: replaced, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 28: amended, on 2 June 2016, by section 96(1) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section 28: amended, on 2 June 2016, by section 96(2) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
28B Notification of investors’ tax file numbers
(1)
An investor in a multi-rate PIE must notify the PIE of their tax file number within 6 weeks of the date on which they become an investor in the PIE.
(2)
Subsection (1) does not apply to—
(a)
an investor who—
(i)
is non-resident; and
(ii)
does not have a tax file number; and
(iii)
provides the equivalent of their tax file number for the country or territory where they reside for tax purposes, or a declaration if they are unable to provide this number:
(b)
an investor in a multi-rate PIE that is listed on a recognised exchange in New Zealand.
(3)
Despite subsection (2), if an investor in a multi-rate PIE is a non-resident who becomes a resident, the investor must immediately notify the PIE that they have become resident. The 6-week period referred to in subsection (1) starts to run from the date of the notification of residency.
Section 28B: replaced, on 1 April 2018, by section 290 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 28B(2): replaced (with effect on 1 April 2018), on 18 March 2019, by section 28 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
28C Person advising retirement savings scheme of retirement scheme prescribed rate
A person who gives a notice that the retirement scheme prescribed rate for the person and an income year is less than 39% must include the person’s tax file number in the notice.
Section 28C: inserted (with effect on 1 April 2007), on 19 December 2007, by section 192 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 28C: amended, on 1 April 2021, by section 27 (and see section 3 for application) of the Taxation (Income Tax Rate and Other Amendments) Act 2020 (2020 No 65).
28D Information required from notified foreign investors
(1)
In order to become a notified foreign investor in a foreign investment PIE, a non-resident person must provide the PIE with the following information:
(a)
their full name:
(b)
their date of birth, if applicable:
(c)
their home address in the country or territory where they reside for tax purposes:
(d)
the country code as prescribed by the Commissioner for the country or territory where they reside for tax purposes:
(e)
the equivalent of their tax file number in the country or territory where they reside for tax purposes, or a declaration if they are unable to provide this number:
(f)
their tax file number in New Zealand, if applicable.
(2)
The Commissioner may, by notice, add to or change the list of information requirements set out in subsection (1) from time to time.
(3)
A notice under subsection (2) is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).
| Legislation Act 2019 requirements for secondary legislation made under this section | ||||
| Publication | It is not required to be published | LA19 s 73(2) | ||
| The Ministry of Foreign Affairs and Trade considers that the secondary legislation may have international transparency obligations under the CPTPP. As a result the maker may have to comply with s 75 of the Legislation Act 2019 | LA19 ss 74(2), 75 | |||
| Presentation | It is not required to be presented to the House of Representatives because a transitional exemption applies under Schedule 1 of the Legislation Act 2019 | LA19 s 114, Sch 1 cl 32(1)(a) | ||
| Disallowance | It may be disallowed by the House of Representatives | LA19 ss 115, 116 | ||
| This note is not part of the Act. | ||||
Section 28D: inserted, on 29 August 2011, by section 157 of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section 28D(2): amended, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
Section 28D(3): inserted, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
Subpart 3F—Statements, notices, and certificates
Subpart 3F heading: inserted, on 1 April 2019, by section 291 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
29 Shareholder dividend statement to be provided by company
(1)
A company that pays to a shareholder a dividend (not being a dividend treated as interest) from which RWT has been withheld, or a dividend with an imputation credit, must give to the shareholder a shareholder dividend statement in a form approved by the Commissioner, showing—
(a)
the name of the company:
(b)
the date of payment of the dividend:
(c)
the name and address of the shareholder to whom the dividend is paid:
(d)
the amount of RWT withheld, if any:
(e)
the amount of NRWT withheld, if any:
(f)
the amount of the dividend paid to the shareholder:
(g)
the amount of any imputation credit attached to that dividend:
(h)
the aggregate of the amount of the dividend and the amount of any imputation credit attached to that dividend:
(i)
[Repealed](ia)
[Repealed](ib)
the amount, if any, of the dividend paid to a retirement savings scheme as a retirement scheme contribution for the shareholder:
(ic)
the name of the retirement savings scheme to which any retirement scheme contribution was paid:
(id)
the amount, if any, of imputation credit used to satisfy a liability of the company for RSCT:
(ie)
the amount, if any, of imputation credit remaining after the company has used an imputation credit in satisfying a liability for RSCT:
(j)
such other information as may be required by the Commissioner.
(1B)
An Australian ICA company must use, in a shareholder dividend statement, the term “New Zealand imputation credit” to describe the quantity referred to in subsection (1)(g).
(1C)
The company must give the shareholder dividend statement to the shareholder—
(a)
at the time of payment of the dividend, if neither of paragraphs (b) and (c) applies; or
(b)
before the date that is 3 months after the time of emigration, if the company is treated under section FL 2 of the Income Tax Act 2007 as paying the dividend; or
(c)
before the date that is 3 months after the earliest of the events described in section FL 3(1)(a) to (c) of that Act occurs, if the company is treated under that section as paying the dividend.
(2)
For the purposes of this section, a shareholder dividend statement is treated as given to a shareholder if it is delivered in a way described in section 14F(4) to—
(a)
the shareholder; or
(b)
a person authorised to act on behalf of the shareholder.
(3)
For the purposes of this section, a company that pays to a shareholder a dividend described in section CD 1(3) of the Income Tax Act 2007 is treated as paying the dividend on the DRCD deferral date.
Compare: 1976 No 65 s 394I
Section 29(1): amended, on 1 April 2017, by section 307(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section 29(1): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 29(1): amended, on 3 April 2006 (applying for income years corresponding to 2005–06 and subsequent tax years), by section 213(1) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).
Section 29(1)(d): replaced, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 29(1)(e): replaced, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 29(1)(i): repealed, on 1 April 2017, by section 307(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section 29(1)(ia): repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 141(2) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section 29(1)(ib): inserted (with effect on 1 April 2007), on 19 December 2007, by section 193(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 29(1)(ic): inserted (with effect on 1 April 2007), on 19 December 2007, by section 193(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 29(1)(id): inserted (with effect on 1 April 2007), on 19 December 2007, by section 193(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 29(1)(id): amended, on 1 April 2008, by section 193(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 29(1)(ie): inserted (with effect on 1 April 2007), on 19 December 2007, by section 193(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 29(1)(ie): amended, on 1 April 2008, by section 193(3) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 29(1B): inserted (with effect on 1 April 2003), on 25 November 2003, by section 106 of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).
Section 29(1B): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 29(1C): replaced (with effect on 30 August 2022), on 31 March 2023, by section 173(1) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 29(2): replaced, on 2 June 2016, by section 98 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section 29(3): inserted (with effect on 30 August 2022), on 31 March 2023, by section 173(2) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
30 Statement to shareholder when FDP credit attached to dividend
[Repealed]Section 30: repealed, on 1 April 2017, by section 308 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
30A Statement to shareholder when CTR credit attached to dividend
[Repealed]Section 30A: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 142(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
30B Statement to share supplier when share user makes replacement payment under share-lending arrangement
A share user under a share-lending arrangement who pays a replacement payment to the share supplier must at the time of paying the replacement payment give to the share supplier a replacement payment statement in a form approved by the Commissioner showing—
(a)
the name of the share user:
(b)
the date on which the replacement payment is paid:
(c)
the name and address of the share supplier:
(d)
[Repealed](e)
the amount of the replacement payment after the RWT is withheld:
(f)
the amount of any imputation credit attached under section OB 64 of the Income Tax Act 2007 to the replacement payment:
(g)
the aggregate of the amount of any imputation credit referred to in paragraph (f) and the amount of the imputation credit arising under section RE 25 of the Income Tax Act 2007 for the share supplier from the amount of RWT withheld.
(h)
[Repealed]Section 30B: inserted, on 1 July 2006, by section 214 of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).
Section 30B(d): repealed (with effect on 1 July 2006), on 18 December 2006, by section 178 of the Taxation (Savings Investment and Miscellaneous Provisions) Act 2006 (2006 No 81).
Section 30B(e): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 30B(f): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 30B(g): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 30B(h): repealed (with effect on 1 July 2006), on 18 December 2006, by section 178 of the Taxation (Savings Investment and Miscellaneous Provisions) Act 2006 (2006 No 81).
30C Credit transfer notice to share supplier and Commissioner when share user transfers imputation credit under share-lending arrangement
(1)
A credit transfer notice may be issued by a share user under a share-lending arrangement when a dividend is paid for an original share, by complying with this section.
(2)
A credit transfer notice must—
(a)
be in a form approved by the Commissioner:
(b)
show the amount of imputation credit, if any, attached to the dividend, if the dividend is derived by the share user:
(c)
state that any imputation credit is to be transferred to the share supplier, if the dividend is derived by the share user:
(d)
attach a copy of the shareholder dividend statement for the dividend, if the dividend is derived by the share user:
(e)
be given to the relevant share supplier and the Commissioner when the dividend is paid or as soon as possible after it is paid.
Section 30C: inserted, on 1 July 2006, by section 214 of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).
Section 30C(2)(b): amended, on 1 April 2017, by section 309(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section 30C(2)(c): amended, on 1 April 2017, by section 309(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
30D Statements to shareholders when certain assets held by companies
(1)
This section applies for an income year to a company to which 1 or more of sections DG 11 to DG 19 of the Income Tax Act 2007 applies.
(2)
The company must provide the following information, as applicable, to every shareholder of the company for the income year to enable the shareholder to calculate the amount of a deduction that may be allowed for the income year in relation to an asset to which subpart DG of that Act applies:
(a)
their share of a net asset balance for the income year:
(b)
their share of an outstanding profit balance for the income year:
(c)
other necessary information for the income year.
Section 30D: inserted (with effect on 1 April 2013), on 17 July 2013, by section 110 of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).
30E Statement to transferee by life insurer when transferring life insurance policies
A life insurer (the transferor) that transfers a life insurance policy to another life insurer (the transferee) in an income year and, immediately before the transfer, has an amount (the transferred amount) of policyholder base allowable deductions for the life insurance policy and the income year must, at the time of the transfer, give to the transferee a statement in a form approved by the Commissioner showing—
(a)
the names of the transferor and transferee; and
(b)
a description identifying the contracts being transferred; and
(c)
the date of the transfer; and
(d)
the total of transferred amounts for the contracts; and
(e)
details of the quantum, timing, and nature of the amounts making up the total transferred amount.
Section 30E: inserted (with effect on 1 April 2016), on 30 March 2017, by section 310 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
31 Maori authority to give notice of amounts distributed
(1)
A Maori authority that makes a taxable Maori authority distribution to a member must, at the time the distribution is made, give to the member a notice that contains the following details:
(a)
the name of the Maori authority:
(b)
the date the distribution is made:
(c)
the name and address, and the tax file number if the number is known by the Maori authority, of the member to whom the distribution is made:
(d)
the amount of the distribution made to the member, including what portion is a taxable distribution and what portion is a non-taxable distribution:
(e)
the amount of a Maori authority credit attached to the distribution or treated as being attached to the distribution under section RE 24 of the Income Tax Act 2007:
(eb)
the amount, if any, of the distribution paid to a retirement savings scheme as a retirement scheme contribution for the shareholder:
(ec)
the name of the retirement savings scheme to which any retirement scheme contribution was paid:
(ed)
the amount, if any, of Maori authority credit used to satisfy a liability of the company for RSCT:
(ee)
the amount, if any, of Maori authority credit remaining after the company has used an imputation credit in satisfying a liability for RSCT:
(f)
such other information as the Commissioner may require.
(2)
For the purposes of this section, a notice is treated as given to a member if it is delivered in a way described in section 14F(4) to—
(a)
the member; or
(b)
a person authorised to act on behalf of the member.
Section 31: replaced, on 26 March 2003 (applying for 2004–05 and subsequent income years), by section 88(1) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
Section 31(1)(e): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 31(1)(eb): inserted (with effect on 1 April 2007), on 19 December 2007, by section 194(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 31(1)(ec): inserted (with effect on 1 April 2007), on 19 December 2007, by section 194(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 31(1)(ed): inserted (with effect on 1 April 2007), on 19 December 2007, by section 194(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 31(1)(ed): amended, on 1 April 2008, by section 194(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 31(1)(ee): inserted (with effect on 1 April 2007), on 19 December 2007, by section 194(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 31(1)(ee): amended, on 1 April 2008, by section 194(3) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 31(2): replaced, on 2 June 2016, by section 99 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
31B Notification requirements for PIEs
(1)
An entity choosing under section HM 71 or HM 71B of the Income Tax Act 2007 to become a PIE or a foreign investment PIE, as applicable must notify the Commissioner of the election. The notice must be in the prescribed electronic format.
(1B)
A multi-rate PIE choosing to calculate and pay its income tax liability under an option set out in section HM 42, HM 43, or HM 44 of the Income Tax Act 2007 must comply with the notice requirements for making the election set out in the relevant provision.
(2)
A PIE choosing under section HM 29 of that Act to cancel PIE status must notify the Commissioner of the election. The notice must be in the prescribed electronic format and be provided within 1 month of the cancellation of PIE status.
Section 31B: replaced, on 1 April 2010 (applying for 2010–11 and later income years), by section 613(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 31B(1): amended, on 29 August 2011, by section 158(a) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section 31B(1): amended, on 29 August 2011, by section 158(b) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section 31B(1B): inserted, on 29 March 2018, by section 292 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
31C Notification requirements for multi-rate PIEs
(1)
This section sets out the notice requirements for a multi-rate PIE in relation to its investors or a proxy for investors in a multi-rate PIE. The notices must contain the information that the Commissioner considers relevant for a calculation period.
(2)
For an exiting investor and a PIE that calculates and pays tax using the quarterly calculation option under section HM 43 of the Income Tax Act 2007, the notice must be provided for each calculation period in which the exit period falls. The notice must be given by the end of the month following the quarter in which the exit period ends.
(2B)
Subsection (2C) applies when a PIE that calculates and pays tax using the quarterly calculation option makes a voluntary payment of tax under section HM 45 of that Act in relation to an exiting investor.
(2C)
Despite subsection (2), the PIE may provide the notice referred to in subsection (2) by 30 June after the end of the tax year, as if it were a notice described in subsection (3).
(3)
For an investor not referred to in subsection (2) who invests in a PIE that calculates and pays tax using the provisional tax calculation option under section HM 44 of that Act, the PIE must notify the investor—
(a)
by 31 May after the end of the tax year, if the PIE is not a superannuation fund or retirement savings scheme and has an income year ending before 31 May; or
(b)
by 30 June after the end of the tax year, if the PIE is a superannuation fund or retirement savings scheme and has an income year ending before 30 June; or
(c)
within 2 months after the end of the PIE’s income year, if neither of paragraphs (a) and (b) applies.
(4)
For an investor not referred to in subsections (2) and (3) who invests in a PIE that calculates and pays tax using the quarterly or exit calculation options under sections HM 42 and HM 43 of that Act, the PIE must notify the investor—
(a)
by 31 May after the end of the tax year, if the PIE is not a superannuation fund or retirement savings scheme; or
(b)
by 30 June after the end of the tax year, if the PIE is a superannuation fund or retirement savings scheme.
(5)
The PIE must, at least once in a tax year, ask an investor to provide their tax rate under sections HM 56 to HM 58 of that Act. However, this subsection does not apply in relation to a foreign investment PIE and a notified foreign investor.
(6)
The PIE must ask a person when they become an investor to provide their tax file number to the PIE. For each investor for whom no tax file number is held, the PIE must, at least once in a tax year, ask the investor to provide their tax file number.
(7)
A foreign investment PIE must ask a person who is a notified foreign investor in the PIE at least once a year to confirm that—
(a)
their status requirements under section HM 55D(3) of the Income Tax Act 2007 are met; and
(b)
their information details required under section 28D(1) are unchanged.
(8)
If the PIE receives no response to its request under subsection (7), they may continue to treat the investor as a notified foreign investor, if that is their existing treatment.
(9)
A notice required by this section may be given electronically to—
(a)
the investor, if the investor agrees to have the notice given in that way:
(b)
a person authorised to act on behalf of the investor, if the person and the investor agree to have the notice given in that way.
Section 31C: inserted, on 1 April 2010 (applying for 2010–11 and later income years), by section 613(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 31C(2B): inserted, on 29 August 2011, by section 159(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section 31C(2C): inserted, on 29 August 2011, by section 159(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section 31C(3): replaced, on 1 April 2011, by section 144 of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
Section 31C(4): replaced, on 1 April 2011, by section 144 of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
Section 31C(5): amended, on 18 March 2019, by section 29 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 31C(7): inserted, on 29 August 2011, by section 159(3) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section 31C(8): inserted, on 29 August 2011, by section 159(3) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section 31C(9): inserted, on 17 July 2013, by section 111 of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).
32 Records of specified charitable, benevolent, philanthropic, or cultural bodies
(1)
All gift-exempt bodies must keep in New Zealand sufficient records in English or te reo Māori to enable the Commissioner to determine both the sources of donations made to them and the application, within New Zealand or within a country or territory outside New Zealand, of their funds.
(1B)
For the purposes of subsection (1), a gift-exempt body must take reasonable steps to ensure the safe-keeping of their records relating to donations received or applied by them for a period of not less than 7 years after receiving a donation or applying an amount from their funds, except to the extent to which the Commissioner has notified them that retention of the records is not required or they have delivered the records to the Commissioner.
(2)
Despite subsection (1), on application by a gift-exempt body, the Commissioner may notify the body that they are authorised to keep the records in a language other than English or te reo Māori.
Section 32: replaced, on 2 September 1996 (applying to 1996–97 and subsequent income years), by section 41 of the Taxation (Remedial Provisions) Act 1996 (1996 No 159).
Section 32(1): amended, on 30 March 2025, by section 160(1) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
Section 32(1B): inserted, on 30 March 2025, by section 160(2) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
Section 32(2): replaced, on 2 June 2016, by section 100 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section 32(2): amended, on 30 March 2025, by section 160(3) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
32A Records to be provided by employer who contributes to superannuation fund
(1)
On application of a member or a trustee of a superannuation fund acting on a member’s behalf, a member’s employer, or a member’s past employer, must provide the member or trustee with a record of all employer’s superannuation cash contributions made by the employer on the member’s behalf in each of the 4 tax years before the tax year in which a withdrawal, being one to which section CS 1 of the Income Tax Act 2007 applies, is made.
(2)
[Repealed](3)
A person who receives an application under subsection (1) must provide the information, to the extent it is held or can be accessed, no later than 20 working days after the date on which the application is made.
(4)
When calculating the superannuation fund’s income under section CS 1 of the Income Tax Act 2007, the member and the trustee are entitled to rely on information provided under this section as being correct, and the information provided is treated as being correct unless the member or the trustee has reasonable grounds for believing that the information provided is not correct.
Section 32A: inserted, on 25 September 2000 (applying on and after 14 September 2000), by section 35(1) of the Taxation (FBT, SSCWT and Remedial Matters) Act 2000 (2000 No 34).
Section 32A(1): amended, on 2 June 2016, by section 101(1) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section 32A(1): amended (with effect on 1 April 2008), on 6 October 2009 (applying for 2008–09 and later income years), by section 614(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 32A(1): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 32A(1): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 32A(2): repealed, on 2 June 2016, by section 101(2) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section 32A(3): replaced, on 2 June 2016, by section 101(3) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section 32A(4): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 32A(4): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
32B Certification requirements for withdrawals subject to section CS 1 of Income Tax Act 2007
[Repealed]Section 32B: repealed, on 1 April 2011, by section 132 of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
32C Certification requirements for transfers from superannuation funds
[Repealed]Section 32C: repealed, on 1 April 2011, by section 133 of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
32D Disclosure requirements for purpose of continuity provisions and public unit trusts
(1)
On application by a trustee of a public unit trust, the unit holder must provide the trustee with a statement notifying them of persons associated with the unit holder.
(2)
[Repealed](3)
A unit holder who receives an application must provide the statement no later than 20 working days after the date on which the application is made.
(4)
The trustee is entitled to rely on the statement as being correct, and the statement is treated as being correct, unless the trustee has reasonable grounds for believing that the statement provided is not correct.
Section 32D: inserted, on 24 October 2001 (applying to 2001–02 and subsequent income years), by section 191(1) of the Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 (2001 No 85).
Section 32D heading: amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 32D(1): replaced, on 2 June 2016, by section 102(1) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section 32D(2): repealed, on 2 June 2016, by section 102(2) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section 32D(3): amended, on 2 June 2016, by section 102(3) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section 32D(3): amended, on 2 June 2016, by section 102(4) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Resident passive income
Heading: inserted, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
32E Applications for RWT-exempt status
(1A)
A person who is registered as a charitable entity under the Charities Act 2005 is treated as having RWT-exempt status for the duration of the registration.
(1)
A person listed in subsection (2) may apply to the Commissioner for RWT-exempt status.
(2)
The persons are—
(a)
a registered bank:
(b)
a building society:
(c)
the Public Trust or a company that would be a member of the same wholly-owned group of companies as the Public Trust, if it were a company for the purposes of this Act:
(d)
the Māori Trustee:
(e)
a statutory trustee company:
(eb)
a portfolio investment entity:
(ec)
the trustee of the Niue International Trust Fund:
(ed)
the trustee of the Tokelau International Trust Fund:
(f)
a person whose main business is—
(i)
borrowing money or accepting deposits, or receiving credit or selling a credit instrument; and
(ii)
lending money or granting credit, or buying or discounting a credit instrument:
(g)
a person that is—
(i)
a nominee company subject to practice rules made by the Council of the New Zealand Law Society under section 96 of the Lawyers and Conveyancers Act 2006 and operated by a barrister and solicitor or an incorporated law firm; or
(ii)
a broker’s nominee company to which the Securities Act (Contributory Mortgage) Regulations 1988 apply:
(h)
a practitioner within the meaning of the Lawyers and Conveyancers Act 2006 or incorporated firm within the meaning of that Act in relation to the operation of their trust account which is an account maintained under section 112 of that Act:
(i)
a person—
(i)
who has met their obligation to file a return of income under the Inland Revenue Acts within the time allowed; and
(ii)
whose annual gross income for the tax year for which they last filed a return of income is more than $2,000,000:
(j)
a person in an accounting year who reasonably believes their annual gross income for the tax year that corresponds to the next accounting year will be more than $2,000,000:
(k)
a person who derives in a tax year an amount that is exempt income under sections CW 38(2), CW 38B(2), CW 39(2), CW 40 to CW 52, CW 55BC, and CW 64 of the Income Tax Act 2007 in relation to their activities in the capacity in which they derive the exempt income:
(kb)
a board that is constituted under subpart 5 of Part 3 of the Education and Training Act 2020 and is not carried on for the private pecuniary profit of any individual:
(kc)
(kd)
a tertiary education subsidiary that derives exempt income under section CW 55BA of the Income Tax Act 2007:
(l)
a person to whom section DV 8 of the Income Tax Act 2007 applies and who would, but for that section, have net income of an amount less than the amount set out in the section for their most recently ended accounting year.
(3)
The person must apply to the Commissioner, and the application must—
(a)
state the basis of exemption under subsection (2); and
(b)
include a declaration by the person or an officer authorised by them that they come within the basis of exemption.
(4)
The person must provide further information in relation to the application as the Commissioner requires.
Compare: 2004 No 35 s NF 9(1)–(3)
Section 32E: inserted, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 32E heading: amended, on 1 April 2020, by section 293(1) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 32E(1A): inserted, on 1 April 2020, by section 98 of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).
Section 32E(1A): amended (with effect on 1 April 2020), on 28 March 2024, by section 134 of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
Section 32E(1A): amended, on 1 April 2020, by section 202 of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 32E(1): amended, on 1 April 2020, by section 293(2) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 32E(2)(d): amended, on 1 July 2009, pursuant to section 30(2)(a) of the Māori Trustee Amendment Act 2009 (2009 No 12).
Section 32E(2)(ec): inserted, on 6 October 2009, by section 616(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 32E(2)(ed): inserted, on 6 October 2009, by section 616(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 32E(2)(i)(ii): replaced (with effect on 1 April 2008), on 6 October 2009, by section 616(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 32E(2)(k): amended, on 27 August 2025, by section 113(1) (and see section 113(2) for application) of the Local Government (Water Services) (Repeals and Amendments) Act 2025 (2025 No 43).
Section 32E(2)(k): amended, on 18 March 2019, by section 30 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 32E(2)(k): amended (with effect on 1 April 2008 and applying for the 2008–09 and later income years), on 29 March 2018, by section 293(3) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 32E(2)(kb): inserted, on 1 July 2008, by section 55 of the Taxation (Personal Tax Cuts, Annual Rates, and Remedial Matters) Act 2008 (2008 No 36).
Section 32E(2)(kb): amended, on 1 August 2020, by section 668 of the Education and Training Act 2020 (2020 No 38).
Section 32E(2)(kc): inserted, on 1 July 2008, by section 55 of the Taxation (Personal Tax Cuts, Annual Rates, and Remedial Matters) Act 2008 (2008 No 36).
Section 32E(2)(kc): amended, on 23 August 2023, by section 51 of the Education and Training Amendment Act 2023 (2023 No 45).
Section 32E(2)(kc): amended, on 1 August 2020, by section 668 of the Education and Training Act 2020 (2020 No 38).
Section 32E(2)(kd): inserted (with effect on 1 July 2008), on 29 March 2018, by section 293(4) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 32E(3): amended, on 2 June 2016, by section 103 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
32F Calculation of annual gross income when threshold met
(1)
For the purposes of section 32E(2)(i), when the person is part of a group of companies, the person’s annual gross income is determined by—
(a)
including the total annual gross income in the tax year of other group companies; and
(b)
excluding an amount of assessable income derived by the company or another company in the same group from a transaction or series of related or connected transactions with another company in the group.
(2)
For the purposes of this section, a group of companies includes a limited partnership that would be a member of the group of companies if the partnership were treated as being a company and each partner were treated as holding a proportion of the total shares in the company equal to the proportion of the partnership share the partner has in a right, obligation, or other property, status, or thing of the partnership.
Compare: 2004 No 35 s NF 9(8), (10)
Section 32F: inserted, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 32F(2): inserted (with effect on 1 April 2008), on 29 March 2025, by section 161(1) (and see section 161(2) for application) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
32G Evidence of annual gross income and consequences of failure to meet threshold
(1)
This section applies when a person’s application for RWT-exempt status is based on their meeting the requirements in section 32E(2)(j).
(2)
The person must provide evidence to satisfy the Commissioner of their annual gross income for the accounting year. They must provide the evidence within the 3-month period after the end of the accounting year.
(3)
For the purposes of subsection (2), the Commissioner may require further evidence, and also for the purposes of section 32L.
(4)
If the person’s annual gross income for the tax year referred to in section 32E(2)(j) is less than $2,000,000, they are liable for late payment penalties in relation to an amount received or derived by them that would have been withheld under the RWT rules, had they not had RWT-exempt status. Section 139B applies to the person as if—
(a)
they had failed to withhold an amount of tax; and
(b)
the default occurred on each day on which they received or derived a payment from which RWT would otherwise have been withheld.
(5)
In the calculation of estimated annual gross income of a company that anticipates that it will be part of a group of companies for the tax year referred to in section 32E(2)(j), the estimated annual gross income of all other group companies is included.
(6)
Despite subsection (5), in the calculation of the annual gross income of a company for the purposes of this section, an amount of income derived by them or another company in the same group of companies from a transaction or series of related or connected transactions with another company in the group is excluded.
(7)
Despite subsections (2) and (4), the Commissioner may provide RWT-exempt status to, or allow RWT-exempt status to be retained by, a person who does not meet the requirements of section 32E(2)(j) if the Commissioner considers that the failure is solely a consequence of extraordinary circumstances that are—
(a)
beyond the person’s reasonable control; and
(b)
unlikely to be repeated in later accounting years.
(8)
For the purposes of subsection (6), the Commissioner may remit some or all of a late payment penalty if the Commissioner considers that the failure is solely a consequence of extraordinary circumstances that the person could not reasonably be expected to have foreseen.
Compare: 2004 No 35 s NF 9(6), (7), (9)–(11)
Section 32G: inserted, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 32G(1): amended, on 1 April 2020, by section 294(1) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 32G(4): amended, on 1 April 2020, by section 294(2) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 32G(7): amended, on 1 April 2020, by section 294(3) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
32H RWT-exempt status when persons meet requirements
(1)
When a person who meets the requirements of section 32E applies to the Commissioner for RWT-exempt status, the Commissioner must—
(a)
publish the person’s tax file number and the start date and, if applicable, the end date on the electronic register of persons with RWT-exempt status; and
(b)
notify the person of the issue of the status, and the start and end date, as applicable.
(2)
A person’s RWT-exempt status takes effect on the start date provided in the electronic register.
(3)
For the purposes of the provisions relating to investment income information, if a person has been issued with, or holds, or retains, or is allowed to retain, an RWT exemption certificate that remains current, they are treated as having RWT-exempt status if their details appear on the electronic register referred to in subsection (1).
Section 32H: replaced, on 1 April 2020, by section 295 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
32I Providing RWT-exempt status to person who does not meet requirements
(1)
Despite section 32H, the Commissioner may provide RWT-exempt status to the person when they do not meet the requirements in section 32E(2) if the person—
(a)
will, or is likely to, have for the period, total deductions under the Income Tax Act 2007 that are not less than the total amount of assessable income of the person for the period; or
(b)
would have, or would likely have, in a part of a tax year that falls in the period, total tax credits under section LB 3 of the Income Tax Act 2007 for resident passive income that are more than the income tax liability of the person for the tax year by an amount not less than $500.
(2)
Despite subsection (1), the Commissioner may not provide RWT-exempt status to a person unless they have applied as described in section 32E(3), and include in the application a set of budgeted accounts with details, for the period, of the person’s projected—
(a)
total amount of assessable income:
(b)
total deductions:
(c)
tax credits for resident passive income:
(d)
income tax liability.
(3)
For the purposes of subsection (2), the Commissioner may require the person to provide further information.
(4)
[Repealed](5)
[Repealed]Compare: 2004 No 35 s NF 9(12)–(14)
Section 32I: inserted, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 32I heading: amended, on 1 April 2020, by section 296(1) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 32I(1): amended, on 1 April 2020, by section 296(2) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 32I(2): amended, on 1 April 2020, by section 296(3) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 32I(2): amended, on 2 June 2016, by section 104 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section 32I(4): repealed, on 1 April 2020, by section 296(4) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 32I(5): repealed, on 1 April 2020, by section 296(4) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
32IB Calculation of amounts for partnerships
For the purposes of sections 32E(2)(f), (i), and (j) and 32I, when the person is a partnership, the following amounts are determined ignoring section HG 2 of the Income Tax Act 2007:
(a)
the person’s annual gross income:
(b)
the person’s—
(i)
total amount of assessable income:
(ii)
total deductions:
(iii)
tax credits for resident passive income:
(iv)
income tax liability.
Section 32IB: inserted (with effect on 1 April 2008), on 29 March 2025, by section 162(1) (and see section 162(2) for application) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
32J RWT-exempt status for unincorporated bodies
(1)
When the Commissioner provides RWT-exempt status to an unincorporated body described in section RE 30 of the Income Tax Act 2007,—
(a)
the named body has the RWT-exempt status; and
(b)
no member of the body may have RWT-exempt status in relation to a taxable activity carried on by the body.
(2)
For the purposes of the RWT rules and RWT-exempt status, a notice to the body is treated as served on the body and on each member of the body.
Section 32J: replaced, on 1 April 2020, by section 297 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
32JB RWT-exempt status for limited partnerships
(1)
When the Commissioner provides RWT-exempt status to a limited partnership described in section RE 31 of the Income Tax Act 2007,—
(a)
the limited partnership has the RWT-exempt status; and
(b)
no limited partner of the limited partnership may have RWT-exempt status in their capacity as a limited partner of the limited partnership.
(2)
For the purposes of the RWT rules and RWT-exempt status, a notice to the limited partnership is treated as served on the limited partnership and on each of its partners.
Section 32JB: inserted (with effect on 1 April 2008), on 29 March 2025, by section 163(1) (and see section 163(2) for application) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
32K Failing to meet basis of exemption
(1)
This section applies when a person who has RWT-exempt status no longer meets the requirements on which their exemption is based.
(2)
If the person becomes aware that they no longer meet the requirements, they must notify the Commissioner within a period of 5 days after the day on which they become aware.
(3)
The Commissioner may ask the person to provide the full name and last known address of all persons to whom they have advised their RWT-exempt status for the purposes of obtaining an exemption from withholding the amount of tax from a payment of resident passive income. The person must respond to the Commissioner’s request within 5 days.
Compare: 2004 No 35 s NF 11(1)
Section 32K: inserted, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 32K(1): amended, on 1 April 2020, by section 298(1) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 32K(2): replaced, on 1 April 2020, by section 298(2) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 32K(3): amended, on 1 April 2020, by section 298(3) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
32L Revocation of RWT-exempt status
(1)
The Commissioner may revoke a person’s RWT-exempt status at any time if—
(a)
the Commissioner reasonably believes that the person no longer meets the requirements on which their exemption is based; or
(b)
the person did not meet the requirements on which their exemption was based, having acquired the status through misleading information; or
(c)
the person should not have been provided with RWT-exempt status; or
(d)
the person’s RWT-exempt status was based on a ground set out in section 32E(2)(i) or (j), and the evidence provided under section 32G—
(i)
shows the person did not meet the threshold; or
(ii)
is unsatisfactory; or
(iii)
is materially incorrect or misleading; or
(e)
the person is liable for income tax that remains unpaid by the due date for payment.
(2)
The Commissioner must notify the person whose status has been revoked within 30 working days of the revocation. The Commissioner may also make a request under section 32K(3) with which the person must comply.
(3)
Despite subsection (1), if the Commissioner considers that a person referred to in subsection (1)(a) to (d) is a person to whom section 32G applies and has a further basis for RWT-exempt status, the Commissioner must not revoke the status.
(4)
A person referred to in subsection (2) must, within 5 days of being notified by the Commissioner, notify every person that they have advised of their RWT-exempt status and from whom they expect to receive further payments of resident passive income that their status has been revoked.
(5)
The Commissioner must publish on an electronic register, a list of all persons whose RWT-exempt status has been revoked.
Section 32L: replaced, on 1 April 2020, by section 299 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Non-resident passive income
Heading: inserted, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
32M Persons with approved issuer status
(1)
A person who borrows, has borrowed, or will borrow money is eligible to elect to pay approved issuer levy in relation to a security for the purposes of—
(a)
the NRWT rules:
(b)
an exemption under a double tax agreement.
(1B)
A limited partnership that borrows or lends money, ignoring section HG 2 of the Income Tax Act 2007, is also a person who is eligible to elect to pay approved issuer levy in relation to a security for the purposes of—
(a)
the NRWT rules:
(b)
an exemption under a double tax agreement.
(2)
For the purposes of subsection (1), the person elects to pay approved issuer levy in relation to a security by—
(a)
either being an approved issuer or becoming an approved issuer under subsection (2B); and
(b)
applying under section 86G of the Stamp and Cheque Duties Act 1971 to register the security; and
(c)
paying the amount of the levy for the security under section 86I of that Act.
(2B)
A person becomes an approved issuer by—
(a)
notifying the Commissioner that they wish to have approved issuer status; or
(b)
being treated as an approved issuer by the Commissioner because the person has paid interest under a security, and—
(i)
the security is a notional loan under section FG 2 of the Income Tax Act 2007, and NRWT was not withheld from the interest under section RF 3 of that Act; or
(ii)
an amount of the interest was apportioned to a New Zealand source under section YD 5(4) of the Income Tax Act 2007, and NRWT was not withheld from the amount under section RF 3 of that Act.
(2C)
Despite subsection (2B), if the Commissioner backdates a person’s date of registration of a security under section 86H(3) of the Stamp and Cheque Duties Act 1971, the person is treated as being an approved issuer from that backdated date of registration.
(3)
The Commissioner may revoke a person’s approved issuer status at a particular time if—
(a)
the Commissioner considers that the person has been responsible for serious default or neglect in complying with their obligations under the Inland Revenue Acts in the 2-year period leading up to that time; or
(b)
subsection (2B)(b) does not apply to the person, and the person asks for revocation of the status.
(4)
The Commissioner must notify the person of a revocation under subsection (3).
(4B)
If the Commissioner revokes a person’s approved issuer status under subsection (3) within 20 working days of having been notified under subsection (2B), the revocation applies from the date of notification.
(5)
Despite subsection (3), the person continues to have approved issuer status for the purposes of the NRWT rules, an exemption under a double tax agreement, and Part 6B of the Stamp and Cheque Duties Act 1971, as applicable in relation to a payment of interest made after the date of revocation for money lent to the person under a registered security while the person was an approved issuer and before the date of the revocation.
Compare: 2004 No 35 ss NG 5–NG 7
Section 32M: inserted, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 32M(1): replaced (with effect on 1 August 2010), on 21 December 2010, by section 145(1) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
Section 32M(1B): inserted (with effect on 1 April 2008), on 29 March 2025, by section 164(1) (and see section 164(4) for application) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
Section 32M(2): replaced (with effect on 1 August 2010), on 21 December 2010, by section 145(1) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
Section 32M(2): amended (with effect on 1 April 2008, until the replacement of section 32M(2) with effect on 1 August 2010), on 29 March 2025, by section 164(2) (and see section 164(4) for application) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
Section 32M(2B): replaced, on 30 March 2017, by section 311(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section 32M(2C): inserted, on 1 April 2025, by section 164(3) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
Section 32M(3)(b): replaced, on 30 March 2017, by section 311(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section 32M(4B): inserted (with effect on 1 August 2010), on 21 December 2010, by section 145(2) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
Section 32M(5): amended (with effect on 1 August 2010), on 21 December 2010, by section 145(3) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
Foreign dividends[Repealed]
Heading: repealed (with effect on 30 June 2009), on 6 October 2009 (applying for all income years beginning on or after 1 July 2009), by section 617(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
32N Information requirements when payments for foreign dividends reduced
[Repealed]Section 32N: repealed (with effect on 30 June 2009), on 6 October 2009 (applying for all income years beginning on or after 1 July 2009), by section 617(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Subpart 3G—Returns
Subpart 3G heading: inserted, on 1 April 2019, by section 300 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Returns, etc[Repealed]
Heading: repealed, on 1 April 2019, by section 300 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
33 Returns of income
(1)
In each tax year, a person, other than a person who derives only exempt income, must file a return of income for a tax year in the form and with the particulars prescribed by the Commissioner.
(1B)
In an income year, a trust, society or institution to which section CW 41 or CW 42 of the Income Tax Act 2007 applies, may furnish to the Commissioner a return of income in the prescribed form for the preceding tax year, together with such other particulars as may be prescribed if the trust, society or institution receives a taxable Maori authority distribution.
(1C)
A multi-rate PIE or a proxy for an investor in the entity that calculates income tax using the exit calculation or quarterly calculation options under sections HM 42 and HM 43 of that Act must provide returns for which the entity is responsible under section 57B.
(1D)
An individual must provide information to the Commissioner on their assessable income for a tax year under Part 3, subpart 3B. The individual is treated as having made a return of income in their final account for the tax year under section 22I(1).
(2)
A return must contain a notice of the assessment required to be made under section 92.
(3)
Subsection (2) does not apply if subsection (1B) applies.
(4)
The nominated company for a consolidated group is treated as a taxpayer for the purposes of this section. A company that is a member of a consolidated group in a tax year must not provide a separate return for a tax year, but this restriction applies only to a tax year, or a part of a tax year, in which the company is part of the group.
Section 33: replaced, on 24 October 2001 (applying to 2002–03 and subsequent income years), by section 192(1) of the Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 (2001 No 85).
Section 33 heading: amended (with effect on 1 October 2007), on 19 December 2007, by section 196(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 33 heading: amended, on 26 March 2003 (applying for 2004–05 and subsequent income years), by section 89(1) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
Section 33(1): replaced, on 1 April 2019, by section 31(1) (and see section 31(3) for application) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 33(1): amended, on 1 April 2025, by section 165 of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
Section 33(1B): inserted, on 26 March 2003 (applying for 2004–05 and subsequent income years), by section 89(2) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
Section 33(1B): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 33(1B): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 33(1C): replaced, on 1 April 2010 (applying for 2010–11 and later income years), by section 618(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 33(1D): inserted, on 1 April 2019, by section 31(2) (and see section 31(3) for application) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 33(3): inserted, on 26 March 2003 (applying for 2004–05 and subsequent income years), by section 89(3) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
Section 33(4): inserted, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
33AA Exceptions to requirement for return of income
[Repealed]Section 33AA: repealed, on 1 April 2019, by section 32(1) (and see section 32(2) for application) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
33A Annual returns of income not required
[Repealed]Section 33A: repealed, on 1 April 2016 (applying for the 2016–17 tax year, or earlier tax year set by Order in Council, and later tax years), by section 179(1) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).
33B Return not required for certain scheduler gross income
[Repealed]Section 33B: repealed (with effect on 25 November 2003), on 21 December 2004 (applying for 2003–04 and subsequent income years), by section 90(1) of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).
33C Return not required for certain providers of personal services
[Repealed]Section 33C: repealed, on 1 April 2019, by section 32(1) (and see section 32(2) for application) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
33D Return not required for non-resident seasonal worker
[Repealed]Section 33D: repealed, on 1 April 2019, by section 32(1) (and see section 32(2) for application) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
33E Research and development tax credits: supplementary return
A person who is entitled to a research and development tax credit must file a research and development supplementary return for a tax year in an electronic format prescribed by the Commissioner on or before the day that is 30 days after—
(a)
the due date on which they are required to file a return of income for the tax year under section 37; or
(b)
the due date on which they would be required to file a return under section 37, if they had assessable income.
Section 33E: inserted, on 1 April 2019, by section 27 (and see section 3 for application) of the Taxation (Research and Development Tax Credits) Act 2019 (2019 No 15).
Section 33E: deadline to file supplementary return extended to 31 March 2023, on 20 February 2023, by clause 4(2) (and see clauses 4(1) and 5 for application) of the Tax Administration (Research and Development Tax Credit Deadlines for Taxpayers Affected by Weather Events) Order 2023 (SL 2023/11).
33F Research and development tax credits: extension of time for 2019–20 income year
The time for a person to file a supplementary return under section 33E for the 2019–20 income year is extended to 31 August 2021, or such later date otherwise allowed by that section.
Section 33F: inserted (with effect on 1 April 2019), on 30 March 2022, by section 191 of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
33G Research and development tax credits: extension of time if approval corrected
(1)
An extension of time is available for a person to file a supplementary return under section 33E if—
(a)
the person applies to the Commissioner under section 68CB(3C) or 68CC(4C); and
(b)
the Commissioner approves the person’s application.
(2)
The time for a person to file a supplementary return under subsection (1) is extended to the day that is 30 days after the Commissioner amends the approval.
Section 33G: replaced (with effect on 1 April 2020), on 29 March 2025, by section 166(3) (and see section 166(5) for application) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
Section 33G: inserted (with effect on 1 April 2019), on 29 March 2025, by section 166(2) (and see section 166(4) for application) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
33G Research and development tax credits: extension of time if approval corrected
[Repealed]Section 33G: repealed (with effect on 1 April 2021), on 29 March 2025, by section 166(1) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
Section 33G: inserted (with effect on 1 April 2021), on 4 June 2024, by section 41 of the Taxation (Budget Measures) Act 2024 (2024 No 19).
34 Presumption as to authority of person making return
A return purporting to be made by or on behalf of any person shall for all purposes be deemed to have been made by that person or by that person’s authority, as the case may be, unless the contrary is proved.
Compare: 1976 No 65 s 18
34B Commissioner to list tax agents
[Repealed]Section 34B: repealed, on 18 March 2019, by section 33 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
35 Power of Commissioner to prescribe forms
(1)
For the purposes of the Inland Revenue Acts and any other Acts administered by the department, the Commissioner may from time to time prescribe any forms and any electronic formats that are not otherwise specifically prescribed.
(2)
For the purposes of the Inland Revenue Acts, the Commissioner may allow a person to provide the information required in a prescribed form in a manner other than writing if the Commissioner is satisfied that in the circumstances it is appropriate.
(3)
The production by the Commissioner of any document purporting to be—
(a)
a prescribed form or an extract from a prescribed form or a copy of any such form or extract; or
(b)
[Repealed]shall in all courts and in all proceedings (including proceedings before a Taxation Review Authority) be sufficient evidence of the fact that the form or electronic format was prescribed.
Compare: 1974 No 133 s 22A
Section 35(2): inserted, on 21 February 2017, by section 108 of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
Section 35(3)(b): repealed, on 1 April 1999, by section 10(1) of the Taxation (Simplification and Other Remedial Matters) Act 1998 (1998 No 101).
36 Commissioner may approve furnishing of return information by electronic means
(1)
For the purposes of this Act, the Income Tax Act 2007, and the Goods and Services Tax Act 1985, the Commissioner may give approval to any taxpayer or registered person, or to any agent of any taxpayer or registered person, to transmit by electronic means in the prescribed electronic format the information contained in any return of the taxpayer or registered person.
(2)
Any approval given under subsection (1)—
(a)
may relate to an individual taxpayer or registered person or agent or to any class or classes of taxpayers or registered persons:
(b)
may relate to any 1 or more classes of return:
(c)
shall be subject to any conditions that may be specified by the Commissioner, whether generally or in any particular case.
(3)
Where a taxpayer or registered person, or agent of a taxpayer or registered person, transmits to the Commissioner in the prescribed electronic format the information contained in any return of the taxpayer or registered person in accordance with an approval given under subsection (1),—
(a)
the taxpayer or registered person shall retain or cause to be retained the information in—
(i)
a hard-copy transcript:
(ii)
an electronic form meeting the requirements of section 229 of the Contract and Commercial Law Act 2017; and
(b)
if no electronic form under paragraph (a)(ii) of a return is retained, and the return is not an employer monthly schedule or annual reconciliation statement under section 57B, the hard-copy transcript must be signed under section 40 and held by the taxpayer or registered person on behalf of the Commissioner; and
(ba)
[Repealed](c)
the information transmitted to the Commissioner shall be treated for the purposes of this Act and the Goods and Services Tax Act 1985 as if it were a return furnished under such provisions of this Act or the Goods and Services Tax Act 1985 as relate to the kind of return in question.
(4)
[Repealed]Section 36: replaced, on 12 December 1995, by section 4(1) of the Tax Administration Amendment Act (No 3) 1995 (1995 No 77).
Section 36(1): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 36(3)(a): replaced, on 2 November 2012, by section 182 of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).
Section 36(3)(a)(ii): amended, on 1 September 2017, by section 347 of the Contract and Commercial Law Act 2017 (2017 No 5).
Section 36(3)(b): replaced, on 2 November 2012, by section 182 of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).
Section 36(3)(ba): repealed, on 2 November 2012, by section 182 of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).
Section 36(4): repealed, on 29 March 2018, by section 302 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
36A Electronic format of employer monthly schedule and PAYE payment form
[Repealed]Section 36A: repealed, on 1 April 2019, by section 303 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
36AB Electronic return requirements for multi-rate PIEs
[Repealed]Section 36AB: repealed, on 1 April 2020, by section 304 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
36B Other formats of employer monthly schedule
[Repealed]Section 36B: repealed, on 1 April 2019, by section 305 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
36BB Electronic format for details required for tax pooling intermediaries
The Commissioner may prescribe 1 or more electronic formats in which details that must be provided under sections RP 17 to RP 21 of the Income Tax Act 2007, and sections 124S to 124W and 124ZF may be provided by electronic means.
Section 36BB: inserted, on 1 April 2003, by section 92 of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
Section 36BB heading: amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 36BB: amended, on 1 April 2020, by section 203 of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 36BB: amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
36BC Electronic format for details required under subpart EK of Income Tax Act 2007
The Commissioner may prescribe 1 or more electronic formats in which details that must be provided under subpart EK of the Income Tax Act 2007 may be provided by electronic means.
Section 36BC: inserted, on 21 June 2005, by section 127 of the Taxation (Base Maintenance and Miscellaneous Provisions) Act 2005 (2005 No 79).
Section 36BC heading: amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 36BC: amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
36BD Electronic filing requirements for registered persons
(1)
The Commissioner must prescribe 1 or more electronic forms or means of electronic communication that—
(a)
a registered person may use to file a return required under the Goods and Services Tax Act 1985; or
(b)
a registered person whose taxable supplies exceed the threshold set out in subsection (2) must use to file a return under that Act.
(2)
The Governor-General may, on the recommendation of the Minister of Revenue, make an Order in Council setting a threshold for the value of taxable supplies of a registered person that means the person is required to use an electronic form or means of electronic communication for filing a return under that Act. Before making the recommendation, the Minister must undertake consultation on the proposed threshold that is appropriate and reasonable for the purposes of this section.
(3)
The Commissioner may exempt a registered person, or a class of registered persons, whose taxable supplies exceed the threshold from the requirement to file in the prescribed electronic form or by the prescribed means of electronic communication. The Commissioner must provide a statement of reasons for the exemption.
(4)
In determining under subsection (3) whether to exempt the person or class of persons, the Commissioner must have regard to—
(a)
the nature and availability of digital services to the person or persons in the class, including the reliability of those services for the purposes of the person or persons; and
(b)
the capability of the person or persons in the class relating to the use of computers; and
(c)
the costs that the person or persons in the class would incur in complying with the requirements if those costs would be unreasonable in the circumstances.
(5)
Subject to subsection (6), an exemption under this section remains valid until the Commissioner notifies the registered person that the exemption is to be cancelled. The exemption expires on the date that is 6 months after that given in the Commissioner’s notice.
(6)
In making an exemption under this section, the Commissioner may set a time limit on the exemption, stating a start date and an end date, as applicable, for the exemption and the reason for setting the limit.
(7)
The following are secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements):
(a)
an order under subsection (2):
(b)
an exemption under subsection (3), unless it applies only to 1 or more named persons.
| Legislation Act 2019 requirements for secondary legislation made under subsection (2) | ||||
| Publication | PCO must publish it on the legislation website and notify it in the Gazette | LA19 s 69(1)(c) | ||
| Presentation | The Minister must present it to the House of Representatives | LA19 s 114, Sch 1 cl 32(1)(a) | ||
| Disallowance | It may be disallowed by the House of Representatives | LA19 ss 115, 116 | ||
| This note is not part of the Act. | ||||
| Legislation Act 2019 requirements for secondary legislation made under subsection (3) | ||||
| Publication | It is not required to be published | LA19 s 73(2) | ||
| Presentation | It is not required to be presented to the House of Representatives because a transitional exemption applies under Schedule 1 of the Legislation Act 2019 | LA19 s 114, Sch 1 cl 32(1)(a) | ||
| Disallowance | It may be disallowed by the House of Representatives | LA19 ss 115, 116 | ||
| This note is not part of the Act. | ||||
Section 36BD: inserted, on 29 March 2018, by section 306 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 36BD(5): amended, on 1 April 2020, by section 35 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 36BD(7): replaced, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
36BE Research and development tax credits: electronic formats
(1)
The Commissioner must prescribe 1 or more electronic formats in which a research and development supplementary return under section 33E must be filed.
(2)
The Commissioner may, from time to time, set specifications for software for use in populating the research and development supplementary return, and related criteria for the use of specified software.
Section 36BE: inserted, on 1 April 2019, by section 28 (and see section 3 for application) of the Taxation (Research and Development Tax Credits) Act 2019 (2019 No 15).
36C Particulars furnished in electronic format
(1)
In the application of any of sections 33E, 35, 36, 36A, 36AB, 36B, 36BB, 36BC, 36BD, or 36BE, information that is required to be furnished electronically is not in a prescribed format unless it is furnished in an electronic format certified by the Commissioner as being the prescribed electronic format.
(2)
The production by the Commissioner of a document purporting to be a printed copy of a specification of an electronic format or a part of that specification, in all courts and in all proceedings (including proceedings before a Taxation Review Authority), is sufficient evidence that the electronic format was prescribed.
Section 36C: inserted, on 7 October 1998 (applying to employer monthly schedules, forms, and returns furnished on or after 1 April 1999), by section 12(1) of the Taxation (Simplification and Other Remedial Matters) Act 1998 (1998 No 101).
Section 36C(1): amended, on 1 April 2019, by section 29 (and see section 3 for application) of the Taxation (Research and Development Tax Credits) Act 2019 (2019 No 15).
Section 36C(1): amended, on 29 March 2018, by section 307 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 36C(1): amended (with effect on 1 October 2007), on 7 September 2010, by section 134 of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
36CA Electronic filing exemption for new businesses
[Repealed]Section 36CA: repealed, on 1 April 2019, by section 308 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
36D Non-electronic filing of employer monthly schedule
[Repealed]Section 36D: repealed, on 1 April 2019, by section 308 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
36E Election available to other employers
[Repealed]Section 36E: repealed, on 1 April 2019, by section 309 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Returns and return dates
Heading: inserted, on 1 April 2019, by section 309 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
37 Dates by which annual returns to be furnished
(1)
The annual returns of income required under this Act shall be furnished to the Commissioner as follows:
(a)
[Repealed](b)
in the case of any taxpayer with a late balance date, not later than the seventh of the month which is the fourth month after the end of the taxpayer’s corresponding income year:
(c)
in all other cases, not later than 7 July in each year.
(1B)
For the purposes of this section, an annual return of income for an individual to whom Part 3, subpart 3B applies, means a final account described in section 22D(6) containing the income information of the individual for the tax year.
(2)
The Commissioner shall give public notice of the days by which the returns are required to be furnished by publishing the notice in such manner as the Commissioner thinks fit; but the omission to give any such notice shall not affect the liability of any person to furnish any return within the time prescribed by this section in that behalf.
(3)
Subject to subsection (5), where any taxpayer satisfies the Commissioner that the taxpayer is unable to furnish the required return by the due date required under this section, the Commissioner, upon application by or on behalf of the taxpayer on or before that date, or within such further period as the Commissioner may allow in any case or class of cases, may extend the time for furnishing the required return to such date as the Commissioner thinks proper in the circumstances.
(3B)
Subject to subsection (5), an extension of time to a date advised by the Commissioner is available to a person or a class of persons if—
(a)
a systems issue arises for an Inland Revenue digital platform resulting in a person or class of persons being prevented from, or being otherwise hindered or disadvantaged in, providing the required return or income information; and
(b)
a proportionate extension of time is considered proper in the circumstances.
(4)
Subject to subsection (5), the Commissioner may extend a tax agent’s time for furnishing a return of income for any taxpayer to a date the Commissioner thinks proper in the circumstances, if the Commissioner is satisfied that—
(a)
the tax agent is unable to furnish the return of income on or before the date set by subsection (1); or
(b)
it would be unreasonable, having regard to the circumstances of the tax agent preparing the return, to require the return to be furnished on or before the date set by subsection (1).
(4A)
If a tax agent has not furnished for a tax year the required number of tax returns by the dates specified by the Commissioner, the Commissioner may:
(a)
refuse to grant an extension of time under subsection (4) for furnishing 1 or more tax returns that are linked to the tax agent; and
(b)
cancel any existing extension of time arrangement granted under subsection (4) for the tax years for which the tax agent has not furnished the required number of tax returns by the dates specified by the Commissioner; and
(c)
cancel any existing extension of time arrangement granted under subsection (4) for 1 or more returns, but not necessarily all returns, for the tax years for which the tax agent has not furnished the required number of tax returns by the dates specified by the Commissioner.
(4B)
If the Commissioner extends under subsection (4) the time for a person listed as a tax agent to furnish a return of income for a taxpayer and the person ceases to be a tax agent before the extension of time would have expired, the Commissioner must extend the taxpayer’s time for furnishing the return to a date of 31 March on or after the date that would have applied if the person had continued to be a tax agent.
(5)
For the purposes of subsections (3) and (4),—
(a)
where the return required to be furnished by any taxpayer is a return for a year ending on 31 March, the time for furnishing that return shall not be extended or further extended to a time later than the 31 March that immediately succeeds that 31 March:
(b)
where the return required to be furnished by any taxpayer is, by consent of the Commissioner under section 38, a return for a year ending with the date of the annual balance of the accounts of the taxpayer, the time for furnishing that return shall,—
(i)
where that date is between 30 September and the next succeeding 31 March, not be extended or further extended to a time later than the 31 March next succeeding the 31 March that immediately succeeds that date:
(ii)
where that date is between 31 March and the next succeeding 1 October, not be extended or further extended to a time later than the 31 March that immediately succeeds that date.
(6)
[Repealed]Compare: 1976 No 65 s 17
Section 37(1)(a): repealed, on 7 October 1998 (applying to 1999–2000 and subsequent income years), by section 14(1) of the Taxation (Simplification and Other Remedial Matters) Act 1998 (1998 No 101).
Section 37(1)(b): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 37(1B): inserted, on 1 April 2019, by section 36(1) (and see section 36(3) for application) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 37(3): amended, on 23 September 1997, by section 70 of the Taxation (Remedial Provisions) Act 1997 (1997 No 74).
Section 37(3B): inserted, on 1 April 2019, by section 36(2) (and see section 36(3) for application) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 37(4): replaced, on 27 March 1998 (applying to 1997–98 and subsequent income years), by section 43(1) of the Taxation (Remedial Provisions) Act 1998 (1998 No 7).
Section 37(4A): replaced, on 20 May 1999 (applying on and after 20 May 1999), by section 66(1) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
Section 37(4A): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 37(4A)(b): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 37(4A)(c): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 37(4B): inserted, on 19 December 2007, by section 200 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 37(6): repealed, on 7 October 1998 (applying to 1999–2000 and subsequent income years), by section 14(2) of the Taxation (Simplification and Other Remedial Matters) Act 1998 (1998 No 101).
38 Returns to annual balance date
(1)
Instead of furnishing a tax year return under section 33 on the basis of a corresponding income year that ends on 31 March, a taxpayer may, with the consent of the Commissioner, elect to furnish a return based on a corresponding income year that ends with the date of the annual balance of the taxpayer’s accounts.
(1B)
A multi-rate PIE that does not calculate and pay tax using the provisional tax calculation option under section HM 44 of the Income Tax Act 2007 must not make an election under subsection (1).
(1C)
Subsection (1) does not apply to a qualifying individual whose final account for the tax year is treated under section 22I(1)(b) as an assessment.
(2)
[Repealed](3)
Any election made by a taxpayer for the purposes of this section shall continue in force unless and until it is altered by the taxpayer with the prior notified approval of the Commissioner.
Compare: 1976 No 65 s 15
Section 38(1): replaced, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 38(1): amended (with effect on 1 April 2019), on 28 March 2024, by section 135(1) (and see section 135(3) for application) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
Section 38(1B): replaced, on 1 April 2010 (applying for 2010–11 and later income years), by section 622(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 38(1C): replaced (with effect on 1 April 2019), on 28 March 2024, by section 135(2) (and see section 135(3) for application) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
Section 38(2): repealed, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 38(3): amended, on 2 June 2016, by section 109 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
39 Consequential adjustments on change in balance date
(1)
If the Commissioner approves a change to a new balance date that is earlier in the calendar year than the original balance date, the change is effected by the taxpayer having a transitional year of the period from the original balance date up to and including the new balance date in the next succeeding calendar year.
(2)
If the Commissioner approves a change to a new balance date that is later in the calendar year than the original balance date, the change is effected by the taxpayer having a transitional year of the period from the original balance date up to and including the new balance date in the same calendar year.
(3)
If the change in balance date means that a taxpayer has 2 corresponding income years for the same tax year, the figures for both corresponding income years are aggregated when the taxpayer’s net income or net loss is determined.
(4)
For the purpose of giving effect to this section and section 38, the Commissioner may, for any corresponding income year, make any assessment that the Commissioner considers necessary.
(5)
For the tax year corresponding to the income year or income years in which the change of balance date occurs, the basic tax rate for the purposes of the Income Tax Act 2007 and this Act is the rate that would apply if the person’s taxable income for the tax year were calculated using a value for the person’s net income, or net loss, for the tax year equal to the total of—
(a)
the amount that, if the person had no income or expenditure associated with each business activity affected by a change of balance date for the tax year, would be obtained by subtracting the person’s annual total deduction for the tax year from the person’s annual gross income for the tax year; and
(b)
for each business activity affected by a change of balance date for the tax year, the amount given by subsection (6) for the tax year and the business activity.
(6)
The amount given by this subsection, for a tax year and a business activity affected by a change of balance date for the tax year, is calculated using the formula—
unadjusted business net × year days ÷ income year days.
(7)
In the formula,—
(a)
unadjusted business net is the amount that, if the person had no income or expenditure other than income and expenditure associated with the business activity, would be the difference between the person’s annual gross income for the tax year and the person’s annual total deduction for the tax year:
(b)
year days is—
(i)
365, if subparagraph (ii) does not apply:
(ii)
366, if the income year or income years corresponding to the tax year include a 29 February:
(c)
income year days is the total days in the income year or income years corresponding to the tax year.
Section 39: replaced, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 39(1): amended, on 30 March 2017, by section 312(1)(a) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section 39(1): amended, on 30 March 2017, by section 312(1)(b) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section 39(1): amended, on 1 October 2007 (applying for income years corresponding to 2008–09 and subsequent tax years), by section 217(1) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).
Section 39(2): amended, on 30 March 2017, by section 312(2)(a) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section 39(2): amended, on 30 March 2017, by section 312(2)(b) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section 39(2): amended, on 1 October 2007 (applying for income years corresponding to 2008–09 and subsequent tax years), by section 217(1) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).
Section 39(5): replaced, on 30 March 2017, by section 312(3) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section 39(6): replaced, on 30 March 2017, by section 312(4) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section 39(7): inserted, on 30 March 2017, by section 312(4) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
39B Changes in return dates: taxpayers with provisional tax and GST liabilities
(1)
Subsection (2) applies if a provisional taxpayer—
(a)
is a person registered under the Goods and Services Tax Act 1985, and pays GST on a 2-month cycle or a 6-month cycle; and
(b)
elects under section 38(1) to change their balance date at some time in an income year; and
(c)
moves from—
(i)
a balance date in an even-numbered month to a balance date in another even-numbered month; or
(ii)
a balance date in an odd-numbered month to a balance date in another odd-numbered month.
(2)
Until the new balance date is reached, the taxpayer must—
(a)
continue with the due dates for their provisional tax instalments that applied before the change in balance date was approved; and
(b)
apply sections RC 20 to RC 25, as relevant, and Schedule 3, Part B of the Income Tax Act 2007 for the transitional period to determine the due date and amount of an instalment.
(3)
Subsection (4) applies if a provisional taxpayer—
(a)
is a person registered under the Goods and Services Tax Act 1985, and pays GST on a 2-month cycle or a 6-month cycle; and
(b)
elects under section 38(1) to change their balance date at some time in an income year; and
(c)
moves from—
(i)
a balance date in an even-numbered month to a balance date in an odd-numbered month; or
(ii)
a balance date in an odd-numbered month to a balance date in an even-numbered month.
(4)
Until the new balance date is reached, the taxpayer must—
(a)
continue with the due dates for their provisional tax instalments that applied before the change in balance date was approved; and
(b)
apply sections RC 21 to RC 25, as relevant, and Schedule 3, Part B of the Income Tax Act 2007 for the transitional period to determine the due date and amount of an instalment; and
(c)
make an adjustment to their provisional tax liability for the income year for the part of the taxable period in which the new balance date falls.
(5)
If a change in balance date means that the taxpayer’s taxable period is not aligned with their balance date, the Commissioner must make an adjustment to the taxable period under section 15B of the Goods and Services Tax Act 1985.
Section 39B: inserted, on 1 October 2007 (applying for income years corresponding to 2008–09 and subsequent tax years), by section 218(1) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).
Section 39B(2)(b): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 39B(4)(b): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
40 General requirements for returns
(1)
A tax return required to be furnished must be—
(a)
signed; and
(b)
contain all the information and be accompanied by all the documents required under any of the Inland Revenue Acts.
(2)
When a person furnishes a tax return by electronic means under sections 14B(2)(c) and 14C(2)(a),—
(a)
the return must be filed in the prescribed electronic format; and
(b)
for the purposes of subsection (1)(a), the return may be filed under an electronic signature if the requirements of section 13B are met.
(3)
A tax return that is subject to this section is treated as being furnished on the date it is received at an office of the department.
Section 40: replaced, on 7 October 1998 (applying on and after 1 April 1999), by section 16(1) of the Taxation (Simplification and Other Remedial Matters) Act 1998 (1998 No 101).
Section 40(1): amended, on 2 June 2016, by section 110(1)(a) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section 40(1): amended, on 2 June 2016, by section 110(1)(b) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section 40(2): replaced, on 2 June 2016, by section 110(2) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section 40(3): amended, on 2 June 2016, by section 110(3) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
41 Annual returns by persons who receive credit under family scheme
(1)
If a person is eligible to receive a credit of tax under the family scheme, the person must apply to the Commissioner for the credit of tax in the manner specified by the Commissioner.
(2)
A person’s application must be signed and provide the information the Commissioner requires.
(3)
Subsection (4) applies if, apart from this section, a person is not required to furnish a return of income for a tax year and—
(a)
for the whole or part of the tax year the person is issued with a family notice of entitlement under the family scheme; or
(b)
after the end of the income year, the person applies to the Commissioner for a tax credit under the family scheme for that tax year.
(4)
Whether or not the person derived income in the tax year and despite the application of Part 3, subpart 3A, the person must furnish to the Commissioner a return for the tax year, in the form prescribed by the Commissioner, providing—
(a)
[Repealed](b)
the information relevant to the calculation of the person’s family scheme income for the tax year; and
(c)
other information required by the Commissioner.
(5)
[Repealed](6)
A person who is eligible for a tax credit under the family scheme in an income year, or would be eligible if their spouse, civil union partner, or de facto partner were not a transitional resident, and who would otherwise be a transitional resident in an income year may apply not to be a transitional resident under section HR 8(4) of the Income Tax Act 2007.
(7)
A notice of election under section HR 8(4) must be—
(a)
in a form acceptable to the Commissioner; and
(b)
be received by the Commissioner on or before the latest of the following:
(i)
the date by which section 37 would require the person to provide a return of income for the 2006–07 tax year, if required:
(ii)
the date by which section 37 would require the person to provide a return of income for the tax year corresponding to the first income year affected by the election, if required:
(iii)
the date allowed by the Commissioner on application.
(8)
An application under subsection (7)(b)(iii) for an extension of time to make an election is treated as if it were an application under section 37 in relation to a return of income for the later of the tax years referred to in subsection (7)(b)(i) and (ii).
Section 41: replaced, on 24 May 1999 (applying on and after 1 October 1999), by section 17 of the Taxation (Parental Tax Credit) Act 1999 (1999 No 62).
Section 41 heading: amended, on 1 July 2018, by section 27(1) of the Families Package (Income Tax and Benefits) Act 2017 (2017 No 51).
Section 41(1): amended, on 1 July 2018, by section 27(2) of the Families Package (Income Tax and Benefits) Act 2017 (2017 No 51).
Section 41(3): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 41(3)(a): amended, on 1 July 2018, by section 27(3) of the Families Package (Income Tax and Benefits) Act 2017 (2017 No 51).
Section 41(3)(a): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 41(3)(a): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 41(3)(b): amended, on 1 July 2018, by section 27(4) of the Families Package (Income Tax and Benefits) Act 2017 (2017 No 51).
Section 41(3)(b): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 41(4): replaced, on 1 April 2016 (applying for the 2016–17 tax year, or earlier tax year set by Order in Council, and later tax years), by section 184(1) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).
Section 41(4): amended, on 1 April 2019, by section 38(1) (and see section 38(2) for application) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 41(4)(a): repealed, on 23 March 2020, by section 204 of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 41(5): repealed, on 1 April 2016 (applying for the 2016–17 tax year, or earlier tax year set by Order in Council, and later tax years), by section 184(2) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).
Section 41(6): inserted, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 41(6): amended, on 30 March 2025, by section 167 of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
Section 41(6): amended, on 1 July 2018, by section 27(5) of the Families Package (Income Tax and Benefits) Act 2017 (2017 No 51).
Section 41(7): inserted, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 41(8): inserted, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
41A Returns in relation to charitable or other public benefit gifts
(1)
A person who has a tax credit under sections LD 1 to LD 3 of the Income Tax Act 2007 may apply for a refund by—
(a)
providing the information on the total amount of the charitable or other public benefit gifts they have made for a tax year with the information provided under Part 3, subpart 3B:
(b)
notifying the Commissioner by electronic means in relation to an amount of charitable or other public benefit gift that they have made during the tax year to which the application relates:
(c)
completing the form prescribed by the Commissioner.
(2)
The total amount refunded, including a refund made on an application under subsection (7), must be no more than the annual amount of the tax credits.
(3)
The sum of the charitable or other public benefit gifts under sections LD 1 to LD 3 of that Act made by a person must be no more than their taxable income in the tax year in which the gift is made.
(4)
If subsection (3) applies, the Commissioner must reduce the total amount of charitable or other public benefit gifts so that the total is no more than the person’s taxable income in the tax year in which the gift is made.
(5)
An application under subsection (1) must be made in the manner required by the Commissioner, and be accompanied by any information the Commissioner requires, including—
(a)
[Repealed](b)
the amount of a charitable or other public benefit gift to which sections LD 1 to LD 3 of that Act apply.
(6)
A taxpayer may apply for a refund for the tax year in which the gift is made in the 4-year period beginning with—
(a)
the 1 April following the end of the taxpayer’s income year corresponding to the tax year, if the taxpayer has a standard balance date or an earlier balance date; or
(b)
the day after the end of the taxpayer’s income year corresponding to the tax year, if the taxpayer has a late balance date.
(6B)
For the purposes of section 108(1),—
(a)
the payment of a refund under this section is treated as an assessment; and
(b)
the 4-year period starts at the end of the tax year in which the person applies for the refund.
(7)
Despite subsection (6), the Commissioner may, in special circumstances, accept an application for a refund before the end of the tax year to which the application relates.
(8)
For the purpose of subsection (7), special circumstances include—
(a)
the person leaving New Zealand, permanently or for a significant length of time:
(b)
a trustee of a deceased person’s estate wishing to wind up the estate.
(9)
Despite subsection (1), the Commissioner must not refund the amount of a tax credit unless the requirements of subsections (2) and (3) are met.
(10)
When the Commissioner has considered an application, the Commissioner must notify the person of the amount of the tax credit under sections LD 1 to LD 3 of that Act and of the amount of refund allowed.
(11)
A tax credit may not be refunded to an absentee, a company, a public authority, a Maori authority, an unincorporated body, or a trustee liable for income tax under sections HC 16, HC 32, or HZ 2 of that Act.
(12)
A refund under subsection (1) must be paid as if it were tax paid in excess.
(13)
A refund under subsection (1), to the extent to which it is more than the correct amount of refund, is recoverable as an excess tax credit under section 142D.
(14)
The Commissioner must publish, from time to time, in a publication chosen by the Commissioner, a list of the names of entities that—
(a)
have provided the information required under subsection (16):
(b)
the Commissioner considers appropriate to include on the list (for example, an entity registered under the Charities Act 2005).
(15)
Despite subsection (14), the name of an entity must not be published on the list if the Commissioner determines that the entity is not described in section LD 3(2)(a), (ab), (b), (c), or (d) of the Income Tax Act 2007.
(16)
An entity may request that their name is included on the list by providing information to the Commissioner in the form prescribed by the Commissioner.
Section 41A heading: amended, on 1 April 2019, by section 39(1) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 41A heading: amended, on 29 May 2012 (applying for the 2012–13 and later tax years), by section 12(1) of the Taxation (Budget Measures) Act 2012 (2012 No 38).
Section 41A: replaced, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 41A(1): replaced, on 1 April 2019, by section 39(2) (and see section 39(7) for application) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 41A(3): replaced (with effect on 1 April 2009), on 6 October 2009, by section 623(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 41A(3): amended, on 29 May 2012 (applying for the 2012–13 and later tax years), by section 12(3)(a) of the Taxation (Budget Measures) Act 2012 (2012 No 38).
Section 41A(3): amended, on 29 May 2012 (applying for the 2012–13 and later tax years), by section 12(3)(b) of the Taxation (Budget Measures) Act 2012 (2012 No 38).
Section 41A(4): amended, on 29 May 2012 (applying for the 2012–13 and later tax years), by section 12(4)(a) of the Taxation (Budget Measures) Act 2012 (2012 No 38).
Section 41A(4): amended, on 29 May 2012 (applying for the 2012–13 and later tax years), by section 12(4)(b) of the Taxation (Budget Measures) Act 2012 (2012 No 38).
Section 41A(4): amended, on 29 May 2012 (applying for the 2012–13 and later tax years), by section 12(4)(c) of the Taxation (Budget Measures) Act 2012 (2012 No 38).
Section 41A(5): amended, on 1 April 2019, by section 39(3) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 41A(5)(a): repealed, on 29 May 2012 (applying for the 2012–13 and later tax years), by section 12(5) of the Taxation (Budget Measures) Act 2012 (2012 No 38).
Section 41A(5)(b): replaced (with effect on 1 April 2009), on 6 October 2009, by section 623(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 41A(6): replaced, on 1 April 2014 (applying to applications made in the 2014–15 and later tax years), by section 112(1) of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).
Section 41A(6B): inserted, on 1 April 2019, by section 39(4) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 41A(10): replaced (with effect on 1 April 2009), on 6 October 2009, by section 623(4) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 41A(10): amended, on 29 May 2012 (applying for the 2012–13 and later tax years), by section 12(6) of the Taxation (Budget Measures) Act 2012 (2012 No 38).
Section 41A(14): replaced, on 1 April 2020, by section 39(6) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 41A(15): replaced, on 1 April 2020, by section 39(6) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 41A(16): inserted, on 1 April 2020, by section 39(6) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
41B Return by person applying for tax credit on redundancy payment
(1)
A person who has a tax credit under section ML 2 of the Income Tax Act 2007 may apply to the Commissioner for a refund.
(2)
An application under subsection (1) must be made in the manner required by the Commissioner, be signed by the person, and be accompanied by—
(a)
any information the Commissioner requires, including—
(i)
the amount of the payment that is a redundancy payment under sections ML 1 to ML 3 of the Income Tax Act 2007; and
(ii)
the name of the payer of the redundancy payment; and
(iii)
the date on which the redundancy payment was made; and
(b)
verification of the details referred to in paragraph (a), in a document signed by the payer of the redundancy payment or other form satisfactory to the Commissioner.
(3)
An application for a refund must be made in the period—
(a)
beginning after the date of the redundancy payment; and
(b)
ending with the day that is 4 years after the date of the redundancy payment.
(4)
When the Commissioner has considered an application for a refund, the Commissioner must notify the taxpayer of the amount of the tax credit the taxpayer has under sections ML 1 to ML 3 of the Income Tax Act 2007 and the amount of refund allowed.
(5)
A refund allowed under subsection (1) must be paid as if it were tax paid in excess.
(6)
A refund allowed under subsection (1), to the extent it exceeds the correct amount of refund, is recoverable as an excess credit of tax under section 142D.
(7)
Part 7 does not apply to a refund or an excess refund made under this section.
(8)
Part 9 applies to applications made under this section.
Section 41B: inserted, on 19 December 2007, by section 203(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 41B heading: replaced (with effect on 1 April 2008), on 6 October 2009, by section 624(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 41B(1): replaced (with effect on 1 April 2008), on 6 October 2009, by section 624(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 41B(2)(a)(i): amended, on 1 April 2008, by section 203(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 41B(2)(b): amended, on 2 June 2016, by section 111(1) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section 41B(4): replaced (with effect on 1 April 2008), on 6 October 2009, by section 624(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 41B(4): amended, on 2 June 2016, by section 111(2) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
41C Application for refund of FamilyBoost tax credit
(1)
This section applies to a person who is entitled to apply for a refund of a FamilyBoost tax credit for a tax credit quarter under subpart MH of the Income Tax Act 2007.
(2)
The person may apply for a refund of the amount of the FamilyBoost tax credit for the tax credit quarter calculated under subpart MH.
(3)
A person applying for a refund must complete an application—
(a)
in the manner specified by the Commissioner; and
(b)
accompanied by the information required by the Commissioner.
(4)
A refund paid under this section must be paid as if it were tax paid in excess.
(5)
If an incorrect amount is paid for a refund under this section, the refund must be treated as if it were correctly calculated under subpart MH and the Commissioner must not take any corrective action unless—
(a)
the amount of the refund is a significant overpayment or significant underpayment of the correct amount as calculated under subpart MH; or
(b)
the refund has been paid as a result of the person knowingly providing altered, false, incomplete, or misleading information.
(6)
For the purposes of subsection (5),—
(a)
the Commissioner may determine the thresholds for what is a significant overpayment or a significant underpayment of an amount of a refund; and
(b)
any exercise of the Commissioner’s discretion under paragraph (a) must be carried out having regard to the resources available to the Commissioner.
(7)
If the Commissioner considers the amount of a FamilyBoost tax credit refunded to a person is a significant overpayment, the Commissioner may recover the overpayment, to the extent to which it is more than the correct amount of refund, as an excess tax credit under section 142D.
(8)
If a person notifies the Commissioner of a change in their circumstances, the Commissioner may reconsider their refund if the Commissioner considers the person’s change in circumstances has resulted in an unduly harsh outcome with regard to the person’s refund.
(9)
A person who is entitled to a refund of a FamilyBoost tax credit must apply for the refund within the 4-year period that begins on the day immediately following the end of the tax credit quarter for which the person was entitled to the tax credit under subpart MH.
(10)
The Commissioner must not issue a refund if more than 4 years have passed since the end of the tax credit quarter for which a person was entitled to the FamilyBoost tax credit under subpart MH.
Section 41C: inserted, on 1 July 2024, by section 18 of the Taxation (Budget Measures) Act 2024 (2024 No 19).
Section 41C(1): amended (with effect on 1 July 2024), on 29 March 2025, by section 168(1) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
Section 41C(2): amended (with effect on 1 July 2024), on 29 March 2025, by section 168(1) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
Section 41C(6)(b): replaced (with effect on 1 July 2024), on 29 March 2025, by section 168(2) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
Section 41C(7): replaced (with effect on 1 July 2024), on 29 March 2025, by section 168(3) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
Section 41C(9): amended (with effect on 1 July 2024), on 29 March 2025, by section 168(1) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
Section 41C(10): amended (with effect on 1 July 2024), on 29 March 2025, by section 168(1) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
42 Returns by joint venturers, partners, and partnerships
(1)
This section applies when 2 or more people derive income jointly or have deductions jointly.
(2)
Despite subsection (1), this section does not apply to the income derived by, and the deductions of, an airport operator from activities undertaken as an airport operator.
(3)
In the case of partners,—
(a)
if the partnership of the partner is a limited partnership registered under the Limited Partnerships Act 2008 or is a partnership that would carry on a business in New Zealand ignoring section HG 2 of the Income Tax Act 2007, then the partners must make a joint return of income that includes—
(i)
the total amount of income derived by the partners as members of the partnership; and
(ii)
the partners’ partnership shares in the income; and
(iii)
a summary of the deductions of each partner:
(b)
there is no joint assessment, but each partner must make a separate return of income under section 33, including the income derived by the partner as a member of the partnership, and the partner’s deductions. Each partner is separately assessed:
(c)
for the purposes of paragraph (b), if the partnership has a non-standard balance date, each partner may choose to make a return of, or include in a return, the income derived by the partner as a member of the partnership and the partner’s deductions as if they also had that non-standard balance date and any such election is irrevocable while the partner remains a member of the partnership unless the partnership changes its balance date:
(d)
despite paragraph (b), a non-resident partner in a partnership does not have to make a separate return of income under section 33 when the partner—
(i)
does not derive income from any source in New Zealand; or
(ii)
derives only non-resident passive income to which section RF 2(3) and (4) of the Income Tax Act 2007 applies; or
(iii)
derives only income from a source in New Zealand that is fully relieved from tax under a double tax agreement.
(4)
In any other case, each person shall make a separate return taking into account that person’s share of the joint income and deductions. Each person is separately assessed.
Section 42: replaced, on 1 April 2008 (for a person who is not a limited partner of a limited partnership registered under the Limited Partnerships Act 2008, applying for income years starting on and after 1 April 2008), by section 29(1) of the Taxation (Limited Partnerships) Act 2008 (2008 No 2).
Section 42(3)(c): inserted (with effect on 1 April 2008), on 29 March 2025, by section 169(1) (and see section 169(2) for application) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
Section 42(3)(d): inserted (with effect on 1 April 2008), on 29 March 2025, by section 169(1) (and see section 169(2) for application) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
42B Returns by look-through companies and owners of interests
(1)
This section applies to persons who have effective look-through interests for a look-through company, and to their look-through company.
(2)
The company must make a return of income that ignores subpart HB of the Income Tax Act 2007 and that includes—
(a)
the total amount of income derived by the company:
(b)
the amount of that income for each owner under subpart HB of that Act:
(c)
a summary of the deductions for each owner under subpart HB and section DV 22 of that Act.
(3)
There is no assessment of the company, but each owner must make a separate return of income under section 33 taking into account the amounts in subsection (2). Each owner is assessed separately.
Section 42B: inserted, on 1 April 2011, by section 148 of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
42C Income tax returns by undischarged bankrupt
A person who is adjudicated bankrupt under the Insolvency Act 2006 and derives an amount of income in an income year while being a bankrupt must make a return of income for the income year, unless the person is an individual whose final account for the tax year is treated under section 22I(1)(b) as an assessment under section 92.
Section 42C: inserted, on 30 March 2017, by section 313 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section 42C: amended, on 1 April 2019, by section 40(1) (and see section 40(2) for application) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
43 Income tax returns and assessments by executors or administrators
(1)
The executor or administrator of a deceased taxpayer must furnish the same returns of income and make the same assessments that the taxpayer was required to furnish or make, or would have been required to furnish or make, if the taxpayer had remained alive.
(2)
The Commissioner may from time to time require the executor or administrator to furnish such further returns of income for the deceased taxpayer as the Commissioner considers necessary.
(3)
Income tax assessed in respect of a deceased taxpayer, whether or not under subsection (1), is to be treated as a liability incurred by the deceased taxpayer during their lifetime, and the executor or administrator of the taxpayer is liable for the same accordingly.
(4)
[Repealed](5)
[Repealed]Section 43: replaced, on 24 October 2001 (applying to 2002–03 and subsequent income years), by section 196(1) of the Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 (2001 No 85).
Section 43(4): repealed, on 1 April 2019, by section 41(1) (and see section 41(2) for application) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 43(5): repealed, on 1 April 2019, by section 41(1) (and see section 41(2) for application) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
43A Non-active companies may be excused from filing returns
(1)
A company is not required to furnish a return of income in respect of any tax year if the company—
(a)
is a non-active company throughout that tax year; and
(b)
has made and furnished to the Commissioner, in a form approved by the Commissioner,—
(i)
a declaration that it is a non-active company, and that it will notify the Commissioner if it ceases to be a non-active company; and
(ii)
a statement of such other matters as the Commissioner may require; and
(c)
has not since the making of the declaration ceased to be a non-active company.
(2)
For the purposes of this section, a company is a non-active company for a tax year if, throughout that tax year, the company—
(a)
has not derived or been deemed to have derived any income; and
(b)
has no deductions; and
(c)
has not disposed of or been deemed to have disposed of any assets; and
(d)
has not been a party to or perpetuated or continued with any transactions which, during the tax year,—
(i)
give rise to income in any person’s hands; or
(ii)
give rise to fringe benefits to any employee or to any former employee; or
(iib)
[Repealed](iii)
give rise to a debit in the company’s imputation credit account.
(3)
In determining whether a company complies with the requirements of subsection (2), no account shall be taken of any—
(a)
statutory company filing fees or associated accounting or other costs; or
(b)
bank charges or other minimal administration costs totalling not more than $50 in the tax year; or
(c)
interest earned on any bank account during the tax year, to the extent that the total interest does not exceed the total of any charges or costs incurred by the company to which paragraph (b) applies.
(4)
A company that is resident in New Zealand with a standard balance date need not furnish an imputation return for any tax year during which it is a non-active company.
(5)
A company that is resident in New Zealand with a non-standard balance date need not furnish an imputation return for any tax year if it is a non-active company for both the tax years in which the tax year falls.
(6)
Where at any time any paragraph of subsection (2) ceases to apply to a company that has made a declaration under this section, the company must—
(a)
notify the Commissioner that it has ceased to be a non-active company; and
(b)
provide the Commissioner with a statement, in a form approved by the Commissioner, as to—
(i)
whether or not the company had any loss balance to be carried forward or set off against the net income of the company or any other person, or any credit balance in its imputation credit account, at the start of the tax year that began its period of non-activity; and
(ii)
whether or not there has been any change of ownership in the company since that time, whether direct or indirect; and
(iii)
whether or not the application of any of the continuity provisions would preclude the carrying forward, offsetting, or other utilisation of any tax loss or loss balance or credit balance of the company referred to in subparagraph (i).
(7)
Notwithstanding subsections (1), (4), and (5), a non-active company shall furnish a return of income or an annual ICA return if required by the Commissioner to do so.
Section 43A: inserted, on 10 April 1995, by section 8 of the Tax Administration Amendment Act 1995 (1995 No 24).
Section 43A(1): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 43A(1)(a): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 43A(1)(b)(i): amended, on 2 June 2016, by section 112(1) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section 43A(2): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 43A(2)(a): replaced, on 26 July 1996 (applying to 1997–98 and subsequent income years), by section 441(1) of the Taxation (Core Provisions) Act 1996 (1996 No 67).
Section 43A(2)(a): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 43A(2)(b): replaced, on 26 July 1996 (applying to 1997–98 and subsequent income years), by section 441(1) of the Taxation (Core Provisions) Act 1996 (1996 No 67).
Section 43A(2)(b): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 43A(2)(c): replaced, on 26 July 1996 (applying to 1997–98 and subsequent income years), by section 441(1) of the Taxation (Core Provisions) Act 1996 (1996 No 67).
Section 43A(2)(d): inserted, on 26 July 1996 (applying to 1997–98 and subsequent income years), by section 441(1) of the Taxation (Core Provisions) Act 1996 (1996 No 67).
Section 43A(2)(d): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 43A(2)(d)(i): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 43A(2)(d)(iib): repealed, on 1 April 2009 (applying for 2009–10 income year and later income years), by section 26(1) of the Taxation (Urgent Measures and Annual Rates) Act 2008 (2008 No 105).
Section 43A(2)(d)(iii): amended, on 1 April 2017, by section 314(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section 43A(3)(b): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 43A(3)(c): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, unless the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 43A(4): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 43A(4): amended (with effect on 1 April 2003), on 25 November 2003, by section 109(1) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).
Section 43A(5): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 43A(5): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 43A(5): amended (with effect on 1 April 2003), on 25 November 2003, by section 109(2) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).
Section 43A(6)(a): amended, on 2 June 2016, by section 112(2) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section 43A(6)(b)(i): amended, on 1 April 2017, by section 314(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section 43A(6)(b)(i): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 43A(6)(b)(i): amended, on 26 July 1996 (applying to 1997–98 and subsequent income years), by section 441(2) of the Taxation (Core Provisions) Act 1996 (1996 No 67).
Section 43A(6)(b)(iii): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 43A(7): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
43B Trustees, administrators, or executors of certain trusts or estates not required to file returns
(1)
A person who is a trustee of a trust or an administrator or executor of an estate is not required to make a return of income for a tax year for the trust or estate if—
(a)
the trust or estate is non-active throughout the income year corresponding to the tax year; and
(b)
for a person who is a trustee, the trust is a complying trust under section HC 10 of the Income Tax Act 2007; and
(c)
if the trust or estate has a tax file number, the person has provided to the Commissioner, in a form approved by the Commissioner,—
(i)
a declaration that the trust or estate is non-active and that the person will notify the Commissioner if the trust or estate ceases to be non-active; and
(ii)
a statement of the matters required by the Commissioner.
(2)
For the purposes of this section, a trust or estate is non-active for a tax year if, throughout the income year corresponding to the tax year, the trustee of the trust or the administrator or executor of the estate—
(a)
has not derived any assessable income; and
(b)
has no deductions; and
(c)
has not been a party to, or perpetuated, or continued with, transactions with assets of the trust or estate with a person who is associated with the trustee of the trust or executor or administrator of the estate which, during the income year corresponding to the tax year,—
(i)
give rise to income in that person’s hands; or
(ii)
give rise to fringe benefits to that person in their capacity as an employee or former employee.
(3)
In determining whether a trust or estate complies with the requirements of subsection (2), no account shall be taken of any—
(a)
reasonable fees paid to professional persons to administer the trust or estate; or
(b)
bank charges or other minimal administration costs totalling not more than $1,500 in the tax year; or
(c)
income derived by the trustee of a trust or an administrator or executor of an estate during the tax year that would be reportable income, as defined in section 22D of the Tax Administration Act 1994, if the trust or estate were an individual, to the extent to which the total amount of that income does not exceed $1,000; or
(d)
insurance, rates, interest, and other expenditure incidental to the occupation of a dwelling owned by the trust or estate and incurred by the beneficiaries of the trust or estate.
(3B)
If subsection (1) does not apply, a person who is a trustee of a trust is also not required to make a return of income for a tax year for the trust—
(a)
if the trust is a testamentary trust; and
(b)
the trust is a complying trust under section HC 10 of the Income Tax Act 2007; and
(c)
if the trust has a tax file number, the person has provided to the Commissioner, in a form approved by the Commissioner,—
(i)
a declaration that the trust meets the requirements of this subsection and that the person will notify the Commissioner if the trust ceases to meet those requirements; and
(ii)
a statement of the matters required by the Commissioner; and
(d)
the trustee of the trust has derived no assessable income or has derived assessable income that would be reportable income, as defined in section 22D of the Tax Administration Act 1994, if the trust were an individual, of a total amount not exceeding $5,000 for the income year corresponding with the tax year; and
(e)
the trustee of the trust has derived an amount, that does not exceed $1,000 in total for the tax year, of assessable income that is not reportable income, as defined in section 22D of the Tax Administration Act 1994, if the trust were an individual, and the trustee of the trust has incurred in the tax year a total amount of deductible expenditure that is not exceeded by the assessable income by more than $200 for the income year corresponding with the tax year.
(4)
If subsection (2) or (3B) cease to apply to a trust or estate, a trustee of the trust or administrator or executor of the estate must notify the Commissioner that the relevant subsection no longer applies.
(5)
Despite subsection (1) or (3B), a person referred to in subsection (1) or (3B) must furnish a return of income if required by the Commissioner to do so.
Section 43B: inserted, on 16 November 2015, by section 21 of the Taxation (Bright-line Test for Residential Land) Act 2015 (2015 No 111).
Section 43B heading: replaced (with effect on 1 April 2021), on 31 March 2023, by section 174(1) (and see section 174(11) for application) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 43B(1): replaced, on 1 April 2022, by section 192(2) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section 43B(1)(c): amended (with effect on 1 April 2021), on 31 March 2023, by section 174(2) (and see section 174(11) for application) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 43B(2): replaced, on 1 April 2022, by section 192(2) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section 43B(2)(a): amended (with effect on 1 April 2021), on 31 March 2023, by section 174(3) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 43B(2)(c): replaced (with effect on 1 April 2021), on 31 March 2023, by section 174(4) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 43B(3): amended, on 1 April 2022, by section 192(3)(a) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section 43B(3)(a): amended, on 1 April 2022, by section 192(3)(b)(i) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section 43B(3)(a): amended, on 1 April 2022, by section 192(3)(b)(ii) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section 43B(3)(b): amended (with effect on 1 April 2021), on 31 March 2023, by section 174(5) (and see section 174(11) for application) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 43B(3)(c): replaced (with effect on 1 April 2021), on 31 March 2023, by section 174(6) (and see section 174(11) for application) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 43B(3)(d): amended (with effect on 1 April 2021), on 31 March 2023, by section 174(7) (and see section 174(11) for application) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 43B(3)(d): amended, on 1 April 2022, by section 192(3)(d) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section 43B(3B): inserted (with effect on 1 April 2021), on 31 March 2023, by section 174(8) (and see section 174(11) for application) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 43B(4): replaced (with effect on 1 April 2021), on 31 March 2023, by section 174(9) (and see section 174(11) for application) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 43B(5): replaced (with effect on 1 April 2021), on 31 March 2023, by section 174(10) (and see section 174(11) for application) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
44 Commissioner may in certain cases demand special returns, and make special assessments
(1)
This section applies to the following persons:
(a)
an agent:
(b)
a non-resident trader:
(c)
a person who is believed by the Commissioner to be about to leave New Zealand or to be about to discontinue the carrying on of business in New Zealand:
(d)
a person who has ceased to carry on business in New Zealand or to derive income:
(e)
the executors or administrators of a deceased taxpayer in respect of taxable income of the taxpayer for the taxpayer’s lifetime:
(f)
a person who has become bankrupt, or a company which is in the course of being liquidated.
(2)
The Commissioner may, if the Commissioner thinks fit, at any time during the tax year or in any subsequent year, and either before or after the passing of the annual taxing Act or the due date of tax, require any person to whom this section applies to make a return in relation to a specified transaction or transactions from which income has been derived, or any specified period in which income has been derived, and may assess the person for income tax accordingly, or, when default is made in making any such return, or the Commissioner is dissatisfied with the return, then on such sum as the Commissioner thinks reasonable, and shall give notice of the assessment to the person so assessed.
