Income Tax Act 2004

  • repealed
  • Income Tax Act 2004: repealed, on 1 April 2008, by section ZA 1(1) of the Income Tax Act 2007 (2007 No 97).

Reprint as at 23 March 2020

Income Tax Act 2004

Public Act
 
2004 No 35
Date of assent
 
7 May 2004
 

Income Tax Act 2004: repealed, on 1 April 2008, by section ZA 1(1) of the Income Tax Act 2007 (2007 No 97).

Note

Changes authorised by subpart 2 of Part 2 of the Legislation Act 2012 have been made in this reprint. See the notes at the end of this reprint for further details.

This Act is administered by the Inland Revenue Department.

Contents

A 1Title
A 2Commencement
Part A
Purpose and interpretation
AA 1Purpose of Act
AA 2Interpretation
AA 3Definitions
Part B
Core Provisions
Subpart BA—Purpose
BA 1Purpose
Subpart BB—Income tax and resulting obligations
BB 1Imposition of income tax
BB 2Main obligations
BB 3Overriding effect of certain matters
Subpart BC—Calculating and satisfying income tax liabilities
BC 1Non-filing and filing taxpayers
BC 2Annual gross income
BC 3Annual total deduction
BC 4Net income and net loss
BC 5Taxable income
BC 6Income tax liability of filing taxpayer
BC 7Income tax liability of person with schedular income
BC 8Surplus rebates
BC 9Satisfaction of income tax liability
BC 10Surplus credits
Subpart BD—Income, deductions, and timing
BD 1Income, exempt income, excluded income, non-residents’ foreign-sourced income, and assessable income
BD 2Deductions
BD 3Allocation of income to particular income years
BD 4Allocation of deductions to particular income years
Subpart BE—Withholding liabilities
BE 1Withholding liabilities
Subpart BF—Other obligations
BF 1Other obligations
Subpart BG—Avoidance
BG 1Tax avoidance
Subpart BH—Double tax agreements
BH 1Double tax agreements
Part C
Income
Subpart CA—General rules
CA 1Amounts that are income
CA 2Amounts that are exempt income or excluded income
Subpart CB—Income from business or trade-like activities
Business generally
CB 1Amounts derived from business
Schemes for profit
CB 2Profit-making undertaking or scheme
Personal property
CB 3Personal property acquired for purpose of disposal
CB 4Business of dealing in personal property
CB 4BDisposal of certain shares by portfolio investment entity or New Zealand Superannuation Fund after declaration of dividend
Land
CB 5ALand partially sold or sold with other land
CB 5Disposal: land acquired for purpose or with intention of disposal
CB 6Disposal: land acquired for purposes of business relating to land
CB 6BDisposal: Land used for landfill, if notice of election
CB 7Disposal within 10 years: land dealing business
CB 8Disposal within 10 years: land development or subdivision business
CB 9Disposal within 10 years of improvement: building business
CB 10Disposal: schemes for development or division begun within 10 years
CB 11Disposal: amount from major development or division and not already in income
CB 12Disposal: amount from land affected by change and not already in income
CB 13Transactions between associated persons
Exclusions for residential land
CB 14Residential exclusion from sections CB 5 to CB 9
CB 15Residential exclusion from sections CB 10 and CB 11
CB 16Residential exclusion from section CB 12
Exclusions for business premises
CB 17Business exclusion from sections CB 5 to CB 9
CB 18Business exclusion from sections CB 10 and CB 11
Exclusions for farm land
CB 19Farm land exclusion from sections CB 10 and CB 11
CB 20Farm land exclusion from section CB 12
Exclusion for investment land
CB 21Investment exclusion from sections CB 10 and CB 11
Timber
CB 22Disposal of timber or right to take timber
CB 23Disposal of land with standing timber
Farming, forestry, or fishing
CB 24Income equalisation schemes
Environmental restoration
CB 24BEnvironmental restoration accounts
Minerals
CB 25Disposal of minerals
Intellectual property
CB 26Sale of patent applications or patent rights
Transfer of business
CB 27Sale of business: transferred employment income obligations
Stolen property
CB 28Property obtained by theft
Emissions trading scheme
CB 29Disposal of ETS units
Subpart CC—Income from holding property (excluding equity)
Land use
CC 1Land
CC 2Non-compliance with covenant for repair
Financial instruments
CC 3Financial arrangements
CC 4Payments of interest
CC 5Annuities
CC 6Prizes received under Building Societies Act 1965
CC 7Consideration other than in money
CC 8Use of money interest payable by Commissioner
CC 8BCertain commercial bills: non-resident holders
Royalties
CC 9Royalties
CC 10Films
Subpart CD—Income from equity
Income
CD 1Dividend
CD 1BDistribution excluded from being dividend
What is a dividend?