(3)
(4)
Tax so assessed shall be payable on demand, which may be made in and by the notice of assessment or at any later date, and the tax shall be recoverable in the same manner as income tax assessed in the ordinary course.
(5)
If an assessment is made under this section before the passing of the annual taxing Act, the tax shall be assessed at the rate fixed by the annual taxing Act last passed before the date of the assessment.
(6)
No assessment made under this section shall in any manner preclude a subsequent assessment of the same person in the ordinary course for the tax year with respect to which the assessment under this section was made, but in any such case the tax paid under the earlier assessment shall be credited in the subsequent assessment.
Compare: 1976 No 65 s 12; 1994 No 76 s 9
Section 44(1)(d): replaced, on 26 July 1996 (applying to 1997–98 and subsequent income years), by section 442(1) of the Taxation (Core Provisions) Act 1996 (1996 No 67).
Section 44(1)(d): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 44(1)(e): replaced, on 26 July 1996 (applying to 1997–98 and subsequent income years), by section 442(1) of the Taxation (Core Provisions) Act 1996 (1996 No 67).
Section 44(2): replaced, on 26 July 1996 (applying to 1997–98 and subsequent income years), by section 442(2) of the Taxation (Core Provisions) Act 1996 (1996 No 67).
Section 44(2): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 44(3): amended, on 1 October 1996, by section 10 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 44(5): replaced, on 26 July 1996 (applying to 1997–98 and subsequent income years), by section 442(3) of the Taxation (Core Provisions) Act 1996 (1996 No 67).
Section 44(5): amended, on 24 October 2001 (applying to 2002–03 and subsequent income years), by section 197(1) of the Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 (2001 No 85).
Section 44(6): replaced, on 26 July 1996 (applying to 1997–98 and subsequent income years), by section 442(3) of the Taxation (Core Provisions) Act 1996 (1996 No 67).
Section 44(6): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 44(6): amended, on 24 October 2001 (applying to 2002–03 and subsequent income years), by section 197(2) of the Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 (2001 No 85).
44A Special returns by taxpayers affected by reduced deductions under Income Tax Act 2007
(1)
A taxpayer who has made a return of income for a tax year must file a special return for that tax year in the form required by the Commissioner if the taxpayer’s taxable income or net loss for the tax year is affected by—
(a)
a reduction under section DT 2(3) of the taxpayer’s deduction under section DT 2(2) of the Income Tax Act 2007; or
(b)
a reduction under section DS 3 of the taxpayer’s deduction under section DS 1 or DS 2 of the Income Tax Act 2007; or
(c)
a reduction under section DT 2(3) of another taxpayer’s deduction under section DT 2(2) of the Income Tax Act 2007; or
(d)
a reduction under section DS 3 of another taxpayer’s deduction under section DS 1 or DS 2 of the Income Tax Act 2007.
(2)
A taxpayer who has derived consideration that gives rise to a reduction under section DT 2(3) or DS 3 of the Income Tax Act 2007 and any other taxpayer affected by that reduction must file a special return—
(a)
for the tax year in which the consideration is derived; and
(b)
by the date that the taxpayer’s return of income for that tax year would be due.
Section 44A: inserted, on 20 May 1999 (applying on and after 17 November 1998), by section 67(1) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
Section 44A heading: amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 44A(1): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 44A(1): amended, on 25 September 2000 (applying on and after 17 November 1998), by section 36(1) of the Taxation (FBT, SSCWT and Remedial Matters) Act 2000 (2000 No 34).
Section 44A(1)(a): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 44A(1)(a): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 44A(1)(b): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 44A(1)(b): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 44A(1)(c): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 44A(1)(c): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 44A(1)(d): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 44A(1)(d): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 44A(2): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 44A(2): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 44A(2)(a): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 44A(2)(b): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
44B Special returns for financial arrangements
(1)
A person who calculates an adjustment under section EW 53 of the Income Tax Act 2007 must file a special return for the adjustment in the form required by the Commissioner on or before the date on which the person must file their return of income in the tax year specified in section EW 53(3).
(2)
Despite the time bar, the Commissioner must make assessments in respect of the person for the tax years to which the adjustment relates according to the calculations of income and expenditure under the adjustment.
Section 44B: inserted, on 20 May 1999 (applying on and after 20 May 1999), by section 67(1) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
Section 44B(1): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 44B(1): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 44B(2): replaced, on 24 October 2001 (applying to 2002–03 and subsequent income years), by section 198(1) of the Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 (2001 No 85).
Section 44B(2): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
44C Certificates about trees
(1)
The question whether trees are ornamental or incidental arises under the following provisions of the Income Tax Act 2007:
(a)
(b)
sections FB 6 and FB 7:
(c)
sections GC 1 and GC 2.
(2)
A certificate as to whether trees are ornamental or incidental provides conclusive evidence on the question if it is given by—
(a)
a properly authorised officer of the Ministry of Agriculture and Forestry; or
(b)
any other person suitably qualified to give a certificate.
(3)
The question whether trees are planted mainly for the purposes of timber production arises under the definitions of listed horticultural plant and non-listed horticultural plant in section YA 1 of the Income Tax Act 2007 and under Schedule 20, Part A, item 9 of that Act.
(4)
A certificate as to whether trees are planted mainly for the purposes of timber production provides conclusive evidence on the question if it is given by—
(a)
a properly authorised officer of the relevant regional council; or
(b)
a properly authorised officer of the Ministry of Agriculture and Forestry; or
(c)
any other person suitably qualified to give a certificate.
Compare: 1994 No 164 ss CJ 1(3), DO 4(5)
Section 44C: inserted, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 44C(1): replaced, on 1 April 2024, by section 136 of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
Section 44C(2)(a): amended, on 1 April 2005, pursuant to section 5(1)(c) of the Ministries of Agriculture and Forestry (Restructuring) Act 1997 (1997 No 100).
Section 44C(2)(a): amended, on 1 April 2005, pursuant to section 5(1)(c) of the Ministries of Agriculture and Forestry (Restructuring) Act 1997 (1997 No 100).
Section 44C(3): amended (with effect on 1 April 2008), on 8 December 2009 (applying for 2008–09 and later income years), by section 135(1) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
Section 44C(3): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
44D Natural product dealer certificate
(1)
For the purposes of Schedule 4, Part H of the Income Tax Act 2007, the Commissioner may issue a natural product dealer certificate to a person who applies for the certificate.
(2)
The certificate may be issued for any period of time, and is revoked when a notice ordering revocation is received by the Commissioner, if the person revokes the certificate, or by the person, if the Commissioner revokes the certificate.
Section 44D: inserted, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 44D(1): amended, on 2 June 2016, by section 113 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
45 AIM method information: taxpayers
A person that uses the AIM method as described in section RC 5(5B) of the Income Tax Act 2007 must give to the Commissioner on or before an instalment date, information required by the Commissioner in relation to the instalment, the person’s use of the AIM method, and their use of an approved AIM provider’s AIM-capable accounting system, and any other information required by the Commissioner in the form prescribed by the Commissioner, even if the amount to pay for the instalment date is zero or a refund. The Commissioner may make a determination under section 91AAZ setting out information and form required or prescribed under this section.
Section 45: inserted, on 1 April 2018 (applying for the 2018–19 and later income years), by section 51(1) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
45B AIM method information: approved AIM providers
(1)
An approved AIM provider must give to the Commissioner information required by the Commissioner in relation to their AIM-capable accounting system products, end-user’s use of the products for a tax year, and any other matters relevant to the AIM method for the tax year, in the form prescribed by the Commissioner.
(2)
The Commissioner must not require taxpayer-specific information under this section.
(3)
The form must be given to the Commissioner within 6 months of the end of the tax year.
Section 45B: inserted, on 1 April 2018 (applying for the 2018–19 and later income years), by section 51(1) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
45 New Zealand superannuitant to estimate other income
[Repealed]Section 45: repealed, on 20 August 1997 (applying to tax on taxable income for 1998–99 and subsequent income years), by section 14 of the Taxation (Superannuitant Surcharge Abolition) Act 1997 (1997 No 59).
46 Employers to make returns as to employees
[Repealed]Section 46: repealed, on 1 April 2019, by section 313 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
46A Accident Rehabilitation and Compensation Insurance Corporation to provide information as to recipients of weekly compensation
[Repealed]Section 46A: repealed, on 1 December 2020, by section 190 of the Privacy Act 2020 (2020 No 31).
Fringe benefits
Heading: inserted, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
46B FBT returns for quarters
(1)
This section applies to an employer who pays their FBT liability under the single rate option or the alternate rate option. The employer chooses the relevant option by providing a return stipulating the selected rate.
(2)
For each quarter of a tax year, the employer must provide a return that—
(a)
sets out the details of the fringe benefits received by each of their employees in the quarter; and
(b)
includes a calculation of the amount of FBT payable on the taxable value of the fringe benefits in the quarter.
(3)
The returns must be provided, and the employer is liable to pay the amount of FBT, by the following dates:
(a)
for a return for each of the first 3 quarters of a tax year, 20 days after the end of the quarter:
(b)
for a return for the final quarter of a tax year, 31 May after the end of the quarter, unless subsection (4)(a) applies.
(4)
If an employer chooses to pay FBT under sections RD 50 and RD 53 of the Income Tax Act 2007, and the result of the calculation is—
(a)
a negative number, the employer is entitled to a refund of the overpayment:
(b)
a positive number, the employer must pay the difference.
(5)
If no fringe benefit has been provided during a quarter, the employer must still provide a return under subsection (3). However, the Commissioner may relieve an employer of this obligation.
(6)
If an employer stops employing staff in a tax year as described in section RD 63 of that Act, they must provide a return within 2 months after the end of the quarter in which the employment ceased. For this purpose, subsections (3) and (4), and paragraph (d) of the definition of date interest starts apply to the employer.
Compare: 2004 No 35 ss ND 2(3), ND 9(2), (3), ND 10(2)–(5), ND 11, ND 12
Section 46B: inserted, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
46C FBT returns for years
(1)
This section applies to an employer who pays their FBT liability under the close company option or the small business option. The employer chooses the relevant option by notifying the Commissioner.
(2)
The employer must provide a return that—
(a)
sets out the details of the fringe benefits received by each of their employees in the tax year or income year, as applicable; and
(b)
includes a calculation of the amount of FBT payable on the taxable value of the fringe benefits in the tax year or income year, as applicable.
(3)
For an employer who chooses to pay under the close company option, the return must be provided no later than the employer’s terminal tax date for the relevant income year. The employer is liable to pay the amount calculated by the terminal tax date.
(3B)
[Repealed](3C)
[Repealed](4)
For an employer who chooses to pay under the small business option, the return must be provided no later than 31 May after the end of the relevant tax year. The employer is liable to pay the amount calculated by 31 May.
Compare: 2004 No 35 ss ND 13(5), (6), ND 14(5), (6)
Section 46C: inserted, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 46C(3B): repealed, on 30 March 2025, by section 170 of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
Section 46C(3C): repealed, on 31 December 2021, by section 46C(3C).
46D FBT returns: changes in payment periods
(1)
This section applies when an employer chooses to pay income tax on an income year basis under the close company option, and the first day of the relevant income year is not the same day as the first day of a quarter.
(2)
The employer must provide a return and pay FBT under section 46B, treating the period between the first day of the quarter in which the income year starts and the first day of the income year as if it were a quarter.
Compare: 2004 No 35 s ND 15(7), (8)
Section 46D: inserted, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
46E FBT returns: information for calculations
(1)
This section applies for the purposes of sections RD 58(2), RD 60(4), and RD 61(4) of the Income Tax Act 2007 when an employer asks the Commissioner to replace the FBT liability determined under a set rate with a calculated amount.
(2)
The employer must provide the information within 2 months after notifying the Commissioner that an assessment for the final quarter or year has been made.
Compare: 2004 No 35 s ND 1(6)
Section 46E: inserted, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
47 ESCT statements provided by employers and others
(1)
This section applies when an employer, person, or PAYE intermediary withholds in a period an amount of ESCT from an employer’s superannuation cash contribution.
(2)
The employer, person, or PAYE intermediary must deliver their employment income information to the Commissioner by the relevant dates set out in sections 23E to 23H, 23J, and 23K showing the amount of the employer’s superannuation cash contribution, the amount of ESCT relating to the contribution, and any other particulars required by the Commissioner.
Section 47: replaced, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 47 heading: amended (with effect on 1 April 2008), on 2 November 2012, by section 186(1) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).
Section 47(1): amended (with effect on 1 April 2008), on 2 November 2012, by section 186(2) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).
Section 47(2): replaced, on 1 April 2019, by section 315 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 47(2): amended, on 1 April 2019, by section 43 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
47B RSCT statements provided by retirement scheme contributor or retirement savings scheme
(1)
This section applies when a retirement scheme contributor or retirement savings scheme withholds an amount of RSCT from a retirement scheme contribution other than a contribution made by way of an imputation credit or Maori authority credit.
(2)
The contributor or scheme must provide to the Commissioner a statement in a form acceptable to the Commissioner showing the amount of retirement scheme contribution, the amount of RSCT relating to the contribution, and any other particulars required by the Commissioner.
(3)
The statement must be provided no later than the 20th of the month after the month in which the amount was withheld.
Compare: 2004 No 35 s NEB 3(1)(b)
Section 47B: inserted, on 1 April 2008, by section 205 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
48 Special arrangements for supply of information by employer or PAYE intermediary to Commissioner
[Repealed]Section 48: repealed, on 1 April 2019, by section 316 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
48B Reconciliation statement for retirement scheme contribution withholding tax
(1)
If a retirement scheme contributor has made a retirement scheme contribution to a retirement savings scheme for a person in an income year, the retirement scheme contributor, or the retirement savings scheme acting on behalf of the retirement scheme contributor, must deliver to the Commissioner a reconciliation statement for the income year showing the information required by—
(a)
subsection (2), relating to the person; and
(b)
subsection (3), relating to the retirement scheme contributor.
(2)
The reconciliation statement must show the following information for the income year relating to the person referred to in subsection (1):
(a)
the total amount of RSCT payable on retirement scheme contributions; and
(b)
the total amount of imputation credits and Maori authority credits used in meeting the liability for RSCT; and
(c)
the total amount of RSCT paid or payable other than by using imputation credits and Maori authority credits; and
(d)
the amount of each retirement scheme contribution subject to RSCT; and
(e)
the rate used to calculate the RSCT on the retirement scheme contribution; and
(f)
the RSCT for the retirement scheme contribution; and
(g)
the amount of imputation credits attached to the retirement scheme contribution; and
(h)
the amount of imputation credits used to meet the liability for RSCT on the retirement scheme contribution; and
(i)
the amount of Maori authority credits attached to the retirement scheme contribution; and
(j)
the amount of Maori authority credits used to meet the liability for RSCT on the retirement scheme contribution; and
(k)
the amount of RSCT remaining owing on the retirement scheme contribution after the use of imputation credits and Maori authority credits; and
(l)
the amount of RSCT on the retirement scheme contribution paid other than by the use of imputation credits and Maori authority credits; and
(m)
the tax file number, if a rate of less than 39% is used to calculate the RSCT on a retirement scheme contribution; and
(n)
the amount of the imputation credits or Maori authority credits attached to the retirement scheme contribution that are not used to meet the liability for RSCT; and
(o)
the total amount of NRWT payable on retirement scheme contributions; and
(p)
the amount of each retirement scheme contribution that is non-resident passive income; and
(q)
any other particulars the Commissioner may require.
(3)
The reconciliation statement must show the following information for the income year relating to the retirement scheme contributor referred to in subsection (1):
(a)
the total amount of retirement scheme contributions for which RSCT is payable; and
(b)
the total amount of RSCT payable on retirement scheme contributions; and
(c)
the total amount of imputation credits used in meeting the liability for RSCT; and
(d)
the total amount of Maori authority credits used in meeting the liability for RSCT; and
(e)
the total amount of RSCT paid or payable other than by using imputation credits and Maori authority credits.
(4)
The reconciliation statement required by subsection (1) for an income year must be received by the Commissioner on or before the end of the second month following the end of the income year.
Section 48B: inserted, on 19 December 2007, by section 206(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 48B(2)(a): amended, on 1 April 2008, by section 206(2)(a) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 48B(2)(b): amended, on 1 April 2008, by section 206(2)(a) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 48B(2)(c): amended, on 1 April 2008, by section 206(2)(a) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 48B(2)(d): amended, on 1 April 2008, by section 206(2)(a) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 48B(2)(e): amended, on 1 April 2008, by section 206(2)(a) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 48B(2)(f): amended, on 1 April 2008, by section 206(2)(a) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 48B(2)(h): amended, on 1 April 2008, by section 206(2)(a) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 48B(2)(j): amended, on 1 April 2008, by section 206(2)(a) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 48B(2)(k): amended, on 1 April 2008, by section 206(2)(a) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 48B(2)(l): amended, on 1 April 2008, by section 206(2)(a) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 48B(2)(m): amended, on 1 April 2021, by section 28 (and see section 3 for application) of the Taxation (Income Tax Rate and Other Amendments) Act 2020 (2020 No 65).
Section 48B(2)(m): amended, on 1 April 2008, by section 206(2)(a) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 48B(2)(n): amended, on 1 April 2008, by section 206(2)(a) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 48B(2)(o): amended, on 1 April 2008, by section 206(2)(b) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 48B(2)(p): amended, on 1 April 2008, by section 206(2)(c) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 48B(3)(a): amended, on 1 April 2008, by section 206(3) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 48B(3)(b): amended, on 1 April 2008, by section 206(3) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 48B(3)(c): amended, on 1 April 2008, by section 206(3) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 48B(3)(d): amended, on 1 April 2008, by section 206(3) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 48B(3)(e): amended, on 1 April 2008, by section 206(3) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
49 NRWT withholding certificates and annual reconciliations
[Repealed]Section 49: repealed, on 1 April 2020, by section 318 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
50 Statement of payment of RWT
[Repealed]Section 50: repealed, on 1 April 2020, by section 318 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
51 RWT withholding reconciliation statements
[Repealed]Section 51: repealed, on 1 April 2020, by section 320 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
52 Disclosure of interest payments when no requirement to withhold RWT
[Repealed]Section 52: repealed, on 1 April 2020, by section 320 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
53 Disclosure of certain financial arrangement transactions where interest payable to exempt person, etc
[Repealed]Section 53: repealed, on 1 April 2020, by section 320 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
54 Information in relation to recipients of resident passive income
[Repealed]Section 54: repealed, on 1 April 2020, by section 320 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
54B Return 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.
Section 54B: inserted, on 1 July 2016, by section 80 of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).
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 end 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)
the latest date on which they acquire the estate or interest in the residential land, if an instrument to transfer the land to the person is not registered on or before the bright-line end date.
(2)
This section does not apply if the relevant date for the vendor under subsection (1)(a) or (b) is before 1 October 2015.
(3)
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.
(4)
The information must be accompanied by relevant and appropriate documents, as prescribed by the Commissioner.
(5)
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.
(6)
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.
(7)
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.
Section 54C: inserted, on 1 July 2016, by section 80 of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).
Section 54C(1): amended, on 1 July 2024, by section 161 of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
Section 54C(1)(b): amended, on 1 July 2024, by section 161 of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
Section 54C(1)(b): amended (with effect on 27 March 2021), on 30 March 2022, by section 193(2) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
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 of that Act; and
(c)
other relevant particulars.
(2)
The Commissioner may also prescribe any appropriate documents to accompany the form.
Section 54D: inserted, on 1 July 2016, by section 80 of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).
Section 54D(1)(b): amended, on 1 July 2024, by section 161 of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
Section 54D(1)(b): amended (with effect on 27 March 2021), on 30 March 2021, by section 159 of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
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 (obligations) for the 2 years before applying for the certificate, or has an associate (the counted associate) that has had obligations for the 2 years before the person applies for the certificate and the counted associate is,—
(i)
in the same group of companies as the person; or
(ii)
if the person is a limited partnership, a partner of the person; and
(c)
has complied with all obligations for the 2 years before the person applies for the certificate, or the counted associate has complied with all obligations for the 2 years before the person applies for the certificate.
(4)
The requirements in this subsection are that the person, for the residential land, will meet the requirements in section CB 16A of the Income Tax Act 2007.
(5)
The Commissioner must issue an RLWT certificate of exemption to the person.
Section 54E: inserted, on 1 July 2016, by section 80 of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).
Section 54E(3)(b): replaced (with effect on 1 July 2016), on 21 February 2017, by section 109 of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
Section 54E(3)(c): replaced (with effect on 1 July 2016), on 21 February 2017, by section 109 of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
Section 54E(4): amended, on 1 July 2024, by section 161 of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
Section 54E(4): amended (with effect on 27 March 2021), on 30 March 2021, by section 160 of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
55 Consequence of inability to provide tax file numbers
Where any person at any time—
(a)
is required under the reporting requirements in sections 25F to 25I and 25N to provide the Commissioner with any other person’s tax file number; and
(b)
having made reasonable efforts to obtain that tax file number, is unable to do so,—
that person shall, notwithstanding any other provision of the RWT rules, be relieved from that obligation to provide the Commissioner with that tax file number.
Compare: 1976 No 65 s 327Y
Section 55(a): amended, on 1 April 2020, by section 322 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
55B Information relating to offshore persons and tax file numbers
(1)
The Commissioner must not allocate a tax file number requested by an offshore person until the Commissioner—
(a)
receives a current bank account number for the offshore person:
(b)
is satisfied that the information available to the Commissioner relating to the offshore person provides the Commissioner with an assurance of the identity and background of the offshore person.
(2)
Subsection (1) does not apply to a person—
(a)
who needs a tax file number solely because they are a non-resident supplier of goods and services under the Goods and Services Tax Act 1985:
(b)
who is registered, or has applied to be registered, under section 54B of that Act:
(c)
for whom a reporting entity under the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 has conducted the procedures for customer due diligence required under that Act and regulations made under that Act.
(3)
Despite subsection (1), a non-resident seasonal worker under the recognised seasonal employer (RSE) instructions is not required to provide the Commissioner with a current bank account number for the first month of a period of employment in New Zealand.
(4)
A person who has a tax file number and a current bank account must immediately provide the person’s current bank account number to the Commissioner if the person,—
(a)
after 1 October 2015, becomes an offshore person under paragraph (b) of the definition of offshore person; and
(b)
has not previously provided the person’s current bank account number to the Commissioner.
Section 55B: inserted, on 29 March 2018, by section 323 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 55B(1): replaced (with effect on 29 March 2018), on 18 March 2019, by section 44(1) (and see section 44(2) for application) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
56 Returns of special accounts
[Repealed]Section 56: repealed, on 2 June 2016, by section 116 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
56B Certain information required in returns
(1)
This section applies for the purposes of section RE 24 of the Income Tax Act 2007 when an amount of tax for a taxable Maori authority distribution is treated as a Maori authority credit attached to the distribution.
(2)
The company paying the dividend and withholding the amount of tax under section RA 6(1) of that Act must provide to the Commissioner information in relation to the amount of tax in its annual ICA return under section 69.
(3)
For the purposes of subsection (2) and the payment of the dividend, the company must provide to the Commissioner information in relation to the dividend in—
(a)
its dividend statement under section 25G if it is an ICA company; or
(b)
if paragraph (a) does not apply, a form approved by the Commissioner, containing the information set out in section 67(a) to (c) and (f) and filed no later than 31 May after the end of the tax year.
(4)
The Maori authority making the distribution and withholding the amount of tax under section RA 6(1) of the Income Tax Act 2007 must provide to the Commissioner information in relation to the amount of tax in its annual Maori authority credit account return.
(5)
For the purposes of subsection (4) and the making of the distribution, the Maori authority must provide to the Commissioner information in relation to the distribution in the distribution statement prepared under section 25I.
Compare: 2004 No 35 ss NF 8(2)–(4), NF 8A
Section 56B: inserted, as section 24K, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 56B: renumbered, on 1 April 2019, by section 281(1) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 56B(1): replaced, on 1 April 2017, by section 306(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section 56B(2): replaced, on 1 April 2017, by section 306(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section 56B(3)(a): amended, on 1 April 2020, by section 281(2)(a) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 56B(5): amended, on 1 April 2020, by section 281(2)(b) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
57 Maori authority to make returns of income
(1)
Every year a Maori authority must furnish a return in the prescribed form that is a complete statement of the Maori authority’s taxable income for the preceding year.
(1B)
Section 25I sets out how and when investment income information for a Maori authority distribution must be delivered to the Commissioner.
(2)
The return must be furnished to the Commissioner on or before the date by which returns of income are required under this Act.
Section 57: replaced, on 26 March 2003 (applying for 2004–05 and subsequent income years), by section 97(1) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
Section 57(1B): inserted, on 1 April 2020, by section 324 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
57B Requirements for multi-rate PIEs
(1)
This section sets out the responsibilities for a multi-rate PIE or a proxy for an investor in the PIE. Section 25J sets out how and when investment income information on attributed PIE income must be delivered to the Commissioner.
(2)
The responsibilities for each period are—
(a)
to file a return in the prescribed form—
(i)
showing the amount of the tax liability of the entity for the period; and
(ii)
providing the investment income information required under section 25J; and
(iii)
providing further information that the Commissioner considers relevant; and
(b)
to pay an amount of tax equal to the PIE’s tax liability for the investor for the period.
(3)
If the PIE does not calculate and pay its tax liability using the exit calculation or provisional tax calculation option in section HM 42 or HM 44 of the Income Tax Act 2007 for a tax year, the PIE must carry out their responsibilities for a calculation period in the tax year by the end of the month that follows the month in which the calculation period ends.
(4)
If the PIE calculates and pays its income tax liability using the provisional tax calculation option under section HM 44 of that Act for a tax year, the PIE must carry out their responsibilities for the tax year as a person with a provisional tax liability under the provisional tax rules.
(5)
If the PIE calculates and pays its income tax liability using the exit calculation option under section HM 42 of that Act for a tax year, the PIE must carry out their responsibilities—
(a)
for an exiting investor whose exit period falls in the tax year, for the exit period by—
(i)
the end of the month that follows the month in which the exit period ends:
(ii)
15 January after the end of the exit period, if the period ends in November; and
(b)
for an investor who holds an investor interest at the end of the tax year, for the tax year by the end of the month after the end of the tax year.
(5B)
Despite subsection (5), a foreign investment zero-rate PIE is not required to carry out the responsibilities in relation to exiting investors as described in subsection (5) for a tax year if the only exiting investors of the PIE in the tax year are notified foreign investors. Instead, the PIE must provide the required information in its return for the tax year.
(6)
If the PIE voluntarily makes a payment of income tax under section HM 45 of that Act for a period in a tax year that is not included in a return required under subsection (5), the PIE must file a return in the prescribed form as described in subsection (2)—
(a)
the end of the month that follows the month in which the period ends:
(b)
15 January after the end of the period, if the period ends in November.
(7)
[Repealed](8)
The Commissioner must prescribe 1 or more electronic forms and means of electronic communication in which or by which a return must be provided under this section. The Commissioner may specify conditions relating to the format, either general or in a particular case.
Section 57B: replaced, on 1 April 2010 (applying for 2010–11 and later income years), by section 626(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 57B heading: amended, on 1 April 2020, by section 325(1) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 57B(1): replaced, on 1 April 2020, by section 325(2) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 57B(1): amended (with effect on 1 April 2020), on 30 March 2021, by section 161(1) of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
Section 57B(2)(a): replaced, on 1 April 2020, by section 325(3) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 57B(2)(a)(ii): amended (with effect on 1 April 2020), on 30 March 2021, by section 161(2) of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
Section 57B(5B): inserted, on 2 November 2012, by section 188 of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).
Section 57B(7): repealed, on 1 April 2020, by section 325(5) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 57B(8): inserted, on 1 April 2020, by section 325(6) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
58 Returns of specified charitable, benevolent, philanthropic, or cultural bodies
Every gift-exempt body must, when notified by the Commissioner, furnish a return of its funds derived or received in any tax year and showing the source and application of those funds, together with such other particulars as may be required by the Commissioner.
Compare: 1976 No 65 s 432A(3)
Section 58: amended, on 2 June 2016, by section 117 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section 58: amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
59 Disclosure of trust particulars
(1)
Where any person resident in New Zealand at the time of settlement makes a settlement on or after 17 December 1987 to or for the benefit of a trust or on the terms of a trust and—
(a)
at the time of the settlement there was no trustee of that trust resident in New Zealand; or
(b)
if at the time of the settlement there was a trustee of the trust resident in New Zealand, on any subsequent date there is no trustee of the trust resident in New Zealand,—
that person shall disclose to the Commissioner in the prescribed form and within 3 months of the date of settlement or of the date on which there is no trustee of the trust resident in New Zealand the fact of that settlement, the name and address of the trustee and the beneficiary of the trust, and such further details as may be required by the Commissioner.
(2)
Where any person resident in New Zealand at the time of settlement would be treated as having made a settlement to or for the benefit of a trust or on the terms of a trust but for the application of section YB 21 of the Income Tax Act 2007, and where at the time of settlement there was no trustee of that trust resident in New Zealand, that person shall disclose to the Commissioner in the prescribed form within 3 months of the date of settlement the fact of that settlement, the name and address of the person who is deemed to be the settlor of the trust under section YB 21 of that Act, and such further details as may be required by the Commissioner.
(3)
[Repealed](4)
Nothing in subsections (1) and (2) or in section 93B shall apply to any trust that is a superannuation fund, or to any person in respect of a superannuation fund.
(5)
Nothing in subsections (1) and (2) or in section 93B shall, before 1 April 1990, apply to any superannuation scheme constituted outside New Zealand and classified by the Government Actuary under regulation 29 or regulation 30 of the Superannuation Schemes Regulations 1983.
Compare: 1976 No 65 s 231
Section 59(2): amended (with effect on 1 April 2008), on 6 October 2009, by section 627(a) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 59(2): amended (with effect on 1 April 2008), on 6 October 2009, by section 627(b) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 59(2): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 59(3): repealed, on 7 December 2020, by section 34 of the Taxation (Income Tax Rate and Other Amendments) Act 2020 (2020 No 65).
Section 59(4): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 59(5): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
59BA Annual return for trusts
(1)
A trustee of a trust who derives assessable income for a tax year must file a return for the tax year of all income derived in the corresponding income year by the trustee as trustee of the trust.
(2)
A trustee who is required to file a return for a tax year under subsection (1) and does not meet the requirements of subsection (3) must make the return in the form prescribed by the Commissioner and include, unless otherwise required by the Commissioner,—
(a)
a statement of profit or loss and a statement of financial position:
(b)
the amount, and nature, of each settlement, other than a nil value settlement, that is made on the trust in the income year:
(c)
the name, date of birth, jurisdiction of tax residence, and tax file number and taxpayer identification number, of each settlor who makes a settlement on the trust in the income year or whose details have not previously been supplied to the Commissioner:
(d)
the amount, and nature, of each distribution, other than a nil value distribution, that is made by the trustee in the income year:
(db)
the name, date of birth, jurisdiction of tax residence, and tax file number or taxpayer identification number, of the beneficiary who receives a distribution referred to in paragraph (d):
(e)
the name, date of birth, jurisdiction of tax residence, and tax file number and taxpayer identification number, of each person having a power under the trust to appoint or dismiss a trustee, to add or remove a beneficiary, or to amend the trust deed:
(f)
the other information required by the Commissioner.
(2B)
Subsection (2)(b) does not apply to a non-cash settlement made by a settlor on the trust in the income year if the total market value of all non-cash settlements made by that settlor on the trust in that year is less than $100,000.
(2C)
Subsection (2)(d) does not apply to a non-cash distribution made to a beneficiary by the trustee in the income year if the total market value of all non-cash distributions made to that beneficiary by the trustee in that year is less than $100,000.
(3)
A trustee of a trust who is required to file a return for a tax year under subsection (1) is not required to file a return in the form required by subsection (2) if—
(a)
the trustee is excluded from the requirement to make a return by section 43B:
(b)
the trust is a foreign trust:
(bb)
the trust is a foreign exemption trust:
(c)
the trustees of the trust are incorporated as a board under the Charitable Trusts Act 1957:
(d)
the trust is a charitable trust registered under the Charities Act 2005:
(e)
the trustee is eligible under section HF 2 of the Income Tax Act 2007 to choose under section HF 11 of that Act to become a Maori authority:
(f)
the trust is a widely-held superannuation fund, as defined in section YA 1 of the Income Tax Act 2007:
(g)
the trust is an employee share scheme that is an exempt ESS, as defined in section YA 1 of the Income Tax Act 2007:
(h)
the trustee is a debt funding special purpose vehicle, as defined in section YA 1 of the Income Tax Act 2007:
(i)
the trustee is a lines trust established under the Energy Companies Act 1992.
(4)
If the trustee of a trust is a non-resident, a settlor of the trust who is a New Zealand resident is responsible for ensuring the performance of the obligations imposed on the trustee by this section.
(5)
The Commissioner may vary the requirements set out in subsection (2) for a trustee or class of trustees.
(6)
A variation under subsection (5) is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).
(7)
In this section,—
nil value distribution is a non-cash distribution that is—
(a)
the provision of minor services to the beneficiary that are incidental to the activities of the trust:
(b)
the making available of trust property for a beneficiary if the trust incurs no costs in making that property available to the beneficiary
nil value settlement is a non-cash settlement made on a trust by a settlor that is incapable of being distributed by the trustee as a distribution to a beneficiary (for example, a person may provide services to a trust that are consumed by the trust and cannot be distributed to a beneficiary, or a person may choose not to charge interest on a loan to the trust, which is a transfer of value to the trust but is incapable of being distributed by the trustee)
non-cash distribution is a distribution to the extent to which it is not a distribution of money
non-cash settlement is a settlement to the extent to which it is not a settlement of money.
| Legislation Act 2019 requirements for secondary legislation made under this section | ||||
| Publication | It is not required to be published | LA19 s 73(2) | ||
| Presentation | The Minister must present it to the House of Representatives | LA19 s 114, Sch 1 cl 32(1)(a) | ||
| Disallowance | It may be disallowed by the House of Representatives | LA19 ss 115, 116 | ||
| This note is not part of the Act. | ||||
Section 59BA: inserted, on 7 December 2020, by section 35(1) (and see section 35(2) for application) of the Taxation (Income Tax Rate and Other Amendments) Act 2020 (2020 No 65).
Section 59BA(1): replaced, on 30 March 2021, by section 162(1) of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
Section 59BA(2): amended, on 30 March 2021, by section 162(2) of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
Section 59BA(2)(b): replaced (with effect on 1 April 2024), on 29 March 2025, by section 172(1) (and see section 172(5) for application) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
Section 59BA(2)(d): replaced (with effect on 1 April 2024), on 29 March 2025, by section 172(2) (and see section 172(5) for application) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
Section 59BA(2)(db): inserted, on 31 March 2022, by section 194(1) (and see section 194(3) for application) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section 59BA(2B): inserted (with effect on 1 April 2024), on 29 March 2025, by section 172(3) (and see section 172(5) for application) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
Section 59BA(2C): inserted (with effect on 1 April 2024), on 29 March 2025, by section 172(3) (and see section 172(5) for application) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
Section 59BA(3): replaced, on 30 March 2021, by section 162(3) of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
Section 59BA(3)(a): amended (with effect on 1 April 2021), on 31 March 2023, by section 175(1) (and see section 175(3) for application) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 59BA(3)(b): replaced (with effect on 1 April 2023), on 28 March 2024, by section 137(2) (and see section 137(4) for application) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
Section 59BA(3)(b): replaced (with effect on 1 April 2021), on 28 March 2024, by section 137(1) (and see section 137(3) for application) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
Section 59BA(3)(bb): inserted (with effect on 1 April 2023), on 28 March 2024, by section 137(2) (and see section 137(4) for application) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
Section 59BA(5): inserted, on 30 March 2021, by section 162(4) of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
Section 59BA(6): inserted, on 30 March 2021, by section 162(4) of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
Section 59BA(7): inserted (with effect on 1 April 2024), on 29 March 2025, by section 172(4) (and see section 172(5) for application) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
59BAB Commissioner may require trust information for period after 2013–14 income year
(1)
The Commissioner may require a trustee of a trust to provide, in the prescribed form and by the specified date, information that—
(a)
relates to the trust and a period beginning after the end of the 2013–14 income year and ending before the beginning of the 2021–22 income year; and
(b)
would be required to be provided under section 59BA if the period began after the end of the 2020–21 income year; and
(c)
is in the knowledge, possession, or control of the trustee.
(2)
The Commissioner may issue a notice requiring the trustee of each trust having the characteristics specified in the notice to provide, in the prescribed form and by the specified date, information—
(a)
that is described in subsection (1) and is specified in the notice; and
(b)
is for each period that is specified in the notice and begins after the end of the 2013–14 income year and ends before the beginning of the 2021–22 income year.
(3)
If the trustee of a trust is a non-resident, a settlor of the trust who is a New Zealand resident is responsible for ensuring the performance of the obligations imposed on the trustee by this section.
(4)
A notice under subsection (2) is secondary legislation under the Legislation Act 2019 (see Part 3 of the Legislation Act 2019 for publication requirements).
| Legislation Act 2019 requirements for secondary legislation made under this section | ||||
| Publication | It is not required to be published | LA19 s 73(2) | ||
| Presentation | It is not required to be presented to the House of Representatives because a transitional exemption applies under Schedule 1 of the Legislation Act 2019 | LA19 s 114, Sch 1 cl 32(1)(a) | ||
| Disallowance | It may be disallowed by the House of Representatives | LA19 ss 115, 116 | ||
| This note is not part of the Act. | ||||
Section 59BAB: inserted, on 7 December 2020, by section 35(1) (and see section 35(2) for application) of the Taxation (Income Tax Rate and Other Amendments) Act 2020 (2020 No 65).
Section 59BAB(4): amended, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
59B Foreign exemption trust: registration and disclosure
(1)
The Commissioner may register a foreign exemption trust if a trustee pays the prescribed fee.
(1B)
The Commissioner may treat the registration of a trust under subsection (1) as being in force from a date preceding the successful application for registration of the trust, if the Commissioner considers that the trustee made reasonable efforts to obtain registration at the earlier date.
(1C)
A trust that is registered under this section as a foreign trust at the start of the day on which the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 receives the Royal assent is treated as being registered as a foreign exemption trust from that day.
(2)
A trustee of a foreign exemption trust must apply to the Commissioner for registration of the foreign exemption trust, provide the information required by subsection (3) and the declaration required by subsection (4), and pay the prescribed fee.
(2B)
The requirement under subsection (2) for a trustee to register a foreign exemption trust commences on the later of—
(a)
the date (the amendment assent date) on which the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 receives the Royal assent:
(b)
the due date for an income tax return of the trust relating to the first income year for which the trust meets the requirements to be a foreign exemption trust.
(3)
A trustee applying for registration of a foreign exemption trust (the contact trustee) is responsible for communicating with the Commissioner for the trust and must provide, with the application and fee,—
(a)
the name of the trust:
(b)
the date, amount, settlor, and nature of each settlement on the trust that is not a provision to the trustee at less than market value of minor services incidental to the activities of the trust and is made in the period of time ending with the application and beginning with—
(i)
the date on which the trust is formed, if a trustee is not a natural person or is a professional trustee; or
(ii)
the later of the date on which the trust is formed and 30 June 2013, if subparagraph (i) does not apply and a trustee becomes required to register the trust on the date on which the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 receives the Royal assent; or
(iii)
the later of the date on which the trust is formed and the date that is 4 years before the earliest date on which a trustee becomes required to register the trust, if subparagraphs (i) and (ii) do not apply:
(c)
the name, email address, physical residential or business address, jurisdiction of tax residence, taxpayer identification number, and connection with the trust of—
(i)
each settlor who makes a settlement referred to in paragraph (b):
(ii)
each person with a power to appoint or dismiss a trustee, to amend the trust deed, or to add or remove a beneficiary:
(iii)
each person with a power to control the exercise of a power referred to in subparagraph (ii):
(iv)
each person with a power to control a trustee in the administration of the trust:
(v)
each trustee:
(vi)
each beneficiary that is not a minor and has a fixed interest in the trust:
(vib)
each nominee for a beneficiary that has a fixed interest in the trust:
(vii)
the parent or guardian of a beneficiary that is a minor and has a fixed interest in the trust:
(d)
for each beneficiary that is a minor and has a fixed interest in the trust, the name, date of birth, and taxpayer identification number of the beneficiary:
(e)
for each beneficiary or class of beneficiary that has a discretionary interest in the trust, details sufficient for the Commissioner to determine, when a distribution is made under the trust, whether a person is a beneficiary:
(eb)
for each beneficiary or class of beneficiary that has a residual interest in the trust, details sufficient for the Commissioner to determine, when a distribution is made in the winding up of the trust, whether a person is a residual beneficiary:
(f)
a copy of the trust deed, will, or other document that creates and governs the trust (the creating document), and of each document that amends or supplements the creating document.
(4)
The contact trustee must provide a signed declaration that each person referred to in subsection (3)(c)(i) to (vii)—
(a)
is deceased; or
(b)
despite the efforts of the contact trustee detailed in the declaration, cannot be located by the contact trustee; or
(c)
has been informed of, and has agreed to provide the information necessary for compliance with, the requirements relating to the provision of information relating to the trust and persons connected with the trust imposed by all of—
(i)
(iii)
the regulations made under the Anti-Money Laundering and Countering Financing of Terrorism Act 2009.
(5)
A contact trustee must provide to the Commissioner the details of an addition or alteration to a particular to which subsection (3) refers and any signed declaration under subsection (4) required as a consequence of the addition or alteration.
(6)
A contact trustee who anticipates ceasing to be the person communicating with the Commissioner for the trust must provide to the Commissioner, within 30 days of becoming aware of the anticipated date of the cessation, the details of—
(a)
the anticipated date on which the trustee ceases to be the contact trustee for the foreign trust:
(b)
the email address and physical residential address of the trustee after the anticipated date:
(c)
the name, email address, and physical residential or business address of the replacement contact trustee for the foreign trust after the anticipated date.
(6B)
A contact trustee who anticipates a change in the trustee’s e-mail address, physical residential address, or other contact details, must provide the Commissioner with details of the change within 30 days of becoming aware of the anticipated change.
(7)
Each trustee of a foreign exemption trust is responsible for the performance of the obligations imposed on a trustee relating to registration of the trust, disclosure of information, annual returns, financial statements, and payment of fees.
Section 59B: replaced, on 21 February 2017, by section 11 of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
Section 59B heading: amended, on 1 April 2023, by section 176(1) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 59B(1): replaced, on 1 April 2023, by section 176(2) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 59B(1B): inserted, on 1 April 2023, by section 176(2) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 59B(1C): inserted, on 1 April 2023, by section 176(2) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 59B(2): replaced, on 1 April 2023, by section 176(3) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 59B(2B): inserted, on 1 April 2023, by section 176(3) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 59B(3): amended, on 1 April 2023, by section 176(4) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 59B(3)(b)(i): amended, on 1 April 2023, by section 176(5) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 59B(3)(c)(vi): replaced, on 1 April 2023, by section 176(6) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 59B(3)(c)(vib): inserted, on 1 April 2023, by section 176(6) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 59B(3)(c)(vii): replaced, on 1 April 2023, by section 176(6) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 59B(3)(d): replaced, on 1 April 2023, by section 176(7) (and see section 176(13) for application) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 59B(3)(e): replaced, on 1 April 2023, by section 176(7) (and see section 176(13) for application) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 59B(3)(eb): inserted, on 1 April 2023, by section 176(8) (and see section 176(13) for application) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 59B(3)(f): replaced, on 1 April 2023, by section 176(9) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 59B(6): amended, on 1 April 2023, by section 176(10) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 59B(6B): inserted, on 1 April 2023, by section 176(11) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 59B(7): replaced, on 1 April 2023, by section 176(12) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
59C Time limits for registration and disclosure of changes
(1)
A trustee who becomes required to register a foreign exemption trust under section 59B(2B)—
(a)
on the date (the amendment assent date) on which the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 receives the Royal assent, is required to apply for the registration in the period beginning with the amendment assent date and ending with 30 April 2023, except if subsection (3) applies; or
(b)
after the amendment assent date, is required to apply for the registration in the period of 30 days from which the requirement commences, except if subsection (3) applies.
(2)
A trustee who is required by section 59B(5) to provide information to the Commissioner after an application for the trust to be registered, must provide the information before or with the income tax return that is next due after the trustee becomes aware of the addition or alteration.
(3)
A period for the meeting of a requirement that would otherwise be given by subsection (1) for a trustee is given by subsection (4) for the trustee if—
(a)
each trustee of the trust is a natural person; and
(b)
for each trustee of the trust who is responsible for the performance of the obligations imposed by section 59B, the trust is the first trust for which the trustee has been a trustee; and
(c)
each trustee of the trust is not a professional trustee; and
(d)
the end of the period of 4 years and 30 days beginning with the earliest date on which the trust becomes a foreign exemption trust (the grace period) occurs after the period that would otherwise be given by subsection (1).
(4)
If subsection (3) applies for a requirement imposed on a trustee, the trustee must meet the requirement within the grace period.
Section 59C: inserted, on 21 February 2017, by section 11 of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
Section 59C(1): replaced, on 1 April 2023, by section 177(1) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 59C(2): replaced, on 1 April 2023, by section 177(2) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 59C(3)(a): amended, on 1 April 2023, by section 177(3) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 59C(3)(b): replaced, on 1 April 2023, by section 177(4) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 59C(3)(c): amended, on 1 April 2023, by section 177(5) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 59C(3)(d): replaced, on 1 April 2023, by section 177(6) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
59D Annual return for foreign exemption trust
(1)
A trustee of a foreign exemption trust must provide to the Commissioner a return for the trust, the declaration required by subsection (2B), and the prescribed fee, for each year (the return year) that—
(a)
includes a period in which—
(i)
a trustee of the trust derives income for which the trustees of the trust take a tax position that the income is exempt income under section HC 26 of the Income Tax Act 2007:
(ii)
the trust is registered as a foreign exemption trust or a trustee is required to register the trust; and
(b)
ends with—
(i)
a date (the balance date) for which the trustee prepares financial statements or is required to prepare financial statements; or
(ii)
31 March if the trustee does not prepare financial statements and is not required to prepare financial statements; and
(c)
begins after 31 March 2023, if a trustee becomes required to register the trust on the date of enactment of this subsection; and
(d)
if the trustee has a grace period referred to in section 59C(3), ends after the grace period.
(2)
A return must be in the form prescribed by the Commissioner and include—
(a)
financial statements for the trust and the return year, if the trustee prepares financial statements or is required to prepare financial statements:
(b)
the date, amount, and nature of each settlement that—
(i)
is not the provision to the trustee, at less than market value, of minor services incidental to the activities of the trust; and
(ii)
is made on the trust in the return year:
(c)
the name, email address, physical residential or business address, jurisdiction of tax residence, and taxpayer identification number of each settlor making the settlement:
(d)
the date, amount, and nature of each distribution made by the trustee of the trust in the return year and the name of the beneficiary who receives the distribution:
(e)
for each beneficiary to which a distribution is made, the email address, physical residential address, jurisdiction of tax residence, and taxpayer identification number of the beneficiary or, if the beneficiary is a minor, the date of birth, jurisdiction of tax residence, and tax identification number of the beneficiary and the name, email address, physical residential address, jurisdiction of tax residence and taxpayer identification number of the parent or guardian of the beneficiary:
(f)
details of each addition or alteration to a particular provided with an application for registration or in an earlier return, if the details have not been provided earlier.
(2B)
The trustee must provide a signed declaration that each settlor referred to in subsection (2)(c)—
(a)
is deceased; or
(b)
despite the efforts of the trustee detailed in the declaration, cannot be located by the trustee; or
(c)
has been informed of, and has agreed to provide the information necessary for compliance with the requirements relating to the provision of information relating to the settlement, the trust, and persons connected with the trust, imposed by all of—
(i)
(iii)
the regulations made under the Anti-Money Laundering and Countering Financing of Terrorism Act 2009.
(3)
A return and the prescribed fee for a foreign exemption trust and a return year must be provided by a trustee to the Commissioner by the later of—
(a)
the date by which the trustee is required to apply for registration of the trust:
(b)
the date that is—
(i)
6 months after the balance date for the trust and the return year, if the trust has a balance date; or
(ii)
the 30 September following the end of the return year, if the trust does not have a balance date.
Section 59D: inserted, on 21 February 2017, by section 11 of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
Section 59D heading: amended, on 1 April 2023, by section 178(1) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 59D(1): replaced, on 1 April 2023, by section 178(2) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 59D(2)(e): amended, on 1 April 2023, by section 178(3) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 59D(2)(f): inserted, on 1 April 2023, by section 178(4) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 59D(2B): inserted, on 1 April 2023, by section 178(5) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 59D(3): replaced, on 1 April 2023, by section 178(6) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
59DB Deregistration of foreign exemption trusts
(1)
The Commissioner may deregister a trust that is registered as a foreign exemption trust if the Commissioner considers that the trust,—
(a)
at the time of registration, did not meet the requirements for registration:
(b)
after the time of registration, ceased to meet the requirements for registration.
(2)
A deregistration under subsection (1) may be effective from—
(a)
the time of registration, if the Commissioner considers the trust did not meet the requirements for the registration; or
(b)
a time after the registration at which the Commissioner considers the trust had ceased to meet the requirements for registration.
(3)
If the Commissioner proposes to deregister a trust, the Commissioner must give notice of the proposal to the contact trustee of the trust not less than 30 days before the deregistration is implemented.
(4)
The contact trustee for a trust must apply to the Commissioner for deregistration of the trust if the trustee becomes aware that the trust does not meet the requirements for registration.
(5)
A trustee making an application under subsection (4) must provide with the application—
(a)
the reasons for the application; and
(b)
a return for the trust for the income year, or part of the income year, for which the trust meets the requirements for registration and that includes the day before the day on which the trust ceases to meet the requirements for registration; and
(c)
further information required by the Commissioner.
Section 59DB: inserted, on 1 April 2023, by section 179 of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
59E Fees: regulations and exemption
(1)
The Governor-General may from time to time, by Order in Council, make regulations prescribing—
(a)
the fee for an application for the registration of a foreign exemption trust:
(b)
the fee for an annual return for a foreign exemption trust.
(2)
A regulation made under subsection (1) may set out the period for which a fee prescribed by the regulations is to apply.
(3)
Until the commencement of the first regulation made under subsection (1),—
(a)
the prescribed fee for an application for the registration of a foreign exemption trust is $270 inclusive of goods and services tax:
(b)
the prescribed fee for an annual return for a foreign exemption trust and a return year is $50 inclusive of goods and services tax.
(4)
Subsection (3) and this subsection are repealed when that first regulation commences.
(5)
A trustee for a foreign exemption trust is not required to pay a fee referred to in subsection (1) if each trustee for the foreign exemption trust—
(a)
is a natural person; and
(b)
is not a professional trustee.
(6)
Regulations under subsection (1) are secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).
| Legislation Act 2019 requirements for secondary legislation made under this section | ||||
| Publication | PCO must publish it on the legislation website and notify it in the Gazette | LA19 s 69(1)(c) | ||
| Presentation | The Minister must present it to the House of Representatives | LA19 s 114, Sch 1 cl 32(1)(a) | ||
| Disallowance | It may be disallowed by the House of Representatives | LA19 ss 115, 116 | ||
| This note is not part of the Act. | ||||
Section 59E: inserted, on 21 February 2017, by section 11 of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
Section 59E(1)(a): amended, on 1 April 2023, by section 180(1) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 59E(1)(b): amended, on 1 April 2023, by section 180(1) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 59E(3)(a): amended, on 1 April 2023, by section 180(2) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 59E(3)(b): amended, on 1 April 2023, by section 180(2) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 59E(5): amended, on 1 April 2023, by section 180(3)(a) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 59E(5): amended, on 1 April 2023, by section 180(3)(b) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 59E(5)(b): replaced, on 1 April 2023, by section 180(4) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 59E(6): inserted, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
60 Returns of inter-related arrangements
[Repealed]Section 60: repealed, on 20 May 1999 (applying on and after 20 May 1999), by section 70(1) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
61 Disclosure of interest in foreign company or foreign investment fund
(1)
Where any person has at any time in an income year an income interest or a control interest in a foreign company or an attributing interest in a foreign investment fund, that person shall disclose to the Commissioner, in the prescribed form and within the time allowed by section 37 for providing the person’s return of income for the relevant tax year,—
(a)
the existence and nature of that interest; and
(b)
such other information as may be required by the Commissioner in respect of that interest for the purposes of the administration of the Income Tax Act 2007:
provided that, unless the Commissioner requires, no person shall be required to disclose a control interest to the extent to which such control interest exists only by virtue of the application of section EX 3(1)(b) or (d) of the Income Tax Act 2007.
(1B)
A trustee of a foreign trust who makes the disclosure required by section 59B is exempt from the requirements of subsection (1).
(1C)
A multi-rate PIE that does not calculate and pay tax using the provisional tax calculation option under section HM 44 of the Income Tax Act 2007 must make a disclosure under subsection (1) in the prescribed form within the time allowed by section 37 for filing its return for the corresponding tax year under section 25J.
(2)
The Commissioner may exempt any person or class of persons from the requirements of subsection (1) where, in the opinion of the Commissioner, disclosure by that person or class or classes of persons is not necessary for the administration of the international tax rules.
(3)
The Commissioner may at any time cancel any exemption granted to any person or class or classes of persons under subsection (2).
Compare: 1976 No 65 s 245W
Section 61 heading: amended, on 17 October 2002 (applying on and after 17 October 2002), by section 80(1) of the Taxation (Relief, Refunds and Miscellaneous Provisions) Act 2002 (2002 No 32).
Section 61(1): amended (with effect on 1 April 2008), on 6 October 2009, by section 628(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 61(1)(b): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 61(1) proviso: amended (with effect on 1 April 2008), on 6 October 2009, by section 628(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 61(1) proviso: amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 61(1B): inserted, on 1 October 2006, by section 222 of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).
Section 61(1B): amended, on 1 April 2023, by section 181 of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 61(1C): replaced, on 1 April 2010 (applying for 2010–11 and later income years), by section 628(5) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 61(1C): amended (with effect on 1 April 2020), on 30 March 2021, by section 163 of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
61B Disclosure requirements for high-value assets intended to be used in making taxable supplies
(1)
A registered person who acquires land, a ship, or an aircraft, with the intention of using it to make taxable supplies must disclose to the Commissioner, in the form and by the deadline prescribed by the Commissioner,—
(a)
the existence and nature of the acquisition; and
(b)
such other information as may be required by the Commissioner.
(2)
The Commissioner may exempt any person or class of persons from the requirements of subsection (1) where, in the opinion of the Commissioner, that person is at low risk of using the relevant asset for a use other than for making taxable supplies.
Section 61B: inserted, on 1 April 2023, by section 182 of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
62 Returns as to debentures and interest on debentures
Every company or local or public authority shall from time to time, as required by the Commissioner, make a return giving such particulars as the Commissioner requires relative to debentures issued by that company or local or public authority, the holders of the debentures, and the interest paid or payable on the debentures.
Compare: 1976 No 65 s 431
63 Commissioner to be notified of bonus issue
Every company that makes any bonus issue in any year shall, within the time within which that company is required to furnish a return of its income for the tax year, notify the Commissioner by providing a statement showing particulars of every bonus issue so made in that year, together with such further particulars as may be required by the Commissioner.
Compare: 1976 No 65 s 13A
Section 63: amended, on 2 June 2016, by section 118 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section 63: amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
63B Disclosure requirements for exempt ESSs
(1)
A company must notify the Commissioner, in the form prescribed by the Commissioner, that there is an exempt ESS for its employees that meets the criteria in section CW 26C(2) to (9) of the Income Tax Act 2007.
(2)
For a tax year, a company that has an exempt ESS for its employees must notify the Commissioner annually, in the form prescribed by the Commissioner, of the following:
(a)
grants of shares made to employees for the tax year:
(b)
any other information required by the Commissioner.
(3)
The form described in subsection (2) must be given to the Commissioner on or before the 31 May following the end of the relevant tax year.
Section 63B: inserted, on 29 March 2018, by section 327 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
64 Co-operative company to provide particulars of deemed dividend
A co-operative company that makes an election in relation to a notional distribution under section OB 79 of the Income Tax Act 2007 shall—
(a)
furnish, with the return furnished under section 33 of this Act for the income year in which the determination is made, particulars of the dividend deemed to have been paid; and
(b)
retain such particulars as will enable the Commissioner to determine whether any subsequent distribution in respect of the deemed dividend is excluded from being a dividend under section CD 33(2) of the Income Tax Act 2007.
Compare: 1976 No 65 s 394ZA(3)
Section 64: amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 64(a): amended (with effect on 1 April 2005), on 3 April 2006 (applying for income years corresponding to 2005–06 and subsequent tax years), by section 223(1) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).
Section 64(b): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 64(b): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
65 Information to be furnished with return by petroleum mining entity making dispositions of shares or trust interests
Every controlled petroleum mining entity shall furnish to the Commissioner, with its annual return, the following information with respect to disposals to which section CX 42 or DT 13 of the Income Tax Act 2007 applies that are made during the relevant income year:
(a)
the date of the disposal; and
(b)
the number of shares, or the proportion of the trust represented by the trust interest, comprised in the disposal; and
(c)
the name and address of the person disposing of and the person acquiring the shares or trust interest.
Compare: 1976 No 65 s 214K(4)
Section 65: amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 65: amended (with effect on 1 April 2005), on 3 April 2006 (applying for income years corresponding to 2005–06 and subsequent tax years), by section 224(1) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).
Section 65: amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 65(a): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 65(b): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
65B Information to be furnished with return by entity apportioning interest expenditure under section FE 6B
A company or person apportioning its interest expenditure under section FE 6B of the Income Tax Act 2007 for an income year must furnish to the Commissioner, no later than when the company or person is required to furnish a return of its income for the corresponding tax year, the following information in the form and by the means prescribed by the Commissioner:
(a)
notice to the Commissioner that the section has been applied; and
(b)
a reconciliation of adjusted net profit under section FE 5(1BC) of that Act to GAAP net profit; and
(c)
a reconciliation of goodwill to items presented in the GAAP balance sheet; and
(d)
further information that is required by the Commissioner.
Section 65B: inserted (with effect on 1 July 2009 and applying for income years beginning on or after that date), on 7 May 2012, by section 143(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
66 Annual and other returns for PCA persons
[Repealed]Section 66: repealed, on 1 July 2010, by section 629(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
67 Company dividend statement when ICA company declares dividend
[Repealed]Section 67: repealed, on 1 April 2020, by section 328 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
68 Statement when FDP credit attached to dividend
[Repealed]Section 68: repealed, on 1 April 2017, by section 315 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
68A Statement when CTR credit attached to dividend
[Repealed]Section 68A: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 144(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
68B Distribution statement required when Maori authority makes distribution
[Repealed]Section 68B: repealed, on 1 April 2020, by section 329 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
68C Tax credit relating to KiwiSaver and complying superannuation fund members: member credit form
(1)
This section applies to a person’s fund provider.
(2)
The fund provider must claim a tax credit under section MK 1(1) of the Income Tax Act 2007 for the person for a member credit year, if the fund provider—
(a)
is the person’s fund provider on—
(i)
30 June of the member credit year; or
(ii)
the day in the member credit year that is before the person ceases to be a member of the fund provider’s fund or scheme due to permitted withdrawals other than transfers; and
(b)
is reasonably satisfied of the number of days in the member credit year on which the person resides mainly in New Zealand; and
(c)
has no knowledge that the person does not meet the requirements of section MK 2(1)(a) to (c), (cc), and (d)(i) and (ii) of that Act for any part of the member credit year.
(3)
The fund provider must claim a tax credit for the person for the member credit year by furnishing to the Commissioner a member credit claim in relation to the person, in the form prescribed by the Commissioner. The member credit claim must—
(a)
contain the person’s name, address, and (if known) tax file number, the amount of the person’s member credit contributions for the member credit year, and any other information that the Commissioner may require.
(b)
[Repealed](4)
The fund provider may claim an amount of a tax credit under section MK 1(1) of the Income Tax Act 2007 for the person if the provider meets the requirements of subsections (2)(b) and (c), and is satisfied that the amount of tax credit has not previously been claimed. A claim under this subsection may be supplementary to or included in a claim under subsection (3), and must be in the form prescribed under subsection (3).
Section 68C: inserted, on 1 July 2007, by section 56 of the Taxation (KiwiSaver and Company Tax Rate Amendments) Act 2007 (2007 No 19).
Section 68C(2): amended (with effect on 1 April 2008), on 6 October 2009, by section 630(1)(a) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 68C(2)(b): amended (with effect on 1 April 2008), on 6 October 2009, by section 630(1)(b) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 68C(2)(c): amended, on 1 July 2025, by section 28(1) (and see section 28(2) for application) of the Taxation (Budget Measures) Act 2025 (2025 No 26).
Section 68C(2)(c): amended (with effect on 1 April 2008), on 6 October 2009, by section 630(1)(c) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 68C(3)(a): amended (with effect on 1 July 2007), on 19 December 2007, by section 18(1) of the Taxation (KiwiSaver) Act 2007 (2007 No 110).
Section 68C(3)(b): repealed, on 6 October 2009, by section 630(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 68C(4): replaced (with effect on 1 July 2007), on 19 December 2007, by section 18(2) of the Taxation (KiwiSaver) Act 2007 (2007 No 110).
Section 68C(4): amended, on 1 April 2008, by section 18(3) of the Taxation (KiwiSaver) Act 2007 (2007 No 110).
Research and development
Heading: inserted, on 1 April 2019, by section 30 (and see section 3 for application) of the Taxation (Research and Development Tax Credits) Act 2019 (2019 No 15).
68CB Research and development tax credits: general approval
(1)
For the purposes of section LY 3(1)(d) of the Income Tax Act 2007, a person’s research and development activities are approved for the income year, if the Commissioner approves the activities, as provided by subsections (2) to (7), and—
(a)
the person’s application for approval does not contain a material omission or misrepresentation; and
(b)
the person complies with any conditions in the Commissioner’s approval; and
(c)
there is no material change in the provisions in subpart LY of that Act and any associated provisions.
(d)
[Repealed](2)
The Commissioner may, in accordance with this section, approve a person’s research and development activities for an income year (the first income year), the income year immediately before (the prior year), and up to 2 income years immediately after, if the person makes an application in accordance with subsection (3) on or before the last day of the 3rd month after the end of the first income year. For a prior year, the Commissioner may only approve supporting research and development activities described in section LY 5(1)(ab)(i) of the Income Tax Act 2007.
(3)
A person must apply to the Commissioner for approval in the form prescribed by the Commissioner, including—
(a)
the activities the person wants the Commissioner to approve; and
(b)
the income years for which approval is sought; and
(c)
any other information required by the Commissioner.
(3B)
If a person’s research and development activities materially change during the period of an approval, and they want the change to be covered by the approval, they must apply to the Commissioner for a variation of the approval by the deadline in subsection (7) or (7B), as applicable.
(3C)
Upon application, the Commissioner may amend an approval if—
(a)
the amendment is only to correct the name of the person named in the approval; and
(b)
both the person named in the original approval and the person applying for the amendment are members of the same wholly-owned group.
(3C)
[Repealed](4)
The Commissioner may only approve a person’s activities to the extent to which, in the opinion of the Commissioner, the relevant activity is a core research and development activity or a supporting research and development activity.
(5)
If the Commissioner approves a person’s activities for an income year, the Commissioner must notify the person what activities of the person the Commissioner approves of as core research and development activities or supporting research and development activities, for which income years, and any conditions upon which the approval is made.
(6)
The Commissioner must notify the person of the intention to decline the application before the application is declined.
(7)
The Commissioner may vary an approval, upon application, if the variation application meets the requirements in subsection (1)(a), the variation applied for meets the requirements of subsection (4), and the application is made on or before the last day of the 3rd month after the end of the relevant income year. If the Commissioner accepts the variation, then the Commissioner must notify the person in accordance with subsection (5).
(7B)
The Commissioner may vary an approval, upon application, to the extent to which the variation application relates solely to a supporting research and development activity for the income year immediately after the relevant income year, as provided by section LY 5(1)(ab)(ii) of the Income Tax Act 2007, if the variation application meets the requirements of subsection (1)(a) of this section, the variation applied for meets the requirements of subsection (4) of this section, and the application is made on or before the last day of the 15th month after the end of the relevant income year. If the Commissioner accepts the variation, then the Commissioner must notify the person in accordance with subsection (5) of this section.
(7C)
The Commissioner may vary an approval, upon application, to the extent to which the variation application relates solely to a supporting research and development activity for the 2019–20 income year, if the variation application meets the requirements of subsection (1)(a) of this section, the variation applied for meets the requirements of subsection (4) of this section, and the application is made on or before 31 August 2022. If the Commissioner accepts the variation, then the Commissioner must notify the person in accordance with subsection (5) of this section.
(8)
The Commissioner’s approval under this section binds the Commissioner in accordance with the provisions of this section.
Section 68CB: replaced, on 1 April 2020, by section 45 (and see section 38 for application) of the Taxation (Research and Development Tax Credits) Act 2019 (2019 No 15).
Section 68CB: deadline to submit application for approval extended to 15 January 2026 (only if made on or before 31 December 2025), on 18 December 2025, by clause 4(1) of the Tax Administration (Extension of Application Deadline for Research and Development Tax Credits) Order 2025 (SL 2025/259).
Section 68CB: deadline to submit application for variation of approval extended to 15 January 2026 (only if made on or before 31 December 2025), on 18 December 2025, by clause 4(2) of the Tax Administration (Extension of Application Deadline for Research and Development Tax Credits) Order 2025 (SL 2025/259).
Section 68CB(1)(c): amended (with effect on 1 April 2020), on 31 March 2023, by section 183(1) (and see section 183(4) for application) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 68CB(1)(d): repealed (with effect on 1 April 2020), on 31 March 2023, by section 183(2) (and see section 183(4) for application) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 68CB(2): amended, on 1 April 2025, by section 173(1) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
Section 68CB(2): amended (with effect on 1 April 2020), on 30 March 2022, by section 195(1) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section 68CB(2): amended (with effect on 1 April 2020), on 30 March 2022, by section 195(2) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section 68CB(3B): inserted (with effect on 1 April 2020), on 31 March 2023, by section 183(3) (and see section 183(4) for application) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 68CB(3C): inserted (with effect on 1 April 2020), on 29 March 2025, by section 173(3) (and see section 173(6) for application) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
Section 68CB(3C) (as inserted by 2024 No 19 s 42): repealed (with effect on 1 April 2021), on 29 March 2025, by section 173(2) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
Section 68CB(7): amended, on 1 April 2025, by section 173(4) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
Section 68CB(7B): inserted (with effect on 1 April 2020), on 30 March 2022, by section 195(3) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section 68CB(7B): amended, on 1 April 2025, by section 173(5) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
Section 68CB(7C): inserted (with effect on 1 April 2020), on 30 March 2022, by section 195(3) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section 68CB(8): inserted, on 1 April 2020, by section 206(1) (and see section 206(2) for application) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
68CC Research and development tax credits: greater than $2 million approval
(1)
This section applies ignoring, for purposes of this subsection only, sections HB 1 and HG 2 of the Income Tax Act 2007 (which relate to entity transparency) and substituting as the relevant person the person’s partnership or look-through company, if a person chooses to apply this section, and—
(a)
has, or reasonably estimates that the person, together with any joint venture of which the person is a member, will have eligible research and development expenditure greater than $2 million for an income year; or
(b)
is a member of a group of companies that has or reasonably estimates that they will have eligible research and development expenditure greater than $2 million for an income year.
(2)
For the purposes of section LY 3(1)(d) of that Act, a person is approved for the income year to the extent to which—
(a)
[Repealed](b)
the Commissioner approves the person’s criteria and methodologies, as provided by subsections (3) to (8), and—
(i)
the person’s application for approval does not contain a material omission or misrepresentation; and
(ii)
the person complies with any conditions in the Commissioner’s approval; and
(iii)
there is no material change in the provisions in subpart LY of the Income Tax Act 2007 and any associated provisions; and
(iv)
the person has, for the income year, given to the Commissioner a research and development certificate with the person’s research and development supplementary return (see: sections 33E and 124ZI).
(3)
The Commissioner may, in accordance with this section, approve a person’s criteria and methodologies for an income year (the first income year), the income year immediately before (the prior year), and up to 2 income years immediately after, if the person makes an application in accordance with subsection (4) on or before the last day of the 6th month before the end of the first income year (application date). For a prior year, the Commissioner may only approve supporting research and development activities described in section LY 5(1)(ab)(i) of the Income Tax Act 2007. The Commissioner may accept and approve an application after the application date if the taxpayer has changed the end date of their income year due to a change in their balance date for the first income year.
(4)
A person must apply to the Commissioner for approval in the form prescribed by the Commissioner, including—
(a)
the criteria and methodologies the person wants the Commissioner to approve; and
(b)
the income years for which approval of a criterion or methodology is sought; and
(c)
any other information required by the Commissioner.
(4B)
If a person’s criteria and methodologies materially change during the period of an approval, and they want the change to be covered by the approval, they must apply to the Commissioner for a variation of the approval by the deadline in subsection (8).
(4C)
Upon application, the Commissioner may amend an approval if—
(a)
the amendment is only to correct the name of the person named in the approval; and
(b)
both the person named in the original approval and the person applying for the amendment are members of the same wholly-owned group.
(4C)
[Repealed](5)
The Commissioner may approve—
(a)
appropriate criteria and methodologies for determining whether an activity is a core research and development activity, a supporting research and development activity, or not a research and development activity at all:
(b)
appropriate criteria and methodologies for determining whether an amount of expenditure or loss is or is not an amount of eligible research and development expenditure.
(6)
If the Commissioner approves a person’s criteria and methodologies for an income year, the Commissioner must notify to the person those criteria and methodologies of the person that the Commissioner approves of, for which income years, and any conditions upon which the approval is made.
(7)
The Commissioner must notify the person of the intention to decline the application before the application is declined.
(8)
The Commissioner may vary an approval, upon application, if the variation application meets the requirements in subsection (2)(b), the variation applied for meets the requirements of subsection (5), and the application is made on or before the 7th day of the 2nd month after the end of the relevant income year. If the Commissioner accepts the variation, then the Commissioner must notify the person in accordance with subsection (6).
(9)
The Commissioner may revoke an approval, with effect from the beginning of the income year in which the revocation is made, if the Commissioner considers that the person has classified an activity, or an expenditure or loss in such a way so as to defeat the purpose and application of subpart LY of the Income Tax Act 2007.
Section 68CC: replaced, on 1 April 2020, by section 45 (and see section 38 for application) of the Taxation (Research and Development Tax Credits) Act 2019 (2019 No 15).
Section 68CC: deadline to submit application for approval, or variation of approval, extended to 31 March 2023, on 20 February 2023, by clause 4(2) (and see clauses 4(1) and 5 for application) of the Tax Administration (Research and Development Tax Credit Deadlines for Taxpayers Affected by Weather Events) Order 2023 (SL 2023/11).
Section 68CC(2)(a): repealed, on 1 April 2020, by section 207(1) (and see section 207(2) for application) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 68CC(2)(b)(iv): amended (with effect on 1 April 2020), on 30 March 2021, by section 164(1) (and see section 164(3) for application) of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
Section 68CC(3): amended (with effect on 1 April 2020), on 30 March 2022, by section 196(1) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section 68CC(3): amended (with effect on 1 April 2020), on 30 March 2022, by section 196(2) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section 68CC(3): amended, on 1 April 2021, by section 164(2) (and see section 164(4) for application) of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
Section 68CC(4B): inserted (with effect on 1 April 2020), on 31 March 2023, by section 184(1) (and see section 184(2) for application) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 68CC(4C): inserted (with effect on 1 April 2020), on 29 March 2025, by section 174(2) (and see section 174(3) for application) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
Section 68CC(4C) (as inserted by 2024 No 19 s 43): repealed (with effect on 1 April 2021), on 29 March 2025, by section 174(1) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
68CD Research and development tax credits: approved research and development cap
(1)
For the purposes of section LY 4 of the Income Tax Act 2007, the Commissioner may, in accordance with this section, approve for a person an amount greater than $120 million as the person’s approved research and development cap for an income year.
(2)
A person may request approval for an approved research and development cap by providing information to the Commissioner in the prescribed form on or before the 7th day of the 2nd month after the end of the income year.
(3)
The Commissioner must not approve an approved research and development cap for a person unless—
(a)
the relevant research and development activities give rise to substantial net benefit for New Zealand; and
(b)
the Commissioner has first consulted with the chief executive of the Ministry of Business, Innovation and Employment.
Section 68CD: inserted, on 1 April 2019, by section 30 (and see section 3 for application) of the Taxation (Research and Development Tax Credits) Act 2019 (2019 No 15).
68CE Research and development tax credits: publication of details
(1)
The Commissioner must publish, in a publication chosen by the Commissioner, the names of people who have received a research and development tax credit under subpart LY of the Income Tax Act 2007 and where the amount of their research and development tax credit falls for a tax year, using appropriate dollar bands.
(2)
The names and bands must not be published before 2 years elapse after the end of the tax year to which the relevant tax credit relates.
Section 68CE: inserted, on 1 April 2019, by section 30 (and see section 3 for application) of the Taxation (Research and Development Tax Credits) Act 2019 (2019 No 15).
68CF Research and development tax credits: extension of time for approvals
(1)
The time for a person to make an application, or an application to vary, in relation to an approval under sections 68CB and 68CC for the 2020–21 income year is extended to 31 August 2021, or such later date otherwise allowed by those sections.
(2)
The time for a person to make an application in relation to an approval under section 68CB for an income year is extended to the date that is 3 months after the date that the Commissioner notifies to the person the outcome of their application, for the income year, under section 68CC(4) if they make such an application, or such later date otherwise allowed by section 68CB.
Section 68CF: inserted (with effect on 1 April 2020), on 30 March 2022, by section 197(1) (and see section 197(2) for application) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
68D Statements in relation to research and development tax credits: single persons
[Repealed]Section 68D: repealed (with effect on 1 April 2015), on 24 February 2016, by section 251 of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
68E Statements in relation to research and development tax credits: internal software development groups
[Repealed]Section 68E: repealed (with effect on 1 April 2015), on 24 February 2016, by section 251 of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
68F Requirements for statements in relation to research and development tax credits
[Repealed]Section 68F: repealed (with effect on 1 April 2015), on 24 February 2016, by section 251 of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
69 Annual ICA return
(1)
Subject to subsection (3), an imputation credit account (ICA) company must provide to the Commissioner an annual ICA return in the prescribed form for a tax year, showing—
(a)
the opening balance and closing balance of the imputation credit account for the tax year:
(b)
the amount and source of all credits and debits that have arisen during the tax year as described in sections OA 5(2) and OA 6(2) of the Income Tax Act 2007:
(c)
the amount of any further income tax payable for the tax year under sections OB 65 to OB 67 of that Act:
(d)
the amount of any imputation penalty tax payable for the tax year:
(e)
[Repealed](f)
[Repealed](g)
[Repealed](h)
when the company is a public unit trust or a group investment fund that derives category A income—
(i)
the opening and closing balances of the trust’s or fund’s ASC account for the tax year:
(ii)
the amount and source of all credits and debits that have arisen in the trust’s or fund’s ASC account as described in sections OA 5(6) and OA 6(6) of that Act:
(i)
further information as may be prescribed or required by the Commissioner.
(2)
The annual ICA return required for the tax year by subsection (1) must be provided to the Commissioner no later than—
(a)
the last day of the July that follows the end of the tax year, if the ICA company is an Australian ICA company that is not required to file a return of income for the tax year:
(b)
if paragraph (a) does not apply, the last day on which the ICA company is permitted under section 37 to file a return of income for the tax year.
(3)
Subsection (1) does not apply to an ICA company that is a member of a consolidated imputation group if the ICA for the company has a nil balance at all times during the relevant tax year.
Section 69: replaced, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 69(1): amended (with effect on 1 April 2020), on 31 March 2023, by section 185(1) (and see section 185(3) for application) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 69(1)(e): repealed, on 1 July 2012 (applying for returns relating to income years beginning on or after that date), by section 145(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section 69(1)(f): repealed (with effect on 1 July 2011 and applying for returns relating to income years beginning on or after that date), on 7 May 2012, by section 145(2) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section 69(1)(g): repealed, on 30 March 2017, by section 316 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section 69(3): inserted (with effect on 1 April 2020), on 31 March 2023, by section 185(2) (and see section 185(3) for application) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
69B Annual Maori authority credit account return required by Maori authority
(1)
Subject to subsection (3), a Maori authority must, no later than the time allowed by section 37 for furnishing a return of income for a tax year, furnish to the Commissioner an annual Maori authority credit account return in the prescribed form for the tax year.
(2)
The annual Maori authority credit account return must show—
(a)
the opening and closing balances of the Maori authority credit account for the tax year:
(b)
the amount and sources of all credits and debits that have arisen during the tax year in accordance with sections OK 2 to OK 18 of the Income Tax Act 2007:
(c)
the amount of any further income tax payable for the tax year under sections OK 21 and OK 22 of that Act:
(d)
the amount of any Maori authority distribution penalty tax payable for the tax year:
(e)
such further information as the Commissioner may prescribe or require.
(3)
Subsection (1) does not apply to a Maori authority that is a member of a consolidated imputation group if the ICA for the Maori authority has a nil balance at all times during the relevant tax year.
Section 69B: inserted, on 26 March 2003 (applying for 2004–05 and subsequent income years), by section 100(1) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
Section 69B(1): amended (with effect on 1 April 2020), on 28 March 2024, by section 138(1) (and see section 138(3) for application) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
Section 69B(1): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, except when the context requires otherwise), by section ZA 2(1) of the Income Tax Act 2007 (2007 No 97).
Section 69B(1): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 69B(2)(a): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 69B(2)(b): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 69B(2)(c): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 69B(2)(d): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 69B(3): inserted (with effect on 1 April 2020), on 28 March 2024, by section 138(2) (and see section 138(3) for application) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
70 Annual ICA return to be furnished if: required by Commissioner; requirement for imputation credit account ceases; or balance retrospectively reduced to debit or to less than refund
(1)
The Commissioner may require an ICA company to furnish, within such time as the Commissioner may allow, an annual ICA return in respect of any period specified by the Commissioner.
(2)
A company that in any tax year ceases to be an ICA company shall furnish to the Commissioner, not later than 2 calendar months after the last day on which it is still an ICA company, an annual ICA return in respect of the period commencing on the first day of the tax year and ending with the last day on which the company is an ICA company.
(2B)
An ICA company or consolidated imputation group that is affected by a refund or transfer relating to an amount in a tax pooling account, and occurring after the end of a tax year, must furnish to the Commissioner a revised return for the tax year within 2 calendar months of the date of the refund or transfer if, as a result of the application of section OB 34, OB 35, OP 32, or OP 33 of the Income Tax Act 2007, the refund or transfer causes the balance of the imputation credit account of the company or group for the end of the tax year to become—
(a)
a debit balance:
(b)
a balance that is less than the amount of a refund that the company would anticipate receiving but for sections RM 13 to RM 17, RM 32, and RZ 6 of the Income Tax Act 2007.
(3)
An ICA company may furnish to the Commissioner, at any time, an annual ICA return in respect of the period commencing on the first day of any tax year and ending with any day specified by the company within that tax year, being a day that is not more than 7 days earlier than the date on which the annual ICA return is furnished to the Commissioner.
(4)
An annual ICA return furnished under this section shall, except where the Commissioner otherwise specifies, contain the matters referred to in section 69 as if the references in that section to a tax year were—
(a)
in the case of a return required to be furnished under subsection (1) of this section, references to the period specified by the Commissioner:
(b)
in the case of a return required to be furnished under subsection (2) of this section, references to the period referred to in that subsection:
(c)
in the case of a return furnished under subsection (3) of this section, references to the period referred to in that subsection.
Compare: 1976 No 65 s 394K
Section 70 heading: replaced, on 25 November 2003, by section 113(1) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).
Section 70 heading: amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 70(1): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 70(2): amended (with effect on 1 April 2008), on 29 March 2018, by section 330 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 70(2): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 70(2B): inserted, on 25 November 2003, by section 113(2) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).
Section 70(2B): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 70(2B)(b): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 70(3): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 70(4): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
70B Annual Maori authority credit account return to be furnished in particular cases
(1)
The Commissioner may require a Maori authority to furnish, within the time allowed by the Commissioner, a Maori authority credit account return for a period specified by the Commissioner.
(2)
A Maori authority that ceases to be a Maori authority in a tax year must furnish to the Commissioner, no later than 2 calendar months after the last day on which it is still a Maori authority, a Maori authority credit account return for the period beginning on the first day of the tax year and ending on the last day on which the Maori authority is a Maori authority.
(3)
A Maori authority may furnish to the Commissioner, at any time, a Maori authority credit account return for a period beginning on the first day of a tax year and ending on a day specified by the Maori authority within the tax year, being a day that is not more than 7 days earlier than the date on which the Maori authority credit account return is furnished to the Commissioner.
(4)
A Maori authority credit account return furnished under this section must, except if the Commissioner otherwise specifies, contain the matters referred to in section 69B as if the references in that section to a tax year were—
(a)
in the case of a return required to be furnished under subsection (1), references to the period specified by the Commissioner; and
(b)
in the case of a return required to be furnished under subsection (2) or subsection (3), references to the period referred to in subsection (2) or subsection (3) respectively.
Section 70B: inserted, on 26 March 2003 (applying for 2004–05 and subsequent income years), by section 101(1) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
Section 70B(2): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 70B(3): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 70B(4): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
70C Statements in relation to R&D loss tax credits and R&D repayment tax
(1)
A person must file by electronic means, in the form and electronic format prescribed by the Commissioner, a statement in relation to—
(a)
R&D loss tax credits under the Income Tax Act 2007 that they claim for a tax year:
(b)
R&D repayment tax that they must pay for a tax year.
(2)
The statement described in subsection (1) must be filed with the Commissioner no later than the day that is 30 days after the last day for filing a return of income for the relevant tax year under section 37.
(3)
R&D repayment tax is due on the terminal tax date for the relevant tax year.
Section 70C: inserted (with effect on 1 April 2015), on 24 February 2016, by section 252 of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
Section 70C(2): replaced (with effect on 1 April 2022), on 31 March 2023, by section 186(2) (and see section 186(4) for application) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 70C(2): replaced (with effect on 1 April 2015), on 31 March 2023, by section 186(1) (and see section 186(3) for application) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
71 Annual FDPA return
[Repealed]Section 71: repealed, on 1 April 2017, by section 317 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Foreign dividends[Repealed]
Heading: repealed, on 1 April 2017, by section 318 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
71B Return requirements for refunds: foreign dividends
[Repealed]Section 71B: repealed, on 1 April 2017, by section 319 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
72 Annual FDPA return to be furnished where Commissioner so requires, or where company ceases to be resident in New Zealand
[Repealed]Section 72: repealed, on 1 April 2017, by section 320 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
73 Annual FDPA returns of consolidated groups
[Repealed]Section 73: repealed, on 1 April 2017, by section 321 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
74 Annual ICA return to be furnished in respect of consolidated imputation group
(1)
A nominated company for a consolidated imputation group must, subject to subsection (2), comply in respect of the group with sections 69 and 70 as if—
(a)
the group were a single company; and
(b)
the reference in section 70(2) to that company ceasing to be an ICA company were a reference to the consolidated imputation group—
(i)
ceasing to be a consolidated imputation group; or
(ii)
ceasing to be an imputation group and becoming a consolidated group that is a consolidated imputation group; or
(iii)
ceasing to be a consolidated group that is a consolidated imputation group and becoming an imputation group; and
(c)
each reference in those sections to a provision of this Act or of the Income Tax Act 2007 were, where appropriate, a reference to the equivalent provision applicable to a consolidated imputation group.
(2)
The nominated company for a resident imputation subgroup is not required to furnish an annual ICA return under section 69 in respect of the group for a tax year if the group has no liability to make a payment under section OP 6 of the Income Tax Act 2007 for the tax year.
Compare: 1976 No 65 s 191SD(3)
Section 74 heading: amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 74 heading: amended (with effect on 1 April 2003), on 25 November 2003, by section 114(1) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).
Section 74(1): amended (with effect on 1 April 2003), on 25 November 2003, by section 114(2) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).
Section 74(1)(b): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 74(1)(b): amended (with effect on 1 April 2003), on 25 November 2003, by section 114(3) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).
Section 74(1)(b)(i): inserted (with effect on 1 April 2003), on 25 November 2003, by section 114(3) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).
Section 74(1)(b)(ii): inserted (with effect on 1 April 2003), on 25 November 2003, by section 114(3) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).
Section 74(1)(b)(iii): inserted (with effect on 1 April 2003), on 25 November 2003, by section 114(3) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).
Section 74(1)(b)(iii): amended (with effect on 1 April 2003), on 29 March 2018, by section 331 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 74(1)(c): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 74(1)(c): amended (with effect on 1 April 2003), on 25 November 2003, by section 114(4) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).
Section 74(2): inserted (with effect on 1 April 2003), on 25 November 2003, by section 114(5) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).
Section 74(2): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
75 Notification of amalgamation to Commissioner
Where an amalgamation occurs, the amalgamated company shall, within 63 working days of the date upon which—
(a)
(ab)
in the case of an amalgamation of building societies, the notice of the transfer of all engagements is registered under section 34(3) of the Building Societies Act 1965 or the Taxation (Tax Administration and Remedial Matters) Act 2011 receives the Royal assent (whichever is later); or
(b)
in the case of any amalgamation under section 24A of the Co-operative Dairy Companies Act 1949, the extraordinary resolution referred to in subsection (3)(g) of that section is passed; or
(c)
in the case of any amalgamation occurring under foreign law, the equivalent procedure occurs under foreign law,—
give notice to the Commissioner, in such form as the Commissioner may approve, detailing—
(d)
the name and tax file number (if any) of each amalgamating company and the amalgamated company; and
(e)
the date upon which the amalgamation has effect (being the date provided by paragraph (ab) in the case of an amalgamation of building societies); and
(f)
in any case where the amalgamated company has a non-standard balance date, the non-standard balance date; and
(g)
such other information as the Commissioner may require.
Compare: 1976 No 65 s 191WD(3); 1994 No 76 s 29
Section 75: amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 75(a): amended, on 5 December 2013, by section 14 of the Companies Amendment Act 2013 (2013 No 111).
Section 75(ab): inserted (with effect on 30 September 2010), on 29 August 2011, by section 160(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section 75(e): amended (with effect on 30 September 2010), on 29 August 2011, by section 160(2) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
76 Amalgamated company to assume rights and obligations of amalgamating company
Where any amalgamating company ceases to exist on an amalgamation, the amalgamated company shall, in accordance with section 225 of the Companies Act 1993,—
(a)
comply with all obligations of and meet all liabilities of, and be entitled to all rights, powers and privileges of, the amalgamating company under the Inland Revenue Acts with respect to the tax year in which the amalgamation occurs and all preceding tax years; and
(b)
in particular but without limitation, make a return of income in respect of the amalgamating company and the tax year in which the amalgamation takes place.
Compare: 1976 No 65 s 191WD(7); 1994 No 76 s 29
Section 76: amended, on 5 December 2013, by section 14 of the Companies Amendment Act 2013 (2013 No 111).
Section 76(a): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 76(b): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
77 Company electing to maintain branch equivalent tax account to furnish amended annual ICA return
[Repealed]Section 77: repealed, on 1 July 2012 (applying for returns relating to income years beginning on or after that date), by section 146(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
78 Annual and other returns for BETA persons
(1)
Every BETA person shall furnish to the Commissioner an annual BETA return in the prescribed form for each income year in respect of which the person is required to maintain such an account.
(2)
The annual return shall show—
(a)
the opening and closing balances of the account for the income year:
(b)
the amount and source of all credits and debits that have arisen during the income year as described in sections OA 5(5) and OA 6(5) of the Income Tax Act 2007:
(c)
such further information as may be prescribed or as may be required by the Commissioner.
(3)
Every person liable to furnish an annual return under this section in respect of any income year shall furnish the return not later than the time allowed in accordance with section 37 for the furnishing of a return of income in respect of the income year.
(4)
The Commissioner may require a BETA person to furnish, within such time as the Commissioner may allow, a BETA return in respect of any period specified by the Commissioner.
(5)
A BETA person who ceases to be resident in New Zealand shall furnish to the Commissioner, not later than the last day on which the company or person is so resident, a BETA return in respect of the period commencing on the first day of the income year and ending with the last day on which the person is resident in New Zealand.
(6)
A return required to be furnished under subsection (4) or subsection (5) shall, except as the Commissioner may otherwise specify, contain the information referred to in subsection (2) as if the references in that subsection to an income year were,—
(a)
in the case of a return required to be furnished under subsection (4), references to the period specified by the Commissioner:
(b)
in the case of a return required to be furnished under subsection (5), references to the period referred to in that subsection.
Compare: 1976 No 65 s 394ZZW
Section 78 heading: amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 78(1): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 78(1): amended (with effect on 1 April 2005), on 3 April 2006 (applying for income years corresponding to 2005–06 and subsequent tax years), by section 229(1) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).
Section 78(2)(a): amended (with effect on 1 April 2005), on 3 April 2006 (applying for income years corresponding to 2005–06 and subsequent tax years), by section 229(2) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).
Section 78(2)(b): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 78(2)(b): amended (with effect on 1 April 2005), on 3 April 2006 (applying for income years corresponding to 2005–06 and subsequent tax years), by section 229(3) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).
Section 78(3): amended (with effect on 1 April 2005), on 3 April 2006 (applying for income years corresponding to 2005–06 and subsequent tax years), by section 229(4) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).
Section 78(4): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 78(5): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 78(5): amended (with effect on 1 April 2005), on 3 April 2006 (applying for income years corresponding to 2005–06 and subsequent tax years), by section 229(5) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).
Section 78(6): amended (with effect on 1 April 2005), on 3 April 2006 (applying for income years corresponding to 2005–06 and subsequent tax years), by section 229(6) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).
78B Applications for tax credits
(1)
A taxpayer who has a tax credit under section LJ 2 or LK 1 of the Income Tax Act 2007 must apply for the credit within 4 years after the end of the tax year in which the taxpayer would have the credit in the absence of this section. The Commissioner may extend this 4-year period by another period of up to 2 years.
(2)
The taxpayer must provide with the application under subsection (1) information that is necessary to determine the amount of the credit.
Compare: 2004 No 35 s LC 13(1)
Section 78B: inserted, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
78C Disclosure when changes occur
A taxpayer must provide to the Commissioner, as soon as possible, all relevant information if—
(a)
an amount referred to in section LJ 6 of the Income Tax Act 2007 is changed; and
(b)
the change occurs after the taxpayer has made an application under section 78B.
Compare: 2004 No 35 s LC 13(2)
Section 78C: inserted, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
78D Evidential requirements for tax credits
A taxpayer who has not provided their investment income payer with their tax file number and who has a tax credit under section LB 3 or subparts LE or LO of the Income Tax Act 2007, must provide the Commissioner with sufficient evidence of the credit, including, as applicable—
(a)
for an imputation credit, a shareholder dividend statement:
(b)
[Repealed](c)
for a credit for RWT, an RWT withholding certificate for the amount of RWT:
(d)
for a Maori authority credit, a Maori authority distribution statement for the credit:
(e)
any other information that the Commissioner may require.
Compare: 2004 No 35 ss LB 2(4), LD 3(4), LD 3A(5), LD 8(3), LD 9(4)
Section 78D: inserted, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 78D: amended, on 1 April 2020, by section 208 of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 78D: amended, on 1 April 2017, by section 322(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section 78D(b): repealed, on 1 April 2017, by section 322(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
78E Information for underlying foreign credits
[Repealed]Section 78E: repealed (with effect on 30 June 2009), on 6 October 2009 (applying for all income years beginning on or after 1 July 2009), by section 634(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
78F Time for providing information in relation to underlying foreign credits
[Repealed]Section 78F: repealed (with effect on 30 June 2009), on 6 October 2009 (applying for all income years beginning on or after 1 July 2009), by section 635(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
78G Country-by-country report from large multinational group
(1)
A large multinational group with an ultimate owner that is a New Zealand resident must provide to the Commissioner a report, for each period set by the Commissioner, that includes—
(a)
the information described in the OECD transfer pricing guidelines, Chapter V, Annex III; and
(b)
other information that is required by the Commissioner.
(2)
The report for a period must be provided to the Commissioner—
(a)
in the prescribed electronic format; and
(b)
by the date that is 12 months after the end of the period.
Section 78G: inserted, on 27 June 2018, by section 58 of the Taxation (Neutralising Base Erosion and Profit Shifting) Act 2018 (2018 No 16).
Section 78G(2): replaced, on 1 January 2025, by section 139(1) (and see section 139(2) for application) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
78H Registration for purposes of applied global anti-base erosion rules
(1)
The Commissioner may register an MNE group if it includes an entity—
(a)
to which the global anti-base erosion model rules apply; and
(b)
located in New Zealand under the applied global anti-base erosion rules.