CD 2Meaning of dividend
CD 3Transfers of value generally
CD 4What is a transfer of value?
CD 5When is a transfer caused by a shareholding relationship?
CD 6Bonus issues in lieu of dividend
CD 7Elections to make bonus issue into dividend
CD 7BInterests in money or property of foreign unit trust
CD 7CBonus issue by foreign unit trust instead of money or property
CD 8Notional distributions of producer boards and co-operative companies
CD 9Tax credits linked to dividends
CD 10Certain dividends not increased by tax credits
CD 10BCredit transfer notice
CD 10CDividend reduced if foreign tax paid on company’s income
CD 11Foreign tax credits and refunds linked to dividends
CD 12Benefits of shareholder-employees or directors
CD 13Attributed repatriations from controlled foreign companies
What is not a dividend?
CD 14Returns of capital: off-market share cancellations
CD 15Ordering rule and slice rule
CD 16Returns of capital: on-market share cancellations
CD 17Treasury stock acquisitions
CD 18Capital distributions on liquidation or emigration
CD 19Property made available intra-group
CD 20Transfers of certain excepted financial arrangements within wholly-owned groups
CD 21Non-taxable bonus issues
CD 21BAIssues to shareholders of rights to subscribe for or sell back shares
CD 21BTransfer by unit trust of legal interest after beneficial interest vests
CD 22Flat-owning companies
CD 23Employee benefits
CD 24Payments corresponding to notional distributions of producer boards and co-operative companies
CD 24BDistribution to member of co-operative company based on member’s transactions
CD 25Qualifying amalgamations
CD 26Foreign investment fund income
Calculation rules
CD 27General calculation rule for transfers of value
CD 28Calculation of amount of dividend when property made available
CD 29Adjustment if dividend recovered by company
CD 30Adjustment if amount repaid later
CD 31Adjustment if additional consideration paid
CD 32Available subscribed capital amount
CD 33Available capital distribution amount
CFC attributed repatriation calculation rules
CD 34When does a person have attributed repatriation from a CFC?
CD 35New Zealand repatriation amount
CD 36New Zealand property amount
CD 37Cost of tangible property
CD 38Cost of associated party equity
CD 39Outstanding balances of financial arrangements
CD 40Property transfers between associated persons
CD 41Unrepatriated income balance
Prevention of double taxation
CD 42Prevention of double taxation of share cancellation dividends
Returning share transfers
CD 43Replacement payments
Subpart CE—Employee or contractor income
Employment income
CE 1Amounts derived in connection with employment
CE 2Value and timing of benefits under share purchase agreements
CE 3Restrictions on disposal of shares under share purchase agreements
CE 4Adjustments to value of benefits under share purchase agreements
Definitions
CE 5Meaning of expenditure on account of an employee
CE 6Meaning of share: when share acquired
CE 7Meaning of share purchase agreement
Attributed income
CE 8Attributed income from personal services
Restrictive covenants and exit inducement payments
CE 9Restrictive covenants
CE 10Exit inducements
Income protection insurance
CE 11Proceeds from claims under policies of income protection insurance
Tax credits
CE 12Tax credits under section LD 1B added to provider’s income
Subpart CF—Income from living allowances, compensation, and government grants
CF 1Benefits, pensions, compensation, and government grants
CF 2Remission of specified suspensory loans
CF 3Optional treatment of withdrawals from foreign superannuation schemes not included in return or assessed before 1 April 2014
CF 4Person deriving pension from foreign superannuation scheme and returning as income before 1 April 2014
Subpart CG—Recoveries
CG 1Amount of depreciation recovery income
CG 2Remitted amounts
CG 3Bad debt repayment
CG 4Recovered expenditure or loss
CG 5Recoveries or receipts by employers from superannuation schemes
CG 6Receipts from insurance, indemnity, or compensation for trading stock
Subpart CH—Adjustments
Matching rules: revenue account property, prepayments, and deferred payments
CH 1Adjustment for closing values of trading stock, livestock, and excepted financial arrangements
CH 2Adjustment for prepayments
CH 3Adjustment for deferred payment of employment income
Change to accounting practice
CH 4Adjustment for change to accounting practice
GST
CH 5Adjustment for GST
Subpart CP—Income from portfolio investment entities