(2)
The Commissioner must deregister an MNE group that has been registered under subsection (1) if the Commissioner is satisfied that the group no longer includes an entity that meets the requirements set out in paragraphs (a) and (b) of that subsection.
(3)
A constituent entity of an MNE group that is not registered under this section must apply to the Commissioner for registration of the MNE group by the date that is 6 months after the end of any fiscal year ending on or after 1 January 2025 in which the constituent entity meets the requirements set out in subsection (1)(a) and (b).
(4)
An application for registration of an MNE group under this section must be in the form prescribed by the Commissioner and contain—
(a)
the name of the ultimate parent entity of the MNE group; and
(b)
the ultimate parent entity’s tax file number, if any; and
(c)
any taxpayer identification numbers of the ultimate parent entity; and
(d)
any other information required by the Commissioner.
(5)
If an MNE group ceases to include an entity that meets the requirements set out in subsection (1)(a) and (b), a constituent entity of the group must notify the Commissioner of that fact by the date that is 6 months after the end of the fiscal year in which the group ceased to include an entity that meets those requirements.
(6)
An obligation of a constituent entity of an MNE group under this section may be met by another constituent entity of the MNE group that meets the requirements set out in subsection (1)(a) and (b).
Section 78H: inserted, on 1 January 2025, by section 140(1) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
78I Pre-assessment annual information reporting requirements for purposes of applied global anti-base erosion rules
(1)
A constituent entity of an MNE group must provide to the Commissioner, in the prescribed electronic format, the information set out in Article 8.1.4(a) to (e) of the global anti-base erosion model rules for the MNE group for each fiscal year in which the constituent entity is—
(a)
an entity to which the global anti-base erosion model rules apply; and
(b)
located in New Zealand under the applied global anti-base erosion rules.
(2)
The information required to be provided under subsection (1) for a fiscal year must be provided to the Commissioner by,—
(a)
for the first fiscal year for which a member of the MNE group is required to provide a multinational top-up tax return, the date that is 18 months after the end of the fiscal year:
(b)
otherwise, the date that is 15 months after the end of the fiscal year.
(3)
Subsection (1) does not apply to a constituent entity of an MNE group for a fiscal year for which the information set out in Article 8.1.4(a) to (e) of the global anti-base erosion model rules for the MNE group has been provided by the relevant date set out in subsection (4)—
(a)
to a foreign competent authority that is obliged to exchange that information with the Commissioner; and
(b)
by—
(i)
the ultimate parent entity of the MNE group; or
(ii)
another constituent entity of the MNE group that has been appointed by the MNE group to provide that information on behalf of the MNE group.
(4)
The relevant date referred to in subsection (3) is,—
(a)
for the first fiscal year for which a member of the MNE group is required to provide a multinational top-up tax return, the date that is 18 months after the end of the fiscal year:
(b)
otherwise, the date that is 15 months after the end of the fiscal year.
(5)
The exclusion in subsection (3) does not apply to a constituent entity of an MNE group for a fiscal year in which the ultimate parent entity of the MNE group is located in New Zealand under the applied global anti-base erosion rules.
(6)
A constituent entity to which the exclusion in subsection (3) applies must notify the Commissioner of—
(a)
the identity of the entity that is providing the relevant information for the fiscal year; and
(b)
the jurisdiction in which that entity is located under the global anti-base erosion model rules.
(7)
A notification under subsection (6) for a fiscal year must be given by,—
(a)
for the first fiscal year for which a member of the MNE group is required to provide a multinational top-up tax return, the date that is 18 months after the end of the fiscal year:
(b)
otherwise, the date that is 15 months after the end of the fiscal year.
(8)
An obligation of a constituent entity of an MNE group under this section may be met by another constituent entity of the MNE group that—
(a)
is located in New Zealand under the applied global anti-base erosion rules; and
(b)
has been appointed for that purpose by the members of the MNE group located in New Zealand under the applied global anti-base erosion rules.
Section 78I: inserted, on 1 January 2025, by section 140(1) (and see section 140(2) for application) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
78J Annual multinational top-up tax return
(1)
This section applies to a constituent entity located in New Zealand under the applied global anti-base erosion rules for a fiscal year in which the constituent entity is an entity to which the global anti-base erosion model rules apply.
(1B)
This section does not apply to a constituent entity that is a securitisation entity if—
(a)
another constituent entity is located in New Zealand in the fiscal year; and
(b)
that other constituent entity is not a securitisation entity.
(2)
The constituent entity must provide to the Commissioner a return for the fiscal year, in the form prescribed by the Commissioner, that shows—
(a)
whether or not the constituent entity has a multinational top-up tax liability for the fiscal year; and
(b)
the amount of multinational top-up tax payable by the constituent entity for the fiscal year, if any; and
(c)
any other information required by the Commissioner.
(3)
The return for a fiscal year must be provided to the Commissioner by,—
(a)
for the first fiscal year for which the constituent entity is required to provide a return under this section, the date that is 20 months after the end of the fiscal year:
(b)
otherwise, the date that is 16 months after the end of the fiscal year.
(4)
A return must contain a notice of the assessment required to be made under section 92BA.
Section 78J: inserted, on 1 January 2025, by section 140(1) (and see section 140(2) for application) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
Section 78J(1B): inserted (with effect on 1 January 2025), on 29 March 2025, by section 175 of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
79 Other annual returns
In addition to the returns required by sections 33, 41 to 44, 59BA, and 78J, every person, whether a taxpayer or not, shall make to the Commissioner such annual returns as may be prescribed for the purposes of this Act or the Income Tax Act 2007.
Compare: 1976 No 65 s 13
Section 79: amended, on 1 January 2025, by section 141(2) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
Section 79: amended (with effect on 7 December 2020), on 28 March 2024, by section 141(1) (and see section 141(3) for application) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
Section 79: amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
80 Commissioner may require other returns to be made
In addition to the returns mentioned in sections 33, 41 to 44, 59BA, 63, 78J, and 79, every person, whether a taxpayer or not, shall, as and when required by the Commissioner, make such further or other returns as the Commissioner requires for the purposes of this Act or the Income Tax Act 2007.
Compare: 1976 No 65 s 14
Section 80: amended, on 1 January 2025, by section 142(2) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2025 No 11).
Section 80: amended (with effect on 7 December 2020), on 28 March 2024, by section 142(1) (and see section 142(3) for application) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
Section 80: amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Part 3A Income statements
[Repealed]Part 3A: repealed, on 1 April 2019, by section 45(1) (and see section 45(2) for application) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
80A Application
[Repealed]Section 80A: repealed, on 1 April 2019, by section 45(1) (and see section 45(2) for application) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
80B Notification required that taxpayer not subject to this Part
[Repealed]Section 80B: repealed, on 1 April 2019, by section 45(1) (and see section 45(2) for application) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
80C Requests for income statements
[Repealed]Section 80C: repealed, on 1 April 2019, by section 45(1) (and see section 45(2) for application) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
80D Commissioner must issue income statement
[Repealed]Section 80D: repealed, on 1 April 2019, by section 45(1) (and see section 45(2) for application) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
80E Particulars to be included in income statement
[Repealed]Section 80E: repealed, on 1 April 2019, by section 45(1) (and see section 45(2) for application) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
80F Taxpayer obligations and assessment on receipt of income statement
[Repealed]Section 80F: repealed, on 1 April 2019, by section 45(1) (and see section 45(2) for application) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
80G Income statement deemed return
[Repealed]Section 80G: repealed, on 1 April 2019, by section 45(1) (and see section 45(2) for application) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
80H Income statement deemed assessment
[Repealed]Section 80H: repealed, on 1 April 2019, by section 45(1) (and see section 45(2) for application) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
80I Deemed matters
[Repealed]Section 80I: repealed, on 1 April 2019, by section 45(1) (and see section 45(2) for application) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Part 3B Credits of tax
Part 3B: inserted, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Applying for payment by instalment
Heading: inserted, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
80KA Applications for payment of tax credit by instalment
(1)
This section applies to applications made under section MF 1 of the Income Tax Act 2007.
(2)
An application by a person who wants to be paid their tax credit, other than a parental tax credit, by instalment must not be made after the selected period starts, unless the first day of the selected period is on or after the first day of the tax year in which the application is made.
(3)
A person who wants to be paid their parental tax credit by instalment must apply no later than 3 months after the date of the dependent child’s birth.
(4)
If a person referred to in subsection (3) applies more than 3 months after the date of the dependent child’s birth, the person may receive the parental tax credit only after taking into account their end of year assessment under subpart LA of the Income Tax Act 2007 for the tax year in which the birth occurs.
(5)
If the 3-month period described in subsection (3) spans 2 tax years and the whole of the selected period falls in the first tax year, the selected period is treated as falling in the second tax year if all instalments are paid to the person in the second tax year.
Compare: 2004 No 35 s KD 5(1B)–(1C)
Section 80KA: inserted, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 80KA(2): replaced (with effect on 1 July 2018), on 18 March 2019, by section 46 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
80KB Contents of application
(1)
An application referred to in section 80KA must—
(a)
be in a form prescribed by the Commissioner; and
(b)
be signed by the person and any other person who, at the time at which the application is made, expects to be, in the selected period, their spouse, civil union partner, or de facto partner; and
(c)
unless the only tax credit the person expects to be entitled to for the relevant tax year is the Best Start tax credit and all dependent children will be less than 1 year old on the last day of the tax year, give for each person who signed the application (the signatory) a complete statement of—
(i)
the family scheme income that is expected to be attributable to the tax year; and
(ii)
the family scheme income that is expected to be attributable to the selected period; and
(d)
choose whether the instalments should be paid weekly or fortnightly; and
(e)
contain any other information required by the Commissioner; and
(f)
be accompanied by the information described in subsection (2), unless the only tax credit the person expects to be entitled to for the relevant tax year is the Best Start tax credit and all dependent children will be less than 1 year old on the last day of the tax year; and
(g)
be accompanied by the information described in subsection (2)(c) and (d), if the only tax credit the person expects to be entitled to for the relevant tax year is the Best Start tax credit and all dependent children will be less than 1 year old on the last day of the tax year.
(2)
The information for the purposes of subsection (1)(f) and (g) is—
(a)
for a signatory who expects to derive income from employment, evidence of the amount of income from employment derived by them in the period of 1 month immediately before the date on which the application is made:
(b)
for a signatory who expects to derive income from a business,—
(i)
a copy of the financial statements of the business for the tax year or corresponding income year immediately before the tax year that contains the selected period; or
(ii)
if the financial statements referred to in subparagraph (i) have not been completed, a copy of the financial statements for the business for the tax year or corresponding income year that is before the year immediately before the tax year that contains the selected period; or
(iii)
a set of budgeted accounts of the business for the tax year or corresponding income year that contains the selected period; or
(iv)
other evidence in relation to the business for the tax year or corresponding income year that contains the selected period:
(c)
unless paragraph (d) applies, the tax file number of each child for whom an entitlement to a tax credit arises:
(d)
in the case of a child that has died or is given up for adoption, a birth certificate or other evidence verifying the birth or existence of the child for whom an entitlement to a tax credit arises.
(3)
Subsection (2)(a) does not apply if the Commissioner considers that the Commissioner has enough evidence of a signatory’s income from employment.
(4)
Subsection (2)(d) does not apply to an application made by a person who is an adoptive parent, as that term is defined in the Adoption Act 1955.
Compare: 2004 No 35 s KD 5(2)–(2AB)
Section 80KB: inserted, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 80KB(1)(c): amended, on 1 July 2018, by section 28(1) of the Families Package (Income Tax and Benefits) Act 2017 (2017 No 51).
Section 80KB(1)(f): replaced, on 1 July 2018, by section 28(2) of the Families Package (Income Tax and Benefits) Act 2017 (2017 No 51).
Section 80KB(1)(g): inserted, on 1 July 2018, by section 28(2) of the Families Package (Income Tax and Benefits) Act 2017 (2017 No 51).
Section 80KB(2): amended, on 1 July 2018, by section 28(3) of the Families Package (Income Tax and Benefits) Act 2017 (2017 No 51).
80KC When tax file number of child does not accompany application
(1)
Subsection (2) applies when—
(a)
an application referred to in section 80KA is not accompanied by the tax file number of each child for whom an entitlement to a tax credit arises; and
(b)
the Commissioner has enough other evidence of the person’s entitlement.
(2)
The Commissioner must—
(a)
provide the person with a notice of entitlement; and
(b)
pay to the person instalments of a tax credit under the family scheme for a period of 56 days.
(3)
Subsection (4) applies when the person or their spouse, civil union partner, or de facto partner does not provide the tax file number of a child for whom an entitlement to a tax credit arises within the 56-day period.
(4)
The Commissioner must stop paying the tax credit for the child until the tax file number is provided.
Compare: 2004 No 35 s KD 5(3), (3A)
Section 80KC: inserted, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 80KC(2)(b): amended, on 1 July 2018, by section 29 of the Families Package (Income Tax and Benefits) Act 2017 (2017 No 51).
80KD What Commissioner must do on receipt of application
(1)
This section applies when the Commissioner receives an application that complies with section 80KB.
(2)
The Commissioner must do the following:
(a)
determine under the family scheme, the estimated amount of tax credit to which the person would be entitled for the selected period; and
(b)
calculate under section MF 3 of that Act the amount that, if the Commissioner gave a person a notice of entitlement for the whole selected period, would be the interim instalment of the tax credit that would be set out in the notice; and
(c)
for all or some of the selected period, give the person a notice (the notice of entitlement) setting out—
(i)
the amount of the instalment of the tax credit to which the person is entitled; and
(ii)
the amount after abatement contributed by the family tax credit to the instalment; and
(iii)
the amount of credit after abatement contributed by the in-work tax credit to the instalment; and
(iv)
the amount after abatement contributed by the child tax credit to the instalment; and
(v)
the amount after abatement contributed by the parental tax credit to the instalment; and
(vi)
the amount contributed by the minimum family tax credit to the instalment.
(3)
The Commissioner must keep a copy of every notice of entitlement that is given under this section.
Compare: 2004 No 35 s KD 5(4), (5)(a)
Section 80KD: inserted, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 80KD(2)(a): amended, on 1 July 2018, by section 30 of the Families Package (Income Tax and Benefits) Act 2017 (2017 No 51).
Section 80KD(2)(c)(ii): amended, on 1 April 2008, by section 211(a) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 80KD(2)(c)(iii): amended, on 1 April 2008, by section 211(b) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 80KD(2)(c)(vi): amended, on 1 April 2008, by section 211(c) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Notices of entitlement
Heading: inserted, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
80KE Notices of entitlement
A notice of entitlement issued under section 80KD—
(a)
is not transferable; and
(b)
is subject to the terms and conditions set out in it by the Commissioner.
Compare: 2004 No 35 s KD 5(11)
Section 80KE: inserted, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
80KF Effect of giving notice of entitlement
(1)
If a notice of entitlement has been given to a person, the Commissioner must pay the person instalments of tax credit under section 80KI.
(2)
A person continues to be entitled to a tax credit under section MC 2 or, as applicable, sections MA 1 and ME 1 of the Income Tax Act 2007 for relationship periods after the relationship period for which an application was made, until the Commissioner cancels the notice under section 80KH.
Compare: 2004 No 35 s KD 5(2A), (5)(b), (7)
Section 80KF: inserted, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 80KF(1): amended (with effect on 1 April 2008), on 29 August 2011 (applying for 2008–09 and later income years), by section 161(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
80KG Notifying Commissioner of events affecting notice of entitlement
(1)
Subsection (2) applies when—
(a)
a person has been given a notice of entitlement; and
(b)
1 or more of the events described in subsection (3) occur within the period starting on the date of the notice of entitlement and ending on the last day of the selected period.
(2)
The person must notify the Commissioner immediately if an event of the kind described in subsection (3) occurs that may result in the person losing their entitlement.
(3)
The events include—
(a)
the person or their spouse, civil union partner, or de facto partner stops being the principal caregiver of a child, and the person expects that they will not resume the role of principal caregiver for a period of more than 56 consecutive days; or
(b)
the person starts or stops being a spouse, civil union partner, or de facto partner; or
(c)
any other event of a kind set out in the notice of entitlement for the purposes of this subsection.
(4)
Subsection (5) applies when—
(a)
a notice of entitlement has been issued to a person; and
(b)
1 or more of the events described in subsection (6) occur.
(5)
The person may notify the Commissioner if an event of the kind described in subsection (6) occurs that may change a person’s entitlement.
(6)
The events include—
(a)
the person or their spouse, civil union partner, or de facto partner becomes the principal caregiver of any child; or
(b)
something happens that the person thinks may affect their entitlement to the tax credit specified in the notice of entitlement; or
(c)
the notice of entitlement is lost or destroyed.
Compare: 2004 No 35 s KD 5(9)
Section 80KG: inserted, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
80KH Cancellation of notice of entitlement
(1)
This section applies when the Commissioner—
(a)
is notified under section 80KG; or
(b)
considers that a notice of entitlement given to a person no longer applies; or
(c)
is advised by the chief executive of the administering department, under an information sharing agreement referred to in section 18E(2), that the person is also receiving a tax credit from the chief executive or will receive a tax credit from the chief executive.
(2)
The Commissioner may, on notifying the person,—
(a)
cancel the notice of entitlement; or
(b)
provide a replacement notice of entitlement for the same relationship period or a different relationship period, or provide a supplement to the notice of entitlement, as appropriate, having regard to information in the Commissioner’s possession.
Compare: 2004 No 35 s KD 5(10), (12)
Section 80KH: inserted, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 80KH(1)(c): amended, on 18 March 2019, by section 113 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 80KH(1)(c): amended, on 31 August 2017, by section 323 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Payments to holders of notices of entitlement
Heading: inserted, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
80KI Payment of tax credit by instalment by Commissioner
(1)
This section applies when the Commissioner has given a notice of entitlement to a person.
(2)
In the period described in subsection (3), the Commissioner must pay to the person the instalments of the tax credit set out in the notice of entitlement.
(3)
The period—
(a)
starts on the day stated in the notice of entitlement; and
(b)
ends with the earlier of—
(i)
the day on which the notice of entitlement is cancelled by the Commissioner; or
(ii)
the end date stated in the notice of entitlement.
(4)
The Commissioner may choose the days on which the instalments are paid.
Compare: 2004 No 35 s KD 7(1)
Section 80KI: inserted, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
80KJ Delay in providing notice of entitlement
(1)
This section applies when the Commissioner thinks that the time taken to provide a notice of entitlement has been unduly delayed.
(2)
The Commissioner may pay the instalments of the tax credit that the Commissioner thinks should be paid, having regard to the circumstances of the case.
Compare: 2004 No 35 s KD 7(3)
Section 80KJ: inserted, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
80KK Payment by instalment of family tax credit and Best Start tax credit (without abatement)
(1)
This section applies when the Commissioner considers, on the basis of information provided under an information sharing agreement referred to in section 18E(2) by the chief executive, that a person is entitled to—
(a)
the family tax credit:
(b)
the Best Start tax credit.
(2)
In the period described in subsection (3), the Commissioner must pay to the person the following tax credits by instalment and without abatement:
(a)
the family tax credit:
(b)
the Best Start tax credit.
(3)
The period—
(a)
starts on the day following the day that the chief executive says is the last day that the person is entitled to—
(i)
a main benefit, an orphan’s benefit, or an unsupported child’s benefit; or
(ii)
a WFF tax credit paid under section 80KN; and
(b)
ends on the earlier of—
(i)
the day before the first day stated in a notice of entitlement that is provided later:
(ii)
a period of not more than 56 days, starting on the first day referred to in paragraph (a).
(4)
Subsection (5) applies when the chief executive pays the following tax credits for part of the 56-day period referred to in subsection (3)(b)(ii):
(a)
the family tax credit:
(b)
the Best Start tax credit.
(5)
The period referred to in subsection (3)(b)(ii) is reduced by the period for which the chief executive paid the family tax credit or the Best Start tax credit, as applicable.
Compare: 2004 No 35 s KD 7(2B), (2C)
Section 80KK: inserted, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 80KK heading: amended, on 1 July 2018, by section 31(1) of the Families Package (Income Tax and Benefits) Act 2017 (2017 No 51).
Section 80KK(1): amended, on 18 March 2019, by section 113 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 80KK(1): amended, on 1 July 2018, by section 31(2) of the Families Package (Income Tax and Benefits) Act 2017 (2017 No 51).
Section 80KK(1): amended, on 31 August 2017, by section 324 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section 80KK(1)(a): inserted, on 1 July 2018, by section 31(2) of the Families Package (Income Tax and Benefits) Act 2017 (2017 No 51).
Section 80KK(1)(b): inserted, on 1 July 2018, by section 31(2) of the Families Package (Income Tax and Benefits) Act 2017 (2017 No 51).
Section 80KK(2): amended, on 1 July 2018, by section 31(3) of the Families Package (Income Tax and Benefits) Act 2017 (2017 No 51).
Section 80KK(2)(a): inserted, on 1 July 2018, by section 31(3) of the Families Package (Income Tax and Benefits) Act 2017 (2017 No 51).
Section 80KK(2)(b): inserted, on 1 July 2018, by section 31(3) of the Families Package (Income Tax and Benefits) Act 2017 (2017 No 51).
Section 80KK(3)(a)(i): replaced, on 26 November 2018, by section 459 of the Social Security Act 2018 (2018 No 32).
Section 80KK(3)(a)(i): amended, on 30 March 2021, by section 142 of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
Section 80KK(3)(a)(i): amended (with effect on 20 April 2020), on 30 April 2020, by section 20 of the COVID-19 Response (Taxation and Other Regulatory Urgent Measures) Act 2020 (2020 No 10).
Section 80KK(3)(a)(ii): amended, on 1 April 2008, by section 212(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 80KK(4): amended, on 1 July 2018, by section 31(4) of the Families Package (Income Tax and Benefits) Act 2017 (2017 No 51).
Section 80KK(4)(a): inserted, on 1 July 2018, by section 31(4) of the Families Package (Income Tax and Benefits) Act 2017 (2017 No 51).
Section 80KK(4)(b): inserted, on 1 July 2018, by section 31(4) of the Families Package (Income Tax and Benefits) Act 2017 (2017 No 51).
Section 80KK(5): amended, on 1 July 2018, by section 31(5) of the Families Package (Income Tax and Benefits) Act 2017 (2017 No 51).
80KL Payment of instalments into accounts
(1)
Unless the Commissioner in a particular case otherwise determines, it is a condition of the receipt of tax credits paid by instalments by the Commissioner that—
(a)
the person, or the person and their spouse, civil union partner, or de facto partner,—
(i)
gives the Commissioner the details of an existing bank account held by the person (whether alone or jointly with their spouse, civil union partner, or de facto partner); or
(ii)
opens a bank account (if they do not have one), and gives the Commissioner details of that account; and
(b)
the existing account or, as applicable, the opened account is an account held as described in subsection (2).
(2)
The account must be held with—
(a)
a registered bank within the meaning of that term in section 2 of the Banking (Prudential Supervision) Act 1989; or
(b)
a building society, in respect of any deposits with the building society; or
(c)
the Public Service Investment Society Limited; or
(d)
a credit union within the meaning of that term in section 2 of the Friendly Societies and Credit Unions Act 1982.
(3)
The Commissioner must pay every instalment of tax credit into the account.
Compare: 2004 No 35 s KD 7(4)
Section 80KL: inserted, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 80KL(2)(a): amended, on 1 July 2022, by section 300(1) of the Reserve Bank of New Zealand Act 2021 (2021 No 31).
80KLB Recovery of excess tax credits
(1)
This section applies when—
(a)
the Commissioner pays a person a tax credit by instalment under section MF 1 of the Income Tax Act 2007 in a tax year; and
(b)
in paying a tax credit by instalment in an earlier tax year, the Commissioner or the chief executive of the administering department has overpaid the tax credit as described in section MF 6 of that Act.
(2)
The Commissioner may use the amount of an instalment payable to the person to satisfy an amount added under section MF 6(2) of that Act to the tax payable by the person for the earlier tax year.
Section 80KLB: inserted (with effect on 1 April 2008), on 6 October 2009 (applying for 2008–09 and later income years), by section 636(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 80KLB(1)(b): amended, on 1 April 2020, by section 209(1) (and see section 209(2) for application) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
80KM Summary of instalments paid
[Repealed]Section 80KM: repealed, on 23 March 2020, by section 210 of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Payments of tax credit by chief executive
Heading: inserted, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
80KN Payment of tax credit by chief executive
(1)
This section applies when—
(a)
in a tax year, the chief executive of the administering department pays to a person a main benefit; and
(b)
the chief executive is satisfied that—
(i)
the person is entitled to receive a WFF tax credit for which the amount of the family credit abatement or the Best Start credit abatement, as applicable, is zero; or
(ii)
the chief executive is authorised by an Order in Council made under section 225A to pay the person a WFF tax credit for which the family credit abatement or the Best Start credit abatement, as applicable, is more than zero.
(2)
When paying the main benefit, the chief executive must pay to the person the WFF tax credit that the chief executive considers that the person is entitled to at the time of the payment, unless the chief executive and the Commissioner agree that the Commissioner will, and the chief executive will not, pay to the person, or each person in a class of persons to which the person belongs, the WFF tax credit that they are entitled to receive.
(3)
An agreement between the chief executive and the Commissioner referred to in subsection (2) may be terminated by agreement between the chief executive and the Commissioner.
Compare: 2004 No 35 s KD 6(1)
Section 80KN: inserted, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 80KN(1)(a): amended, on 30 March 2021, by section 142 of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
Section 80KN(1)(b)(i): amended, on 1 July 2018, by section 32(1) of the Families Package (Income Tax and Benefits) Act 2017 (2017 No 51).
Section 80KN(1)(b)(i): amended, on 1 April 2008, by section 213 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 80KN(1)(b)(ii): amended, on 1 July 2018, by section 32(2) of the Families Package (Income Tax and Benefits) Act 2017 (2017 No 51).
Section 80KN(1)(b)(ii): amended, on 1 April 2008, by section 213 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 80KN(2): amended, on 30 March 2021, by section 142 of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
Section 80KN(2): amended (with effect on 1 July 2018), on 18 March 2019, by section 48(1) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 80KN(2): amended, on 1 April 2008, by section 213 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 80KN(3): inserted (with effect on 1 July 2018), on 18 March 2019, by section 48(2) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
80KO Determining WFF tax credit
In determining the amount of WFF tax credit that is payable under section 80KN, the chief executive must—
(a)
use the method set out in section MF 3 of the Income Tax Act 2007, if required to calculate the amount of the family credit abatement or Best Start credit abatement; and
(b)
take into account the rate of family tax credit and the family credit abatement given by sections MD 3 and MD 13 of that Act; and
(c)
take into account the rate of Best Start tax credit and the Best Start credit abatement given by sections MG 2 and MG 3 of that Act.
Compare: 2004 No 35 s KD 6(1A)
Section 80KO: inserted, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 80KO heading: amended, on 1 April 2008, by section 214(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 80KO: amended, on 1 April 2008, by section 214(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 80KO(a): amended, on 1 July 2018, by section 33(1) of the Families Package (Income Tax and Benefits) Act 2017 (2017 No 51).
Section 80KO(b): amended, on 1 July 2018, by section 33(2) of the Families Package (Income Tax and Benefits) Act 2017 (2017 No 51).
Section 80KO(b): amended, on 1 April 2008, by section 214(3) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 80KO(c): inserted, on 1 July 2018, by section 33(2) of the Families Package (Income Tax and Benefits) Act 2017 (2017 No 51).
80KP When entitlement to main benefit ends
(1)
This section applies for the purposes of section 80KN when—
(a)
a person’s entitlement to a main benefit ends; and
(b)
they apply to the chief executive to have the payment of their following tax credits continued:
(i)
the family tax credit:
(ii)
the Best Start tax credit.
(2)
The chief executive must continue to pay the family tax credit or the Best Start tax credit, as applicable, to the person for a period determined by the chief executive in consultation with the Commissioner. The amount is determined as if the person were still being paid a main benefit during this period.
Compare: 2004 No 35 s KD 6(1B)
Section 80KP: inserted, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 80KP heading: amended, on 30 March 2021, by section 142 of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
Section 80KP(1)(a): amended, on 30 March 2021, by section 142 of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
Section 80KP(1)(b): amended, on 1 July 2018, by section 34(1) of the Families Package (Income Tax and Benefits) Act 2017 (2017 No 51).
Section 80KP(1)(b)(i): inserted, on 1 July 2018, by section 34(1) of the Families Package (Income Tax and Benefits) Act 2017 (2017 No 51).
Section 80KP(1)(b)(ii): inserted, on 1 July 2018, by section 34(1) of the Families Package (Income Tax and Benefits) Act 2017 (2017 No 51).
Section 80KP(2): amended, on 30 March 2021, by section 142 of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
Section 80KP(2): amended, on 1 July 2018, by section 34(2) of the Families Package (Income Tax and Benefits) Act 2017 (2017 No 51).
80KQ No authority to pay WFF tax credit
(1)
This section applies when the chief executive is not satisfied that they are authorised to pay the WFF tax credit to the person under the section.
(2)
The chief executive may ask the Commissioner to accept from the person their application for a notice of entitlement.
Compare: 2004 No 35 s KD 6(1C)
Section 80KQ: inserted, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 80KQ heading: amended, on 1 April 2008, by section 216(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 80KQ(1): amended, on 1 April 2008, by section 216(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
80KR Request by chief executive to stop payment of WFF tax credit
(1)
This section applies when—
(a)
the chief executive has made a request under section 80KQ(2); but
(b)
the chief executive is satisfied that they are authorised to pay the person the WFF tax credit.
(2)
The chief executive may ask the Commissioner to stop paying the person under their notice of entitlement.
Compare: 2004 No 35 s KD 6(1D)
Section 80KR: inserted, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 80KR heading: amended, on 1 April 2008, by section 217(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 80KR(1)(b): amended, on 1 April 2008, by section 217(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
80KS Request by person to stop or re-start payment of tax credit
(1)
Subsection (2) applies, despite section 80KN or 80KP, when a person notifies the chief executive not to pay them the tax credit.
(2)
The chief executive must, as soon as practicable, stop paying the person the tax credit.
(3)
Subsection (4) applies when a person cancels their notification under subsection (1).
(4)
The chief executive must, as soon as practicable, start paying the person the tax credit again.
Compare: 2004 No 35 s KD 6(2), (3)
Section 80KS: inserted, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
80KT Details of payments of tax credits
(1)
This section applies when the chief executive pays under section 80KN a tax credit to a person.
(2)
The chief executive must, for each month in which a payment is made, provide details of the payment at a time and in a manner agreed by the chief executive and the Commissioner.
(3)
[Repealed](4)
[Repealed]Compare: 2004 No 35 s KD 6(4)
Section 80KT: inserted, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 80KT(2): amended, on 1 April 2019, by section 336(1) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 80KT(3): repealed, on 1 April 2019, by section 336(2) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 80KT(4): repealed, on 1 April 2019, by section 336(2) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
When Commissioner takes over payment of tax credit from chief executive
Heading: inserted, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
80KU Payment of tax credit taken over by Commissioner
(1)
This section applies when—
(a)
in a tax year, the chief executive stops paying a person an amount of tax credit with a main benefit; and
(b)
the person applies to the Commissioner for payment of WFF tax credit, family tax credit, minimum family tax credit, or Best Start tax credit; and
(c)
the Commissioner determines that the person is entitled to the following tax credits for the period described in subsection (3):
(i)
the tax credit under section MD 1 of the Income Tax Act 2007:
(ii)
the tax credit under section MG 1 of that Act.
(2)
For the period described in subsection (3), the Commissioner may pay to the person the arrears of the tax credits, other than the in-work tax credit and the parental tax credit.
(3)
The period—
(a)
starts on the later of—
(i)
the first day of the tax year; and
(ii)
the day following that on which the chief executive stops paying the amount to the person; and
(b)
ends on the day before the first day stated in a notice of entitlement that is later given to the person.
Compare: 2004 No 35 s KD 7(3A), (3B), (3C)
Section 80KU: inserted, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 80KU(1)(a): amended, on 30 March 2021, by section 142 of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
Section 80KU(1)(b): amended, on 1 July 2018, by section 35(1) of the Families Package (Income Tax and Benefits) Act 2017 (2017 No 51).
Section 80KU(1)(b): amended, on 1 April 2008, by section 218(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 80KU(1)(c): amended, on 1 July 2018, by section 35(2) of the Families Package (Income Tax and Benefits) Act 2017 (2017 No 51).
Section 80KU(1)(c)(i): inserted, on 1 July 2018, by section 35(2) of the Families Package (Income Tax and Benefits) Act 2017 (2017 No 51).
Section 80KU(1)(c)(ii): inserted, on 1 July 2018, by section 35(2) of the Families Package (Income Tax and Benefits) Act 2017 (2017 No 51).
Section 80KU(2): amended, on 1 April 2008, by section 218(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
80KV Statement of family scheme income
(1)
This section applies for a notice of entitlement that the Commissioner has given to a person for a tax year, unless the only tax credit the person expects to be entitled to for the tax year is the Best Start tax credit and all dependent children will be less than 1 year old on the last day of the tax year.
(2)
The person must, in the time within which the person is required to file the person’s return of income for the tax year, give the Commissioner a complete statement of the person’s family scheme income for the tax year.
(3)
The person must include in the statement described in subsection (2) the family scheme income of the person’s spouse, civil union partner, or de facto partner, as applicable, unless that other person gives a statement of their own family scheme income under subsection (4).
(4)
The person’s spouse, civil union partner, or de facto partner, as applicable, may give a separate complete statement of their own family scheme income, in the time within which the person is required to file the person’s return of income.
Section 80KV: replaced, on 24 February 2016, by section 254 of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
Section 80KV(1): amended, on 1 July 2018, by section 36 of the Families Package (Income Tax and Benefits) Act 2017 (2017 No 51).
80KW Effect of extra instalment on entitlement to tax credit
(1)
This section applies to a person who—
(a)
is entitled to a WFF tax credit or minimum family tax credit for the whole or part of a tax year; and
(b)
receives a payment under either section 80KI or 80KN of an instalment of the credit for each period of a fortnight or a week in the tax year, as applicable; and
(c)
as a consequence of the year not being divided into an exact number of fortnights or weeks,—
(i)
receives in the tax year 27 instalments corresponding to a period of a fortnight; or
(ii)
may have received in the tax year 53 instalments corresponding to a period of a week.
(2)
Subsection (3) applies—
(a)
for the purposes of section MF 6 of the Income Tax Act 2007; and
(b)
when the person has received payments for the whole of a tax year in 27 instalments as described in subsection (1)(c)(i).
(3)
The person is entitled to a tax credit for the tax year of an amount calculated using the formula—
tax credit + ((final instalment − parental tax credit) × 13 ÷ 14).
(4)
In the formula in subsection (3),—
(a)
tax credit is the amount of the tax credit for the tax year calculated for the person under—
(i)
section MD 1 of the Income Tax Act 2007, if the person is entitled to a WFF tax credit:
(ii)
section ME 1 of that Act, if the person is entitled to the minimum family tax credit:
(iii)
section MG 1 of that Act, if the person is entitled to the Best Start tax credit:
(b)
final instalment is the amount of the final instalment received by the person in the tax year:
(c)
parental tax credit is the amount of any parental tax credit that is included in the final instalment received by the person in the tax year.
(5)
Subsection (6) applies—
(a)
for the purposes of section MF 6 of the Income Tax Act 2007; and
(b)
when the person has received payments for the whole of a tax year in 53 instalments as described in subsection (1)(c)(ii).
(6)
The person is entitled to a tax credit for the tax year equal to an amount calculated using the formula—
(tax credit − parental tax credit) × 53 ÷ 52.
(7)
In the formula in subsection (6),—
(a)
tax credit is the amount of the tax credit for the tax year calculated for the person under—
(i)
section MD 1 of the Income Tax Act 2007, if the person is entitled to a WFF tax credit:
(ii)
section ME 1 of that Act, if the person is entitled to the minimum family tax credit:
(iii)
section MG 1 of that Act, if the person is entitled to the Best Start tax credit:
(b)
parental tax credit is the total amount of parental tax credit to which the person is entitled for the tax year calculated under section MD 12 of the Income Tax Act 2007.
Compare: 2004 No 35 s KD 7A
Section 80KW: inserted, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 80KW(1)(a): amended, on 1 April 2008, by section 219(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 80KW(1)(b): replaced (with effect on 1 April 2008), on 6 October 2009 (applying for 2008–09 and later income years), by section 637(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 80KW(2)(b): replaced, on 1 April 2008, by section 219(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 80KW(2)(b): amended (with effect on 1 April 2008), on 6 October 2009 (applying for 2008–09 and later income years), by section 637(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 80KW(4)(a)(i): amended, on 1 April 2008, by section 219(3) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 80KW(4)(a)(ii): amended, on 1 April 2008, by section 219(4) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 80KW(4)(a)(iii): inserted, on 1 July 2018, by section 37(1) of the Families Package (Income Tax and Benefits) Act 2017 (2017 No 51).
Section 80KW(5)(b): replaced, on 1 April 2008, by section 219(5) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 80KW(5)(b): amended (with effect on 1 April 2008), on 6 October 2009 (applying for 2008–09 and later income years), by section 637(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 80KW(6) formula: replaced (with effect on 1 April 2008), on 6 October 2009 (applying for 2008–09 and later income years), by section 637(4) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 80KW(7)(a)(i): amended, on 1 April 2008, by section 219(6) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 80KW(7)(a)(ii): amended, on 1 April 2008, by section 219(7) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 80KW(7)(a)(iii): inserted, on 1 July 2018, by section 37(2) of the Families Package (Income Tax and Benefits) Act 2017 (2017 No 51).
Section 80KW(7)(b): replaced (with effect on 1 April 2008), on 6 October 2009 (applying for 2008–09 and later income years), by section 637(5) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Part 4 Secrecy
[Repealed]Part 4 heading: repealed, on 18 March 2019, by section 49 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
81 Officers to maintain secrecy
[Repealed]Section 81: repealed, on 18 March 2019, by section 49 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
81A Disclosure of information under approved information sharing agreement
[Repealed]Section 81A: repealed, on 18 March 2019, by section 49 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
81BA Government agency communication
[Repealed]Section 81BA: repealed, on 18 March 2019, by section 49 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
81B Disclosure of information concerning tax advisor or person acting as tax agent
[Repealed]Section 81B: repealed, on 18 March 2019, by section 49 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
82 Disclosure of information for matching purposes
[Repealed]Section 82: repealed, on 18 March 2019, by section 49 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
82AA Disclosure to ensure correct information included in New Zealand Business Number Register
[Repealed]Section 82AA: repealed, on 18 March 2019, by section 49 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
82A Disclosure of information to prevent cessation of benefit payments
[Repealed]Section 82A: repealed, on 31 August 2017, by section 328 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
83 Disclosure of information for purposes of entitlement card
[Repealed]Section 83: repealed, on 31 August 2017, by section 329 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
84 Disclosure of information for WFF tax credit double payment identification
[Repealed]Section 84: repealed, on 31 August 2017, by section 330 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
85 Disclosure of address information in relation to debtors
[Repealed]Section 85: repealed, on 31 August 2017, by section 331 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
85A Disclosure of certain information in relation to fines defaulters
[Repealed]Section 85A: repealed, on 18 March 2019, by section 49 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
85B Disclosure of information for purposes of mutual assistance provision contained in social security agreement
[Repealed]Section 85B: repealed, on 18 March 2019, by section 49 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
85C Use and supply of information supplied for purposes of section 85B
[Repealed]Section 85C: repealed, on 18 March 2019, by section 49 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
85D Ministry of Education to provide information as to study status of student loan borrowers
[Repealed]Section 85D: repealed, on 1 April 2007, by section 44(4) of the Student Loan Scheme Amendment Act 2007 (2007 No 13).
85E Disclosure of information for assessment of levies
[Repealed]Section 85E: repealed, on 18 March 2019, by section 49 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
85F Disclosure of information for verification of government screen production payment entitlement
[Repealed]Section 85F: repealed, on 18 March 2019, by section 49 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
85G Disclosure of information in relation to Working for Families tax credits
[Repealed]Section 85G: repealed, on 31 August 2017, by section 332 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
85GB Government Actuary to provide information to Commissioner for purpose of administration of KiwiSaver Act 2006
[Repealed]Section 85GB: repealed, on 1 May 2011, by section 82 of the Financial Markets Authority Act 2011 (2011 No 5).
85GC Use of information supplied under section 85GB
[Repealed]Section 85GC: repealed, on 1 May 2011, by section 82 of the Financial Markets Authority Act 2011 (2011 No 5).
85H Disclosure of information for purposes of Parental Leave and Employment Protection Act 1987
[Repealed]Section 85H: repealed, on 18 March 2019, by section 49 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
85I Use of Parental Leave and Employment Protection Act 1987, Best Start tax credit, and parental tax credit information to determine entitlement
[Repealed]Section 85I: repealed, on 18 March 2019, by section 49 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
85J Disclosure of information for administration of Australian wine producer rebate
[Repealed]Section 85J: repealed, on 18 March 2019, by section 49 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
85K New Zealand Police and Ministry of Justice to provide information concerning sex offences for purposes of child support exemptions
[Repealed]Section 85K: repealed, on 18 March 2019, by section 49 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
85L Use of information supplied under section 85K
[Repealed]Section 85L: repealed, on 18 March 2019, by section 49 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
85M Disclosure of information relating to some offences to the Registrar of Companies
[Repealed]Section 85M: repealed, on 18 March 2019, by section 49 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
85N Disclosure of information to approved credit reporting agencies
[Repealed]Section 85N: repealed, on 18 March 2019, by section 49 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
86 Other persons to maintain secrecy
[Repealed]Section 86: repealed, on 18 March 2019, by section 49 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
87 Further secrecy requirements
[Repealed]Section 88: repealed, on 18 March 2019, by section 49 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
88 Secrecy obligations not to prevent disclosure in arrangements for relief from double taxation and exchange of information
[Repealed]Section 88: repealed, on 18 March 2019, by section 49 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Part 4A Disputes procedures
Part 4A: inserted, on 1 October 1996, by section 11 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
89A Purpose of this Part
(1)
The purpose of this Part is to establish procedures that will—
(a)
improve the accuracy of disputable decisions made by the Commissioner under certain of the Inland Revenue Acts; and
(b)
reduce the likelihood of disputes arising between the Commissioner and taxpayers by encouraging open and full communication—
(i)
to the Commissioner, of all information necessary for making accurate disputable decisions; and
(ii)
to the taxpayers, of the basis for disputable decisions to be made by the Commissioner; and
(c)
promote the early identification of the basis for any dispute concerning a disputable decision; and
(d)
promote the prompt and efficient resolution of any dispute concerning a disputable decision by requiring the issues and evidence to be considered by the Commissioner and a disputant before the disputant commences proceedings.
(2)
This Part does not apply with respect to any tax returns or notices of assessments that are, or become, subject to objection proceedings under Part 8.
(3)
Despite section 1(2), this Part applies to disputable decisions made by the Commissioner for tax years before the 1994–95 tax year.
Section 89A: inserted, on 1 October 1996, by section 11 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 89A(3): inserted, on 20 May 1999 (applying on and after 20 May 1999), by section 73(1) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
Section 89A(3): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
89AB Response periods
(1)
(2)
When the initiating notice is a notice of proposed adjustment, the response period is a 2-month period starting on the date of issue of the notice, unless section 89AC applies.
(3)
When the initiating notice is a notice of assessment issued by a taxpayer, the response period for a notice of proposed adjustment under section 89DA is a 4-month period starting on the date of issue of the initiating notice.
(4)
When the initiating notice is either a notice of disputable decision or a notice revoking or varying a disputable decision that is not an assessment, the response period for a notice is—
(a)
a 2-month period starting on the date of issue of the initiating notice; or
(b)
for a notice of proposed adjustment, a 4-month period starting on the date of issue of the initiating notice.
(5)
When the initiating notice is a disclosure notice, a notice issued by the Commissioner rejecting an adjustment proposed by a disputant, or a disputant’s statement of position, the response period is a 2-month period starting on the date of issue of the initiating notice, unless section 89AC applies.
(6)
[Repealed]Section 89AB: inserted (with effect on 1 April 2008), on 6 October 2009 (applying for 2008–09 and later income years), by section 642(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 89AB(2): amended, on 24 February 2016, by section 257(1) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
Section 89AB(3): replaced (with effect on 1 April 2009), on 31 March 2023, by section 187(1) (and see section 187(4) for application) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 89AB(4): replaced (with effect on 1 April 2009), on 31 March 2023, by section 187(2) (and see section 187(4) for application) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 89AB(5): amended, on 24 February 2016, by section 257(2) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
Section 89AB(6): repealed (with effect on 1 April 2009), on 31 March 2023, by section 187(3) (and see section 187(4) for application) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
89AC Response period when initiating notice filed late
When the initiating notice is a notice of proposed adjustment referred to in section 89AB(2) or a statement of position referred to in section 89AB(5), and the disputant issues the initiating notice outside the applicable response period but the notice is treated as being issued within that period, the response period for the response to the initiating notice is a 2–month period beginning on the earlier of—
(a)
the day on which the Commissioner issues a notice in favour of the disputant in accordance with section 89K(1):
(b)
the day on which a challenge to the Commissioner’s refusal under section 89K(4) is finally judged successful by the Taxation Review Authority or by a court, or the day on which the Commissioner concedes.
Section 89AC: inserted, on 24 February 2016, by section 258 of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
Notices of proposed adjustment
Heading: inserted, on 1 October 1996, by section 11 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
89B Commissioner may issue notices of proposed adjustment
(1)
The Commissioner may issue 1 or more notices of proposed adjustment in respect of a tax return or an assessment.
(2)
The Commissioner may issue one notice of proposed adjustment in relation to more than 1 return period, if, in the Commissioner’s opinion,—
(a)
the adjustments proposed to each tax return or assessment for the return periods relate exclusively to the same issues or arrangements; or
(b)
the adjustments proposed to each tax return or assessment for the return periods relate substantially to the same issues, and the issue of one notice is likely to expedite the issue of the assessments for all of the returns.
(3)
The Commissioner may issue a notice of proposed adjustment in relation to more than 1 return period, more than 1 issue, and more than 1 tax type.
(4)
The Commissioner may not issue a notice of proposed adjustment—
(a)
if the proposed adjustment is already the subject of a challenge; or
(b)
after the expiry of the time bar that, under—
(i)
sections 108 and 108B; or
(ii)
sections 108A and 108B; or
(iii)
sections 108AB and 108B,—
applies to the assessment.
Section 89B: inserted, on 1 October 1996, by section 11 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 89B(4)(b)(ii): replaced, on 30 March 2022, by section 198 of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section 89B(4)(b)(iii): inserted, on 30 March 2022, by section 198 of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
89C Notices of proposed adjustment required to be issued by Commissioner
The Commissioner must issue a notice of proposed adjustment before the Commissioner makes an assessment, unless—
(a)
the assessment corresponds with a tax return that has been provided by the taxpayer; or
(b)
the taxpayer has provided a tax return which, in the Commissioner’s opinion, appears to contain a simple or obvious mistake or oversight, and the assessment merely corrects the mistake or oversight; or
(c)
the assessment corrects a tax position previously taken by the taxpayer in a way or manner agreed by the Commissioner and the taxpayer; or
(d)
the assessment reflects an agreement reached between the Commissioner and the taxpayer; or
(db)
the assessment is made in relation to a matter for which the material facts and relevant law are identical to those for an assessment of the taxpayer for another period that is at the time the subject of court proceedings; or
(e)
the Commissioner has reasonable grounds to believe a notice may cause the taxpayer or an associated person—
(i)
to leave New Zealand; or
(ii)
to take steps, in relation to the existence or location of the taxpayer’s assets, making it harder for the Commissioner to collect the tax from the taxpayer; or
(eb)
the Commissioner has reasonable grounds to believe that the taxpayer has been involved in fraudulent activity; or
(f)
the assessment corrects a tax position previously taken by a taxpayer that, in the opinion of the Commissioner is, or is the result of, a vexatious or frivolous act of, or vexatious or frivolous failure to act by, the taxpayer; or
(g)
the assessment is made as a result of a direction or determination of a court or the Taxation Review Authority; or
(h)
the taxpayer has not provided a tax return when and as required by a tax law; or
(i)
the assessment is made following the failure by a taxpayer to withhold or deduct an amount required to be withheld or deducted by a tax law or to account for an amount withheld or deducted in the manner required by a tax law; or
(j)
the taxpayer is entitled to issue a notice of proposed adjustment in respect of a tax return provided by the taxpayer, and has done so; or
(k)
the assessment corrects a tax position taken by the taxpayer or an associated person as a consequence or result of an incorrect tax position taken by another taxpayer, and, at the time the Commissioner makes the assessment, the Commissioner has made, or is able to make, an assessment for that other taxpayer for the correct amount of tax payable by that other taxpayer; or
(ka)
the assessment corrects a tax position taken by the taxpayer in relation to a tax position taken by a look-through company in a return of income under section 42B, and the Commissioner and the company have completed the disputes process for that return of income and that tax position; or
(kb)
the taxpayer, who is a qualifying individual, has provided information to the Commissioner under section 22F or 22G and the assessment is made following the subsequent failure by the taxpayer to respond within 2 months to a request by the Commissioner for additional information; or
(l)
the assessment results from an amendment made under section 22G(6); or
(lbaa)
the Commissioner is making an amendment before finalising the account of a qualifying individual under section 22H; or
(lba)
(lbab)
[Repealed](lb)
the assessment extinguishes all or part of a taxpayer’s tax loss in accordance with section 177C(5); or
(lbb)
the assessment extinguishes all or part of a taxpayer’s excess amount under section EL 4 of the Income Tax Act 2007 in accordance with section 177C(5BA); or
(m)
the assessment includes a calculation by the Commissioner of a tax credit under the family scheme.
Section 89C: inserted, on 1 October 1996, by section 11 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 89C: amended, on 24 October 2001 (applying to 2002–03 and subsequent income years), by section 202(1) of the Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 (2001 No 85).
Section 89C(db): inserted, on 21 December 2004 (applying to assessments for which notices are issued on or after 1 April 2005), by section 95(1) of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).
Section 89C(db): amended, on 3 April 2006, by section 232 of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).
Section 89C(eb): inserted, on 21 December 2004 (applying to assessments for which notices are issued on or after 1 April 2005), by section 95(2) of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).
Section 89C(eb): amended, on 18 December 2006, by section 190 of the Taxation (Savings Investment and Miscellaneous Provisions) Act 2006 (2006 No 81).
Section 89C(g): amended, on 24 October 2001 (applying to 2002–03 and subsequent income years), by section 202(2) of the Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 (2001 No 85).
Section 89C(i): replaced, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 89C(k): amended, on 24 October 2001 (applying to 2002–03 and subsequent income years), by section 202(3)(a) of the Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 (2001 No 85).
Section 89C(k): amended, on 24 October 2001 (applying to 2002–03 and subsequent income years), by section 202(3)(b) of the Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 (2001 No 85).
Section 89C(k): amended, on 7 October 1998 (applying to assessments made or deemed to be made on or after 1 April 1999), by section 25(1) of the Taxation (Simplification and Other Remedial Matters) Act 1998 (1998 No 101).
Section 89C(ka): inserted, on 1 April 2011, by section 152 of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
Section 89C(kb): inserted, on 30 March 2025, by section 176(1) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
Section 89C(l): replaced, on 1 April 2019, by section 51 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 89C(lbaa): inserted (with effect on 1 April 2019), on 23 March 2020, by section 211 of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 89C(lba): replaced, on 29 March 2024, by section 143(1) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
Section 89C(lba): amended, on 1 January 2025, by section 143(2) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
Section 89C(lbab): repealed, on 29 March 2024, by section 143(1) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
Section 89C(lb): inserted, on 29 August 2011, by section 166 of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section 89C(lbb): inserted, on 1 April 2023, by section 188(2) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 89C(m): inserted, on 24 October 2001 (applying to 2002–03 and subsequent income years), by section 202(4) of the Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 (2001 No 85).
Section 89C(m): amended, on 1 July 2018, by section 39 of the Families Package (Income Tax and Benefits) Act 2017 (2017 No 51).
Section 89C(m): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
89D Taxpayers and others with standing may issue notices of proposed adjustment
(1)
If the Commissioner—
(a)
issues a notice of assessment to a taxpayer; and
(b)
has not previously issued a notice of proposed adjustment to the taxpayer in respect of the assessment, whether or not in breach of section 89C,—
the taxpayer may, subject to subsections (1B) and (2), issue a notice of proposed adjustment in respect of the assessment except to the extent to which the assessment takes into account amounts arising under subpart HB of the Income Tax Act 2007.
(1B)
If the assessment by the Commissioner is an amended assessment, the taxpayer’s entitlement to dispute the assessment is limited to disputing—
(a)
a liability imposed by the assessment that was not imposed by the assessment being amended:
(b)
an increase imposed by the assessment in a liability that was imposed by the assessment being amended.
(2)
A taxpayer who has not furnished a return of income for an assessment period may dispute the assessment made by the Commissioner only by furnishing a return of income for the assessment period.
(2A)
For the purpose of subsection (2), section 33(2) does not apply.
(2B)
For a taxpayer who is an individual, when an assessment for a tax year is made as described in section 22I(3), the taxpayer may dispute the assessment only by making an adjustment to their final account for the tax year.
(2C)
A taxpayer who has not provided a GST tax return for a GST return period may not dispute the assessment made by the Commissioner other than by providing a GST return for the GST return period.
(2D)
For the purpose of subsection (2C), section 16(6) of the Goods and Services Tax Act 1985 does not apply.
(2E)
If the Commissioner makes an assessment of an amount of research and development credit, a taxpayer who has not provided a statement under section 68D or 68E in relation to an assessment period may dispute the assessment only by providing a statement for the period within the time allowed under section 68D or 68E, as applicable.
(3)
If the Commissioner—
(a)
issues a notice of disputable decision that is not a notice of assessment; and
(b)
the notice of disputable decision affects the taxpayer,—
the taxpayer, or any other person who has the standing under a tax law to do so on behalf of the taxpayer, may issue a notice of proposed adjustment in respect of the disputable decision.
(4)
[Repealed](5)
For a notice of proposed adjustment issued under this section to have effect, the notice must be issued within the applicable response period.
Section 89D: inserted, on 1 October 1996, by section 11 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 89D(1): amended, on 30 March 2021, by section 165(1) of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
Section 89D(1): amended, on 1 April 2011, by section 153 of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
Section 89D(1B): inserted, on 30 March 2021, by section 165(2) of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
Section 89D(2): replaced, on 24 October 2001 (applying to 2002–03 and subsequent income years), by section 203(1) of the Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 (2001 No 85).
Section 89D(2A): inserted, on 24 October 2001 (applying to 2002–03 and subsequent income years), by section 203(1) of the Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 (2001 No 85).
Section 89D(2B): replaced, on 1 April 2019, by section 52 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 89D(2C): inserted, on 21 December 2004 (applying for GST return periods that begin on or after 1 April 2005), by section 96(1) of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).
Section 89D(2D): inserted, on 3 April 2006, by section 233 of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).
Section 89D(2D): amended, on 31 March 2007 (applying for taxable periods ending on or after 31 March 2007), by section 191(1) of the Taxation (Savings Investment and Miscellaneous Provisions) Act 2006 (2006 No 81).
Section 89D(2E): inserted (with effect on 1 April 2008), on 6 October 2009 (applying for 2008–09 and later income years), by section 643(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 89D(4): repealed, on 21 December 2004 (applying for GST return periods that begin on or after 1 April 2005), by section 96(2) of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).
89DA Taxpayer may issue notice of proposed adjustment for taxpayer assessment
(1)
A taxpayer may issue a notice of proposed adjustment in respect of an assessment made by the taxpayer for a tax year or a GST return period except,—
(a)
to the extent to which the assessment takes into account amounts arising under subpart HB of the Income Tax Act 2007:
(ab)
to the extent to which the assessment relates to an amount of research and development tax credit and the taxpayer has not filed a research and development supplementary return in relation to the credit within the time allowed under section 33E:
(b)
if the Commissioner has previously issued a notice of proposed adjustment to the taxpayer in respect of the assessment.
(1B)
If the assessment by the taxpayer is an amended assessment, the taxpayer’s entitlement to dispute the assessment is limited to disputing—
(a)
a liability imposed by the assessment that was not imposed by the assessment being amended:
(b)
an increase imposed by the assessment in a liability that was imposed by the assessment being amended.
(2)
A notice of proposed adjustment under this section is not effective unless it is issued within the response period for the notice.
(3)
A taxpayer who makes an assessment of an amount of research and development credit but does not provide a statement under section 68D or 68E in relation to the tax year referred to in subsection (1), may dispute the assessment only by providing a statement for the tax year within the time allowed under section 68D or 68E, as applicable.
(4)
A look-through company may issue a notice of proposed adjustment in respect of a return it makes under section 42B for a tax year if the Commissioner has not previously issued a notice of proposed adjustment to the taxpayer in respect of the return. For the purposes of section 89AB(3), the return is treated as a notice of assessment.
Section 89DA: inserted, on 24 October 2001 (applying to 2002–03 and subsequent income years), by section 204(1) of the Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 (2001 No 85).
Section 89DA(1): amended, on 1 April 2011, by section 154(1) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
Section 89DA(1): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 89DA(1): amended, on 21 December 2004 (applying to notices issued in relation to GST return periods that begin on or after 1 April 2005), by section 97(1) of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).
Section 89DA(1)(a): inserted, on 1 April 2011, by section 154(1) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
Section 89DA(1)(ab): inserted, on 1 April 2019, by section 31 (and see section 3 for application) of the Taxation (Research and Development Tax Credits) Act 2019 (2019 No 15).
Section 89DA(1)(b): inserted, on 1 April 2011, by section 154(1) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
Section 89DA(1B): inserted, on 30 March 2021, by section 166 of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
Section 89DA(2): replaced, on 21 December 2004 (applying to notices issued in relation to GST return periods that begin on or after 1 April 2005), by section 97(2) of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).
Section 89DA(3): inserted (with effect on 1 April 2008), on 6 October 2009 (applying for 2008–09 and later income years), by section 644(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 89DA(4): inserted, on 1 April 2011, by section 154(2) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
89E Election of small claims jurisdiction of Taxation Review Authority
[Repealed]Section 89E: repealed, on 29 August 2011 (applying for a dispute or challenge, in relation to which there has been no election into the small claims jurisdiction of a Taxation Review Authority before 29 August 2011), by section 167(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
89F Content of notice of proposed adjustment
(1)
A notice of proposed adjustment must—
(a)
contain sufficient detail of the matters described in subsections (2) and (3) to identify the issues arising between the Commissioner and the disputant; and
(b)
be in the prescribed form.
(2)
A notice of proposed adjustment issued by the Commissioner must—
(a)
identify the adjustment or adjustments proposed to be made to the assessment; and
(b)
provide a concise statement of the key facts and the law in sufficient detail to advise the disputant of the grounds for the Commissioner’s proposed adjustment or adjustments; and
(c)
state how the law applies to the facts.
(3)
A notice of proposed adjustment issued by a disputant must—
(a)
identify the adjustment or adjustments proposed to be made to the assessment; and
(b)
provide a statement of the facts and the law in sufficient detail to advise the Commissioner of the grounds for the disputant’s proposed adjustment or adjustments; and
(c)
state how the law applies to the facts; and
(d)
include copies of the documents of which the disputant is aware at the time that the notice is issued that are significantly relevant to the issues arising between the Commissioner and the disputant.
Section 89F: replaced, on 21 December 2004 (applying to disputes that are commenced under Part 4A of the Tax Administration Act 1994 on or after 1 April 2005), by section 99(1) of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).
Section 89F(2)(b): amended, on 2 June 2016, by section 129(1) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section 89F(3)(b): amended, on 2 June 2016, by section 129(2) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
89G Issue of response notice
(1)
To reject a proposed adjustment, the recipient of the notice of proposed adjustment must, within the response period for the notice, notify the issuer that the adjustment is rejected by issuing a response notice.
(2)
A notice of response must state concisely—
(a)
the facts or legal arguments in the notice of proposed adjustment that the issuer of the notice of response considers are wrong; and
(b)
why the issuer of the notice of response considers those facts or legal arguments to be wrong; and
(c)
any facts and legal arguments relied on by the issuer of the notice of response; and
(d)
how the legal arguments apply to the facts; and
(e)
the quantitative adjustments to any figure referred to in the notice of proposed adjustment that result from the facts and legal arguments relied on by the issuer of the notice of response.
Section 89G: inserted, on 1 October 1996, by section 11 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 89G(2): replaced, on 21 December 2004 (applying to disputes that are commenced under Part 4A of the Tax Administration Act 1994 on or after 1 April 2005), by section 100(1) of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).
89H Deemed acceptance
(1)
If a disputant does not, within the response period for a notice of proposed adjustment issued by the Commissioner, reject an adjustment contained in the notice, the disputant is deemed to accept the proposed adjustment and section 89I applies.
(2)
If the Commissioner does not, within the response period for a notice of proposed adjustment issued by a disputant, reject an adjustment contained in the notice, the Commissioner is deemed to accept the proposed adjustment and section 89J applies.
(3)
Where—
(a)
a disputant does not, within the response period for replying to a notice from the Commissioner rejecting an adjustment proposed by the disputant, notify the Commissioner that they reject all or part of the Commissioner’s notice, the disputant is deemed to accept the matters specified in the Commissioner’s notice; or
(b)
the disputant notifies the Commissioner that they accept all or a part of the Commissioner’s notice,—
then, in those circumstances,—
(c)
section 89I applies as if the matters contained in the Commissioner’s notice were an adjustment or adjustments proposed by the Commissioner; and
(d)
the Commissioner’s notice is deemed, for the purposes of section 89K, to be a notice of proposed adjustment.
(4)
If the Commissioner fails to issue a challenge notice in accordance with section 89P, the Commissioner is deemed to accept an adjustment proposed by the disputant or the disputant’s statement of position, and section 89J applies.
Section 89H: inserted, on 1 October 1996, by section 11 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 89H(3)(a): amended, on 2 June 2016, by section 130(1) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section 89H(3)(b): replaced, on 2 June 2016, by section 130(2) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section 89H(4): inserted, on 29 August 2011, (applying for a dispute initiated by a taxpayer issuing a notice of proposed adjustment after 29 August 2011) by section 168(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
89I Circumstances where disputant may not challenge adjustment
(1)
A disputant may not challenge an adjustment proposed by the Commissioner if the disputant—
(a)
notifies the Commissioner that they accept the adjustment; or
(b)
is deemed to accept the adjustment, and section 89K does not apply.
(2)
The Commissioner must include or take account of each proposed adjustment that is accepted or deemed accepted by a disputant in a notice of assessment issued to the disputant.
Section 89I: inserted, on 1 October 1996, by section 11 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 89I(1)(a): replaced, on 2 June 2016, by section 131 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
89J Where Commissioner accepts adjustment proposed by disputant
(1)
If the Commissioner accepts or is deemed to accept an adjustment proposed by a disputant, and section 89L does not apply, the Commissioner must include or take account of the adjustment in—
(a)
a notice of assessment issued to the disputant; and
(b)
any further notice of assessment or further amended assessment issued to the disputant.
(2)
Despite subsection (1), the Commissioner does not have to issue a notice of assessment or an amended assessment that includes or takes into account an adjustment that the Commissioner has accepted, or is deemed to have accepted, if the Commissioner considers that the disputant in relation to the adjustment—
(a)
was fraudulent:
(b)
wilfully misled the Commissioner.
Section 89J: inserted, on 1 October 1996, by section 11 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 89J(1): replaced, on 19 December 2007, by section 226 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 89J(2): inserted, on 19 December 2007, by section 226 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 89J(2): amended, on 29 August 2011 (applying for a dispute initiated by a taxpayer issuing a notice of proposed adjustment after 29 August 2011), by section 169(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
89K Late actions deemed to occur within response period
(1)
Where—
(a)
the Commissioner—
(i)
considers that an exceptional circumstance has prevented a disputant from doing 1 or more of the actions described in subsection (1B); or
(ii)
considers that the disputant has a demonstrable intention to enter into or continue the disputes process at the time the disputant fails in doing 1 or more of the actions described in subsection (1B); and
(b)
the disputant sends to the Commissioner—
(i)
a notice—
(A)
rejecting an adjustment proposed by the Commissioner in the notice of proposed adjustment referred to in subsection (1B)(a); and
(B)
specifying the matters required by section 89G; or
(ii)
a notice of proposed adjustment—
(A)
in respect of a disputable decision referred to in subsection (1B)(b); and
(B)
specifying the matters required by section 89F; or
(iii)
a statement of position,—
as soon as reasonably practicable after becoming aware of the disputant’s failure to reject the Commissioner’s proposed adjustment or to issue a notice within the applicable response period, the Commissioner may issue a notice in favour of the disputant stating that—
(c)
the disputant’s rejection of the Commissioner’s notice of proposed adjustment; or
(d)
the disputant’s notice of proposed adjustment; or
(e)
the disputant’s statement of position:
is to be treated for all purposes under this Part as if it had been given within the applicable response period.
(1B)
For the purposes of subsection (1)(a), the actions are—
(a)
rejecting, within the applicable response period, an adjustment contained in a notice of proposed adjustment issued by the Commissioner:
(b)
issuing, within the applicable response period, a notice of proposed adjustment under section 89D or 89DA in respect of a disputable decision:
(c)
issuing, within the applicable response period, a statement of position.
(2)
Subsection (1) may apply even if the Commissioner has already issued a notice of disputable decision that includes or takes account of an adjustment that was proposed by the Commissioner; and, where subsection (1) applies, the notice of disputable decision is to be deemed not to have been issued.
(3)
For the purposes of subsection (1),—
(a)
an exceptional circumstance arises if—
(i)
an event or circumstance beyond the control of a disputant provides the disputant with a reasonable justification for not rejecting a proposed adjustment, or for not issuing a notice of proposed adjustment or statement of position, within the response period for the notice:
(ii)
a disputant is late in issuing a notice of proposed adjustment, notice of response or statement of position but the Commissioner considers that the lateness is minimal, or results from 1 or more statutory holidays falling in the response period:
(b)
an act or omission of an agent of a disputant is not an exceptional circumstance unless—
(i)
it was caused by an event or circumstance beyond the control of the agent that could not have been anticipated, and its effect could not have been avoided by compliance with accepted standards of business organisation and professional conduct; or
(ii)
the agent is late in issuing a notice of proposed adjustment, notice of response or statement of position but the Commissioner considers that the lateness is minimal, or results from 1 or more statutory holidays falling in the response period.
(4)
If the Commissioner decides to not issue a notice in favour of the disputant under subsection (1), the Commissioner must issue a notice of that decision (the refusal notice) within 1 month of the disputant sending the relevant notice or statement under subsection (1)(b).
(5)
If the Commissioner fails to issue a refusal notice in accordance with subsection (4), then, for the purposes of subsection (6), the Commissioner is treated as issuing such a notice on the day that is 1 month after the disputant sends the relevant notice or statement under subsection (1)(b).
(6)
The disputant may challenge the Commissioner’s refusal notice by filing proceedings, in accordance with the Taxation Review Authorities Regulations 1998, within 2 months of the notice’s issue. For the purposes of this subsection, the Taxation Review Authorities Act 1994, and the Taxation Review Authorities Regulations 1998, the refusal notice is treated as a notice of disputable decision and the challenge is treated as a challenge under Part 8A.
Section 89K: inserted, on 1 October 1996, by section 11 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 89K(1)(a): replaced, on 29 August 2011, by section 170(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section 89K(1)(b)(i)(A): amended, on 29 August 2011, by section 170(2) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section 89K(1)(b)(ii): amended, on 21 December 2004 (applying to disputes that are commenced under Part 4A of the Tax Administration Act 1994 on or after 1 April 2005), by section 101(5) of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).
Section 89K(1)(b)(ii)(A): amended, on 29 August 2011, by section 170(3) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section 89K(1)(b)(ii)(A): amended, on 21 December 2004 (applying to disputes that are commenced under Part 4A of the Tax Administration Act 1994 on or after 1 April 2005), by section 101(4) of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).
Section 89K(1)(b)(ii)(B): amended, on 21 December 2004 (applying to disputes that are commenced under Part 4A of the Tax Administration Act 1994 on or after 1 April 2005), by section 101(5) of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).
Section 89K(1)(b)(iii): inserted, on 21 December 2004 (applying to disputes that are commenced under Part 4A of the Tax Administration Act 1994 on or after 1 April 2005), by section 101(5) of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).
Section 89K(1)(d): amended, on 21 December 2004 (applying to disputes that are commenced under Part 4A of the Tax Administration Act 1994 on or after 1 April 2005), by section 101(6) of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).
Section 89K(1)(e): inserted, on 21 December 2004 (applying to disputes that are commenced under Part 4A of the Tax Administration Act 1994 on or after 1 April 2005), by section 101(6) of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).
Section 89K(1B): inserted, on 29 August 2011, by section 170(4) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section 89K(3)(a): replaced, on 21 December 2004 (applying to disputes that are commenced under Part 4A of the Tax Administration Act 1994 on or after 1 April 2005), by section 101(7) of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).
Section 89K(3)(b): replaced, on 21 December 2004 (applying to disputes that are commenced under Part 4A of the Tax Administration Act 1994 on or after 1 April 2005), by section 101(7) of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).
Section 89K(4): inserted, on 29 August 2011, by section 170(5) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section 89K(5): inserted, on 29 August 2011, by section 170(5) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section 89K(6): inserted, on 29 August 2011, by section 170(5) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
89L Application to High Court
(1)
The Commissioner may apply to the High Court for an order allowing the Commissioner to issue a notice rejecting an adjustment proposed by a taxpayer that the Commissioner has accepted, or is deemed to have accepted, if—
(a)
the Commissioner considers that an exceptional circumstance applies or has prevented the Commissioner from rejecting the adjustment within the response period; and
(b)
the Commissioner applies—
(i)
before the Commissioner issues a notice of assessment including the adjustment; or
(ii)
relying on section 108(2), 108AB(2), or 108A(3).
(1B)
The Commissioner may apply to the High Court for an order allowing the Commissioner to issue a challenge notice past the 4 years provided in section 89P(1) if—
(a)
the Commissioner considers that an exceptional circumstance applies or has prevented the Commissioner from issuing the challenge notice within the 4 years; and
(b)
the Commissioner applies within the 4 years.
(2)
The High Court may—
(a)
make an order for the purposes of subsection (1) on such terms as the court deems fit; or
(b)
decline to make an order.
(2B)
The High Court may—
(a)
make an order for the purposes of subsection (1B) on such terms as the court deems fit; or
(b)
decline to make an order.
(3)
For the purposes of subsection (1) or (1B), an exceptional circumstance—
(a)
is an event or circumstance beyond the control of the Commissioner or an officer of the department that provides the Commissioner with a reasonable justification for not rejecting an adjustment proposed by a disputant within the response period.
(b)
[Repealed]Section 89L: inserted, on 1 October 1996, by section 11 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 89L(1)(b)(ii): amended, on 30 March 2022, by section 199 of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section 89L(1B): inserted, on 29 August 2011 (applying for a dispute initiated by a taxpayer issuing a notice of proposed adjustment after 29 August 2011), by section 171(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section 89L(2B): inserted, on 29 August 2011 (applying for a dispute initiated by a taxpayer issuing a notice of proposed adjustment after 29 August 2011), by section 171(2) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section 89L(3): amended, on 29 August 2011 (applying for a dispute initiated by a taxpayer issuing a notice of proposed adjustment after 29 August 2011), by section 171(3) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section 89L(3)(b): repealed, on 29 August 2011, by section 171(4) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Disclosure notices
Heading: inserted, on 1 October 1996, by section 11 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
89M Disclosure notices
(1)
Unless subsection (2) applies, and subject to section 89N, the Commissioner must issue a disclosure notice in respect of a notice of proposed adjustment to a disputant at the time or after the Commissioner or the taxpayer, as the case may be, issues the notice of proposed adjustment.
(2)
The Commissioner may not issue a disclosure notice in respect of a notice of proposed adjustment if the Commissioner has already issued a notice of disputable decision that includes, or takes account of, the adjustment proposed in the notice of proposed adjustment.
(3)
Unless the disputant has issued a notice of proposed adjustment, the Commissioner must, when issuing a disclosure notice,—
(a)
provide the disputant with the Commissioner’s statement of position; and
(b)
include in the disclosure notice—
(i)
a reference to section 138G; and
(ii)
a statement as to the effect of the evidence exclusion rule.
(4)
The Commissioner’s statement of position in the prescribed form must, with sufficient detail to fairly advise the disputant,—
(a)
give an outline of the facts on which the Commissioner intends to rely; and
(b)
give an outline of the evidence on which the Commissioner intends to rely; and
(c)
give an outline of the issues that the Commissioner considers will arise; and
(d)
specify the propositions of law on which the Commissioner intends to rely.
(5)
If the Commissioner issues a disclosure notice to a disputant, the disputant must issue the Commissioner with the disputant’s statement of position within the response period for the disclosure notice.
(6)
A disputant’s statement of position in the prescribed form must, with sufficient detail to fairly advise the Commissioner,—
(a)
give an outline of the facts on which the disputant intends to rely; and
(b)
give an outline of the evidence on which the disputant intends to rely; and
(c)
give an outline of the issues that the disputant considers will arise; and
(d)
specify the propositions of law on which the disputant intends to rely.
(6BA)
The Commissioner must issue a statement of position, described in subsection (4), in response to the disputant’s statement of position, unless—
(a)
the Commissioner issued a statement of position when issuing a disclosure notice:
(b)
on or before the date on which the Commissioner is required to issue the statement of position—
(i)
section 89N(1)(c)(viii) applies:
(ii)
any of section 89N(1)(c)(i) to (vi) and (ix) apply.
(6BAB)
If the Commissioner does not respond to the disputant’s statement of position as required by subsection (6BA) within the response period, the Commissioner is treated as having accepted the disputant’s statement of position.
(6B)
In subsections (4)(b) and (6)(b), evidence refers to the available documentary evidence on which the person intends to rely, but does not include a list of potential witnesses, whether or not identified by name.
(7)
A disputant who does not issue a statement of position in the prescribed form within the response period for the statement of position, is treated as follows:
(a)
if the Commissioner has proposed the adjustment to the assessment, the disputant is treated as having accepted the Commissioner’s notice of proposed adjustment or statement of position:
(b)
if the disputant has proposed the adjustment to the assessment, the disputant is treated as not having issued a notice of proposed adjustment.
(8)
The Commissioner—
(a)
may, within the response period for a disputant’s statement of position, provide the disputant with additional information in response to the disputant’s statement of position; and
(b)
must provide the additional information as far as possible in the manner required by subsection (4).
(9)
The additional information provided by the Commissioner under subsection (8) is deemed to form part of the Commissioner’s statement of position.
(10)
The Commissioner may apply to the High Court for more time to reply to a disputant’s statement of position if—
(a)
the Commissioner applies before the expiry of the response period for the disputant’s statement of position; and
(b)
the Commissioner considers it is unreasonable to reply to the disputant’s statement of position within the response period, because of the number or complexity or novelty of matters raised in the disputant’s statement of position.
(11)
The disputant may apply to the High Court for more time within which to reply to the Commissioner’s statement of position if—
(a)
the disputant applies before the expiry of the response period for the Commissioner’s statement of position; and
(b)
the disputant considers it unreasonable to reply to the Commissioner’s statement of position within the response period, because the issues in dispute had not previously been discussed between the Commissioner and the disputant.
(12)
The High Court shall, in considering an application under subsection (11), have regard to the provisions of section 89A and the conduct of the parties to the dispute.
(13)
The Commissioner and a disputant may agree to additional information being added, at any time, to either of their statements of position.
(14)
The additional information provided by the Commissioner or a disputant under subsection (13) is deemed to form part of the provider’s statement of position.
Section 89M: inserted, on 1 October 1996, by section 11 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 89M(1): amended, on 21 December 2004 (applying to disputes that are commenced under Part 4A of the Tax Administration Act 1994 on or after 1 April 2005), by section 102(1) of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).
Section 89M(4): amended, on 2 June 2016, by section 132(1) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section 89M(6): amended, on 2 June 2016, by section 132(2) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section 89M(6BA): replaced, on 24 February 2016, by section 259 of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
Section 89M(6BAB): inserted, on 30 March 2025, by section 177 of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
Section 89M(6B): inserted, on 21 December 2004 (applying to disputes that are commenced under Part 4A of the Tax Administration Act 1994 on or after 1 April 2005), by section 102(2) of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).
Section 89M(7): replaced, on 21 December 2004 (applying to disputes that are commenced under Part 4A of the Tax Administration Act 1994 on or after 1 April 2005), by section 102(3) of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).
89N Completing the disputes process
(1)
This section applies if—
(a)
a notice of proposed adjustment has been issued; and
(b)
the dispute has not been resolved by agreement between the Commissioner and the disputant; and
(c)
none of the following applies:
(i)
the Commissioner notifies the disputant that, in the Commissioner’s opinion, the disputant in the course of the dispute has committed an offence under an Inland Revenue Act that has had an effect of delaying the completion of the disputes process:
(ii)
the Commissioner has reasonable grounds to believe that the disputant may take steps in relation to the existence or location of the disputant’s assets to avoid or delay the collection of tax from the disputant:
(iii)
the Commissioner has reasonable grounds to believe that a person who is an associated person of the disputant may take steps in relation to the existence or location of the disputant’s assets to avoid or delay the collection of tax from the disputant:
(iv)
the disputant has begun judicial review proceedings in relation to the dispute:
(v)
a person who is an associated person of the disputant and is involved in another dispute with the Commissioner involving similar issues has begun judicial review proceedings in relation to the other dispute:
(vi)
during the disputes process, the disputant receives from the Commissioner a requirement under a statute to produce information relating to the dispute and fails to comply with the requirement within a period that is specified in the requirement:
(vii)
[Repealed](viii)
the disputant and the Commissioner agree, recording their agreement in a document, that they have reached a position in which the dispute would be resolved more efficiently by being submitted to the court or Taxation Review Authority without completion of the disputes process:
(ix)
the disputant and the Commissioner agree, recording their agreement in a document, to suspend the disputes process pending a decision in a test case referred to in section 89O.
(2)
If this section applies, the Commissioner may not amend an assessment under section 113 before one of the following occurs:
(a)
the Commissioner or the disputant accepts a notice of proposed adjustment, notice of response, or statement of position issued by the other:
(b)
the Commissioner considers a statement of position issued by the disputant.
(3)
Despite subsection (2), the Commissioner may apply to the High Court for an order that allows more time for the completion of the disputes process, or for an order that completion of the disputes process is not required.
(4)
The Commissioner must make an application under subsection (3) within the period of time during which the Commissioner would otherwise be required, under the Inland Revenue Acts, to make an amended assessment.
(5)
If the Commissioner makes an application under subsection (3), the Commissioner must make an amended assessment by the last day of the period that—
(a)
begins on the day following the day by which the Commissioner, in the absence of the suspension, would be required under the Inland Revenue Acts to make the amended assessment; and
(b)
contains the total of—
(i)
the number of days between the date on which the Commissioner files the application in the High Court and the earliest date on which the application is decided by the High Court or the application or dispute is resolved:
(ii)
the number of days allowed by an order of a court as a result of the application.
Section 89N: inserted, on 21 December 2004 (applying to disputes that are commenced under Part 4A of the Tax Administration Act 1994 on or after 1 April 2005), by section 103(1) of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).
Section 89N(1)(c)(iii): replaced, on 1 April 2010, by section 645(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 89N(1)(c)(v): replaced, on 1 April 2010, by section 645(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 89N(1)(c)(vi): amended, on 3 April 2006, by section 235(1)(a) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).
Section 89N(1)(c)(vi): amended, on 3 April 2006, by section 235(1)(b) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).
Section 89N(1)(c)(vii): repealed, on 29 August 2011 (applying for a dispute or challenge, in relation to which there has been no election into the small claims jurisdiction of a Taxation Review Authority before 29 August 2011), by section 173(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section 89N(1)(c)(viii): amended, on 2 June 2016, by section 133(1) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section 89N(1)(c)(ix): replaced, on 18 March 2019, by section 53 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 89N(5): replaced, on 3 April 2006, by section 235(2) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).
89O Test cases
(1)
This section applies if—
(a)
a dispute between a disputant and the Commissioner has been identified; and
(b)
the Commissioner has designated a separate challenge as a test case.
(2)
The disputant and the Commissioner may agree, recording their agreement in a document, to suspend the proceedings in the dispute because there is significant similarity between the facts and questions of law in the dispute and the facts and questions of law in the challenge that has been designated as a test case.
(3)
A suspension that is agreed under subsection (2) starts on the date of the agreement and ends on the earliest of—
(a)
the date of the court’s decision in the test case:
(b)
the date on which the test case is otherwise resolved:
(c)
the date on which the dispute is otherwise resolved.
(4)
The Commissioner may make an assessment or perform an action in relation to a suspended dispute that is consistent with the resolution of the test case.
(5)
The Commissioner must make an amended assessment, or perform an action, that is the subject of a suspended dispute by the later of the following:
(a)
the day that is 60 days after the last day of the suspension:
(b)
the last day of the period that—
(i)
begins on the day following the day by which the Commissioner, in the absence of the suspension, would be required under the Inland Revenue Acts to make the amended assessment, or perform the action; and
(ii)
contains the same number of days as does the period of the suspension.
Section 89O: inserted, on 21 December 2004 (applying to disputes that are commenced under Part 4A of the Tax Administration Act 1994 on or after 1 April 2005), by section 103(1) of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).
Section 89O(2): amended, on 2 June 2016, by section 134 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section 89O(5): replaced, on 3 April 2006, by section 236 of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).
89P Challenge notice for taxpayer-initiated disputes
(1)
The Commissioner must issue a challenge notice to a disputant within 4 years of the disputant issuing a notice of proposed adjustment, unless—
(a)
section 89L(2B)(a) applies:
(b)
section 89J(2) applies.
(2)
Despite subsection (1), the Commissioner is not required to issue a challenge notice—
(a)
to the extent to which the dispute has ended:
(b)
when—
(i)
the Commissioner has issued an amended assessment that reflects some but not all of the adjustments proposed by the disputant; and
(ii)
the disputant has a right of challenge under section 138B(2).
(3)
A challenge notice may not be issued before the Commissioner issues a statement of position, unless 1 or more of section 89N(1)(c)(i) to (ix) apply.
(4)
A challenge notice must state that—
(a)
the Commissioner will not be issuing an amended assessment that includes or takes into account the adjustment proposed by the disputant; and
(b)
a challenge may proceed.
Section 89P: inserted, on 29 August 2011 (applying for a dispute initiated by a taxpayer issuing a notice of proposed adjustment after 29 August 2011), by section 174(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section 89P(2): replaced, on 30 March 2022, by section 200 of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Part 5 Determinations
90 Determinations in relation to financial arrangements
(1)
For the purposes of the old financial arrangements rules, the Commissioner may determine the following matters:
(a)
how the yield to maturity method is to be applied to any financial arrangement or class of financial arrangement for the purposes of section EZ 35(2) (except the proviso) of the Income Tax Act 2007:
(b)
how the straight-line method is to be applied to any financial arrangement or class of financial arrangement for the purposes of section EZ 35(3) of that Act:
(c)
the method for determining income deemed to be derived or expenditure deemed to be incurred in relation to any financial arrangement or class of financial arrangement for the purposes of section EZ 35(6) (except the proviso) of that Act that results in the allocation to each income year of an amount that has regard to the tenor of section EZ 35(2) of that Act:
(d)
the method or methods that may be applied in determining income deemed to be derived or expenditure deemed to be incurred in relation to any financial arrangement or arrangements, or class or classes of financial arrangements, for the purposes of the provisos to subsections (2) and (6)(a) of section EZ 35 of that Act (which financial arrangements may be specified or differentiated by the Commissioner by reference to the type of financial arrangement, any characteristics of such arrangements, the purpose or purposes for which any such arrangement was originally acquired or issued, or otherwise):
(e)
the market, the method or methods, and the source of information used to determine market values that may be used for the purposes of section EZ 35(7) of that Act:
(f)
whether or not, and in what circumstances, a method or methods may qualify for allowance by the Commissioner under section EZ 35(8) of that Act, and the circumstances or conditions under which a change in any such method may qualify for approval by the Commissioner:
(g)
where an excepted financial arrangement is part of a financial arrangement, the method for determining the part of—
(i)
the income, gain or loss, or expenditure:
(ii)
the acquisition price:
(iii)
the consideration receivable by the holder or payable by the issuer,—
that is attributable to the excepted financial arrangement:
(h)
the method for determining the discounted value of amounts payable for—
(i)
goods or services under trade credits; or
(ii)
property that is acquired or sold under agreements for the sale and purchase of property or specified options:
(i)
the method for determining the discounted value of hire purchase payments payable under any hire purchase agreement:
(j)
the method for determining under sections FM 18 to FM 20 of that Act the consideration to be taken into account under section EZ 38 of that Act in the case of a disposition of a financial arrangement between members of the same consolidated group of companies:
(k)
[Repealed]and the class of persons by whom such determination may be applied:
provided that the acceptance by the Commissioner of a method under the provisos to section EZ 35(2) or (6) of that Act shall not constitute the making of a determination.
(2)
Any determination made under any of paragraphs (a), (c), (e), (g), (h), and (j) of subsection (1) shall be binding on persons for the purposes of the old financial arrangements rules.
(3)
Any person who issues or holds, or who intends to issue or hold, a financial arrangement may apply to the Commissioner to exercise the Commissioner’s discretion to make a determination under subsection (1), and every such application shall be made in accordance with such procedure as may be prescribed by regulations made under this Act; or, if no such regulations have been made or the regulations do not provide for the eventuality that occurs, in accordance with such procedure as may be prescribed by the Commissioner.
(4)
[Repealed](5)
[Repealed](6)
The Commissioner may at any time—
(a)
make a determination that varies, cancels, restricts or extends in scope an earlier determination made under this section:
(b)
issue a notice that cancels a determination made under this section.
(6B)
A person who acquires or issues a financial arrangement before a determination or notice under subsection (6) comes into force is not required to apply the determination to the financial arrangement, or treat the notice as affecting the financial arrangement, until the date that is 4 years after the determination or notice comes into force.
(7)
If the Commissioner makes a determination or notice under subsection (1) or (6) that is not secondary legislation,—
(a)
it comes into force when it is signed by the Commissioner; and
(b)
the Commissioner must give notice of it to the person to whom it applies as soon as is convenient.
(8)
[Repealed](9)
If a person has applied a determination under subsection (1), an assessment made in respect of the person must be in accordance with the determination.
(10)
Subsection (9) does not apply if—
(a)
since the determination came into force, the legislation on which the determination was based has been repealed or amended to the detriment of the person relying on the determination; or
(b)
there was a material misrepresentation or omission in the application for the determination, whether intentional or not.
(11)
The following are secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements), unless they relate only to 1 or more named persons:
(a)
a determination under subsection (1) or (6)(a):
(b)
a notice under subsection (6)(b).
Compare: 1976 No 65 s 64E
| Legislation Act 2019 requirements for secondary legislation made under this section | ||||
| Publication | The maker must publish it within 30 days after it is made in a publication chosen by the maker and in such form as may be specified by regulations made under this Act | LA19 ss 73, 74(1)(a), Sch 1 cl 14 | ||
| Presentation | It is not required to be presented to the House of Representatives because a transitional exemption applies under Schedule 1 of the Legislation Act 2019 | LA19 s 114, Sch 1 cl 32(1)(a) | ||
| Disallowance | It may be disallowed by the House of Representatives | LA19 ss 115, 116 | ||
| This note is not part of the Act. | ||||
Section 90(1): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 90(1)(a): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 90(1)(b): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 90(1)(c): replaced, on 26 July 1996 (applying to 1997–98 and subsequent income years), by section 449 of the Taxation (Core Provisions) Act 1996 (1996 No 67).
Section 90(1)(c): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 90(1)(c): amended (with effect on 1 April 2005), on 3 April 2006 (applying for income years corresponding to 2005–06 and subsequent tax years), by section 237(1) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).
Section 90(1)(c): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 90(1)(d): replaced, on 26 July 1996 (applying to 1997–98 and subsequent income years), by section 449 of the Taxation (Core Provisions) Act 1996 (1996 No 67).
Section 90(1)(d): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 90(1)(d): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 90(1)(d): amended, on 10 October 2000 (applying on and after 20 May 1999), by section 68(2) of the Taxation (GST and Miscellaneous Provisions) Act 2000 (2000 No 39).
Section 90(1)(e): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 90(1)(f): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 90(1)(g): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 90(1)(j): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 90(1)(j): amended, on 12 December 1995, by section 6(1) of the Tax Administration Amendment Act (No 3) 1995 (1995 No 77).
Section 90(1)(k): repealed, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 90(1) proviso: amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 90(2): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 90(4): repealed, on 1 October 1996, by section 12 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 90(5): repealed, on 1 October 1996, by section 12 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 90(6): replaced, on 21 December 2004, by section 104(1) of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).
Section 90(6B): inserted, on 21 December 2004, by section 104(1) of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).
Section 90(6B): amended, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
Section 90(7): replaced, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
Section 90(8): repealed, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
Section 90(9): replaced, on 24 October 2001 (applying to 2002–03 and subsequent income years), by section 205(1) of the Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 (2001 No 85).
Section 90(10): inserted, on 24 October 2001 (applying to 2002–03 and subsequent income years), by section 205(1) of the Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 (2001 No 85).
Section 90(10)(a): amended, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
Section 90(11): inserted, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
90AA Application of determinations made under section 90
(1)
A determination made under section 90 applies, in principle, to a financial arrangement to which subpart EW of the Income Tax Act 2007 applies until a new determination that is relevant to the financial arrangement is made by the Commissioner under section 90AC.
(2)
Once a determination is made under section 90AC, a person must apply that determination to a financial arrangement to which subpart EW of the Income Tax Act 2007 applies, and must not apply the determination made under section 90.
Section 90AA: inserted, on 20 May 1999 (applying on and after 20 May 1999), by section 74(1) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
Section 90AA(1): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 90AA(1): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 90AA(2): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 90AA(2): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
90AB Application for determination
(1)
A person who becomes, or who intends to become, a party to a financial arrangement may apply to the Commissioner for a determination to be made under section 90AC(1).
(2)
Unless subsection (3) applies, an application must be made in accordance with regulations made under this Act.
(3)
If no regulations have been made under this Act or if regulations made do not provide for the eventuality that occurs, an application must be made in accordance with a procedure that the Commissioner prescribes.
Section 90AB: inserted, on 20 May 1999 (applying on and after 20 May 1999), by section 74(1) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
90AC Determinations relating to financial arrangements
(1)
For the purpose of the financial arrangements rules in subpart EW of the Income Tax Act 2007, the Commissioner may determine the following:
(a)
how the yield to maturity method applies to a financial arrangement or class of financial arrangements under section EW 16 of that Act:
(b)
how the straight line method applies to a financial arrangement or class of financial arrangements under section EW 17 of that Act:
(bb)
the method that may be applied to determine the income derived or expenditure incurred for a financial arrangement or class of financial arrangements under section EW 15E(2)(d) or EW 15I(2)(c) of the Income Tax Act 2007:
(c)
the market, the method, and the source of information, that a person may use to determine market value under section EW 18 of that Act:
(d)
the method for determining the income derived or expenditure incurred for a financial arrangement or class of financial arrangements under section EW 20 of that Act:
(e)
the alternative method that may be applied to determine the income derived or expenditure incurred for a financial arrangement or class of financial arrangements under either section EW 16(2) or EW 20(2) of that Act:
(f)
whether a method meets the requirements of section EW 23(2) of that Act and may be treated as complying with the consistency requirement:
(g)
whether or not a method may be changed under section EW 23(3) of that Act and the circumstances or conditions under which a change in method is allowed:
(h)
if an excepted financial arrangement is part of a financial arrangement, the method for determining the portion of the income, gain, loss, expenditure, consideration paid, or consideration received that is solely attributable to the excepted financial arrangement:
(i)
the method for determining the future value, discounted value, or a combination of both the future and discounted values of amounts paid or payable on the date the first right in the contracted property is transferred or services are provided under an agreement to which either section EW 32(5) or (6) of that Act applies:
(j)
the method for determining under sections FM 18 to FM 20 of that Act the consideration to be taken into account under section EW 31 of that Act in the case of a financial arrangement that is disposed of between members of the same consolidated group of companies:
(k)
the exchange rate that a taxpayer or a class of taxpayer may use, and the circumstances in which the rate may be used under section EW 34(4) of that Act, having regard to the costs that the taxpayer or class of taxpayer would incur in using a rate available under section EW 34(4)(a) or (b) of that Act.
(2)
The Commissioner may also determine the class of persons that may apply a determination.
(3)
A determination made under any of subsection (1)(a), (1)(d), (1)(h), (1)(i), or (1)(j) is binding on persons who are subject to the financial arrangements rules.
(4)
A determination is not made when the Commissioner accepts an alternative method to the yield to maturity method under section EW 16 of the Income Tax Act 2007 or an alternative method under section EW 20 of that Act.
(5)
For the purpose of subsection (1)(e), the Commissioner may specify or differentiate financial arrangements by reference to type, characteristics, the purpose for which the arrangements were entered into, or in any other way.
(6)
The Commissioner may at any time—
(a)
make a determination that varies, cancels, restricts or extends in scope an earlier determination under this section:
(b)
issue a notice that cancels a determination made under this section:
(c)
correct a typographical or minor error without cancelling the determination and making a new determination, provided that the correction does not change the meaning of the determination.
(7)
The following are secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements), unless they relate only to 1 or more named persons:
(a)
a determination under subsection (1) or (6)(a):
(b)
a notice under subsection (6)(b).
| Legislation Act 2019 requirements for secondary legislation made under this section | ||||
| Publication | The maker must publish it not more than 30 days after the date on which it is made in a publication chosen by the maker and in such form as may be specified by regulations made under this Act | LA19 ss 73, 74(1)(a), Sch 1 cl 14 | ||
| Presentation | It is not required to be presented to the House of Representatives because a transitional exemption applies under Schedule 1 of the Legislation Act 2019 | LA19 s 114, Sch 1 cl 32(1)(a) | ||
| Disallowance | It may be disallowed by the House of Representatives | LA19 ss 115, 116 | ||
| This note is not part of the Act. | ||||
Section 90AC: inserted, on 20 May 1999 (applying on and after 20 May 1999), by section 74(1) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
Section 90AC(1): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 90AC(1): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 90AC(1)(a): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 90AC(1)(a): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 90AC(1)(b): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 90AC(1)(b): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 90AC(1)(bb): inserted (with effect on 1 April 2007), on 19 December 2007, by section 227(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 90AC(1)(bb): amended, on 1 April 2008, by section 227(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 90AC(1)(c): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 90AC(1)(c): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 90AC(1)(d): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 90AC(1)(d): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 90AC(1)(e): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 90AC(1)(e): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 90AC(1)(f): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 90AC(1)(f): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 90AC(1)(g): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 90AC(1)(g): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 90AC(1)(h): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 90AC(1)(i): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 90AC(1)(i): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 90AC(1)(j): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 90AC(1)(j): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 90AC(1)(k): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 90AC(1)(k): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 90AC(3): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 90AC(4): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 90AC(4): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 90AC(6): replaced, on 21 December 2004, by section 105 of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).
Section 90AC(6)(b): amended, on 2 June 2016, by section 135(1) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section 90AC(6)(c): inserted, on 2 June 2016, by section 135(2) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section 90AC(7): inserted, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
90AD Notification of determinations and notices
(1)
If the Commissioner makes a determination or notice under section 90AC that is not secondary legislation,—
(a)
it comes into force when it is signed by the Commissioner; and
(b)
the Commissioner must give notice of it to the person to whom it applies as soon as is convenient.
(2)
[Repealed](3)
If a person has applied a determination under section 90AC, an assessment made in respect of the person must be in accordance with the determination.
(4)
Subsection (3) does not apply if—
(a)
since the determination came into force, the legislation on which the determination was based has been repealed or amended to the detriment of the person relying on the determination; or
(b)
there was a material misrepresentation or omission in the application for the determination, whether intentional or not.
Section 90AD: inserted, on 20 May 1999 (applying on and after 20 May 1999), by section 74(1) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
Section 90AD heading: amended, on 21 December 2004, by section 106(1) of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).
Section 90AD(1): replaced, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
Section 90AD(2): repealed, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
Section 90AD(3): replaced, on 24 October 2001 (applying to 2002–03 and subsequent income years), by section 206(1) of the Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 (2001 No 85).
Section 90AD(4): inserted, on 24 October 2001 (applying to 2002–03 and subsequent income years), by section 206(1) of the Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 (2001 No 85).
Section 90AD(4)(a): amended, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
90AE Four-year period in which determination not required to be applied
A person who enters into a financial arrangement before a determination or notice under section 90AC(6) comes into force is not required to apply the determination to the financial arrangement, or treat the notice as affecting the financial arrangement, until the date that is 4 years after the determination or notice comes into force.
Section 90AE: replaced, on 21 December 2004, by section 107 of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).
Section 90AE: amended, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
90AF Imputation arrangement to obtain tax advantage
(1)
If an arrangement to obtain a tax advantage arises as described in section GB 35 of the Income Tax Act 2007, the Commissioner may make any of the following determinations:
(a)
a determination whether the arrangement results in an account advantage, a tax credit advantage, or both:
(b)
a determination whether a streaming arrangement as described in section GB 35(3) of that Act is subject to section GB 36(1) or (2) of that Act:
(c)
a determination of the amount of the imputation credit that is subject to the arrangement:
(d)
a determination of the tax year in which the arrangement commenced, being the year in which the first reasonably identifiable step in the arrangement took place.
(2)
The Commissioner must give notice of any determination under subsection (1) to the company whose account is affected by the arrangement, as soon as is convenient.
(3)
The notice may be included in—
(a)
a notice of assessment under section 111(1); or
(b)
a determination under section 104B.
(4)
Failure to comply with subsection (2) does not invalidate the determination.
Section 90AF: inserted, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 90AF(1)(c): amended, on 1 April 2017, by section 334 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
90AG Maori authority arrangements to obtain tax advantage
(1)
If an arrangement to obtain a tax advantage arises as described in section GB 42 of the Income Tax Act 2007, the Commissioner may make any of the following determinations:
(a)
a determination whether the arrangement results in an account advantage, a tax credit advantage, or both:
(b)
a determination whether a streaming arrangement as described in section GB 42(3) of that Act is subject to section GB 43(1) or (2) of that Act:
(c)
a determination of the amount of the Maori authority credit that is subject to the arrangement:
(d)
a determination of the tax year in which the arrangement commenced, being the year in which the first reasonably identifiable step in the arrangement took place.
(2)
The Commissioner must give notice of any determination under subsection (1) to the Maori authority whose account is affected by the arrangement, as soon as is convenient.
(3)
The notice may be included in—
(a)
a notice of assessment under section 111(1); or
(b)
a determination under section 104B.
(4)
Failure to comply with subsection (2) does not invalidate the determination.
Section 90AG: inserted, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
90A Determinations in relation to apportionment of interest costs
(1)
For the purpose of subpart FE of the Income Tax Act 2007, the Commissioner may determine the extent to which a financial arrangement provides funds to a party under the arrangement.
(2)
Any determination made under subsection (1) shall be binding on persons for the purposes of subpart FE of the Income Tax Act 2007.
(3)
Any taxpayer may apply to the Commissioner to exercise the Commissioner’s discretion to make a determination under subsection (1), and every such application shall be made in accordance with such procedure as may be prescribed by regulations made under this Act; or, if no such regulations have been made or the regulations do not provide for the eventuality that occurs, in accordance with such procedure as may be prescribed by the Commissioner.
(4)
[Repealed](5)
[Repealed](6)
The Commissioner may at any time—
(a)
make a determination that varies, cancels, restricts or extends in scope an earlier determination under this section:
(b)
issue a notice that cancels a determination under this section.
(6B)
A person who enters into a financial arrangement before the date of notification or publication of a determination, or notice, that is authorised by subsection (6) is not required to apply the determination to the financial arrangement, or treat the notice as affecting the financial arrangement, until the first tax year that commences after that date of notification or publication.
(7)
All determinations made by the Commissioner under subsection (1) and notices issued by the Commissioner under subsection (6)(b) shall be published within 30 days of the making of the determination or notice, in a publication chosen by the Commissioner and in such form as may be specified by regulations made under this Act.
(8)
For the purposes of this section, a determination or notice shall be deemed to be made when it is signed by the Commissioner.
(9)
If a person has applied a determination under subsection (1), an assessment made in respect of the person must be in accordance with the determination.
(10)
Subsection (9) does not apply if—
(a)
since the date of the determination, the legislation on which the determination was based has been repealed or amended to the detriment of the person relying on the determination; or
(b)
there was a material misrepresentation or omission in the application for the determination, whether intentional or not.
Section 90A: inserted, on 12 December 1995 (applying with respect to the tax on income derived in the 1996–97 income year and subsequent years), by section 2(1) of the Tax Administration Amendment Act (No 2) 1995 (1995 No 72).
Section 90A(1): replaced, on 20 May 1999 (applying on and after 20 May 1999), by section 75(1) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
Section 90A(1): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 90A(2): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 90A(4): repealed (with effect on 1 October 1996), on 23 September 1997, by section 73(1) of the Taxation (Remedial Provisions) Act 1997 (1997 No 74).
Section 90A(5): repealed (with effect on 1 October 1996), on 23 September 1997, by section 73(1) of the Taxation (Remedial Provisions) Act 1997 (1997 No 74).
Section 90A(6): replaced, on 21 December 2004, by section 108(1) of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).
Section 90A(6B): inserted, on 21 December 2004, by section 108(1) of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).
Section 90A(6B): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 90A(7): amended, on 7 September 2010, by section 141(a) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section 90A(7): amended, on 7 September 2010, by section 141(b) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section 90A(7): amended, on 21 December 2004, by section 108(2)(a) of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).
Section 90A(8): amended, on 21 December 2004, by section 108(3) of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).
Section 90A(8)(2)(b): amended, on 21 December 2004, by section 108(2)(a) of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).
Section 90A(9): replaced, on 24 October 2001 (applying to 2002–03 and subsequent income years), by section 207(1) of the Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 (2001 No 85).
Section 90A(10): inserted, on 24 October 2001 (applying to 2002–03 and subsequent income years), by section 207(1) of the Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 (2001 No 85).
91 Determinations in relation to petroleum mining operations
(1)
For the purposes of the Income Tax Act 2007, if a question arises as to—
(a)
in any case where the holder of a petroleum permit disposes of the permit, the proportion of the permit disposed of; or
(b)
in any case where a petroleum permit is disposed of together with petroleum mining assets, the consideration and the deductions to be attributed to—
(i)
the permit; and
(ii)
any asset of the kind described in section CT 7(1)(b) or (c) of the Income Tax Act 2007; or
(c)
whether, and if so when, a permit has been relinquished; or
(d)
the year or date of first commercial production for a permit area in which a petroleum miner holds an interest; or
(e)
whether any expenditure incurred before 16 December 1991 on an exploratory well contributed to defining the scope, character, or size of any deposit of petroleum; or
(f)
in the case where petroleum mining operations are carried on outside New Zealand, the foreign equivalent of—
(i)
a prospecting permit; or
(ii)
a mining permit; or
(iii)
the extension of a mining permit; or
(iv)
the relinquishment of a permit,—
that question shall be determined, for the purposes of ascertaining the income of the petroleum miner for any year,—
(g)
by agreement between the petroleum miner or petroleum miners affected and the Commissioner; or
(h)
in the absence of such agreement, by the Commissioner after consulting, if the Commissioner considers it necessary, with any organisation or person having relevant expertise or information.
(1B)
For the purposes of subsection (1)(f), the Crown Minerals Act 1991 is used to determine by analogy the equivalents in the context of the relevant foreign regime for the licensing and conduct of petroleum mining operations of—
(a)
obtaining a permit; or
(b)
determining whether or when a permit has been relinquished; or
(c)
interpreting other relevant documents or matters relating to the licensing and conduct of petroleum operations.
(2)
Where the Commissioner is satisfied that a determination made under this section should be varied or rescinded, or restricted or extended in scope, the Commissioner may make a fresh determination (whether by agreement with the petroleum miner or miners affected or by the Commissioner after such consultation, if any, as the Commissioner considers necessary) which shall be effective to vary, rescind, restrict, or extend the earlier determination.
(3)
Where the Commissioner makes a determination under subsection (1) or subsection (2),—
(a)
the determination shall be subject to such terms and conditions as are agreed or as the Commissioner may specify; and
(b)
the Commissioner shall give notice of the determination and any terms and conditions to the petroleum miner in respect of whom the determination is made within a reasonable period of time.
(4)
[Repealed](5)
[Repealed](6)
For the purpose of determining any question under subsection (1) or subsection (2), the Commissioner may consult with the appropriate government department or other body, or with any other organisation or person having relevant expertise or information, and any government department or government body so consulted shall provide such assistance or advice as the Commissioner reasonably requires.
(7)
[Repealed]Compare: 1976 No 65 s 214L
Section 91(1): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 91(1): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 91(1): amended, on 26 July 1996 (applying to 1997–98 and subsequent income years), by section 450 of the Taxation (Core Provisions) Act 1996 (1996 No 67).
Section 91(1)(b): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 91(1)(b)(ii): replaced, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 91(1)(b)(ii): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 91(1B): inserted, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 91(3)(b): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 91(4): repealed, on 1 October 1996, by section 13 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 91(5): repealed, on 1 October 1996, by section 13 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 91(7): repealed, on 1 October 1996, by section 13 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
91AA Determinations in relation to standard-cost household service
(1)
For the purpose of the Inland Revenue Acts, the Commissioner may determine that a service is a standard-cost household service if—
(a)
the activity of providing the service is carried on by taxpayers who are natural persons; and
(b)
the activity of providing the service requires the use of each taxpayer’s domestic accommodation in activities that commonly occur in a family household; and
(c)
the Commissioner considers that the determination would result in a significant reduction in compliance costs for providers of the service without inappropriate—
(i)
risk to the revenue of the Crown:
(ii)
demands on the resources of the Commissioner as a result of the administrative and enforcement duties that would be associated with the determination:
(iii)
inaccuracy, for a significant number of providers, of any determination by the Commissioner of the costs of providing the service.
(2)
For the purpose of calculating the income tax liability of natural persons who derive an amount in a tax year from a standard-cost household service, the Commissioner may determine for the income year and the standard-cost household service—
(a)
requirements for the exemption under section CW 61 of the Income Tax Act 2007 of income that a taxpayer derives from providing the standard-cost household service:
(b)
a figure for a cost or costs that for the purpose of this Act may be treated as being incurred by a taxpayer in deriving exempt income from providing the standard-cost household service:
(c)
a method that a taxpayer may use to calculate a figure for a cost or costs that for the purpose of this Act may be treated as being incurred by a taxpayer in deriving exempt income from providing the standard-cost household service:
(d)
a figure for a cost or costs that for the purpose of this Act may be treated as being incurred by a taxpayer in deriving income from providing the standard-cost household service:
(e)
a method that a taxpayer may use to calculate a figure for a cost or costs that for the purpose of this Act may be treated as being incurred by the taxpayer in deriving income from providing the standard-cost household service:
(f)
requirements for the application of a determination under paragraphs (a) to (e).
(3)
A taxpayer who in a tax year derives an amount from providing a standard-cost household service may, in calculating the taxpayer’s income tax liability for the tax year, elect to use a figure for a cost or costs or a method of calculating such a figure that the Commissioner has determined under subsection (2) to be appropriate for the taxpayer.
(4)
A taxpayer who makes an election under subsection (3) to use a figure or method must not use, in calculating the taxpayer’s income tax liability for the tax year, any figure for an additional cost of providing the standard-cost household service if the figure or method in the Commissioner’s determination relates to a type of cost that includes the additional cost.
(5)
If the Commissioner is satisfied that a determination that is made under this section should be varied or rescinded, or restricted or extended in scope, the Commissioner may make a fresh determination that varies, rescinds, restricts or extends that determination.
(6)
A determination that is made by the Commissioner under this section must be published within 30 days of the making of the determination, in a publication chosen by the Commissioner.
(7)
A determination that is made by the Commissioner under this section may apply for tax years that are specified in the determination.
Section 91AA: inserted, on 25 November 2003, by section 120 of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).
Section 91AA(2): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 91AA(2): amended (with effect on 25 November 2003), on 21 December 2004 (applying for 2003–04 and subsequent income years), by section 109(1) of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).
Section 91AA(2)(a): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 91AA(2)(d): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 91AA(2)(e): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 91AA(3): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 91AA(3): amended (with effect on 25 November 2003), on 21 December 2004 (applying for 2003–04 and subsequent income years), by section 109(3) of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).
Section 91AA(4): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 91AA(6): amended, on 7 September 2010, by section 142(a) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section 91AA(6): amended, on 7 September 2010, by section 142(b) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section 91AA(7): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
91AAB Determinations relating to types and diminishing values of listed horticultural plants
(1)
For the purpose of sections DO 5 to DO 9 of the Income Tax Act 2007, the Commissioner may determine—
(a)
that a type of horticultural plant, tree, vine, bush, cane, or other similar plant that is cultivated on land, is a type of listed horticultural plant:
(b)
the banded rate set out in Schedule 12, column 1 of that Act that is to be used to calculate the diminishing value for a type of listed horticultural plant.
(2)
In making a determination, the Commissioner must take into account the estimated useful life of the type of plant, and may also take into account—
(a)
the main purpose for which the type of plant is cultivated:
(b)
the manner in which the type of plant is cultivated and managed.
(3)
The determination may set out the income year or income years for which it is to apply, but may not apply for income years before the 2003–04 income year.
(4)
The determination may provide for the extension, limitation, variation, cancellation or revocation of an earlier determination.
(5)
(6)
Within 30 days of issuing a determination under this section, the Commissioner must publish a notice in a publication chosen by the Commissioner that—
(a)
gives notice that the determination has been issued; and
(b)
states where copies of the determination can be obtained.
Section 91AAB: inserted, on 21 December 2004 (applying for 2003–04 and subsequent income years), by section 110(1) of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).
Section 91AAB(1): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 91AAB(1)(b): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 91AAB(6): amended, on 7 September 2010, by section 143 of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
91AABB Determinations relating to monetary threshold in extended model reporting standard for digital platforms
(1)
For the purpose of section 185T, the Commissioner may determine the New Zealand dollar equivalent of the monetary threshold set out in the definition of excluded seller in section I, B(4)(d) of the extended model reporting standard for digital platforms.
(2)
The Commissioner may amend, if necessary, the New Zealand dollar equivalent of the threshold referred to in subsection (1) to account for exchange rate fluctuations to ensure its consistency with the reporting standard.
(3)
The determination may set out the year or years for which it is to apply, but it may not apply for years before the implementation of the extended model reporting standard for digital platforms under section 185T(1).
(4)
The determination may provide for the extension, limitation, variation, cancellation, or revocation of an earlier determination.
(5)
(6)
Within 30 days of having made a determination under this section, the Commissioner must publish a notice in a publication chosen by the Commissioner setting out the New Zealand dollar equivalent that is the subject of the determination, any necessary amendment caused by exchange rate fluctuations, and the periods for which the threshold is to apply.
Section 91AABB: inserted, on 1 January 2024, by section 189 of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Determinations relating to prepayments
Heading: inserted, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
91AAC Exemptions from section EA 3 of Income Tax Act 2007
(1)
For the purposes of section EA 3 of the Income Tax Act 2007, the Commissioner may determine whether and the extent to which a person is not required to comply with section EA 3 of the Act in relation to an unexpired portion of expenditure (except expenditure on employment income for services that have been performed), having regard to—
(a)
the nature and amount of the kinds of expenditure that the person regularly incurs:
(b)
the nature and size of the activity giving rise to the expenditure that the person incurs:
(c)
the costs of the person in complying with section EA 3 of the Act:
(d)
whether, for the person and the expenditure, the difference between expenditure incurred under section EA 3 of the Act and expenditure that would be allowed as a deduction if the Commissioner were to exercise the discretion under this section is not material.
(2)
The Commissioner may cancel a determination under this section at any time.
(3)
In this section, a reference to a person includes a class of persons.
Compare: 1994 No 164 s EF 1(3), (4)
Section 91AAC: inserted, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 91AAC heading: amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 91AAC(1): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Determinations relating to livestock
Heading: inserted, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
91AAD Determination on methods for calculating value of specified livestock under national standard cost scheme
(1)
This section describes the matters that a determination under section EC 24 of the Income Tax Act 2007 may provide.
(2)
The determination may provide 1 or more methods for calculating the average cost of each type, class, or age grouping of livestock that a person has on hand at the end of an income year, and for incorporating the costs for homebred livestock and purchased livestock in that average cost.
(3)
The determination may provide for the age groupings of immature and mature livestock of each type to which the average costs apply.
(4)
The determination may provide 1 or more inventory control methods under which mature livestock must be accounted for, or the setting of minimum standards for an inventory control method.
(5)
The determination may provide the way in which the determination applies when animals of the same type, class, or other category are valued both under section EC 22 of the Income Tax Act 2007 and under another valuation method. For the purposes of this section, the other valuation methods are market value, replacement price, and the high-priced livestock valuation method.
(6)
The determination may provide for conditions or limitations on the valuation of livestock under section EC 22 of the Income Tax Act 2007, including—
(a)
a restriction on valuing livestock of a particular type, class, or other category under that section if livestock of the same type, class, or category are also valued under another valuation method; and
(b)
the setting of a notice requirement for elections of valuation method for livestock affected by a restriction imposed under paragraph (a).
(7)
The determination may provide for the valuation of livestock when livestock was previously valued using another valuation method.
(8)
The determination may provide for 1 or more classes of person by whom the determination may be applied, and for the income year or years for which it is to apply.
(9)
The determination may provide for the extension, limitation, variation, or revocation of an earlier determination.
Compare: 1994 No 164 s EL 4(6)
Section 91AAD: inserted, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 91AAD(1): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 91AAD(5): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 91AAD(6): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
91AAE Publication and revocation of determinations relating to livestock
(1)
[Repealed](2)
If the Commissioner revokes a determination made under section EC 15, EC 23, or EC 24 of the Income Tax Act 2007, and substitutes a new determination, that new determination does not apply for an income year that ends on or before the day 30 days before the day on which the new determination comes into force.
Compare: 1994 No 164 ss EL 3A(2), (3), EL 4(7), (8), EL 8(2), (3)
Section 91AAE: inserted, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 91AAE(1): repealed, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
Section 91AAE(2): amended, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
Section 91AAE(2): amended, on 7 September 2010, by section 144(2) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section 91AAE(2): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Determinations relating to depreciation
Heading: inserted, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
91AAF Determination on economic rate
(1)
Having followed the procedure in section EE 27, EE 28, EE 30, or EZ 23 of the Income Tax Act 2007, the Commissioner may set in a determination—
(a)
only the diminishing value rate for the kind of item; or
(b)
both the diminishing value rate and the straight-line rate for the kind of item.
(1B)
For the purposes of subsection (1), the rate set by the Commissioner may be a default rate for kinds of items of depreciable property.
(2)
An economic rate set in a determination may be expressed to apply in any way, including—
(a)
to items of a kind, whenever they are acquired or used; or
(b)
to items of a kind, having regard to—
(i)
the date on which, or income year in which, a particular person acquired or used such an item; or
(ii)
the date on which, or income year in which, any person first acquired or used such an item; or
(iii)
whether or not such an item has been used before in New Zealand or elsewhere or has been available for use before in New Zealand or elsewhere.
This subsection is overridden by subsection (3).
(3)
A determination setting an economic rate cannot be expressed to apply to an item of depreciable property that—
(a)
is already subject to a higher economic rate under an existing determination; and
(b)
is acquired—
(i)
before the date on which the new determination is issued; or
(ii)
after the date on which the new determination is issued, under a binding contract entered into before that date.
This subsection is overridden by subsection (4).
(4)
A determination setting an economic rate can be expressed to apply to an item of depreciable property that—
(a)
is already subject to a higher economic rate under an existing determination; and
(b)
is reacquired after the date on which the new determination is issued, by the person who disposed of it before the date on which the new determination is issued.
(5)
A determination made under this section may apply to an item of depreciable property to which section EE 27, EE 28, or EE 30 of the Income Tax Act 2007 applies if the item is acquired or used by a person before the commencement of this section.
(6)
The Commissioner may revoke a determination setting an economic rate.
(7)
The following are secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements):
(a)
a determination under this section:
(b)
a revocation of a determination under this section.
Compare: 1994 No 164 s EG 4(2), (6), (7)
| Legislation Act 2019 requirements for secondary legislation made under this section | ||||
| Publication | The maker must: | LA19 ss 73, 74(1)(a), Sch 1 cl 14 | ||
| • make copies of it available | ||||
| • within 30 days of making it, publish (in a publication chosen by the maker) notice that it has been made and where it is available | ||||
| The Ministry of Foreign Affairs and Trade considers that the secondary legislation may have international transparency obligations under the CPTPP. As a result the maker may also have to comply with s 75 of the Legislation Act 2019 | LA19 ss 74(2), 75 | |||
| Presentation | It is not required to be presented to the House of Representatives because a transitional exemption applies under Schedule 1 of the Legislation Act 2019 | LA19 s 114, Sch 1 cl 32(1)(a) | ||
| Disallowance | It may be disallowed by the House of Representatives | LA19 ss 115, 116 | ||
| This note is not part of the Act. | ||||
Section 91AAF: inserted, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 91AAF(1): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 91AAF(1B): inserted (with effect on 1 April 2005), on 6 October 2009 (applying for 2005–06 and later income years), by section 646(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 91AAF(4)(b): replaced (with effect on 3 April 2006), on 6 October 2009 (applying for 2005–06 and later income years), by section 646(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 91AAF(5): inserted, on 3 April 2006 (applying for income years corresponding to 2005–06 and subsequent tax years), by section 238(3) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).
Section 91AAF(5): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 91AAF(6): inserted (with effect on 1 April 2008), on 6 October 2009 (applying for 2008–09 and later income years), by section 646(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 91AAF(6): amended, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
Section 91AAF(7): inserted, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
91AAG Determination on special rates and provisional rates
(1)
A person may apply to the Commissioner for the issue of a determination allowing them to use for an item, for a specified income year or years,—
(a)
a special rate higher or lower than the economic rate set in a determination under section 91AAF; or
(b)
a provisional rate when no applicable rate, other than a default rate, is set in a determination under section 91AAF.
(2)
When determining whether or not to grant an application for a special rate or a provisional rate, the level of any such rate, and the income year or years to which it applies, the Commissioner may have regard to any factors that are relevant in determining the item’s estimated useful life, including an estimate based on a depreciation method or on a valuer’s report, or a rate of depreciation that the person uses for the item for financial reporting purposes.
(a)
[Repealed](b)
[Repealed](3)
The Commissioner may issue a determination setting a special rate or a provisional rate using, as applicable,—
(a)
the formula in section EE 27 of the Income Tax Act 2007; or
(b)
the formula in section EE 28 of that Act; or
(c)
the formula in section EE 30 of that Act; or
(cb)
the formula in section EZ 23 of that Act; or
(d)
the straight-line method other than under paragraph (b).
(4)
The Commissioner may issue a determination setting a provisional rate after doing the following:
(a)
determining a figure using the applicable formula from subsection (3); and
(b)
rounding the figure up or down to the nearest rate specified in Schedule 11 or 12 of the Income Tax Act 2007.
(5)
A determination setting a provisional rate for an item and a person may also be expressed to apply to—
(a)
items of the same kind as the item:
(b)
any other person or class of persons.
(5B)
A determination setting a special rate for an item and a person may also be expressed to apply to items, of the same kind as the item, for which the Commissioner considers the special rate is appropriate.
(6)
A determination setting a provisional rate ceases to apply to the item and the person, or any other person, at the time at which an economic rate set under section 91AAF for that kind of item comes into force, unless the determination specifically provides that it does not cease to apply.
(7)
The Commissioner may revoke a provisional determination if it no longer applies to an item or if the item is no longer in use or available for use. The revocation takes effect on the day after the date of publication of the Gazette in which notification under section 91AAM(4) is made.
Compare: 1994 No 164 s EG 10(1)–(3), (5)
Section 91AAG: inserted, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 91AAG(1): amended, on 2 June 2016, by section 137 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section 91AAG(1)(b): replaced (with effect on 1 April 2005), on 6 October 2009 (applying for 2005–06 and later income years), by section 647(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 91AAG(2): amended, on 1 October 2005 (applying for 2005–06 and subsequent income years), by section 138(1) of the Taxation (Base Maintenance and Miscellaneous Provisions) Act 2005 (2005 No 79).
Section 91AAG(2)(a): repealed, on 1 October 2005 (applying for 2005–06 and subsequent income years), by section 138(1) of the Taxation (Base Maintenance and Miscellaneous Provisions) Act 2005 (2005 No 79).
Section 91AAG(2)(b): repealed, on 1 October 2005 (applying for 2005–06 and subsequent income years), by section 138(1) of the Taxation (Base Maintenance and Miscellaneous Provisions) Act 2005 (2005 No 79).
Section 91AAG(3): replaced, on 3 April 2006 (applying for income years corresponding to 2005–06 and subsequent tax years), by section 239(1) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).
Section 91AAG(3): amended (with effect on 1 October 2005), on 6 October 2009 (applying for 2005–06 and later income years), by section 647(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 91AAG(3)(a): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 91AAG(3)(b): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 91AAG(3)(c): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 91AAG(3)(cb): inserted (with effect on 1 April 2005), on 6 October 2009 (applying for 2005–06 and later income years), by section 647(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 91AAG(4)(a): replaced (with effect on 3 April 2006), on 6 October 2009 (applying for 2005–06 and later income years), by section 647(4) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 91AAG(4)(b): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 91AAG(5B): inserted, on 1 October 2005 (applying for 2005–06 and subsequent income years), by section 138(3) of the Taxation (Base Maintenance and Miscellaneous Provisions) Act 2005 (2005 No 79).
Section 91AAG(7): inserted (with effect on 1 April 2008), on 6 October 2009 (applying for 2008–09 and later income years), by section 647(5) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
91AAH Commissioner may decline to issue special rate or provisional rate
(1)
The Commissioner may decline to issue a determination under section 91AAG when,—
(a)
for an application for a special rate, one of the circumstances described in subsection (2) exists:
(b)
for an application for a provisional rate, one of the circumstances described in subsection (3) exists.
(2)
For the purposes of subsection (1)(a), the circumstances are as follows:
(a)
the difference between the economic rate already applicable to the item and an appropriate special rate would be less than 50% of the difference between the already applicable economic rate and the next higher or lower rate, as applicable, in—
(i)
Schedule 11 of the Income Tax Act 2007, if the item is acquired on or after 1 April 2005; or
(ii)
Schedule 12 of that Act, if the item is acquired before 1 April 2005; or
(b)
the Commissioner is reviewing the economic rate applicable to the item and intends to set a new economic rate equal to or more than an appropriate special rate within 6 months of the Commissioner receiving the person’s application for a special rate; or
(c)
the person has supplied insufficient information to enable the Commissioner to calculate an appropriate rate.
(3)
For the purposes of subsection (1)(b), the circumstances are as follows:
(a)
an economic rate, other than a default rate, already applies to the item; or
(ab)
if a default rate applies to the item, the difference between the default rate and the provisional rate would be less than 50% of the difference between the default rate and the next higher or lower rate, as applicable, in—
(i)
Schedule 11 of the Income Tax Act 2007, if the item is acquired on or after 1 April 2005; or
(ii)
Schedule 12 of that Act, if the item is acquired before 1 April 2005; or
(b)
the Commissioner is in the process of determining an economic rate applicable to the item for the income year to which the application relates and intends to set it within 6 months of the Commissioner receiving the person’s application for a provisional rate; or
(c)
the person has supplied insufficient information to enable the Commissioner to calculate an appropriate rate.
Compare: 1994 No 164 s EG 10(4)
Section 91AAH: inserted, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 91AAH(2)(a): replaced (with effect on 1 April 2008), on 7 September 2010 (applying for 2008–09 and later income years), by section 145(1) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section 91AAH(3)(a): replaced (with effect on 1 April 2008), on 6 October 2009 (applying for 2008–09 and later income years), by section 648(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 91AAH(3)(ab): replaced (with effect on 1 April 2008), on 7 September 2010 (applying for 2008–09 and later income years), by section 145(2) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
91AAI Effect on special rate of change in circumstances
(1)
This section applies when—
(a)
the Commissioner has issued a determination setting a special rate for a person’s item of depreciable property; and
(b)
the circumstances that applied at the time the determination was issued—
(i)
no longer exist; or
(ii)
have changed materially.
(2)
The Commissioner may—
(a)
revoke the determination without issuing a new determination; or
(b)
revoke the determination and issue a new determination setting a new special rate for the item.
(3)
If the Commissioner revokes the determination without issuing a new determination, the person must depreciate the item applying the economic rate or an applicable provisional rate.
(4)
A revocation takes effect—
(a)
if notice of the revocation is given to the person under section 91AAM(5), on the day after the date of the notice; or
(b)
if the notice is published in the Gazette, on the day after the date of the publication.
Compare: 1994 No 164 s EG 10(6), (7)
Section 91AAI: inserted, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
91AAJ Disputing or challenging determination
(1)
This section applies to—
(a)
a person who applied for a determination under section 91AAG; or
(b)
a person to whom a determination made under section 91AAG applies through the operation of section 91AAG(5)(b).
(3)
Part 8, except section 125, applies with any necessary modifications to the dispute or challenge in the same manner and to the same extent as if the dispute or challenge were an objection made under section 126.
Compare: 1994 No 164 s EG 10(8), (9)
Section 91AAJ: inserted, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
91AAK Notice of setting of economic rate
[Repealed]Section 91AAK: repealed, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
91AAL Determination on maximum pooling value
(1)
A person may apply to the Commissioner for the issue of a determination allowing them a maximum pooling value for an item of depreciable property greater than that currently available to them.
(2)
When determining whether or not to grant an application, the Commissioner must have regard to the following factors:
(a)
whether or not items of the kind concerned are relatively homogeneous in nature:
(b)
whether or not the person’s compliance costs are likely to be materially reduced by pooling items of the kind concerned:
(c)
the frequency with which the person acquires and disposes of items of the kind concerned.
(3)
The Commissioner may issue the determination after having regard to the factors in subsection (2).
Compare: 1994 No 164 s EG 11(6), (7)
Section 91AAL: inserted, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 91AAL(1): amended, on 2 June 2016, by section 138 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
91AAM Applications for determinations
(1)
A person making an application for a determination under section 91AAG must make it in accordance with—
(a)
the procedures, if any, prescribed by regulations made under section 225; or
(b)
the procedures prescribed by the Commissioner, if the regulations do not provide for the person’s case or if no regulations have been made.
(2)
Unless subsection (2B) applies, within 6 months of receiving an application, the Commissioner must respond to it by—
(a)
issuing the determination; or
(b)
deciding to decline to issue a determination.
(2B)
Despite subsection (2), a person making an application may agree to an extension of the 6-month time limit within which the Commissioner must respond.
(3)
Within 30 days of issuing a determination or deciding to decline to issue a determination, the Commissioner must give to the person—
(a)
notice of the decision; and
(b)
either—
(i)
a copy of the determination; or
(ii)
the reasons for declining to issue the determination.
(4)
Within 30 days of issuing a determination under section 91AAG(4) or revoking a determination under section 91AAG(7) that is expressed to apply to a class of persons, the Commissioner must publish a notice in a publication chosen by the Commissioner that—
(a)
gives notice that the determination has been issued; and
(b)
states where copies of it can be obtained.
(5)
Within 30 days of revoking a determination under section 91AAI(2), the Commissioner must give to the person who applied for the determination notice of—
(a)
the decision; and
(b)
the reasons for revoking the determination.
(6)
If a representative of a person applies for a determination, the Commissioner gives the notice referred to in subsection (3) or (5) to the representative.
Compare: 1994 No 164 ss EG 13, EG 14
Section 91AAM: inserted, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 91AAM(2): amended, on 1 October 2005 (applying for 2005–06 and subsequent income years), by section 139(1) of the Taxation (Base Maintenance and Miscellaneous Provisions) Act 2005 (2005 No 79).
Section 91AAM(2B): inserted, on 1 October 2005 (applying for 2005–06 and subsequent income years), by section 139(2) of the Taxation (Base Maintenance and Miscellaneous Provisions) Act 2005 (2005 No 79).
Section 91AAM(4): amended, on 7 September 2010, by section 147 of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section 91AAM(4): amended (with effect on 1 April 2008), on 6 October 2009 (applying for 2008–09 and later income years), by section 650(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Determinations relating to environmental restoration expenditure
Heading: inserted, on 21 June 2005, by section 140 of the Taxation (Base Maintenance and Miscellaneous Provisions) Act 2005 (2005 No 79).
91AAN Determinations on rates for diminishing value of environmental expenditure
(1)
A person or a group of persons may apply to the Commissioner to set a rate or an assumed life for the purpose of section DB 46 of the Income Tax Act 2007.
(2)
The Commissioner may determine that the person, group, or a class of persons is to use for a type of expenditure listed in Schedule 19, Part A of the Income Tax Act 2007 or, for expenditure that is part of such a type of expenditure, for the purposes of section DB 46(4)(c) of that Act,—
(a)
a diminishing value rate that is a banded rate set out in Schedule 12, column 1 of that Act:
(b)
a straight-line rate that is a banded rate set out in Schedule 12, column 2 of that Act.
(3)
The Commissioner may decline to issue a determination under subsection (1) if—
(a)
the information that is supplied to the Commissioner by the person or group is insufficient for the calculation of an appropriate rate:
(b)
the Commissioner considers that the alternative rate for the expenditure differs from the banded rate set out for the expenditure in Schedule 19 of the Income Tax Act 2007, or in an existing applicable determination, by less than half the difference between that banded rate and the banded rate that is next closest to the alternative rate.
(4)
In making a determination, the Commissioner may take into account—
(a)
the length of time for which the expenditure may reasonably be expected to be effective for the purpose for which it was incurred:
(b)
the length of time for which the expenditure may reasonably be expected to be effective for the purpose of earning income:
(c)
the treatment of the expenditure in the person’s financial reports:
(d)
the life of any resource consent that is associated with the expenditure:
(e)
an estimate based on a depreciation method or on a valuer’s report.
(5)
The determination may set out the income year or income years for which it is to apply, but may not apply for income years before the 2005–06 income year.
(6)
The determination may provide for the extension, limitation, variation, cancellation, or revocation of an earlier determination.
(7)
(8)
Within 30 days of issuing a determination under subsection (1), the Commissioner must give notice of the determination to the person or group who applied for the determination.
(9)
Within 30 days of issuing a determination under subsection (1) that is expressed to apply to a class of persons, the Commissioner must publish a notice in a publication chosen by the Commissioner that—
(a)
gives notice that the determination has been issued; and
(b)
states where copies of the determination can be obtained.
Section 91AAN: inserted, on 21 June 2005, by section 140 of the Taxation (Base Maintenance and Miscellaneous Provisions) Act 2005 (2005 No 79).
Section 91AAN(1): amended, on 2 June 2016, by section 139(1) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section 91AAN(1): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 91AAN(2): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 91AAN(2)(a): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 91AAN(2)(b): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 91AAN(3)(b): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 91AAN(8): amended, on 2 June 2016, by section 139(2) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section 91AAN(9): amended, on 7 September 2010, by section 148 of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Determinations relating to calculation of FIF income using fair dividend rate method
Heading: inserted, on 1 April 2007, by section 193 of the Taxation (Savings Investment and Miscellaneous Provisions) Act 2006 (2006 No 81).
91AAO Determination on type of interest in FIF and use of fair dividend rate method
(1)
For the purposes of section EX 46 of the Income Tax Act 2007, the Commissioner may determine that a type of financial arrangement or excepted financial arrangement is—
(a)
a type of attributing interest in a FIF for which a person may use the fair dividend rate method to calculate FIF income from the interest; or
(b)
a type of attributing interest in a FIF for which a person may not use the fair dividend rate method to calculate FIF income from the interest.
(2)
In making a determination, the Commissioner may take into account the following:
(a)
the principle that the fair dividend rate method should not be used for an attributing interest in a FIF that is economically equivalent to a loan denominated in New Zealand dollars:
(b)
the extent to which the assets of a FIF—
(i)
are loans, fixed-rate foreign equity as defined in section YA 1 of the Income Tax Act 2007, or arrangements with a fixed economic return:
(ii)
are denominated in New Zealand dollars:
(iii)
have a value in New Zealand dollars that is substantially unaffected by variations in currency exchange rates:
(c)
the compliance costs incurred by a person required to use the fair dividend rate method:
(d)
arrangements affecting the assets of a FIF and interests held directly or indirectly in a FIF.
(3)
A determination may be made for income years specified in the determination.
(3B)
A determination does not apply for a person and an income year beginning before the date of the determination unless the person chooses that the determination apply for the income year.
(3C)
Subsection (3D) applies to a multi-rate PIE that calculates and pays its income tax liability under the quarterly calculation option as set out in section HM 43 of the Income Tax Act 2007.
(3D)
A determination does not apply for the multi-rate PIE for a quarter beginning before the date of the determination unless the PIE chooses that the determination apply for the quarter and all following quarters in the income year.
(4)
A determination may provide for the extension, limitation, variation, cancellation, or revocation of an earlier determination.
(5)
The Commissioner must:
(a)
notify the making of a determination within 30 days of the date of the determination, in a publication chosen by the Commissioner; and
(b)
publish the determination in a publication of the department as soon as possible.
Section 91AAO: inserted, on 1 April 2007, by section 193 of the Taxation (Savings Investment and Miscellaneous Provisions) Act 2006 (2006 No 81).
Section 91AAO(1): amended (with effect on 1 April 2008), on 6 October 2009, by section 651(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 91AAO(2): replaced (with effect on 1 April 2007), on 19 December 2007, by section 228(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 91AAO(2)(b)(i): replaced (with effect on 30 June 2009), on 6 October 2009 (applying for all income years beginning on or after 1 July 2009), by section 651(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 91AAO(2)(b)(i): amended (with effect on 30 June 2009), on 7 September 2010, by section 149(1) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section 91AAO(3): replaced (with effect on 1 April 2007), on 19 December 2007, by section 228(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 91AAO(3B): inserted (with effect on 1 April 2007), on 19 December 2007, by section 228(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 91AAO(3C): replaced, on 1 April 2010 (applying for 2010–11 and later income years), by section 651(4) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 91AAO(3D): replaced, on 1 April 2010 (applying for 2010–11 and later income years), by section 651(4) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 91AAO(5): replaced (with effect on 1 April 2007), on 19 December 2007, by section 228(3) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 91AAO(5)(a): amended, on 7 September 2010, by section 149(2)(a) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section 91AAO(5)(a): amended, on 7 September 2010, by section 149(2)(b) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Determinations relating to non-attributing active CFCs
Heading: inserted (with effect on 30 June 2009), on 6 October 2009, by section 652 of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
91AAQ Determination on insurer as non-attributing active CFC
(1)
A person may apply to the Commissioner for a determination that, for the purposes of section EX 21B of the Income Tax Act 2007,—
(a)
a CFC is a non-attributing active CFC, if the CFC satisfies subsection (2); or
(b)
the members of a group of CFCs are non-attributing active CFCs, if the members satisfy subsection (3).
(2)
A CFC satisfies this subsection if—
(a)
the CFC is controlled by a company resident in New Zealand that—
(i)
has a business of insurance to which section 60(1) of the Insurance (Prudential Supervision) Act 2010 applies:
(ii)
is in the same group of companies as a company resident in New Zealand that has a business of insurance to which section 60(1) of that Act applies; and
(b)
the CFC has, in a country or territory outside New Zealand, a business of insurance that is registered under the laws of the country or territory relating to the business of insurance; and
(c)
[Repealed](3)
A group of CFCs satisfies this subsection if—
(a)
the group is a group of companies that—
(i)
is controlled by a New Zealand resident; and
(ii)
has, in a country or territory outside New Zealand, a business of insurance that is registered under the laws of the country or territory relating to the business of insurance; and
(b)
each CFC—
(i)
is controlled by a company resident in New Zealand that has a business of insurance to which section 60(1) of the Insurance (Prudential Supervision) Act 2010 applies or that is in the same group of companies as such a company; and
(ii)
is incorporated in the same country or territory as the other CFCs; and
(iii)
is subject to the laws of the country or territory; and
(iv)
is liable in the country or territory to income tax on its income; and
(v)
derives its income mainly from the country or territory; and
(vi)
has a main business that is insurance or is related to insurance.
(4)
In deciding whether or not to grant an application, the Commissioner must consider whether the business of the CFC or group of CFCs—
(a)
is carried on with the main purpose of producing a commercial return on the capital of the CFC or group; and
(b)
produces income of the CFC or group, other than income from claims under reinsurance contracts, that is all or nearly all from—
(i)
premiums from insurance contracts, other than reinsurance contracts, covering risks arising in the country or territory in which the business of the CFC or group is located:
(ii)
proceeds from investment assets having a total value commensurate with the value of those insurance contracts.
(5)
For the purposes of subsection (4), the Commissioner may take into account the following:
(a)
the nature and extent of the activities undertaken by the CFC or group in the business of insurance:
(b)
the nature and extent of the risks arising in the country or territory that are assumed by the CFC or group in the business:
(c)
the nature and value of the assets used by the CFC or group in the business compared with the nature and extent of the risks assumed by the CFC or group in the business:
(d)
the nature and amount of deductions that the company controlling the CFC or group has for expenditure or loss incurred in giving support in relation to the business compared with the nature and amount of the assessable income that the company has from the CFC or group in relation to the business.
(5B)
In a determination, the Commissioner may stipulate conditions that must be satisfied,—
(a)
in addition to the requirements of subsection (2), for a CFC to be a non-attributing active CFC:
(b)
in addition to the requirements of subsection (3), for the members of a group of CFCs to be non-attributing active CFCs.
(6)
A determination may be made for income years specified in the determination.
(7)
A determination may provide for the extension, limitation, variation, cancellation, or revocation of an earlier determination.
(8)
A determination must be published in a publication chosen by the Commissioner within 30 days of the making of the determination.
Section 91AAQ: inserted (with effect on 30 June 2009), on 6 October 2009, by section 652 of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 91AAQ(1): amended, on 2 June 2016, by section 140 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section 91AAQ(2)(a)(i): replaced (with effect on 7 March 2012), on 2 November 2012, by section 194(1) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).
Section 91AAQ(2)(a)(ii): replaced (with effect on 7 March 2012), on 2 November 2012, by section 194(1) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).
Section 91AAQ(2)(c): repealed (with effect on 1 April 2017), on 29 March 2018, by section 338(1) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 91AAQ(3)(a): replaced (with effect on 1 April 2017), on 29 March 2018, by section 338(2) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 91AAQ(3)(b)(i): amended (with effect on 7 March 2012), on 2 November 2012, by section 194(2) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).
Section 91AAQ(4)(b): replaced (with effect on 1 July 2009 and applying for income years beginning on or after that date), on 7 May 2012, by section 147(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section 91AAQ(5B): inserted (with effect on 1 July 2009 and applying for income years beginning on or after that date), on 7 May 2012, by section 147(2) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section 91AAQ(8): amended, on 7 September 2010, by section 150 of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Determinations relating to relocation payments
Heading: inserted, on 6 October 2009, by section 653 of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
91AAR Determination relating to eligible relocation expenses
(1)
The Commissioner may determine that a type of expenditure is an eligible relocation expense for the purposes of section CW 17B of the Income Tax Act 2007, section CW 13B of the Income Tax Act 2004, and section CB 12(1B) of the Income Tax Act 1994.
(2)
The determination may set out the income year or income years for which it is to apply, but may not apply for income years before the 2002–03 income year.
(3)
In determining whether a type of expenditure is an eligible relocation expense, the Commissioner may take into account whether the expenditure necessarily arises from a work-related relocation of an employee, rather than arising as a cost, including a private or capital cost, that an employee has incurred, or will incur, gradually over time irrespective of whether the employee would have relocated. In this regard, the Commissioner may bear in mind—
(a)
whether the expenditure amounts to a substitution for an employee’s salary or wages:
(b)
whether employers generally treat the type of expenditure as a relocation expense:
(c)
the difficulty of and costs in measuring any element of private benefit.
(4)
The determination may provide for the extension, limitation, variation, cancellation, or revocation of an earlier determination. The Commissioner must give at least 30 days’ notice of the implementation date of any change to the determination.
(5)
(6)
A determination under this section is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).
| Legislation Act 2019 requirements for secondary legislation made under this section | ||||
| Publication | The maker must: | LA19 ss 73, 74(1)(a), Sch 1 cl 14 | ||
| • make copies of it available | ||||
| • within 30 days of making it, publish (in a publication chosen by the maker) notice that it has been made and where it is available | ||||
| Presentation | It is not required to be presented to the House of Representatives because a transitional exemption applies under Schedule 1 of the Legislation Act 2019 | LA19 s 114, Sch 1 cl 32(1)(a) | ||
| Disallowance | It may be disallowed by the House of Representatives | LA19 ss 115, 116 | ||
| This note is not part of the Act. | ||||
Section 91AAR: inserted, on 6 October 2009, by section 653 of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 91AAR(6): replaced, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
Determinations relating to family scheme income
Heading: inserted (with effect on 1 April 2011), on 24 May 2011, by section 12 of the Taxation (Canterbury Earthquake Measures) Act 2011 (2011 No 24).
91AAS Declaration of emergency event for purposes of family scheme income
(1)
The Commissioner may determine that an event is an emergency event, for the purposes of section MB 13(2)(r) of the Income Tax Act 2007, if the event meets the requirements of paragraphs (a) and (b) of the definition of emergency in section 4 of the Civil Defence Emergency Management Act 2002.
(2)
The determination must set a period relating to the event that begins on the day of the event.
(3)
The determination may provide for the extension, limitation, variation, cancellation, or repeal of an earlier determination.
(4)
As soon as possible after issuing or changing a determination under this section, the Commissioner must publish the new or changed determination in a publication chosen by the Commissioner.
Section 91AAS: inserted (with effect on 1 April 2011), on 24 May 2011, by section 12 of the Taxation (Canterbury Earthquake Measures) Act 2011 (2011 No 24).
Section 91AAS(1): amended (with effect on 1 September 2023), on 28 March 2024, by section 144(1) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
Section 91AAS(2): amended (with effect on 1 September 2023), on 28 March 2024, by section 144(2) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
Section 91AAS(3): amended (with effect on 1 September 2023), on 28 March 2024, by section 144(3) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
Determinations relating to certain employment expenditure
Heading: inserted, on 1 April 2015, by section 158 of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).
91AAT Determinations relating to certain employment expenditure
(1)
The Commissioner may determine the extent to which, on average, an amount that an employer pays in connection with an employee’s employment or service as described in section CW 17(2C) and (3) of the Income Tax Act 2007 is exempt income of a member of the relevant group or class of employees to which the employee belongs.
(2)
For the purposes of subsection (1), the Commissioner may set a percentage that represents the extent to which the payment for a particular type of expense is taxable, and may do so by making a reasonable estimate of the amount that is taxable. This subsection does not apply to expenditure incurred under sections CW 16B to CW 16F, CW 17B, CW 17C, CW 17CB, CW 17CC, and CW 18 of that Act.
(3)
The determination may set out the income year or income years for which it is to apply, but may not apply for income years before the 2014–15 income year.
(4)
A determination made under this section is not binding on the employer or the employee.
(5)
In making the determination, the Commissioner must have regard to the size of the group or class of employees and the generality of the issue.
(6)
The determination may provide for the extension, limitation, variation, cancellation, or revocation of an earlier determination. The Commissioner must give at least 30 days notice of the implementation date of any change to the determination.
(7)
Within 30 days of issuing or changing a determination under this section, the Commissioner must publish a notice in a publication chosen by the Commissioner that—
(a)
gives notice that the determination has been issued or changed, as applicable; and
(b)
states where copies of the determination can be obtained.
Section 91AAT: inserted, on 1 April 2015, by section 158 of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).
Determinations relating to foreign account information-sharing agreements
Heading: inserted, on 21 February 2017, by section 14 of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
91AAU Participating jurisdictions for CRS applied standard
(1)
The Commissioner may determine that a territory outside New Zealand is a participating jurisdiction for the purposes of the CRS applied standard and Part 11B.
(2)
The determination may set out the period for which it is to apply, which must not begin before the latest reporting period that finishes before the determination is made.
(3)
A determination may provide for the change, extension, limitation, suspension, or cancellation of an earlier determination.
(4)
A determination under this section is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).
| Legislation Act 2019 requirements for secondary legislation made under this section | ||||
| Publication | The maker must, within 30 days of making it, publish (in a publication chosen by the maker): | LA19 ss 73, 74(1)(a), Sch 1 cl 14 | ||
| • the secondary legislation | ||||
| • details of any changed, extended, limited, suspended, or cancelled secondary legislation | ||||
| The Ministry of Foreign Affairs and Trade considers that the secondary legislation may have international transparency obligations under the CPTPP. As a result the maker may also have to comply with s 75 of the Legislation Act 2019 | LA19 ss 74(2), 75 | |||
| Presentation | It is not required to be presented to the House of Representatives because a transitional exemption applies under Schedule 1 of the Legislation Act 2019 | LA19 s 114, Sch 1 cl 32(1)(a) | ||
| Disallowance | It may be disallowed by the House of Representatives | LA19 ss 115, 116 | ||
| This note is not part of the Act. | ||||
Section 91AAU: inserted, on 21 February 2017, by section 14 of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
Section 91AAU(4): replaced, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
91AAV Suspension of reportable jurisdictions for CRS applied standard
(1)
The Commissioner may determine, for a territory outside New Zealand that has been provided by an Order in Council to be a reportable jurisdiction for the purposes of the CRS applied standard and requirements imposed by Part 11B, that the territory is not to be treated as a reportable jurisdiction.
(2)
The determination must set out the period for which it is to apply, which must not begin before the latest reporting period that finishes before the determination is made and must end no more than 3 months after the date of the determination.
(3)
A determination under this section is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).
| Legislation Act 2019 requirements for secondary legislation made under this section | ||||
| Publication | The maker must publish it in a publication chosen by the maker within 30 days of making it | LA19 ss 73, 74(1)(a), Sch 1 cl 14 | ||
| The Ministry of Foreign Affairs and Trade considers that the secondary legislation may have international transparency obligations under the CPTPP. As a result the maker may also have to comply with s 75 of the Legislation Act 2019 | LA19 ss 74(2), 75 | |||
| Presentation | It is not required to be presented to the House of Representatives because a transitional exemption applies under Schedule 1 of the Legislation Act 2019 | LA19 s 114, Sch 1 cl 32(1)(a) | ||
| Disallowance | It may be disallowed by the House of Representatives | LA19 ss 115, 116 | ||
| This note is not part of the Act. | ||||
Section 91AAV: inserted, on 21 February 2017, by section 14 of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
Section 91AAV(3): replaced, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
91AAW Non-reporting financial institutions and excluded accounts for CRS applied standard
(1)
The Commissioner may determine that, for the purposes of the CRS applied standard and requirements under Part 11B,—
(a)
a financial institution, or type of financial institution, is a non-reporting financial institution:
(b)
a financial account, or type of financial account, is an excluded account.
(2)
The determination may set out the period for which it is to apply, which must not begin before the latest reporting period that finishes before the determination is made.
(3)
A determination may provide for the change, extension, limitation, suspension, or cancellation of an earlier determination.
(4)
A determination under this section is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).
| Legislation Act 2019 requirements for secondary legislation made under this section | ||||
| Publication | The maker must, within 30 days of making it, publish (in a publication chosen by the maker): | LA19 ss 73, 74(1)(a), Sch 1 cl 14 | ||
| • the secondary legislation | ||||
| • details of any changed, extended, limited, suspended, or cancelled secondary legislation | ||||
| The Ministry of Foreign Affairs and Trade considers that the secondary legislation may have international transparency obligations under the CPTPP. As a result the maker may also have to comply with s 75 of the Legislation Act 2019 | LA19 ss 74(2), 75 | |||
| Presentation | It is not required to be presented to the House of Representatives because a transitional exemption applies under Schedule 1 of the Legislation Act 2019 | LA19 s 114, Sch 1 cl 32(1)(a) | ||
| Disallowance | It may be disallowed by the House of Representatives | LA19 ss 115, 116 | ||
| This note is not part of the Act. | ||||
Section 91AAW: inserted, on 21 February 2017, by section 14 of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
Section 91AAW(4): replaced, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
Determinations relating to AIM method
Heading: inserted, on 1 April 2018 (applying for the 2018–19 and later income years), by section 52(1) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
91AAX Accounting and rate determinations relating to AIM method
(1)
The Commissioner may determine, for the purposes of section RC 7B(3)(a) of the Income Tax Act 2007, tax adjustments for accounting income and expenditure under the AIM method and tax rates for the calculation of tax liabilities under the AIM method.
(2)
In making a determination the Commissioner must have regard to—
(a)
the accuracy of assessments of tax liabilities that would result from the use of the tax adjustments and tax rates:
(b)
the compliance costs incurred by taxpayers:
(c)
the resources available to approved AIM providers.
(3)
A determination may set out the tax year or years for which it is to apply, or a date from which it is to apply (the implementation date).
(4)
A determination (a later determination) may provide for the extension, limitation, variation, cancellation, or revocation of an earlier determination. The Commissioner must give at least 120 days notice of the implementation date of that later determination, in a publication chosen by the Commissioner.
(5)
A determination under this section is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).
| Legislation Act 2019 requirements for secondary legislation made under this section | ||||
| Publication | The maker must publish it in a publication chosen by the maker within 30 days of making it | LA19 ss 73, 74(1)(a), Sch 1 cl 14 | ||
| Presentation | It is not required to be presented to the House of Representatives because a transitional exemption applies under Schedule 1 of the Legislation Act 2019 | LA19 s 114, Sch 1 cl 32(1)(a) | ||
| Disallowance | It may be disallowed by the House of Representatives | LA19 ss 115, 116 | ||
| This note is not part of the Act. | ||||
Section 91AAX: inserted, on 1 April 2018 (applying for the 2018–19 and later income years), by section 52(1) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
Section 91AAX(5): replaced, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
91AAY Class of taxpayers that must not use AIM method
(1)
The Commissioner may determine, for the purposes of section RC 5(5B)(f) of the Income Tax Act 2007, that a class of taxpayers must not use the AIM method.
(2)
In making a determination the Commissioner must have regard to the risk that allowing the class of taxpayers to use the AIM method will result in less net revenue collectable from the class of taxpayers over time.
(3)
A determination may set out the tax year or years for which it is to apply, or a date from which it is to apply (the implementation date).
(4)
A determination (a later determination) may provide for the extension, limitation, variation, cancellation, or revocation of an earlier determination. The Commissioner must give at least 120 days notice of the implementation date of that later determination, in a publication chosen by the Commissioner.
(5)
A determination under this section is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).
| Legislation Act 2019 requirements for secondary legislation made under this section | ||||
| Publication | The maker must publish it in a publication chosen by the maker within 30 days of making it | LA19 ss 73, 74(1)(a), Sch 1 cl 14 | ||
| Presentation | It is not required to be presented to the House of Representatives because a transitional exemption applies under Schedule 1 of the Legislation Act 2019 | LA19 s 114, Sch 1 cl 32(1)(a) | ||
| Disallowance | It may be disallowed by the House of Representatives | LA19 ss 115, 116 | ||
| This note is not part of the Act. | ||||
Section 91AAY: inserted, on 1 April 2018 (applying for the 2018–19 and later income years), by section 52(1) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
Section 91AAY(5): replaced, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
91AAZ AIM method information
(1)
The Commissioner may determine, for the purposes of section 45, information and form required or prescribed under that section.
(2)
In making a determination the Commissioner must have regard to—
(a)
the Commissioner’s information needs in the context of the duties and obligations in section 6A:
(b)
the compliance costs incurred by taxpayers:
(c)
the resources available to approved AIM providers.
(3)
A determination may set out the tax year or years for which it is to apply, or a date from which it is to apply (the implementation date).
(4)
A determination (a later determination) may provide for the extension, limitation, variation, cancellation, or revocation of an earlier determination. The Commissioner must give at least 120 days notice of the implementation date of that later determination, in a publication chosen by the Commissioner.
(5)
A determination under this section is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).
| Legislation Act 2019 requirements for secondary legislation made under this section | ||||
| Publication | The maker must publish it in a publication chosen by the maker within 30 days of making it | LA19 ss 73, 74(1)(a), Sch 1 cl 14 | ||
| Presentation | It is not required to be presented to the House of Representatives because a transitional exemption applies under Schedule 1 of the Legislation Act 2019 | LA19 s 114, Sch 1 cl 32(1)(a) | ||
| Disallowance | It may be disallowed by the House of Representatives | LA19 ss 115, 116 | ||
| This note is not part of the Act. | ||||
Section 91AAZ: inserted, on 1 April 2018 (applying for the 2018–19 and later income years), by section 52(1) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
Section 91AAZ(5): replaced, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
Part 5A Binding rulings
Part 5A: inserted (with effect on 1 April 1995), on 10 April 1995, by section 10 of the Tax Administration Amendment Act 1995 (1995 No 24).
91A Purpose of this Part
The purpose of this Part is to—
(a)
provide taxpayers with certainty about the way the Commissioner will apply taxation laws; and
(b)
help them to meet their obligations under those laws,—
by enabling the Commissioner to issue rulings that will bind the Commissioner on the application of those laws. The Part also recognises the importance of collecting the taxes imposed by Parliament and the need for full and accurate disclosure by taxpayers who seek to obtain binding rulings.
Section 91A: inserted (with effect on 1 April 1995), on 10 April 1995, by section 10 of the Tax Administration Amendment Act 1995 (1995 No 24).
91B Interpretation
In this Part—
discretion, in relation to the exercise of the Commissioner’s discretion under a taxation law, includes—
(a)
the exercising of a power by the Commissioner:
(b)
the forming of an opinion by the Commissioner:
(c)
the attaining by the Commissioner of a state of mind
taxation law means a provision specified in section 91C(1) in respect of which the Commissioner may make a binding ruling; and includes, in relation to any such provision that requires or authorises the Commissioner to exercise a discretion, the exercise of that discretion.
Section 91B: inserted (with effect on 1 April 1995), on 10 April 1995, by section 10 of the Tax Administration Amendment Act 1995 (1995 No 24).
91C Taxation laws in respect of which binding rulings may be made
(1)
The Commissioner may make a binding ruling on any provision of—
(a)
the Estate and Gift Duties Act 1968; or
(b)
the Gaming Duties Act 1971; or
(c)
the Goods and Services Tax Act 1985, except sections 12 and 13 of that Act; or
(d)
the Stamp and Cheque Duties Act 1971; or
(db)
the Unclaimed Money Act 1971; or
(e)
the Income Tax Act 1994, except to the extent to which the matter in question is or could have been, before the repeal of the Income Tax Act 1994 the subject of a determination of the Commissioner under—
(i)
sections 90 or 90AC of this Act in relation to a financial arrangement; or
(ia)
section 90A of this Act in relation to the extent to which a financial arrangement provides funds to a party under the arrangement; or
(ii)
section 91 of this Act in relation to petroleum mining; or
(iii)
section EF 1(3) of the Income Tax Act 1994 in relation to accrual expenditure; or
(iv)
any of sections EG 4, EG 10, EG 11, and EG 12 of the Income Tax Act 1994 in relation to depreciable property; or
(v)
section EL 4 of the Income Tax Act 1994 in relation to specified livestock; or
(vi)
section EL 9(3) of the Income Tax Act 1994 in relation to non-specified livestock; or
(eb)
the Income Tax Act 2004, except to the extent to which the matter in question is or could be the subject of a determination of the Commissioner under—
(i)
sections 90 or 90AC in relation to a financial arrangement; or
(ii)
section 90A in relation to the extent to which a financial arrangement provides funds to a party under the arrangement; or
(iii)
section 91 in relation to petroleum mining; or
(iv)
section 91AAD or 91AAE in relation to livestock; or
(v)
any of sections 91AAF to 91AAM in relation to depreciation; or
(vi)
section EA 3(8) of the Income Tax Act 2004 in relation to accrual expenditure; or
(ec)
the Income Tax Act 2007, except to the extent to which the matter in question is or could be the subject of a determination of the Commissioner under—
(i)
sections 90 or 90AC in relation to a financial arrangement, other than as permitted by section 91CC; or
(ii)
section 90A in relation to the extent to which a financial arrangement provides funds to a party under the arrangement; or
(iii)
section 91 in relation to petroleum mining; or
(iv)
section 91AAD or 91AAE in relation to livestock; or
(v)
any of sections 91AAF to 91AAM in relation to depreciation; or
(vi)
section EA 3(8) of the Income Tax Act 2007 in relation to accrual expenditure; or
(ed)
the applied global anti-base erosion rules, including commentary and guidance described in section HP 3(3)(b) of the Income Tax Act 2007; or
(f)
any Order in Council or regulation made under section 225 of this Act or under any of the Acts listed in paragraphs (a) to (ec) of this subsection, except—
(i)
any provision to the extent that it is or could be the subject of a determination referred to in paragraph (e), (eb), or (ec); or
(ii)
section RD 24 of the Income Tax Act 2007.
(1A)
The Commissioner may make a binding ruling under section 91GB.
(1B)
The Commissioner may make a binding ruling on how the record-keeping requirements of this Act apply. The provisions are—
(a)
[Repealed](b)
(c)
(d)
(e)
(f)
(g)
(h)
[Repealed](i)
(j)
(k)
(2)
The Commissioner may also make a binding ruling on how the Commissioner will exercise his or her discretion under a provision specified in subsection (1).
(3)
The Commissioner may not make a binding ruling on a provision that authorises or requires the Commissioner to—
(a)
impose or remit a penalty; or
(b)
inquire into the correctness of any return or other information supplied by any person; or
(c)
prosecute any person; or
(d)
recover any debt owing by any person.
(4)
[Repealed]Section 91C: inserted (with effect on 1 April 1995), on 10 April 1995, by section 10 of the Tax Administration Amendment Act 1995 (1995 No 24).
Section 91C(1)(db): inserted, on 30 March 2021, by section 167 of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
Section 91C(1)(e): amended (with effect on 1 April 2008), on 8 December 2009, by section 139(1) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
Section 91C(1)(e): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 91C(1)(e)(i): amended, on 20 May 1999 (applying on and after 20 May 1999), by section 76(1) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
Section 91C(1)(e)(ia): replaced, on 20 May 1999 (applying on and after 20 May 1999), by section 76(2) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
Section 91C(1)(e)(v): amended, on 23 September 1997, by section 74(1) of the Taxation (Remedial Provisions) Act 1997 (1997 No 74).
Section 91C(1)(e)(vi): inserted, on 23 September 1997, by section 74(2) of the Taxation (Remedial Provisions) Act 1997 (1997 No 74).
Section 91C(1)(eb): inserted, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 91C(1)(eb): amended (with effect on 1 April 2008), on 8 December 2009, by section 139(2) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
Section 91C(1)(eb): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 91C(1)(ec): inserted, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 91C(1)(ec)(i): amended, on 18 March 2019, by section 54(1) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 91C(1)(ed): inserted, on 1 January 2025, by section 145 of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
Section 91C(1)(f): amended (with effect on 1 April 2008), on 17 July 2013, by section 113(1) of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).
Section 91C(1)(f): amended (with effect on 1 April 2005), on 19 December 2007 (applying for 2005–06 and later income years), by section 230(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 91C(1)(f)(i): amended (with effect on 1 April 2008), on 17 July 2013, by section 113(2) of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).
Section 91C(1)(f)(i): amended (with effect on 1 April 2005), on 19 December 2007 (applying for 2005–06 and later income years), by section 230(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 91C(1)(f)(ii): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 91C(1A): inserted, on 20 May 1999 (applying on and after 20 May 1999), by section 76(3) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
Section 91C(1B): replaced, on 1 April 2019, by section 54(4) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 91C(1B)(a): repealed, on 1 April 2020, by section 54(5) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 91C(1B)(h): repealed, on 1 April 2020, by section 54(5) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 91C(4): repealed (with effect on 1 April 2009), on 31 March 2023, by section 190(1) (and see section 190(2) for application) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
91CB Binding rulings on certain matters
(1)
The Commissioner may make a private ruling or a short-process ruling on whether a person meets the requirements of the Income Tax Act 2007 or the Goods and Services Tax Act 1985 that affect or define the status of a person for the purposes of either or both those Acts. Examples include—
(a)
whether a person carries on business through a permanent establishment or a fixed establishment:
(b)
whether a person is resident or non-resident:
(c)
whether 2 persons are associated:
(d)
whether a person is a non-profit body for the purposes of the Goods and Services Tax Act 1985:
(e)
whether a person is a unit trust:
(f)
whether a person is a portfolio investment entity.
(2)
The Commissioner may make a binding ruling on whether an item of property is—
(a)
trading stock as that term is defined in section YA 1 of the Income Tax Act 2007:
(b)
revenue account property as that term is defined in section YA 1 of that Act.
(3)
The Commissioner may make a binding ruling as to whether—
(a)
an amount that a person derives from disposing of personal property is income of the person under section CB 4 of the Income Tax Act 2007:
(b)
an amount that a person derives from disposing of land is income of the person under section CB 6 or CB 7 of that Act:
(c)
[Repealed](4)
Despite sections 91E to 91EJ, and 91F to 91FK, a binding ruling made under this section does not require a reference to an arrangement in order for the application of the ruling to be effective.
Section 91CB: inserted, on 18 March 2019, by section 55 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 91CB(1): amended, on 1 October 2019, by section 56 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 91CB(2)(a): amended (with effect on 18 March 2019), on 26 June 2019, by section 100(1) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).
Section 91CB(3)(a): amended (with effect on 18 March 2019), on 26 June 2019, by section 100(2) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).
Section 91CB(3)(c): repealed (with effect on 18 March 2019), on 26 June 2019, by section 100(3) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).
91CC Binding rulings on certain determination matters
(1)
For the purposes of the financial arrangements rules in subpart EW of the Income Tax Act 2007, the Commissioner may make a binding ruling on how a taxation law applies, or would apply, to a person and an arrangement in relation to the following matters:
(a)
whether an amount is solely attributable to an excepted financial arrangement under section EW 6:
(b)
the use of a spreading method described in section EW 14(2)(aa) to (e) for the purposes of sections EW 15E and EW 15I:
(c)
the value of property or services referred to in section EW 32(6).
(2)
For the purposes of subsection (1), it does not matter whether the arrangement is a single or recurring arrangement.
Section 91CC: inserted, on 18 March 2019, by section 55 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Public rulings
Heading: inserted (with effect on 1 April 1995), on 10 April 1995, by section 10 of the Tax Administration Amendment Act 1995 (1995 No 24).
91D Commissioner may make public rulings
The Commissioner may at any time make a public ruling on how a taxation law applies in relation to any type of person and any type of arrangement.
Section 91D: inserted (with effect on 1 April 1995), on 10 April 1995, by section 10 of the Tax Administration Amendment Act 1995 (1995 No 24).
91DA Content and notification of a public ruling
(1)
A public ruling must state—
(a)
that it is a public ruling made under section 91D; and
(b)
the taxation law or laws on which it is a ruling; and
(c)
the arrangement to which the ruling applies; and
(d)
how the taxation law or laws apply to the arrangement; and
(e)
either—
(i)
the period or tax year for which the ruling applies; or
(ii)
in the case of a ruling issued for an indefinite period, the date or tax year from which the ruling applies.
Anything that does not contain these statements is not a public ruling.
(2)
The Commissioner shall notify the making of a public ruling by notice in a publication chosen by the Commissioner.
(3)
The notice shall indicate the subject of the public ruling and state where a copy of the ruling may be obtained.
(4)
The Commissioner must publish each public ruling, in full, in a publication of the department.
Section 91DA: inserted (with effect on 1 April 1995), on 10 April 1995, by section 10 of the Tax Administration Amendment Act 1995 (1995 No 24).
Section 91DA(1): replaced, on 20 May 1999 (applying on and after 20 May 1999), by section 77(1) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
Section 91DA(1)(e): replaced, on 17 October 2002 (applying on and after 17 October 2002), by section 82(1) of the Taxation (Relief, Refunds and Miscellaneous Provisions) Act 2002 (2002 No 32).
Section 91DA(1)(e)(i): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 91DA(1)(e)(ii): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 91DA(2): amended, on 7 September 2010, by section 152 of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section 91DA(4): inserted, on 20 May 1999 (applying on and after 20 May 1999), by section 77(2) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
91DB Effect of a public ruling
(1)
Notwithstanding anything in any other Act, if—
(a)
a public ruling on a taxation law applies to a person in relation to an arrangement; and
(b)
the person applies the taxation law in the way stated in the ruling,—
the Commissioner must apply the taxation law in relation to the person and the arrangement in accordance with the ruling.
(2)
[Repealed]Section 91DB: inserted (with effect on 1 April 1995), on 10 April 1995, by section 10 of the Tax Administration Amendment Act 1995 (1995 No 24).
Section 91DB(2): repealed, on 20 May 1999 (applying on and after 20 May 1999), by section 78(1) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
91DC Application of a public ruling
(1)
A public ruling on a taxation law applies to a person and an arrangement—
(a)
if the taxation law is expressly referred to in the ruling; and
(b)
for an arrangement that is specified in the ruling; and
(c)
for an arrangement that is entered into either—
(i)
during the period or tax year for which the ruling applies; or
(ii)
in the case of a ruling issued for an indefinite period, on or after the date, or on or after the first day of the tax year, from which the ruling applies; and
(d)
either—
(i)
for the period or tax year specified in the ruling; or
(ii)
in the case of a ruling issued for an indefinite period, for an indefinite period.
(2)
Subsection (1) does not apply to a taxpayer who has issued the Commissioner with a notice of proposed adjustment to change the effect of a ruling previously applied by the taxpayer.
Section 91DC: replaced, on 20 May 1999 (applying on and after 20 May 1999), by section 79(1) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
Section 91DC(1)(b): replaced, on 17 October 2002 (applying on and after 17 October 2002), by section 83(1) of the Taxation (Relief, Refunds and Miscellaneous Provisions) Act 2002 (2002 No 32).
Section 91DC(1)(c): replaced, on 17 October 2002 (applying on and after 17 October 2002), by section 83(1) of the Taxation (Relief, Refunds and Miscellaneous Provisions) Act 2002 (2002 No 32).
Section 91DC(1)(c)(i): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 91DC(1)(c)(ii): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 91DC(1)(d): inserted, on 17 October 2002 (applying on and after 17 October 2002), by section 83(1) of the Taxation (Relief, Refunds and Miscellaneous Provisions) Act 2002 (2002 No 32).
Section 91DC(1)(d)(i): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
91DD Extension of a public ruling
(1)
The Commissioner may extend the period for which a public ruling applies by publishing a notice of extension in a publication chosen by the Commissioner.
(2)
A notice of extension must state—
(a)
that it is an extension of a public ruling under this section; and
(b)
the original period or tax year for which the ruling applied; and
(c)
the new period or tax year for which the ruling applies.
Section 91DD: inserted (with effect on 1 April 1995), on 10 April 1995, by section 10 of the Tax Administration Amendment Act 1995 (1995 No 24).
Section 91DD(1): amended, on 2 June 2016, by section 141 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section 91DD(2)(b): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 91DD(2)(c): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
91DE Withdrawal of a public ruling
(1)
The Commissioner may at any time withdraw a public ruling.
(2)
The Commissioner must notify the withdrawal by giving adequate notice in a publication chosen by the Commissioner.
(3)
A public ruling is withdrawn on the date stated in the notice of withdrawal. The date cannot be before the date on which notice is given under subsection (2).
(4)
If the Commissioner withdraws a public ruling, the ruling does not apply to an arrangement entered into after the date of withdrawal.
(4A)
If the Commissioner withdraws a public ruling, the ruling continues to apply—
(a)
to an arrangement to which it previously applied that was entered into before the date of withdrawal; and
(b)
either—
(i)
for the remainder of the period or tax year specified in the ruling; or
(ii)
in the case of a ruling issued for an indefinite period, for 3 years after the date stated in the notice of withdrawal.
(5)
A notice of withdrawal must specify—
(a)
that it is a withdrawal of a public ruling under this section; and
(b)
the ruling that is being withdrawn; and
(c)
either—
(i)
the original period or tax year for which the ruling applied; or
(ii)
in the case of a ruling issued for an indefinite period, the original date or tax year from which the ruling applied; and
(d)
the date of the withdrawal.
Anything that does not contain these statements is not a notice of withdrawal of a public ruling.
Section 91DE: inserted (with effect on 1 April 1995), on 10 April 1995, by section 10 of the Tax Administration Amendment Act 1995 (1995 No 24).
Section 91DE(2): replaced, on 20 May 1999 (applying on and after 20 May 1999), by section 81(1) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
Section 91DE(2): amended, on 7 September 2010, by section 153 of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section 91DE(3): replaced, on 20 May 1999 (applying on and after 20 May 1999), by section 81(2) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
Section 91DE(4): replaced, on 17 October 2002 (applying on and after 17 October 2002), by section 84(1) of the Taxation (Relief, Refunds and Miscellaneous Provisions) Act 2002 (2002 No 32).
Section 91DE(4A): inserted, on 17 October 2002 (applying on and after 17 October 2002), by section 84(1) of the Taxation (Relief, Refunds and Miscellaneous Provisions) Act 2002 (2002 No 32).
Section 91DE(4A)(b)(i): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 91DE(5)(c): replaced, on 17 October 2002 (applying on and after 17 October 2002), by section 84(2) of the Taxation (Relief, Refunds and Miscellaneous Provisions) Act 2002 (2002 No 32).
Section 91DE(5)(c)(i): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 91DE(5)(c)(ii): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Private rulings
Heading: inserted (with effect on 1 April 1995), on 10 April 1995, by section 10 of the Tax Administration Amendment Act 1995 (1995 No 24).
91E Commissioner to make private rulings on application
(1)
Subject to section 91EF, the Commissioner must make a private ruling on how a taxation law applies, or would apply, to a person and to the arrangement, whether a single or a recurring arrangement, for which the ruling is sought.
(1B)
The Commissioner may make a private ruling on the status of a person, item, or matter under section 91CB otherwise than in relation to an arrangement.
(2)
The Commissioner may make a private ruling on how a taxation law applies to the arrangement described in an application whether or not reference was made to that taxation law in the application.
(3)
The Commissioner may decline to make a private ruling if—
(a)
the Commissioner considers that the correctness of the ruling would depend on which conditions were stipulatedabout a future event or other matter; or
(b)
the arrangement on which the ruling is sought, or a separately identifiable part of that arrangement, is substantially the same as an arrangement which is subject to an objection, challenge, or appeal, whether in relation to the applicant or any other person; or
(c)
the applicant has outstanding debts relating to earlier binding ruling applications.
(3B)
Despite subsection (1), the Commissioner may decide to not make a private ruling, to the extent to which it would be a ruling on how section GA 1 of the Income Tax Act 2007 applies or would apply.
(4)
The Commissioner may not make a private ruling if—
(a)
the application for the ruling would require the Commissioner to determine a proscribed question, other than a matter referred to in section 91CB(3); or
(b)
at the time the application is made or at any time before the ruling is issued, the Commissioner considers that the person to whom the ruling is to apply is not seriously contemplating the arrangement for which the ruling is sought; or
(c)
the application is frivolous or vexatious; or
(d)
the matter on which the ruling is sought—
(i)
concerns a tax (excluding provisional tax), duty, or levy that is due and payable, unless the application is received before the tax (excluding provisional tax), duty, or levy is due and payable; or
(ii)
is being dealt with, or in the Commissioner’s opinion should be dealt with, by one or both competent authorities of the parties to a double tax agreement; or
(e)
a private ruling already exists on how the relevant taxation law applies to the person and the arrangement, and the proposed ruling would apply to a period or a tax year to which the existing ruling applies; or
(f)
an assessment relating to the person, the arrangement, and a period or a tax year to which the proposed ruling would apply has been made, unless the application is received by the Commissioner before the date an assessment is made; or
(g)
the Commissioner is auditing or investigating how the taxation law applies to the person and to the arrangement for a period or a tax year to which the proposed ruling would apply; or
(ga)
a notice of proposed adjustment has been issued, and the proposed ruling would apply to the same—
(i)
person; and
(ii)
arrangement; and
(iii)
tax type or separately identifiable issue; or
(h)
in the Commissioner’s opinion the applicant has not provided sufficient information in relation to the application after the Commissioner has requested further information; or
(i)
in the Commissioner’s opinion it would be unreasonable to make a ruling in view of the resources available to the Commissioner; or
(j)
the application for the ruling would require the Commissioner to form an opinion as to a generally accepted accounting practice.
(4A)
Subsection (4)(a) does not apply if the application for the ruling relates to how either sections GC 6 to GC 19 or YD 5 of the Income Tax Act 2007 applies, or would apply, to the person applying for the ruling and to the arrangement, whether a single or a recurring arrangement, for which the ruling is sought.
(4B)
In this section and sections 91EA to 91ED, 91EH, and 91EI, a reference to an arrangement is ignored for the purposes of a ruling by the Commissioner under section 91CB on the status of a person, item, or matter.
(5)
The Commissioner may not, before 1 April 1996 or such other date as may be specified by the Governor-General by Order in Council for the purposes of this subsection, make a private ruling on an arrangement if that arrangement was entered into before the date on which the Commissioner received the application for the ruling.
(6)
An order under subsection (5) is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).
(6)
[Repealed]| Legislation Act 2019 requirements for secondary legislation made under this section | ||||
| Publication | PCO must publish it on the legislation website and notify it in the Gazette | LA19 s 69(1)(c) | ||
| Presentation | The Minister must present it to the House of Representatives | LA19 s 114, Sch 1 cl 32(1)(a) | ||
| Disallowance | It may be disallowed by the House of Representatives | LA19 ss 115, 116 | ||
| This note is not part of the Act. | ||||
Section 91E: inserted (with effect on 1 April 1995), on 10 April 1995, by section 10 of the Tax Administration Amendment Act 1995 (1995 No 24).
Section 91E heading: amended, on 2 June 2016, by section 142(1) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section 91E(1): replaced, on 20 May 1999 (applying on and after 20 May 1999), by section 82(1) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
Section 91E(1B): inserted, on 18 March 2019, by section 57(1) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 91E(3)(a): amended, on 18 March 2019, by section 57(2) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 91E(3)(b): amended, on 7 September 2010, by section 154(1) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section 91E(3)(b): amended, on 20 May 1999 (applying on and after 20 May 1999), by section 82(2) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
Section 91E(3)(b): amended (with effect on 1 October 1996), on 23 September 1997, by section 75(1) of the Taxation (Remedial Provisions) Act 1997 (1997 No 74).
Section 91E(3)(c): inserted, on 20 May 1999 (applying on and after 20 May 1999), by section 82(2) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
Section 91E(3B): inserted, on 2 November 2012, by section 195 of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).
Section 91E(4)(a): amended, on 18 March 2019, by section 57(3) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 91E(4)(b): replaced, on 20 May 1999 (applying on and after 20 May 1999), by section 82(3) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
Section 91E(4)(d)(i): replaced, on 20 May 1999 (applying on and after 20 May 1999), by section 82(4) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
Section 91E(4)(d)(ii): replaced, on 23 September 1997, by section 75(3) of the Taxation (Remedial Provisions) Act 1997 (1997 No 74).
Section 91E(4)(e): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 91E(4)(e): amended, on 20 May 1999 (applying on and after 20 May 1999), by section 82(5) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
Section 91E(4)(f): replaced, on 20 May 1999 (applying on and after 20 May 1999), by section 82(6) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
Section 91E(4)(f): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 91E(4)(g): replaced, on 20 May 1999 (applying on and after 20 May 1999), by section 82(7) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
Section 91E(4)(g): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 91E(4)(ga): replaced, on 2 June 2016, by section 142(2) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section 91E(4)(i): amended, on 26 November 1998, by section 29 of the Taxation (Tax Credits, Trading Stock, and Other Remedial Matters) Act 1998 (1998 No 107).
Section 91E(4)(j): inserted, on 26 November 1998, by section 29 of the Taxation (Tax Credits, Trading Stock, and Other Remedial Matters) Act 1998 (1998 No 107).
Section 91E(4)(j): amended, on 7 September 2010, by section 154(4) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section 91E(4)(j): amended (with effect on 17 October 2002), on 25 November 2003, by section 121 of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).
Section 91E(4A): replaced, on 20 May 1999 (applying on and after 20 May 1999), by section 82(8) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
Section 91E(4A): amended (with effect on 1 July 2018), on 18 March 2019, by section 57(4) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 91E(4A): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 91E(4B): inserted, on 18 March 2019, by section 57(5) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 91E(6): inserted, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
Section 91E(6): repealed, on 21 June 2005, by section 141 of the Taxation (Base Maintenance and Miscellaneous Provisions) Act 2005 (2005 No 79).
91EA Effect of a private ruling
(1)
Notwithstanding anything in any other Act, if—
(a)
a private ruling on a taxation law applies to a person in relation to an arrangement and a tax type for an arrangement; and
(b)
the person applies the taxation law for the tax type in the way stated in the ruling,—
the Commissioner must apply the taxation law in relation to the person, the tax type, and the arrangement in accordance with the ruling.
(1A)
Subsection (1) does not apply if a taxpayer has issued the Commissioner with a notice of proposed adjustment to change the effect of a ruling previously applied by the taxpayer.
(1B)
For the purposes of a ruling under section 91CB, the Commissioner must apply the taxation law in relation to the status of a person, item, or matter in accordance with the ruling.
(2)
[Repealed]Section 91EA: inserted (with effect on 1 April 1995), on 10 April 1995, by section 10 of the Tax Administration Amendment Act 1995 (1995 No 24).
Section 91EA(1): amended, on 7 September 2010, by section 155(3) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section 91EA(1)(a): amended, on 7 September 2010, by section 155(1) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section 91EA(1)(b): amended, on 7 September 2010, by section 155(2) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section 91EA(1A): inserted, on 20 May 1999 (applying on and after 20 May 1999), by section 83(1) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
Section 91EA(1B): inserted, on 1 October 2019, by section 58 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 91EA(2): repealed, on 20 May 1999 (applying on and after 20 May 1999), by section 83(2) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
91EB Application of a private ruling
(1)
A private ruling on a taxation law for a tax type applies to a person in relation to an arrangement—
(a)
only if the taxation law is expressly referred to in the ruling; and
(b)
only for the period or tax year for which the ruling applies.
(2)
A private ruling does not apply to a person in relation to a tax type for an arrangement, to the extent to which, in relation to the tax type—
(a)
the arrangement is materially different from the arrangement identified in the ruling; or
(ab)
the circumstances are materially different from the circumstances described in the ruling; or
(b)
there was a material omission or misrepresentation in, or in connection with, the application for the ruling; or
(c)
the private ruling states an assumption that the Commissioner made about a future event or other matter, and the assumption subsequently proves to be materially incorrect; or
(d)
the Commissioner stipulates a condition that is not satisfied.
(3)
For the purposes of subsection (2), a private ruling ceases to apply to the person in relation to an arrangement and a tax type for the arrangement, from the date on which the relevant event described in subsection (2)(a), (b), and (d) occurs unless the ruling expressly provides otherwise.
Section 91EB: inserted (with effect on 1 April 1995), on 10 April 1995, by section 10 of the Tax Administration Amendment Act 1995 (1995 No 24).
Section 91EB(1): amended, on 7 September 2010, by section 156(1) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section 91EB(1)(b): replaced, on 20 May 1999 (applying on and after 20 May 1999), by section 84(1) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
Section 91EB(1)(b): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 91EB(2): amended, on 7 September 2010, by section 156(2) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section 91EB(2)(ab): inserted (with effect on 18 March 2019), on 26 June 2019, by section 101 of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).
Section 91EB(2)(c): replaced, on 2 June 2016, by section 143 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section 91EB(2)(d): inserted, on 20 May 1999 (applying on and after 20 May 1999), by section 84(2) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
Section 91EB(3): inserted, on 18 March 2019, by section 59 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
91EC Applying for a private ruling
(1)
A person, in their own right or on behalf of a person who is yet to come into legal existence, may apply to the Commissioner for a private ruling on how a taxation law applies, or would apply, to—
(a)
the person making the application or the prospective person, as the case may be; and
(b)
an arrangement, whether a single or a recurring arrangement.
(2)
Two or more persons may jointly apply, or a person on behalf of 2 or more persons who are yet to come into legal existence, may apply to the Commissioner for a private ruling on how a taxation law applies, or would apply, to each person and to an arrangement, whether a single or a recurring arrangement.
(3)
An application for a private ruling—
(a)
must be made in the form prescribed by the Commissioner; and
(b)
must comply with the disclosure requirements of section 91ED.
(4)
An applicant for a private ruling may at any time withdraw the application by notice to the Commissioner.
(5)
The withdrawal of an application by a joint applicant for a private ruling shall not be treated as withdrawing the application of the other party or parties to the application unless the Commissioner considers that the withdrawal—
(a)
materially affects the arrangement identified in the application; or
(b)
results in insufficient information in relation to the application being provided to the Commissioner.
Section 91EC: inserted (with effect on 1 April 1995), on 10 April 1995, by section 10 of the Tax Administration Amendment Act 1995 (1995 No 24).
Section 91EC(1): replaced, on 20 May 1999 (applying on and after 20 May 1999), by section 85(1) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
Section 91EC(2): replaced, on 20 May 1999 (applying on and after 20 May 1999), by section 85(2) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
Section 91EC(4): amended, on 2 June 2016, by section 144 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
91ED Disclosure requirements
(1)
An application for a private ruling must—
(a)
identify the applicant; and
(b)
disclose all relevant facts and documents relating to the arrangement for which the ruling is sought; and
(c)
state the taxation laws in respect of which the ruling is sought; and
(d)
state the propositions of law (if any) which are relevant to the issues raised in the application; and
(e)
provide a draft ruling.
(1B)
In the case of an application for a private ruling that relates to how either sections GC 6 to GC 19 or YD 5 of the Income Tax Act 2007 applies, or would apply, the applicant must state in a notice, signed by them and sent to the Commissioner at the same time as the application described in subsection (1), that—
(a)
they have examined the application; and
(b)
to the best of their knowledge and belief, the information disclosed for the application is comprehensive.
(2)
If the Commissioner considers that it would be unreasonable to require the applicant to comply with any of the requirements in paragraphs (c) to (e) of subsection (1), the Commissioner may waive those requirements.
Section 91ED: inserted (with effect on 1 April 1995), on 10 April 1995, by section 10 of the Tax Administration Amendment Act 1995 (1995 No 24).
Section 91ED(1B): inserted, on 2 November 2012, by section 196 of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).
Section 91ED(1B): amended (with effect on 1 July 2018), on 18 March 2019, by section 60 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
91EE Commissioner may request further information
The Commissioner may at any time request further relevant information from an applicant for a private ruling.
Section 91EE: inserted (with effect on 1 April 1995), on 10 April 1995, by section 10 of the Tax Administration Amendment Act 1995 (1995 No 24).
Section 91EE: amended, on 2 June 2016, by section 145 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
91EF Conditions on which private ruling based
(1)
If the Commissioner considers that the correctness of a private ruling would depend on conditions being stipulated about a future event or other matter, the Commissioner may—
(a)
stipulate the conditions on which the Commissioner bases the ruling; or
(b)
decline to make the ruling.
(2)
[Repealed](3)
The Commissioner may stipulate conditions about the answer to a proscribed question, and stipulating the conditions is treated as not determining the proscribed question for the purposes of section 91E(4)(a).
Section 91EF: inserted (with effect on 1 April 1995), on 10 April 1995, by section 10 of the Tax Administration Amendment Act 1995 (1995 No 24).
Section 91EF heading: replaced, on 18 March 2019, by section 61(1) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 91EF(1): amended, on 18 March 2019, by section 61(2) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 91EF(1)(a): replaced, on 18 March 2019, by section 61(3) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 91EF(2): repealed, on 18 March 2019, by section 61(4) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 91EF(3): inserted, on 7 September 2010, by section 157 of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section 91EF(3): amended, on 18 March 2019, by section 61(5)(a) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 91EF(3): amended, on 18 March 2019, by section 61(5)(b) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
91EG Right to consultation
Before the Commissioner makes a private ruling, the Commissioner must give the applicant a reasonable opportunity to be consulted if the content of the proposed ruling differs from that applied for by the applicant.
Section 91EG: inserted (with effect on 1 April 1995), on 10 April 1995, by section 10 of the Tax Administration Amendment Act 1995 (1995 No 24).
Section 91EG: amended, on 2 June 2016, by section 146 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
91EH Content and notification of a private ruling
(1)
A private ruling must state—
(a)
that it is a private ruling made under section 91E; and
(b)
the identity of the person, the taxation law, and the arrangement (which may be identified by reference to the arrangement in the application) to which the ruling applies; and
(c)
how the taxation law applies to the arrangement and to the person; and
(d)
the period or tax year for which the ruling applies; and
(e)
[Repealed](f)
conditions stipulated by the Commissioner.
Anything that does not contain these statements is not a private ruling.
(1B)
[Repealed](2)
The Commissioner shall notify the making of a private ruling by sending a copy of the ruling to the person or persons who applied for it.
Section 91EH: inserted (with effect on 1 April 1995), on 10 April 1995, by section 10 of the Tax Administration Amendment Act 1995 (1995 No 24).
Section 91EH(1): replaced, on 20 May 1999 (applying on and after 20 May 1999), by section 86(1) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
Section 91EH(1)(d): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 91EH(1)(e): repealed, on 18 March 2019, by section 62(1) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 91EH(1B): repealed, on 18 March 2019, by section 62(2) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
91EI Withdrawal of a private ruling
(1)
The Commissioner may at any time withdraw a private ruling by notifying the person to whom the ruling applies that the ruling has been withdrawn.