CP 1Portfolio investor allocated income
Subpart CQ—Attributed income from foreign equity
Attributed controlled foreign company income
CQ 1Attributed controlled foreign company income
CQ 2When attributed CFC income arises
CQ 3Calculation of attributed CFC income
Foreign investment fund income
CQ 4Foreign investment fund income
CQ 5When FIF income arises
CQ 6Calculation of FIF income
Subpart CR—Income from life insurance
CR 1Income of life insurer
CR 2Amount of income of life insurer
CR 3Income for general insurance outstanding claims reserve
Subpart CS—Superannuation funds
Withdrawals
CS 1Withdrawals
Exclusions
CS 2Exclusions of withdrawals of various kinds
CS 3Exclusion of withdrawal on grounds of hardship
CS 4Exclusion of withdrawal to settle division of relationship property
CS 5Exclusion of withdrawal paid as annuity or pension
CS 6Exclusion of withdrawal on partial retirement
CS 7Exclusion of withdrawal when member ends employment
CS 8Exclusion of withdrawal when member ends employment: lock-in rule
CS 9Exclusion of withdrawal from defined benefit fund when member ends employment
CS 10When member treated as not ending employment
CS 10BExclusion of permitted withdrawals from KiwiSaver schemes and complying superannuation funds
Transfers to or from superannuation funds and superannuation schemes
CS 11Transfer by superannuation fund to another superannuation fund
CS 12Transfer from superannuation scheme to superannuation fund
CS 13Investment by superannuation fund in another superannuation fund
Treatment of amounts when superannuation fund becomes superannuation scheme or vice versa
CS 14Superannuation fund becomes superannuation scheme
CS 15Superannuation fund becomes foreign superannuation scheme
CS 16Superannuation scheme becomes superannuation fund
Treatment of distributions when superannuation fund wound up
CS 17Superannuation fund wound up
Subpart CT—Income from petroleum mining
CT 1Disposal of exploratory material or petroleum mining asset
CT 2Damage to assets
CT 3Exploratory well used for commercial production
CT 4Partnership interests and disposal of part of asset
CT 5Petroleum mining operations outside New Zealand
Definitions
CT 6Meaning of petroleum miner
CT 6BMeaning of petroleum mining operations
CT 7Meaning of petroleum mining asset
Subpart CU—Income from mineral mining
Introductory provision
CU 1Mining company’s 2 kinds of income
Income from mining
CU 2Mining company that processes or manufactures
CU 3Disposal of assets
CU 4Compensation for lost, destroyed, or damaged assets
CU 5Compensation and scrap payment: income from mining
CU 6Compensation and scrap payment: use to replace or repair asset
CU 7Compensation and scrap payment: not income from mining
CU 8Compensation and scrap payment: more than expenditure
CU 9Previous deduction for income appropriated
CU 10Mining asset used to derive income other than income from mining
CU 11Meaning of asset for sections CU 3 to CU 10
CU 12Application of sections to resident mining operators
CU 13Application of sections to non-resident mining operators
CU 14Recovery of reinvestment profit on disposal of mining shares
CU 15Recovery of reinvestment profit not used for mining purposes
CU 16Recovery of reinvestment profit on repayment of loans
CU 17Repayment by mining company of amount written off
CU 18Amount treated as repayment for purposes of section CU 17: excess
CU 19Amount treated as repayment for purposes of section CU 17: net income
CU 20Mining company or mining holding company liquidated
Definitions
CU 21Meaning of income from mining
CU 22Meaning of mining company
CU 23Meaning of mining development expenditure
CU 24Meaning of mining exploration expenditure
CU 25Meaning of mining operations
CU 26Meaning of mining venture
CU 27Meaning of resident mining operator
CU 28Meaning of specified mineral
CU 29Other definitions
Subpart CV—Income specific to certain entities
CV 1Group companies
CV 2Crown Research Institutes
CV 3Australian wine producer rebate
CV 4Regulations: Australian wine producer rebate
Subpart CW—Exempt income
Income from business or trade-like activities
CW 1Forestry companies established by Crown, Maori owners, and holding companies buying land with standing timber from founders
CW 1BTreaty of Waitangi claim settlements: rights to take timber
CW 2Forestry encouragement agreements
CW 3Forestry companies and Maori investment companies
CW 3BPre-1990 forest land units: emissions trading scheme [Repealed]
Income from holding property (excluding equity)
CW 4Annuities under life insurance policies
CW 5Payments of interest: post-war credits
CW 6Payments of interest: farm mortgages
CW 7Foreign-sourced interest
CW 8Money lent to government of New Zealand
Income from equity
CW 9Dividend derived by company from overseas
CW 10Dividend within New Zealand wholly-owned group
CW 11Dividend of conduit tax relief holding company
CW 11BProceeds of share disposal by qualified foreign equity investor
CW 11CProceeds from share or option acquired under venture investment agreement
Employee or contractor income
CW 12Income of Governor-General
CW 13Expenditure on account, and reimbursement, of employees
CW 13BRelocation payments
CW 13CPayments for overtime meals and certain other allowances
CW 14Allowance for additional transport costs
CW 15Amounts derived during short-term visits
CW 16Amounts derived by visiting entertainers (including sportspersons)
CW 17Amounts derived by visiting crew of pleasure craft
CW 18Amounts derived by overseas experts and trainees in New Zealand by government arrangement
CW 19Income for military or police service in operational area
CW 20Deferred military pay for active service
CW 21Value of board for religious society members
CW 22Jurors’ and witnesses’ fees
Certain income of transitional resident
CW 22BCertain income derived by transitional resident
Income from living allowances, compensation, and government grants
CW 23Pensions
CW 23BReinvested amount from foreign superannuation scheme in Australia
CW 24Annuities from Crown Bank Accounts
CW 25Services for members of Parliament
CW 26Maintenance payments
CW 27Allowances and benefits
CW 28Compensation payments
CW 28BPayment of certain accident compensation payments
CW 29Scholarships and bursaries
CW 30Film production grants
Income of certain entities
CW 31Public authorities
CW 32Local authorities
CW 33Local and regional promotion bodies
CW 34Charities: non-business income
CW 35Charities: business income
CW 36Charitable bequests
CW 37Friendly societies
CW 38Funeral trusts
CW 39Bodies promoting amateur games and sports
CW 40TAB and racing clubs
CW 40BIncome from conducting gaming-machine gambling
CW 41Bodies promoting scientific or industrial research
CW 42Veterinary services bodies
CW 43Herd improvement bodies
CW 44Community trusts
Income from certain activities
CW 45Non-resident aircraft operators
CW 45BNon-resident company involved in exploration and development activities
CW 46Disposal of companies’ own shares
CW 47New Zealand companies operating in Niue
CW 48Stake money
CW 49Providing standard-cost household service
CW 49BInterest paid under KiwiSaver Act 2006
Income of, and distributions by, certain international funds
CW 49CIncome of certain international funds
CW 49DDistributions by certain international funds
Income exempt under other Acts
CW 50Exemption under other Acts
Income exempt under Parts F to I
CW 51Exemption under Parts to be rewritten
Subpart CX—Excluded income
Goods and services tax
CX 1GST
KiwiSaver and complying superannuation fund tax credits
CX 1BKiwiSaver and complying superannuation fund tax credits
Fringe benefits
Introductory provisions
CX 2Meaning of fringe benefit
CX 3Excluded income
CX 4Relationship with assessable income
CX 5Relationship with exempt income
Fringe benefits
CX 6Private use of motor vehicle
CX 6BEmployer or associated person treated as having right to use vehicle under arrangement
CX 7Private use of motor vehicle: use by more than 1 employee
CX 8Subsidised transport
CX 9Employment-related loans
CX 10Employment-related loans: loans by life insurers
CX 11Services for members of Parliament
CX 12Contributions to superannuation schemes
CX 13Contributions to sickness, accident, or death benefit funds
CX 14Contributions to funeral trusts
CX 15Contributions to life or health insurance
CX 16Benefits provided to employees who are shareholders or investors
Exclusions and limitations
CX 17Benefits provided instead of allowances
CX 17BTransport in vehicle other than motor vehicle
CX 18Benefits to enable performance of duties
CX 18BBusiness tools
CX 19Benefits to non-executive directors
CX 20Benefits provided on premises
CX 20BBenefits related to health or safety
CX 21Benefits provided by charitable organisations
CX 22Non-liable payments
CX 23Assistance with tax returns
CX 24Accommodation
CX 25Entertainment
CX 26Distinctive work clothing
CX 26BContributions to income protection insurance
CX 27Services provided to superannuation fund
CX 27BGoods provided at discount by third parties
Definitions
CX 28Meaning of emergency call