(2)
The private ruling is withdrawn from the date specified in the notice of withdrawal. That date may not be earlier than the date on which the person could reasonably be expected to receive the notice of withdrawal.
(2A)
A status ruling on a withdrawn private ruling does not apply on and after the date specified in the notice of withdrawal.
(3)
If the Commissioner withdraws a private ruling in relation to an arrangement—
(a)
the ruling does not apply if the arrangement was entered into after the date of withdrawal; but
(b)
the ruling continues to apply, for the remainder of the period or tax year specified in the ruling, if the arrangement was entered into before the date of withdrawal; and
(c)
a status ruling that has been made on the private ruling continues to apply, for the remainder of the period or tax year specified in the private ruling, if the arrangement was entered into before the date of withdrawal.
(4)
If the Commissioner withdraws a private ruling on the status of a person, item, or matter under section 91CB otherwise than in relation to an arrangement—
(a)
the ruling continues to apply for the remainder of the period or tax year specified in the ruling; and
(b)
a status ruling that has been made on the private ruling continues to apply, for the remainder of the period or tax year specified in the ruling.
Section 91EI: inserted (with effect on 1 April 1995), on 10 April 1995, by section 10 of the Tax Administration Amendment Act 1995 (1995 No 24).
Section 91EI(1): amended, on 2 June 2016, by section 148 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section 91EI(2A): inserted, on 20 May 1999 (applying on and after 20 May 1999), by section 87(1) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
Section 91EI(3): amended (with effect on 18 March 2019), on 23 March 2020, by section 212(1) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 91EI(3)(b): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 91EI(3)(b): amended, on 20 May 1999 (applying on and after 20 May 1999), by section 87(2) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
Section 91EI(3)(b): amended, on 20 May 1999 (applying on and after 20 May 1999), by section 87(3) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
Section 91EI(3)(c): inserted, on 20 May 1999 (applying on and after 20 May 1999), by section 87(3) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
Section 91EI(3)(c): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 91EI(4): inserted (with effect on 18 March 2019), on 23 March 2020, by section 212(2) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
91EJ Treatment of information
(1)
Information supplied to the Commissioner by the applicant for a private ruling is the factual basis on which the Commissioner makes a private ruling.
(2)
Despite subsection (1), the Commissioner,—
(a)
as part of the process of making a private ruling, may, but does not have to, inquire into the correctness or existence of the facts contained in the information supplied before making the private ruling:
(b)
is not stopped by the process of making the private ruling or by the use of the information as the basis of the private ruling from denying, outside the process of making the ruling or subsequent to making the ruling, the correctness or existence of the facts contained in the information supplied.
Section 91EJ: replaced, on 7 September 2010, by section 159 of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Short-process rulings
Heading: inserted, on 1 October 2019, by section 63 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
91EK Commissioner may make short-process rulings
(1)
The Commissioner may make a short-process ruling on how a taxation law applies, or would apply, to a person in relation to their particular circumstances.
(2)
The Commissioner may decline to make a short-process ruling if it is considered that the question asked, because of its nature or in the circumstances set out in the application, make it inappropriate for a response under a shortened process, for example, when an application—
(a)
raises an issue involving an apparent gap or deficiency in policy settings:
(b)
is directly in opposition to an existing policy of the Commissioner or technical position taken by the Commissioner:
(c)
raises an issue that has, or would have, significant implications or wide effect as a precedent:
(d)
fails to provide sufficient information:
(e)
raises a question that is better answered by the Commissioner through another process.
(3)
The Commissioner may also decline to make a short-process ruling for a reason set out in section 91E(3), (3B), (4), and (4A).
Section 91EK: inserted, on 1 October 2019, by section 63 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
91EL Applying for short-process ruling
(1)
A person who meets the requirements of subsection (3) may apply, in their own right or on behalf of a person who is yet to come into legal existence, to the Commissioner for a short-process ruling on how a taxation law applies, or would apply, to the person in relation to a particular set of circumstances and a tax type to which the circumstances relate.
(2)
Two or more persons may apply jointly for a short-process ruling under subsection (1).
(3)
The requirements are—
(a)
the person’s annual gross income for the tax year before that in which the application is made is $20,000,000 or less; and
(b)
the person is seeking the ruling on a matter concerning a tax (other than provisional tax), duty, or levy that is expected to amount to less than $1,000,000.
(4)
For the purposes of subsection (3)(a),—
(a)
if the person applying is part of a group of companies, the group must meet the threshold requirement:
(b)
if persons apply jointly for a short-process ruling, each person must meet the threshold requirement:
(c)
if a person applies for a short-process ruling on behalf of another person, the other person must meet the threshold requirement:
(d)
if the person applying is not yet in legal existence, the person must have a reasonable expectation of meeting the threshold requirement for the tax year to which the ruling relates.
(5)
For the purposes of subsection (3)(b), if the expected amount is unknown, the person must state this fact in the application, and the Commissioner may then consider under section 91EK(2) whether a short-process ruling is appropriate in the circumstances.
(6)
The application must meet the requirements of section 91EO.
(7)
The person may withdraw the application at any time by notifying the Commissioner.
(8)
The amounts specified in subsection (3)(a) and (b) may be varied from time to time by the Governor-General by Order in Council.
(9)
An order under subsection (8) is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).
| Legislation Act 2019 requirements for secondary legislation made under this section | ||||
| Publication | PCO must publish it on the legislation website and notify it in the Gazette | LA19 s 69(1)(c) | ||
| Presentation | The Minister must present it to the House of Representatives | LA19 s 114, Sch 1 cl 32(1)(a) | ||
| Disallowance | It may be disallowed by the House of Representatives | LA19 ss 115, 116 | ||
| This note is not part of the Act. | ||||
Section 91EL: inserted, on 1 October 2019, by section 63 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 91EL(9): inserted, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
91EM Effect of short-process ruling
(1)
This section applies, despite anything in another Act, when—
(a)
a short-process ruling on a taxation law applies to a person in relation to a particular set of circumstances and a tax type to which the circumstances relate; and
(b)
the person applies the taxation law for the tax type in the way stated in the ruling.
(2)
The Commissioner must apply the taxation law in relation to the person, the particular circumstances, and the tax type as provided in the ruling.
(3)
Subsection (2) does not apply if a person has issued the Commissioner with a notice of proposed adjustment to change the effect of a ruling that the person has previously applied.
Section 91EM: inserted, on 1 October 2019, by section 63 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
91EN Application of short-process ruling
(1)
A short-process ruling on a taxation law applies to a person in relation to a particular set of circumstances and a tax type to which the circumstances relate only for—
(a)
the taxation law expressly referred to in the ruling; and
(b)
the period or the tax year for which the ruling applies.
(2)
A short-process ruling does not apply to a person in relation to the particular circumstances and the related tax type to the extent to which—
(a)
the circumstances are materially different to the circumstances described in the ruling; or
(b)
a material omission or misrepresentation was made in connection with the application for the ruling; or
(c)
the ruling is based on an express understanding about a future event or other matter, and the understanding subsequently proves to be materially incorrect; or
(d)
the Commissioner stipulates a condition that is not met.
Section 91EN: inserted, on 1 October 2019, by section 63 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
91EO Disclosure requirements
An application for a short-process ruling must—
(a)
identify the person applying for the ruling; and
(b)
describe the circumstances on which the ruling is sought; and
(c)
disclose all relevant facts and documents relating to the circumstances described; and
(d)
state the general tax outcome in relation to which the ruling is sought.
Section 91EO: inserted, on 1 October 2019, by section 63 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
91EP Commissioner may request further information
The Commissioner may at any time request further relevant information from a person applying for a short-process ruling.
Section 91EP: inserted, on 1 October 2019, by section 63 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
91EQ Conditions on which short-process ruling based
(1)
If the Commissioner considers that the correctness of a short-process ruling would depend on conditions stipulated about a future event or other matter, the Commissioner may—
(a)
state the conditions on which the Commissioner bases the ruling; or
(b)
decline to make the ruling.
(2)
The Commissioner may stipulate conditions about the answer to a proscribed question, and stipulating those conditions is treated as not determining the proscribed question for the purposes of section 91E(4)(a).
Section 91EQ: inserted, on 1 October 2019, by section 63 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
91ER Right to consultation
Before the Commissioner makes a short-process ruling, the Commissioner must give the person applying for the ruling a reasonable opportunity to be consulted if the content of the proposed ruling differs from that for which the application is made.
Section 91ER: inserted, on 1 October 2019, by section 63 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
91ES Content and notification of short-process ruling
(1)
A short-process ruling must state—
(a)
that it is a short-process ruling made under section 91EK; and
(b)
the identity of the person, the taxation law, and the particular set of circumstances to which the ruling applies; and
(c)
how the taxation law applies to the person, the circumstances, and the related tax type; and
(d)
the period or tax year for which the ruling applies; and
(e)
any conditions stipulated by the Commissioner.
(2)
The Commissioner must notify the person who applied for the ruling of the content of the ruling by sending a copy of the ruling to the person.
Section 91ES: inserted, on 1 October 2019, by section 63 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
91ESB Withdrawal of a short-process ruling
(1)
The Commissioner may at any time withdraw a short-process ruling by notifying the person to whom the ruling applies that the ruling has been withdrawn.
(2)
The short-process ruling is withdrawn from the date stated in the notice of withdrawal. That date may not be earlier than the date on which the person could reasonably be expected to receive the notice of withdrawal.
(3)
If the Commissioner withdraws a short-process ruling in relation to an arrangement—
(a)
the ruling does not apply if the arrangement was entered into after the date of withdrawal; but
(b)
the ruling continues to apply, for the remainder of the period or tax year stated in the ruling, if the arrangement was entered into before the date of withdrawal.
(4)
If the Commissioner withdraws a short-process ruling on the status of a person, item, or matter under section 91CB otherwise than in relation to an arrangement the ruling continues to apply for the remainder of the period or tax year stated in the ruling.
Section 91ESB: inserted, on 23 March 2020, by section 213(1) (and see section 213(2) for application) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
91ET Treatment of information
(1)
Information supplied to the Commissioner by the applicant for a short-process ruling is the factual basis on which the Commissioner makes the ruling.
(2)
Despite subsection (1), the Commissioner—
(a)
may, as part of the process of making the ruling, inquire into the correctness or existence of the facts contained in the information supplied before making the ruling:
(b)
is not stopped by the process of making the ruling or by the use of the information as the basis of the ruling from denying, outside the process of making the ruling or after making the ruling, the correctness or existence of the facts contained in the information supplied.
Section 91ET: inserted, on 1 October 2019, by section 63 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Product rulings
Heading: inserted (with effect on 1 April 1995), on 10 April 1995, by section 10 of the Tax Administration Amendment Act 1995 (1995 No 24).
91F Commissioner may make product rulings
(1)
The Commissioner may make a product ruling on how any taxation law applies to a particular arrangement if—
(a)
the Commissioner receives an application for a product ruling on the arrangement; and
(b)
the Commissioner is satisfied that a private ruling cannot be made because it is not practicable to identify the taxpayers who may enter into the arrangement; and
(c)
the characteristics of the taxpayers who may enter into the arrangement would not affect the content of the ruling.
(1B)
The Commissioner may make a product ruling on the status of a person, item, or matter under section 91CB(2) or (3), whether in relation to an arrangement or not.
(2)
The Commissioner may make a product ruling on how a taxation law applies to the arrangement described in an application whether or not reference was made to that taxation law in the application.
(3)
The Commissioner may decline to make a product ruling if—
(a)
the Commissioner considers that the correctness of the ruling would depend on which conditions were stipulated about a future event or other matter; or
(b)
the arrangement on which the ruling is sought, or a separately identifiable part of that arrangement, is substantially the same as an arrangement which is subject to an objection, challenge, or appeal, whether in relation to the applicant or any other person; or
(bb)
the applicant is a promoter who, in the Commissioner’s opinion, did not comply with section 91FD in relation to an earlier binding ruling application; or
(c)
the applicant has outstanding debts relating to earlier binding ruling applications.
(4)
The Commissioner may not make a product ruling if—
(a)
the application for the ruling would require the Commissioner to determine a proscribed question, other than a matter referred to in section 91CB(3); or
(b)
at the time the application is made or at any time before the ruling is issued, the Commissioner considers that the person to whom the ruling is to apply is not seriously contemplating the arrangement for which the ruling is sought; or
(c)
the application is frivolous or vexatious; or
(d)
the matter on which the ruling is sought is being dealt with, or in the Commissioner’s opinion should be dealt with, by one or both competent authorities of the parties to a double tax agreement; or
(e)
a product ruling already exists on how the taxation law applies to the arrangement, and the proposed ruling would apply to a period or tax year to which the existing ruling applies; or
(f)
in the Commissioner’s opinion the applicant has not provided sufficient information in relation to the application after the Commissioner has requested further information; or
(g)
in the Commissioner’s opinion it would be unreasonable to make a ruling in view of the resources available to the Commissioner; or
(h)
the application for the ruling would require the Commissioner to form an opinion as to a generally accepted accounting practice.
Section 91F: inserted (with effect on 1 April 1995), on 10 April 1995, by section 10 of the Tax Administration Amendment Act 1995 (1995 No 24).
Section 91F(1B): inserted, on 18 March 2019, by section 64(1) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 91F(3)(a): amended, on 18 March 2019, by section 64(2) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 91F(3)(b): replaced, on 7 September 2010, by section 160(1) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section 91F(3)(bb): inserted, on 7 September 2010, by section 160(1) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section 91F(3)(c): inserted, on 20 May 1999 (applying on and after 20 May 1999), by section 89(1) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
Section 91F(4)(a): amended, on 18 March 2019, by section 64(3) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 91F(4)(b): replaced, on 20 May 1999 (applying on and after 20 May 1999), by section 89(2) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
Section 91F(4)(d): replaced, on 23 September 1997, by section 76(3) of the Taxation (Remedial Provisions) Act 1997 (1997 No 74).
Section 91F(4)(e): replaced, on 20 May 1999 (applying on and after 20 May 1999), by section 89(3) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
Section 91F(4)(e): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 91F(4)(g): amended, on 26 November 1998, by section 30 of the Taxation (Tax Credits, Trading Stock, and Other Remedial Matters) Act 1998 (1998 No 107).
Section 91F(4)(h): inserted, on 26 November 1998, by section 30 of the Taxation (Tax Credits, Trading Stock, and Other Remedial Matters) Act 1998 (1998 No 107).
Section 91F(4)(h): amended, on 7 September 2010, by section 160(3) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section 91F(4)(h): amended (with effect on 17 October 2002), on 25 November 2003, by section 122 of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).
91FA Effect of a product ruling
(1)
Notwithstanding anything in any other Act, if—
(a)
a product ruling on a taxation law applies to an arrangement and a tax type for an arrangement; and
(b)
a person who enters into the arrangement applies the taxation law for the tax type in the way stated in the ruling,—
the Commissioner must apply the taxation law in relation to the person, the tax type, and the arrangement in accordance with the ruling.
(1A)
Subsection (1) does not apply if a taxpayer has issued the Commissioner with a notice of proposed adjustment to change the effect of a ruling previously applied by the taxpayer.
(2)
[Repealed]Section 91FA: inserted (with effect on 1 April 1995), on 10 April 1995, by section 10 of the Tax Administration Amendment Act 1995 (1995 No 24).
Section 91FA(1): amended, on 7 September 2010, by section 161(3) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section 91FA(1)(a): amended, on 7 September 2010, by section 161(1) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section 91FA(1)(b): amended, on 7 September 2010, by section 161(2) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section 91FA(1A): inserted, on 20 May 1999 (applying on and after 20 May 1999), by section 90(1) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
Section 91FA(2): repealed, on 20 May 1999 (applying on and after 20 May 1999), by section 90(2) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
91FB Application of a product ruling
(1)
A product ruling on a taxation law for a tax type applies, whether in relation to an arrangement or otherwise,—
(a)
only if the taxation law is expressly referred to in the ruling; and
(b)
only for the period or tax year for which the ruling applies.
(2)
A product ruling does not apply to a tax type, whether in relation to an arrangement or otherwise, to the extent to which, in relation to the tax type—
(a)
the arrangement is materially different from the arrangement identified in the ruling; or
(b)
there was a material omission or misrepresentation in, or in connection with, the application for the ruling; or
(c)
the product ruling states an assumption that the Commissioner made about a future event or other matter, and the assumption subsequently proves to be materially incorrect; or
(d)
the Commissioner stipulates a condition that is not satisfied.
(3)
For the purposes of subsection (2), a product ruling ceases to apply to the person in relation to an arrangement and a tax type for the arrangement, from the date on which the relevant event described in subsection (2)(a), (b), and (d) occurs unless the ruling expressly provides otherwise.
Section 91FB: inserted (with effect on 1 April 1995), on 10 April 1995, by section 10 of the Tax Administration Amendment Act 1995 (1995 No 24).
Section 91FB(1): amended, on 18 March 2019, by section 65(1) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 91FB(1): amended, on 7 September 2010, by section 162(1) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section 91FB(1)(b): replaced, on 20 May 1999 (applying on and after 20 May 1999), by section 91(1) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
Section 91FB(1)(b): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 91FB(2): amended, on 18 March 2019, by section 65(2) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 91FB(2): amended, on 7 September 2010, by section 162(2) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section 91FB(2)(c): replaced, on 2 June 2016, by section 149 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section 91FB(2)(d): inserted, on 20 May 1999 (applying on and after 20 May 1999), by section 91(2) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
Section 91FB(3): inserted, on 18 March 2019, by section 65(3) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
91FC Applying for a product ruling
(1)
A person, in their own right or on behalf of a person who is yet to come into legal existence, may apply to the Commissioner for a product ruling on how a taxation law applies, or would apply—
(a)
to an arrangement; or
(b)
to the consumer of the product that is the subject of the ruling, and to the arrangement; or
(c)
to the person.
(1A)
A person making an application under subsection (1) or a prospective person, as the case may be, must intend to be a party to the proposed arrangement or a promoter of the proposed arrangement.
(1B)
For the purpose of subsection (1)(b), a consumer is a party to the arrangement who is not the applicant.
(2)
An application for a product ruling—
(a)
must be made in the form prescribed by the Commissioner; and
(b)
must comply with the disclosure requirements of section 91FD.
(3)
An applicant for a product ruling may at any time withdraw the application by notice to the Commissioner.
Section 91FC: inserted (with effect on 1 April 1995), on 10 April 1995, by section 10 of the Tax Administration Amendment Act 1995 (1995 No 24).
Section 91FC(1): replaced, on 20 May 1999 (applying on and after 20 May 1999), by section 92(1) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
Section 91FC(1)(b): amended, on 18 March 2019, by section 66 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 91FC(1)(c): inserted, on 18 March 2019, by section 66 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 91FC(1A): inserted, on 20 May 1999 (applying on and after 20 May 1999), by section 92(1) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
Section 91FC(1A): amended, on 7 September 2010, by section 163 of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section 91FC(1B): inserted, on 20 May 1999 (applying on and after 20 May 1999), by section 92(1) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
Section 91FC(3): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
91FD Disclosure requirements
(1)
An application for a product ruling must—
(a)
identify the applicant; and
(b)
disclose all relevant facts and documents relating to the arrangement for which the ruling is sought; and
(bb)
if the person making the application is the promoter of the arrangement, make a statutory declaration that paragraph (b) has been complied with and that all relevant facts are correct; and
(c)
explain—
(i)
why it is not practicable to seek a private ruling; and
(ii)
why the characteristics of the taxpayers who may enter into the arrangement are not relevant to the content of the ruling; and
(d)
state the taxation laws in respect of which the ruling is sought; and
(e)
state the propositions of law (if any) which are relevant to the issues raised in the application; and
(f)
provide a draft ruling.
(2)
If the Commissioner considers that it would be unreasonable to require the applicant to comply with any of the requirements in paragraphs (d) to (f) of subsection (1), the Commissioner may waive those requirements.
Section 91FD: inserted (with effect on 1 April 1995), on 10 April 1995, by section 10 of the Tax Administration Amendment Act 1995 (1995 No 24).
Section 91FD(1)(bb): inserted, on 7 September 2010, by section 164 of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section 91FD(1)(bb): amended (with effect on 7 September 2010), on 29 March 2018, by section 339 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
91FE Commissioner may request further information
The Commissioner may at any time request further relevant information from an applicant for a product ruling.
Section 91FE: inserted (with effect on 1 April 1995), on 10 April 1995, by section 10 of the Tax Administration Amendment Act 1995 (1995 No 24).
Section 91FE: amended, on 2 June 2016, by section 150 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
91FF Conditions on which product ruling based
(1)
If the Commissioner considers that the correctness of a product ruling would depend on conditions being stipulated about a future event or other matter, the Commissioner may—
(a)
stipulate the conditions on which the Commissioner bases the ruling; or
(b)
decline to make the ruling.
(2)
[Repealed](3)
The Commissioner may stipulate conditions about the answer to a proscribed question other than a matter referred to in section 91CB(3), and stipulating those conditions is treated as not determining the proscribed question for the purposes of section 91F(4)(a).
Section 91FF: inserted (with effect on 1 April 1995), on 10 April 1995, by section 10 of the Tax Administration Amendment Act 1995 (1995 No 24).
Section 91FF heading: replaced, on 18 March 2019, by section 67(1) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 91FF(1): amended, on 18 March 2019, by section 67(2) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 91FF(1)(a): replaced, on 18 March 2019, by section 67(3) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 91FF(2): repealed, on 18 March 2019, by section 67(4) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 91FF(3): replaced, on 18 March 2019, by section 67(5) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
91FG Right to consultation
Before the Commissioner makes a product ruling, the Commissioner must give the applicant a reasonable opportunity to be consulted if the content of the proposed ruling differs from that applied for by the applicant.
Section 91FG: inserted (with effect on 1 April 1995), on 10 April 1995, by section 10 of the Tax Administration Amendment Act 1995 (1995 No 24).
Section 91FG: amended, on 2 June 2016, by section 151 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
91FH Content and notification of a product ruling
(1)
A product ruling must state—
(a)
that it is a product ruling made under section 91F; and
(b)
the name of the person who applied for the ruling; and
(c)
the taxation law and the arrangement to which the ruling applies; and
(d)
how the taxation law applies to the arrangement; and
(e)
the period or tax year for which the ruling applies; and
(f)
[Repealed](g)
conditions stipulated by the Commissioner.
Anything that does not contain these statements is not a product ruling.
(1B)
[Repealed](2)
The Commissioner must send a copy of the ruling to the applicant as soon as practicable after the date on which the ruling is made.
(3)
Unless the applicant applies for earlier publication, the Commissioner cannot publish a product ruling until 2 months have passed after the date the ruling is made.
(4)
If the applicant applies for earlier publication, the Commissioner must—
(a)
notify the making of the product ruling by notice in a publication chosen by the Commissioner; and
(b)
publish the product ruling in a publication of the department as soon as possible.
(5)
After the 2-month period has ended, the Commissioner must—
(a)
notify the making of a product ruling by notice in a publication chosen by the Commissioner; and
(b)
publish each product ruling, in full, in a publication of the department.
(6)
A taxpayer, other than the applicant, cannot obtain a copy of a product ruling before it is published by the Commissioner.
Section 91FH: replaced, on 20 May 1999 (applying on and after 20 May 1999), by section 93(1) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
Section 91FH(1)(e): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 91FH(1)(f): repealed, on 18 March 2019, by section 68(1) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 91FH(1B): repealed, on 18 March 2019, by section 68(2) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 91FH(3): amended, on 2 June 2016, by section 152(2) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section 91FH(4): amended, on 2 June 2016, by section 152(3) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section 91FH(4)(a): amended, on 7 September 2010, by section 166(2) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section 91FH(5)(a): amended, on 7 September 2010, by section 166(3) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
91FI Extension of a product ruling
[Repealed]Section 91FI: repealed, on 20 May 1999 (applying on and after 20 May 1999), by section 94(1) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
91FJ Withdrawal of a product ruling
(1)
The Commissioner may at any time withdraw a product ruling.
(2)
The Commissioner must notify the withdrawal by giving adequate notice in a publication chosen by the Commissioner.
(3)
A product ruling is withdrawn on the date stated in the notice of withdrawal. The date cannot be before the date on which notice is given under subsection (2).
(3A)
A status ruling on a withdrawn product ruling does not apply on and after the date specified in the notice of withdrawal.
(4)
If the Commissioner withdraws a product ruling in relation to an arrangement—
(a)
the ruling does not apply to an arrangement entered into after the date of withdrawal; but
(b)
the ruling continues to apply, for the remainder of the period or tax year specified in the ruling, to any arrangement to which it previously applied that was entered into before the date of withdrawal; and
(c)
a status ruling that has been made on the product ruling continues to apply, for the remainder of the period or tax year specified in the product ruling, if the arrangement to which it previously applied was entered into before the date of withdrawal.
(4B)
If the Commissioner withdraws a product ruling on the status of an item or matter under section 91CB otherwise than in relation to an arrangement—
(a)
the ruling continues to apply for the remainder of the period or tax year specified in the ruling; and
(b)
a status ruling that has been made on the product ruling continues to apply, for the remainder of the period or tax year specified in the ruling.
(5)
A notice of withdrawal must specify—
(a)
that it is a withdrawal of a product ruling under this section; and
(b)
the ruling that is being withdrawn; and
(c)
the original period or tax year for which the ruling applied; and
(ca)
any status ruling that applied to the product ruling; and
(cb)
that the status ruling is also being withdrawn; and
(d)
the date of the withdrawal.
Anything that does not contain these statements is not a notice of withdrawal of a product ruling.
(6)
The Commissioner shall also give notice of the withdrawal to the person who applied for the product ruling.
Section 91FJ: inserted (with effect on 1 April 1995), on 10 April 1995, by section 10 of the Tax Administration Amendment Act 1995 (1995 No 24).
Section 91FJ(2): replaced, on 20 May 1999 (applying on and after 20 May 1999), by section 95(1) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
Section 91FJ(2): amended, on 7 September 2010, by section 167 of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section 91FJ(3): replaced, on 20 May 1999 (applying on and after 20 May 1999), by section 95(2) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
Section 91FJ(3A): inserted, on 20 May 1999 (applying on and after 20 May 1999), by section 95(2) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
Section 91FJ(4): amended (with effect on 18 March 2019), on 23 March 2020, by section 214(1) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 91FJ(4)(b): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 91FJ(4)(b): amended, on 20 May 1999 (applying on and after 20 May 1999), by section 95(3) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
Section 91FJ(4)(b): amended, on 20 May 1999 (applying on and after 20 May 1999), by section 95(4) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
Section 91FJ(4)(c): inserted, on 20 May 1999 (applying on and after 20 May 1999), by section 95(4) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
Section 91FJ(4)(c): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 91FJ(4B): inserted (with effect on 18 March 2019), on 23 March 2020, by section 214(2) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 91FJ(5)(c): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 91FJ(5)(c): amended, on 20 May 1999 (applying on and after 20 May 1999), by section 95(5) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
Section 91FJ(5)(ca): inserted, on 20 May 1999 (applying on and after 20 May 1999), by section 95(6) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
Section 91FJ(5)(cb): inserted, on 20 May 1999 (applying on and after 20 May 1999), by section 95(6) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
Section 91FJ(6): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
91FK Treatment of information
(1)
Information supplied to the Commissioner by the applicant for a product ruling is the basis on which the Commissioner makes a product ruling.
(2)
Despite subsection (1), the Commissioner,—
(a)
as part of the process of making a product ruling, may, but does not have to, inquire into the existence or correctness of facts contained in the information supplied before making the product ruling:
(b)
is not stopped by the process of making the product ruling or by the use of the information as the basis of the product ruling from inquiring, outside the process of making the ruling or subsequent to making the ruling, into the existence or correctness of facts contained in the information supplied.
Section 91FK: inserted, on 7 September 2010, by section 168 of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Rulings generally
Heading: inserted (with effect on 1 April 1995), on 10 April 1995, by section 10 of the Tax Administration Amendment Act 1995 (1995 No 24).
91G Effect of legislative change on binding ruling
A binding ruling does not apply from the date a taxation law is repealed or amended to the extent that the repeal or amendment changes the way the taxation law applies in the ruling. For a limited purpose and period, section 100(2) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 overrides this section.
Section 91G: replaced, on 20 May 1999 (applying on and after 20 May 1999), by section 96(1) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
Section 91G: amended, on 1 April 2019, by section 340 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
91GA Applying for ruling on effect of change in legislation
(1)
A person who applied for a private ruling made under section 91E, may apply to the Commissioner for a ruling on whether the amendment or repeal of a taxation law that is stated as applying in the private ruling has changed the way that the law applies in the ruling.
(2)
A person who applied for a product ruling made under section 91F, may apply to the Commissioner for a ruling on whether the amendment or repeal of a taxation law that is stated as applying in the product ruling has changed the way that the law applies in the ruling.
(3)
A ruling made under subsection (1) or (2) is a status ruling.
(4)
For a limited purpose and period, section 100(2) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 overrides this section.
Section 91GA: inserted, on 20 May 1999 (applying on and after 20 May 1999), by section 97(1) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
Section 91GA(4): inserted, on 1 April 2019, by section 341 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
91GB Commissioner to make status rulings on application
(1)
The Commissioner must make a status ruling on whether the amendment or repeal of a taxation law that is stated as applying in a private or a product ruling has changed the way that the law applies in the ruling.
(2)
The Commissioner may make a status ruling on whether the amendment or repeal of a taxation law has changed the way that the law applies in a private or a product ruling whether or not reference was made to that taxation law in the application.
(3)
The Commissioner may not make a status ruling if—
(a)
the application is frivolous or vexatious; or
(b)
the Commissioner considers that the correctness of a private or product ruling would depend on an understanding about a future event or other matter; or
(c)
the Commissioner considers that it would be unreasonable to make a ruling in view of the resources available to the Commissioner.
Section 91GB: inserted, on 20 May 1999 (applying on and after 20 May 1999), by section 97(1) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
Section 91GB heading: amended, on 2 June 2016, by section 153 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section 91GB(3)(b): replaced, on 18 March 2019, by section 69 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
91GC Requirements for status ruling applications
(1)
An application for a status ruling must be made in the form prescribed by the Commissioner and must—
(a)
identify the applicant; and
(b)
identify the private or product ruling on which the status ruling is sought; and
(c)
state the taxation laws that are stated as applying in the private or product ruling that have been amended or repealed; and
(d)
state any propositions of law that are relevant to the issues raised in the application; and
(e)
provide a draft ruling.
(2)
If the Commissioner considers that it would be unreasonable to require the applicant to comply with any of the requirements in subsection (1)(d) or (1)(e), the Commissioner may waive those requirements.
Section 91GC: inserted, on 20 May 1999 (applying on and after 20 May 1999), by section 97(1) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
91GD Commissioner may request further information
The Commissioner may at any time request further relevant information from an applicant for a status ruling.
Section 91GD: inserted, on 20 May 1999 (applying on and after 20 May 1999), by section 97(1) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
Section 91GD: amended, on 2 June 2016, by section 154 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
91GE Right to consultation
Before the Commissioner makes a status ruling, the Commissioner must give the applicant a reasonable opportunity to be consulted if the content of the proposed ruling differs from that applied for by the applicant.
Section 91GE: inserted, on 20 May 1999 (applying on and after 20 May 1999), by section 97(1) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
Section 91GE: amended, on 2 June 2016, by section 155 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
91GF Content of status ruling
A status ruling must identify the private or product ruling on which it is a ruling and state—
(a)
that it is a status ruling made under section 91GA; and
(b)
whether the amendment or repeal of a taxation law has changed the way that the law applies in the ruling.
Anything that does not contain these statements is not a status ruling.
Section 91GF: inserted, on 20 May 1999 (applying on and after 20 May 1999), by section 97(1) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
91GG Notification of status ruling
(1)
The Commissioner must send a copy of a status ruling to the applicant as soon as practicable after the date on which the ruling is made.
(2)
In the case of a status ruling on a product ruling, the Commissioner must also—
(a)
notify the making of a status ruling by notice in a publication chosen by the Commissioner; and
(b)
publish the status ruling in a publication of the department.
(3)
The Commissioner must notify the making of and publish a status ruling as soon as possible but not before the 2-month period specified in section 91FH(3) has passed, unless the applicant has applied for earlier publication of their product ruling under that section.
Section 91GG: inserted, on 20 May 1999 (applying on and after 20 May 1999), by section 97(1) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
Section 91GG(2)(a): amended, on 2 June 2016, by section 156(1) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section 91GG(3): amended, on 2 June 2016, by section 156(2) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
91GH Effect of status ruling
If a person applies a taxation law in accordance with a status ruling, the Commissioner must also apply the taxation law in accordance with the status ruling.
Section 91GH: inserted, on 20 May 1999 (applying on and after 20 May 1999), by section 97(1) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
91GI Effect of minor error on binding ruling
(1)
The Commissioner does not have to withdraw and reissue a new ruling to correct a typographical or a minor error if the correction does not change the meaning of the ruling.
(2)
A ruling that is not withdrawn and reissued remains valid.
Section 91GI: inserted, on 20 May 1999 (applying on and after 20 May 1999), by section 97(1) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
91H Applications for rulings not to affect obligations and powers
The fact that there has been an application for a private ruling or a product ruling does not affect a person’s obligation to provide any return, make any payment, or do any other act, or the Commissioner’s power to make or amend any assessment.
Section 91H: inserted (with effect on 1 April 1995), on 10 April 1995, by section 10 of the Tax Administration Amendment Act 1995 (1995 No 24).
91I Regulations
(1)
The Governor-General may from time to time, by Order in Council, make regulations prescribing or providing for the fixing of fees payable in respect of applications for private, product and status rulings.
(2)
Any such regulations may—
(a)
specify the persons by whom any fees are payable:
(b)
prescribe specific fees for specific work or services:
(c)
prescribe a scale of fees or a rate based on the time involved in carrying out the work or services:
(d)
allow the Commissioner to waive, in whole or in part, any fees that are payable.
(3)
Regulations under this section are secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).
| Legislation Act 2019 requirements for secondary legislation made under this section | ||||
| Publication | PCO must publish it on the legislation website and notify it in the Gazette | LA19 s 69(1)(c) | ||
| Presentation | The Minister must present it to the House of Representatives | LA19 s 114, Sch 1 cl 32(1)(a) | ||
| Disallowance | It may be disallowed by the House of Representatives | LA19 ss 115, 116 | ||
| This note is not part of the Act. | ||||
Section 91I: inserted (with effect on 1 April 1995), on 10 April 1995, by section 10 of the Tax Administration Amendment Act 1995 (1995 No 24).
Section 91I(1): amended, on 20 May 1999 (applying on and after 20 May 1999), by section 98(1) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
Section 91I(2)(c): amended, on 20 May 1999 (applying on and after 1 April 1995), by section 98(2) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
Section 91I(2)(d): inserted, on 20 May 1999 (applying on and after 1 April 1995), by section 98(2) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
Section 91I(3): inserted, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
91J Commissioner may not issue ruling to applicant with outstanding debts
(1)
The Commissioner may refuse to issue a private, a product, or a status ruling to an applicant with an outstanding debt that relates to an earlier binding ruling application.
(2)
An applicant has an outstanding debt if she or he has not paid, on or before 60 days after the date stated in an invoice sent by Inland Revenue, the amount stated in the invoice.
(3)
This section applies only to an outstanding debt that first arises on or after 1 June 1999.
Section 91J: inserted, on 20 May 1999 (applying on and after 20 May 1999), by section 99(1) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
Part 6 Assessments
92 Taxpayer assessment of income tax
(1)
A taxpayer who is required to furnish a return of income for a tax year must make an assessment of the taxpayer’s taxable income and income tax liability and, if applicable for the tax year, the net loss, terminal tax or refund due.
(2)
An assessment under this section is made on the date on which the taxpayer’s return of income is received at an office of the department.
(2B)
For the purposes of subsections (1) and (2), an assessment of a taxpayer who is an individual to whom Part 3, subpart 3B applies is treated as made under section 22I(1)(b) on the relevant date set out in section 22I(2).
(3)
[Repealed](4)
[Repealed](5)
[Repealed](6)
This section does not apply to a taxpayer—
(a)
in respect of whom the Commissioner has made an assessment; and
(b)
for the tax year to which the assessment relates.
(7)
The nominated company for a consolidated group is treated as a taxpayer for the purposes of this section. A company that is part of a consolidated group in a tax year must not make a separate assessment for a tax year, but this restriction applies only to a tax year, or part of a tax year, in which the company is part of the group.
Section 92: replaced, on 24 October 2001 (applying to 2002–03 and subsequent income years), by section 208(1) of the Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 (2001 No 85).
Section 92 heading: replaced, on 1 October 2004 (applying for 2004–05 and subsequent income years), by section 112(1) of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).
Section 92(1): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 92(2): replaced, on 1 October 2004 (applying for 2004–05 and subsequent income years), by section 112(2) of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).
Section 92(2B): inserted, on 1 April 2019, by section 70(1) (and see section 70(2) for application) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 92(3): repealed, on 1 October 2004 (applying for 2004–05 and subsequent income years), by section 112(3) of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).
Section 92(4): repealed, on 1 October 2005 (applying for 2005–06 and later tax years), by section 142(1) of the Taxation (Base Maintenance and Miscellaneous Provisions) Act 2005 (2005 No 79).
Section 92(5): repealed, on 1 April 2016 (applying for the 2016–17 tax year, or earlier tax year given by Order in Council, and later tax years), by section 197(1) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).
Section 92(6)(b): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 92(7): inserted, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
92AAA Determination on cost of timber
[Repealed]Section 92AAA: repealed (with effect on 1 April 2015 and applying for 2015-16 and later income years), on 24 February 2016, by section 260 of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
92AA Assessment for tax credits under Part M of Income Tax Act 2007
[Repealed]Section 92AA: repealed, on 1 April 2016 (applying for the 2016–17 tax year, or earlier tax year given by Order in Council, and later tax years), by section 198(1) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).
92AB Assessments of liabilities of shareholders of qualifying companies
(1)
The Commissioner may assess the liability of a shareholder who has agreed under section HA 8 of the Income Tax Act 2007 to be personally liable for their share of the income tax payable by a qualifying company.
(2)
A person assessed under subsection (1) is liable as agent for the company.
(3)
The Commissioner may reduce a person’s agreed liability if, in the relevant income year,—
(a)
they first acquire shares in the company; or
(b)
they dispose of all their shares in the company.
(4)
To reduce a person’s liability under subsection (3),—
(a)
the Commissioner must be satisfied that the reduction is appropriate; and
(b)
the person must provide adequate accounts and other relevant information to show that the company’s income tax liability attributable to the part of the income year in which they were a shareholder is proportionately smaller than the liability attributable to the full income year.
(5)
An assessment of the company or the person does not prevent an assessment of the other.
Compare: 2004 No 35 s HG 8(1), (2)
Section 92AB: inserted, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
92A Basic rates of income tax
(1)
The Commissioner may for a tax year (whether before or after the passing of the annual taxing Act for that year) assess the income tax of any taxpayer at the basic rates. No such assessment shall be deemed to be invalid on the ground that it is made before the passing of the annual taxing Act.
(2)
If the annual rates for any tax year are higher or lower than the basic rates, the amount of every assessment of income tax made under this section in respect of that year shall be deemed to be increased or reduced accordingly, and every such assessment shall have the same effect as if the amount as so increased or reduced had been specified in the assessment.
Section 92A: inserted, on 26 July 1996 (applying to 1997–98 and subsequent income years), by section 452 of the Taxation (Core Provisions) Act 1996 (1996 No 67).
Section 92A(1): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 92A(1): amended, on 24 October 2001 (applying to 2002–03 and subsequent income years), by section 210(1) of the Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 (2001 No 85).
Section 92A(2): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
92BA Taxpayer assessment of multinational top-up tax
(1)
A taxpayer who is required to provide a multinational top-up tax return for a fiscal year must make an assessment of the amount of multinational top-up tax payable by the taxpayer for the fiscal year.
(2)
An assessment under this section is made on the date on which the taxpayer’s multinational top-up tax return is received at an office of the department.
(3)
This section does not apply to a taxpayer for a fiscal year if the Commissioner has made an assessment of the multinational top-up tax payable by the taxpayer for the fiscal year.
Section 92BA: inserted, on 1 January 2025, by section 146 of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
92B Taxpayer assessment of GST
(1)
A taxpayer who is required under the Goods and Services Tax Act 1985 to provide a GST tax return for a GST return period must make an assessment of the amount of GST payable by the taxpayer for the return period.
(2)
An assessment under this section is made on the date on which the taxpayer’s GST tax return is received at an office of the department.
(3)
This section does not apply to a taxpayer for a GST return period if the Commissioner has made an assessment of the GST payable by the taxpayer for the return period.
Section 92B: inserted, on 21 December 2004 (applying for GST return periods beginning on or after 1 April 2005), by section 113(1) of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).
93 Assessment of FBT
(1)
The Commissioner may, in respect of any person who is chargeable with FBT in respect of any quarter or any income year, make an assessment of the amount of FBT which, in the Commissioner’s judgment, ought to be imposed, and that person shall be liable to pay the FBT so assessed, except so far as the person establishes in proceedings challenging the assessment that the assessment is excessive or that the person is not chargeable with FBT.
(2)
Sections 109, 111, and 113 shall apply, so far as may be, with respect to every assessment made under this section as if—
(a)
the term tax already assessed in section 113 included FBT already assessed under this section; and
(b)
the term taxpayer in sections 111 and 113 included a person who is chargeable with FBT.
(3)
An assessment made under this section shall be subject to challenge in the same manner as an assessment of income tax imposed under section BB 1 of the Income Tax Act 2007, and Part 8A of this Act shall apply accordingly.
Compare: 1976 No 65 s 336V
Section 93 heading: amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 93(1): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 93(1): amended (with effect on 1 April 2005), on 3 April 2006 (applying for income years corresponding to 2005–06 and subsequent tax years), by section 240(1) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).
Section 93(1): amended, on 1 October 1996, by section 15(1) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 93(1): amended, on 26 July 1996 (applying to 1997–98 and subsequent income years), by section 483(3) of the Taxation (Core Provisions) Act 1996 (1996 No 67).
Section 93(2)(a): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 93(2)(b): amended (with effect on 1 October 1996), on 30 June 2014, by section 159 of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).
Section 93(2)(b): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 93(3): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 93(3): amended, on 1 October 1996, by section 15(2)(a) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 93(3): amended, on 1 October 1996, by section 15(2)(b) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 93(3): amended, on 26 July 1996 (applying to 1997–98 and subsequent income years), by section 483(3) of the Taxation (Core Provisions) Act 1996 (1996 No 67).
93B Trustee income: Commissioner’s power to assess
(1)
This section applies when a person—
(a)
fails to disclose details of a trust under section 59; or
(b)
fails to provide information that the Commissioner has asked for under section 17 in relation to a trust; or
(c)
is unable to obtain sufficient information to calculate the amount of trustee income in an income year.
(2)
The Commissioner may determine in a fair and reasonable manner the amount of trustee income for the income year.
Compare: 2004 No 35 s HH 7
Section 93B: inserted, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
93C Foreign tax credits: Commissioner’s power to amend assessments
(1)
This section applies when a person is entitled to a tax credit under section LK 1 of the Income Tax Act 2007 and—
(a)
the amount of the credit cannot be determined before the time by which the person must file a return of income for an income year; and
(b)
the person asks the Commissioner for an amended assessment within 4 years after the end of the income year.
(2)
The Commissioner must amend the assessment for the income year to reflect the amount of the credit.
Compare: 2004 No 35 s LC 4(1C)
Section 93C: inserted, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
94 Assessment of qualifying company election tax and additional tax
(1)
The Commissioner may, in respect of any company liable to pay qualifying company election tax under section HA 42 of the Income Tax Act 2007, make an assessment of the amount of qualifying company election tax, and any late payment penalty payable under section 139B of this Act, that, in the Commissioner’s judgment, ought to be imposed, and the company shall be liable to pay the qualifying company election tax and any late payment penalty so assessed, except so far as the company establishes in proceedings challenging the assessment that the assessment is excessive or that the company is not chargeable with qualifying company election tax, or the late payment penalty.
(2)
Sections 108 to 111, 113, and 114 shall apply, so far as may be, with respect to every assessment made under this section as if—
(a)
the term tax already assessed, in section 113, included qualifying company election tax and any late payment penalty already assessed under this section; and
(b)
the term taxpayer, in sections 111 and 113, included a company which is chargeable with qualifying company election tax; and
(c)
the term amount assessed for any year in section 108(1) included an amount assessed under this section, and the term property were substituted for the term income in section 108(2).
(3)
An assessment made under subsection (1) is subject to challenge in the same manner as an assessment of income tax imposed under section BB 1 of the Income Tax Act 2007, and Part 8A of this Act applies accordingly.
Compare: 1976 No 65 s 393L(3), (4), (5)
Section 94(1): replaced, on 1 October 1996, by section 16(1) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 94(1): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 94(1): amended, on 26 July 1996 (applying to 1997–98 and subsequent income years), by section 483(3) of the Taxation (Core Provisions) Act 1996 (1996 No 67).
Section 94(2)(a): amended, on 25 November 2003 (applying to late payment penalties that arise with respect to 1997–98 and subsequent income years), by section 123(1) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).
Section 94(2)(b): amended (with effect on 1 October 1996), on 30 June 2014, by section 160(1) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).
Section 94(2)(c): replaced, on 26 July 1996 (applying to 1997–98 and subsequent income years), by section 453 of the Taxation (Core Provisions) Act 1996 (1996 No 67).
Section 94(2)(c): amended (with effect on 1 October 1996), on 30 June 2014, by section 160(2) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).
Section 94(2)(c): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 94(3): replaced, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
94A Assessment of shortfall penalties
(1)
(2)
The Commissioner must assess a shortfall penalty in the same way as the tax to which it relates, but separately from the tax. However, this subsection does not apply to a penalty under section 141ED.
(3)
The Commissioner may assess a shortfall penalty before or after unpaid tax has been assessed, or has become assessable or payable, or has been paid.
(4)
If the Commissioner assesses a shortfall penalty in respect of unpaid income tax before the passing of the annual taxing Act, the unpaid income tax shall be calculated by reference to the rates determined by the last preceding annual taxing Act.
(5)
Unless a tax law specifically provides otherwise, a payment made by, or an amount applied on behalf of, a taxpayer on account of a shortfall penalty does not give rise to a credit towards or in respect of any other tax or tax liability.
Section 94A: inserted, on 26 July 1996, by section 17 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 94A(1): amended, on 1 January 2025, by section 147(2) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
Section 94A(1): amended, on 29 March 2024, by section 147(1) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
Section 94A(1): amended, on 1 July 2017, by section 15 of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
Section 94A(2): amended (with effect on 1 April 2008), on 6 October 2009 (applying for a tax position taken on or after 1 April 2008), by section 654(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
94B Liability of wholly-owned group and other bodies to pay shortfall penalties
(1)
If the Commissioner treats the companies in a wholly-owned group as if they were a single taxpayer for the purpose of determining a tax shortfall,—
(a)
the Commissioner may assess one company in the group for the shortfall penalty; but
(b)
all the other companies remain liable to pay the shortfall penalty until it is paid in full.
(2)
All the partners in a partnership, and all the persons in any other group of persons that derive or incur amounts jointly or that are assessed together, are liable individually and collectively for a shortfall penalty imposed by the Commissioner—
(a)
in respect of a tax position taken; or
(b)
as a consequence of how or the way in which a tax position is taken—
by the partnership or the other group of persons, as the case may be.
(3)
For the purposes of subsection (2),—
(a)
where a shortfall penalty is imposed in respect of a partnership, the part of that penalty imposed on each partner shall be in proportion to the partner’s share or interest in the partnership; and
(b)
where a shortfall penalty is imposed in respect of a group of persons (other than a partnership), that penalty shall be imposed in such proportions as the Commissioner determines on any 1 or more of the persons in that group.
Section 94B: inserted, on 26 July 1996, by section 17 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 94B(2): amended, on 26 July 1996 (applying to 1997–98 and subsequent income years), by section 454 of the Taxation (Core Provisions) Act 1996 (1996 No 67).
94BB Assessment of penalty for large multinational group failing to meet country-by-country reporting requirements
(1)
The Commissioner may make an assessment for an ultimate owner of a large multinational group of the amount of a penalty under section 139AAB that, in the Commissioner’s opinion, ought to be imposed, and the ultimate owner is liable to pay the penalty assessed.
(2)
Despite subsection (1), this section does not apply in so far as the ultimate owner establishes in proceedings challenging the assessment that the assessment is excessive or that the ultimate owner is not chargeable with the penalty.
Section 94BB: inserted, on 29 March 2024, by section 148 of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
94BC Assessment of penalty for member of large multinational group failing to provide information
(1)
The Commissioner may make an assessment for a member of a large multinational group of the amount of a penalty under section 139AB that, in the Commissioner’s opinion, ought to be imposed, and the member is liable to pay the penalty assessed.
(2)
Despite subsection (1), this section does not apply in so far as the member establishes in proceedings challenging the assessment that the assessment is excessive or that the member is not chargeable with the penalty.
Section 94BC: inserted, on 29 March 2024, by section 148 of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
94BCB Assessment of penalty for failing to register or provide information for purposes of applied global anti-base erosion rules
(1)
The Commissioner may make an assessment for a taxpayer of the amount of a penalty under section 139ABB that, in the Commissioner’s opinion, ought to be imposed, and the taxpayer is liable to pay the penalty assessed.
(2)
Despite subsection (1), this section does not apply in so far as the taxpayer establishes in proceedings challenging the assessment that the assessment is excessive or that the taxpayer is not chargeable with the penalty.
Section 94BCB: inserted, on 1 January 2025, by section 149 of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
94BD Assessment of penalty for trustee failing to register, or provide information for, foreign exemption trust
(1)
The Commissioner may make an assessment for a trustee of a foreign exemption trust of the amount of a penalty payable under section 139AC that, in the Commissioner’s opinion, ought to be imposed, and the trustee is liable to pay the penalty assessed.
(2)
Despite subsection (1), this section does not apply in so far as the trustee establishes in proceedings challenging the assessment that the assessment is excessive or that the trustee is not chargeable with the penalty.
Section 94BD: inserted, on 29 March 2024, by section 148 of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
94C Assessment of penalties under sections 142H and 142I
(1)
The Commissioner may, for a financial institution having obligations under Part 11B for financial accounts maintained by the financial institution, make an assessment of the amount of a penalty under section 142H that, in the Commissioner’s judgement, ought to be imposed and the financial institution is liable to pay the penalty assessed, except so far as the financial institution establishes in proceedings challenging the assessment that the assessment is excessive or that the financial institution is not chargeable with the penalty.
(2)
The Commissioner may, for a person or entity having obligations under Part 11B for the provision of information relating to a person or entity for a financial account, make an assessment of the amount of a penalty under section 142I that, in the Commissioner’s judgement, ought to be imposed and the person or entity is liable to pay the penalty assessed, except so far as the person or entity establishes in proceedings challenging the assessment that the assessment is excessive or that the person or entity is not chargeable with the penalty.
Section 94C: inserted, on 1 July 2017, by section 16 of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
94D Assessment of penalties related to requirements under model rules
(1)
The Commissioner may make an assessment for a reporting platform operator of the amount of a penalty under section 142J(1) to (5) that, in the Commissioner’s opinion, ought to be imposed, and the operator is liable to pay the penalty assessed.
(2)
The Commissioner may make an assessment for a seller operating on a digital platform of a reporting platform operator of the amount of a penalty under section 142K that, in the Commissioner’s opinion, ought to be imposed, and the seller is liable to pay the penalty assessed.
(3)
Despite subsections (1) and (2), this section does not apply in so far as the operator or seller, as applicable, establishes in proceedings challenging the assessment that the assessment is excessive or that the operator or seller, as applicable, is not chargeable with the penalty.
Section 94D: inserted, on 1 January 2024, by section 191 of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
95 Assessment of withdrawal tax
[Repealed]Section 95: repealed, on 2 June 2016, by section 157 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
96 Assessment of New Zealand superannuitant surcharge
[Repealed]Section 96: repealed, on 20 August 1997 (applying to tax on taxable income for 1998–99 and subsequent income years), by section 15 of the Taxation (Superannuitant Surcharge Abolition) Act 1997 (1997 No 59).
97 Assessment of imputation penalty tax
(1)
The Commissioner may, in respect of any company chargeable with imputation penalty tax, make an assessment of the amount of imputation penalty tax that in the judgment of the Commissioner ought to be imposed on the company.
(2)
The company shall be liable to pay the imputation penalty tax so assessed except in so far as the company establishes in proceedings challenging the assessment that the assessment is excessive or that the company is not chargeable with the imputation penalty tax.
(3)
Sections 109, 111, and 113 shall apply with respect to every assessment under this section as if—
(a)
in sections 111 and 113, the term taxpayer included a company chargeable with imputation penalty tax; and
(b)
in section 113, the term tax already assessed included any imputation penalty tax already assessed under this section.
(4)
An assessment made under this section shall be subject to challenge in the same manner as an assessment of income tax imposed under section BB 1 of the Income Tax Act 2007, and Part 8A of this Act shall apply accordingly.
Compare: 1976 No 65 s 394N(5)–(8)
Section 97(1): amended, on 26 July 1996 (applying to 1997–98 and subsequent income years), by section 483(3) of the Taxation (Core Provisions) Act 1996 (1996 No 67).
Section 97(2): amended, on 1 October 1996, by section 20(1) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 97(3)(a): amended (with effect on 1 October 1996), on 30 June 2014, by section 162 of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).
Section 97(4): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 97(4): amended, on 1 October 1996, by section 20(2)(a) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 97(4): amended, on 1 October 1996, by section 20(2)(b) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 97(4): amended, on 26 July 1996 (applying to 1997–98 and subsequent income years), by section 483(3) of the Taxation (Core Provisions) Act 1996 (1996 No 67).
97B Assessment of Maori authority distribution penalty tax
(1)
The Commissioner may, in respect of a Maori authority chargeable with Maori authority distribution penalty tax, make an assessment of the amount of Maori authority distribution penalty tax that the Commissioner considers should be imposed on the Maori authority.
(2)
The Maori authority is liable to pay the Maori authority distribution penalty tax assessed except to the extent that the Maori authority establishes in proceedings challenging the assessment that the assessment is excessive or that the Maori authority is not chargeable with the Maori authority distribution penalty tax.
(3)
Sections 109, 111 and 113 apply to an assessment made under this section as if—
(a)
the references to taxpayer in sections 111 and 113 included a Maori authority chargeable with Maori authority distribution penalty tax; and
(b)
the reference to tax already assessed in section 113 included Maori authority distribution penalty tax already assessed under this section.
(4)
An assessment made under this section is subject to challenge in the same manner as an assessment of income tax imposed under section BB 1 of the Income Tax Act 2007, and Part 7 of this Act applies accordingly.
Section 97B: inserted, on 26 March 2003 (applying for 2004–05 and subsequent income years), by section 108(1) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
Section 97B(3)(a): amended (with effect on 26 March 2003), on 30 June 2014, by section 163 of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).
Section 97B(4): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
97C Assessment of R&D repayment tax
(1)
The Commissioner may, for a company chargeable with R&D repayment tax, make an assessment of R&D repayment tax that the Commissioner considers should be imposed on the company.
(2)
The company is liable to pay the R&D repayment tax assessed except to the extent to which the company establishes in proceedings challenging the assessment that the assessment is excessive or that the company is not chargeable with the R&D repayment tax.
(3)
Sections 109, 111, and 113 apply to an assessment made under this section as if—
(a)
the references to taxpayer in those sections included a company chargeable with R&D repayment tax; and
(b)
the references to tax already assessed in section 113 included an amount of R&D repayment tax already assessed under this section.
(4)
An assessment made under this section is subject to challenge in the same manner as an assessment of income tax imposed under section BB 1 of the Income Tax Act 2007, and Part 7 of this Act applies accordingly.
Section 97C: inserted (with effect on 1 April 2015), on 24 February 2016, by section 261 of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
98 Assessment of ESCT
(1)
The Commissioner may, in respect of any employer or person who is chargeable with ESCT under section RD 67 of the Income Tax Act 2007, make an assessment of the amount of the employer’s superannuation cash contribution on which, in the Commissioner’s judgment, ESCT ought to be imposed and an assessment of the amount of that tax, and that employer or person shall be liable to pay the tax so assessed except so far as the employer or person establishes in proceedings challenging the assessment that the assessment is excessive or that the employer or person is not chargeable with the tax so assessed.
(2)
Sections 109, 111, and 113 shall apply, so far as may be, with respect to every assessment made under subsection (1) of this section as if—
(a)
in sections 111 and 113, the term taxpayer included a person who is chargeable with ESCT; and
(b)
in section 113, the term tax already assessed included ESCT already assessed under subsection (1) of this section.
(3)
An assessment made under this section shall be subject to challenge in the same manner as an assessment of income tax imposed under section BB 1 of the Income Tax Act 2007, and Part 8A of this Act shall apply accordingly.
Compare: 1976 No 65 s 336ZG
Section 98 heading: amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 98(1): amended (with effect on 1 April 2008), on 2 November 2012, by section 199(a) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).
Section 98(1): amended (with effect on 1 April 2008), on 2 November 2012, by section 199(b) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).
Section 98(1): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 98(1): amended, on 1 October 1996, by section 21(1) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 98(1): amended, on 26 July 1996 (applying to 1997–98 and subsequent income years), by section 483(3) of the Taxation (Core Provisions) Act 1996 (1996 No 67).
Section 98(2)(a): amended (with effect on 1 October 1996), on 30 June 2014, by section 164 of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).
Section 98(2)(a): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 98(2)(b): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 98(3): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 98(3): amended, on 1 October 1996, by section 21(2)(a) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 98(3): amended, on 1 October 1996, by section 21(2)(b) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 98(3): amended, on 26 July 1996 (applying to 1997–98 and subsequent income years), by section 483(3) of the Taxation (Core Provisions) Act 1996 (1996 No 67).
98B Assessment of retirement scheme contribution withholding tax
(1)
The Commissioner may, for any person who is chargeable with RSCT under section RH 2 of the Income Tax Act 2007, make an assessment of the amount of the retirement scheme contribution on which, in the Commissioner’s judgment, RSCT ought to be imposed and an assessment of that tax.
(2)
The person is liable to pay the tax so assessed except to the extent that the person establishes in proceedings challenging the assessment that the assessment is excessive or that the person is not chargeable with the tax assessed.
(3)
Sections 109, 111, and 113 shall apply, so far as may be, with respect to an assessment made under subsection (1) of this section as if—
(a)
in sections 111 and 113, the term taxpayer included a person who is chargeable with RSCT; and
(b)
in section 113, the term tax already assessed included RSCT already assessed under subsection (1) of this section.
(4)
An assessment made under this section shall be subject to challenge in the same manner as an assessment of income tax imposed under section BB 1 of the Income Tax Act 2007, and Part 8A of this Act shall apply accordingly.
Section 98B: inserted (with effect on 1 April 2007), on 19 December 2007, by section 231(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 98B(1): replaced, on 1 April 2008, by section 231(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 98B(3)(a): replaced, on 1 April 2008, by section 231(3) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 98B(3)(a): amended (with effect on 1 April 2007), on 30 June 2014, by section 165 of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).
Section 98B(3)(b): replaced, on 1 April 2008, by section 231(3) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 98B(4): amended, on 1 April 2008, by section 231(4) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
99 Assessment of RWT
(1)
The Commissioner may make an assessment of any amount that, in the Commissioner’s opinion, any person is liable to account for or pay to the Commissioner under the RWT rules, and any person who is so assessed shall be liable to pay the amount so assessed, except so far as the person establishes in proceedings challenging the assessment that the assessment is excessive or that the person is not liable to account for or pay the amount so assessed.
(2)
Sections 108 to 111, 113, and 114 shall apply, so far as may be, with respect to every assessment made under subsection (1) of this section, as if—
(a)
the term amount assessed in section 108(1) included an amount assessed under subsection (1) of this section and the term income in section 108(2) included an amount of resident passive income; and
(b)
the term taxpayer in sections 111 and 113 included a person who is assessed or is liable to be assessed under subsection (1) of this section; and
(c)
the term tax already assessed in section 113 included an amount already assessed under subsection (1) of this section.
(3)
An assessment made under this section shall be subject to challenge in the same manner as an assessment of income tax imposed under section BB 1 of the Income Tax Act 2007, and Parts 7 and 8A of this Act shall apply accordingly.
Compare: 1976 No 65 s 327T
Section 99 heading: amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 99(1): amended, on 1 October 1996, by section 22(1) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 99(2)(a): replaced, on 26 July 1996 (applying to 1997–98 and subsequent income years), by section 456 of the Taxation (Core Provisions) Act 1996 (1996 No 67).
Section 99(2)(a): amended (with effect on 1 October 1996), on 30 June 2014, by section 166(1) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).
Section 99(2)(a): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 99(2)(a): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 99(2)(b): amended (with effect on 1 October 1996), on 30 June 2014, by section 166(2) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).
Section 99(3): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 99(3): amended, on 1 October 1996, by section 22(2)(a) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 99(3): amended, on 1 October 1996, by section 22(2)(b) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 99(3): amended, on 26 July 1996 (applying to 1997–98 and subsequent income years), by section 483(3) of the Taxation (Core Provisions) Act 1996 (1996 No 67).
100 Assessment of NRWT
(1)
The Commissioner may, in respect of any person who is chargeable with NRWT under section RF 3 of the Income Tax Act 2007, make an assessment of the amount of non-resident passive income on which in the Commissioner’s judgment NRWT ought to be imposed and of the amount of that tax, and that person shall be liable to pay the tax so assessed, except so far as the person establishes in proceedings challenging the assessment that the assessment is excessive or that the person is not chargeable with the tax so assessed.
(2)
The Commissioner may make an assessment of any amount which in the Commissioner’s judgment any person is liable to account for or pay to the Commissioner under subpart RF of the Income Tax Act 2007, and any person who is so assessed shall be liable to pay the amount so assessed, except so far as the person establishes in proceedings challenging the assessment that the assessment is excessive or that the person is not liable to account for or pay the amount so assessed.
(3)
Sections 109 to 111, 113, and 114 shall apply, so far as may be, with respect to every assessment made under subsection (1) or subsection (2) of this section, as if—
(a)
the term tax already assessed used in section 113 included NRWT already assessed under subsection (1) of this section or, as the case may be, an amount already assessed under subsection (2) of this section; and
(b)
the term taxpayer used in sections 111 and 113 included a person who is chargeable with NRWT or, as the case may be, a person who is assessed or is liable to be assessed under subsection (2) of this section.
(4)
An assessment made under this section shall be subject to challenge in the same manner as an assessment of income tax imposed under section BB 1 of the Income Tax Act 2007, and Part 8A of this Act shall apply accordingly.
Compare: 1976 No 65 s 321
Section 100 heading: amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 100(1): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 100(1): amended, on 1 October 1996, by section 23(1) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 100(1): amended, 26 July 1996 (applying to 1997–98 and subsequent income years), by section 483(3) of the Taxation (Core Provisions) Act 1996 (1996 No 67).
Section 100(2): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 100(2): amended (with effect on 1 October 1996), on 25 November 2003, by section 124 of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).
Section 100(3)(a): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 100(3)(b): amended (with effect on 1 October 1996), on 30 June 2014, by section 167 of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).
Section 100(3)(b): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 100(4): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 100(4): amended, on 1 October 1996, by section 23(2)(a) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 100(4): amended, on 1 October 1996, by section 23(2)(b) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 100(4): amended, on 26 July 1996 (applying to 1997–98 and subsequent income years), by section 483(3) of the Taxation (Core Provisions) Act 1996 (1996 No 67).
101 Assessment of further income tax
(1)
The Commissioner may, in respect of any company liable to pay further income tax under sections OB 65 to OB 67 of the Income Tax Act 2007, make an assessment of the amount of the further income tax that in the Commissioner’s judgment ought to be imposed, and the company shall be liable to pay the further income tax so assessed except so far as the company establishes in proceedings challenging the assessment that the assessment is excessive or that the company is not chargeable with the further income tax.
(2)
Sections 109, 111, and 113 shall apply, so far as may be, with respect to every assessment made under this section as if—
(a)
in sections 111 and 113, the term taxpayer included a company which is chargeable with further income tax; and
(b)
in section 113, the term tax already assessed included the further income tax already assessed under this section.
(3)
An assessment made under this section shall be subject to challenge in the same manner as an assessment of income tax and Part 8A of this Act shall apply, so far as may be, to a challenge to an assessment made under this section as if the terms income tax and tax in that Part included the further income tax for which a company may be chargeable under sections OB 65 to OB 67 of the Income Tax Act 2007.
Compare: 1976 No 65 s 394L(7), (8), (9)
Section 101(1): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 101(1): amended, on 1 October 1996, by section 24(1) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 101(1): amended, on 26 July 1996 (applying to 1997–98 and subsequent income years), by section 483(3) of the Taxation (Core Provisions) Act 1996 (1996 No 67).
Section 101(2)(a): amended (with effect on 1 October 1996), on 30 June 2014, by section 168 of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).
Section 101(3): replaced, on 23 September 1997, by section 77 of the Taxation (Remedial Provisions) Act 1997 (1997 No 74).
Section 101(3): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
101B Assessment of imputation additional tax
(1)
The Commissioner may, in respect of any company liable to pay imputation additional tax under section OB 72 of the Income Tax Act 2007, make an assessment of the amount of the imputation additional tax that in the Commissioner’s judgment ought to be imposed, and the company shall be liable to pay the imputation additional tax so assessed except so far as the company establishes in proceedings challenging the assessment that the assessment is excessive or that the company is not chargeable with the imputation additional tax.
(2)
Sections 109, 111, and 113 apply, so far as may be, with respect to every assessment made under this section as if—
(a)
in sections 111 and 113, the term taxpayer included a company which is chargeable with imputation additional tax; and
(b)
in section 113, the term tax already assessed included the imputation additional tax already assessed under this section.
(3)
An assessment made under this section is subject to challenge in the same manner as an assessment of income tax and Part 8A of this Act shall apply, so far as may be, to a challenge to an assessment made under this section as if the terms income tax and tax in that Part included the imputation additional tax for which a company may be chargeable under section OB 72 of the Income Tax Act 2007.
Section 101B: inserted (with effect on 16 November 2004), on 21 June 2005, by section 143 of the Taxation (Base Maintenance and Miscellaneous Provisions) Act 2005 (2005 No 79).
Section 101B heading: amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 101B(1): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 101B(2)(a): amended (with effect on 16 November 2004), on 30 June 2014, by section 169 of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).
Section 101B(2)(a): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 101B(2)(b): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 101B(3): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
102 Assessment of FDP
[Repealed]Section 102: repealed (with effect on 30 June 2009), on 6 October 2009 (applying for all income years beginning on or after 1 July 2009), by section 655(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
103 Assessment of further FDP
[Repealed]Section 103: repealed (with effect on 30 June 2009), on 6 October 2009 (applying for all income years beginning on or after 1 July 2009), by section 656(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
103A Assessment of FDP relating to conduit tax relief
[Repealed]Section 103A: repealed (with effect on 30 June 2009), on 6 October 2009 (applying for all income years beginning on or after 1 July 2009), by section 657(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
104 Assessment of FDP penalty tax
[Repealed]Section 104: repealed (with effect on 30 June 2009), on 6 October 2009 (applying for all income years beginning on or after 1 July 2009), by section 658(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
104B Determination of credits and debits in memorandum accounts
(1)
In this section,—
credit date means the credit date recorded when a memorandum credit arises in a memorandum account
debit date means the debit date recorded when a memorandum debit arises in a memorandum account
memorandum account person means a company, person, consolidated imputation group, or consolidated group (including the nominated company for a consolidated group) that maintains a memorandum account.
(2)
The Commissioner may determine that a memorandum account is corrected by—
(a)
adjusting the amount of a credit or debit recorded in the account; or
(b)
changing a credit date or a debit date recorded in the account.
(3)
Notice of the determination must be given to the memorandum account person affected by the determination as soon as is convenient after the determination has been made.
(4)
Notice of the determination may be included in a notice of assessment.
(5)
Failure to give the notice of determination does not invalidate the determination.
(6)
Particulars of the determination are treated as correctly reflecting what should have been recorded in the memorandum account.
(7)
The memorandum account person must record those changes that are necessary or appropriate to ensure that all memorandum accounts of the person correctly reflect the determination.
(8)
Subsections (6) and (7) do not apply to the extent to which it is established in proceedings under a challenge that the determination is not correct.
Compare: 2004 No 35 ss ME 20, ME 40, MF 6, MG 12, MI 12, MJ 8, MK 9
Section 104B: inserted, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
105 Assessments and determinations made by electronic means
Any assessment or determination made by the Commissioner for the purposes of any of the Inland Revenue Acts that is made automatically by a computer or other electronic means in response to or as a result of information entered or held in the computer or other electronic medium shall be treated as an assessment or determination made by or under the properly delegated authority of the Commissioner.
Compare: 1974 No 133 s 21D
Section 105: amended, on 24 October 2001 (applying to 2002–03 and subsequent income years), by section 211(1) of the Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 (2001 No 85).
106 Assessment where default made in furnishing returns
(1)
If any person makes default in furnishing any return, or if the Commissioner is not satisfied with the return made by any person, or if the Commissioner has reason to suppose that any person, although the person has not made a return, is a taxpayer, the Commissioner may make an assessment of the amount on which in the Commissioner’s judgment tax ought to be imposed and of the amount of that tax, and that person shall be liable to pay the tax so assessed, save so far as the person establishes on objection or in proceedings challenging the assessment that the assessment is excessive or that the person is not chargeable with tax.
(1A)
If the Commissioner considers that the information provided in an individual’s final account for a tax year is not likely to be correct, the Commissioner may make an assessment of the amount on which the Commissioner considers tax ought to be imposed and of the amount of that tax.
(1B)
Tax assessed under subsection (1A) in relation to an individual is payable by the individual unless the individual disputes the assessment and complies with the requirements of section 89D.
(1C)
[Repealed](1D)
If a person who is required to provide a GST tax return for a GST return period does not provide a GST tax return for the return period, or provides a GST tax return with which the Commissioner is not satisfied, the Commissioner may make an assessment of the GST payable by the person for the return period.
(1E)
A person who is assessed under subsection (1D) is liable to pay the GST assessed unless the person establishes in proceedings challenging the assessment that the assessment is excessive, or that the person is not chargeable with GST.
(2)
An assessment made under this section shall not be invalidated by virtue of the fact that it is made automatically by a computer or other electronic means in response to or as a result of information entered or held in the computer or other electronic medium.
Compare: 1976 No 65 s 21
Section 106(1): amended, on 1 October 1996, by section 28 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 106(1): amended, on 26 July 1996 (applying to 1997–98 and subsequent income years), by section 483(3) of the Taxation (Core Provisions) Act 1996 (1996 No 67).
Section 106(1A): replaced, on 1 April 2019, by section 71(1) (and see section 71(2) for application) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 106(1B): replaced, on 1 April 2019, by section 71(1) (and see section 71(2) for application) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 106(1C): repealed, on 23 March 2020, by section 215 of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 106(1D): inserted, on 21 December 2004 (applying for GST return periods beginning on or after 1 April 2005), by section 114(1) Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).
Section 106(1E): inserted, on 21 December 2004 (applying for GST return periods beginning on or after 1 April 2005), by section 114(1) of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).
107 Amended assessment for income tax where return date between 31 March and 1 October
Where, whether before or after the commencement of this Act,—
(a)
any taxpayer, in respect of income derived during any number of successive accounting periods ending respectively with a day between 31 March and 1 October in each year, has made returns of income and been assessed for income tax upon the basis that the income derived during each such accounting period was derived during the tax year ending with the 31 March next succeeding the end of that accounting period; and
(b)
the Commissioner has amended all those assessments (or such of them as the Commissioner is not precluded by the time bar from amending) by assessing the taxpayer upon the basis that the income derived during each accounting period was derived during the tax year ending with the 31 March preceding the end of that accounting period,—
the validity of the amended assessment in respect of the income derived during any such accounting period shall not be deemed to be affected or to have at any time been affected by reason of its having been made for the same tax year as the assessment in respect of the income derived by the taxpayer during the preceding accounting period.
Section 107: replaced, on 26 July 1996 (applying to 1997–98 and subsequent income years), by section 457 of the Taxation (Core Provisions) Act 1996 (1996 No 67).
Section 107 heading: amended, on 24 October 2001 (applying to 2002–03 and subsequent income years), by section 212(3) of the Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 (2001 No 85).
Section 107: amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 107: amended, on 24 October 2001 (applying to 2002–03 and subsequent income years), by section 236(2) of the Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 (2001 No 85).
Section 107(a): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 107(b): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 107(b): amended, on 24 October 2001 (applying to 2002–03 and subsequent income years), by section 212(2) of the Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 (2001 No 85).
Section 107(b): amended, on 24 October 2001 (applying to 2002–03 and subsequent income years), by section 236(2) of the Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 (2001 No 85).
107A Time bar for amendment of assessments
(1)
When any person has made returns and has been assessed for income tax for any year, it shall not be lawful for the Commissioner to amend the assessment so as to increase its amount after the expiration of 4 years from the end of the year in which the notice of original assessment was issued.
(2)
Notwithstanding subsection (1), in any case where, in the opinion of the Commissioner, the returns so made are fraudulent or wilfully misleading or omit all mention of income which is of a particular nature or was derived from a particular source, and in respect of which a return is required to be made, it shall be lawful for the Commissioner to amend the assessment (being an assessment made on or after 1 April 1958) at any time so as to increase the amount of the assessment.
(3)
Subsections (1) and (2) apply to a return filed in the period between 1 October 1996 and 31 March 1997, and, for such a return, a reference to section 108 is deemed to be a reference to this section.
Section 107A: inserted (with effect on 1 October 1996), on 23 September 1997, by section 78(1) of the Taxation (Remedial Provisions) Act 1997 (1997 No 74).
Section 107A(1): amended, on 24 October 2001 (applying to 2002–03 and subsequent income years), by section 236(1) of the Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 (2001 No 85).
Section 107A(2): amended, on 24 October 2001 (applying to 2002–03 and subsequent income years), by section 236(1) of the Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 (2001 No 85).
108 Time bar for amendment of income tax assessment
(1)
Except as specified in this section or in section 108B, if—
(a)
a taxpayer furnishes an income tax return and an assessment has been made; and
(b)
4 years have passed from the end of the tax year in which the taxpayer provides the tax return,—
the Commissioner may not amend the assessment so as to increase the amount assessed or decrease the amount of a net loss.
(1A)
[Repealed](1B)
[Repealed](1C)
The Commissioner may not amend an assessment so as to increase an amount assessed when—
(a)
a taxpayer—
(i)
provides a return for an amount of ancillary tax for a period which, for the purposes of this section, is treated as the making of an assessment of the amount of the tax by the taxpayer:
(ib)
provides a return for an amount required to be deducted under section 221 of the Accident Compensation Act 2001 for a period which, for the purposes of this section, is treated as the making of an assessment of the amount by the taxpayer:
(ii)
provides a statement in relation to approved issuer levy payable under section 86K of the Stamp and Cheque Duties Act 1971 for a period which, for the purposes of this section, is treated as the making of an assessment of the levy by the taxpayer:
(iii)
makes an application for a refund made under section 41A in relation to a tax credit for a charitable or other public benefit gift; and
(b)
4 years have passed from the end of the period in which the taxpayer provided the return or statement, or made the application, as applicable.
(1D)
For the purposes of the time bar in subsection (1C)(b), a taxpayer who furnishes a statement referred to in subsection (1C)(a)(ii) is treated as having met the requirements for furnishing a tax return for non-resident withholding tax.
(1E)
Despite subsection (1), the Commissioner may not amend an assessment so as to increase an amount of research and development tax credit if 1 year has passed from the latest date to provide a return of income for the relevant tax year, except if the increase is to take into account—
(aa)
a supplementary return filed using an extension of time under section 33G:
(a)
a notice of proposed adjustment initiated by a taxpayer in accordance with section 113E:
(b)
a request under section 113 initiated by a taxpayer in accordance with section 113E.
(2)
If the Commissioner is of the opinion that a tax return provided by a taxpayer—
(a)
is fraudulent or wilfully misleading; or
(b)
does not mention income which is of a particular nature or was derived from a particular source, and in respect of which a tax return is required to be provided,—
the Commissioner may amend the assessment at any time so as to increase its amount.
(2B)
A period equal to the number of days in the period described in this subsection is added to the 4 years under subsection (1), if a taxpayer successfully challenges a Commissioner’s refusal under section 89K(4). The relevant period—
(a)
starts on the day of the refusal:
(b)
finishes on the day on which that challenge is finally judged successful by the relevant Taxation Review Authority or court, or the day on which the Commissioner concedes.
(3)
This section overrides every other provision of this Act, and any other rule or law, that limits the Commissioner’s right to amend assessments.
(3B)
The Commissioner may amend an assessment or a determination to give effect to section LA 6(3) of the Income Tax Act 2007 despite the time bar.
(4)
Subsection (1) applies to all returns filed on or after 1 April 1997.
Section 108: replaced, on 1 October 1996, by section 29 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 108 heading: replaced, on 24 October 2001 (applying to 2002–03 and subsequent income years), by section 213(3) of the Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 (2001 No 85).
Section 108(1): amended (with effect on 24 October 2001 and applying for the 2002–03 and later income years), on 27 February 2014, by section 139(1) of the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Act 2014 (2014 No 4).
Section 108(1): amended, on 24 October 2001 (applying to 2002–03 and subsequent income years), by section 236(1) of the Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 (2001 No 85).
Section 108(1)(a): replaced, on 24 October 2001 (applying to 2002–03 and subsequent income years), by section 213(1) of the Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 (2001 No 85).
Section 108(1)(b): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 108(1A): repealed, on 1 April 2019, by section 72(1) (and see section 72(3) for application) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 108(1B): repealed, on 1 April 2019, by section 32(1) (and see section 3 for application) of the Taxation (Research and Development Tax Credits) Act 2019 (2019 No 15).
Section 108(1C): inserted (with effect on 3 May 2016), on 30 March 2017, by section 335 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section 108(1C)(a): amended, on 1 April 2019, by section 72(2)(a) (and see section 72(3) for application) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 108(1C)(a)(i): amended, on 1 April 2019, by section 72(2)(b) (and see section 72(3) for application) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 108(1C)(a)(ib): inserted, on 30 March 2022, by section 201 of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section 108(1C)(a)(ii): amended, on 1 April 2019, by section 72(2)(c)(i) (and see section 72(3) for application) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 108(1C)(a)(ii): amended, on 1 April 2019, by section 72(2)(c)(ii) (and see section 72(3) for application) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 108(1C)(a)(iii): inserted, on 1 April 2019, by section 72(2)(d) (and see section 72(3) for application) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 108(1C)(b): amended, on 1 April 2019, by section 72(2)(e) (and see section 72(3) for application) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 108(1D): inserted (with effect on 3 May 2016), on 30 March 2017, by section 335 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section 108(1E): replaced (with effect on 1 April 2019), on 30 March 2021, by section 168 of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
Section 108(1E)(aa): inserted (with effect on 1 April 2020), on 29 March 2025, by section 181(2) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
Section 108(2): amended, on 24 October 2001 (applying to 2002–03 and subsequent income years), by section 236(1) of the Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 (2001 No 85).
Section 108(2)(b): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 108(2)(b): amended, on 26 July 1996 (applying to 1997–98 and subsequent income years), by section 483(1) of the Taxation (Core Provisions) Act 1996 (1996 No 67).
Section 108(2B): inserted, on 29 August 2011, by section 175 of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section 108(3B): replaced, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
108A Time bar for amending GST assessment
(1)
Subject to this section and section 108B, if a taxpayer provides a GST tax return for a GST return period and an assessment has been made, the Commissioner may not amend the assessment to increase the amount assessed if 4 years have passed from the end of the GST return period in which the tax return was provided.
(2)
[Repealed](3)
The Commissioner may, at any time, amend an assessment to increase the amount of the assessment if the Commissioner considers that the person assessed has knowingly or fraudulently failed to disclose to the Commissioner all of the material facts that are necessary for determining the amount of GST payable for a GST return period.
(3B)
A period equal to the number of days in the period described in this subsection is added to the 4 years under subsection (1), if a taxpayer successfully challenges a Commissioner’s refusal under section 89K(4). The relevant period—
(a)
starts on the day of the refusal:
(b)
finishes on the day on which that challenge is finally judged successful by the relevant Taxation Review Authority or court, or the day on which the Commissioner concedes.
(4)
This section overrides every other provision of this Act, and any other rule or law, that limits the Commissioner’s right to amend GST assessments.
Section 108A: inserted, on 1 October 1996, by section 29 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 108A heading: replaced, on 1 April 2005 (applying for GST return periods beginning on or after 1 April 2005), by section 115(1) of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).
Section 108A(1): replaced, on 1 April 2005 (applying for GST return periods beginning on or after 1 April 2005), by section 115(2) of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).
Section 108A(2): repealed, on 1 April 2005 (applying for GST return periods beginning on or after 1 April 2005), by section 115(3) of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).
Section 108A(3): replaced, on 1 April 2005 (applying for GST return periods beginning on or after 1 April 2005), by section 115(4) of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).
Section 108A(3B): inserted, on 29 August 2011, by section 176 of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
108AB Time bar for amending assessment of KiwiSaver contributions
(1)
The Commissioner may not amend an assessment so as to increase an amount assessed when—
(a)
a taxpayer provides employment income information that includes—
(i)
an amount required to be deducted under Part 3, subpart 1 of the KiwiSaver Act 2006 which, for the purposes of this section, is treated as the making of an assessment of the amount by the taxpayer:
(ii)
an amount of KiwiSaver Act 2006 employer contributions payable which, for the purposes of this section, is treated as the making of an assessment of the amount by the taxpayer; and
(b)
4 years have passed from the date on which the taxpayer provided the employment income information.
(2)
However, if the Commissioner is of the opinion that employment income information provided by a taxpayer is fraudulent or wilfully misleading, the Commissioner may amend the assessment at any time so as to increase its amount.
(3)
This section overrides every other provision of this Act, and any other rule or law, that limits the Commissioner’s right to amend assessments.
Section 108AB: inserted, on 30 March 2022, by section 202 of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
108AC Time bar for amending assessment of student loan deductions
(1)
The Commissioner may not amend an assessment when—
(a)
a taxpayer provides employment income information that includes an amount of salary or wage deductions required to be made under the Student Loan Scheme Act 2011 which, for the purposes of this section, is treated as the making of an assessment of the amount by the taxpayer; and
(b)
4 years have passed from the date on which the taxpayer provided the employment income information.
(2)
However, the Commissioner may amend the assessment at any time if the Commissioner is of the opinion that either or both of the following apply:
(a)
employment income information provided by a taxpayer is fraudulent or wilfully misleading:
(b)
there would be a significant adverse effect on a borrower, as defined in section 4(1) of the Student Loan Scheme Act 2011, if the assessment is not amended.
(3)
This section is subject to section 64 of the Student Loan Scheme Act 2011, but overrides every other provision of this Act, and any other rule or law, that limits the Commissioner’s right to amend assessments.
Section 108AC: inserted, on 1 April 2023, by section 192 of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
108B Extension of time bars
(1)
The application of a time bar that is referred to in subsection (3) may be delayed for a taxpayer by a waiver—
(a)
for 12 months from the time at which the time bar would otherwise apply if—
(i)
the taxpayer and the Commissioner agree to the waiver; and
(ii)
their agreement is recorded in a document; and
(b)
for a further 6 months from the end of the 12-month period referred to in paragraph (a), by notice given by the taxpayer.
(1B)
A waiver under subsection (1) does not affect the application of a time bar to an assessment of the taxpayer by the Commissioner on a ground that was not identified and known to the taxpayer and the Commissioner before the time at which the time bar would have applied but for subsection (1).
(2)
An agreement under subsection (1)(a) must be in the prescribed form and must be signed and delivered to the Commissioner before the expiry of the relevant 4-year period.
(2B)
A notice under subsection (1)(b) must be given to the Commissioner before the expiry of the 12-month period referred to in subsection (1)(a).
(3)
Subsection (1) applies to—
(a)
the time bar occurring under section 25 of the Income Tax Act 1976 after the period of 4 years from the end of the year in which the notice of original assessment was issued; and
(b)
the time bar occurring under section 107A after the period of 4 years from the end of the year in which the notice of original assessment was issued; and
(c)
the time bar occurring under section 108 (as that section applied before it was amended by section 29 of the Tax Administration Amendment Act (No 2) 1996) after the period of 4 years from the end of the year in which the notice of original assessment was issued; and
(d)
the time bar occurring under section 108(1), (1B), and (1C) (as amended by section 29 of the Tax Administration Amendment Act (No 2) 1996) after the period of 4 years from the end of the tax year in which the taxpayer provides a return of income; and
(e)
the time bar occurring under the former section 31 of the Goods and Services Tax Act 1985 (as that section applied on 30 September 1996) after the period of 4 years from the end of the month in which the GST return was provided or, as the case may be, the assessment made; and
(f)
the time bar occurring under section 108A(1) after the period of 4 years from the end of the GST return period in which the GST tax return was provided; and
(fb)
the time bar occurring under section 108AB after the period of 4 years from the date on which the taxpayer provided the employment income information.
(g)
[Repealed]Section 108B: replaced, on 20 May 1999 (applying on and after 1 October 1996, but does not apply to a waiver made under this section if the waiver was signed and delivered to the Commissioner before 17 November 1998), by section 101(1) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
Section 108B(1): replaced, on 21 December 2004 (applying to disputes that are commenced under Part 4A of this Act on or after 1 April 2005), by section 116(1) of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).
Section 108B(1)(a): replaced, on 2 June 2016, by section 159(1) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section 108B(1)(a): amended, on 1 April 2019, by section 73(1) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 108B(1)(b): amended, on 2 June 2016, by section 159(2) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section 108B(1B): inserted, on 21 December 2004 (applying to disputes that are commenced under Part 4A of this Act on or after 1 April 2005), by section 116(1) of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).
Section 108B(2): amended, on 18 December 2006, by section 194(1) of the Taxation (Savings Investment and Miscellaneous Provisions) Act 2006 (2006 No 81).
Section 108B(2B): inserted, on 18 December 2006, by section 194(2) of the Taxation (Savings Investment and Miscellaneous Provisions) Act 2006 (2006 No 81).
Section 108B(3)(d): amended, on 1 April 2019, by section 73(2) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 108B(3)(d): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 108B(3)(f): amended, on 30 March 2022, by section 203(1) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section 108B(3)(f): amended, on 21 December 2004 (applying for GST return periods beginning on or after 1 April 2005), by section 116(2) of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).
Section 108B(3)(fb): inserted, on 30 March 2022, by section 203(2) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section 108B(3)(g): repealed, on 21 December 2004 (applying for GST return periods beginning on or after 1 April 2005), by section 116(3) of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).
109 Disputable decisions deemed correct except in proceedings
Except in objection proceedings under Part 8 or a challenge under Part 8A,—
(a)
no disputable decision may be disputed in a court or in any proceedings on any ground whatsoever; and
(b)
every disputable decision and, where relevant, all of its particulars are deemed to be, and are to be taken as being, correct in all respects.
Section 109: replaced, on 1 October 1996, by section 30 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
109A Transitional provision affecting assessments
A notice of assessment issued on or after 1 April 1995 and relating to return periods before that date shall be deemed to have been made under the Tax Administration Act 1994.
Section 109A: inserted (with effect on 1 April 1995), on 23 September 1997, by section 79(1) of the Taxation (Remedial Provisions) Act 1997 (1997 No 74).
110 Evidence of returns and assessments
(1)
The production of any document under the hand of the Commissioner or an officer of the department purporting to be a copy of or extract from any return or assessment shall in all courts and in all proceedings (including proceedings before a Taxation Review Authority) be sufficient evidence of the original, and the production of the original shall not be necessary, and all courts and Taxation Review Authorities shall in all proceedings take judicial notice of the signature of the Commissioner or an officer of the department either to the original or to any such copy or extract.
(1B)
For the purposes of subsection (1), a return or assessment includes the final account of an individual relating to the information that is held by the Commissioner on their assessable income.
(2)
The production of any document under the hand of the Commissioner or an officer of the department purporting to be a hard copy transcript of all or any information transmitted by electronic means in accordance with section 36 or any other provision of this Act or of any of the other Inland Revenue Acts or the Goods and Services Tax Act 1985 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 an officer of the department to any such hard copy transcript.
Compare: 1976 No 65 s 28
Section 110(1): amended, on 1 April 2019, by section 74(1) (and see section 74(3) for application) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 110(1): amended, on 7 October 1998 (applying to 1999–2000 and subsequent income years), by section 29(1) of the Taxation (Simplification and Other Remedial Matters) Act 1998 (1998 No 101).
Section 110(1): amended (with effect on 1 April 1995), on 2 September 1996, by section 44(2) of the Taxation (Remedial Provisions) Act 1996 (1996 No 159).
Section 110(1B): inserted, on 1 April 2019, by section 74(2) (and see section 74(3) for application) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 110(2): amended, on 1 April 2019, by section 343 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 110(2): amended, on 1 October 1996, by section 31 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 110(2): amended (with effect on 1 April 1995), on 2 September 1996, by section 44(2) of the Taxation (Remedial Provisions) Act 1996 (1996 No 159).
Section 110(2): amended, on 12 December 1995, by section 7(1) of the Tax Administration Amendment Act (No 3) 1995 (1995 No 77).
111 Commissioner to give notice of assessment to taxpayer
(1)
As soon as conveniently may be after making an assessment the Commissioner shall cause notice of the assessment to be given to the taxpayer:
provided that where—
(a)
the taxpayer has, in the taxpayer’s return to which the assessment relates, calculated the amount on which tax is payable or the amount of the tax; or
(b)
the assessment has been made on default by the taxpayer in furnishing any return for the year to which the assessment relates; or
(ba)
the assessment is made after a failure by the taxpayer to comply with their obligations under Part 3, subpart 3B; or
(bb)
an assessment is deemed to be made under Part 3, subpart 3B; or
(c)
the Commissioner causes a separate statement in relation to the assessment to be given to the taxpayer setting forth the amount on which tax is payable and the amount of the tax,—
it shall not be necessary to set forth in the notice of the assessment any particulars other than particulars as to the amount of tax to be paid by the taxpayer or the amount of tax to be refunded.
(2)
[Repealed](3)
[Repealed](4)
[Repealed](5)
[Repealed](6)
Omitting to give a notice under this section does not invalidate the assessment or in any manner affect the operation of the assessment.
(7)
If requested to do so, the Commissioner must give a notice of assessment to a taxpayer who confirms the amount of their income tax liability under section 22H.
(8)
If the Commissioner makes an assessment in relation to goods that are treated under section 5(2) of the Goods and Services Tax Act 1985 as being supplied by a person, the Commissioner must send a copy of the notice referred to in subsection (1) to whichever of the person whose goods were sold and the person selling the goods is the person who is not assessed.
Compare: 1976 No 65 s 29
Section 111(1): amended, on 24 October 2001 (applying to 2002–03 and subsequent income years), by section 214(1) of the Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 (2001 No 85).
Section 111(1)(ba): replaced, on 1 April 2019, by section 75(1) (and see section 75(4) for application) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 111(1)(bb): inserted, on 7 October 1998 (applying to 1999–2000 and subsequent income years), by section 30(1) of the Taxation (Simplification and Other Remedial Matters) Act 1998 (1998 No 101).
Section 111(1)(bb): amended, on 1 April 2019, by section 75(2) (and see section 75(4) for application) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 111(2): repealed, on 24 October 2001 (applying on first day of 2002–03 income year), by section 214(2) of the Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 (2001 No 85).
Section 111(3): repealed, on 24 October 2001 (applying on first day of 2002–03 income year), by section 214(2) of the Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 (2001 No 85).
Section 111(4): repealed, on 24 October 2001 (applying on first day of 2002–03 income year), by section 214(2) of the Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 (2001 No 85).
Section 111(5): repealed, on 24 October 2001 (applying on first day of 2002–03 income year), by section 214(2) of the Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 (2001 No 85).
Section 111(6): replaced, on 24 October 2001 (applying to 2002–03 and subsequent income years), by section 214(3) of the Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 (2001 No 85).
Section 111(7): inserted, on 7 October 1998 (applying to 1999–2000 and subsequent income years), by section 30(2) of the Taxation (Simplification and Other Remedial Matters) Act 1998 (1998 No 101).
Section 111(7): amended, on 1 April 2019, by section 75(3) (and see section 75(4) for application) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 111(7): amended, on 24 October 2001 (applying to 2002–03 and subsequent income years), by section 214(4) of the Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 (2001 No 85).
Section 111(8): inserted, on 21 December 2004 (applying to notices that are issued on or after 1 April 2005), by section 117(1) of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).
112 Commissioner to make determination of life insurer’s policyholder net loss
[Repealed]Section 112: repealed, on 24 October 2001 (applying on first day of 2002–03 income year), by section 215(1) of the Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 (2001 No 85).
113 Commissioner may at any time amend assessments
(1)
Subject to section 89N, the Commissioner may from time to time, and at any time, amend an assessment as the Commissioner thinks necessary in order to ensure its correctness, notwithstanding that tax already assessed may have been paid.