CX 29Meaning of employee share loan
CX 30Meaning of private use
CX 31Meaning of unclassified benefit
CX 32Meaning of work-related vehicle
Insurance
CX 33Life insurers and fully reinsured persons
CX 34Superannuation fund deriving amount from life insurance policy
CX 35Resident insurance underwriters
Petroleum mining
CX 36Disposal of ownership interests in controlled petroleum mining entities
CX 37Farm-out arrangements for petroleum mining
Mineral mining
CX 38Disposal of mining shares
CX 39Disposal of mining shares acquired with reinvestment profit
CX 40Repayment of loans made from reinvestment profit
Government grants
CX 41Government grants to businesses
CX 41BAmounts remitted as condition of new start grant
Contributions to superannuation scheme or retirement savings scheme
CX 42Employer’s superannuation contributions
CX 42BContributions to retirement savings scheme
Farming, forestry, or fishing
CX 43Income equalisation schemes
Environmental restoration
CX 43BRefund from environmental restoration account
Inflation-indexed instruments
CX 44Credits for inflation-indexed instruments
Share-lending arrangements
CX 44BShare-lending collateral under share-lending arrangements
Portfolio investment entities
CX 44CProceeds from disposal of certain shares by portfolio investment entities or New Zealand Superannuation Fund
CX 44DPortfolio investor allocated income and distributions of income by portfolio investment entities
CX 44ERebates of certain fees by portfolio tax rate entities
Emissions units under Climate Change Response Act 2002
CX 44FIssue of post-1989 forest land units
CX 44GDisposal of pre-1990 forest land units
Income excluded under Parts F to I
CX 45Exclusion under Parts to be rewritten
Subpart CY—Income under Parts F to I
CY 1Amounts that are income under Parts to be rewritten
Subpart CZ—Terminating provisions
CZ 1Share purchase agreement income before 19 July 1968
CZ 2Mining company’s 1970-71 tax year
CZ 3Exchange variations on 8 August 1975
CZ 4Mineral mining: company making loan before 1 April 1979
CZ 5Exempt interest: overseas money lent to government or local or public authority before 29 July 1983
CZ 6Commercial bills before 31 July 1986
CZ 7Primary producer co-operative companies: 1987-88 income year
CZ 8Farm-out arrangements for petroleum mining before 16 December 1991
CZ 9Available capital distribution amount: 1965 and 1985 to 1992
CZ 10Transitional relief for calculation of attributed repatriation dividends: 2 July 1992
CZ 11Recovery of deductions for software acquired before 1 April 1993
CZ 12General insurance with risk period straddling1 July 1993
CZ 13Treatment of units and interests in unit trusts and group investment funds on issue as at 1 April 1996
CZ 14Treatment of superannuation fund interests in group investment funds on 1 April 1999
CZ 15Accident insurance contracts before 1 July 2000
CZ 16Interest payable to exiting company: 2001
CZ 17Dividend of exiting company: 2001
CZ 18Benefit provider approved within 6 months of 25 November 2003
CZ 19Community trust receipts in 2004-05 or 2005-06 tax year
CZ 20Geothermal wells between 31 March 2003 and 17 May 2006
Part D
Deductions
Subpart DA—General rules
DA 1General Permission
DA 2General limitations
DA 3Effect of specific rules on general rules
DA 4Treatment of amount of depreciation loss
Subpart DB—Specific rules for expenditure types
Taxes and other amounts
DB 1Taxes, other than GST, and penalties
DB 2GST
DB 3Determining tax liabilities
DB 3BUse of money interest
DB 4Chatham Islands dues
Financing costs
DB 5Transaction costs: borrowing money for use as capital
DB 6Interest: not capital expenditure
DB 7Interest: most companies need no nexus with income
DB 8Interest: money borrowed to acquire shares in group companies
DB 8BInterest or expenditure connected to stapled debt security
Financial arrangements adjustments
DB 9Negative base price adjustment
DB 9BBase price adjustment under old financial arrangements rules
DB 10Repayment of debt sold at discount to associate of debtor
DB 11Security payment
DB 12Sureties
Share-lending arrangements
DB 12BShare-lending collateral under share-lending arrangements
DB 12CReplacement payments and imputation credits under share-lending arrangements
Premises or land costs
DB 13Transaction costs: leases
DB 13BExpenses of failed or withdrawn application for resource consent
DB 14Destruction of temporary building
DB 15Amounts paid for non-compliance with covenant for repair
DB 16Amounts paid for non-compliance and change in use
Revenue account property
DB 17Cost of revenue account property
DB 18Share losses
DB 19Amount from profit-making undertaking or scheme and not already in income
DB 20Amount from major development or division and not already in income
DB 21Amount from land affected by change and not already in income
DB 22Cost of non-specified mineral
Bad debts
DB 23Bad debts
DB 24Bad debts owed to estates
Research and development
DB 25Scientific research
DB 26Research or development
DB 27Some definitions
DB 28Patent expenses
DB 28BExpenses of failed or withdrawn patent application
DB 29Patent rights: devising patented inventions
DB 30Patent rights acquired before 1 April 1993
DB 31Patent applications or patent rights acquired on or after 1 April 1993
Unsuccessful software development
DB 31BExpenditure in unsuccessful development of software
Marketing
DB 32Gifts of money by company
Theft and bribery
DB 33Property misappropriated by employees or service providers
DB 34Making good loss from misappropriation by partners
DB 35Restitution of stolen property
DB 36Bribes paid to public officials
Pollution control
DB 37Avoiding, remedying, or mitigating effects of discharge of contaminant
Repayments
DB 38Payments for remitted amounts
DB 39Restrictive covenant breached
Matching rules: revenue account property, prepayments, and deferred payments
DB 40Adjustment for opening values of trading stock, livestock, and excepted financial arrangements
DB 41Adjustment for prepayments
DB 42Adjustment for deferred payment of employment income
Change to accounting practice
DB 43Adjustment for change to accounting practice
Portfolio investment entities
DB 43BCertain investors have deduction for portfolio investor allocated loss
DB 43CCertain fees charged by portfolio tax rate entities to investors not allowed as deductions
Exempt income
DB 44Expenditure incurred in deriving exempt dividend
Use of motor vehicle under certain arrangements
DB 45Expenditure incurred in operating motor vehicle under agreement or arrangement affected by section CX 6B
Emissions trading scheme
DB 46Acquisition of ETS units
DB 46BLiabilities for emissions
DB 47Surrender of pre-1990 forest land units for post-1989 forest land deforestation
Subpart DC—Employee or contractor expenditure
DC 1Lump sum payments on retirement
DC 2Pension payments to former employees
DC 3Pension payments to former partners
DC 4Payments to working partners
DC 5Contributions to employees’ benefit funds
DC 6Contributions to employees’ superannuation schemes
DC 7Attribution of personal services
DC 8Restrictive covenants or exit inducements
DC 9Sale of business: transferred employment income obligations
DC 10Transfers of employment income obligations to associates
DC 11Loans to employees under share purchase schemes
DC 12Criteria for approval of share purchase schemes: before period of restriction ends
DC 13Criteria for approval of share purchase schemes: when period of restriction ends
DC 14Some definitions
Subpart DD—Entertainment expenditure
DD 1Entertainment expenditure generally
DD 2Limitation rule
DD 3When limitation rule does not apply
DD 4Employment-related activities
DD 5Promoting businesses, goods, or services
DD 6Entertainment as business or for charitable purpose
DD 7Entertainment outside New Zealand
DD 8Entertainment that is income or fringe benefit
DD 9Relationship with FBT rules
DD 10Interpretation: reimbursement and apportionment
DD 11Some definitions
Subpart DE—Motor vehicle expenditure
Introductory provisions
DE 1What this subpart does
DE 2Deductions for business use
DE 3Methods for calculating proportion of business use
DE 4Default method for calculating proportion of business use
Actual records
DE 5Actual records
Logbook
DE 6Using logbook for test period
DE 7Logbook requirements
DE 8Logbook term
DE 9Inadequate logbook
DE 10Variance during logbook term
DE 11Replacement vehicles
Mileage rates
DE 12Mileage rate method
Subpart DF—Government grants and compensation
DF 1Government grants to businesses
DF 2Repayment of grant-related suspensory loans
DF 3Identifying expenditure for purposes of sections DF 1 and DF 2
DF 4Payment by claimant receiving personal service rehabilitation payment
Subpart DN—Attributed losses from foreign equity
Attributed controlled foreign company loss
DN 1Attributed controlled foreign company loss
DN 2When attributed CFC loss arises
DN 3Calculation of attributed CFC loss
DN 4Ring-fencing cap on deduction
Foreign investment fund loss
DN 5Foreign investment fund loss
DN 6When FIF loss arises
DN 7Calculation of FIF loss