(2)
If any such amendment has the effect of imposing any fresh liability or increasing any existing liability, notice of it shall be given by the Commissioner to the taxpayer affected.
Compare: 1976 No 65 s 23
Section 113(1): amended (with effect on 1 April 2019), on 30 March 2022, by section 204(1) (and see section 204(2) for application) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section 113(1): amended, on 21 December 2004 (applying to amendments for which notices are issued on or after 1 April 2005), by section 118(1) of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).
Section 113(2): amended, on 21 December 2004, by section 118(2) of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).
113A Correction of certain errors in subsequent returns
(1)
This section applies for the purposes of this Act and the Goods and Services Tax Act 1985 when—
(a)
a person—
(i)
has made an assessment of income tax or goods and services tax in a return that results in a tax liability for the person; or
(ii)
has provided a return that results in a liability for fringe benefit tax for the person; and
(b)
1 or more errors in the assessment or return, as applicable, cause a tax discrepancy in the amount of the liability.
(2)
This section does not apply in relation to an assessment or return for an ancillary tax other than fringe benefit tax as described in subsection (1)(a)(ii).
(3)
If the total tax discrepancy amounts to $1,000 or less, the person may make a correction in the next return that is due after the discovery of the error or errors.
(3B)
If the total tax discrepancy is caused by an error or errors that, for the person, is not a material error or are not material errors, the person may make a correction in the next return that is due after the discovery of the error or errors.
(4)
For the purposes of subsection (3B) and in relation to a single return of a person, an error is not material if the amount of the total tax discrepancy caused by the error or errors in the assessment or return, as applicable, is equal to or less than the lower of—
(a)
$10,000; and
(b)
2% of the person’s—
(i)
output tax, in the case of an assessment of goods and services tax; or
(ii)
annual gross income, in any other case.
(5)
Subsections (3) and (3B) do not apply to a person who applies the materiality threshold in subsection (4) in relation to an assessment of their liability for income tax or goods and services tax, or return for fringe benefit tax, if their main purpose in applying the threshold is to delay the payment of tax.
Section 113A: replaced, on 18 March 2019, by section 76 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 113A(1): replaced, on 23 March 2020, by section 217(1) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 113A(2): replaced, on 23 March 2020, by section 217(1) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 113A(3): replaced, on 23 March 2020, by section 217(1) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 113A(3B): inserted, on 23 March 2020, by section 217(1) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 113A(4): amended (with effect on 23 March 2020), on 30 March 2022, by section 205(a) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section 113A(4): amended, on 23 March 2020, by section 217(2)(a) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 113A(4): amended, on 23 March 2020, by section 217(2)(b) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 113A(4)(a): replaced, on 23 March 2020, by section 217(2)(c) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 113A(4)(b): replaced (with effect on 23 March 2020), on 30 March 2022, by section 205(b) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section 113A(5): amended, on 23 March 2020, by section 217(3)(a) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 113A(5): amended, on 23 March 2020, by section 217(3)(b) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
113B Amended assessments if dividend recovered or repaid
(1)
This section applies if—
(a)
a company recovers a dividend from a shareholder under section 56 of the Companies Act 1993 or an equivalent provision of foreign law; or
(b)
the release of a debt is treated as a dividend and the released amount is repaid; or
(c)
close company expenditure to which section CD 41(2) of the Income Tax Act 2007 applies is treated as a dividend and the expenditure is repaid; or
(d)
a loan made before 1 April 1992 was treated as a dividend under section 4(1)(b) of the Income Tax Act 1976 and the loan is repaid.
(2)
If the Commissioner is given notice of the recovery or repayment, the Commissioner must amend each relevant assessment to the extent necessary to ensure that the dividend and any attached imputation credit are disregarded.
(3)
This section applies despite the time bar.
Compare: 1994 No 164 s CF 2(8)(a)(i)
Section 113B: inserted, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 113B(1)(c): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 113B(2): amended, on 1 April 2017, by section 336 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
113C Amended assessments for attributed repatriation dividends
[Repealed]Section 113C: repealed, on 24 February 2016, by section 262 of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
113D Amended assessments for research and development tax credits
[Repealed]Section 113D: repealed, on 1 April 2019, by section 33 (and see section 3 for application) of the Taxation (Research and Development Tax Credits) Act 2019 (2019 No 15).
113E Amended assessments: research and development tax credits
(1)
A person may only—
(a)
issue 1 notice of proposed adjustment in relation to an increase in the amount of a person’s research and development tax credit for a tax year before the earlier of—
(i)
1 year after the due date to provide their return of income for the tax year:
(ii)
4 months after they provide their return of income for the tax year; or
(b)
make 1 request under section 113 in relation to an increase in the amount of a person’s research and development tax credit for a tax year within 1 year after the due date to provide a return of income for the tax year.
(2)
A person must not make a request under section 113 in relation to research and development tax credits for a tax year unless they have filed a research and development supplementary return under section 33E for the year.
Section 113E: inserted, on 1 April 2019, by section 34 (and see section 3 for application) of the Taxation (Research and Development Tax Credits) Act 2019 (2019 No 15).
Section 113E(1)(a): replaced (with effect on 1 April 2019), on 23 March 2020, by section 218(1) (and see section 218(2) for application) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
113F Amended assessments: election under section HC 33 to satisfy trustee liability
(1)
This section applies when a person chooses under section HC 33 of the Income Tax Act 2007 to satisfy the income tax liability of the trustee of a trust and the election applies to an income year (the affected year) ending before the income year in which the person makes the election.
(2)
The Commissioner may from time to time and at any time make an assessment or reassessment for the trustee and the affected year as a consequence of the election notwithstanding that tax already assessed may have been paid.
(3)
The person who makes the election must provide the Commissioner with the information required by the Commissioner for determining the correct assessment for the affected year.
Section 113F: inserted, on 23 March 2020, by section 219 of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
113G Amended assessments: tax year to which net loss carried back under section IZ 8
(1)
This section applies if—
(a)
a person elects to carry back a net loss from a tax year (the loss year) to the preceding tax year under section IZ 8 of the Income Tax Act 2007; and
(b)
the Commissioner amends the assessment for the loss year because the person’s assessment for the loss year is based on an amount for the net loss carried back that does not meet the requirements of that section.
(2)
Despite the time bar, the Commissioner may amend the assessment for the tax year preceding the loss year at the same time as the Commissioner amends the assessment for the loss year.
Section 113G: inserted (with effect on 15 April 2020), on 30 April 2020, by section 21 of the COVID-19 Response (Taxation and Other Regulatory Urgent Measures) Act 2020 (2020 No 10).
114 Validity of assessments
An assessment made by the Commissioner is not invalidated—
(a)
through a failure to comply with a provision of this Act or another Inland Revenue Act; or
(b)
because the assessment is made wholly or partially in compliance with—
(i)
a direction or recommendation made by an authorised officer on matters relating to the assessment:
(ii)
a current policy or practice approved by the Commissioner that is applicable to matters relating to the assessment.
Section 114: replaced, on 21 December 2004, by section 119 of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).
115 Determination of claims for foreign tax credits
[Repealed]Section 115: repealed, on 24 October 2001 (applying on first day of 2002–03 income year), by section 217(1) of the Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 (2001 No 85).
116 Notice of foreign tax credit determination to taxpayer
[Repealed]Section 116: repealed, on 24 October 2001 (applying on first day of 2002–03 income year), by section 218(1) of the Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 (2001 No 85).
117 Foreign tax credit determination deemed correct except in proceedings on objection
[Repealed]Section 117: repealed, on 1 October 1996, by section 33 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
118 Evidence of foreign tax credit determination
[Repealed]Section 118: repealed, on 24 October 2001 (applying on first day of 2002–03 income year), by section 219(1) of the Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 (2001 No 85).
119 Commissioner may determine amount of provisional tax
(1)
The Commissioner may at any time determine the amount that, in the opinion of the Commissioner, ought to be the provisional tax payable by a person for a tax year (being an amount greater than the amount that would otherwise be payable) where—
(a)
the person defaults in furnishing the annual return of income required to be furnished for the immediately preceding tax year; or
(b)
the Commissioner is not satisfied with a return made by the person for any of the 2 immediately preceding tax years; or
(c)
the Commissioner has reason to believe that the person, although the person has not furnished a return, is a provisional taxpayer; or
(cb)
the taxpayer is using the AIM method and the approved AIM provider’s product that they are using calculates tax liabilities that are not reasonably accurate assessments of tax liabilities for the relevant income and expenditure; or
(d)
the Commissioner considers that any estimate of residual income tax furnished by a taxpayer pursuant to section RC 7 of the Income Tax Act 2007 was not fair and reasonable—
(i)
at the time the estimate was furnished; or
(ii)
on any instalment date; or
(e)
the person is required, under sections RC 7 and RC 18(5) of that Act, to estimate their residual income tax for a tax year, and fails to provide an estimation or re-estimation to the Commissioner.
(2)
The Commissioner may at any time determine the amount that, in the opinion of the Commissioner, ought to be the provisional tax payable by a provisional taxpayer for a tax year (being an amount greater or lesser than the amount that would otherwise be payable) where—
(a)
[Repealed](b)
the Commissioner considers, by reason of any of sections HD 29(3), LJ 1, LK 1, and LK 6 of the Income Tax Act 2007, or by reason of any double tax agreement, that the provisional tax that would be payable by the person is excessive.
(3)
An amount of provisional tax determined by the Commissioner under subsection (1) shall not exceed the amount of provisional tax that would be payable if the taxpayer had not estimated.
(4)
Where the Commissioner determines an amount under subsection (1) or subsection (2), the Commissioner must give the taxpayer notice accordingly and, where the provisional tax payable by the taxpayer is increased under the determination,—
(a)
subject to paragraph (b), the amount of the consequent shortfall shall be due and payable by the taxpayer on such day as is specified in the notice, being a day not less than 30 days after the issuing of the notice; or
(b)
where the notice specifies that an estimate furnished by the taxpayer was not fair and reasonable, the consequent shortfall for any instalment date for which the estimate had effect, or would but for the determination have effect, shall be treated as being or having been due and payable by the taxpayer on that instalment date, except to the extent superseded by any further estimate or determination.
Compare: 1976 No 65 s 379; 1993 No 17 s 71
Section 119(1): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 119(1)(a): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 119(1)(b): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 119(1)(cb): inserted, on 1 April 2018 (applying for the 2018–19 and later income years), by section 53(1) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
Section 119(1)(d): replaced, on 23 September 1997 (applying to 1998–99 and subsequent income years), by section 80(1) of the Taxation (Remedial Provisions) Act 1997 (1997 No 74).
Section 119(1)(d): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 119(1)(d)(ii): amended, on 1 October 2007 (applying for income years corresponding to 2008–09 and subsequent tax years), by section 241(1)(b) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).
Section 119(1)(e): inserted, on 1 October 2007 (applying for income years corresponding to 2008–09 and subsequent tax years), by section 241(1)(b) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).
Section 119(1)(e): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 119(2): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 119(2)(a): repealed, on 23 September 1997 (applying to 1998–99 and subsequent income years), by section 80(2) of the Taxation (Remedial Provisions) Act 1997 (1997 No 74).
Section 119(2)(b): replaced, on 23 September 1997, by section 81 of the Taxation (Remedial Provisions) Act 1997 (1997 No 74).
Section 119(2)(b): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 119(3): replaced, on 23 September 1997 (applying to 1999–98 and subsequent income years), by section 80(3) of the Taxation (Remedial Provisions) Act 1997 (1997 No 74).
Section 119(4): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 119(5): amended, on 1 October 1996, by section 34 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
119A Amount of provisional tax based on 1997–98 or earlier income year
[Repealed]Section 119A: repealed, on 10 October 2000 (applying on 10 October 2000), by section 69(1) of the Taxation (GST and Miscellaneous Provisions) Act 2000 (2000 No 39).
Part 7 Interest
Part 7: replaced, on 26 July 1996, by section 36(1) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
120 Commissioner to pay interest on certain excess tax
[Repealed]Section 120: repealed, on 26 July 1996, by section 36(1) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
120A Purpose of this Part and nature of interest
(1)
The purpose of this Part is—
(a)
in appropriate circumstances—
(i)
to compensate the Commissioner for the loss of use of money through taxpayers paying too little tax; and
(ii)
to compensate taxpayers for the loss of use of money through their paying too much tax; and
(b)
to encourage taxpayers to pay the correct amount of tax on time.
(2)
Interest payable under this Part is not a penalty.
(3)
Where the Commissioner withholds RWT or NRWT from an interest payment, the interest paid to a taxpayer under this Part is the net amount.
Section 120A: inserted, on 26 July 1996, by section 36(1) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 120A(3): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
120AA Application of Part
(1)
This Part does not apply if—
(a)
a taxpayer has paid qualifying tax in dispute; and
(b)
the taxpayer has objected, appealed, or stated a case relating to the qualifying tax in dispute paid; and
(c)
the taxpayer has indicated to the Commissioner, before the date that the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 receives the Royal assent, that repealed sections 120 or 139 of this Act or repealed sections 34A or 398 of the Income Tax Act 1976 apply; and
(d)
the decision on the objection, appeal, or case stated requires the Commissioner to refund the qualifying tax in dispute paid or requires the taxpayer to pay deferrable tax, as that term was defined before its repeal by section 3 of the Tax Administration Amendment Act (No 2) 1996.
(2)
If subsection (1) applies, the Commissioner must apply, as appropriate—
(a)
sections 120 or 139 as they applied immediately before their repeal by sections 36 and 43 respectively of the Tax Administration Amendment Act (No 2) 1996; or
(b)
sections 34A or 398 of the Income Tax Act 1976 as they applied immediately before the enactment of this Act.
Section 120AA: inserted, on 20 May 1999 (applying on and after 1 April 1997), by section 102(1) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
120B Persons excluded
Nothing in this Part applies to—
(aa)
[Repealed](a)
a person (other than an employer and the Commissioner) specified in section 157A in relation to the person’s obligations under a tax law specified in that section:
(b)
a liable person in relation to child support (both as defined in the Child Support Act 1991):
(bb)
an employer in relation to amounts of compulsory employer contributions unpaid and specified in a notice under section 141(5) of the KiwiSaver Act 2006:
(bc)
a non-resident employer who incorrectly concludes that they do not have to withhold and pay, or pay, an amount of tax for a PAYE income payment to a cross-border employee to the Commissioner in an income year, and the employer—
(i)
has either 2 or fewer employees present in New Zealand during the income year or pays $500,000 or less of employment-related taxes for the income year; and
(ii)
has, within 60 days of a relevant failure to withhold and pay, or pay, taken reasonable measures to manage their employment-related tax obligations:
(c)
a borrower in relation to repayment obligation (both as defined in the Student Loan Scheme Act 2011).
Section 120B: inserted, on 26 July 1996, by section 36(1) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 120B(aa): repealed, on 1 April 2016, by section 263 of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
Section 120B(aa): inserted, on 1 April 2016, by section 200 of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).
Section 120B(bb): replaced, on 1 April 2021, by section 169 of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
Section 120B(bc): inserted, on 1 April 2023, by section 193 of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 120B(c): amended, on 1 April 2012, by section 223 of the Student Loan Scheme Act 2011 (2011 No 62).
General provisions
Heading: inserted, on 26 July 1996, by section 36(1) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
120C Definitions
(1)
In this Part, unless the context otherwise requires,—
Commissioner’s paying rate means the rate of interest established and notified as the Commissioner’s paying rate by an Order in Council made under section 120H
date interest starts, subject to sections 120N and 120O,—
(a)
for unpaid tax means—
(i)
if a taxpayer pays too little tax by a due date—
(A)
the day after the due date for payment of the tax; or
(B)
where the due date is a new due date or, in the case of GST, a later due date for payment of the tax, the day after the original due date for payment of the tax:
(ii)
if the Commissioner refunds or applies tax that should be kept and taken into account in satisfying a taxpayer’s tax liability at a due date, the day after the day on which the Commissioner refunds or applies the tax, unless subparagraph (iib) applies to the taxpayer; and
(iib)
for a qualifying individual or an individual who is treated as a qualifying individual, if the Commissioner refunds, amends the amount of a refund, or applies tax that should be kept and taken into account in satisfying the individual’s tax liability at a due date, the day after the due date for payment of the tax; and
(iii)
for a provisional taxpayer to whom section 120KE(7) applies, the day after whichever dates of instalments B, D, and F for their corresponding income year occur 30 days after their last ratio instalment date; and
(iv)
for a person who receives an entitlement under the final-year fees-free scheme that exceeds the amount the person is entitled to, the day after the date on which the entitlement was paid to the person; and
(b)
for overpaid tax, other than a GST refund provided by section 19C(8) or 20(5) of the Goods and Services Tax Act 1985, or FBT for the final quarter of a tax year, means the later of the following days—
(i)
if a taxpayer pays too much tax by or after a due date and subparagraph (iv) does not apply—
(A)
the day after the later of the due date for payment of the tax and the date the payment is made; or
(B)
where the due date is a new due date, the day after the later of the original due date for payment of the tax and the date on which the payment is made; and
(ii)
if a tax return is also to be provided in respect of the tax, the day after the tax return is provided; and
(iii)
for a taxpayer whose assessment for a tax year is made under Part 3, subpart 3B, the date on which their assessment arises under section 22I(2) or (3); and
(iv)
for a provisional taxpayer other than one to whom section 120KE(1) or (3) applies, the first day of the income year; and
(v)
for a provisional taxpayer to whom section 120KE(6) applies, the later of—
(A)
the day after the date set out in section RC 18(3) of the Income Tax Act 2007:
(B)
the day after their last ratio instalment date; and
(c)
for a GST refund provided by section 19C(8) or 20(5) of the Goods and Services Tax Act 1985, other than a refund for a non-resident person who is registered under section 54B of the Goods and Services Tax Act 1985, means the latest of the following days:
(i)
the day after the earlier of—
(A)
the 10th working day after the taxpayer provides a tax return for the return period to which the GST refund relates; and
(B)
the original due date for payment of output GST in respect of that return period; and
(ii)
the day after the day on which the tax return is provided; and
(iii)
[Repealed](d)
for overpaid tax, being FBT for the final quarter of a tax year, means the later of 31 May next following the end of the final quarter and the date on which the return for the final quarter is filed; and
(e)
for tax paid, being a deposit to a tax pooling account in accordance with sections RP 17 to RP 21 of the Income Tax Act 2007, means the date on which the deposit is made, unless the Commissioner refunds the deposit as required by section RP 18(5) of that Act, in which case there is not a date on which interest starts:
(f)
for unpaid tax, being terminal tax for the tax year in which a taxpayer dies, the due date for the deceased person’s terminal tax, if—
(i)
each instalment of provisional tax payable by the deceased person for that tax year is paid by the due date under section RC 6 for the instalment; and
(ii)
the terminal tax payable by the deceased person for that tax year is paid by the due date under section RA 13 for the terminal tax:
(g)
for unpaid tax, being terminal tax for which a taxpayer has a new due date for payment of the tax because section 142AC applies, means the day after the date fixed by the Commissioner under section 142AB(2) for the payment of the tax
interest paid to a taxpayer means interest credited to, or dealt with in the interests of or on behalf of, the taxpayer; and interest paid and paid have corresponding meanings
interest period—
(a)
for unpaid tax, means the period beginning on the date interest starts and ending on the date the tax is paid or credited as paid (both dates inclusive):
(b)
for overpaid tax, means the period (both dates inclusive) beginning on the date interest starts and ending on the earlier of—
(i)
the date the tax is refunded by the Commissioner; and
(ii)
the date the tax is applied by the Commissioner towards meeting another tax liability
(iii)
[Repealed]tax paid, at a time, means—
(a)
an amount of tax that—
(i)
is paid or credited by the time for a tax liability; and
(ii)
has not been refunded or applied by the Commissioner to satisfy another tax liability:
(b)
an amount credited by the time to a tax pooling account under sections RP 17 to RP 21 of the Income Tax Act 2007:
(c)
an amount credited or transferred by the time to a taxpayer’s account with the Commissioner from a tax pooling account under sections RP 17 to RP 21 of that Act
tax payable, at any time, means the amount of tax payable in respect of a tax liability by that time, determined in accordance with the tax laws; and includes an amount of tax that must be withheld or deducted under a tax law and paid to the Commissioner
taxpayer’s paying rate means the rate of interest established and notified as the taxpayer’s paying rate by an Order in Council made under section 120H.
(2)
For the purposes of this Part, when, at any time,—
(a)
the tax paid by a taxpayer exceeds the tax payable, the excess is overpaid tax; and
(b)
the tax payable by a taxpayer exceeds the tax paid, the excess is unpaid tax; and
(c)
an entitlement paid to a person under the final-year fees-free scheme exceeds the amount the person is entitled to, the excess is unpaid tax.
(3)
In the definition of tax paid, paragraph (a)(i) includes tax paid in excess that is applied under either section MZ 5 or section MZ 6 of the Income Tax Act 2004.
Section 120C: inserted, on 26 July 1996, by section 36(1) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 120C(1) date interest starts paragraph (a)(ii): replaced, on 1 April 2019, by section 77(1) (and see section 77(2) for application) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 120C(1) date interest starts paragraph (a)(iib): inserted, on 1 April 2019, by section 77(1) (and see section 77(2) for application) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 120C(1) date interest starts paragraph (a)(iib): amended (with effect on 1 April 2019), on 23 March 2020, by section 220(1) (and see section 220(3) for application) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 120C(1) date interest starts paragraph (a)(iii): inserted, on 1 October 2007 (applying for income years corresponding to 2008–09 and subsequent tax years), by section 242(1)(a) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).
Section 120C(1) date interest starts paragraph (a)(iv): inserted (with effect on 1 January 2025), on 29 March 2025, by section 182(1) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
Section 120C(1) date interest starts paragraph (b): amended (with effect on 5 February 2017), on 21 February 2017, by section 113(a) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
Section 120C(1) date interest starts paragraph (b): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 120C(1) date interest starts paragraph (b): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 120C(1) date interest starts paragraph (b): amended, on 25 September 2000 (applying on and after 1 April 2000), by section 37(1) of the Taxation (FBT, SSCWT and Remedial Matters) Act 2000 (2000 No 34).
Section 120C(1) date interest starts paragraph (b)(i): amended, on 1 October 2007 (applying for income years corresponding to 2008–09 and subsequent tax years), by section 242(1)(b) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).
Section 120C(1) date interest starts paragraph (b)(iii): replaced, on 1 April 2019, by section 77(2) (and see section 77(2) for application) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 120C(1) date interest starts paragraph (b)(iv): inserted, on 1 October 2007 (applying for income years corresponding to 2008–09 and subsequent tax years), by section 242(1)(c) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).
Section 120C(1) date interest starts paragraph (b)(v): inserted, on 1 October 2007 (applying for income years corresponding to 2008–09 and subsequent tax years), by section 242(1)(c) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).
Section 120C(1) date interest starts paragraph (b)(v)(A): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 120C(1) date interest starts paragraph (c): amended (with effect on 5 February 2017), on 21 February 2017, by section 113(b) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
Section 120C(1) date interest starts paragraph (c): amended, on 1 April 2014, by section 114 of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).
Section 120C(1) date interest starts paragraph (c)(i)(A): amended (applying for taxable periods ending on or after 1 April 2018), on 29 March 2018, by section 344(1) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 120C(1) date interest starts paragraph (c)(iii): repealed (with effect on 5 February 2017), on 21 February 2017, by section 113(c) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
Section 120C(1) date interest starts paragraph (d): inserted, on 25 September 2000 (applying on and after 1 April 2000), by section 37(2) of the Taxation (FBT, SSCWT and Remedial Matters) Act 2000 (2000 No 34).
Section 120C(1) date interest starts paragraph (d): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 120C(1) date interest starts paragraph (d): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 120C(1) date interest starts paragraph (d): amended, on 1 April 2003, by section 109(2) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
Section 120C(1) date interest starts paragraph (e): inserted, on 1 April 2003, by section 109(2) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
Section 120C(1) date interest starts paragraph (e): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 120C(1) date interest starts paragraph (f): replaced (with effect on 21 June 2005), on 18 December 2006, by section 195 of the Taxation (Savings Investment and Miscellaneous Provisions) Act 2006 (2006 No 81).
Section 120C(1) date interest starts paragraph (f)(i): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 120C(1) date interest starts paragraph (f)(ii): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 120C(1) date interest starts paragraph (g): inserted, on 1 April 2020, by section 220(2) (and see section 220(3) for application) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 120C(1) interest period paragraph (b)(ii): amended, on 7 October 1998, by section 31(b) of the Taxation (Simplification and Other Remedial Matters) Act 1998 (1998 No 101).
Section 120C(1) interest period paragraph (b)(iii): repealed, on 21 June 2005 (applying for 2004–05 and later tax years), by section 145(2) of the Taxation (Base Maintenance and Miscellaneous Provisions) Act 2005 (2005 No 79).
Section 120C(1) tax paid: replaced, on 6 October 2009, by section 662 of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 120C(1) tax payable: amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 120C(2): amended (with effect on 1 January 2025), on 29 March 2025, by section 182(2) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
Section 120C(2)(c): inserted (with effect on 1 January 2025), on 29 March 2025, by section 182(3) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
Section 120C(3): inserted, on 24 October 2001 (applying to income years from 1997–98 to 2001–02 (both income years inclusive)), by section 220(1) of the Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 (2001 No 85).
Section 120C(3): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 120C(3): amended, on 26 March 2003 (applying for income years beginning with 1997–98 income year and ending with 2001–02 income year), by section 109(4) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
120D Liability to pay interest
(1)
A taxpayer is liable to pay interest on unpaid tax to the Commissioner in accordance with this Part.
(2)
The Commissioner may recover interest payable on unpaid tax as though it were tax (of the same type as the unpaid tax) payable by the taxpayer.
(3)
The Commissioner is liable to pay interest on overpaid tax to a taxpayer in accordance with this Part.
(4)
Interest overpaid by the Commissioner may be recovered in the same manner as income tax that is payable under the Income Tax Act 2007.
Section 120D: inserted, on 26 July 1996, by section 36(1) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 120D(4): replaced, on 24 October 2001 (applying to the 2002–03 and subsequent income years), by section 221(1) of the Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 (2001 No 85).
Section 120D(4): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 120D(4): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
120E Amount of interest payable
(1)
The amount of interest payable—
(a)
by a taxpayer on unpaid tax; or
(b)
by the Commissioner on overpaid tax,—
is calculated for each day in the interest period in accordance with the following formula:
t × r ÷ 365
where—
- t
is the unpaid tax or overpaid tax on which the interest is payable; and
- r
is the Commissioner’s paying rate or the taxpayer’s paying rate applying on the day.
(2)
The amount of interest payable in an interest period, is the sum of the amounts calculated under subsection (1) for each day in the interest period.
(3)
The amount of interest outstanding at any time in an interest period is—
(a)
the sum of the amounts calculated under subsection (1) for each day in the interest period that falls before that time; less
(b)
any interest that has been paid by that time.
(4)
This section is subject to section 120EA.
Section 120E: inserted, on 26 July 1996, by section 36(1) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 120E(4): inserted, on 26 July 1996 (applying to 1997–98 and subsequent income years), by section 461 of the Taxation (Core Provisions) Act 1996 (1996 No 67).
120EA Amount of interest payable to or by life insurers
[Repealed]Section 120EA: repealed, on 1 July 2010, by section 663(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
120F Interest priority and rights of Commissioner
(1)
The Commissioner must apply amounts paid on account of a taxpayer’s liability for unpaid tax and interest for a return period using the following pattern and order:
(a)
apply against interest on the amount of unpaid tax that arises first for the return period (the earliest unpaid tax) until that interest is paid; then
(b)
apply against the earliest unpaid tax, until that tax is paid; then
(c)
apply against the interest on the amount of unpaid tax that arises next for the return period (the next unpaid tax) until that interest is paid; then
(d)
apply against the next unpaid tax, until that tax is paid; then
(e)
apply to each later arising interest and unpaid tax amount, interest first, in time order that relevant unpaid tax amount arises for the return period, until they are paid.
(2)
The Commissioner may apply interest payable by the Commissioner to a taxpayer towards the payment of the taxpayer’s unpaid tax on or after the date the taxpayer furnishes their return of income.
(3)
The Commissioner may apply interest under subsection (2) only if the Commissioner is not prevented, by a tax law, from applying the relevant overpaid tax towards the payment of the tax.
(4)
If, for a period,—
(a)
a taxpayer is liable to pay the Commissioner interest on unpaid tax; and
(b)
the Commissioner is liable to pay the taxpayer interest on overpaid tax,—
the Commissioner may—
(c)
assess the taxpayer for the net amount of interest payable by the taxpayer for the period; or
(d)
pay the taxpayer the net amount of interest payable by the Commissioner for the period.
(5)
In this section, the expressions unpaid tax and overpaid tax include—
(a)
any tax which has not been paid or which has been overpaid; and
(b)
any civil penalty imposed in respect of that tax which has not been paid or which has been overpaid,—
as if the tax and the civil penalty were a single tax type.
Example for section 120F(1) (illustrative only)
On 1 September 2019, an assessment of $100 tax to pay is raised for the 2018–19 tax year. This amount incurs $5 use of money interest. On 1 September 2020 a re-assessment of $120 tax to pay is raised for the 2018–19 tax year along with an additional amount of $3 UOMI. The taxpayer pays the balance of $128. Payments are applied against the $5 use of money interest (i.e. interest on the earliest unpaid amount), then against the $100 tax. Next, payments are applied against the $3 use of money interest on $20 tax to pay, then against the $20 tax.
Section 120F: inserted, on 26 July 1996, by section 36(1) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 120F(1): replaced (with effect on 17 April 2018), on 18 March 2019, by section 78(1) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 120F(2): replaced, on 27 March 2001 (applying on and after 1 April 1998), by section 48(1) of the Taxation (Beneficiary Income of Minors, Services-Related Payments and Remedial Matters) Act 2001 (2001 No 4).
Section 120F example: inserted (with effect on 17 April 2018), on 18 March 2019, by section 78(2) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
120G Payment date
Except where a tax law provides otherwise, interest payable by a taxpayer to the Commissioner on unpaid tax is payable immediately and without the need for a demand.
Section 120G: inserted, on 26 July 1996, by section 36(1) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
120H Setting and varying interest rates
(1)
The Governor-General may from time to time, by Order in Council,—
(a)
specify the criteria and other requirements by and against which interest rates will be set or reset and notified for the purposes of this Part:
(b)
set the Commissioner’s paying rate and taxpayer’s paying rate.
(2)
An order under this section is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).
| Legislation Act 2019 requirements for secondary legislation made under this section | ||||
| Publication | PCO must publish it on the legislation website and notify it in the Gazette | LA19 s 69(1)(c) | ||
| Presentation | The Minister must present it to the House of Representatives | LA19 s 114, Sch 1 cl 32(1)(a) | ||
| Disallowance | It may be disallowed by the House of Representatives | LA19 ss 115, 116 | ||
| This note is not part of the Act. | ||||
Section 120H: inserted, on 26 July 1996, by section 36(1) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 120H(2): inserted, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
120I No right to object to interest
(1)
A taxpayer may not object to or challenge the imposition of interest payable under this Part.
(2)
Subsection (1) does not limit a taxpayer’s right to object to or challenge the taxpayer’s liability to pay tax.
Section 120I: inserted, on 26 July 1996, by section 36(1) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Specific provisions
Heading: inserted, on 26 July 1996, by section 36(1) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
120J Purpose of specific provisions
(1)
The purpose of sections 120K to 120V is to allow the general interest regime contained in this Part to apply to the specific tax or tax regime referred to in those sections.
(2)
The specific rules or applications specified in sections 120K to 120V do not apply to other Parts or sections of this Act, except where a tax law specifically provides that they do.
Section 120J: inserted, on 26 July 1996, by section 36(1) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 120J(1): amended (with effect on 1 April 1997), on 23 September 1997, by section 82 of the Taxation (Remedial Provisions) Act 1997 (1997 No 74).
Section 120J(2): amended (with effect on 1 April 1997), on 23 September 1997, by section 82 of the Taxation (Remedial Provisions) Act 1997 (1997 No 74).
120K Instalments of and due dates for provisional tax
[Repealed]Section 120K: repealed, on 1 October 2007 (applying for income years corresponding to 2008–09 and subsequent tax years), by section 243(1) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).
120KB Provisional tax instalments and due dates generally
(1)
This section applies—
(a)
in a tax year other than a transitional year:
(b)
to a provisional taxpayer who is not a new provisional taxpayer.
(2)
A provisional taxpayer’s residual income tax is due and payable as set out in section RC 9 of the Income Tax Act 2007, but using only the current year residual income tax for the item residual income tax in section RC 10.
(2B)
Despite subsection (2), a provisional taxpayer’s residual income tax is due and payable in 3 instalments, on the dates of instalments B, D, and F for their corresponding income year, if section RC 13(1)(b) or RC 14(1)(b) of the Income Tax Act 2007 applies to the taxpayer.
(3)
If a provisional taxpayer uses a GST ratio to determine the amount of provisional tax payable, and an adjustment to a base amount referred to in section RC 8 of the Income Tax Act 2007 will, or is likely to, change the amount payable, the taxpayer may ask the Commissioner to make the adjustment and reassess their liability.
(4)
For the purposes of this section and sections 120KBB to 120KE, residual income tax means a person’s residual income tax for a tax year as defined in section YA 1 of the Income Tax Act 2007—
(a)
as increased by an amount calculated in relation to the person and the income year under section MF 6(2) of that Act; or
(b)
as reduced by an amount calculated in relation to the person and the income year under section LA 4(1) of that Act.
Section 120KB: inserted, on 1 October 2007 (applying for income years corresponding to 2008–09 and subsequent tax years), by section 243(1) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).
Section 120KB(2): amended (with effect on 1 April 2017), on 23 March 2020, by section 221(1) (and see section 221(2) for application) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 120KB(2B): inserted (with effect on 1 October 2007), on 18 March 2019, by section 79(1) (and see section 79(2) for application) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 120KB(3): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 120KB(4): amended, on 1 April 2017 (applying for the 2017–18 and later income years), by section 114(1) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
Section 120KB(4): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 120KB(4)(a): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 120KB(4)(b): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
120KBB Interest for most standard method provisional taxpayers
(1)
This section applies if, for a tax year and a provisional taxpayer (the person),—
(a)
section 120KE does not apply for the person for the tax year; and
(b)
the person is an interest concession provisional taxpayer; and
(c)
the provisional tax associates of the person that are liable to pay provisional tax—
(i)
are interest concession provisional taxpayers:
(ii)
use, for the tax year, the GST ratio method described in section RC 5(6) of the Income Tax Act 2007:
(iii)
use, for the tax year, the estimation method described in section RC 7 of the Income Tax Act 2007, and have elected to use a net loss under section IZ 8 of that Act for the tax year; and
(d)
there is no provisional tax interest avoidance arrangement in relation to the person.
(2)
If the person pays the amount of the instalments for the tax year other than the last 1, on or before those relevant instalment dates for the tax year in accordance with sections RC 9 and RC 10 of the Income Tax Act 2007, then, despite section 120KB(2) and (2B) of this Act,—
(a)
the person’s residual income tax for the tax year is not due and payable as set out in section RC 9 of the Income Tax Act 2007 for those relevant instalment dates; and
(b)
the amount of their residual income tax minus the total amount of those relevant instalments for the tax year is due and payable on the last instalment date for the tax year. A negative amount is treated as overpaid tax on the last instalment date, with nothing due and payable on the date.
(3)
If the person fails to pay the amount of any instalments for the tax year other than the last 1 on or before the relevant instalment dates for the tax year in accordance with sections RC 9 and RC 10 of the Income Tax Act 2007, then, despite section 120KB(2) and (2B) of this Act,—
(a)
the person’s residual income tax is not due and payable as set out in section RC 9 of the Income Tax Act 2007 for those instalments; and
(b)
the amount of unpaid tax that a person has in relation to each of those instalments is equal to the lesser of the following amounts, treating a negative amount as zero:
(i)
1 divided by the number of instalment dates for the tax year, multiplied by their residual income tax, minus the amount paid in relation to the instalment:
(ii)
the amount they are liable to pay in accordance with sections RC 9 and RC 10 of the Income Tax Act 2007 in relation to the instalment date minus the amount paid in relation to the instalment date; and
(c)
the amount of unpaid tax that a person has in relation to the final instalment is equal to the amount given by section 120KB(2) less the total amount paid for earlier instalments in the tax year. A negative amount is overpaid tax on the final instalment.
(3B)
For a person who uses the standard method, use of money interest and penalties for provisional tax under Parts 7 and 9 are calculated using the lowest of the amounts under sections RC 5(2) and (3) of the Income Tax Act 2007, for instalment dates prior to the date that the taxpayer provides a return of income for the year before the current income year.
(4)
In this Part,—
(a)
interest concession provisional taxpayer means a person that is liable to pay provisional tax for an income year if—
(i)
the person uses 1 of the standard methods described in section RC 5(2) or (3) of the Income Tax Act 2007 for the tax year:
(ii)
[Repealed](b)
provisional tax interest avoidance arrangement means an arrangement involving the manipulation of 1 or more amounts of residual income tax, including a zero amount of residual income tax, with the purpose or effect of defeating the intent and application of this Part:
(c)
provisional tax associate means, for a person (person A),—
(i)
if person A is a company, another company in the same wholly-owned group of companies as person A:
(ii)
if person A is a company, another person that is associated with person A under section YB 3 of the Income Tax Act 2007, treating section YB 3 as requiring 50% voting interests and market value interests instead of 25% and also ignoring section YB 3(3) and (4):
(iii)
if person A is not a company or is a company acting as a trustee, another person that is associated with person A, treating, for the purposes of the definition of associated, section YB 3 as requiring 50% voting interests and market value interests, instead of 25% and also ignoring section YB 3(3) and (4).
Section 120KBB: inserted, on 1 April 2017 (applying for the 2017–18 and later income years), by section 115(1) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
Section 120KBB heading: amended, on 30 March 2021, by section 170 of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
Section 120KBB(1)(a): amended (with effect on 30 March 2022), on 28 March 2024, by section 150(1) (and see section 150(2) for application) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
Section 120KBB(1)(c): replaced (with effect on 15 April 2020), on 16 May 2020, by section 3 of the COVID-19 Response (Further Management Measures) Legislation Act 2020 (2020 No 13).
Section 120KBB(2): amended (with effect on 1 April 2017), on 18 March 2019, by section 80(1) (and see section 80(3) for application) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 120KBB(3): amended (with effect on 1 April 2017), on 18 March 2019, by section 80(2), of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 120KBB(3)(a): amended (with effect on 1 April 2017), on 23 March 2020, by section 222(1) (and see section 222(6) for application) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 120KBB(3)(b): amended (with effect on 1 April 2017), on 23 March 2020, by section 222(2) (and see section 222(6) for application) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 120KBB(3)(b)(ii): amended (with effect on 1 April 2017), on 23 March 2020, by section 222(3) (and see section 222(6) for application) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 120KBB(3)(c): inserted (with effect on 1 April 2017), on 23 March 2020, by section 222(3) (and see section 222(6) for application) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 120KBB(3B): inserted (with effect on 1 April 2018), on 23 March 2020, by section 222(4) (and see section 222(7) for application) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
section 120KBB(4)(a)(ii): repealed (with effect on 1 April 2019), on 23 March 2020, by section 222(5) (and see section 222(8) for application) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 120KBB(4)(c)(iii): amended (with effect on 1 April 2017 and applying for the 2017–18 and later income years), on 29 March 2018, by section 345(1) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
120KBC Interest for AIM method provisional taxpayers
(1)
This section applies if, for a tax year,—
(a)
a person is liable to pay provisional tax for the tax year and uses the AIM method described in section RC 5(5B) of the Income Tax Act 2007; and
(b)
there is no provisional tax interest avoidance arrangement in relation to the person.
(2)
If the person pays the amount of all 6 or 12 instalments, as applicable, on the instalment dates for the tax year in accordance with sections RC 9 and RC 10B of the Income Tax Act 2007, then, despite section 120KB(2) of this Act,—
(a)
the person’s residual income tax for the tax year is not due and payable as set out in section RC 9 of the Income Tax Act 2007; and
(b)
the amount of their residual income tax minus the total amount paid in relation to the instalments for the tax year is due and payable in 1 instalment on their terminal tax date.
(3)
If the person fails to pay the amount of an instalment on the relevant instalment date for the tax year (a failed instalment) in accordance with sections RC 9 and RC 10B of the Income Tax Act 2007, then, despite section 120KB(2) of this Act, the person’s residual income tax for the tax year is not due and payable as set out in section RC 9 of the Income Tax Act 2007 for the instalment date.
Section 120KBC: inserted, on 1 April 2018 (applying for the 2018–19 and later income years), by section 54(1) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
120KC Residual income tax of new provisional taxpayer
(1)
In a tax year other than a transitional year, and for the purposes of this Part, a new provisional taxpayer’s residual income tax is treated as due and payable—
(a)
in 3 equal instalments on the interest instalment dates B, D, and F for the taxpayer’s corresponding income year, if section RC 9(9)(a) of the Income Tax Act 2007 applies:
(b)
in 2 equal instalments on the interest instalment dates, for the corresponding year,—
(i)
D and F, if section RC 9(9)(b)(i) applies; or
(ii)
C and F, if section RC 9(9)(b)(ii) applies:
(c)
in 1 instalment on the interest instalment date F for the taxpayer’s corresponding income year, if section RC 9(9)(c) of that Act applies.
(2)
In this section, a reference to an instalment classified by the alphanumeric designations A to F1 is a reference to an instalment date in the table in Schedule 3, Part A of the Income Tax Act 2007 on which an instalment of provisional tax is payable by a provisional taxpayer for an income year that corresponds to a tax year.
Section 120KC: inserted, on 1 October 2007 (applying for income years corresponding to 2008–09 and subsequent tax years), by section 243(1) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).
Section 120KC(1)(a): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 120KC(1)(b): replaced (with effect on 1 October 2007), on 19 December 2007 (applying for 2008–09 and later income years), by section 236(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 120KC(1)(c): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 120KC(2): amended, on 1 April 2018 (applying for the 2018–19 and later income years), by section 55(1) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
Section 120KC(2): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 120KC example: replaced, on 1 October 2007 (applying for 2008–09 and later income years), by section 196(1) of the Taxation (Savings Investment and Miscellaneous Provisions) Act 2006 (2006 No 81).
Section 120KC example heading: replaced (with effect on 1 October 2007), on 19 December 2007, by section 237 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 120KC example: amended (with effect on 1 April 2008), on 6 October 2009 (applying for 2008–09 and later income years), by section 664(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
120KD Provisional tax instalments in transitional years
(1)
For a transitional year to which Schedule 3, Part B of the Income Tax Act 2007 applies, the residual income tax of a provisional taxpayer, other than a person to whom section 120KE(1) or (3) applies, is due and payable as determined under sections RC 21 to RC 24 of the Income Tax Act 2007.
(1B)
This section does not apply to a person that section 120KBB applies to, unless the person is a new provisional taxpayer.
(2)
A provisional taxpayer in a transitional year is liable for use of money interest for unpaid tax in relation to the instalments of provisional tax payable in the months set out in Schedule 3, Part B of the Income Tax Act 2007. The date interest starts is the day after the day on which payment of the instalment is due under section RC 21 of that Act.
(3)
For the purposes of calculating the amount of interest due in relation to an instalment of provisional tax other than a final instalment, the amount of residual income tax payable on the instalment date is calculated using the formula—
residual income tax × instalment period ÷ months in transitional year.
(4)
In the formula, the instalment period is either—
(a)
4, for provisional taxpayers who pay on the equivalent of instalment dates B, D, and F; or
(b)
6, for provisional taxpayers who pay on the equivalent of instalment dates C and F.
(5)
For the purposes of calculating the amount of interest due in relation to a final instalment of provisional tax, the amount of residual income tax payable is the residual income tax for the tax year minus any amount treated as due on an instalment date referred to in subsection (3).
(6)
In this section, a provisional taxpayer includes a new provisional taxpayer.
Example
Section 120KD
Mr Yellow, who has a March balance date, decides to change to a May balance date. The transitional year is 14 months long. He starts business on 31 July, estimating provisional tax at $15,000 for the income year. At the end of the year, Mr Yellow’s residual income tax is $20,000. He is not subject to GST.
Instalments in transitional year: 28th day of 5th, 9th, and 13th months after balance date, and final instalment on 28th day of month following final month in transitional year (s MB 20(2) and Schedule 13, Part B Income Tax Act 2004). But first business day falls within 30 days of the date that would be the first instalment, 28 August (s MB 20(4)(a) of that Act), so no instalment is due. The April instalment only is due on 7 May.
Amounts payable on the instalment dates are calculated under s MB 22 of that Act.
First instalment due 15 January: $15,000 × 4/14 = $4,285
Second instalment due 7 May: $15,000 × 8/14 − $4,285 = $4,286
Final instalment due 28 June: $15,000 − $8,571 = $6,429.
Three interest start dates apply: 16 January, 8 May, and 29 June (s 120KD(2)).
First instalment 15 January on RIT: $20,000 × 4/14 = $5,714
interest payable from 16 January on: ($5,714 − $4,285) = $1,429
Second instalment 7 May on RIT: $20,000 × 4/14 = $5,714
interest payable from 8 May on: ($5,714 − $4,286) = $1,428
Final instalment 28 June on RIT: $20,000 − ($5,714 + $5,714) = $8,572
interest payable from 29 June on RIT: ($8,572 − $6,429) = $2,143.
Section 120KD: inserted, on 1 October 2007 (applying for income years corresponding to 2008–09 and subsequent tax years), by section 243(1) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).
Section 120KD(1): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 120KD(1): amended (with effect on 1 October 2007), on 19 December 2007 (applying for 2008–09 and later income years), by section 238(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 120KD(1B): inserted, on 1 April 2018 (applying for the 2017–18 and later income years), by section 346(1) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 120KD(1B): amended, on 1 April 2018 (applying for the 2018–19 and later income years), by section 347(1) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 120KD(2): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 120KD(2): amended (with effect on 1 October 2007), on 19 December 2007 (applying for 2008–09 and later income years), by section 238(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 120KD example: replaced, on 1 October 2007 (applying for 2008–09 and later income years), by section 197(1) of the Taxation (Savings Investment and Miscellaneous Provisions) Act 2006 (2006 No 81).
Section 120KD example heading: replaced (with effect on 1 October 2007), on 19 December 2007, by section 239 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
120KE Provisional tax and rules on use of money interest
(1)
A provisional taxpayer’s residual income tax for a tax year is due and payable in 1 instalment on their terminal tax date if—
(a)
they are required to calculate instalments under the standard methods described in section RC 5(2) and (3) of the Income Tax Act 2007 or they have no obligation to pay provisional tax for the tax year under section RC 3(3) of that Act; and
(b)
their residual income tax is less than $60,000 for the tax year; and
(c)
they have not estimated their residual income tax under section RC 7 of the Income Tax Act 2007 for the tax year; and
(cb)
they have not used the AIM method under section RC 7B of that Act in the tax year to determine the amount of provisional tax payable for the tax year; and
(d)
they have not used a GST ratio under section RC 8 of that Act in the tax year to determine the amount of provisional tax payable for the tax year; and
(e)
there is no provisional tax interest avoidance arrangement in relation to the person.
(2)
When subsection (1) applies, in relation to the payment of provisional tax under section RC 9(3) or (5), or RC 21 of the Income Tax Act 2007, the provisional taxpayer—
(a)
is not liable for use of money interest under section 120D for unpaid tax until their terminal tax date:
(b)
is not entitled to use of money interest under section 120D for overpaid tax until their terminal tax date.
(3)
A provisional taxpayer’s residual income tax for a tax year is due and payable in 1 instalment on their terminal tax date if—
(a)
they use a GST ratio to determine the amount of provisional tax payable for the tax year; and
(b)
they use the GST ratio as the determination method for the whole of the corresponding income year.
(4)
When subsection (3) applies, in relation to the amount of provisional tax paid or payable for the period in the corresponding income year in which the GST ratio is used, the provisional taxpayer—
(a)
is not liable for use of money interest under section 120D for unpaid tax until their terminal tax date:
(b)
is not entitled to use of money interest under section 120D for overpaid tax until their terminal tax date.
(5)
Subsections (6) and (7) apply if, under section RC 18 of the Income Tax Act 2007, a provisional taxpayer changes the way they determine the amount of provisional tax.
(6)
A taxpayer is not entitled to use of money interest for overpaid tax under section 120D until the later of—
(a)
the day after the date—
(i)
on which they inform the Commissioner under section RC 18(2); or
(ii)
set out in section RC 18(3) (as the case may be):
(b)
the day after their last ratio instalment date.
(7)
For debit interest, the taxpayer is liable for use of money interest—
(a)
for the period of the tax year in which they use the GST ratio, from the later of the dates set out in subsection (6):
(b)
for the period of the tax year in which they estimate their provisional tax, from whichever dates of instalments B, D, and F for their corresponding income year occur 30 days after their last ratio instalment date.
(8)
In this section, a reference to an instalment classified by the alphanumeric designations A to F1 is a reference to a date in the table in Schedule 3, Part A of the Income Tax Act 2007 on which an instalment of provisional tax is payable by a provisional taxpayer for an income year that corresponds to a tax year.
Example
Section 120KE
Dr Beige starts the income year (March balance date) using a GST ratio to determine the amount of provisional tax payable. He makes payments in June and August. On 10 September 2007, Dr Beige decides to change his determination method. He must then estimate his residual income tax for the income year (s MB 17(5) Income Tax Act 2004), and pay 2 instalments under the estimation method on instalment dates D and F (s MB 6(5) of that Act). Dr Beige provides a return for the income year that shows residual income tax of $30,000.
Four interest start dates apply:
for credit interest, the interest start date is 11 September 2007 (s 120KE(6)):
for debit interest, the interest start dates are:
11 September for unpaid instalments under the GST ratio method (s 120KE(7))
16 January 2008 for unpaid instalments under estimation method (s 120C(1)(a)(i)(A))
8 May 2008 for unpaid instalments under estimation method (s 120C(1)(a)(i)(A)).
Files return for year and RIT is $30,000
Balance is $25,500 ($30,000 − $4,500)
Estimation instalments: interest calculated on unpaid tax of:
on 16 Jan 2008 on $9,750 ($12,750 − $3,000) (s 120C(2)(b))
on 8 May 2008 on $9,750 ($12,750 − $3,000) (s 120C(2)(b)).
Section 120KE: inserted, on 1 October 2007 (applying for income years corresponding to 2008–09 and subsequent tax years), by section 243(1) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).
Section 120KE(1)(a): replaced, on 30 March 2022, by section 206(1) (and see section 206(2) for application) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section 120KE(1)(b): amended, on 1 April 2017 (applying for the 2017–18 and later income years), by section 116(2) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
Section 120KE(1)(c): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 120KE(1)(cb): inserted, on 1 April 2018 (applying for the 2018–19 and later income years), by section 56(1) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
Section 120KE(1)(d): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 120KE(1)(e): replaced, on 1 April 2017 (applying for the 2017–18 and later income years), by section 116(3) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
Section 120KE(2): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 120KE(5): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 120KE(6): replaced (with effect on 1 October 2007), on 19 December 2007 (applying for 2008–09 and later income years), by section 240(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 120KE(6)(a)(i): amended, on 2 June 2016, by section 160 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section 120KE(8): amended, on 1 April 2018 (applying for the 2018–19 and later income years), by section 56(2) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
Section 120KE(8): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
120KF Tolerance for provisional tax instalments
[Repealed]Section 120KF: repealed, on 30 March 2022, by section 207(1) (and see section 207(2) for application) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
120L Meaning of unpaid tax and overpaid tax for provisional tax purposes
(1)
For the purposes of determining amounts of unpaid tax and overpaid tax in respect of instalment dates for a tax year, a taxpayer’s residual income tax is to be calculated in accordance with the definition of that term in section 120KB(4).
(2)
If a taxpayer makes a payment, the Commissioner must apply the payment towards the provisional tax that is due on the earliest instalment date on which there is an unpaid amount, and then in order from earliest to latest.
(2B)
For the purposes of this section, provisional tax includes late payment penalties charged in relation to the provisional tax.
(3)
[Repealed]Section 120L: inserted, on 26 July 1996, by section 36(1) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 120L(1): amended, on 1 October 2007 (applying for income years corresponding to 2008–09 and subsequent tax years), by section 244(1) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).
Section 120L(1): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 120L(2): replaced (with effect on 1 April 2018), on 23 March 2020, by section 224(1) (and see section 224(4) for application) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 120L(2B): inserted, on 1 April 2020, by section 224(2) (and see section 224(5) for application) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 120L(3): repealed (with effect on 1 April 2018), on 23 March 2020, by section 224(3) (and see section 224(4) for application) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
120LB Meaning of unpaid tax and overpaid tax for certain transferees under AIM method
[Repealed]Section 120LB: repealed (with effect on 1 April 2019), on 23 March 2020, by section 225(1) (and see section 225(2) for application) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
120M Where provisional tax paid by company does not count as overpaid tax
No amount of tax paid by a company is to be treated as overpaid tax to the extent that—
(a)
the tax is provisional tax paid by the company for a tax year in excess of the company’s residual income tax for the tax year, and is retained by the Commissioner under sections RM 13 to RM 17, RM 32, and RZ 6 of the Income Tax Act 2007 at any time after the company would, but for those sections, be entitled to a refund of the tax; or
(b)
the tax would not be in excess of the company’s residual income tax for a tax year, but for the payment of an instalment of provisional tax being satisfied by an amount of further income tax in accordance with section RC 35 of the Income Tax Act 2007.
Section 120M: inserted, on 26 July 1996, by section 36(1) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 120M(a): amended (with effect on 1 April 2008), on 6 October 2009, by section 665 of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 120M(a): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 120M(a): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 120M(b): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 120M(b): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
120N Variation to definition of date interest starts for provisional tax
Where the due date for the payment of tax is an instalment date for provisional tax, the definition of date interest starts is to be construed as if the words “the later of the following days”
and subparagraph (ii) were omitted from paragraph (b) of that definition.
Section 120N: inserted, on 26 July 1996, by section 36(1) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
120O Variation to definition of date interest starts
The definition of date interest starts is to be construed as if the words “the later of the following days”
and subparagraph (ii) were omitted from paragraph (b) of that definition when—
(a)
a payment required by sections RA 5 and RD 4 of the Income Tax Act 2007 is due to be paid to the Commissioner no later than 5 April in a year:
(b)
a payment required by sections RA 5 and RD 23(3) of that Act is due to be paid to the Commissioner no later than 20 April in a year:
(c)
a payment required by sections RA 6, RE 20, and RE 21 of that Act is due to be paid to the Commissioner no later than 20 April in a year:
(d)
a payment required by sections RA 6 and RF 13 of that Act is due to be paid to the Commissioner no later than 20 April in a year.
(e)
[Repealed]Section 120O: replaced (with effect on 1 April 1997), on 23 September 1997, by section 84 of the Taxation (Remedial Provisions) Act 1997 (1997 No 74).
Section 120O(a): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 120O(b): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 120O(c): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 120O(d): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 120O(e): repealed (with effect on 30 June 2009), on 6 October 2009 (applying for all income years beginning on or after 1 July 2009), by section 666(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
120OB Variation to definitions for determining interest chargeable or payable to PAYE intermediaries
(1)
Despite section 120C, this section sets out the definitions that apply for the purpose of determining interest chargeable or payable to a person acting as a PAYE intermediary for an employer, if the employer has—
(a)
paid to the person the salary or wages relating to an employee as required by sections RP 9 to RP 11 of the Income Tax Act 2007; and
(b)
provided to the person the information requested by the person, as required by section RP 8(b) of that Act.
(2)
In this Part—
Commissioner’s paying rate means the rate of interest established and notified as the Commissioner’s paying rate by an Order in Council made under section 120H
date interest starts—
(a)
for unpaid tax means—
(i)
if a PAYE intermediary pays too little tax by a due date—
(A)
the day after the due date for payment of the tax; or
(B)
where the due date is a new due date, the day after the original due date for payment of the tax:
(ii)
if the Commissioner refunds tax which should be kept and taken into account in satisfying tax payable by a PAYE intermediary on a due date, the day after the day the Commissioner refunds the tax; and
(b)
for overpaid tax, if a PAYE intermediary pays too much tax by or after a due date—
(i)
the day after the later of the due date for payment of the tax and the date the payment is made; or
(ii)
where the due date is a new due date, the day after the later of the original due date for payment of the tax and the date on which the payment is made
interest paid to a taxpayer means interest credited to the PAYE intermediary; and interest paid and paid have corresponding meanings
interest period—
(a)
for unpaid tax, means the period beginning on the date interest starts and ending on the date the tax is paid or credited as paid (both dates inclusive):
(b)
for overpaid tax, means the period beginning on the date interest starts and ending on the date the tax is refunded by the Commissioner (both dates inclusive); and
tax paid, at any time, means the amount of tax that at the time—
(a)
has been paid or credited as paid for an amount of tax that must be withheld or deducted under a tax law; and
(b)
has not been refunded by the Commissioner
tax payable, at any time, means an amount of tax that at the time is due to be withheld or deducted under a tax law and paid to the Commissioner
taxpayer’s paying rate means the rate of interest established and notified as the taxpayer’s paying rate by an Order in Council made under section 120H.
(3)
For the purposes of this Part, where, at any time—
(a)
the tax paid by a PAYE intermediary exceeds the tax payable, the excess is overpaid tax; and
(b)
the tax payable by a PAYE intermediary exceeds the tax paid, the excess is unpaid tax.
Section 120OB: inserted, on 26 March 2003 (applying for pay periods beginning on and after 1 April 2004), by section 110(1) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
Section 120OB(1)(a): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 120OB(1)(b): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 120OB(2) tax paid paragraph (a): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 120OB(2) tax payable: amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
120OC Application of sections 120A, 120AA and 120D to 120I to PAYE intermediaries
(1)
Sections 120A, 120AA and 120D to 120I apply to a PAYE intermediary in their capacity as a PAYE intermediary as if references to a taxpayer were read as references to a PAYE intermediary.
(2)
Despite subsection (1), sections 120EA, 120F(2) and 120F(3) do not apply to a PAYE intermediary.
Section 120OC: inserted, on 26 March 2003 (applying for pay periods beginning on and after 1 April 2004), by section 110(1) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
120OD Application of sections 120A, 120AA and 120C to 120I to intermediaries who operate tax pooling accounts
(1)
Sections 120A, 120AA and 120C to 120I apply to an intermediary who operates a tax pooling account in accordance with sections RP 17 to RP 21 of the Income Tax Act 2007 in their capacity as an intermediary as if references to a taxpayer were read as references to an intermediary.
(2)
Despite subsection (1), sections 120EA, 120F(2) and 120F(3) do not apply to an intermediary.
Section 120OD: inserted, on 1 April 2003, by section 111 of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
Section 120OD(1): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
120OE Interest paid on deposits in tax pooling accounts
(1)
Interest paid by the Commissioner on an amount deposited in a tax pooling intermediary’s tax pooling account accrues to the benefit of the intermediary from the date of the deposit to, as applicable,—
(a)
the date the amount is refunded; or
(b)
the date of a transfer under section RP 19 of the Income Tax Act 2007.
(2)
The interest referred to in subsection (1) is payable to the intermediary on the date the amount is credited to another account with the Commissioner, or on the date the amount is refunded to the intermediary.
(3)
A deposit in a tax pooling account is treated as tax paid by the intermediary for the purposes of calculating use of money interest, but for no other purpose.
(4)
Subsection (5) applies when a payment is made either by a tax pooling intermediary to their client, or by a client to their tax pooling intermediary, and the payment represents a difference between funds held in a tax pooling account for a period of time and an amount paid for the entitlement to the funds.
(5)
The payment is treated as—
(a)
a payment of interest to the person who derives the payment for the purposes of section CC 4 of the Income Tax Act 2007, the RWT rules, and the NRWT rules:
(b)
expenditure incurred in deriving the income of the person making the payment.
Compare: 2004 No 35 ss MBA 5(5), (6), MBA 9
Section 120OE: inserted, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 120OE(1): replaced, on 6 October 2009, by section 667 of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
120P Spreading tax liability or apportioning income back over earlier income years
(1)
If, under a tax law,—
(a)
a taxpayer elects to spread a tax liability over the tax year in respect of which the election is made (election tax year) and 1 or more earlier tax years; or
(b)
the Commissioner apportions income over a tax year (apportionment tax year) and 1 or more earlier tax years,—
to the extent the election or apportionment alters the taxpayer’s liability to tax in a tax year that precedes the election tax year or apportionment tax year, as the case may be (the extent of that altered liability being called affected tax), no interest is payable under this Part on the affected tax before the taxpayer’s terminal tax date for the election tax year or apportionment tax year.
(2)
If income of a taxpayer is allocated to a tax year under subsection (1)(b), the taxpayer shall allocate to the tax year that proportion of deductions allowed in the allocation tax year which the allocated income represents as a proportion of the income for the allocation tax year calculated without allocation.
Section 120P: inserted, on 26 July 1996, by section 36(1) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 120P heading: amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 120P(1): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 120P(1)(a): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 120P(1)(b): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 120P(2): inserted, on 23 September 1997 (deemed to apply to 1997–98 and subsequent income years), by section 144(2) of the Taxation (Remedial Provisions) Act 1997 (1997 No 74).
Section 120P(2): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
120PA Applying tax credit for supplementary dividend to earlier income year
If a taxpayer sets off a tax credit for a supplementary dividend against its income tax liability for an earlier income year under section LP 3(3) of the Income Tax Act 2007, the amount set off does not reduce the taxpayer’s tax payable for that year for the purpose of this Part.
Section 120PA: inserted, on 8 September 1999 (applying to 1997–98 and subsequent income years), by section 71(1) of the Taxation (Remedial Matters) Act 1999 (1999 No 98).
Section 120PA heading: amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 120PA: amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
120Q Due date for underestimation penalty tax
For the purposes of this Part, the due date for the payment by a taxpayer of underestimation penalty tax is deemed to be the date of instalment F set out in Schedule 3, Part A of the Income Tax Act 2007, for the taxpayer’s corresponding income year.
Section 120Q: inserted, on 26 July 1996, by section 36(1) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 120Q: amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 120Q: amended, on 1 October 2007 (applying for income years corresponding to 2008–09 and subsequent tax years), by section 246(1) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).
120R Special provision for FDP
[Repealed]Section 120R: repealed (with effect on 30 June 2009), on 6 October 2009 (applying for all income years beginning on or after 1 July 2009), by section 668(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
120S Amount in nature of interest to be added to fringe benefit tax paid on annual or income year basis
[Repealed]Section 120S: repealed, on 25 September 2000 (applying on 1 April 2001, for an employer who pays fringe benefit tax on an annual basis; and to 2001–2002 income year, for an employer who pays fringe benefit tax on an income year basis), by section 38(1) of the Taxation (FBT, SSCWT and Remedial Matters) Act 2000 (2000 No 34).
120T Interest on deferrable tax
(1)
Interest continues to accrue on deferrable tax even though a taxpayer has or may have no liability at the time to pay the deferrable tax.
(2)
[Repealed]Section 120T: inserted, on 26 July 1996, by section 36(1) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 120T(2): repealed, on 26 March 2003 (applying on and after 1 April 2003), by section 112(1) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
120U Bond provided for obligation to withhold or deduct amount of tax
If—
(a)
under a tax law, a taxpayer provides the Commissioner with a bond or other security so that the taxpayer is not required to withhold or deduct an amount of tax from a payment made to any person; and
(b)
the Commissioner subsequently determines that the payment was liable to have an amount of tax withheld or deducted,—
the due date for the purpose of the definition of date interest starts for withholding or deducting the amount of tax is the date on which the amount withheld or deducted would have been payable to the Commissioner, if a bond or other security had not been provided.
Section 120U: inserted, on 26 July 1996, by section 36(1) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 120U heading: amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 120U: amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 120U(a): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 120U(b): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
120V Interest on overpaid RWT
If the Commissioner is required to make a refund of overpaid RWT under section RM 8 of the Income Tax Act 2007, no interest shall be payable by the Commissioner under section 120D(3) on the excess refunded.
Section 120V: inserted (with effect on 1 April 1997), on 23 September 1997, by section 86 of the Taxation (Remedial Provisions) Act 1997 (1997 No 74).
Section 120V heading: amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 120V: amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
120VB Interest on overpaid AIM method provisional tax
No interest shall be payable by the Commissioner under section 120D(3) on an amount of AIM method provisional tax described in section RM 6B(2) of the Income Tax Act 2007.
Section 120VB: inserted, on 1 April 2018 (applying for the 2018–19 and later income years), by section 58(1) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
120VC Interest on some provisional tax
No interest shall be payable by the Commissioner under section 120D(3) on an amount of provisional tax prior to the last instalment if section 120KBB applies for the provisional tax.
Section 120VC: inserted, on 1 April 2017 (applying for the 2017–18 and later income years), by section 117(1) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
120VD Interest on tax credits for charitable or other public benefit gifts
No interest shall be payable by the Commissioner under section 120D(3) on an amount of tax credit calculated under section LD 1 of the Income Tax Act 2007.
Section 120VD: inserted, on 1 April 2019, by section 82 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
120VE Interest on FamilyBoost tax credits
No interest shall be payable by the Commissioner under section 120D(3) on an amount of FamilyBoost tax credit calculated under subpart MH of the Income Tax Act 2007.
Section 120VE: inserted (with effect on 1 July 2024), on 29 March 2025, by section 183 of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
120W Commissioner’s official opinions
(1)
A taxpayer that, but for this section, is liable to pay interest on unpaid tax to the Commissioner, is not liable to pay that interest to the extent to which it arises because they relied on a Commissioner’s official opinion.
(2)
Subsection (1) applies if the relevant Commissioner’s official opinion was given by the Commissioner on or after the day on which the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 receives the Royal assent.
Section 120W: inserted, on 7 September 2010, by section 169 of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
120X Petroleum miners’ tax losses
[Repealed]Section 120X: repealed, on 1 April 2018 (applying for the 2018–19 and later income years), by section 350(1) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
121 Interest to be charged where residual income tax exceeds provisional tax
[Repealed]Section 121: repealed, on 26 July 1996, by section 36(1) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
122 Interest on tax overpaid
[Repealed]Section 122: repealed, on 26 July 1996, by section 36(1) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
123 Amount in nature of interest to be added to fringe benefit tax paid on annual or income year basis
[Repealed]Section 123: repealed, on 26 July 1996, by section 36(1) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
124 Interest to be charged and payable with respect to certain dividend withholding payments
[Repealed]Section 124: repealed, on 26 July 1996, by section 36(1) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Part 7B Third-party providers
Part 7B: inserted, on 18 March 2019, by section 84 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
124B What this Part does
What this Part does
(1)
This Part sets out the classes of persons who—
(a)
may apply to the Commissioner to be listed or approved, or may notify or inform the Commissioner of their status as, a provider of services to other persons in relation to—
(i)
their tax affairs:
(ii)
their social policy entitlements and obligations:
(b)
may be nominated by a person to act on their behalf in relation to—
(i)
their tax affairs:
(ii)
their social policy entitlements and obligations:
(c)
may notify the Commissioner of their intermediary status in relation to certain tax types.
Classes
(2)
The classes are—
(a)
tax agents, see section 124C:
(b)
representatives, see section 124D:
(c)
nominated persons, see section 124F:
(d)
PAYE intermediaries, see sections 124H to 124R:
(e)
tax pooling intermediaries, see sections 124S to 124X:
(f)
approved AIM providers, see sections 124Y to 124ZE:
(g)
RWT proxies, see section 124ZF.
Section 124B: inserted, on 18 March 2019, by section 84 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Tax agents, representatives, and nominated persons
Heading: inserted, on 18 March 2019, by section 84 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
124C Tax agents
Listing
(1)
The Commissioner must compile and maintain a list of persons who are tax agents.
Applying for listing as tax agent
(2)
A person may apply to the Commissioner to be listed as a tax agent if they—
(a)
meet the requirements of subsection (3); and
(b)
for a person who is not a natural person, provide the information required under section 124E.
Eligibility requirements
(3)
A person is eligible to be listed as a tax agent if they—
(a)
prepare the returns of income required to be filed for 10 or more other persons; and
(b)
are—
(i)
a person carrying on a professional public practice:
(ii)
a person carrying on a business, occupation, or employment in which returns of income are prepared and filed:
(iii)
the Maori Trustee.
Requirement to list
(4)
The Commissioner must list the person as a tax agent if the Commissioner is satisfied by the available information that—
(a)
the person meets the requirements of subsection (3); and
(b)
listing the person as a tax agent would not adversely affect the integrity of the tax system.
Notification of listing
(5)
The Commissioner must notify the person when they are listed and the listing takes effect on a date set out in the notice.
Notification of refusal to list
(6)
For the notification requirements applying when a person does not meet the eligibility requirements, or does not provide the required information under subsection (2)(b) or meet the requirements of subsection (4)(b), see section 124G(1) and (5).
Section 124C: inserted, on 18 March 2019, by section 84 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
124D Representatives
Requirements for representatives
(1)
A person (a representative) may represent another person, acting on their behalf in relation to their tax affairs or their social policy entitlements and obligations, or both, if they—
(a)
meet the requirements of subsection (2); and
(b)
for a person who is not a natural person, provide the information required under section 124E(1) and (3); and
(c)
are approved as a representative by the Commissioner under subsection (3).
Eligibility requirements
(2)
A person is eligible to be a representative if they—
(a)
have signed authorities to act for 10 or more other persons in relation to their tax affairs or social policy entitlements and obligations, or both; and
(b)
are—
(i)
a person in a business, occupation, or employment in which they act on behalf of other persons in relation to their tax affairs or social policy entitlements and obligations, or both:
(ii)
a person carrying on a professional public practice dealing in matters relating to tax and social policy assistance:
(iii)
a person in a business, occupation, or employment in which they provide budget advisory services to other persons or claim entitlements to social policy assistance on behalf of other persons.
Requirement to approve
(3)
The Commissioner must approve the person as representing another person if the Commissioner is satisfied by the available information that—
(a)
the person meets the requirements of subsection (2); and
(b)
approving the person as a representative would not adversely affect the integrity of the tax system.
Notification of approval
(4)
The Commissioner must notify the person when they have been approved as a representative under subsection (3), and the approval takes effect on a date set out in the notice.
Notification of removal of status
(5)
For the notification requirements applying when a person does not meet the eligibility requirements, or does not provide the required information under subsection (1)(b) or meet the requirements of subsection (3)(b), see section 124G(2) and (6).
Examples
For the purposes of section 124D(2)(b), examples of the activities that might be undertaken by a representative are—
filing and preparing tax returns
setting up instalment arrangements
managing a person’s correspondence with Inland Revenue.
Section 124D: inserted, on 18 March 2019, by section 84 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
124E Information requirements for tax agents and representatives
Information requirements for certain entities
(1)
If the person applying to be a tax agent or a representative is not a natural person, they must provide the Commissioner with the names of the following:
(a)
for an entity that is a body corporate other than a closely-held company, each person who has the duties of tax manager, chief financial officer, chief executive officer, or director:
(b)
for a closely-held company, each shareholder:
(c)
for a partnership, each partner:
(d)
for an unincorporated body, each member.
No previous information or inaccurate information
(2)
Subsection (1) also applies when a tax agent or a representative is a person other than a natural person who—
(a)
has not previously provided the information referred to in subsection (1) to the Commissioner:
(b)
has previously provided the information referred to in subsection (1) but the information is no longer accurate.
Further information
(3)
In relation to both natural persons and persons other than natural persons, before deciding whether to list a person as a tax agent or to approve a person as a representative, the Commissioner may ask them for further information in relation to their application, and may obtain information relating to them from other persons.
Changes in information
(4)
In relation to the requirement to provide names under subsection (1), the person must notify the Commissioner of any changes in the information held by the Commissioner. The notification must be made within 12 months after the date of the change of person, shareholder, partner, or member, as applicable.
Section 124E: inserted, on 18 March 2019, by section 84 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
124F Nominated persons
Requirements for nominated persons
(1)
A person may nominate another person (a nominated person) to act for them in relation to their tax affairs or social policy entitlements and obligations, or both, by—
(a)
informing the Commissioner of the nomination; and
(b)
providing the following information:
(i)
their name, contact address, and tax file number; and
(ii)
the name of the nominated person, and any other information that may lead the Commissioner to be satisfied about the identity of the nominated person; and
(iii)
the relevant tax types or social policy entitlements and obligations in relation to which the nominated person intends to act for them; and
(iv)
the relevant start and end dates, as applicable, applying in relation to the tax types and social policy entitlements and obligations.
When person making nomination is not natural person
(2)
For the purposes of subsection (1), if the person making the nomination is not a natural person, they must provide the name and position of a natural person for the person who is making the nomination.
Section 124F: inserted, on 18 March 2019, by section 84 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
124G Refusal, removal, or disallowance of status of tax agents, representatives, and nominated persons
Refusal to list persons as tax agents
(1)
The Commissioner must refuse to list a person on the list of tax agents if the Commissioner is satisfied that—
(a)
the person does not meet a requirement of section 124C(3):
(b)
listing the person would adversely affect the integrity of the tax system.
Discretion to remove or to disallow persons as tax agents or representatives
(2)
The Commissioner may remove a person from the list of tax agents, or may disallow a person’s approval as a representative, if the Commissioner considers that—
(a)
the person does not meet the relevant eligibility requirements:
(b)
continuing to allow the person to act on behalf of another person in relation to their tax affairs or their social policy entitlements and obligations, or both, would adversely affect the integrity of the tax system.
Discretion to disallow persons as nominated persons
(3)
The Commissioner may disallow a person’s status as a nominated person if the Commissioner considers that—
(a)
the person is not a person excluded under subsection (4) but who is acting—
(i)
in a fee-earning or other professional capacity for another person:
(ii)
for multiple persons, whether in a fee-earning or other capacity; and
(b)
continuing to allow the person to act on behalf of another person in relation to their tax affairs or their social policy entitlements and obligations, or both, would adversely affect the integrity of the tax system.
Certain family members excluded
(4)
For the purposes of subsection (3)(a), the persons excluded are—
(a)
a spouse, civil union partner, or de facto partner:
(b)
a relative, that is, another person connected with the person within 2 degrees of a relationship.
Notification of refusal to list
(5)
For the purposes of subsection (1), the Commissioner must—
(a)
notify the person of the refusal:
(b)
consider any arguments that are provided within 30 days from the date of the notice or, if appropriate in the circumstances, a later date set by the Commissioner.
Notification of exercise of discretion to remove or disallow
(6)
For the purposes of subsection (2) or (3), the Commissioner must—
(a)
notify the person of the Commissioner’s intention to exercise the discretion:
(b)
consider any arguments against the Commissioner’s intention to exercise the discretion that are provided within 30 days from the date of the notice or, if appropriate in the circumstances, a later date set by the Commissioner.
Integrity concerns
(7)
The procedural requirements set out in subsection (6) may be disregarded if the Commissioner considers it necessary in the circumstances to protect the integrity of the tax system. However, for the purposes of subsections (2) and (3), the Commissioner must notify the person that, as applicable,—
(a)
they have been removed from the list of tax agents:
(b)
their status has been disallowed as a representative or nominated person.
Effective date
(8)
Having considered any arguments provided under subsection (6)(b), the Commissioner must notify a person on taking an action to remove or disallow the status of tax agent, representative, or nominated person. The removal or disallowance, as applicable, takes effect on the date of the notice. However, if the Commissioner disregards the requirement to notify the person for the reason set out in subsection (7), the effective date is the date of the notification under that subsection.
Section 124G: inserted, on 18 March 2019, by section 84 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 124G(4)(b): amended, on 1 April 2023, by section 194 of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 124G(6)(a): amended, on 23 March 2020, by section 226(1) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 124G(6)(b): amended, on 23 March 2020, by section 226(2) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 124G(7) heading: replaced, on 23 March 2020, by section 226(3) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 124G(7): replaced, on 23 March 2020, by section 226(3) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 124G(8): replaced, on 23 March 2020, by section 226(4) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
PAYE intermediaries
Heading: replaced (with effect on 1 April 2008), on 6 October 2009 (applying for tax on income derived in 2008–09 or later income years), by section 598(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
124H PAYE intermediaries
(1)
A person who meets the requirements of section 124K may apply under section 124I to the Commissioner for approval to become a PAYE intermediary.
(2)
[Repealed]Compare: 2004 No 35 ss NBA 1, NBB 3
Section 124H: inserted, as section 15C (with effect on 1 April 2008), on 6 October 2009 (applying for tax on income derived in 2008–09 or later income years), by section 598(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 124H: renumbered, on 18 March 2019, by section 9(2) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 124H heading: replaced, on 1 April 2020, by section 85(1) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 124H(1): amended, on 18 March 2019, by section 85(2) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 124H(2): repealed, on 1 April 2020, by section 85(3) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
124I Application for approval as PAYE intermediary
(1)
In order to become a PAYE intermediary, a person must—
(a)
meet the requirements of section 124K; and
(b)
have established a trust account that meets the requirements of section RP 6 of the Income Tax Act 2007; and
(c)
operate systems to protect the personal information and payment details that are obtained in the course of running the account.
(2)
The Commissioner may approve an application if the Commissioner is satisfied that the applicant—
(a)
will comply with the PAYE rules and the ESCT rules if they assume an employer’s obligations under those rules; and
(b)
has systems to allow them to make payments and provide information in the format required by the Commissioner.
(3)
The Commissioner may approve a person as a PAYE intermediary for a set period.
Compare: 2004 No 35 s NBA 2(1)(a)–(c), (2), (3)
Section 124I: inserted, as section 15D (with effect on 1 April 2008), on 6 October 2009 (applying for tax on income derived in 2008–09 or later income years), by section 598(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 124I: renumbered, on 18 March 2019, by section 9(2) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 124I(1)(a): amended, on 18 March 2019, by section 113 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
124J Revocation of approval
(1)
The Commissioner may revoke an approval given under section 124I if the person—
(a)
does not comply with the PAYE rules:
(b)
does not comply with the ESCT rules when they have assumed an employer’s obligations under those rules:
(c)
is no longer fit to be a PAYE intermediary because they do not meet the requirements of section 124K:
(d)
when they are not a natural person, has been put into liquidation or receivership:
(e)
when they are a company, is no longer registered in New Zealand.
(2)
If the Commissioner revokes an approval under subsection (1), the Commissioner must notify the person, and any employer for whom the person is a PAYE intermediary, of the revocation and its effective date. The effective date must not be less than 14 days from the date of notification.
(3)
A decision by the Commissioner under this section is not open to challenge.
Compare: 2004 No 35 s NBA 2(4)
Section 124J: inserted, as section 15E (with effect on 1 April 2008), on 6 October 2009 (applying for tax on income derived in 2008–09 or later income years), by section 598(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 124J: renumbered, on 18 March 2019, by section 9(2) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 124J(1): amended, on 18 March 2019, by section 113 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 124J(1)(c): amended, on 18 March 2019, by section 113 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 124J(2): amended (with effect on 1 April 2008), on 24 February 2016, by section 246 of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
124K Fitness of applicants
(1)
This section applies for the purposes of section 124I to the following:
(a)
an applicant who is a natural person or a corporation sole:
(b)
each member of an applicant that is an unincorporated body:
(c)
an officer of an applicant that is a body corporate:
(d)
a principal of an applicant.
(2)
The applicant, member, officer, or principal, as applicable,—
(a)
must not be a discharged or undischarged bankrupt; and
(b)
must not have been convicted of an offence involving fraud; and
(c)
must be eligible to be a company director.
Compare: 2004 No 35 s NBA 2(1)(c)
Section 124K: replaced, as section 15F (with effect on 1 April 2008), on 6 October 2009 (applying for tax on income derived in 2008–09 or later income years), by section 598(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 124K: renumbered, on 18 March 2019, by section 9(2) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 124K(1): amended, on 18 March 2019, by section 113 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 124K(2)(a): amended (with effect on 1 April 2008), on 29 March 2018, by section 264 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 124K(2)(b): amended (with effect on 1 April 2008), on 29 March 2018, by section 264 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
124L Application for approval as listed PAYE intermediary
[Repealed]Section 124L: repealed, on 1 April 2020, by section 86 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
124M Grounds for revocation of listing
[Repealed]Section 124M: repealed, on 1 April 2020, by section 86 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
124N Procedure for revocation of listing
[Repealed]Section 124N: repealed, on 1 April 2020, by section 86 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
124O Employers’ arrangements with PAYE intermediaries
(1)
An employer who wishes to enter an arrangement with a PAYE intermediary must notify the Commissioner of the proposed arrangement, providing—
(a)
the name of the PAYE intermediary:
(b)
the period for which the PAYE intermediary is to act for the employer:
(c)
the bank account number of the PAYE intermediary into which the employer will deposit amounts:
(d)
whether the proposed arrangement requires the PAYE intermediary to collect amounts under the ESCT rules.
(1B)
The notification requirements in subsection (1) are met if the PAYE intermediary provides the information set out in paragraphs (a) to (d).
(2)
On approval of the arrangement, the Commissioner must notify the employer, and the approval applies to pay periods that begin on or after 14 days after the date on which the notice is given.
(3)
An employer or a PAYE intermediary may end the arrangement by notifying the other party and the Commissioner. The notice must state the date that is after the notification for the end of the arrangement.
(4)
[Repealed]Compare: 2004 No 35 ss NBA 3, NBA 8, NBB 7
Section 124O: replaced, as section 15J (with effect on 1 April 2008), on 6 October 2009 (applying for tax on income derived in 2008–09 or later income years), by section 598(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 124O: renumbered, on 18 March 2019, by section 9(2) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 124O(1B): inserted, on 18 March 2019, by section 87(1) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 124O(4): repealed, on 18 March 2019, by section 87(2) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
124P Privacy requirements
The PAYE intermediary must operate and maintain systems to protect the personal information and payment details that they acquire in running the systems.
Compare: 2004 No 35 s NBA 5(3)
Section 124P: replaced, as section 15K (with effect on 1 April 2008), on 6 October 2009 (applying for tax on income derived in 2008–09 or later income years), by section 598(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 124P: renumbered, on 18 March 2019, by section 9(2) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
124Q Amended employment income information
The PAYE intermediary may provide the amended employment income information relating to the employee and a payday, and is then responsible for the accuracy of the amendments.
Compare: 2004 No 35 s NBA 5(4)
Section 124Q: replaced, as section 15L (with effect on 1 April 2008), on 6 October 2009 (applying for tax on income derived in 2008–09 or later income years), by section 598(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 124Q: renumbered, on 18 March 2019, by section 9(2) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 124Q heading: replaced, on 1 April 2019, by section 267(1) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 124Q: amended, on 1 April 2019, by section 267(2) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
124R Subsidy claim forms
[Repealed]Section 124R: repealed, on 1 April 2020, by section 88 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Tax pooling intermediaries
Heading: inserted, on 6 October 2009, by section 598(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
124S Establishing tax pooling accounts
A person who meets the requirements of section 124V may apply under section 124U to the Commissioner to establish a tax pooling account.
Compare: 2004 No 35 s MBA 3(1)
Section 124S: replaced, as section 15O, on 6 October 2009, by section 598(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 124S: renumbered, on 18 March 2019, by section 9(2) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 124S: amended, on 18 March 2019, by section 113 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
124T Role of Commissioner
(1)
The Commissioner is not required to oversee or audit the operation of a tax pooling account.
(2)
The Commissioner is not liable for any loss related to the operation of a tax pooling account through—
(a)
the failure of a tax pooling intermediary to deposit in a tax pooling account an amount paid to them by a taxpayer:
(b)
the unauthorised withdrawal by a tax pooling intermediary from a tax pooling account:
(c)
the failure of a tax pooling intermediary to apply for a transfer of funds from a tax pooling account to a taxpayer’s tax account with the Commissioner.
Compare: 2004 No 35 s MBA 4(5), (6)
Section 124T: replaced, as section 15P, on 6 October 2009, by section 598(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 124T: renumbered, on 18 March 2019, by section 9(2) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 124T(2)(c): amended, on 2 June 2016, by section 80 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
124U Applications to establish tax pooling accounts
(1)
In order to establish and maintain a tax pooling account, an intermediary must—
(a)
hold the account in their name; and
(b)
operate systems to protect the personal information and payment details that are obtained in the course of running the tax pooling account; and
(c)
record the balance in the tax pooling account contributed by each taxpayer.
(2)
A tax pooling account continues until it is wound up under section 124X.
Compare: 2004 No 35 s MBA 4
Section 124U: replaced, as section 15Q, on 6 October 2009, by section 598(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 124U: renumbered, on 18 March 2019, by section 9(2) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 124U(2): amended, on 18 March 2019, by section 113 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
124V Fitness of applicants
(1)
This section applies for the purposes ofsection 124U to—
(a)
an applicant who is a natural person; and
(b)
an officer of an applicant who is not a natural person; and
(c)
a principal of an applicant.
(2)
The applicant—
(a)
must not be a discharged or undischarged bankrupt; or
(b)
must not have been convicted of an offence involving dishonesty; or
(c)
must be eligible to be a company director.
Compare: 2004 No 35 s MBA 3(d)
Section 124V: replaced, as section 15R, on 6 October 2009, by section 598(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 124V: renumbered, on 18 March 2019, by section 9(2) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 124V(1): amended, on 18 March 2019, by section 113 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
124W Requirements for applications to establish tax pooling accounts
(1)
An application to establish a tax pooling account must contain—
(a)
the applicant’s full name, address, and tax file number; and
(b)
a statement that the applicant—
(i)
will operate systems that allow them to meet the requirements set out in section 124U(1); and
(ii)
will maintain and operate the systems to meet those requirements; and
(c)
confirmation that the applicant will establish a trust account into which they agree to pay amounts received in their role as intermediary; and
(d)
an undertaking that, before acting as intermediary for a taxpayer, the applicant will inform the taxpayer of the following matters:
(i)
the operation of the tax pooling account is not subject to the Commissioner’s oversight or audit:
(ii)
the Commissioner has no liability for any loss related to the tax pooling account:
(iii)
the applicant is fit to operate the tax pooling account as required by section 124V:
(iv)
the applicant has met the requirements set out in paragraphs (a) to (c).
(2)
The Commissioner may approve an application to establish a tax pooling account if the Commissioner is satisfied that the applicant—
(a)
is able to operate the account correctly; and
(b)
has systems to allow them to make payments and provide information in the format required by the Commissioner.
Compare: 2004 No 35 s MBA 3
Section 124W: replaced, as section 15S, on 6 October 2009, by section 598(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 124W: renumbered, on 18 March 2019, by section 9(2) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 124W(1)(b)(i): amended, on 18 March 2019, by section 113 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 124W(1)(d)(iii): amended, on 18 March 2019, by section 113 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
124X Winding up tax pooling accounts
(1)
An intermediary may wind up their tax pooling account at any time.
(2)
The Commissioner may require an intermediary to wind up their tax pooling account if—
(a)
the intermediary’s actions are preventing a taxpayer from effectively managing their liability to pay provisional tax and use of money interest; or
(b)
the intermediary is or has breached their obligations under this Part; or
(c)
the tax pooling account is in deficit; or
(d)
fewer than 100 taxpayers are, or are likely to be, making deposits in the tax pooling account; or
(e)
the intermediary does not meet the requirements of section 124U; or
(f)
when they are not a natural person, the intermediary has been put into liquidation or receivership.
(3)
For the purposes of subsection (2),—
(a)
the Commissioner may require the winding up immediately or may set another date for the winding up:
(b)
the Commissioner must give 30 days’ notice to the intermediary of any intended action using subsection (2)(d).
(4)
On the winding up of a tax pooling account, the Commissioner may refund the balance of the account to the former holder of the account, or may apply to a court for directions for the disposal of the balance of the account.
Compare: 2004 No 35 s MBA 8
Section 124X: replaced, as section 15T, on 6 October 2009, by section 598(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 124X: renumbered, on 18 March 2019, by section 9(2) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 124X(2)(e): amended, on 18 March 2019, by section 113 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Approved AIM providers
Heading: inserted, on 1 April 2018 (applying for the 2018–19 and later income years), by section 50(1) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
Heading: amended, on 18 March 2019, by section 9(2) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
124Y Approval of approved AIM providers
The Commissioner may approve a person as an approved AIM provider in relation to 1 or more of the person’s AIM-capable accounting systems (the products), if approving the person would not negatively affect the integrity of the tax system and the person makes a statutory declaration of the following matters and gives it to the Commissioner, namely a declaration:
(a)
specifying the name of the products; and
(b)
declaring that the person’s policy is to update the product regularly, to reflect changes in tax law or Commissioner’s requirements (for example: the software is updated to reflect a change in a determination by the Commissioner under section 91AAX); and
(c)
declaring any other matters required by the Commissioner to be declared for the purposes of assuring the Commissioner that the person’s product accurately calculates and communicates, in accordance with the Commissioner’s requirements, tax liabilities that are reasonably accurate assessments of tax liabilities for the relevant accounting income and expenditure.
Section 124Y: inserted, as section 15U, on 1 April 2018 (applying for the 2018–19 and later income years), by section 50(1) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
Section 124Y: renumbered, on 18 March 2019, by section 9(2) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
124Z Revocation of approval of AIM providers: Commissioner
(1)
The Commissioner’s approval of a person as an approved AIM provider under section 124Y is revoked if—
(a)
anything in their statutory declaration under section 124Y is not true, or does not continue to be true after it is made; or
(b)
revoking the approval positively affects the integrity of the tax system.
(2)
A revocation under subsection (1) does not take effect until the tax year after the tax year in which the Commissioner has notified the approved AIM provider of the revocation.
(3)
The Commissioner must consult the approved AIM provider before the approval is revoked.
(4)
The Commissioner may reverse a revocation before it takes effect, if the circumstances that gave rise to the revocation have been remedied by the approved AIM provider and there are no other circumstances requiring revocation under subsection (1).
Section 124Z: inserted, as section 15V, on 1 April 2018 (applying for the 2018–19 and later income years), by section 50(1) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
Section 124Z: renumbered, on 18 March 2019, by section 9(2) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 124Z(1): amended, on 18 March 2019, by section 113 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 124Z(1)(a): amended, on 18 March 2019, by section 113 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
124ZB Revocation of approval of AIM providers: provider
(1)
The Commissioner’s approval of a person as an approved AIM provider under section 124Y is revoked if the person notifies the Commissioner of the person’s choice to revoke the Commissioner’s approval.
(2)
A revocation under subsection (1) does not take effect until the tax year after the tax year in which the Commissioner has received notification of the revocation.
(3)
A person who has given notice under subsection (1) must immediately give notice of their choice to revoke to all end-users of the person’s products that will be affected by the revocation.
Section 124ZB: inserted, as section 15W, on 1 April 2018 (applying for the 2018–19 and later income years), by section 50(1) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
Section 124ZB: renumbered, on 18 March 2019, by section 9(2) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 124ZB(1): amended, on 18 March 2019, by section 113 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
124ZC Publication of approval or revocation
The Commissioner may publish a notice in a publication chosen by the Commissioner in relation to any matter in sections 124Y, 124Z, and 124ZB.
Section 124ZC: inserted, as section 15X, on 1 April 2018 (applying for the 2018–19 and later income years), by section 50(1) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
Section 124ZC: renumbered, on 18 March 2019, by section 9(2) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 124ZC heading: replaced, on 18 March 2019, by section 9(2) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 124ZC: amended, on 18 March 2019, by section 113 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
124ZD AIM method: approval of large business AIM-capable system
For the purposes of section RC 5(5B)(c)(iii) and the definition of large business AIM-capable system in section YA 1 of the Income Tax Act 2007, the Commissioner may approve an AIM-capable accounting system for use by a class of taxpayers with annual gross income of more than $5,000,000, if the Commissioner decides that there is minimal risk that the approval will result in less net revenue collectable from the class of taxpayers over time.
Section 124ZD: inserted, as section 15Y, on 1 April 2018 (applying for the 2018–19 and later income years), by section 50(1) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
Section 124ZD: renumbered, on 18 March 2019, by section 9(2) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
124ZE AIM method: approval of person over $5,000,000
For the purposes of section RC 5(5B)(c)(ii) of the Income Tax Act 2007, the Commissioner may approve a person’s continued use of an AIM-capable accounting system for tax years in which the person has annual gross income of more than $5,000,000, if the Commissioner decides that there is minimal risk that the approval will result in less net revenue collectable from the person over time.
Section 124ZE: inserted, as section 15Z, on 1 April 2018 (applying for the 2018–19 and later income years), by section 50(1) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
Section 124ZE: renumbered, on 18 March 2019, by section 9(2) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
RWT proxies
Heading: inserted (with effect on 1 April 2008), on 6 October 2009 (applying for tax on income derived in 2008–09 or later income years), by section 598(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
124ZF RWT proxies
(1)
If the requirements in subsection (2) are met, a person may choose to become an RWT proxy for a person who pays resident passive income that consists of a dividend by notifying the Commissioner.
(2)
The requirements are that—
(a)
the person paying the resident passive income is a non-resident unit trust; and
(b)
the person receiving the resident passive income is a natural person or a trustee of a qualifying trust who has asked the person referred to in subsection (1) to act as an RWT proxy in relation to the payment; and
(c)
the person has agreed to act as the RWT proxy; and
(d)
the payment of resident passive income is made while the notice is effective.
(3)
For the purposes of subsection (1), the notification to the Commissioner must contain the person’s election, their name, postal address, and the date from which the election applies.
(4)
The RWT proxy may cancel their election by notifying the Commissioner. The election stops applying from the later of—
(a)
the date set out in the notice of cancellation:
(b)
the date on which the Commissioner receives a notice of cancellation.
Compare: 2004 No 35 s NF 2AA
Section 124ZF: replaced, as section 15N (with effect on 1 April 2008), on 6 October 2009 (applying for tax on income derived in 2008–09 or later income years), by section 598(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 124ZF: renumbered, on 18 March 2019, by section 9(2) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Payroll donations[Repealed]
Heading: repealed, on 1 April 2019, by section 24(1) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Payroll donations
Heading: inserted, on 1 April 2019, by section 24(2) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
124ZG Transfer of payroll donations by employers
(1)
This section applies for a pay period and employer who agrees to offer payroll giving to their employees, when a person asks their employer to transfer an amount of a payroll donation from the person’s pay to a donee organisation.
(2)
The employer or PAYE intermediary must transfer the amount to the recipient of the donation on or by the relevant date required by sections RA 15 and RD 4 of the Income Tax Act 2007 that occurs nearest to the expiry of 2 months after the end of the pay period. Until transferred to the recipient, the amount is held on trust for the person.
(3)
Before the transfer referred to in subsection (2) is made, the person must—
(a)
ensure that the recipient of the donation is a donee organisation; and
(b)
supply the employer with sufficient details of the recipient to enable the transfer to be made.
Section 124ZG: inserted (with effect on 6 January 2010), as section 24Q, on 6 October 2009, by section 610 of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 124ZG: renumbered, on 1 April 2019, by section 24(2) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Research and development
Heading: inserted, on 1 April 2019, by section 25 (and see section 3 for application) of the Taxation (Research and Development Tax Credits) Act 2019 (2019 No 15).
124ZH Approved research providers
(1)
A person is an approved research provider, if the Commissioner approves the person, as provided by subsections (2) to (7), and the person keeps records in accordance with section 22(2)(kd).
(2)
The Commissioner may, in accordance with this section, approve a person, if the person makes an application in accordance with subsection (3).
(3)
A person must apply to the Commissioner for approval in the form prescribed by the Commissioner.
(4)
The Commissioner may only approve a person if, in the opinion of the Commissioner, the person—
(a)
is capable of performing core research and development activities on behalf of other persons; and
(b)
has in New Zealand the facilities needed to perform core research and development activities; and
(c)
is available to perform core research and development activities on behalf of other persons not associated with them; and
(d)
performs or will perform core research and development activities on behalf of other persons for market value consideration.
(5)
A person may apply for approval as an approved research provider by providing information to the Commissioner in the prescribed form. They may also apply for a revocation of approval.
(6)
If the Commissioner approves a person, the Commissioner must notify the person and publish the approval, in a publication chosen by the Commissioner.
(7)
The Commissioner may, at the Commissioner’s discretion, revoke approval as an approved research provider. The Commissioner must give the person reasons for the exercise of the Commissioner’s discretion, and specify the date from which the revocation takes effect.
Section 124ZH: inserted, on 1 April 2019, by section 25 (and see section 3 for application) of the Taxation (Research and Development Tax Credits) Act 2019 (2019 No 15).
Section 124ZH(4)(a): amended (with effect on 1 April 2019), on 23 March 2020, by section 227(1) (and see section 227(2) for application) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 124ZH(4)(b): amended (with effect on 1 April 2019), on 23 March 2020, by section 227(1) (and see section 227(2) for application) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 124ZH(4)(c): amended (with effect on 1 April 2019), on 23 March 2020, by section 227(1) (and see section 227(2) for application) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 124ZH(4)(d): amended (with effect on 1 April 2019), on 23 March 2020, by section 227(1) (and see section 227(2) for application) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
124ZI Certificates for research and development
(1)
For the purposes of section 68CC, a research and development certificate is a certificate, in the form prescribed by the Commissioner, in relation to a person’s research and development tax credit for an income year given to the person by another person who is an accepted research and development certifier that is not associated with the person.
(2)
For the purposes of this section, an accepted research and development certifier means any person that the Commissioner has approved as an accepted research and development certifier, if the person makes a statutory declaration of the following matters and gives it to the Commissioner, namely a declaration—
(a)
that the person is competent in applying appropriate accounting and legal standards in relation to research and development tax credits; and
(b)
declaring any other matters required by the Commissioner to be declared for the purposes of assuring the Commissioner that the person has the legal, accounting, and scientific or technical expertise to complete a research and development certificate.
(3)
A person may request approval as an accepted research and development certifier by providing information to the Commissioner in the prescribed form. They may also surrender approval.
(4)
The Commissioner must not approve a person whose approval—
(a)
would adversely affect the integrity of the tax system:
(b)
the Commissioner has revoked under subsection (7) in the last 2 years:
(c)
was surrendered by the person in the last 2 years in anticipation of a revocation.
(5)
If the Commissioner approves a person, the Commissioner must notify the person, and publish the approval in a publication chosen by the Commissioner. The approval starts from the date that the person requests approval.
(6)
The Commissioner may, at the Commissioner’s discretion, revoke approval as an accepted research and development certifier. If the Commissioner revokes a person’s approval, the Commissioner must notify the person, and publish the revocation in a publication chosen by the Commissioner. The revocation starts from the date that the revocation is published.
(7)
The Commissioner must revoke a person’s approval if—
(a)
the person is liable for a promoter penalty under section 141EB:
(b)
the person has given a research and development certificate to another person who has, in the 2 years before the income year,—
(i)
been liable to a shortfall penalty under section 141D or 141E in relation to research and development tax credits:
(ii)
entered into a tax avoidance arrangement in relation to research and development tax credits:
(c)
the person’s approval would adversely affect the integrity of the tax system.
Section 124ZI: inserted, on 1 April 2020, by section 44 (and see section 38 for application) of the Taxation (Research and Development Tax Credits) Act 2019 (2019 No 15).
Section 124ZI(4): replaced, on 1 April 2020, by section 228(1) (and see section 228(3) for application) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 124ZI(7)(b): replaced, on 1 April 2020, by section 228(2) (and see section 228(3) for application) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 124ZI(7)(c): inserted, on 1 April 2020, by section 228(2) (and see section 228(3) for application) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Part 8 Objections
125A Application of Part 8
(1)
Despite section 1(2), this Part applies to—
(a)
every notice of assessment or reassessment issued by the Commissioner under a provision of the Inland Revenue Acts after 1 April 1995 and before 1 October 1996 for a particular item or matter, irrespective of the period to which the assessment or reassessment relates; and
(b)
every notice of assessment issued by the Commissioner under a provision of the Inland Revenue Acts on or after 1 October 1996, if before that date, a taxpayer has made a competent objection to a notice of assessment that precedes the notice of reassessment for the same particular item or matter.
(2)
The Commissioner may, after being notified that the taxpayer agrees, specify that a notice of assessment or reassessment—
(a)
(b)
issued on or after 1 October 1996, is to be treated as if it had been issued before that date (in which case the provisions of Part 8 are to continue to apply to the notice).
(3)
Despite section 1(2), Part 3 of the Income Tax Act 1976 does not apply to a notice of assessment or reassessment issued on or after 1 April 1995.
Section 125A: inserted, as section 124A, on 1 October 1996, by section 37 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 125A: renumbered, on 18 March 2019, by section 83 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 125A(1): replaced, as section 125A(1), on 20 May 1999 (applying on and after 1 October 1996), by section 104(1) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
Section 125A(2): amended, as section 124A(2), on 2 June 2016, by section 161 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section 125A(3): inserted, as section 124A(3), on 20 May 1999 (applying on and after 20 May 1999), by section 104(2) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
Section 125A(3): amended, as section 124A(3), on 10 October 2000 (applying on and after 20 May 1999), by section 71(1) of the Taxation (GST and Miscellaneous Provisions) Act 2000 (2000 No 39).
125 Certain rights of objection not conferred
Except so far as may be expressly provided to the contrary in this Act or the Income Tax Act 2007, this Part shall not confer any right of objection with respect to—
(a)
any decision or determination of the Commissioner made in exercise of any power or discretion conferred on the Commissioner to enlarge or extend the time for giving any notice, making any application, furnishing any return, or doing any other act, matter, or thing; or
(b)
any matter which is left to the discretion, judgment, opinion, approval, consent, or determination of the Minister or any act, matter, or thing done or omitted by the Minister under this Act or the Income Tax Act 2007 or any regulations made under those Acts; or
(c)
any matter in respect of which provision is made by this Act or the Income Tax Act 2007 or by any regulations made under those Acts—
(i)
for an objection to be heard and determined by; or
(ii)
for the matter to be inquired into, considered, reported upon, heard, decided, determined, or otherwise dealt with by; or
(iii)
for the matter to be the subject of any recommendation of—
any special committee, tribunal, or authority (other than a Taxation Review Authority) established in that behalf or any person or official (other than the Commissioner); or
(d)
any decision or determination of the Commissioner approving or not approving a sickness, accident, or death benefit fund for the purposes of section CW 34 of the Income Tax Act 2007; or
(e)
any determination of the Commissioner, for the purposes of section 130 of this Act and section 73 of the Income Tax Act 1976, as to whether and to what extent any allowance (being an allowance paid before 1 April 1995) in respect of or in relation to the employment or service of any person constituted a reimbursement of expenditure incurred by that person in deriving that person’s income; or
(f)
any determination of the Commissioner as to whether and to what extent any person or class of persons is not required to comply with section EA 3 of the Income Tax Act 2007; or
(g)
[Repealed](h)
any valuation or apportionment made by the Valuer-General or a registered valuer under the Valuation of Land Act 1951 or the Income Tax Act 2007; or
(i)
any determination of the FMA under section EY 11 of the Income Tax Act 2007 in relation to the status of a superannuation fund under subsections (3) to (9) of that section; or
(j)
any matter which by any provision in—
(i)
the PAYE rules; or
(ii)
the provisional tax rules; or
(iii)
any of sections CD 15, CD 19, HD 2, HD 3(2), HD 5(4), HD 15, HD 24, HD 26 to HD 29, LA 6 to LA 8, LJ 1 to LJ 7, RD 3, RM 2, RM 4, RM 8, and RM 10 of the Income Tax Act 2007 and sections 18K, 33, 92A and 184 of this Act:
(iv)
any of sections 17F, 17G, 18I, 21B to 23, 23B to 23Q, 36 to 44D, 58, 62, 63, 78B, 78C, 80, 89C, 89K, 89M, 92, 106, 107, 108, 108A, 108AB, 108B, 109, 110, 111, 113 to 116, 118, 120A to 120U, 131, 138N, 142A, 142C, 146, 150A, 157, 160, 166, 166B, 167, 174AA, 176, 177, 177A to 177D, 183A, 183D, 183F, and 225B of this Act,—
is left to the discretion, judgment, opinion, approval, consent, or determination of the Commissioner; or
(k)
any matter in respect of which it is expressly provided that there shall be no right of objection or challenge to the decision or determination of the Commissioner.
Compare: 1976 No 65 s 36
Section 125: amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 125(b): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 125(c): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 125(d): replaced (with effect on 1 April 2008), on 6 October 2009, by section 669 of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 125(e): replaced, on 26 July 1996 (applying to 1997–98 and subsequent income years), by section 469 of the Taxation (Core Provisions) Act 1996 (1996 No 67).
Section 125(e): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 125(f): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 125(f): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 125(g): repealed, on 20 May 1999 (applying on and after 20 May 1999), by section 105(1) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
Section 125(h): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 125(h): amended, on 1 July 1998, by section 54(1) of the Rating Valuations Act 1998 (1998 No 69).
Section 125(i): amended, on 1 May 2011, by section 85(1) of the Financial Markets Authority Act 2011 (2011 No 5).
Section 125(i): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 125(j)(i): amended, on 26 March 2003 (applying for 2002–03 and subsequent income years), by section 113(1) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
Section 125(j)(iii): replaced (with effect on 1 April 1995), on 2 September 1996, by section 42(b) of the Taxation (Remedial Provisions) Act 1996 (1996 No 159).
Section 125(j)(iii): amended, on 1 April 2019, by section 89(1) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 125(j)(iii): amended, on 1 April 2017, by section 337 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section 125(j)(iii): amended (with effect on 1 April 2013), on 17 July 2013, by section 115 of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).
Section 125(j)(iii): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 125(j)(iii): amended, on 17 October 2002 (applying on and after 17 October 2002), by section 86(1)(b) of the Taxation (Relief, Refunds and Miscellaneous Provisions) Act 2002 (2002 No 32).
Section 125(j)(iv): replaced, on 1 October 1996, by section 38(a) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 125(j)(iv): amended, on 30 March 2022, by section 208 of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section 125(j)(iv): amended, on 1 April 2019, by section 89(2)(a) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 125(j)(iv): amended, on 1 April 2019, by section 89(2)(b) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 125(j)(iv): amended, on 1 April 2019, by section 351 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 125(j)(iv): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 125(j)(iv): amended, on 1 April 2003, by section 113(2) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
Section 125(j)(iv): amended, on 17 October 2002 (applying on and after 1 December 2002), by section 86(2) of the Taxation (Relief, Refunds and Miscellaneous Provisions) Act 2002 (2002 No 32).
Section 125(j)(iv): amended, on 27 March 2001 (applying on and after 1 April 2002), by section 49(1) of the Taxation (Beneficiary Income of Minors, Services-Related Payments and Remedial Matters) Act 2001 (2001 No 4).
Section 125(j)(iv): amended, on 20 May 1999 (applying on and after 1 April 1999), by section 105(2) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
Section 125(k): amended, on 1 October 1996, by section 38(b) of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
126 Procedure for objections to assessments
(1)
Any person who has been assessed for income tax may object to that assessment by delivering to the Commissioner a notice of objection stating shortly the grounds of the person’s objection, within such time as may be specified in that behalf in the notice of assessment, not being less than 14 days after the date on which that notice of assessment is given, 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:
provided that, where the assessment is an amended assessment, the person so assessed shall have no further right of objection than the person would have had if the amendment had not been made, except to the extent to which by reason of the amendment a fresh liability in respect of any particular is imposed on the person or an existing liability in respect of any particular is increased.
(2)
No notice of objection given after the time specified in the notice of assessment, or after such extended time as the Commissioner may allow under subsection (1), shall be of any force or effect unless the Commissioner accepts the same and gives notice to the objector accordingly.
Compare: 1976 No 65 s 30
Section 126(1): amended, on 2 June 2016, by section 162 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section 126(1): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
127 Commissioner to consider objections and may amend assessment
(1)
The Commissioner shall consider all such objections, and may consequently amend the assessment.
(2)
If the Commissioner, after considering the objection, has allowed the objection in part and has reduced the assessment, the reduced assessment shall be the assessment to be dealt with by the Taxation Review Authority under section 134.
Compare: 1976 No 65 s 31(1), (3)
Section 127(1): amended, on 24 October 2001 (applying to 2002–03 and subsequent income years), by section 236(1) of the Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 (2001 No 85).
128 Payment of disputed tax where competent objection lodged
(1)
[Repealed](2)
A taxpayer is not liable to pay—
(a)
the deferrable tax relating to any tax in dispute; or
(b)
a shortfall penalty, where the penalty is payable in respect of any tax in dispute; or
(c)
the interest accruing under Part 7 on that deferrable tax or that shortfall penalty,—
until the due date for payment of that deferrable tax.
(2B)
Despite subsection (2), the Commissioner may require a taxpayer to pay all tax in dispute if the Commissioner considers that there is a significant risk that the tax in dispute will not be paid should the taxpayer not succeed in objection proceedings.
(3)
If and to the extent that a taxpayer succeeds in objection proceedings, the Commissioner must, after the day of determination of final liability, refund or pay to, or apply on behalf of, the taxpayer—
(a)
the tax in dispute paid in accordance with subsection (2B); and
(b)
interest accrued on the tax in dispute under Part 7.
(4)
This section applies only where a taxpayer lodges a competent objection.
(5)
Part 7 applies to interest calculated on deferrable tax on and after 1 April 1997, irrespective of whether the competent objection or challenge relates to a tax year before the 1997–98 tax year.
(6)
If the competent objection or challenge relates to the 1996–97 or an earlier tax year, interest must be calculated on deferrable tax on and after the date that the period of deferral starts.
Section 128: replaced, on 1 October 1996, by section 39 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 128 heading: replaced, on 1 April 2003, by section 114(1) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
Section 128(1): repealed, on 1 April 2003, by section 114(2) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
Section 128(2B): inserted, on 1 April 2003, by section 114(3) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
Section 128(3)(a): replaced, on 1 April 2003, by section 114(4) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
Section 128(3)(b): replaced, on 1 April 2003, by section 114(4) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
Section 128(5): inserted, on 8 September 1999 (applying on and after 1 April 1997), by section 72(1) of the Taxation (Remedial Matters) Act 1999 (1999 No 98).
Section 128(5): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 128(5): amended, on 1 April 2003, by section 114(5) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
Section 128(6): inserted, on 8 September 1999 (applying on and after 1 April 1997), by section 72(1) of the Taxation (Remedial Matters) Act 1999 (1999 No 98).
Section 128(6): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 128(6): amended, on 1 April 2003, by section 114(6) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
128A Waiver of payment or security
[Repealed]Section 128A: repealed, on 1 April 2003, by section 115 of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
129 Determination of objection not to affect other matters
The determination of an objection under this Part shall relate solely to the matters which are the subject of the objection, and shall not affect the right of the Commissioner to amend the assessment objected to in any manner rendered necessary by any other matter.
Section 129: replaced, on 26 July 1996 (applying to 1997–98 and subsequent income years), by section 470 of the Taxation (Core Provisions) Act 1996 (1996 No 67).
130 Objections to allowance determinations
(1)
Notwithstanding anything in this Act or the Income Tax Act 2007, where any person who, before 1 April 1995, was granted or was to be granted an allowance to which a determination made under subsection (2) or subsection (3) of section 73 of the Income Tax Act 1976 applies is dissatisfied with that determination, that person may object to that determination by delivering to the Commissioner, within 1 month after the date on which the notice of that determination was given by the Commissioner, a notice of objection stating shortly the grounds of the objection.
(2)
Notwithstanding anything in this Act or the Income Tax Act 1994, where any employer or workers’ union, or the authorised representative of any employer or group of employees (referred to in this section as the applicant), being a party to an award, or a collective agreement, or another instrument a clause or other provision of which provides for the payment of an allowance, being an allowance paid or payable before 1 April 1995, in relation to which a determination has been made by the Commissioner under subsection (2) or subsection (3) or subsection (4) of section 73 of the Income Tax Act 1976, is dissatisfied with that determination, the applicant may, on behalf of any person who was granted or was to be granted that allowance, object to the determination by delivering to the Commissioner a notice of objection stating shortly the grounds of objection within 1 month after the date on which notice of that determination was given by the Commissioner.
(3)
No notice of objection given after the time specified in subsection (1) or subsection (2) shall be of any force or effect unless the Commissioner accepts the same and gives notice to the objector accordingly.
(4)
The Commissioner shall consider every objection made under this section and may consequently amend the determination.
(5)
For the purposes of this section, sections 128, 129, and 135 shall, in relation to any objection under this section, apply in the same manner and to the same extent that they would apply if the objection were an objection made under section 126(1).
(6)
In this section, award, collective agreement, and instrument have the same meanings as in regulation 2 of the Wage Adjustment Regulations 1974.
Compare: 1976 No 65 s 73
Section 130(1): amended, on 2 June 2016, by section 163(1) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section 130(1): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 130(1): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 130(1): amended (with effect on 1 April 1995), on 10 April 1995, by section 14(1)(a) of the Tax Administration Amendment Act 1995 (1995 No 24).
Section 130(1): amended (with effect on 1 April 1995), on 10 April 1995, by section 14(1)(b) of the Tax Administration Amendment Act 1995 (1995 No 24).
Section 130(2): amended, on 2 June 2016, by section 163(2) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section 130(2): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 130(2): amended (with effect on 1 April 1995), on 10 April 1995, by section 14(2)(a) of the Tax Administration Amendment Act 1995 (1995 No 24).
Section 130(2): amended (with effect on 1 April 1995), on 10 April 1995, by section 14(2)(b) of the Tax Administration Amendment Act 1995 (1995 No 24).
Section 130(2): amended (with effect on 1 April 1995), on 10 April 1995, by section 14(2)(c) of the Tax Administration Amendment Act 1995 (1995 No 24).
Section 130(4): amended, on 24 October 2001 (applying to 2002–03 and subsequent income years), by section 236(1) of the Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 (2001 No 85).
131 Objections to determinations
[Repealed]Section 131: repealed, on 24 October 2001 (applying on first day of 2002–03 income year), by section 223(1) of the Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 (2001 No 85).
132 Application of this Part to objections to foreign tax credit determinations
[Repealed]Section 132: repealed, on 24 October 2001 (applying on first day of 2002–03 income year), by section 224(1) of the Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 (2001 No 85).
133 Wrong PAYE withholding determination a ground for objection
A taxpayer may object to an assessment that is issued by the Commissioner in relation to an amount of tax withheld on the basis of a determination under section RD 3(5) of the Income Tax Act 2007, on the ground that the determination is wrong, whether in fact or in law.
Section 133: replaced, on 1 October 1996, by section 40 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 133 heading: amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 133: amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Case stated
134 Objector may require that objections be submitted to Taxation Review Authority
If an objection is not wholly allowed by the Commissioner, the objector may, within 2 months after the date on which notice of the disallowance is given to the objector by or on behalf of the Commissioner, by notice to the Commissioner require that the objection be heard and determined by a Taxation Review Authority, and in that event the objection shall be heard and determined by an Authority, and the Taxation Review Authorities Act 1994 shall apply in respect of the institution, hearing, and determination of the proceedings on the objection.
Compare: 1976 No 65 s 31(2)
Section 134: amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
135 Powers of Taxation Review Authority on determination of objection or case stated
(1)
On hearing any objection a Taxation Review Authority may—
(a)
confirm or cancel or vary the assessment, or reduce the amount of the assessment, or increase the amount of the assessment to the extent to which the Commissioner was empowered to make an assessment of an increased amount at the time the Commissioner made the assessment to which the objection relates, and that last-mentioned assessment shall be altered by the Commissioner to such extent as may be necessary to conform to that determination:
(b)
make any assessment which the Commissioner was empowered to make at the time the Commissioner made the assessment to which the objection relates, or direct the Commissioner to make such an assessment, in which case an assessment shall be made by the Commissioner so as to conform to that direction.
(2)
Notwithstanding subsection (1), where the objection relates to a determination or binding ruling made under either section 90(1) or 90AC(1) of this Act, or under section 64E of the Income Tax Act 1976, or under section 245S of that Act as in force before its repeal by section 49 of the Income Tax Amendment Act (No 2) 1993, the Authority shall not make a determination or binding ruling or alter the determination or ruling under subsection (1)(a) or subsection (1)(b) but may direct the Commissioner to alter the determination or ruling to such extent as may be necessary to conform to the decision of the Taxation Review Authority and with such effect as provided in either section 90(6) or sections 90AC(6) and 90AE of this Act or, where appropriate, section 245S of the Income Tax Act 1976 as so previously in force:
provided that no such fresh determination or ruling shall be issued by the Commissioner before the resolution of the appeal procedures.
(3)
The time bar shall not apply with respect to—
(a)
any determination of the Authority under subsection (1)(a) or any amendment made by the Commissioner to an assessment for the purpose of conforming to any such determination; or
(b)
any assessment made by the Authority or the Commissioner under subsection (1)(b).
Compare: 1976 No 65 s 32
Section 135(2): amended, on 18 March 2019, by section 90(a) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 135(2): amended, on 18 March 2019, by section 90(b) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 135(2): amended, on 20 May 1999 (applying on or after 20 May 1999), by section 107(a) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
Section 135(2): amended, on 20 May 1999 (applying on or after 20 May 1999), by section 107(b) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
Section 135(2) proviso: amended, on 18 March 2019, by section 90(c) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 135(3)(a): amended, on 24 October 2001 (applying to 2002–03 and subsequent income years), by section 236(3) of the Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 (2001 No 85).
136 When objection may be referred directly to High Court
(1)
Notwithstanding anything in this Part, where—
(a)
an objection to an assessment is made in accordance with section 126(1) or accepted by the Commissioner under section 126(2); and
(b)
the objection is not wholly allowed by the Commissioner; and
(c)
the objection is one to which subsection (2) or subsection (3) applies,—
the objection may be referred directly to the High Court by way of case stated in accordance with this section.
(2)
Where an objection relates to a question of law only,—
(a)
the objector may, within 2 months after the date on which notice of the disallowance is given to the objector by or on behalf of the Commissioner, by notice to the Commissioner require the Commissioner to state a case for the opinion of the High Court, and shall specify in the notice the registry of that court in which the objector requires the case to be filed:
(b)
the Commissioner, in any case where under section 134 the objector has required the objection to be heard and determined by a Taxation Review Authority, may, instead of referring the objection to a Taxation Review Authority, state a case for the opinion of the High Court, and shall notify the objector accordingly.
(3)
Where an objection relates to a question of fact (whether or not it also relates to a question of law),—
(a)
the objector may, within 2 months after the date on which notice of the disallowance is given to the objector by or on behalf of the Commissioner, give notice to the Commissioner that the objector desires the Commissioner to state a case for the opinion of the High Court, specifying in the notice the registry of that court in which the objector desires the case to be filed:
(b)
the Commissioner may, in any case where the objector has under section 134 required the objection to be heard and determined by a Taxation Review Authority, notify the objector that the Commissioner desires the objection to be referred directly to the High Court.
(4)
Where any notice is given by the objector or the Commissioner under subsection (3), the objection shall be referred directly to the High Court if both the Commissioner and the objector consent, or with the leave of that court granted on the application of the objector or the Commissioner upon the ground that in the opinion of the court, by reason of the amount of the tax in dispute between the parties or of the general or public importance of the matter or of its extraordinary difficulty or for any other reason, it is desirable that the objection be heard and determined by the High Court instead of by a Taxation Review Authority.
(5)
Within 3 months after—
(a)
the date of the objector’s giving notice under subsection (2)(a) or subsection (3)(a), where it is the objector who requires or desires the Commissioner to state a case for the opinion of the High Court; or
(b)
the date of the objector’s giving notice in relation to the objection under section 134, where it is the Commissioner who determines or desires under subsection (2)(b) or subsection (3)(b) of this section to state a case for the opinion of the High Court,—
the objector shall serve on the Commissioner, by delivery to the National Office of the Inland Revenue Department at Wellington or to such other address as the Commissioner has given notice of to the objector for the purpose, a notice in the prescribed form of the objector’s points of objection.
(6)
The points of objection shall state, with sufficient particularity so as to fairly advise the Commissioner and the court,—
(a)
the facts upon which the objector relies in support of the objection; and
(b)
the propositions of law (if any) on which the objector relies in support of the objection; and
(c)
the issues which the objector considers require to be determined by the court.
(7)
The objector shall annex to the points of objection copies of any documents upon which the objector intends to rely in support of the objection:
provided that where the documents upon which the objector intends to rely are numerous, the objector may annex a list of those documents instead of copies of the actual documents.
(8)
If the objector fails to serve on the Commissioner the points of objection within the period referred to in subsection (5), or within such further period as may be allowed under subsection (12), the objection shall be deemed to be withdrawn and the Commissioner shall not be required to take any further steps in relation to the objection.
(9)
Where under this section an objection is to be referred directly to the High Court, the Commissioner shall, within 3 months after the date of service of the points of objection or within such further period as may be allowed under subsection (12), state and sign a case which shall comprise—
(a)
a notice in the prescribed form containing—
(i)
particulars of the assessment made by the Commissioner to which the objection has been made; and
(ii)
the grounds of objection given by the objector; and
(iii)
the question for the determination of the court; and
(b)
the points of objection served by the objector; and
(c)
a notice in the prescribed form stating—
(i)
any further facts which the Commissioner considers are relevant to the issues to be determined by the court; and
(ii)
the issues which the Commissioner claims require to be determined by the court.
(10)
The case so stated and signed, together with one copy, shall be filed by the Commissioner—
(a)
in the registry of the High Court specified by the objector in the notice under subsection (2)(a) or subsection (3)(a), where such a notice has been given by the objector; or
(b)
in such registry of the High Court as the Commissioner thinks fit in any other case, having due regard to the convenience of the objector.
(11)
A copy of the case so filed shall be served by the Commissioner on the objector either personally or by sending it to the objector by registered post addressed to the objector at the address for service specified by the objector in the points of objection, or at such other address as the objector has given notice of to the Commissioner for the purpose, and the copy so sent by registered post shall be deemed to have been received when in the ordinary course of post it would be delivered.
(12)
The High Court may, on the application of the objector or the Commissioner,—
(a)
extend the time for service by the objector on the Commissioner of the points of objection; or
(b)
extend the time for the filing of the case by the Commissioner—
until such time as the court thinks fit, whether the application is made before or after the expiry of the time limit:
provided that when application is made for an extension of time more than 2 months after the date for service of the points of objection or the date for filing the case, as the case may be, an order for extension of time shall be made only in exceptional circumstances.
(13)
Where the Commissioner fails to file a case within the time specified in subsection (9), or within such further time as may be allowed under subsection (12), 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.
(14)
The contents of the case shall not be conclusive as to the matters set forth in it either against the objector or the Commissioner, except so far as agreed to by or on behalf of the objector and the Commissioner, with the agreement recorded in a document.
(15)
At any time before the case stated is set down for hearing—
(a)
the Commissioner may file an amended case and serve a copy on the objector at the objector’s address for service:
(b)
the objector may serve on the Commissioner amended points of objection at the Commissioner’s address for service specified in the case.
(16)
Sections 16(2), 17, and 18 of the Taxation Review Authorities Act 1994, as far as they are applicable, shall apply to any such case stated by the Commissioner as if references in those provisions to an Authority were references to the High Court. Subject to those provisions, the procedure at the hearing before the High Court of any such case stated shall be the same, with any necessary modifications, as if the case were a proceeding in which the objector is the plaintiff and the Commissioner is the defendant.
(17)
On hearing any case stated under this section, the High Court may—
(a)
confirm or cancel or vary the assessment, or reduce the amount of the assessment, or increase the amount of the assessment to the extent to which the Commissioner was empowered to make an assessment of an increased amount at the time the Commissioner made the assessment to which the objection relates, and that last-mentioned assessment shall be amended by the Commissioner to such extent as may be necessary to conform to that determination:
(b)
make any assessment which the Commissioner was empowered to make at the time the Commissioner made the assessment to which the objection relates, or direct the Commissioner to make such an assessment, in which case an assessment shall be made by the Commissioner so as to conform to that direction.
(18)
Notwithstanding subsection (17), where the objection relates to a determination or binding ruling made under section 90(1) of this Act, or under section 64E of the Income Tax Act 1976, or under section 245S of that Act as in force before its repeal by section 49 of the Income Tax Amendment Act (No 2) 1993, the High Court shall not make a determination or binding ruling or alter the determination or ruling under subsection (17)(a) or subsection (17)(b), but may direct the Commissioner to alter the determination or ruling to such extent as may be necessary to conform to the decision of the High Court and with such effect as provided in section 90(6) of this Act or, where appropriate, section 245S of the Income Tax Act 1976 as so previously in force:
provided that no such fresh determination or ruling shall be made by the Commissioner before the resolution of the appeal procedures.
(19)
The time bar shall not apply with respect to—
(a)
any determination of the court under subsection (17)(a) or any amendment made by the Commissioner to an assessment for the purpose of conforming to any such determination; or
(b)
any assessment made by the court or the Commissioner under subsection (17)(b).
(20)
Where any notice is given by the objector to the Commissioner under subsection (3)(a) and the Commissioner gives notice to the objector that the Commissioner does not consent to the objection being referred directly to the High Court under this section, then—
(a)
if within 1 month after the last-mentioned notice is given to the objector by the Commissioner no application is made by the objector to the High Court for the leave of the court to refer the objection directly to that court; or
(b)
if on any such application the High Court refuses to grant such leave,—
the first-mentioned notice shall have effect as if it were a notice requiring the objection to be heard and determined by a Taxation Review Authority, and this Part shall apply accordingly.
Compare: 1976 No 65 s 33; 1993 No 130 s 6(2), (3)
Section 136(2)(a): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 136(3)(a): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 136(5): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 136(6): amended, on 2 June 2016, by section 164(1) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section 136(5): amended, on 26 July 1996 (applying to 1997–98 and subsequent income years), by section 471 of the Taxation (Core Provisions) Act 1996 (1996 No 67).
Section 136(11): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 136(12): amended, on 2 June 2016, by section 164(2) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section 136(14): amended, on 2 June 2016, by section 164(3) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section 136(17)(a): amended, on 24 October 2001 (applying to 2002–03 and subsequent income years), by section 236(2) of the Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 (2001 No 85).
Section 136(18): amended, on 18 March 2019, by section 91(a) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 136(18): amended, on 18 March 2019, by section 91(b) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 136(18) proviso: amended, on 18 March 2019, by section 91(c) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 136(19)(a): amended, on 24 October 2001 (applying to 2002–03 and subsequent income years), by section 236(3) of the Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 (2001 No 85).
137 Test case procedure
(1)
Where—
(a)
an objector has given notice under section 134 or section 136(2)(a) or section 136(3)(a) requiring or seeking that an objection be heard and determined by a Taxation Review Authority, or that a case be stated for the opinion of the High Court in respect of an objection; and
(b)
the Commissioner considers that determination of the objection, whether on a question of law only or on both a question of fact and a question of law, is likely to be determinative of all or a substantial number of the issues involved in 1 or more other objections,—
the Commissioner may designate that objection as a test case, and shall notify the objector accordingly.
(2)
The Commissioner may, notwithstanding section 136(4), state a test case for the opinion of the High Court without need for—
(a)
the objector’s consent; or
(b)
the leave of the High Court,—
and subsections (5) to (19) of section 136 shall apply in respect of any test case as if the Commissioner had determined to state the case under subsection (2)(b) of that section.
(3)
The Commissioner may in relation to any objection, at any time after the objection has been lodged and before it has been determined by a Taxation Review Authority or the High Court, give notice to the objector that the objection will be stayed by reason of the taking of a test case on a similar objection or challenge before the High Court, if the Commissioner considers that the test case is likely to be determinative of all or a substantial number of the issues in the objection proposed to be stayed.
(4)
Subject to subsection (9), the notice by the Commissioner referred to in subsection (3) shall have the effect of staying the objection pending the determination of the test case.
(5)
Upon receipt by an objector of the notice by the Commissioner referred to in subsection (3), the objector may notify the Commissioner that the objector requires that the objection be heard and determined notwithstanding the stating of a test case for the opinion of the High Court. That notice shall be given at such address as may be specified by the Commissioner in the notice given under subsection (3).
(6)
Within 14 days after the receipt by the Commissioner of the notice from the objector referred to in subsection (5), the Commissioner may apply to the High Court by originating application for an order that the objection be stayed pending the determination of the test case or the further order of the court.
(7)
An application by the Commissioner under subsection (6) shall be made on notice to the objector whose objection the Commissioner seeks to have stayed.
(8)
Where an objection has been stayed, the objector, the Commissioner, or both of them, may at any time apply to the High Court for an order that the objection cease to be stayed.
(9)
A stay under subsection (4) shall lapse on the expiry of 14 days following the day on which occurs any of the following:
(a)
the expiry of the 14-day period specified in subsection (6), where the objector has issued a notice under subsection (5) and the Commissioner has not within the 14-day period made an application under subsection (6):
(b)
the making by the High Court of an order dismissing an application by the Commissioner under subsection (6):
(c)
the making by the High Court, on an application under subsection (8), of an order that the objection cease to be stayed:
(d)
the determination of the test case which caused the objection to be stayed by the expiration of all rights of appeal.
(10)
For the purposes of this Act,—
(a)
for so long as an objection is stayed under this section, any time limits or periods specified in or under this Act (other than in subsections (5) to (9)) in relation to proceedings on the objection shall not apply:
(b)
where the stay of an objection lapses under subsection (9), any time limits or periods so specified shall be treated as if they were extended by the period commencing with the date of the Commissioner’s notice under subsection (3), and ending with the day on which the stay lapses under subsection (9).
(11)
The Commissioner may serve a notice under subsections (3) and (7) by formally notifying either the objector or a solicitor who is authorised to accept service on their behalf at the contact address referred to in section 14G(c) or by effective delivery to an address supplied by the objector.
Compare: 1976 No 65 s 33A
Section 137(1)(a): amended, on 2 June 2016, by section 165(1) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section 137(3): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 137(3): amended, on 1 October 1996, by section 41 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 137(4): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 137(5): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 137(9)(a): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 137(10)(b): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 137(11): replaced, on 2 June 2016, by section 165(2) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
138 Determination by Taxation Review Authority of objection in relation to allowances
(1)
If an objection under section 130 is not wholly allowed by the Commissioner, the objector may, within 2 months after the date on which the notice of disallowance is given to the objector by the Commissioner, by notice to the Commissioner, require that the objection be referred to a Taxation Review Authority.
(2)
A Taxation Review Authority shall consider every objection referred to the Authority by the Commissioner under subsection (1) and shall in each case redetermine, in relation to the determination to which the objection is made, the extent (if any) to which the allowance to which that determination applies constitutes a reimbursement of expenditure incurred by that person in deriving the person’s income.
(3)
For the purpose of considering an objection referred to an Authority by the Commissioner under subsection (1), the Taxation Review Authority may call for such evidence as the Authority may require and shall, notwithstanding anything in this or any other Inland Revenue Act, have free access to all records under the control of the Commissioner which relate directly to the remuneration paid to the employee or, as the case may be, the group of employees where any allowance granted or to be granted (to that employee or to the employees in that group) is the allowance to which the objection referred to that Taxation Review Authority by the Commissioner under subsection (1) relates.
(4)
Notwithstanding anything in this or any other Inland Revenue Act, every decision or determination of a Taxation Review Authority made under subsection (2) shall be final and conclusive.
Compare: 1976 No 65 s 73
Section 138(1): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 138(2): replaced, on 26 July 1996 (applying to 1997–98 and subsequent income years), by section 472 of the Taxation (Core Provisions) Act 1996 (1996 No 67).
Section 138(2): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Part 8A Challenges
Part 8A: inserted, on 1 October 1996, by section 42 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
138A Application of this Part
(1)
Despite section 1(2), this Part applies to—
(a)
every notice of disputable decision issued by the Commissioner under a provision of the Inland Revenue Acts on or after 1 October 1996, irrespective of the period to which the notice of disputable decision relates; and
(b)
any assessment, reassessment, or determination of the Commissioner if a notice of assessment or reassessment to which section 125A(2)(a) applies has been issued before 1 October 1996, irrespective of the period to which the notice of assessment or reassessment relates.
(2)
This Part does not apply to any assessment or reassessment or determination or decision of the Commissioner to which Part 8 applies by virtue of subsection (1) or subsection (2)(b) of section 125A.
Section 138A: inserted, on 1 October 1996, by section 42 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 138A(1): replaced, on 20 May 1999 (applying on and after 1 October 1996), by section 108(1) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
Section 138A(1)(b): amended, on 1 April 2019, by section 92(1) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 138A(2): amended, on 1 April 2019, by section 92(2) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
138B When disputant entitled to challenge assessment
(1)
A disputant is entitled to challenge an assessment by commencing proceedings in a hearing authority if—
(a)
the assessment includes an adjustment proposed by the Commissioner which the disputant or their look-through company has rejected within the applicable response period; and
(b)
where the assessment is an amended assessment, an adjustment proposed by the Commissioner that is included in the assessment—
(i)
imposes a fresh liability (being a liability that was not included in an earlier assessment) in respect of a particular; or
(ii)
increases an existing liability (being a liability that was included in an earlier assessment but to a lesser extent) in respect of a particular; and
(c)
the disputant files the proceedings, in accordance with the Taxation Review Authority Regulations 1994 (or any regulations made in substitution for those regulations) or the High Court Rules 2016, within the response period following the issue of the relevant notice of assessment.
(2)
A disputant is entitled to challenge an assessment by commencing proceedings in a hearing authority if—
(a)
the assessment was the subject of an adjustment proposed by the disputant which the Commissioner has rejected by notice within the applicable response period; and
(b)
the disputant is subsequently issued with an amended assessment; and
(c)
the disputant files the proceedings, in accordance with the Taxation Review Authority Regulations 1994 (or any regulations made in substitution for those regulations) or the High Court Rules 2016, within the response period following the issue of the amended notice of assessment.
(3)
Subject to subsection (4), a disputant is entitled to challenge an assessment by commencing proceedings in a hearing authority if—
(a)
the assessment was the subject of an adjustment proposed by the disputant which the Commissioner has rejected by notice within the applicable response period; and
(b)
the Commissioner has issued a challenge notice to the disputant; and
(c)
the disputant files the proceedings, in accordance with the Taxation Review Authorities Regulations 1998 (or any regulations made in substitution for those regulations) or the High Court Rules 2016 within 2 months.
(4)
Despite subsection (3), the disputant is entitled to challenge an assessment by commencing proceedings in a hearing authority if—
(a)
the assessment was the subject of an adjustment (the adjustment) notified to the Commissioner specifying the adjustment and sufficient details to identify how the adjustment meets paragraph (c); and
(b)
the Commissioner has issued a challenge notice to the disputant; and
(c)
the adjustment—
(i)
is in relation to a matter for which the material facts and relevant law are identical to those for another assessment for the taxpayer, for another period, that is at the time of proposing the adjustment the subject of court proceedings; or
(ii)
corrects a tax position taken by the taxpayer or an associated person as a consequence or result of an incorrect tax position taken by another taxpayer and, at the time of proposing the adjustment, the incorrect tax position taken by the other taxpayer is the subject of, or was the subject of, court proceedings; and
(d)
the disputant files the proceedings, in accordance with the Taxation Review Authorities Regulations 1998 (or any regulations made in substitution for those regulations) or the High Court Rules 2016 within 2 months.
Section 138B: inserted, on 1 October 1996, by section 42 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 138B(1)(c): amended, on 18 October 2016, by section 183(c) of the Senior Courts Act 2016 (2016 No 48).
Section 138B(2)(a): amended, on 2 June 2016, by section 166(1) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section 138B(2)(c): amended, on 18 October 2016, by section 183(c) of the Senior Courts Act 2016 (2016 No 48).
Section 138B(3): replaced, on 29 August 2011 (applying for a dispute initiated by a taxpayer issuing a notice of proposed adjustment after 29 August 2011), by section 177(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section 138B(3)(a): amended, on 2 June 2016, by section 166(2) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section 138B(3)(c): amended, on 18 October 2016, by section 183(c) of the Senior Courts Act 2016 (2016 No 48).
Section 138B(4): inserted, on 29 August 2011 (applying for a dispute initiated by a taxpayer issuing a notice of proposed adjustment after 29 August 2011), by section 177(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section 138B(4)(a): amended, on 2 June 2016, by section 166(3) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section 138B(4)(d): amended, on 18 October 2016, by section 183(c) of the Senior Courts Act 2016 (2016 No 48).
138C When disputant entitled to challenge disputable decision other than assessment
A disputant is entitled to challenge a disputable decision that is not an assessment by commencing proceedings in a hearing authority if—
(a)
the disputable decision was the subject of an adjustment proposed by the disputant which the Commissioner has rejected; and
(b)
the disputant files the proceedings in accordance with the Taxation Review Authority Regulations 1994 (or any regulations made in substitution for those regulations) or the High Court Rules 2016, within the response period for the notice from the Commissioner rejecting the proposed adjustment.
Section 138C: inserted, on 1 October 1996, by section 42 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 138C(b): amended, on 18 October 2016, by section 183(c) of the Senior Courts Act 2016 (2016 No 48).
138D Challenge may in exceptional circumstances be commenced after response period
(1)
If a hearing authority considers that exceptional circumstances apply, the hearing authority may, on application by a disputant, allow the disputant to commence a challenge to a notice of a disputable decision after the response period.
(2)
For the purposes of subsection (1), an exceptional circumstance is an event or circumstance beyond the control of a disputant that provides the disputant with a reasonable justification for not commencing a challenge to a disputable decision within the response period; but an act or omission of an agent of a disputant is not an exceptional circumstance unless the act or omission was caused by an event or circumstance beyond the control of the agent—
(a)
that could not have been anticipated; and
(b)
the effect of which could not have been avoided by compliance with accepted standards of business organisation and professional conduct.
Section 138D: inserted, on 1 October 1996, by section 42 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
138E Certain rights of challenge not conferred
(1)
This Part does not confer a right of challenge with respect to—
(a)
a decision of the Commissioner under a tax law to enlarge or extend the time for giving notice, making an application, furnishing a tax return, or doing any other act, matter, or thing; or
(b)
a decision of the Minister under a tax law, or an act, matter, or thing done or omitted by the Minister under a tax law; or
(c)
a matter in respect of which provision is made by a tax law—
(i)
for a challenge or objection to the matter to be heard and determined by; or
(ii)
for the matter to be inquired into, considered, reported upon, heard, decided, determined, or otherwise dealt with by; or
(iii)
for the matter to be the subject of any recommendation of,—
a special committee, tribunal, or authority (other than a Taxation Review Authority) established in that behalf or a person or official (other than the Commissioner); or
(d)
a valuation or apportionment made by the Valuer-General or a registered valuer under the Valuation of Land Act 1951 or the Income Tax Act 2007; or
(e)
a matter which by a provision in—
(i)
the PAYE rules; or
(ii)
the provisional tax rules; or
(iib)
section 86H(3) of the Stamp and Cheque Duties Act 1971; or
(iii)
any of sections CD 15, CD 19, HD 2, HD 3(2), HD 5(4), HD 15, HD 24, HD 26 to HD 29, LA 6 to LA 8, LJ 1 to LJ 7, RD 3, RM 2 to RM 4, RM 8, and RM 10 of the Income Tax Act 2007 and sections 18K, 33, 92A, 139 (insofar as it applies to unpaid tax for periods before 1 April 1997) and 184 of the Tax Administration Act 1994; or
(iv)
any of sections 6E, 6F, 17F, 17G, 18I, 21B to 23, 36 to 46, 58, 62, 63, 68CB, 68CC, and 68CD, 78B, 78C, 80, 89C, 89K, 89L, 89M, 89N(1)(c)(viii) and (3), 92, 106, 107, 108B, 109, 110, 111, 113, 114, 120A to 120U, 124ZH, 124ZI, Part 7B, 138I(2B), 138N, 139B, 142A, 142C, 146, 150A, 157, 160, 166, 166B, 167, 174AA, 176, 177, 177A to 177D, 183A, 183D, 183F, and 225B of this Act; or
(ivb)
any of Parts 1 to 3 of the KiwiSaver Act 2006; or
(v)
any of Parts 4, 6, 7 and 11 (other than section 76) of the Goods and Services Tax Act 1985—
is left to the discretion, judgment, opinion, approval, consent, or determination of the Commissioner; or
(ea)
the Commissioner’s interpretation of how a taxation law applies to a person, whether or not the person has come into legal existence, and to an arrangement, whether or not a single or a recurring arrangement, as set out in a binding ruling made under Part 5A; or
(eb)
the Commissioner’s interpretation of whether the amendment or repeal of a taxation law has changed the way that the law applies in a private or a product ruling, as set out in a status ruling made under section 91GA; or
(f)
a matter in respect of which a tax law provides that there shall be no right of objection or challenge to the decision of the Commissioner.
(2)
Subsection (1) may be overruled by a tax law or other law that expressly confers a right of objection or challenge in respect of a decision made by any person.
Section 138E: inserted, on 1 October 1996, by section 42 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 138E(1)(d): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 138E(1)(d): amended, on 1 July 1998, by section 54(1) of the Rating Valuations Act 1998 (1998 No 69).
Section 138E(1)(e)(i): amended, on 26 March 2003 (applying for 2002–03 and subsequent income years), by section 116(1) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
Section 138E(1)(e)(iib): inserted, on 1 April 2025, by section 184 of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
Section 138E(1)(e)(iii): replaced, on 23 September 1997, by section 87(1) of the Taxation (Remedial Provisions) Act 1997 (1997 No 74).
Section 138E(1)(e)(iii): amended, on 1 April 2019, by section 93(1) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 138E(1)(e)(iii): amended (with effect on 1 April 2013), on 17 July 2013, by section 116 of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).
Section 138E(1)(e)(iii): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 138E(1)(e)(iii): amended, on 17 October 2002 (applying on and after 17 October 2002), by section 87(1)(b) of the Taxation (Relief, Refunds and Miscellaneous Provisions) Act 2002 (2002 No 32).
Section 138E(1)(e)(iv): replaced, on 24 October 2001 (applying to 2002–03 and subsequent income years), by section 225(1) of the Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 (2001 No 85).
Section 138E(1)(e)(iv): amended, on 30 March 2022, by section 209(1) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section 138E(1)(e)(iv): amended, on 30 March 2022, by section 209(2) (and see section 209(3) for application) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section 138E(1)(e)(iv): amended, on 1 April 2020, by section 46(1) (and see section 38 for application) of the Taxation (Research and Development Tax Credits) Act 2019 (2019 No 15).
Section 138E(1)(e)(iv): amended (with effect on 1 April 2019), on 23 March 2020, by section 229(1) (and see section 229(2) for application) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 138E(1)(e)(iv): amended, on 1 April 2019, by section 35 (and see section 3 for application) of the Taxation (Research and Development Tax Credits) Act 2019 (2019 No 15).
Section 138E(1)(e)(iv): amended, on 1 April 2019, by section 93(2)(a) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 138E(1)(e)(iv): amended, on 1 April 2019, by section 93(2)(b) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 138E(1)(e)(iv): amended, on 1 April 2019, by section 93(2)(c) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 138E(1)(e)(iv): amended (with effect on 5 February 2017), on 21 February 2017, by section 118 of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
Section 138E(1)(e)(iv): amended, on 29 August 2011, by section 178 of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section 138E(1)(e)(iv): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 138E(1)(e)(iv): amended, on 21 December 2004, by section 122 of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).
Section 138E(1)(e)(iv): amended, on 1 April 2003, by section 116(2) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
Section 138E(1)(e)(iv): amended, on 17 October 2002 (applying on and after 1 December 2002), by section 87(2) of the Taxation (Relief, Refunds and Miscellaneous Provisions) Act 2002 (2002 No 32).
Section 138E(1)(e)(iv): amended, on 24 October 2001 (applying on and after 1 April 2002), by section 225(2) of the Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 (2001 No 85).
Section 138E(1)(e)(ivb): inserted, on 1 December 2006, by section 231 of the KiwiSaver Act 2006 (2006 No 40).
Section 138E(1)(e)(v): inserted, on 21 December 2004, by section 122 of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).
Section 138E(1)(ea): inserted, on 20 May 1999 (applying on and after 20 May 1999), by section 110(2) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
Section 138E(1)(eb): inserted, on 20 May 1999 (applying on and after 20 May 1999), by section 110(2) of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999 (1999 No 59).
138F Challenging disputable decisions which are not assessments
(1)
A disputant may challenge under section 138B an assessment made by the Commissioner that takes account of or relies on a disputable decision, whether or not the disputant has issued a notice of proposed adjustment in respect of the disputable decision.
(2)
Subsection (1) does not apply if—
(a)
the disputant has issued a notice of proposed adjustment in respect of the disputable decision; and
(b)
the disputant’s grounds for challenging the assessment are the same grounds, or substantially the same as the grounds, that were specified in the notice of proposed adjustment.
(3)
In subsection (1), a disputable decision does not include an assessment.
Section 138F: inserted, on 1 October 1996, by section 42 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 138F(1): amended, on 21 December 2004, by section 123 of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).
138G Effect of disclosure notice
(1)
Unless subsection (1B) or (2) apply, if the Commissioner issues a disclosure notice to a disputant, and the disputant challenges the disputable decision, the Commissioner and the disputant may raise in the challenge only the issues and the propositions of law that are disclosed in the Commissioner’s and disputant’s statements of position.
(1B)
If the Commissioner did not issue a statement of position in response to the disputant’s statement of position on or before the required date, and did not issue a statement of position when issuing a disclosure notice, subsection (1) does not apply to limit the issues or propositions of law that may be raised by—
(a)
the Commissioner, if section 89M(6BA)(b)(i) applies:
(b)
the Commissioner or the disputant, if section 89M(6BA)(b)(ii) applies.
(2)
A hearing authority may, on application by a party to a challenge to a disputable decision, allow the applicant to raise in the challenge new propositions of law, and new issues, if satisfied that—
(a)
the applicant could not, at the time of delivery of the applicant’s statement of position, have, with due diligence, discerned those propositions of law or issues; and
(b)
having regard to the provisions of section 89A and the conduct of the parties, the hearing authority considers that the raising of those propositions of law or issues is necessary to avoid manifest injustice to the Commissioner or the disputant.
(3)
For the purposes of subsection (1), a statement of position includes any additional information that the Commissioner and the disputant agree (under section 89M(13)) to add to the statement of position.
Section 138G: inserted, on 1 October 1996, by section 42 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 138G heading: amended, on 29 August 2011 (applying for a dispute or challenge, in relation to which a disclosure notice is issued on or after 29 August 2011), by section 179(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section 138G(1): replaced, on 29 August 2011 (applying for a dispute or challenge, in relation to which a disclosure notice is issued on or after 29 August 2011), by section 179(2) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section 138G(1): amended, on 24 February 2016, by section 264(1) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
Section 138G(1B): inserted, on 24 February 2016, by section 264(2) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
Section 138G(2): amended, on 29 August 2011 (applying for a dispute or challenge, in relation to which a disclosure notice is issued on or after 29 August 2011), by section 179(3)(a) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section 138G(2)(a): amended, on 29 August 2011 (applying for a dispute or challenge, in relation to which a disclosure notice is issued on or after 29 August 2011), by section 179(3)(b) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section 138G(2)(b): amended, on 29 August 2011 (applying for a dispute or challenge, in relation to which a disclosure notice is issued on or after 29 August 2011), by section 179(3)(c) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
138H Application to strike out proceedings
The Commissioner may apply to a hearing authority to strike out a challenge commenced by a disputant if the Commissioner considers that the disputant has failed to comply with any of the requirements of section 89M or section 138B.
Section 138H: inserted, on 1 October 1996, by section 42 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
138I Payment of disputed tax
(1)
[Repealed](2)
A disputant is not liable to pay—
(a)
the deferrable tax relating to any tax in dispute; or
(b)
a shortfall penalty, where the penalty is payable in respect of any tax in dispute; or
(c)
the interest accruing under Part 7 on that deferrable tax or that shortfall penalty—
until the due date for payment of that deferrable tax.
(2B)
Despite subsection (2), the Commissioner may require a disputant to pay all tax in dispute that is the subject of the challenge if the Commissioner considers that there is a significant risk that the tax in dispute will not be paid should the disputant’s challenge not be successful.
(3)
The Commissioner must, after the day of determination of final liability, refund or pay to, or apply on behalf of, a disputant whose challenge is successful—
(a)
the tax in dispute paid in accordance with subsection (2B); and
(b)
interest accrued on the tax in dispute under Part 7.
(4)
Part 7 applies to interest calculated on deferrable tax on and after 1 April 1997, irrespective of whether the challenge relates to a tax year before the 1997–98 tax year.
(5)
If the challenge relates to the 1996–97 or an earlier tax year, interest must be calculated on deferrable tax on and after the date that the period of deferral starts.
Section 138I: inserted, on 1 October 1996, by section 42 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 138I heading: replaced, on 1 April 2003, by section 117(1) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
Section 138I(1): repealed, on 1 April 2003, by section 117(2) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
Section 138I(2B): inserted, on 1 April 2003, by section 117(3) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
Section 138I(3)(a): replaced, on 1 April 2003, by section 117(4) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
Section 138I(3)(b): replaced, on 1 April 2003, by section 117(4) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
Section 138I(4): inserted, on 8 September 1999 (applying on and after 1 April 1997), by section 73 of the Taxation (Remedial Matters) Act 1999 (1999 No 98).
Section 138I(4): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 138I(4): amended, on 1 April 2003, by section 117(5) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
Section 138I(5): inserted, on 8 September 1999 (applying on and after 1 April 1997), by section 73 of the Taxation (Remedial Matters) Act 1999 (1999 No 98).
Section 138I(5): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 138I(5): amended, on 1 April 2003, by section 117(6) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
138J Waiver of payment or security
[Repealed]Section 138J: repealed, on 1 April 2003, by section 118 of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
138K Determination of challenge not to affect other matters
The determination of a challenge by a hearing authority under this Part—
(a)
relates solely to the matter that is the subject of the disputable decision being challenged; and
(b)
does not affect the right of the Commissioner to make a disputable decision relating to a different matter and to amend the disputable decision being challenged in any way rendered necessary by the later disputable decision.
Section 138K: replaced (with effect on 1 October 1996), on 23 September 1997, by section 143(2) of the Taxation (Remedial Provisions) Act 1997 (1997 No 74).
138L Challenging civil penalties
(1)
A person assessed by the Commissioner for a civil penalty—
(a)
may challenge the penalty in the same way as a person may challenge the assessment of tax to which the penalty relates; and
(b)
has the same rights and obligations, in relation to proceedings concerning the penalty, as a person has in relation to proceedings concerning the tax.
(1B)
A person assessed by the Commissioner for a civil penalty that is unrelated to an assessment of tax may challenge the assessment by commencing proceedings in a hearing authority if—
(a)
the assessment was the subject of an adjustment proposed by the person which the Commissioner rejected by notice within the applicable response period; and
(b)
the Commissioner has issued a challenge notice to the person; and
(c)
the person files the proceedings in accordance with the Taxation Review Authorities Regulations 1998 or the High Court Rules 2016 within 2 months.
(2)
Despite subsections (1) and (1B), a person has no right to challenge—
(a)
a civil penalty that is a late filing penalty; or
(b)
a civil penalty for the late payment of tax; or
(c)
a civil penalty imposed under section 215 of the KiwiSaver Act 2006; or
(d)
the percentage applicable to the civil penalty.
Section 138L: inserted, on 1 October 1996, by section 42 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 138L(1): amended, on 30 March 2025, by section 185(1)(a) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
Section 138L(1)(a): amended, on 30 March 2025, by section 185(1)(b) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
Section 138L(1B): inserted, on 30 March 2025, by section 185(2) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
Section 138L(2): replaced, on 30 March 2025, by section 185(3) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
138M Wrong PAYE withholding determination a ground for challenge
A disputant may—
(a)
dispute a notice of proposed adjustment; or
(b)
challenge an assessment—
that is issued by the Commissioner in relation to an amount of tax withheld on the basis of a determination under section RD 3(5) of the Income Tax Act 2007, on the ground that the determination is wrong, whether in fact or in law.
Section 138M: inserted, on 1 October 1996, by section 42 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 138M heading: amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 138M: amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
138N Proceedings may be transferred to different hearing authorities
(1)
If a disputant commences a challenge in the High Court,—
(a)
the Commissioner may apply to the High Court to have the challenge transferred to a Taxation Review Authority; or
(b)
the High Court may, of its own motion, transfer the challenge to a Taxation Review Authority.
(2)
If a disputant commences a challenge in a Taxation Review Authority, the Commissioner may apply to the High Court to have the challenge transferred to the High Court.
(3)
The High Court may order that any proceedings transferred to the High Court under this section are to be transferred into the Court of Appeal.
Section 138N: inserted, on 1 October 1996, by section 42 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 138N(2): replaced, on 29 August 2011 (applying for a dispute or challenge, in relation to which there has been no election into the small claims jurisdiction of a Taxation Review Authority before 29 August 2011), by section 180(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
138O Transfer from small claims jurisdiction of Taxation Review Authority
[Repealed]Section 138O: repealed, on 29 August 2011 (applying for a dispute or challenge, in relation to which there has been no election into the small claims jurisdiction of a Taxation Review Authority before 29 August 2011), by section 181(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
138P Powers of hearing authority
(1)
On hearing a challenge, a hearing authority may—
(a)
confirm or cancel or vary an assessment, or reduce the amount of an assessment, or increase the amount of an assessment to the extent to which the Commissioner was able to make an assessment of an increased amount at the time the Commissioner made the assessment to which the challenge relates; or
(b)
make an assessment which the Commissioner was able to make at the time the Commissioner made the assessment to which the challenge relates, or direct the Commissioner to make such an assessment.
(1B)
If a taxpayer brings a challenge and proves, on the balance of probabilities, that the amount of an assessment is excessive by a specific amount, a hearing authority must reduce the taxpayer’s assessment by the specific amount.
(2)
If the challenge relates to a disputable decision that is not an assessment, the hearing authority—
(a)
must not make or alter the disputable decision; and
(b)
may direct the Commissioner to alter the disputable decision to the extent necessary to conform to the decision of the hearing authority with the effect the hearing authority specifies.
(3)
Subject to subsection (4), the Commissioner must make or amend an assessment or other disputable decision in such a way that it conforms to the hearing authority’s determination.
(4)
The Commissioner is not required to make or amend an assessment or other disputable decision before the resolution of appeal procedures from the hearing authority.
(5)
The time bars in sections 108, 108A, 108AB, and 108B do not apply with respect to—
(a)
a determination of a hearing authority made under subsection (1)(a) or subsection (1B) of this section or an amendment made by the Commissioner to an assessment for the purpose of conforming to such a determination; or
(b)
an assessment made by a hearing authority under subsection (1)(b) or the Commissioner under subsection (3).
Section 138P: inserted, on 1 October 1996, by section 42 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 138P(1B): inserted, on 26 March 2003 (applying to a challenge that is brought on or after 26 March 2003), by section 119(1) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
Section 138P(3): amended, on 24 October 2001 (applying to 2002–03 and subsequent income years), by section 236(1) of the Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 (2001 No 85).
Section 138P(4): amended, on 24 October 2001 (applying to 2002–03 and subsequent income years), by section 236(1) of the Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 (2001 No 85).
Section 138P(5): amended, on 30 March 2022, by section 210 of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section 138P(5)(a): amended, on 26 March 2003 (applying to a challenge that is brought on or after 26 March 2003), by section 119(2) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
Section 138P(5)(a): amended, on 24 October 2001 (applying to 2002–03 and subsequent income years), by section 236(3) of the Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 (2001 No 85).
138Q Challenges designated as test cases
(1)
The Commissioner may designate a challenge as a test case, if the Commissioner considers that determination of the challenge is likely to be determinative of all or a substantial number of the issues involved in 1 or more other challenges.
(2)
Test cases are to be heard in the High Court.
Section 138Q: inserted, on 1 October 1996, by section 42 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
138R Stay of proceedings for similar cases
(1)
The Commissioner may stay proceedings by issuing a notice notifying a disputant that a challenge is to be stayed because a test case on a similar challenge or objection is to be heard by the High Court.
(2)
The Commissioner may issue a notice staying proceedings under subsection (1) only if—
(a)
the Commissioner considers that the test case is likely to be determinative of all or a substantial number of the issues in the challenge proposed to be stayed; and
(b)
the challenge proposed to be stayed has not been determined by a hearing authority.
(3)
When a disputant receives a notice staying proceedings, the disputant may issue a notice requiring that there be no stay of proceedings that notifies the Commissioner that the disputant requires the challenge to be heard even though a test case is to be heard.
(4)
Within 14 days after the Commissioner receives a notice requiring that there be no stay of proceedings, the Commissioner may apply to the High Court for an order that the challenge be stayed pending the determination of the test case or the further order of the court.
(5)
If a challenge is stayed, the disputant or the Commissioner may apply to the High Court for an order that the challenge cease to be stayed.
(6)
A stay under subsection (1) lapses on the expiry of 14 days following the day on which any of the following occurs:
(a)
the expiry of the 14-day period specified in subsection (4), if the disputant has issued a notice requiring there to be no stay of proceedings and the Commissioner has not within the 14-day period made an application under subsection (4); or
(b)
the making by the High Court of an order dismissing an application by the Commissioner under subsection (4); or
(c)
the making by the High Court, on an application under subsection (5), of an order that the challenge cease to be stayed; or
(d)
the determination of the test case which caused the challenge to be stayed by the expiration of all rights of appeal.
(7)
For so long as a challenge is stayed,—
(a)
any time limits or periods specified in or under this Act (other than in this section) in relation to the challenge are not to apply; and
(b)
where the stay of a challenge lapses, any time limits or periods so specified are to be treated as if they were extended by the period commencing with the date of the notice staying proceedings, and ending with the day on which the stay lapses.
(8)
The Commissioner may give notices required by this section by formally notifying either the disputant or a solicitor who is authorised to accept service on their behalf at the contact address referred to in section 14G(c) or by effective delivery to an address supplied by the disputant.
Section 138R: inserted, on 1 October 1996, by section 42 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 138R(8): replaced, on 2 June 2016, by section 167 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
138S Challenge to be heard before Taxation Review Authority
(1)
A challenge to a disputable decision made by the Commissioner under—
(a)
the Student Loan Scheme Act 2011, or any provision of this Act that applies in relation to an employer’s obligation under the Student Loan Scheme Act 2011; and
(b)
the Child Support Act 1991, or any provision of this Act that applies in relation to an employer’s obligation under the Child Support Act 1991; and
(c)
any other tax law, where that tax law or another tax law specifies that the disputable decision is to be determined by a Taxation Review Authority,—
is to be commenced, heard, and finally determined by a Taxation Review Authority.
(2)
Subsection (1) prevails over any other section in this Part.
Section 138S: inserted, on 1 October 1996, by section 42 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 138S(1)(a): amended, on 1 April 2012, by section 223 of the Student Loan Scheme Act 2011 (2011 No 62).
Part 9 Penalties
Part 9: replaced, on 26 July 1996, by section 43 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
139 Purposes of this Part
The purposes of this Part are—
(a)
to encourage taxpayers to comply voluntarily with their tax obligations and to co-operate with the department; and
(b)
to ensure that penalties for breaches of tax obligations are imposed impartially and consistently; and
(c)
to sanction non-compliance with tax obligations effectively and at a level that is proportionate to the seriousness of the breach.
Section 139: replaced, on 26 July 1996, by section 43 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Civil penalties
Heading: inserted, on 26 July 1996, by section 43 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
139A Late filing penalty for certain returns
(1)
This section applies to tax returns required to be furnished under sections 33, 41 to 44, and 79 (in this Part, annual tax returns), the return required to be provided under section 78J, the annual ICA return required to be furnished under section 69(1) and (2)(a) by an Australian ICA company that is not required to furnish a return of income for a tax year, the statement required to be provided under section 54B, and the employment income information required to be provided under sections 23E to 23J.
(2)
A taxpayer is liable to pay a late filing penalty if—
(a)
the taxpayer does not complete and provide on time—
(i)
an annual tax return:
(ib)
a multinational top-up tax return:
(ii)
an annual ICA return required to be furnished under section 69(1) and (2)(a):
(iii)
[Repealed](iiib)
a return required to be furnished under section 57B:
(iiic)
a statement for payment of RLWT required to be provided under section 54B:
(iv)
their employment income information; and
(b)
the Commissioner notifies the taxpayer that the penalty is payable.
(3)
The late filing penalty for an annual tax return for a taxpayer with net income—
(a)
below $100,000, is $50;
(b)
between $100,000 and $1,000,000 (both figures inclusive), is $250;
(c)
above $1,000,000, is $500.
(3B)
The late filing penalty for a multinational top-up tax return is $500.
(4)
The late filing penalty for an annual ICA return or reconciliation statement or employment income information or statement for RLWT is $250.
(5)
Except in the case of a late filing penalty resulting from employment income information, or from a multinational top-up tax return, or from a tax return required under sections 16 to 18 of the Goods and Services Tax Act 1985, the Commissioner must, not less than 30 days before imposing a late filing penalty,—
(a)
send notice to a taxpayer that a late filing penalty may be imposed if a return specified in the notice is not filed; or
(b)
publicly notify that a late filing penalty may be imposed on taxpayers who omit to file the required return.
(6)
Subsections (7) and (8) apply in relation to a late filing penalty when a taxpayer fails to provide employment income information to the Commissioner by a due date when, for the 12-month period before the due date, the taxpayer has delivered on time all the required income information.
(7)
The Commissioner must notify the taxpayer,—
(a)
first, that a late filing penalty will be payable for a further failure to provide income information on time:
(b)
secondly, that the penalty is payable when a further failure occurs after the notice referred to in paragraph (a) has been given.
(8)
For employment income information, the maximum penalty that may be imposed in relation to a month, regardless of the number of failures to provide employment income information, is $250.
(9)
[Repealed](10)
[Repealed]Section 139A: inserted, on 26 July 1996, by section 43 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 139A heading: amended (with effect on 1 April 1999), on 19 December 2007 (applying for employer monthly schedules due on or after 1 April 1999), by section 241(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 139A(1): replaced, on 7 October 1998 (applying to an employer monthly schedule and a reconciliation statement in relation to tax deductions from source deduction payments made on or after 1 April 1999 and annual tax returns for 1999–2000 and subsequent income years), by section 32(1) of the Taxation (Simplification and Other Remedial Matters) Act 1998 (1998 No 101).
Section 139A(1): amended, on 1 January 2025, by section 151(1)(a) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
Section 139A(1): amended, on 1 January 2025, by section 151(1)(b) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
Section 139A(1): amended, on 30 March 2021, by section 171(1) of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
Section 139A(1): amended, on 1 April 2019, by section 352(1) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 139A(1): amended, on 1 July 2016, by section 82(1) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).
Section 139A(1): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 139A(1): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 139A(1): amended (with effect on 1 April 2003), on 25 November 2003, by section 128(1) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).
Section 139A(2)(a): replaced (with effect on 1 April 2003), on 25 November 2003, by section 128(2) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).
Section 139A(2)(a)(ii): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 139A(2)(a)(ib): inserted, on 1 January 2025, by section 151(2) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
Section 139A(2)(a)(iii): repealed, on 30 March 2021, by section 171(2) of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
Section 139A(2)(a)(iiib): inserted, on 1 October 2007, by section 198 of the Taxation (Savings Investment and Miscellaneous Provisions) Act 2006 (2006 No 81).
Section 139A(2)(a)(iiic): inserted, on 1 July 2016, by section 82(2) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).
Section 139A(2)(a)(iv): amended, on 1 April 2019, by section 352(2) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 139A(3B): inserted, on 1 January 2025, by section 151(3) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
Section 139A(4): replaced, on 7 October 1998 (applying to an employer monthly schedule and a reconciliation statement in relation to tax deductions from source deduction payments made on or after 1 April 1999 and annual tax returns for 1999–2000 and subsequent income years), by section 32(3) of the Taxation (Simplification and Other Remedial Matters) Act 1998 (1998 No 101).
Section 139A(4): amended, on 1 April 2019, by section 352(3) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 139A(4): amended, on 1 July 2016, by section 82(3) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).
Section 139A(4): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 139A(4): amended (with effect on 1 April 2003), on 25 November 2003, by section 128(3) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).
Section 139A(5): inserted, on 23 September 1997, by section 89 of the Taxation (Remedial Provisions) Act 1997 (1997 No 74).
Section 139A(5): amended, on 1 January 2025, by section 151(4) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
Section 139A(5): amended, on 1 April 2019, by section 352(4) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 139A(5): amended, on 1 April 2008 (applying for a tax return required to be furnished under sections 16–18 of the Goods and Services Tax Act 1985 and due on or after 1 April 2008), by section 241(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 139A(5)(a): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 139A(6): replaced, on 1 April 2019, by section 352(5) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 139A(6): amended, on 1 April 2023, by section 195(1) (and see section 195(4) for application) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 139A(7): inserted, on 1 April 2019, by section 352(5) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 139A(7): amended, on 1 April 2023, by section 195(2) (and see section 195(4) for application) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 139A(8): inserted, on 1 April 2019, by section 352(5) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 139A(9): repealed, on 1 April 2023, by section 195(3) (and see section 195(4) for application) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 139A(10): repealed, on 1 April 2022, by section 211(1) (and see section 211(2) for application) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
139AAA Late filing penalty for GST returns
(1)
This section applies to a tax return (a GST return) required to be furnished by a registered person under sections 16 to 18 of the Goods and Services Tax Act 1985.
(2)
A registered person is liable to pay a late filing penalty if—
(a)
the registered person does not complete and provide a GST return by the due date for filing the GST return; and
(b)
the registered person has failed to file on time a GST return due in the period—
(i)
beginning with the later of 1 April 2008 and the day 12 months before the due date; and
(ii)
ending before the due date; and
(c)
the Commissioner notifies the registered person that the penalty is payable.
(3)
The late filing penalty for a GST return for a registered person is—
(a)
$250, if on the due date for filing the GST return the registered person accounts for tax payable on an invoice basis or hybrid basis; or
(b)
$50, if on the due date for filing the GST return the registered person accounts for tax payable on a payments basis.
(4)
The Commissioner must—
(a)
give notice to the registered person that a late filing penalty will be payable for a further failure to file a GST return on time, if the registered person has filed on time all GST returns due for filing in the period—
(i)
beginning with the later of 1 April 2008 and the day 12 months before the due date; and
(ii)
ending before the due date; or
(b)
give notice to the registered person that the penalty is payable, if the registered person has not filed on time all GST returns due for filing in the period referred to in paragraph (a).
Section 139AAA: inserted, on 1 April 2008 (applying for a tax return required to be furnished under sections 16–18 of the Goods and Services Tax Act 1985 and due on or after 1 April 2008), by section 242(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
139AA Non-electronic filing penalty
(1)
This section applies to—
(a)
an employer who must comply, in a prescribed electronic format, with section 23E; and
(aba)
a person who is required to provide investment income information to the Commissioner under sections 25F to 25M and 25N; and
(ab)
a portfolio investment entity; and
(ac)
a portfolio investor proxy; and
(ad)
a registered person; and
(b)
a PAYE intermediary.
(2)
The person is liable to a non-electronic filing penalty if the person furnishes a return required to be in electronic format in a format that is not prescribed.
(3)
Subsection (2) does not apply if the employer is authorised under sections 23D(4) and 23G to provide their employment income information in a format that is not prescribed.
(4)
For employment income information, the maximum penalty that may be imposed in relation to a month, regardless of the number of failures to provide employment income information, is the greater of $250 or $1 for each employee whose employment income information is not in the prescribed electronic form or delivered by the prescribed means of electronic communication at any time in the month.
(5)
For GST purposes, the non-electronic filing penalty is $250.
(6)
For investment income information, the non-electronic filing penalty is $250.
(7)
[Repealed]Section 139AA: inserted, on 7 October 1998 (applying to employer monthly schedules required to be furnished on and after 1 April 1999), by section 33(1) of the Taxation (Simplification and Other Remedial Matters) Act 1998 (1998 No 101).
Section 139AA(1): replaced, on 26 March 2003 (applying for pay periods beginning on and after 1 April 2004), by section 120(1) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
Section 139AA(1)(a): amended, on 1 April 2019, by section 353(1) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 139AA(1)(aba): inserted, on 1 April 2020, by section 353(2) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 139AA(1)(ab): inserted, on 1 October 2007, by section 199(1) of the Taxation (Savings Investment and Miscellaneous Provisions) Act 2006 (2006 No 81).
Section 139AA(1)(ac): inserted (with effect on 1 October 2007), on 24 February 2016, by section 265 of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
Section 139AA(1)(ad): inserted, on 29 March 2018, by section 353(3) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 139AA(2): replaced, on 1 October 2007, by section 199(2) of the Taxation (Savings Investment and Miscellaneous Provisions) Act 2006 (2006 No 81).
Section 139AA(2): amended, on 29 March 2018, by section 353(4) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 139AA(3): amended, on 1 April 2019, by section 353(5) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 139AA(4): replaced, on 1 April 2019, by section 353(6) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 139AA(5): inserted, on 29 March 2018, by section 353(7) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 139AA(6): inserted, on 1 April 2020, by section 353(8) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 139AA(7): repealed, on 1 April 2022, by section 212(1) (and see section 212(2) for application) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
139AAB Penalty for large multinational group failing to meet country-by-country reporting requirements
(1)
This section applies when a large multinational group with an ultimate owner that is a New Zealand resident fails to comply with the requirements of section 78G.
(2)
The ultimate owner is liable to pay a penalty under this section.
(3)
The penalty under this section is the amount specified by the Commissioner, which must not exceed $100,000.
(4)
The due date for payment of a penalty imposed under this section is the later of—
(a)
30 days after the date on which the Commissioner issues the notice of assessment for the penalty:
(b)
the date specified by the Commissioner in the notice of assessment as being the due date for payment of the penalty.
Section 139AAB: inserted, on 29 March 2024, by section 152(1) (and see section 152(2) for application) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
139AB Penalty for member of large multinational group failing to provide information
(1)
A member of a large multinational group is liable to pay a penalty under this section if—
(a)
the Commissioner requires the member under section 17B to provide information or a document that is treated under section 17E(2) as being in the knowledge, possession, or control of the company; and
(b)
the member fails to provide the information or document within the time allowed by the Commissioner.
(2)
The penalty under this section is the amount specified by the Commissioner, which must not exceed $100,000.
Section 139AB: inserted, on 27 June 2018, by section 59 of the Taxation (Neutralising Base Erosion and Profit Shifting) Act 2018 (2018 No 16).
Section 139AB(1)(a): amended (with effect on 18 March 2019), on 29 March 2025, by section 186 of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
Section 139AB(1)(a): amended (with effect on 18 March 2019), on 30 March 2021, by section 172 of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
139ABB Penalty for failing to register or provide information for purposes of applied global anti-base erosion rules
(1)
A taxpayer is liable to pay a penalty under this section if—
(a)
the taxpayer does not apply for registration as required under section 78H; or
(b)
the taxpayer does not comply with the requirements of section 78I.
(2)
The penalty under this section is the amount specified by the Commissioner, which must not exceed $100,000.
(3)
The due date for payment of a penalty imposed under this section is the later of—
(a)
30 days after the date on which the Commissioner issues the notice of assessment for the penalty:
(b)
the date specified by the Commissioner in the notice of assessment as being the due date for payment of the penalty.
Section 139ABB: inserted, on 1 January 2025, by section 153 of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
139AC Penalty for trustee’s failure to register, provide information for, foreign exemption trust
(1)
A trustee of a foreign exemption trust is liable to pay a penalty under this section if the trustee fails to comply with the requirements of section 22, 59B, 59C, or 59D.
(2)
The penalty under this section is the amount specified by the Commissioner, which must not be more than $1,000.
(3)
A trustee is not liable to pay a penalty under this section for a failure to comply with requirements if the Commissioner is satisfied that the trustee makes reasonable efforts to comply with the requirements and to remedy the non-compliance with the requirements.
(4)
The due date for payment of a penalty imposed under this section is the later of—
(a)
30 days after the date on which the Commissioner issues the notice of assessment for the penalty:
(b)
the date specified by the Commissioner in the notice of assessment as being the due date for payment of the penalty.
Section 139AC: inserted, on 1 April 2023, by section 196 of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
139B Late payment penalty
(1)
This section applies to a taxpayer if and to the extent to which the taxpayer does not pay by the default date an amount of tax (the unpaid tax), calculated by the taxpayer as payable or for which the taxpayer is assessed, and—
(a)
the unpaid tax is provisional tax or a penalty relating to a failure to pay provisional tax:
(b)
ignoring any failure to pay for which a penalty or interest is remitted under section 183AA, the Commissioner determines that the taxpayer has failed to pay on time an amount of tax due for payment in the period—
(i)
beginning with the later of 1 April 2008 and the day 2 years before the default date; and
(ii)
ending before the default date:
(c)
ignoring any failure to pay for which a penalty or interest is remitted under section 183AA, the Commissioner determines that the taxpayer has paid on time amounts of tax due for payment in the period referred to in paragraph (b) and—
(i)
the Commissioner gives the taxpayer a notice setting a further date for payment of the unpaid tax; and
(ii)
the taxpayer does not pay the unpaid tax before the date that is the earlier of the further date and the date that is 1 month after the date of the notice.
(1B)
[Repealed](2)
The taxpayer is liable to pay a late payment penalty consisting of—
(a)
an initial late payment penalty equal to the total of—
(i)
1% of the unpaid tax; and
(ii)
4% of the amount of tax to pay at the end of the sixth day after the day on which a penalty under subparagraph (i) is imposed; and
(b)
an incremental late payment penalty equal to 1% of the amount of tax to pay determined on each day that falls 1 month after a day on which a penalty is imposed under—
(i)
this subsection:
(ii)
subsection (2A)(a) or (2B) as they were before the enactment of section 243 of the Taxation (Business Taxation and Remedial Matters) Act 2007.
(2A)
[Repealed](2B)
Despite subsection (2)(b), a taxpayer is not liable to pay an incremental late payment penalty to the extent to which the relevant tax to pay is—
(a)
GST for a GST return period ending within 8 days of 31 March 2017:
(b)
GST for a GST return period ending after 31 March 2017:
(bb)
further income tax under section OB 65, OB 66, OK 21, or OK 22 of the Income Tax Act 2007 imposed for the 2018–19 and later income years:
(bc)
imputation additional tax under section OB 71 or OB 72 of that Act imposed for the 2018–19 and later income years:
(c)
provisional tax or income tax for the 2017–18 or later income years:
(d)
described in section MF 5 or MF 6 of the Income Tax Act 2007, or is otherwise the overpayment or over-crediting of WFF tax credits, and relates to the 2017–18 or later income years:
(e)
civil penalties for tax and periods described in paragraphs (a) to (d):
(f)
an electronic sales suppression penalty under section 141EE.
(2C)
Despite subsection (2), a taxpayer is not liable to pay a late payment penalty or an incremental late payment penalty to the extent to which the relevant tax to pay is the repayment of an overpaid FamilyBoost tax credit calculated under subpart MH of the Income Tax Act 2007.
(3)
An initial late payment penalty is added to the unpaid tax to which it relates—
(a)
on the day after the default date for the unpaid tax, if it is imposed under subsection (2)(a)(i):
(b)
at the end of the sixth day after the day referred to in paragraph (a), if it is imposed under subsection (2)(a)(ii).
(3A)
[Repealed](3B)
The part of an initial late payment penalty imposed under subsection (2)(a)(ii) is not to be added if the Commissioner has exercised powers available under section 157 or schedule 5, part C, clause 4(3) of this Act or section 43 of the Goods and Services Tax Act 1985 or any similar tax law before the end of the 6th day after the day on which an initial late payment penalty is imposed under subsection (2)(a)(i) and has received the tax withheld or deducted in accordance with the requirements of a notice issued as a result of the Commissioner exercising those powers.
(4)
An incremental late payment penalty is to be added to the tax to pay to which it relates on the day after the last day of successive monthly intervals during which the tax to pay remains unpaid.
(5)
If an incremental late payment penalty would, apart from this subsection, be added to any tax to pay on a date that does not exist in a month, the penalty is to be added to the tax to pay on the last day of the month.
(5A)
An incremental late payment penalty is not to be added if, for a month during which the tax to pay remains unpaid, the Commissioner has exercised powers available under section 157 or schedule 5, part C, clause 4(3) of this Act or section 43 of the Goods and Services Tax Act 1985 or any similar tax law and has received the tax withheld or deducted in accordance with the requirements for the month of a notice issued as a result of the Commissioner exercising those powers.
(5B)
A taxpayer is liable to pay a late payment penalty under subsection (2) in relation to a default date if—
(a)
the Commissioner has given the taxpayer a notice of a further date for the payment of unpaid tax under subsection (1)(c)(i); and
(b)
after giving the notice, the Commissioner becomes aware of a default by the taxpayer that arose before the date of the notice; and
(c)
the further date for payment referred to in paragraph (a)—
(i)
falls outside the period referred to in subsection (1)(b); and
(ii)
should have been given in relation to the default referred to in paragraph (b).
(5C)
If the taxpayer enters into an instalment arrangement for the default under section 177B and a late payment penalty is imposed under section 139BA(1), the taxpayer is treated for the purposes of this section as paying on time, to the extent of the default, the amount of tax due for payment.
(6)
In this section and section 139BA—
(aa)
the term default date means, for an amount of tax,—
(i)
its due date; or
(ii)
its collection date, described in section 142A(6), if the amount has a new due date set under section 142A(5):
(a)
the term tax to pay means, at any time, an amount equal to the unpaid tax together with any late payment penalty that has been imposed in whole or in part in respect of the unpaid tax, to the extent that at that time the amount remains unpaid:
(b)
the unpaid tax is deemed to be the last part of any tax to pay that a taxpayer pays:
(bb)
for a person that section 120KBB applies to, the term unpaid tax includes, for a failure to pay 1 or more of any of the instalments of provisional tax other than the final instalment on the relevant instalment dates for the tax year, the amount of unpaid tax given by section 120KBB(3) for the date:
(c)
the term unpaid tax includes an amount of tax that must be withheld or deducted and paid to the Commissioner under a tax law but does not include a late payment penalty or a shortfall penalty imposed under section 141ED.
Section 139B: inserted, on 26 July 1996, by section 43 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 139B(1): replaced, on 1 April 2008 (applying for unpaid tax that on or after 1 April 2008 becomes due for payment), by section 243(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 139B(1): amended (with effect on 5 February 2017), on 21 February 2017, by section 119(1) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
Section 139B(1): amended, on 1 April 2016, by section 266 of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
Section 139B(1): amended, on 1 April 2016, by section 201 of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).
Section 139B(1)(b): amended (with effect on 5 February 2017), on 21 February 2017, by section 119(2) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
Section 139B(1)(b): amended (with effect on 1 October 2010), on 21 December 2010, by section 157(1) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
Section 139B(1)(b): amended, on 1 October 2010, by section 55(1) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
Section 139B(1)(c): amended (with effect on 5 February 2017), on 21 February 2017, by section 119(3) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
Section 139B(1)(c): amended (with effect on 1 October 2010), on 21 December 2010, by section 157(2) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
Section 139B(1)(c): amended, on 1 October 2010, by section 55(2) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
Section 139B(1B): repealed, on 1 April 2022, by section 213(1) (and see section 213(5) for application) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section 139B(2): replaced, on 1 April 2008 (applying for unpaid tax that on or after 1 April 2008 becomes due for payment), by section 243(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 139B(2A): repealed, on 1 April 2008 (applying for unpaid tax that on or after 1 April 2008 becomes due for payment), by section 243(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 139B(2B): replaced, on 1 April 2017, by section 120(1) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
Section 139B(2B)(bb): inserted (with effect on 1 April 2018), on 18 March 2019, by section 95 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 139B(2B)(bc): inserted (with effect on 1 April 2018), on 18 March 2019, by section 95 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 139B(2B)(f): inserted, on 30 March 2022, by section 213(2) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section 139B(2C): inserted (with effect on 1 July 2024), on 29 March 2025, by section 187 of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
Section 139B(3): replaced, on 1 April 2008 (applying for unpaid tax that on or after 1 April 2008 becomes due for payment), by section 243(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 139B(3A): repealed, on 1 April 2008 (applying for unpaid tax that on or after 1 April 2008 becomes due for payment), by section 243(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 139B(3B): replaced, on 17 October 2002 (applying on and after 1 December 2002), by section 88(4) of the Taxation (Relief, Refunds and Miscellaneous Provisions) Act 2002 (2002 No 32).
Section 139B(3B): amended (with effect on 1 April 2019), on 30 March 2022, by section 213(3) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section 139B(3B): amended, on 1 April 2017, by section 120(2) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
Section 139B(3B): amended, on 1 April 2008 (applying for unpaid tax that on or after 1 April 2008 becomes due for payment), by section 243(2)(a) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 139B(3B): amended, on 1 April 2008 (applying for unpaid tax that on or after 1 April 2008 becomes due for payment), by section 243(2)(b) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 139B(3B): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 139B(5A): replaced, on 17 October 2002 (applying on and after 1 December 2002), by section 88(6) of the Taxation (Relief, Refunds and Miscellaneous Provisions) Act 2002 (2002 No 32).
Section 139B(5A): amended (with effect on 1 April 2019), on 30 March 2022, by section 213(4) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section 139B(5A): amended, on 1 April 2017, by section 120(3) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
Section 139B(5A): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 139B(5B): inserted (with effect on 1 April 2008), on 6 October 2009 (applying for unpaid tax that becomes due for payment on or after 1 April 2008), by section 672(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 139B(5C): inserted (with effect on 1 April 2008), on 6 October 2009 (applying for unpaid tax that becomes due for payment on or after 1 April 2008), by section 672(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 139B(6): amended, on 17 October 2002 (applying on and after 1 December 2002), by section 88(7) of the Taxation (Relief, Refunds and Miscellaneous Provisions) Act 2002 (2002 No 32).
Section 139B(6)(aa): inserted (with effect on 5 February 2017), on 21 February 2017, by section 119(5) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
Section 139B(6)(bb): inserted, on 1 April 2017 (applying for the 2017–18 and later income years), by section 120(4) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
Section 139B(6)(bb): amended (with effect on 1 April 2017), on 23 March 2020, by section 230(1) (and see section 230(2) for application) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 139B(6)(c): replaced (with effect on 1 April 2008), on 6 October 2009 (applying for a tax position taken on or after 1 April 2008), by section 672(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
139BA Imposition of late payment penalties when financial relief sought
(1)
If a taxpayer has outstanding tax and asks for financial relief before the default date, the Commissioner must impose the late payment penalty under section 139B(2)(a)(i) on unpaid tax but must not impose the late payment penalty under section 139B(2)(a)(ii).
(2)
If a taxpayer has outstanding tax and asks for financial relief on or after the default date, the Commissioner must not impose an incremental late payment penalty on unpaid tax on and after the date of the request.
(3)
Subsections (1) and (2) apply until the earlier of—
(a)
the date that the Commissioner makes a decision not to give financial relief; and
(b)
the last day of the response period allowed by section 177(4) if the taxpayer does not provide the information sought or respond to a counter offer.
(4)
If an instalment arrangement is entered into, an incremental late payment penalty is not to be added if, for a month during which the tax to pay remains unpaid, the taxpayer complies with all of their obligations under the arrangement.
(5)
If an instalment arrangement is cancelled on the basis of false or misleading information provided by the taxpayer, the Commissioner must impose those late payment penalties not imposed as if the instalment arrangement had not been entered into.
(6)
If financial relief is not given, the Commissioner must impose those late payment penalties not imposed as if the request for financial relief had not been made.
Section 139BA: inserted, on 17 October 2002 (applying on and after 1 December 2002), by section 89(1) of the Taxation (Relief, Refunds and Miscellaneous Provisions) Act 2002 (2002 No 32).
Section 139BA(1): amended (with effect on 5 February 2017), on 21 February 2017, by section 121(1) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
Section 139BA(1): amended, on 2 June 2016, by section 168(1) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section 139BA(1): amended, on 1 April 2008 (applying for unpaid tax that on or after 1 April 2008 becomes due for payment), by section 244(1)(a) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 139BA(1): amended, on 1 April 2008 (applying for unpaid tax that on or after 1 April 2008 becomes due for payment), by section 244(1)(b) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 139BA(2): amended (with effect on 5 February 2017), on 21 February 2017, by section 121(2) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
Section 139BA(2): amended, on 2 June 2016, by section 168(2) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section 139BA(3)(b): replaced (with effect on 1 April 2008), on 6 October 2009 (applying for 2008–09 and later income years), by section 673(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
139C Late payment penalty and provisional tax
(1)
A late payment penalty will only arise on provisional tax that is unpaid at the expiry of an instalment date, or a Commissioner-set instalment date, to the extent that the provisional tax payable exceeds the provisional tax paid. Subsection (1B) overrides this subsection and subsection (1D) modifies this subsection.
(1B)
Subsection (1C) applies if—
(a)
a person makes an election under section RM 11 of the Income Tax Act 2007 that an amount of a GST refund (elected amount) be used to pay an amount of provisional tax due on an instalment date; and
(b)
the Commissioner reassesses the amount of the GST refund as being less than the elected amount.
(1C)
The person is not liable for a late payment penalty in relation to the amount of any shortfall in the person’s payment of provisional tax that arises as a result of the reassessment referred to in subsection (1B) until—
(a)
the date that is 30 days after the date on which the Commissioner gives notice of the reassessment, if the Commissioner does not set a date under paragraph (b); or
(b)
a date set by the Commissioner that is later than the date referred to in paragraph (a).
(1D)
Despite subsection (1), for a person that section 120KBB applies to, the only amount of unpaid tax for a failed instalment described in section 120KBB(3) is the amount of unpaid tax given by section 120KBB(3)(b) for the date. Subsection (1E) applies to the final instalment.
(1E)
Despite subsection (1), for a person that section 120KBB applies to, the only amount of unpaid tax for a failed instalment that is the final instalment is the amount of unpaid tax that would be given by section 120KBB(3)(b) if that section applied to the final instalment.