DN 8Ring-fencing cap on deduction: not branch equivalent method [Repealed]
DN 9Ring-fencing cap on deduction: branch equivalent method
Subpart DO—Farming and aquacultural business expenditure
Farming
DO 1Enhancements to land, except trees
DO 2Erosion and shelter plantings
DO 3Trees on farms
DO 4Improvements to farm land
DO 4BExpenditure on land: planting of listed horticultural plants
DO 4CExpenditure on land: horticultural replacement planting
DO 4DAccounting for expenditure on listed horticultural plants under sections DO 4B and DO 4C
DO 4ESome definitions
DO 5Farming or horticulture expenditure of lessor or sublessor
DO 5BImprovement destroyed or made useless
Aquaculture
DO 6Improvements to aquacultural business
DO 7Improvement destroyed or made useless
Subpart DP—Forestry expenditure
DP 1Expenditure of forestry business
DP 2Plant or machinery
DP 3Improvements to forestry land
DP 3BImprovement destroyed or made useless
DP 4Forestry encouragement agreement: deductions
DP 5Forestry encouragement agreement: no deduction
DP 6Land contouring: no deduction
DP 7Forestry business on land bought from Crown, Maori owners, or holding company: no deduction
DP 8Cost of acquiring timber: forestry business on land bought from Crown, Maori owners, or holding company
DP 8BTreaty of Waitangi claim settlements: rights to take timber
DP 9Cost of acquiring timber or right to take timber: other cases
DP 10Cost of timber
Subpart DQ—Income equalisation schemes and environmental restoration accounts scheme
DQ 1Main income equalisation scheme
DQ 2Adverse event income equalisation scheme
DQ 3Thinning operations income equalisation scheme
DQ 4Environmental restoration accounts scheme
Subpart DR—Life insurance business expenditure
DR 1Mortality profit formula: negative result
DR 2Disposal of property
DR 3Specific deductions denied to life insurers and fully reinsured persons
Subpart DS—Film industry expenditure
DS 1Acquiring film rights
DS 2Film production expenditure
DS 2BExpenditure in acquiring film, or film right, intended for disposal
DS 3Clawback of deductions for film reimbursement schemes
DS 4Meaning of film reimbursement scheme
Subpart DT—Petroleum mining expenditure
Petroleum exploration expenditure
DT 1ARing-fenced allocations
DT 1Petroleum exploration expenditure
DT 2Arrangement for petroleum exploration expenditure and sale of property
DT 3Acquisition of licences and permits
DT 4Acquisition of exploratory material
Petroleum development expenditure
DT 5Petroleum development expenditure
DT 6Expenditure on petroleum mining assets
DT 7Exploratory well expenditure
DT 8Acquisition of certain petroleum mining assets
DT 9Disposal of petroleum mining asset to associate
DT 10Disposal of petroleum mining asset outside association
DT 11Association ending
Other expenditure
DT 12Damage to assets
DT 13Disposal of ownership interests in controlled petroleum mining entities
DT 14Farm-out arrangements
DT 15Persons associated with petroleum miner
DT 16Removal or restoration operations
General provisions
DT 17Attribution of expenditure
DT 18Replacement permits
DT 19Partnership interests and disposal of part of asset
DT 20Petroleum mining operations outside New Zealand
Subpart DU—Mineral mining expenditure
DU 1Mining exploration expenditure and mining development expenditure
DU 2Mining exploration expenditure or mining development expenditure on acquisition of asset
DU 3Replacing or repairing asset
DU 4Income appropriated to expenditure
DU 5Non-mining asset used to derive income from mining
DU 6Depreciation
DU 7Limit on deduction
DU 8Meaning of asset for sections DU 1 to DU 7
DU 9Application of sections to resident mining operators
DU 10Application of sections to non-resident mining operators
DU 11Disposal of mining shares by company
DU 12Amount written off by holding company
Subpart DV—Expenditure specific to certain entities
Superannuation funds
DV 1Publicising superannuation funds
DV 2Transfer of expenditure to master fund
DV 3Formula for calculating maximum deduction
DV 4Carry forward of expenditure
Other entities
DV 5Investment funds: transfer of expenditure to master funds
DV 6Formula for calculating maximum deduction
DV 7Carry forward of expenditure
DV 8Non-profit organisations
DV 9Trusts
DV 10Building societies
DV 10BDistribution to member of co-operative company, excluded from being dividend
DV 10CCost base for shares when debt forgiven within economic group
DV 11Maori authorities: donations
DV 12Group companies