(2)
In subsection (1)—
Commissioner-set instalment date means a date specified by the Commissioner under section 119(4)(a)
provisional tax paid, in respect of an instalment date or a Commissioner-set instalment date, means the amount of provisional tax paid by the provisional taxpayer on or before the instalment date or Commissioner-set instalment date, in relation to that instalment date or Commissioner-set instalment date; and includes any amount of provisional tax—
(a)
paid in excess of the amount of provisional tax payable on any earlier instalment date or Commissioner-set instalment date for that tax year; and
(b)
not credited to the amount of provisional tax payable on any earlier instalment date or Commissioner-set instalment date for that tax year
provisional tax payable—
(a)
in respect of an instalment date and a taxpayer to whom section RC 10 of the Income Tax Act 2007 applies, means the lesser of:
(i)
the amount calculated as payable under section RC 10 of that Act; and
(ii)
the amount calculated as payable under section RC 10 of that Act if the taxpayer’s residual income tax is substituted for the amount of provisional tax payable under section RC 5 of that Act:
(aa)
in respect of an instalment date and a taxpayer to whom sections RC 10 and RC 21 of the Income Tax Act 2007 applies, means the lesser of—
(i)
the amount calculated as payable under sections RC 10 and RC 21 of that Act; and
(ii)
the amount calculated as payable under sections RC 10 and RC 21 of that Act if the taxpayer’s residual income tax is substituted for item residual income tax in the formula in section RC 10(2) of that Act:
(ab)
for an instalment date and a taxpayer to whom section RC 11 of the Income Tax Act 2007 applies, means the lesser of—
(i)
the amount calculated under section RC 11 of that Act:
(ii)
the amount calculated as payable under section RC 11 of that Act, if the GST ratio is substituted for a GST ratio which is calculated using the taxpayer’s residual income tax for the tax year and taxable supplies for the corresponding income year:
(b)
in respect of a Commissioner-set instalment date, means the provisional tax payable on the Commissioner-set instalment date in accordance with section 119(4)(a).
Section 139C: inserted, on 26 July 1996, by section 43 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 139C(1): amended, on 1 April 2017 (applying for the 2017–18 and later income years), by section 122(1) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
Section 139C(1B): inserted, on 1 October 2007 (applying for income years corresponding to 2008–09 and subsequent tax years), by section 247(2) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).
Section 139C(1B)(a): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 139C(1C): inserted, on 1 October 2007 (applying for income years corresponding to 2008–09 and subsequent tax years), by section 247(2) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).
Section 139C(1D): inserted, on 1 April 2017 (applying for the 2017–18 and later income years), by section 122(2) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
Section 139C(1D): amended (with effect on 1 April 2017), on 23 March 2020, by section 231(1) (and see section 231(3) for application) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 139C(1E): inserted (with effect on 1 April 2017), on 23 March 2020, by section 231(2) (and see section 231(3) for application) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
Section 139C(2) provisional tax paid paragraph (a): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 139C(2) provisional tax paid paragraph (b): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 139C(2) provisional tax payable paragraph (a): replaced, on 10 October 2000 (applying to 1998–99 and subsequent income years), by section 73(1) of the Taxation (GST and Miscellaneous Provisions) Act 2000 (2000 No 39).
Section 139C(2) provisional tax payable paragraph (a): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 139C(2) provisional tax payable paragraph (a)(i): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 139C(2) provisional tax payable paragraph (a)(i): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 139C(2) provisional tax payable paragraph (a)(ii): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 139C(2) provisional tax payable paragraph (a)(ii): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 139C(2) provisional tax payable paragraph (aa): inserted, on 10 October 2000 (applying to 1998–99 and subsequent income years), by section 73(1) of the Taxation (GST and Miscellaneous Provisions) Act 2000 (2000 No 39).
Section 139C(2) provisional tax payable paragraph (aa): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 139C(2) provisional tax payable paragraph (aa)(i): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 139C(2) provisional tax payable paragraph (aa)(i): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 139C(2) provisional tax payable paragraph (aa)(ii): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), pursuant to section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 139C(2) provisional tax payable paragraph (aa)(ii): amended, on 1 October 2007 (applying for income years corresponding to 2008–09 and subsequent tax years), by section 247(3)(c) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).
Section 139C(2) provisional tax payable paragraph (aa)(ii): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 139C(2) provisional tax payable paragraph (ab): inserted (with effect on 1 October 2007), on 19 December 2007 (applying for 2008–09 and later income years), by section 245(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
140 Where another person withholds RWT
For the purposes of determining a person’s liability to pay a late payment penalty, the person is treated as having withheld or accounted for an amount of tax if—
(a)
they are liable to pay the late payment penalty for—
(i)
not withholding resident withholding tax (RWT) under the RWT rules; or
(ii)
not accounting for RWT under the RWT rules; and
(b)
they can satisfy the Commissioner that another person, under the RWT rules,—
(i)
withheld the RWT; or
(ii)
accounted for the RWT.
Section 140: replaced, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
140A Underestimation penalty where income tax underestimated as at final instalment date
[Repealed]Section 140A: repealed, on 23 September 1997 (applying to the 1998–99 and subsequent income years), by section 91 of the Taxation (Remedial Provisions) Act 1997 (1997 No 74).
140B Imputation penalty tax payable where end of year debit balance
(1)
A company that is liable to pay further income tax under section OB 65 of the Income Tax Act 2007 in respect of an end of year debit balance or imputation additional tax under section OB 72 of that Act is also liable to pay a special tax known as imputation penalty tax.
(2)
The amount of the imputation penalty tax payable by a company is 10% of the amount of—
(a)
further income tax that gives rise to the liability for further imputation penalty tax:
(b)
imputation additional tax that gives rise to the liability for further imputation penalty tax.
(3)
The amount given by subsection (2) for the year ending 31 March 2010 is reduced by the amount of imputation penalty tax payable under section 140BB.
Section 140B: inserted, on 26 July 1996, by section 43 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 140B(1): amended, on 1 April 2017, by section 338 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
Section 140B(1): amended (with effect on 30 June 2009), on 6 October 2009 (applying for all income years beginning on or after 1 July 2009), by section 674(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 140B(1): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 140B(1): amended (with effect on 16 November 2004), on 21 June 2005, by section 146(1) of the Taxation (Base Maintenance and Miscellaneous Provisions) Act 2005 (2005 No 79).
Section 140B(2): replaced (with effect on 16 November 2004), on 21 June 2005, by section 146(2) of the Taxation (Base Maintenance and Miscellaneous Provisions) Act 2005 (2005 No 79).
Section 140B(2)(b): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 140B(3): inserted (with effect on 1 October 2007), on 19 December 2007 (applying for 2008–09 and later income years), by section 246(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
140BB Transitional imputation penalty tax payable in some circumstances
[Repealed]Section 140BB: repealed, on 1 October 2010, by section 43 of the Taxation (Budget Measures) Act 2010 (2010 No 27).
140C Transitional imputation penalty tax payable in some circumstances
[Repealed]Section 140C: repealed (with effect on 1 October 2010), on 17 July 2013, by section 117 of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).
140CA Transitional FDP penalty tax payable in some circumstances
[Repealed]Section 140CA: repealed (with effect on 30 June 2009), on 6 October 2009 (applying for all income years beginning on or after 1 July 2009), by section 678(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
140CB Maori authority distribution penalty tax payable where end of year debit balance
(1)
A Maori authority that is liable to pay further income tax under sections OK 21 and OK 22 of the Income Tax Act 2007 for an end of year debit balance is also liable to pay a special tax known as Maori authority distribution penalty tax.
(2)
The amount of the Maori authority distribution penalty tax is 10% of the amount of further income tax that gives rise to the liability for the Maori authority distribution penalty tax.
Section 140CB: inserted, on 26 March 2003 (applying for 2004–05 and subsequent income years), by section 121(1) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
Section 140CB(1): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
140D Application of other provisions of Act to imputation penalty tax and dividend withholding payment penalty tax
[Repealed]Section 140D: repealed, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
140DB Application of other provisions of Act to Maori authority distribution penalty tax
[Repealed]Section 140DB: repealed, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
141 Tax shortfalls
(1)
Tax shortfalls are to be calculated by the Commissioner in accordance with this section unless otherwise specified in a provision of an Inland Revenue Act.
(2)
A tax shortfall calculation is required each time a taxpayer is liable to pay a shortfall penalty, subject to sections 141AA(1) and 141EE(4).
(3)
A separate tax shortfall calculation is required—
(a)
for each return period; and
(b)
for each tax type; and
(c)
for each tax position taken by a taxpayer.
(4)
Each tax deemed to be another tax is a separate tax type.
(5)
If, in a return period—
(a)
a taxpayer is liable to pay 1 or more shortfall penalties in respect of the same tax type; and
(b)
the taxpayer’s liability to the tax is overstated in 1 or more respects—
the tax shortfall for a tax type shall be calculated by—
(c)
setting off the tax effects of the overstatements against the understatement, in the case of 1 tax shortfall; and
(d)
setting off the tax effects of the overstatements prorated against the understatements, in the case of more than 1 tax shortfall.
(6)
If—
(a)
a taxpayer’s tax position in respect of a tax type (in this subsection referred to as tax one) in a return period is adjusted by the Commissioner, and the tax effect of the adjustment is a tax shortfall; and
(b)
as a result or consequence of the adjustment, the Commissioner also adjusts the taxpayer’s tax position in respect of another type of tax (in this subsection referred to as tax two) in the same return period, and the tax effect of the further adjustment is an entitlement to a refund or to an increased refund of tax,—
the Commissioner may, for the purpose of imposing a penalty, treat an amount up to the refund, or increased refund, of tax two as though it were tax one paid by the taxpayer in the return period, and in so doing reduce the tax shortfall for tax one.
(7)
If—
(a)
a taxpayer’s tax position in respect of a tax type in a return period is adjusted by the Commissioner, and the tax effect of the adjustment is a tax shortfall; and
(b)
linked to the adjustment, the Commissioner adjusts another taxpayer’s tax position in respect of the same tax type in the same return period, and the tax effect of the further adjustment is an entitlement to a refund or an increased refund of tax or a reduction in tax to pay; and
(c)
the 2 taxpayers are associated persons,—
the Commissioner may, for the purpose of imposing a penalty, treat an amount up to the refund, or increased refund, or reduction, of tax as though it were tax paid by the taxpayer referred to in paragraph (a) in the return period, and in so doing reduce that taxpayer’s tax shortfall.
(7B)
The Commissioner may exercise the discretion under subsection (7) in relation to a taxpayer and an associated person having a different return period if—
(a)
subsection (7) would apply to the taxpayer in the absence of this subsection if the associated person’s return period were the same as the taxpayer’s return period; and
(b)
the taxpayer’s return period affected by the adjustment referred to in subsection (7)(a) overlaps the associated person’s return period affected by the adjustment referred to in subsection (7)(b); and
(c)
the taxpayer’s tax position is not an abusive tax position and does not involve evasion or a similar act.
(7C)
[Repealed](7D)
[Repealed](8)
The Commissioner may treat the companies in a wholly-owned group as if they were a single taxpayer for the purposes of determining a tax shortfall.
(9)
If, in the application of subsection (6), 2 types of tax have different return periods, the Commissioner may, for the purpose of determining a tax shortfall, specify that part of 1 or more return periods for one of the tax types is to be treated as the same return period for the other tax type.
(10)
If—
(a)
in a return period, a taxpayer takes a taxpayer’s tax position—
(i)
in respect of, or as a consequence of entering into, an arrangement; or
(ii)
in respect of an article, item, or matter; and
(b)
in the same return period, the taxpayer takes a similar or identical taxpayer’s tax position—
(i)
in respect of, or as a consequence of entering into, a similar or identical arrangement; or
(ii)
in respect of a similar or identical article, item, or matter,—
the tax shortfalls arising from the taxpayer’s tax positions are to be aggregated and deemed to be 1 tax shortfall.
(11)
[Repealed](12)
The tax effect of a tax position taken by a taxpayer in a return period is to be calculated having regard to—
(a)
the marginal rate or rates of tax applicable to the taxpayer during the return period; and
(b)
where the taxpayer has no tax to pay in the return period, the rate of tax or lowest marginal rate of tax that would apply to the taxpayer during the return period, if the taxpayer had tax to pay.
(12A)
Where a life insurer derives policyholder income in a tax year and the life insurer’s tax position in respect of the policyholder base income tax liability gives rise to a tax shortfall, the Commissioner shall not assess under sections 141A to 141EB a penalty on the proportion of the tax shortfall that is attributable to the life insurer’s tax position in respect of the amount of underwriting income represented by underwriting result in the formula in section EY 43(1) of the Income Tax Act 2007.
(13)
In this section, tax does not include a civil penalty.
(14)
For the purposes of determining the amount of a tax shortfall in relation to an instalment date and a provisional taxpayer other than a date and taxpayer using the AIM method, the tax shortfall shall be the difference between—
(a)
the lesser of—
(i)
the amount of provisional tax payable on the instalment date if an estimate had not applied at that instalment date; and
(ii)
the amount that would have been payable on that instalment date if the taxpayer’s provisional tax payable for the tax year had been the taxpayer’s residual income tax liability for the tax year; and
(b)
the amount of provisional tax payable on that instalment date as determined by the estimate applying as at that instalment date.
Section 141: replaced, on 26 July 1996, by section 43 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 141(1): amended (with effect on 1 April 2009), on 31 March 2023, by section 197(1) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 141(2): amended, on 30 March 2022, by section 214 of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section 141(2): amended, on 21 December 2004 (applying for withholding payments made on or after 1 April 2005), by section 125(1) of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).
Section 141(3): replaced (with effect on 1 April 1997), on 23 September 1997, by section 92(1) of the Taxation (Remedial Provisions) Act 1997 (1997 No 74).
Section 141(5): replaced (with effect on 1 April 1997), on 23 September 1997, by section 92(2) of the Taxation (Remedial Provisions) Act 1997 (1997 No 74).
Section 141(7): amended, on 1 April 2008 (applying for tax positions taken on or after 1 April 2008), by section 250(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 141(7)(b): amended, on 1 April 2008 (applying for tax positions taken on or after 1 April 2008), by section 250(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 141(7)(c): replaced, on 1 April 2010, by section 679(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 141(7B): inserted, on 1 April 2008 (applying for tax positions taken on or after 1 April 2008), by section 250(3) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 141(7C): repealed (with effect on 1 April 2009), on 31 March 2023, by section 197(2) (and see section 197(3) for application) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 141(7D): repealed (with effect on 1 April 2009), on 31 March 2023, by section 197(2) (and see section 197(3) for application) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 141(9): amended (with effect on 1 April 1997), on 23 September 1997, by section 92(3) of the Taxation (Remedial Provisions) Act 1997 (1997 No 74).
Section 141(11): repealed, on 24 October 2001 (applying on first day of 2002–03 income year), by section 227(1) of the Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 (2001 No 85).
Section 141(12A): inserted, on 26 July 1996 (applying to 1997–98 and subsequent income years), by section 474(2) of the Taxation (Core Provisions) Act 1996 (1996 No 67).
Section 141(12A): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 141(12A): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 141(12A): amended, on 26 March 2003 (applying to an arrangement that a taxpayer enters into on or after 26 March 2003), by section 123(1) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
Section 141(14): inserted (with effect on 1 April 1997), on 23 September 1997, by section 92(4) of the Taxation (Remedial Provisions) Act 1997 (1997 No 74).
Section 141(14): amended, on 1 April 2018 (applying for the 2018–19 and later income years), by section 59(1) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
Section 141(14)(a)(ii): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
141AA Shortfall penalty if non-resident contractor relieved from all liability to pay tax on contract payment
(1)
If a person makes a schedular payment that is a contract payment to a person who is a non-resident contractor and the non-resident contractor is not liable to pay income tax on the contract payment, whether because of a double tax agreement or otherwise, the person who makes the contract payment to the non-resident contractor is liable to pay a shortfall penalty of $250 for each month—
(a)
for which the person is required to deliver to the Commissioner employment income information; and
(b)
in which the person fails to withhold an amount of tax that is required from a contract payment to the non-resident contractor.
(2)
A person who is liable to pay a shortfall penalty under subsection (1) is not liable to pay a shortfall penalty based on the tax shortfall that, but for this section, would be calculated under section 141 in relation to the amount of tax required to be withheld.
(3)
The liability under subsection (1) of a person is limited to a total of $1,000 for each month for which the person is required to deliver to the Commissioner employment income information.
Section 141AA: inserted, on 21 December 2004 (applying for withholding payments made on or after 1 April 2005), by section 126(1) of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).
Section 141AA(1): amended, on 1 April 2019, by section 354(a) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 141AA(1): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 141AA(1)(a): amended, on 1 April 2019, by section 354(b) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 141AA(1)(b): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 141AA(2): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 141AA(3): amended, on 1 April 2019, by section 354(a) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 141AA(3): amended, on 1 April 2019, by section 354(b) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
141A Not taking reasonable care
(1)
A taxpayer is liable to pay a shortfall penalty if the taxpayer does not take reasonable care in taking a taxpayer’s tax position (referred to as not taking reasonable care) and the taking of that tax position by that taxpayer results in a tax shortfall.
(2)
The penalty payable for not taking reasonable care is 20% of the resulting tax shortfall.
(2B)
A taxpayer who, in taking a tax position, relies on an action or advice of a tax advisor engaged by the taxpayer, or by a company in the same group of companies as the taxpayer, takes reasonable care in relying on the action or advice except if the taxpayer—
(a)
is the employer of the tax advisor:
(b)
does not provide to the tax advisor adequate information relating to the tax position:
(c)
does not provide to the tax advisor adequate instructions relating to the tax position:
(d)
has reason to believe that the action or advice is incorrect:
(e)
has previously, for a period ending less than 4 years before the beginning of the period to which the tax position relates, had a tax shortfall for the same type of tax arising from a corresponding tax position and does not take reasonable care to avoid the further tax shortfall.
(3)
A taxpayer who takes an acceptable tax position is also a taxpayer who has taken reasonable care in taking the taxpayer’s tax position.
(4)
Subsection (3) and section 141B(1B) do not exclude a taxpayer who makes a mistake in the calculation or recording of numbers in a return from being liable for a penalty for not taking reasonable care.
(5)
[Repealed]Section 141A: inserted, on 26 July 1996, by section 43 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 141A(1): amended (with effect on 1 April 1997), on 23 September 1997, by section 93(1) of the Taxation (Remedial Provisions) Act 1997 (1997 No 74).
Section 141A(2B): inserted, on 1 April 2008 (applying for tax positions taken on or after 1 April 2008), by section 251(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 141A(3): replaced (with effect on 1 April 1997), on 23 September 1997, by section 93(2) of the Taxation (Remedial Provisions) Act 1997 (1997 No 74).
Section 141A(3): amended, on 26 March 2003 (applying to a tax position that a taxpayer takes on or after 1 April 2003), by section 124(1) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
Section 141A(4): inserted, on 26 March 2003 (applying to a tax position that a taxpayer takes on or after 1 April 2003), by section 124(2) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
Section 141A(5): repealed (with effect on 1 April 2008), on 24 February 2016, by section 267 of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
141B Unacceptable tax position
(1)
A taxpayer takes an unacceptable tax position if, viewed objectively, the tax position fails to meet the standard of being about as likely as not to be correct.
(1B)
A taxpayer does not take an unacceptable tax position merely by making a mistake in the calculation or recording of numbers used in, or for use in preparing, a return.
(1C)
A taxpayer does not take an unacceptable tax position if—
(a)
the taxpayer adopts IFRSs for the purposes of financial reporting before the 2007–08 income year; and
(b)
the taxpayer’s tax position relates to a period—
(i)
starting on and including the first day of the first income year for which a person adopts IFRSs for the purposes of financial reporting; and
(ii)
finishing on and including the last day of the 2006–07 income year; and
(c)
a tax shortfall for a return period in the period described in paragraph (b) arises from actual or potential accounting under IFRSs; and
(d)
the tax shortfall is due to an application of IFRSs which, if viewed objectively, passes the standard of being about as likely as not to represent acceptable accounting practice under IFRSs; and
(e)
the taxpayer has fully disclosed the IFRS-related tax position.
(1D)
A taxpayer does not take an unacceptable tax position to the extent to which they have taken their position because they have relied on a Commissioner’s official opinion.
(1E)
A taxpayer does not take an unacceptable tax position merely by using the AIM method and an approved AIM provider’s AIM-capable accounting system.
(1F)
Subsection (1E) does not apply for a taxpayer that—
(a)
is approved under section 124ZE:
(b)
uses a large business AIM-capable system.
(2)
A taxpayer is liable to pay a shortfall penalty if the taxpayer takes an unacceptable tax position in relation to income tax as defined in section YA 1 of the Income Tax Act 2007, but ignoring the effect of section RA 2 of that Act, and the tax shortfall arising from the taxpayer’s tax position is more than both—
(a)
$50,000:
(b)
1% of the taxpayer’s total tax figure for the relevant return period.
(3)
For the purposes of this section, a taxpayer’s total tax figure is—
(a)
the amount of tax paid or payable by the taxpayer in respect of the return period for which the taxpayer takes the taxpayer’s tax position before, in the case of income tax, any group offset election or subvention payment; or
(b)
where the taxpayer has no tax to pay in respect of the return period, an amount equal to the product of—
(i)
the net loss of the taxpayer in respect of the return period, ascertained in accordance with the provisions of the Income Tax Act 2007 and treated as having a positive value; and
(ii)
the basic rate of income tax for companies in the relevant return period,—
that is shown as tax paid or payable, or as net losses of the taxpayer, or as a refund to which the taxpayer is entitled, in a tax return provided by the taxpayer for the return period.
(4)
Where subsection (2) applies, the shortfall penalty payable is 20% of the resulting tax shortfall.
(5)
For the purposes of this section, the question whether any tax position is acceptable or unacceptable shall be determined as at the time at which the taxpayer takes the taxpayer’s tax position.
(6)
The time at which a taxpayer takes a tax position for a return period is—
(a)
the time at which the taxpayer provides the return containing the taxpayer’s tax position, if the taxpayer provides a tax return for the return period:
(b)
the due date for providing the tax return for the return period, if the taxpayer does not provide a tax return for the return period.
(7)
The matters that must be considered in determining whether the taxpayer has taken an unacceptable tax position include—
(a)
the actual or potential application to the tax position of all the tax laws that are relevant (including specific or general anti-avoidance provisions); and
(b)
decisions of a court or a Taxation Review Authority on the interpretation of tax laws that are relevant (unless the decision was issued up to 1 month before the taxpayer takes the taxpayer’s tax position).
(8)
For the purpose of determining whether the resulting tax shortfall is in excess of the amounts specified in subsection (2),—
(a)
a tax return provided by—
(i)
a partnership; or
(ib)
a look-through company; or
(ii)
any other group of persons that derive or incur amounts jointly or that are assessed together,—
is to be treated as if it were a tax return of every taxpayer who is a partner in the partnership, effective look-through interest holder for the look-through company, or person in such group; and
(b)
the tax rate in a return period applying to a partnership or a look-through company is deemed to be the same as the basic rate of income tax for companies for the relevant period.
(9)
The amounts or the percentage specified in subsection (2) may be varied from time to time by the Governor-General by Order in Council.
(10)
An order under subsection (9) is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).
| Legislation Act 2019 requirements for secondary legislation made under this section | ||||
| Publication | PCO must publish it on the legislation website and notify it in the Gazette | LA19 s 69(1)(c) | ||
| Presentation | The Minister must present it to the House of Representatives | LA19 s 114, Sch 1 cl 32(1)(a) | ||
| Disallowance | It may be disallowed by the House of Representatives | LA19 ss 115, 116 | ||
| This note is not part of the Act. | ||||
Section 141B: inserted, on 26 July 1996, by section 43 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 141B heading: replaced, on 26 March 2003 (applying to a tax position that a taxpayer takes on or after 1 April 2003), by section 125(1) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
Section 141B(1): replaced, on 26 March 2003 (applying to a tax position that a taxpayer takes on or after 1 April 2003), by section 125(2) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
Section 141B(1B): inserted, on 26 March 2003 (applying to a tax position that a taxpayer takes on or after 1 April 2003), by section 125(3) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
Section 141B(1B): amended, on 1 April 2008, by section 252(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 141B(1C): inserted (with effect on 1 April 2007), on 19 December 2007, by section 252(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 141B(1D): inserted, on 7 September 2010 (applying if the relevant Commissioner’s official opinion was given by the Commissioner on or after 7 September 2010), by section 171(1) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section 141B(1E): inserted, on 1 April 2018 (applying for the 2018–19 and later income years), by section 60(1) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
Section 141B(1F): inserted, on 1 April 2018 (applying for the 2018–19 and later income years), by section 60(1) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
Section 141B(1F)(a): amended, on 18 March 2019 (immediately after being amended, with effect on 1 April 2018, by section 96), by section 97 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 141B(2): replaced, on 1 April 2008 (applying for tax positions taken on or after 1 April 2008), by section 252(3) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 141B(2): amended (with effect on 1 April 2008 and applying for tax positions taken on or after 1 April 2008), on 30 June 2014, by section 170(1) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).
Section 141B(3): amended (with effect on 1 April 1997), on 23 September 1997, by section 94(2) of the Taxation (Remedial Provisions) Act 1997 (1997 No 74).
Section 141B(3): amended, on 26 July 1996 (applying to 1997–98 and subsequent income years), by section 475(2) of the Taxation (Core Provisions) Act 1996 (1996 No 67).
Section 141B(3)(a): amended, on 23 September 1997, by section 94(3) of the Taxation (Remedial Provisions) Act 1997 (1997 No 74).
Section 141B(3)(b): replaced, on 1 April 2008 (applying for tax positions taken on or after 1 April 2008), by section 252(4) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 141B(5): amended, on 21 June 2005, by section 147(1) of the Taxation (Base Maintenance and Miscellaneous Provisions) Act 2005 (2005 No 79).
Section 141B(6): replaced, on 21 June 2005, by section 147(2) of the Taxation (Base Maintenance and Miscellaneous Provisions) Act 2005 (2005 No 79).
Section 141B(7): amended, on 26 March 2003 (applying to a tax position that a taxpayer takes on or after 1 April 2003), by section 125(5) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
Section 141B(8): amended (with effect on 1 April 2008), on 6 October 2009 (applying for a tax position taken on or after 1 April 2008), by section 680(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 141B(8)(a)(ib): inserted, on 1 April 2011, by section 158(1) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
Section 141B(8)(a) proviso: amended, on 1 April 2011, by section 158(2) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
Section 141B(8)(a)(ii): replaced, on 26 July 1996 (applying to 1997–98 and subsequent income years), by section 475(3) of the Taxation (Core Provisions) Act 1996 (1996 No 67).
Section 141B(8)(b): amended, on 1 April 2011, by section 158(3) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
Section 141B(8)(b): replaced, on 26 July 1996 (applying to 1997–98 and subsequent income years), by section 475(4) of the Taxation (Core Provisions) Act 1996 (1996 No 67).
Section 141B(10): inserted, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
141C Gross carelessness
(1)
A taxpayer is liable to pay a shortfall penalty if the taxpayer is grossly careless in taking a taxpayer’s tax position (referred to as gross carelessness).
(2)
The penalty payable for gross carelessness is 40% of the resulting tax shortfall.
(3)
For the purposes of this Part, gross carelessness means doing or not doing something in a way that, in all the circumstances, suggests or implies complete or a high level of disregard for the consequences.
(4)
A taxpayer who takes an acceptable tax position is also a taxpayer who has not been grossly careless in taking the taxpayer’s tax position.
Section 141C: inserted, on 26 July 1996, by section 43 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 141C(1): amended (with effect on 1 April 1997), on 23 September 1997, by section 95(1) of the Taxation (Remedial Provisions) Act 1997 (1997 No 74).
Section 141C(4): inserted (with effect on 1 April 1997), on 23 September 1997, by section 95(2) of the Taxation (Remedial Provisions) Act 1997 (1997 No 74).
Section 141C(4): amended, on 26 March 2003 (applying to a tax position that a taxpayer takes on or after 1 April 2003), by section 126(1) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
141D Abusive tax position
(1)
The purpose of this section is to penalise those taxpayers who, having taken an unacceptable tax position, have entered into or acted in respect of arrangements or interpreted or applied tax laws with a dominant purpose of taking, or of supporting the taking of, tax positions that reduce or remove tax liabilities or give tax benefits.
(2)
A taxpayer is liable to pay a shortfall penalty if the taxpayer takes an abusive tax position (referred to as an abusive tax position).
(3)
The penalty payable for taking an abusive tax position is 100% of the resulting tax shortfall.
(3B)
The penalty payable for taking an abusive tax position is reduced to 20% of the resulting tax shortfall if—
(a)
the taxpayer is a party to an arrangement to which section 141EB applies and becomes liable to a shortfall penalty for an abusive tax position as a result of that arrangement, irrespective of whether a promoter penalty has been imposed in respect of the arrangement; and
(b)
the sum of the tax shortfall from the arrangement for the taxpayer and the tax shortfalls from the arrangement for persons with whom the taxpayer is associated is less than $50,000; and
(c)
the taxpayer has independent advice stating that the taxpayer’s tax position is not an abusive tax position.
(4)
This section applies to a taxpayer if the taxpayer has taken an unacceptable tax position.
(5)
Section 141B(6) applies for determining the time when a taxpayer takes an abusive tax position.
(6)
A taxpayer’s tax position may be an abusive tax position if the tax position is an incorrect tax position under, or as a result of, either or both of—
(a)
a general tax law; or
(b)
a specific or general anti-avoidance tax law.
(7)
For the purposes of this Part and section 177C, an abusive tax position means a tax position that,—
(a)
is an unacceptable tax position at the time at which the tax position is taken; and
(b)
viewed objectively, the taxpayer takes—
(i)
in respect, or as a consequence, of an arrangement that is entered into with a dominant purpose of avoiding tax, whether directly or indirectly; or
(ii)
where the tax position does not relate to an arrangement described in subparagraph (i), with a dominant purpose of avoiding tax, whether directly or indirectly.
Section 141D: inserted, on 26 July 1996, by section 43 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 141D(1): amended, on 26 March 2003 (applying to a tax position that a taxpayer takes on or after 1 April 2003), by section 127(1) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
Section 141D(3B): inserted, on 26 March 2003 (applying to arrangements entered into on or after 26 March 2003), by section 127(2) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
Section 141D(3B)(b): replaced, on 1 April 2010, by section 681 of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 141D(4): replaced, on 1 April 2008 (applying for tax positions taken on or after 1 April 2008), by section 253(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 141D(7): amended, on 17 October 2002 (applying on and after 1 December 2002), by section 90(1) of the Taxation (Relief, Refunds and Miscellaneous Provisions) Act 2002 (2002 No 32).
Section 141D(7)(a): replaced, on 26 March 2003 (applying to a tax position that a taxpayer takes on or after 1 April 2003), by section 127(4) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
141E Evasion or similar act
(1)
A taxpayer is liable to pay a shortfall penalty if, in taking a tax position, the taxpayer—
(a)
evades the assessment or payment of tax by the taxpayer or another person under a tax law; or
(b)
knowingly applies or permits the application of the amount of a deduction or withholding of tax made or deemed to be made under a tax law for any purpose other than in payment to the Commissioner; or
(c)
knowingly does not make a deduction, withholding of tax, or transfer of payroll donation required to be made by a tax law; or
(d)
obtains a refund or payment of tax, knowing that the taxpayer is not lawfully entitled to the refund or payment under a tax law; or
(da)
attempts to obtain a refund or payment of tax, knowing that the taxpayer is not lawfully entitled to the refund or payment under a tax law; or
(e)
enables another person to obtain a refund or payment of tax, knowing that the other person is not lawfully entitled to the refund or payment under a tax law; or
(f)
attempts to enable another person to obtain a refund or payment of tax, knowing that the other person is not lawfully entitled to the refund or payment under a tax law—
(referred to as evasion or a similar act).
(2)
No person shall be chargeable with a shortfall penalty under subsection (1)(b) if that person satisfies the Commissioner that the amount of the deduction or withholding has been accounted for, and that the person’s failure to account for it within the prescribed time was due to illness, accident, or some other cause beyond the person’s control.
(2B)
No person shall be chargeable with a shortfall penalty under subsection (1)(b) for taking a tax position if the person is chargeable with a shortfall penalty under section 141ED for taking the tax position.
(3)
If a taxpayer enables or attempts to enable another person to obtain a refund or payment of tax, knowing that the other person is not lawfully entitled to the refund or payment under a tax law, the taxpayer is liable to pay to the Commissioner an amount equal to the shortfall penalty that would have been imposed if the other person’s tax position had been the taxpayer’s tax position.
(4)
The penalty payable for evasion or a similar act described in subsection (1) is 150% of the resulting tax shortfall.
Section 141E: inserted, on 26 July 1996, by section 43 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 141E(1)(c): replaced (with effect on 6 January 2010), on 6 October 2009, by section 682 of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 141E(1)(da): inserted, on 27 March 2001, by section 52(1) of the Taxation (Beneficiary Income of Minors, Services-Related Payments and Remedial Matters) Act 2001 (2001 No 4).
Section 141E(1)(e): amended, on 27 March 2001, by section 52(2) of the Taxation (Beneficiary Income of Minors, Services-Related Payments and Remedial Matters) Act 2001 (2001 No 4).
Section 141E(1)(f): inserted, on 27 March 2001, by section 52(2) of the Taxation (Beneficiary Income of Minors, Services-Related Payments and Remedial Matters) Act 2001 (2001 No 4).
Section 141E(2): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 141E(2B): inserted, on 1 April 2008 (applying for tax positions taken on or after 1 April 2008), by section 254(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 141E(3): amended, on 27 March 2001, by section 52(3) of the Taxation (Beneficiary Income of Minors, Services-Related Payments and Remedial Matters) Act 2001 (2001 No 4).
141EA Shortfall penalty and provisional tax
Despite sections 141A to 141E, a provisional taxpayer who uses a GST ratio in a tax year to determine the amount of an instalment of provisional tax payable for the tax year is not liable to pay a shortfall penalty in the following circumstances:
(a)
the taxpayer pays by the instalment date the amount, determined using the GST ratio, of the instalment but underpays their annual liability:
(b)
the taxpayer pays by the instalment date the amount, determined using the GST ratio, of the instalment but the GST ratio is changed after the instalment date by a reassessment of their residual income tax.
Section 141EA: inserted, on 1 October 2007 (applying for income years corresponding to 2008–09 and subsequent tax years), by section 251(1) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).
141EB Promoter penalties
(1)
The promoter of an arrangement is liable to a promoter penalty if—
(a)
a taxpayer becomes a party to the arrangement and a shortfall penalty for an abusive tax position is imposed on the taxpayer as a result of the arrangement; and
(b)
the arrangement is offered, sold, issued or promoted to 10 or more persons in a tax year.
(2)
For the purpose of subsection (1)(b), an arrangement is treated as being offered, sold, issued or promoted to 10 or more persons if 10 or more persons claim tax-related benefits as a result of the arrangement.
(3)
An arrangement is treated as being offered, sold, issued or promoted to all owners of an effective look-through interest for a look-through company (the LTC) and partners of a partnership if the arrangement is offered, sold, issued or promoted to the LTC or partnership respectively.
(4)
The amount of the promoter penalty is the greater of nil and the sum of tax shortfalls resulting from taking an abusive tax position on the arrangement, for which the promoter would have been liable if the promoter had—
(a)
been a party to the arrangement in the place of each party to the arrangement to whom the arrangement was offered, sold, issued or promoted; and
(b)
taken a tax position under which the arrangement is treated as producing for the promoter the taxation-related benefits that were intended by the parties to the arrangement; and
(c)
had the taxation-related characteristics that would, under the tax position referred to in paragraph (b), produce for the promoter the maximum taxation-related benefits from the arrangement.
(5)
A promoter who satisfies paragraph (a) of the definition of promoter in section 141EC is liable for the promoter penalty associated with the arrangement—
(a)
jointly and severally with the other such promoters of the arrangement, for the whole promoter penalty:
(b)
jointly and severally with each promoter of the arrangement who is liable for part of the promoter penalty under subsection (6), for the part of the promoter penalty for which the other promoter is liable.
(6)
A promoter who does not satisfy paragraph (a) of the definition of promoter in section 141EC is jointly and severally liable, with the other promoters of the arrangement, for the portion of the promoter penalty that is associated with the arrangement entered into by taxpayers to whom the promoter offered, sold, issued or promoted the arrangement.
Section 141EB: inserted, on 26 March 2003 (applying to arrangements entered into on and after 26 March 2003), by section 128(1) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
Section 141EB(1)(b): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 141EB(3): amended (with effect on 1 April 2011 and applying for income years starting on or after 1 April 2011), on 30 June 2014, by section 171(1)(a) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).
Section 141EB(3): amended (with effect on 1 April 2011 and applying for income years starting on or after 1 April 2011), on 30 June 2014, by section 171(1)(b) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).
Section 141EB(4)(b): amended (with effect on 26 March 2003), on 25 November 2003 (applying to arrangements entered into on and after 26 March 2003), by section 129(1) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).
141EC Definition of promoter
(1)
In sections 91FC, 91FD, and 141EB, promoter of an arrangement means—
(a)
a person who is a party to, or is significantly involved in formulating, a plan, software, or programme from which an arrangement is offered:
(b)
a person who is aware of material and relevant aspects of the arrangement and who sells, issues or promotes the selling or issuing of, the arrangement, whether or not for remuneration:
(c)
a person who provides services on a contingency fee basis in relation to research and development tax credit claims.
(2)
For the purpose of subsection (1), promoter does not include a person whose involvement with the arrangement is limited to providing legal, accounting, clerical or secretarial services to a promoter.
Section 141EC: inserted, on 26 March 2003 (applying to arrangements entered into on and after 26 March 2003), by section 128(1) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
Section 141EC(1): amended, on 7 September 2010, by section 172 of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section 141EC(1)(a): amended, on 1 April 2019, by section 36(1)(a) (and see section 3 for application) of the Taxation (Research and Development Tax Credits) Act 2019 (2019 No 15).
Section 141EC(1)(a): amended, on 1 April 2019, by section 36(1)(b) (and see section 3 for application) of the Taxation (Research and Development Tax Credits) Act 2019 (2019 No 15).
Section 141EC(1)(b): amended, on 1 April 2019, by section 36(2) (and see section 3 for application) of the Taxation (Research and Development Tax Credits) Act 2019 (2019 No 15).
Section 141EC(1)(c): inserted, on 1 April 2019, by section 36(2) (and see section 3 for application) of the Taxation (Research and Development Tax Credits) Act 2019 (2019 No 15).
141ED Penalty for unpaid amounts of employers’ withholding payments
(1)
A taxpayer is liable to pay a shortfall penalty (the employers’ withholding payment penalty) if—
(a)
the taxpayer—
(i)
provides employment income information to the Commissioner under subpart 3C; and
(ii)
is required to pay to the Commissioner an amount of tax (the required amount) under section RD 4(1) of the Income Tax Act 2007; and
(iii)
fails to pay some or all of the required amount (the unpaid amount) to the Commissioner by the due date; and
(b)
the Commissioner, after the due date for the payment of the required amount, gives the taxpayer notice (the Commissioner’s notice)—
(i)
that the taxpayer is liable to pay a penalty for failing to pay the unpaid amount by the due date and of how the penalty is calculated; and
(ii)
of the circumstances in which further penalties will be imposed and of how a further penalty will be calculated; and
(iii)
of actions that the taxpayer may take to avoid the imposition of further penalties; and
(c)
subsection (3) does not apply to the taxpayer.
(1B)
This section and sections 139A and 139B (which relate to late filing and late payment penalties) do not apply when a non-resident employer incorrectly concludes that they do not have to withhold and pay, or pay, an amount of tax for an amount of tax for a PAYE income payment to a cross-border employee to the Commissioner in an income year, if the employer—
(a)
has either 2 or fewer employees present in New Zealand during the income year or pays $500,000 or less of employment-related taxes for the income year; and
(b)
has, within 60 days of a relevant failure to withhold and pay, or pay, taken reasonable measures to manage their employment-related tax obligations.
(2)
Before giving to the taxpayer the first Commissioner’s notice in relation to the required amount, the Commissioner must give to the taxpayer a notice that a penalty may be imposed under this section if the unpaid amount is not paid.
(3)
A taxpayer is not liable to pay an employers’ withholding payment penalty in relation to an unpaid amount if—
(a)
the taxpayer is a receiver or liquidator—
(i)
appointed after the end of the month in which the employment income information is provided to the Commissioner; and
(ii)
having insufficient funds available to pay the unpaid amount:
(ab)
during the period, the taxpayer is negotiating an instalment arrangement with the Commissioner to pay the unpaid amount:
(b)
the taxpayer—
(i)
agrees with the Commissioner, before the penalty date under subsection (4) for the due amount, to an instalment arrangement (the instalment arrangement), of the same type as an instalment arrangement referred to in section 177B, to pay the unpaid amount; and
(ii)
pays the unpaid amount under the instalment arrangement.
(4)
An employers’ withholding payment penalty payable in relation to an unpaid amount has a due date (the penalty date) that is—
(a)
the date of the Commissioner’s notice, if the penalty is the first penalty in relation to the required amount; or
(b)
1 month after the penalty date for the preceding penalty, if paragraph (a) does not apply.
(5)
The amount of the employers’ withholding payment penalty in relation to an unpaid amount is—
(a)
10% of the unpaid amount on the day before the penalty date, if the taxpayer—
(i)
fails to agree to an instalment arrangement with the Commissioner before the day that is 1 month after the penalty date; and
(ii)
fails to pay the unpaid amount before the day that is 1 month after the penalty date; or
(b)
10% of the unpaid amount on the day before the penalty date, if the taxpayer—
(i)
agrees to an instalment arrangement with the Commissioner before the penalty date; and
(ii)
fails to comply with the instalment arrangement before the day that is 1 month after the penalty date; or
(c)
5% of the unpaid amount on the day before the penalty date, if—
(i)
the taxpayer pays the unpaid amount, or agrees to an instalment arrangement with the Commissioner, after the penalty date and before the day that is 1 month after the penalty date; and
(ii)
paragraph (b) does not apply.
(5B)
For the purposes of subsection (5), if the required amount is varied or corrected by the taxpayer or the Commissioner in the period that starts on the date when the employment income information is provided to the Commissioner and ends on the day before the penalty date, the amount of the penalty that relates to the unpaid amount is based on the varied or corrected amount.
(5C)
An amount paid by the taxpayer or applied by the Commissioner on account of the taxpayer in relation to the taxpayer’s liability to pay unpaid tax and a penalty under this section must first be applied towards payment of the penalty.
(6)
A taxpayer may be liable to pay more than 1 employers’ withholding payment penalty arising from the employment income information.
(7)
The maximum amount of penalties under this section that may be imposed is 150% of the required amount that is unpaid when the first penalty is imposed under this section.
(8)
If the penalty date for a penalty would, in the absence of this subsection, be a date in a month that does not exist in the month, the penalty date is the date of the last day in the month.
Section 141ED: inserted, on 1 April 2008 (applying for tax positions taken on or after 1 April 2008), by section 255(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 141ED heading: replaced, on 1 April 2019, by section 355(1) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 141ED(1): replaced, on 1 April 2019, by section 355(2) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 141ED(1B): inserted, on 1 April 2023, by section 198 of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 141ED(2): amended, on 1 April 2019, by section 355(3) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 141ED(3): amended, on 1 April 2019, by section 355(4)(a) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 141ED(3)(a)(i): replaced, on 1 April 2019, by section 355(4)(b) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 141ED(3)(ab): inserted (with effect on 1 April 2008), on 6 October 2009 (applying for a tax position taken on or after 1 April 2008), by section 683(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 141ED(4): amended, on 1 April 2019, by section 355(5)(a) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 141ED(4)(a): amended, on 1 April 2019, by section 355(5)(b) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 141ED(5): amended, on 1 April 2019, by section 355(6) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 141ED(5B): inserted (with effect on 1 April 2008), on 6 October 2009 (applying for a tax position taken on or after 1 April 2008), by section 683(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 141ED(5B): amended, on 1 April 2019, by section 355(7)(a) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 141ED(5B): amended, on 1 April 2019, by section 355(7)(b) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 141ED(5C): inserted (with effect on 1 April 2008), on 6 October 2009 (applying for a tax position taken on or after 1 April 2008), by section 683(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 141ED(6): amended, on 1 April 2019, by section 355(8) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 141ED(7): amended, on 1 April 2019, by section 355(9) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
141EE Penalty for acquiring or possessing electronic sales suppression tools
(1)
This section applies to a person who—
(a)
is required by a tax law to make or keep records; and
(b)
knowingly acquires, or has possession or control of an electronic sales suppression tool (the suppression tool), or a right to use a suppression tool; and
(c)
has a purpose in relation to the suppression tool of evading the assessment or payment of tax under a tax law, whether by them or by another person.
(2)
This section does not apply when the person—
(a)
acquires a business whose operations include the use of the suppression tool or the right to use it; and
(b)
could not reasonably be expected to be aware of the existence of the suppression tool in the business; and
(c)
has not used the suppression tool in the business.
(3)
The person is liable to pay an electronic sales suppression penalty of $5,000.
(4)
For the purposes of the imposition of a penalty under subsection (3), a person to whom this section applies is liable to pay a single penalty for all related tax types and periods. A further penalty may be imposed for a later period of time for the continued possession or control of, or right to use, the suppression tool.
(5)
For the purposes of subsection (1)(c), and without limiting the provision, a person is treated as meeting the purpose test if they have used the suppression tool to evade the assessment or payment of tax.
Section 141EE: inserted, on 30 March 2022, by section 215 of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
141F Commissioner to determine portions in which shortfall penalty payable by taxpayer and officers of taxpayer
(1)
If—
(a)
a taxpayer is required to make or account for a deduction or withholding of tax under a tax law; and
(b)
an officer of the taxpayer fails to make a deduction or withholding of tax under a tax law or applies or permits to be applied the amount of the deduction or withholding of tax other than in payment to the Commissioner,—
1 shortfall penalty, calculated in accordance with this Part, may be imposed in respect of each tax position taken by the taxpayer.
(2)
If the Commissioner determines that a shortfall penalty is required to be imposed, the Commissioner may determine the portion that each of the taxpayer and the officers is to be liable for that penalty having regard to—
(a)
the acts or omissions of the taxpayer and the officers; and
(b)
whether those acts or omissions were reasonable in the circumstances of the case.
Section 141F: replaced (with effect on 1 April 1997), on 23 September 1997, by section 96 of the Taxation (Remedial Provisions) Act 1997 (1997 No 74).
141FB Reduction of penalties for previous behaviour
(1)
A shortfall penalty (called the current penalty) for which a taxpayer is liable under section 141E is reduced, to 50% of the amount that would be payable by the taxpayer in the absence of this section, if the taxpayer is not—
(a)
convicted of an offence that is a disqualifying offence:
(b)
liable for another shortfall penalty that is a disqualifying penalty for the purpose of this subsection.
(2)
A shortfall penalty (called the current penalty) for which a taxpayer is liable under any of sections 141A to 141D is reduced, to 50% of the amount that would be payable by the taxpayer in the absence of this section, if the taxpayer is not—
(a)
convicted of an offence that is a disqualifying offence:
(b)
liable for another shortfall penalty that is a disqualifying penalty for the purpose of this subsection.
(3)
For the purpose of this section—
disqualifying offence means—
(a)
(b)
an offence under section 143 or 144 that relates to the type of tax to which the current penalty relates and for which a conviction is entered—
(i)
on or after 26 March 2003; and
(ii)
after the date that precedes, by the period specified in subsection (4), the date on which the taxpayer takes the tax position to which the current penalty relates; and
(iii)
before the taxpayer takes the tax position to which the current penalty relates
disqualifying penalty means—
(a)
for the purpose of subsection (1), a shortfall penalty that—
(i)
relates to the type of tax to which the current penalty relates; and
(ii)
is for evasion or a similar act; and
(iii)
is not reduced for voluntary disclosure by the taxpayer; and
(iv)
relates to a tax position that is taken on or after 26 March 2003 and before the date on which the taxpayer takes the tax position to which the current penalty relates:
(b)
for the purpose of subsection (2), a shortfall penalty that—
(i)
relates to the type of tax to which the current penalty relates; and
(ii)
if the current penalty is—
(A)
for gross carelessness or taking an abusive tax position, is a shortfall penalty for evasion or a similar act or for gross carelessness or taking an abusive tax position:
(B)
for not taking reasonable care or taking an unacceptable tax position, is a shortfall penalty of any sort; and
(iii)
is not reduced for voluntary disclosure by the taxpayer; and
(iv)
relates to a tax position that is taken—
(A)
on or after 26 March 2003; and
(B)
after the date that precedes, by the period specified in subsection (4), the date on which the taxpayer takes the tax position to which the current penalty relates; and
(C)
before the date on which the taxpayer takes the tax position to which the current penalty relates.
(4)
The period referred to in the definitions of disqualifying offence and disqualifying penalty, in subsection (3), and in subsection (5) is—
(a)
2 years, if the current penalty relates to—
(i)
the taxpayer’s application of the PAYE rules:
(ii)
FBT:
(iii)
GST:
(iv)
RWT:
(b)
4 years, if the period is not given by paragraph (a).
(5)
For the purpose of subsections (1) and (2), a shortfall penalty that relates to a tax shortfall arising from a tax position taken by a taxpayer is determined as if the taxpayer were not liable for a shortfall penalty that relates to a tax shortfall arising from another tax position taken by the taxpayer, if—
(a)
the Commissioner becomes aware of both tax shortfalls as a consequence of a single investigation or voluntary disclosure; and
(b)
the taxpayer—
(i)
takes both tax positions on the same date:
(ii)
is not liable for a shortfall penalty at any time in the period specified in subsection (4) that ends on the earliest date on which the taxpayer takes a tax position that gives rise to a tax shortfall of which the Commissioner becomes aware as a consequence of the investigation or disclosure to which paragraph (a) refers.
(6)
Despite subsection (1), no reduction in the amount payable is allowed when an electronic sales suppression penalty is imposed under section 141EE(3) on a person—
(a)
who is liable to a penalty under section 141E(1); and
(b)
whose use of an electronic sales suppression tool contributes to the evasion or similar act.
Section 141FB: replaced, on 21 December 2004, by section 127 of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).
Section 141FB(4)(a)(ii): replaced, on 1 April 2008 (effective for 2008–09 income year and later income years, unlessn the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 141FB(4)(a)(iii): replaced, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 141FB(4)(a)(iv): replaced, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 141FB(5): amended (with effect on 21 December 2004), on 21 June 2005, by section 148 of the Taxation (Base Maintenance and Miscellaneous Provisions) Act 2005 (2005 No 79).
Section 141FB(6): inserted, on 30 March 2022, by section 216 of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
141FC Loss attributing qualifying companies—reduction of shortfall penalties
[Repealed]Section 141FC: repealed, on 21 December 2004 (applying with respect to a shortfall penalty that is imposed in relation to a return period beginning on or after 1 April 2005), by section 128(1) of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).
141FD Shareholders of loss-attributing qualifying companies
[Repealed]Section 141FD: repealed (with effect on 1 April 2011 and applying for income years starting on or after 1 April 2011), on 30 June 2014, by section 172(1) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).
141G Reduction in penalty for voluntary disclosure of tax shortfall
(1)
A shortfall penalty payable by a taxpayer under any of sections 141A to 141EB may be reduced if, in the Commissioner’s opinion, the taxpayer makes a full voluntary disclosure to the Commissioner of all the details of the tax shortfall, either—
(a)
before the taxpayer is first notified of a pending tax audit or investigation (referred to in this section as pre-notification disclosure); or
(b)
after the taxpayer is notified of a pending tax audit or investigation, but before the Commissioner starts the audit or investigation (referred to in this section as post-notification disclosure).
(2)
The Commissioner may from time to time—
(a)
specify the information required for a full voluntary disclosure; and
(b)
the form in which it must be provided.
(3)
The level by which the shortfall penalty is reduced—
(a)
for pre-notification disclosure is—
(i)
100%, if the shortfall penalty is for not taking reasonable care, for taking an unacceptable tax position, or for an unacceptable interpretation; or
(ii)
75%, if subparagraph (i) does not apply:
(b)
for post-notification disclosure is 40%.
(4)
A taxpayer is deemed to have been notified of a pending tax audit or investigation, or that the tax audit or investigation has started, if—
(a)
the taxpayer; or
(b)
an officer of the taxpayer; or
(c)
a shareholder of the taxpayer, if the taxpayer is a close company; or
(d)
a tax adviser acting for the taxpayer; or
(e)
a partner in partnership with the taxpayer; or
(f)
a person acting for or on behalf of or as a fiduciary of the taxpayer,—
is notified of the pending tax audit or investigation, or that the tax audit or investigation has started.
(5)
An audit or investigation starts at the earlier of—
(a)
the end of the first interview an officer of the department has with the taxpayer or the taxpayer’s representative after the taxpayer receives the notice referred to in subsection (4); and
(b)
the time when—
(i)
an officer of the department inspects information (including books or records) of the taxpayer after the taxpayer receives the notice referred to in subsection (4); and
(ii)
the taxpayer is notified of the inspection.
Section 141G: inserted, on 26 July 1996, by section 43 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 141G(1): amended, on 26 March 2003 (applying to an arrangement that a taxpayer enters into on or after 26 March 2003), by section 130(1) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
Section 141G(3)(a): replaced (with effect on 17 May 2007), on 19 December 2007 (applying for voluntary disclosures made on or after 17 May 2007), by section 256(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
141GB Reduction of electronic sales suppression penalties
(1)
This section applies when a person—
(a)
is liable to pay an electronic sales suppression penalty imposed under section 141EE; and
(b)
discloses to the Commissioner details relating to the acquisition, possession, control, or use of the electronic sales suppression tool.
(2)
The penalty payable by the person may be reduced if, in the Commissioner’s opinion, the person has made a full disclosure of all the details relating to the suppression tool.
(3)
The disclosure referred to in subsection (1) may be either—
(a)
a pre-notification disclosure made before the person is notified of a pending tax audit or investigation; or
(b)
a post-notification disclosure made after the person is notified of a pending tax audit or investigation, but before the Commissioner starts the audit or investigation.
(4)
The level by which the penalty is reduced under subsection (2) is,—
(a)
for pre-notification disclosure, 100%:
(b)
for post-notification disclosure, 40%.
(5)
Section 141G(4) and (5) apply for the purposes of subsection (3) in determining—
(a)
whether a person has been notified of a pending tax audit or investigation; and
(b)
the time at which an audit or investigation starts.
(6)
The Commissioner may specify the information required for a full disclosure and the form in which it must be provided.
Section 141GB: inserted, on 30 March 2022, by section 217 of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
141GC Grace periods for certain schedular payments
(1)
This section applies when—
(a)
a person (the payer) makes a schedular payment referred to in section RD 3 and schedule 4, part A of the Income Tax Act 2007 to a non-resident contractor; and
(b)
at the time of the payment, it is unclear whether the payer is liable to withhold an amount of tax for the schedular payment, whether because of the application of an exemption threshold or otherwise; and
(c)
some or all of the amount of tax is underpaid at the due date for payment of the tax; and
(d)
the payer is able to demonstrate that they have taken reasonable measures to comply with their tax obligations for the schedular payment.
(2)
When a threshold under section RD 8 of that Act has been breached, the payer has a 60-day period (the grace period) during which they must make a reasonable effort to meet or correct their tax obligations relating to the schedular payments made to the person in relation to the time the person was in New Zealand. The grace period starts to run from the earlier of—
(a)
the date of the breach:
(b)
the date on which the employer could reasonably foresee that a breach will occur.
Section 141GC: inserted, on 1 April 2024, by section 199 of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
141H Reduction for disclosure of unacceptable tax position
(1)
A shortfall penalty payable by a taxpayer under section 141B or section 141D may be reduced if, in the Commissioner’s opinion, the taxpayer makes adequate disclosure of the taxpayer’s tax position at the time, determined under section 141B(6), the taxpayer takes the taxpayer’s tax position.
(2)
The level by which a shortfall penalty is to be reduced for adequate disclosure is 75%.
(3)
The Commissioner may from time to time specify—
(a)
the type of information required for adequate disclosure; and
(b)
the form in which the information must be provided.
Section 141H: inserted, on 26 July 1996, by section 43 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 141H heading: amended, on 26 March 2003 (applying to a tax position that a taxpayer takes on or after 1 April 2003), by section 131(1) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
141I Reduction where temporary shortfall
(1)
A shortfall penalty payable by a taxpayer under any of sections 141A to 141EB must be reduced if and to the extent that the tax shortfall is temporary.
(2)
The level by which a shortfall penalty is to be reduced for a temporary tax shortfall is 75% of the penalty that applies to all or that part of the tax shortfall that is a temporary tax shortfall.
(3)
A tax shortfall is a temporary tax shortfall for the return period of a tax position if, when the Commissioner considers the assessment of a shortfall penalty, the Commissioner is satisfied that—
(a)
the tax shortfall has been or will be, in an earlier or later return period, permanently reversed or corrected—
(i)
before the end of the 4-year period beginning after the day on which the taxpayer took the tax position; and
(ii)
with the effect that the taxpayer pays or returns for the relevant return periods the correct total amount of tax, not including penalties and interest, in respect of the tax position; and
(iii)
as a result of actions taken by the taxpayer or by the operation of law or circumstances; and
(b)
no tax shortfall will arise in a later return period in respect of a similar tax position; and
(c)
no arrangement exists with the purpose or effect of creating for another return period a tax deferral or advantage related to the tax position.
Section 141I: inserted, on 26 July 1996, by section 43 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 141I(1): amended, on 26 March 2003 (applying to an arrangement that a taxpayer enters into on or after 26 March 2003), by section 132(1) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
Section 141I(3): replaced, on 1 April 2008 (applying for tax positions taken on or after 1 April 2008), by section 257(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
141J Limitation on reduction of shortfall penalty
(1)
This section applies to a shortfall penalty payable by a taxpayer if—
(a)
the taxpayer makes a voluntary disclosure; and
(b)
the shortfall penalty is payable in respect of a temporary tax shortfall; and
(c)
the shortfall penalty would be reduced under section 141G or 141H in the absence of this section.
(2)
The shortfall penalty is reduced by—
(a)
100%, if—
(i)
the shortfall penalty is for not taking reasonable care, for taking an unacceptable tax position, or for taking a tax position involving an unacceptable interpretation of a tax law; and
(ii)
the tax shortfall is voluntarily disclosed under section 141G before notification of a pending tax audit or investigation; or
(b)
75%, if paragraph (a) does not apply.
(3)
[Repealed]Section 141J(1): replaced (with effect on 17 May 2007), on 19 December 2007 (applying for voluntary disclosures made on or after 17 May 2007), by section 258(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 141J(2): inserted (with effect on 17 May 2007), on 19 December 2007 (applying for voluntary disclosures made on or after 17 May 2007), by section 258(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 141J(3): repealed (with effect on 17 May 2007), on 6 October 2009 (applying for voluntary disclosures made on or after 17 May 2007), by section 684(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
141JAA Shortfall penalty for not taking reasonable care or for taking unacceptable tax position may not be more than $50,000
(1)
Despite section 141J, a shortfall penalty payable by a taxpayer for not taking reasonable care, or for taking an unacceptable tax position, may not be more than $50,000 if the taxpayer voluntarily discloses the shortfall under section 141G, or the Commissioner determines the shortfall, no later than the date that is the later of—
(a)
the date that is 3 months after the due date of the return to which the shortfall relates; and
(b)
the date that follows the due date of the return to which the shortfall relates by the lesser of—
(i)
1 return period; and
(ii)
6 months.
(2)
This section does not apply if section 141K applies.
Section 141JAA: inserted, on 26 March 2003 (applying to a tax position that a taxpayer takes on or after 1 April 2003), by section 133(1) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
Section 141JAA(1): amended, on 21 December 2010, by section 159 of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
141JA Application of Part 9 to non-filing taxpayers
[Repealed]Section 141JA: repealed (with effect on 1 April 2019), on 23 March 2020, by section 232 of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
141JB Application of Part 9 to PAYE intermediaries
(1)
The provisions relating to the late filing penalty, the late payment penalty and shortfall penalties apply to a person acting as a PAYE intermediary for an employer in relation to an employee and a pay period as if the person were the employer, unless the employer has failed for the pay period to—
(a)
pay to the person the salary or wages relating to the employee as required by sections RP 9 to RP 11 of the Income Tax Act 2007:
(b)
provide the information required by the person as required by section RP 8(b) of that Act.
(2)
The provisions relating to the late filing penalty, the late payment penalty and shortfall penalties do not apply to a PAYE intermediary but continue to apply to the employer if an employer has not paid gross salary or wages to the intermediary or has not supplied the information required by the intermediary within the agreed time.
Section 141JB: inserted, on 26 March 2003 (applying for pay periods beginning on and after 1 April 2004), by section 134(1) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
Section 141JB(1)(a): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 141JB(1)(b): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
141K Increased penalty for obstruction
(1)
A shortfall penalty payable by a taxpayer under any of sections 141AA to 141EB may be increased by the Commissioner if the taxpayer obstructs the Commissioner in determining the correct tax position in respect of the taxpayer’s tax liabilities.
(2)
The level by which a shortfall penalty may be increased for obstruction is 25%.
Section 141K: inserted, on 26 July 1996, by section 43 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 141K(1): amended (with effect on 1 April 2005), on 21 June 2005, by section 149 of the Taxation (Base Maintenance and Miscellaneous Provisions) Act 2005 (2005 No 79).
Section 141K(1): amended, on 26 March 2003 (applying to an arrangement that a taxpayer enters into on or after 26 March 2003), by section 135(1) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
141KB Discretion to cancel some shortfall penalties
[Repealed]Section 141KB: repealed, on 1 April 2008 (applying for tax positions taken on or after 1 April 2008), by section 259(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
141L Duty of Commissioner to report on application of penalties
(1)
The Commissioner shall, as soon as practicable after the end of each financial year, notify the Minister by providing a report on the manner in which the penalties provided for in sections 141A to 141EB have been applied in that financial year.
(2)
The Minister shall, as soon as practicable, lay a copy of that report before the House of Representatives.
Section 141L: inserted, on 26 July 1996, by section 43 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 141L(1): amended, on 2 June 2016, by section 170 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section 141L(1): amended, on 26 March 2003 (applying to an arrangement that a taxpayer enters into on or after 26 March 2003), by section 136(1) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
142 Due date for payment of late filing penalty
(1)
Except in the case of employment income information, or a multinational top-up tax return, or a return required by sections 16 to 18 of the Goods and Services Tax Act 1985, the due date for payment of a late filing penalty is the later of a date specified by the Commissioner (being a date not less than 30 days after the day on which the Commissioner notifies the taxpayer that the penalty is payable), and—
(a)
the terminal tax date for the tax year to which the annual tax return relates; or
(b)
[Repealed](c)
for the reconciliation statement that is required by regulation 3 of the Accident Rehabilitation and Compensation Corporation Insurance (Earnings Definitions) Regulations 1992 or regulation 15 of the Accident Insurance (Premium Payment Procedures) Regulations 1999 or any successor to that regulation made under the Accident Compensation Act 2001, the date by which the employer is required to furnish the reconciliation statement; or
(d)
for an annual ICA return required to be furnished under section 69(1) and (2)(a) by an Australian ICA company that is not required to furnish a return of income for a tax year, the date by which the company is required to furnish the annual ICA return.
(e)
[Repealed](1A)
The due date for the payment of a late filing penalty for failing to provide employment income information is 30 days after the end of the month in which the employer is required to deliver their employment income information to the Commissioner.
(1AB)
The due date for the payment of a late filing penalty for a multinational top-up tax return is the date specified by the Commissioner, which must not be less than 30 days after the day on which the Commissioner notifies the taxpayer that the penalty is payable.
(1B)
The due date for the payment of a late filing penalty for a return required by sections 16 to 18 of the Goods and Services Tax Act 1985 for a taxable period is—
(a)
the 28th day of the second month following the end of the taxable period, if paragraphs (b) and (c) do not apply; or
(b)
the 15th day of February, if the month following the end of the taxable period is December; or
(c)
the 7th day of June, if the month following the end of the taxable period is April.
(2)
In subsection (1), annual tax return and reconciliation statement have the meanings given to them in section 139A.
Section 142: replaced, on 26 July 1996, by section 43 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 142(1): amended, on 1 January 2025, by section 155(1) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
Section 142(1): amended, on 1 April 2019, by section 357(1) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 142(1): amended, on 1 April 2008 (applying for a tax return required to be furnished under sections 16–18 of the Goods and Services Tax Act 1985 and due on or after 1 April 2008), by section 260(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 142(1): amended, on 7 October 1998 (applying on and after 1 April 1999), by section 34(1)(a) of the Taxation (Simplification and Other Remedial Matters) Act 1998 (1998 No 101).
Section 142(1)(a): replaced, on 26 March 2003 (applying for 2002–03 and subsequent income years), by section 137(1) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
Section 142(1)(a): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 142(1)(b): repealed, on 26 March 2003 (applying for 2002–03 and subsequent income years), by section 137(1) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
Section 142(1)(c): replaced, on 7 October 1998 (applying to an annual tax return and reconciliation statements required to be furnished for 1999–2000 and subsequent income years), by section 34(1)(c) of the Taxation (Simplification and Other Remedial Matters) Act 1998 (1998 No 101).
Section 142(1)(c): amended, on 21 December 2010, by section 189 of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
Section 142(1)(c): amended (with effect on 1 April 2003), on 25 November 2003, by section 132 of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).
Section 142(1)(c): amended, on 1 April 2002, by section 338 of the Injury Prevention, Rehabilitation, and Compensation Act 2001 (2001 No 49).
Section 142(1)(d): replaced (with effect on 1 April 2003), on 25 November 2003, by section 132 of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).
Section 142(1)(d): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 142(1)(d): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 142(1)(e): repealed, on 7 October 1998 (applying to an annual tax return and reconciliation statements required to be furnished for 1999–2000 and subsequent income years), by section 34(1)(c) of the Taxation (Simplification and Other Remedial Matters) Act 1998 (1998 No 101).
Section 142(1A): replaced, on 1 April 2019, by section 357(2) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 142(1AB): inserted, on 1 January 2025, by section 155(2) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
Section 142(1B): inserted, on 1 April 2008 (applying for a tax return required to be furnished under sections 16–18 of the Goods and Services Tax Act 1985 and due on or after 1 April 2008), by section 260(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 142(2): amended, on 1 April 2019, by section 357(3) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
142A New due date for payment of tax that is not a penalty
(1A)
This section applies for the transitional period described in subsection (10).
(1)
Subsection (2) applies for a transfer concession tax type if the Commissioner makes for a taxpayer, other than by an assessment (an electronic default assessment) made in the absence of a return and to which section 106(2) applies,—
(a)
an assessment (the new assessment) of tax for the taxpayer, if the taxpayer has not been assessed earlier for the tax, except by an electronic default assessment:
(b)
an amended assessment (the increased assessment)—
(ia)
to which paragraph (a) does not apply; and
(i)
of an amount of tax exceeding the amount for which the taxpayer is liable immediately before the increased assessment; and
(ii)
made less than 30 days before, or on or after, the due date for the tax for which the taxpayer is liable immediately before the increased assessment.
(1B)
[Repealed](2)
The Commissioner must—
(a)
fix a date that is 30 or more days after the date of the notice of the assessment for the payment of—
(i)
the tax under a new assessment:
(ii)
the increase of tax under an increased assessment; and
(b)
give notice of the date to the taxpayer in the notice of the assessment.
(3)
Subsection (2) does not apply—
(a)
to any provisional tax that remains unpaid on an instalment date; or
(ab)
[Repealed](b)
if the Commissioner has notified the taxpayer before the due date for the payment of the tax that subsection (2) will not apply in respect of the tax as calculated by the taxpayer, or in respect of an amount of tax estimated by the taxpayer; or
(c)
if the Commissioner considers that setting a new due date may prejudice the Commissioner’s ability to recover the tax or increased tax.
(4)
Subsections (5), (6), and (7) apply for a tax type that is not a transfer concession tax type if the Commissioner makes for a taxpayer, other than by an assessment (an electronic default assessment) made in the absence of a return and to which section 106(2) applies,—
(a)
an assessment (the new assessment) of tax for the taxpayer, if the taxpayer has not been assessed earlier for the tax, except by an electronic default assessment:
(b)
an amended assessment (the increased assessment)—
(i)
to which paragraph (a) does not apply; and
(ii)
of an amount of tax exceeding the amount for which the taxpayer is liable immediately before the increased assessment; and
(iii)
made less than 30 days before, or on or after, the due date for the tax for which the taxpayer is liable immediately before the increased assessment.
(5)
The date of the notice of the relevant assessment is the due date for the payment of—
(a)
the tax under a new assessment:
(b)
the increase of tax under an increased assessment.
(6)
Despite subsection (5),—
(a)
the Commissioner must fix a date (the collection date) before which the Commissioner must not require payment of the tax or increased tax; and
(b)
the collection date must be 30 or more days after the due date set under subsection (5); and
(c)
the Commissioner must not take any action to collect the tax or increased tax before the collection date, other than under section RM 10(3) of the Income Tax Act 2007 or section 46(6) of the Goods and Services Tax Act 1985.
(7)
The Commissioner must give notice, in the notice of assessment, of the collection date and that—
(a)
the Commissioner does not require payment of the tax or increased tax before the collection date; but
(b)
despite the collection date, any refund of tax that the taxpayer is entitled to may be credited against the tax or increased tax before the collection date, under section RM 10(3) of the Income Tax Act 2007 or section 46(6) of the Goods and Services Tax Act 1985.
(8)
Subsections (5), (6), and (7) do not apply—
(a)
to any provisional tax that remains unpaid on an instalment date; or
(b)
if the Commissioner has notified the taxpayer before the due date for the payment of the tax that subsections (5), (6), and (7) will not apply in respect of the tax as calculated by the taxpayer, or in respect of an amount of tax estimated by the taxpayer; or
(c)
if the Commissioner considers that setting a collection date may prejudice the Commissioner’s ability to recover the tax or increased tax.
(9)
In this section,—
(a)
transfer concession tax type means a tax type for which the Commissioner decides it is appropriate to allow a concession from subsection (4), and the concession is necessary because of resource constraints imposed on the Commissioner during the period of co-existence of 2 Inland Revenue Department software platforms:
(b)
tax does not include a civil penalty.
(10)
For the purposes of subsection (1), the transitional period is the period of co-existence of 2 Inland Revenue software platforms that starts on the date on which the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 receives the Royal assent and ends on the date by which the last Order in Council made under section 142AB(5) brings that section into force for a particular tax type.
(11)
Section 142AB overrides this section, but this section continues to apply for an amount of tax in relation to which an incremental late payment penalty is payable under section 139B.
Section 142A: inserted, on 26 July 1996, by section 43 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 142A(1A): inserted, on 1 April 2018, by section 358(1) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 142A(1): replaced, on 1 April 2008, by section 261(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 142A(1): amended (with effect on 5 February 2017), on 21 February 2017, by section 123(1) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
Section 142A(1): amended (with effect on 6 October 2009), on 30 June 2014, by section 173(1) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).
Section 142A(1)(a): replaced (with effect on 6 October 2009), on 30 June 2014, by section 173(2) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).
Section 142A(1)(b)(ia): inserted (with effect on 6 October 2009), on 30 June 2014, by section 173(3) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).
Section 142A(1B): repealed, on 1 April 2008, by section 261(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 142A(2): replaced, on 1 April 2008, by section 261(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 142A(3): amended, on 1 April 2008, by section 261(2)(a) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 142A(3)(ab): repealed (with effect on 6 October 2009), on 30 June 2014, by section 173(4) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).
Section 142A(3)(b): amended, on 1 April 2008, by section 261(2)(b) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section 142A(4): replaced (with effect on 5 February 2017), on 21 February 2017, by section 123(2) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
Section 142A(5): replaced (with effect on 5 February 2017), on 21 February 2017, by section 123(2) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
Section 142A(6): inserted (with effect on 5 February 2017), on 21 February 2017, by section 123(2) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
Section 142A(7): inserted (with effect on 5 February 2017), on 21 February 2017, by section 123(2) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
Section 142A(8): inserted (with effect on 5 February 2017), on 21 February 2017, by section 123(2) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
Section 142A(9): inserted (with effect on 5 February 2017), on 21 February 2017, by section 123(2) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
Section 142A(10): inserted, on 1 April 2018, by section 358(2) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 142A(11): inserted, on 1 April 2018, by section 358(2) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
142AB New due date for new and increased assessments
(1)
This section applies, subject to the particular commencement dates for different tax types described in subsection (5), when the Commissioner makes either of the following assessments for a taxpayer, other than an assessment (a default assessment) made in the absence of a return and to which section 106(1) applies:
(a)
an assessment (the new assessment) of tax for the taxpayer, if they have not been assessed earlier for the tax:
(b)
an amended assessment (the increased assessment)—
(i)
of an amount of tax that is more than the amount for which the taxpayer is liable immediately before the increased assessment; and
(ii)
made less than 30 days before, or on or after, the due date for the tax for which the taxpayer is liable immediately before the increased assessment; and
(iii)
that is not an increased assessment to a default assessment.
(2)
The Commissioner must—
(a)
fix a date that is 30 or more days after the date of the notice of the assessment for the payment of—
(i)
the tax under a new assessment:
(ii)
the increase of tax under an increased assessment; and
(b)
notify the taxpayer of the date in the notice of assessment.
(3)
Subsection (2) does not apply—
(a)
to an amount of provisional tax that remains unpaid on an instalment date; or
(b)
when the Commissioner has notified the taxpayer before the due date for the payment of the tax that subsection (2) will not apply to the tax as calculated by the taxpayer or to an amount of tax estimated by the taxpayer; or
(c)
when the Commissioner considers that setting a new due date may prejudice the Commissioner’s ability to recover the tax or increased tax.
(4)
In this section, tax does not include a civil penalty.
(5)
This section comes into force on a date appointed by the Governor-General by Order in Council, and 1 or more orders may be made appointing different dates for different tax types and for different purposes. To the extent to which it is not previously brought into force, this section comes into force on 1 April 2023.
(6)
For a tax type in relation to which an order is made under subsection (5), this section applies to a new assessment for the tax type or an increased assessment for the tax type and section 142A does not apply for that tax type.
(7)
An order under subsection (5) is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).
| Legislation Act 2019 requirements for secondary legislation made under this section | ||||
| Publication | PCO must publish it on the legislation website and notify it in the Gazette | LA19 s 69(1)(c) | ||
| Presentation | The Minister must present it to the House of Representatives | LA19 s 114, Sch 1 cl 32(1)(a) | ||
| Disallowance | It may be disallowed by the House of Representatives | LA19 ss 115, 116 | ||
| This note is not part of the Act. | ||||
Section 142AB: inserted, on 1 April 2018, by section 359 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 142AB: so far as it relates to income tax (within the meaning of section YA 1 of the Income Tax Act 2007), brought into force, on 18 July 2019, by clause 2 of the Taxation (New Due Date for New and Increased Assessments) Commencement Order 2019 (LI 2019/21).
Section 142AB: so far as it relates to goods and services tax, brought into force, on 18 June 2018, by clause 2 of the Taxation (New Due Date for New and Increased Assessments) Commencement Order 2018 (LI 2018/73).
Section 142AB(7): inserted, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
142AC New due date for payment of terminal tax by certain individuals
(1)
This section applies when—
(a)
an individual (person A) has, or reasonably expects that they may have, for a period or periods in a tax year, whether the period or periods consist of some or all of the days in the tax year,—
(i)
a tax credit under section LC 13 of the Income Tax Act 2007:
(ii)
an entitlement to a tax credit under the family scheme; and
(b)
person A has met their obligations, if any, under sections 22F(1) and 41 for the tax year within the time allowed; and
(c)
person A’s pre-populated account for the tax year cannot be finalised under section 22H until the Commissioner receives information from another individual who is or was the spouse, civil union partner, or de facto partner of person A; and
(d)
person A’s pre-populated account for the tax year is finalised under section 22H on or after the 30th day before their terminal tax date for the tax year; and
(e)
person A has terminal tax due for the tax year.
(2)
The assessment that person A would be treated as having made under section 22I(1) in the absence of this section is treated, for the purposes of section 142AB, as if it were a new assessment of tax for person A made by the Commissioner.
Section 142AC: inserted, on 1 April 2020, by section 233(1) (and see section 233(2) for application) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
142B Due date for shortfall penalties
(1)
A shortfall penalty is due and payable—
(a)
if the tax shortfall is an amount of unpaid tax—
(i)
for which no new due date is set, on such date as the Commissioner notifies the taxpayer to be the due date for payment of the penalty (which date shall be not less than 30 days after the date on which the Commissioner issues the taxpayer with a notice of assessment for the penalty); or
(ii)
which has a new due date set under section 142A(2), on the due date for the payment of the unpaid tax; or
(iii)
which has a new due date set under section 142A(5), on the collection date, described in section 142A(6), for the unpaid tax:
(b)
in all other cases, on the date the Commissioner notifies the taxpayer to be the due date for payment of the penalty.
(2)
[Repealed](3)
A shortfall penalty that is an electronic sales suppression penalty under section 141EE is due and payable on the relevant date set out in subsection (1)(a), treating the electronic sales suppression penalty as if it were an amount of unpaid tax.
Section 142B: inserted, on 26 July 1996, by section 43 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 142B(1)(a)(ii): replaced (with effect on 5 February 2017), on 21 February 2017, by section 124 of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
Section 142B(1)(a)(iii): inserted (with effect on 5 February 2017), on 21 February 2017, by section 124 of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
Section 142B(2): repealed, on 1 April 2023, by section 200 of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 142B(3): inserted, on 30 March 2022, by section 218 of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
142C Due date for payments by officers
The due date for payment of an amount payable by an officer under section 141F is the due date for payment of the shortfall penalty by the taxpayer.
Section 142C: inserted, on 26 July 1996, by section 43 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
142D Due date for repayment of excess refund or credit of tax
(1)
Where the Commissioner is satisfied that a credit of tax (excess tax credit) allowed or credited under a tax law is in excess of the amount properly allowable or able to be credited under that tax law and the excess tax credit has been paid as a refund, the amount of the excess shall be repayable and due on the later of—
(a)
the day specified by the Commissioner in the notice to the person requiring payment of the refund to the Commissioner; and
(b)
30 days after the date of that notice.
(2)
If—
(a)
the Commissioner refunds too much tax to a taxpayer or credits a taxpayer with the payment of too much tax; and
(b)
a tax law provides for that tax to be repayable to the Commissioner on a set date or on a date to be specified by the Commissioner; and
(c)
the Commissioner considers that applying that tax law may prejudice the Commissioner’s ability to recover that tax,—
tax is repayable to the Commissioner on the date specified by the Commissioner in a notice to the taxpayer given under this section.
Section 142D: inserted, on 26 July 1996, by section 43 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
142E Due dates for payment of imputation penalty tax
(1)
Imputation penalty tax is due and payable on 20 June following the end of the tax year in which occurred the end of year debit balance giving rise to the liability for the further income tax and the imputation penalty tax.
(2)
[Repealed](3)
[Repealed]Section 142E: inserted, on 26 July 1996, by section 43 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 142E heading: replaced (with effect on 30 June 2009), on 6 October 2009 (applying for all income years beginning on or after 1 July 2009), by section 686(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 142E(1): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 142E(2): repealed (with effect on 30 June 2009), on 6 October 2009 (applying for all income years beginning on or after 1 July 2009), by section 686(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 142E(3): repealed, on 23 September 1997 (applying to the 1998–99 and subsequent income years), by section 98 of the Taxation (Remedial Provisions) Act 1997 (1997 No 74).
142F Due date for payment of deferrable tax
Deferrable tax is due and payable on the day which is the 30th day after the last day of the relevant period of deferral.
Section 142F: inserted, on 26 July 1996, by section 43 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
142G Due date for payment of non-electronic filing penalties
A non-electronic filing penalty under section 139AA is due and payable,—
(a)
for employment income information, 30 days after the end of the month in which the employer is required to provide to the Commissioner the information in the prescribed electronic form or by means of the prescribed electronic communication:
(b)
for GST purposes, 30 days after the end of the month in which the registered person is required to provide to the Commissioner the GST information in the prescribed electronic form or by means of the prescribed electronic communication:
(c)
for investment income information, 30 days after the end of the month in which the payer of investment income is required to provide to the Commissioner the information in the prescribed electronic form or by means of the prescribed electronic communication.
Section 142G: replaced, on 1 April 2019, by section 360(2) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
Section 142G(c): inserted, on 1 April 2020, by section 360(3) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
142GB Due date for payment of penalty by member of large multinational group
The due date for payment, by a member of a large multinational group, of a penalty under section 139AB is the date that the Commissioner specifies in the notice of assessment for the penalty, which must be 30 days or more after the date on which the notice of assessment is issued.
Section 142GB: inserted, on 1 July 2018, by section 60 of the Taxation (Neutralising Base Erosion and Profit Shifting) Act 2018 (2018 No 16).
142H Failures of financial institutions to meet requirements under Part 11B and CRS applied standard
(1)
If a financial institution fails to meet a requirement under Part 11B and the CRS applied standard for financial accounts maintained by the financial institution, other than a requirement referred to in subsection (3), the financial institution is liable to pay a penalty of $300 for each failure to which subsection (2) does not apply and for which no penalty under subsection (5) is imposed.
(2)
A financial institution is not liable to pay a penalty under subsection (1) for a failure that—
(a)
the financial institution proves is due to circumstances outside the control of the financial institution:
(b)
occurs before 1 July 2019, if the Commissioner is satisfied that the financial institution makes reasonable efforts to meet the requirement and reasonable efforts to correct the failure within a reasonable period of time after the financial institution becomes aware of the failure.
(3)
If a financial institution fails to meet a requirement under Part 11B and the CRS applied standard to obtain self-certifications when opening a financial account, the financial institution is liable to pay a penalty of $300 for each account if subsection (4) does not apply to the failure and no penalty under subsection (5) is imposed for the failure.
(4)
A financial institution is not liable to pay a penalty under subsection (3) for a failure that occurs before 1 July 2019 for an account if the Commissioner is satisfied that the financial institution makes reasonable efforts to meet the requirement and makes reasonable efforts to correct the failure for the account within a reasonable period of time after the financial institution becomes aware of the failure.
(5)
If a financial institution fails to take reasonable care to meet a requirement of a financial institution under Part 11B and the CRS applied standard for financial accounts, and no penalty under subsections (1) and (3) is imposed for the failure, the financial institution is liable to pay a penalty of—
(a)
$20,000 for the first failure:
(b)
$40,000 for each further failure.
(6)
The total amount of penalties for a reporting period for which a financial institution is liable must not exceed—
(a)
$10,000, for penalties under subsections (1) and (3):
(b)
$100,000, for penalties under subsection (5).
(7)
The due date for payment of a penalty imposed under this section is the later of—
(a)
30 days after the date on which the Commissioner issues the notice of assessment for the penalty:
(b)
the date specified by the Commissioner in the notice of assessment as being the due date for payment of the penalty.
Section 142H: inserted, on 1 July 2017, by section 17 of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
142I Failures to meet requirements under Part 11B to provide information, including self-certifications
(1)
This section applies to a person or entity (the information provider) required under Part 11B to provide information, including a self-certification, relating to a person or entity for a financial account.
(2)
The information provider is liable to pay a penalty of $1,000 if the information provider—
(a)
provides false information, other than a self-certification, relating to the information provider:
(b)
signs or otherwise affirms a false self-certification for the information provider:
(c)
provides false information, other than a self-certification, relating to another person or entity:
(d)
provides a false self-certification for another person or entity:
(e)
fails to provide information, other than a self-certification, relating to the information provider within a reasonable time after receiving a request for which the information is required to be provided:
(f)
fails to sign, or otherwise affirm, and provide a self-certification relating to the information provider within a reasonable time after receiving a request for which the self-certification is required to be provided:
(g)
fails to provide information, other than a self-certification, relating to another person or entity within a reasonable time after receiving a request for which the information is required to be provided:
(h)
fails to provide a self-certification relating to another person or entity within a reasonable time after receiving a request obliging the self-certification to be provided:
(i)
after providing a person or entity with a self-certification or other information, fails to inform the person or entity of a material change in the circumstances relating to the self-certification or information within a reasonable time after the information provider becomes aware of the change.
(3)
An information provider is not liable to pay a penalty under subsection (2) for a failure to provide information, including a self-certification, within the control of the information provider, if the Commissioner is satisfied that the failure occurred through no fault of the information provider.
(4)
An information provider is not liable to pay a penalty under subsection (2) for a failure to provide information, including a self-certification, relating to another person or entity and not within the control of the information provider, if the Commissioner is satisfied that the information provider makes reasonable efforts to meet the requirement.
(5)
The due date for payment of a penalty imposed under this section is the later of—
(a)
30 days after the date on which the Commissioner issues the notice of assessment for the penalty:
(b)
the date specified by the Commissioner in the notice of assessment as being the due date for payment of the penalty.
Section 142I: inserted, on 1 July 2017, by section 17 of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
142J When reporting requirements for operators under model rules for digital platforms not met
(1)
This section applies when a reporting platform operator (the operator), including a resident reporting platform operator,—
(a)
is required under sections 185S and 185T to meet all the requirements set out in, as applicable,—
(i)
the model reporting standard for digital platforms:
(ii)
the extended model reporting standard for digital platforms; and
(b)
does not meet the requirements in relation to sellers operating on the digital platform in cases where the non-compliance is serious or unreasonable.
(2)
The operator is liable to pay a penalty of $300 for each occasion on which the operator does not meet the requirements.
(3)
The operator is not liable to pay a penalty under subsection (2) if the failure to meet the requirements is shown to be due to circumstances outside the control of the operator.
(4)
If the operator does not take reasonable care to meet a requirement, and no penalty is imposed under subsection (2), the operator is liable to pay a penalty of—
(a)
$20,000 for the first occasion:
(b)
$40,000 for each further occasion.
(5)
The total amount of penalties for a reportable period for which an operator is liable must not be more than—
(a)
$10,000 for a penalty under subsection (2):
(b)
$100,000 for a penalty under subsection (4).
(6)
The due date for payment of a penalty imposed under this section is the later of—
(a)
30 days after the date on which the Commissioner makes the assessment for the penalty:
(b)
the date set out by the Commissioner in the notice of assessment as being the due date for payment of the penalty.
Section 142J: inserted, on 1 January 2024, by section 201 of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
142K When reporting requirements for sellers operating on digital platforms not met
(1)
This section applies when a seller operating on a digital platform—
(a)
is required under sections 185S and 185T to provide information to the reporting platform operator; and
(b)
does not meet the requirements.
(2)
The seller is liable to pay a penalty of $1,000 if they—
(a)
provide false or misleading information to the reporting platform operator about either themselves or another person or entity:
(b)
do not provide information to the reporting platform operator about either themselves or another person or entity within a reasonable time after having received a request for the information:
(c)
do not provide information that the reporting platform operator requires them to provide to enable the reporting platform operator to meet its obligations as an operator on the digital platform under—
(i)
the model reporting standard for digital platforms:
(ii)
the extended model reporting standard for digital platforms.
(3)
The due date for payment of a penalty imposed under this section is the later of—
(a)
30 days after the date on which the Commissioner makes the assessment for the penalty:
(b)
the date set out by the Commissioner in the notice of assessment as being the due date for payment of the penalty.
Section 142K: inserted, on 1 January 2024, by section 201 of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 142K(2)(c): amended (with effect on 1 January 2024), on 28 March 2024, by section 156 of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
Criminal penalties
Heading: inserted, on 26 July 1996, by section 43 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
143 Absolute liability offences and strict liability offences
(1)
A person commits an offence against this Act if the person—
(a)
does not keep the documents required to be kept by a tax law; or
(ab)
fails to register with a foreign government agency as required by Part 11B; or
(b)
does not provide information (including tax returns and tax forms) to the Commissioner or any other person when required to do so by a tax law; or
(ba)
does not provide taxable supply information as required by section 19K or 19L of the Goods and Services Tax Act 1985; or
(c)
does not apply for registration as required under section 51 of the Goods and Services Tax Act 1985; or
(d)
claims, under section 20(3) of the Goods and Services Tax Act 1985, more than 1 amount of input tax for a taxable supply to the person, resulting in a total amount of input tax claimed by the person for the taxable supply that exceeds the output tax charged to the person for the taxable supply.
(1B)
No person who is a trustee of a foreign trust may be convicted of an offence against subsection (1)(a) for not keeping documents required to be kept under section 22 if the person proves that—
(a)
the person did not know of the requirements of section 22:
(b)
another trustee has been appointed under section 22(2C) as agent of the trustees for the purposes of section 22 and the Commissioner has been notified of the appointment.
(1C)
No person who is a trustee of a foreign exemption trust may be convicted of an offence against subsection (1)(b) for not disclosing information required to be disclosed under section 59B or 59D if the person proves that the person did not know of the requirements of the section.
(2)
No person may be convicted of an offence against subsection (1)(b) for not providing information (other than tax returns and tax forms) to the Commissioner if the person proves that, as and when the person was required by the Commissioner to provide the information—
(a)
the person did not have the information in the person’s knowledge, possession or control; and
(b)
no non-resident, who under section 17E(1) was controlled directly or indirectly by the person, had the information in the non-resident’s knowledge, possession or control.
(2B)
No person may be convicted of an offence against subsection (1)(ab) if the relevant failure to register occurred through no fault of the person.
(2C)
No person may be convicted of an offence against subsection (1) if the requirement with which the person fails to comply is a requirement under the CRS applied standard and Part 11B.
(2D)
No person may be convicted of an offence against subsection (1)(d) if the person proves that the person, either or both,—
(a)
took reasonable care when claiming the amounts of input tax:
(b)
corrected, under section 113A of the Tax Administration Act 1994, the amount claimed for input tax.
(2E)
No person may be convicted of an offence against subsection (1) if the requirement with which the person does not comply is a requirement under—
(a)
the model reporting standard for digital platforms:
(b)
the extended model reporting standard for digital platforms.
(3)
A person who is convicted of an offence against subsection (1) is liable—
(a)
the first time the person is convicted in relation to a particular type of offence, to a fine not exceeding $4,000:
(b)
the second time the person is convicted of the same type of offence, to a fine not exceeding $8,000:
(c)
on every other occasion the person is convicted of the same type of offence, to a fine not exceeding $12,000.
(4)
In this section and in sections 143A and 143B, tax return includes an individual’s final account under Part 3, subpart 3B.
Section 143: replaced, on 26 July 1996, by section 43 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
Section 143 heading: amended, on 30 March 2022, by section 219(1) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section 143(1)(a): amended, on 29 August 2011, by section 182(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section 143(1)(ab): inserted, on 1 July 2014, by section 174(1) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).
Section 143(1)(ba): inserted, on 10 October 2000 (applying on and after 10 October 2000), by section 75(1) of the Taxation (GST and Miscellaneous Provisions) Act 2000 (2000 No 39).
Section 143(1)(ba): amended, on 1 April 2023, by section 219(2)(a) (and see section 219(7) for application) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section 143(1)(ba): amended, on 1 April 2023, by section 219(2)(b) (and see section 219(7) for application) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section 143(1)(c): amended, on 30 March 2022, by section 219(3) (and see section 219(6) for application) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section 143(1)(d): inserted, on 30 March 2022, by section 219(4) (and see section 219(6) for application) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section 143(1B): inserted, on 1 October 2006, by section 254 of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).
Section 143(1B): amended, on 1 April 2023, by section 202(1)(a) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 143(1B): amended, on 29 August 2011, by section 182(2) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section 143(1B)(b): amended, on 1 April 2023, by section 202(1)(b) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 143(1C): replaced, on 1 April 2023, by section 202(2) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 143(2): replaced, on 25 November 2003, by section 133 of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).
Section 143(2)(b): amended, on 18 March 2019, by section 113 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 143(2B): inserted, on 1 July 2014, by section 174(2) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).
Section 143(2C): inserted, on 1 July 2017, by section 18 of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
Section 143(2D): inserted, on 30 March 2022, by section 219(5) (and see section 219(6) for application) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section 143(2E): inserted, on 1 January 2024, by section 202(3) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
Section 143(4): inserted, on 7 October 1998 (applying on and after 1 April 1999), by section 36(1) of the Taxation (Simplification and Other Remedial Matters) Act 1998 (1998 No 101).
Section 143(4): amended, on 1 April 2019, by section 99(1) (and see section 99(2) for application) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
143A Knowledge offences
(1)
A person commits an offence against this Act if the person—
(a)
knowingly does not keep the documents required to be kept by a tax law; or
(ab)
knowingly fails to register with a foreign government agency as required by Part 11B; or
(ac)
knowingly fails to provide information, including a self-certification, to another person when required to do so under Part 11B; or
(b)
knowingly does not provide information (including tax returns and tax forms) to the Commissioner or any other person when required to do so by a tax law; or
(c)
knowingly provides altered, false, incomplete, or misleading information (including tax returns and tax forms) to the Commissioner or any other person in respect of a tax law or a matter or thing relating to a tax law; or
(d)
knowingly applies or permits the application of the amount of a deduction or withholding of tax made or deemed made under a tax law for any purpose other than in payment to the Commissioner; or
(e)
knowingly does not make a deduction or withholding of tax required to be made by a tax law; or