DV 13Amalgamated company: expenditure on improvements for farming, horticultural, aquacultural, and forestry businesses
Subpart DW—Expenditure specific to certain industries
DW 1Airport operators
DW 2Bloodstock racing
DW 3Deduction for general insurance outstanding claims reserve
Subpart DX—Other expenditure
DX 1Testamentary annuities
Subpart DY—Deductions under Parts F to I
DY 1Amounts that are deductions under Parts to be rewritten
DY 2Amounts that are not deductions under Parts to be rewritten
Subpart DZ—Terminating provisions
DZ 1Commercial bills before 31 July 1986
DZ 2Life insurers acquiring property before 1 April 1988
DZ 3Petroleum mining: development expenditure from 1 October 1990 to 15 December 1991
DZ 4Expenditure on abandoned exploratory well before 16 December 1991
DZ 5Farm-out arrangements for petroleum mining before 16 December 1991
DZ 6Partnership interests and disposal of part of asset before 16 December 1991
DZ 7Petroleum mining operations outside New Zealand before 16 December 1991
DZ 8Buying patent rights before 1 April 1993
DZ 9Premium paid on land leased before 1 April 1993
DZ 10General insurance with risk period straddling 1 July 1993
DZ 11Film reimbursement scheme on or before 30 June 2001
DZ 12Mineral mining: 1954 to 2005
DZ 13Enhancements to land unamortised at end of 2004-05 year
DZ 14Patent applications before 1 April 2005
DZ 15Geothermal wells between 31 March 2003 and 17 May 2006
DZ 16Expenditure on improvements to aquacultural business before 1995-96 income year
DZ 17Expenditure on improvements to forestry land before 1995-96 income year
Part E
Timing and quantifying rules
Subpart EA—Matching rules: revenue account property, prepayments, and deferred payments
EA 1Trading stock, livestock, and excepted financial arrangements
EA 2Other revenue account property
EA 3Prepayments
EA 4Deferred payment of employment income
Subpart EB—Valuation of trading stock (including dealer’s livestock)
Introductory provisions
EB 1When this subpart applies
EB 2Meaning of trading stock
EB 3Valuation of trading stock
EB 4Trading stock valuation methods
EB 5Transfers of trading stock within wholly-owned groups
Standard valuation
EB 6Cost
EB 7Cost allocation: cost-flow method
EB 8Cost allocation: budgeted method or standard cost method
EB 9Discounted selling price
EB 10Replacement price
EB 11Market selling value
EB 12Valuing closing stock consistently
Low-turnover valuation
EB 13Low-turnover valuation
EB 14Low-turnover valuation methods
EB 15Cost for low-turnover traders
EB 16Cost allocation: cost-flow method for low-turnover traders
EB 17Costs: manufactured or produced stock of low-turnover traders
EB 18Costs: other stock of low-turnover traders
EB 19Discounted selling price for low-turnover traders
EB 20Replacement price for low-turnover traders
EB 21Market selling value for low-turnover traders
EB 22Valuing closing stock consistently for low-turnover traders
Low value trading stock
EB 23Valuing closing stock under $5,000
Subpart EC—Valuation of livestock
Introductory provisions
EC 1Application of this subpart
EC 2Valuation of livestock
EC 3Livestock valuation methods
EC 4Value of livestock on death of person [Repealed]
EC 5Transfers of livestock within wholly-owned groups
EC 5BTransfer of livestock because of self-assessed adverse event
Valuation of specified livestock
EC 6Application of sections EC 7 to EC 27
EC 7Valuation methods
EC 8Restrictions on use of herd scheme
EC 9Restrictions on use of national standard cost scheme
EC 10Restrictions on use of cost price method
EC 11Restrictions on making of elections
EC 12Interests in livestock
EC 13Changes in partnership interests
Herd scheme
EC 14Herd scheme
EC 15Determining national average market values
EC 16Valuation under herd scheme
EC 17Herd value ratio
EC 18Inaccurate herd value ratio
EC 19Chatham Islands adjustment to herd value
EC 20Herd livestock disposed of before values determined
EC 21Herd livestock on death before values determined
National standard cost scheme
EC 22National standard cost scheme
EC 23Determining national standard costs
EC 24Methods for determining costs using national standard cost scheme
Other methods
EC 25Cost price, replacement price, or market value
EC 26Bailee’s treatment of livestock
Definitions
EC 27Some definitions
Valuation of non-specified livestock
EC 28Application of sections EC 29 to EC 31
EC 29Determining standard values
EC 30Closing value methods
EC 31Enhanced production
Valuation of high-priced livestock
EC 32Application of sections EC 33 to EC 37
EC 33Determining depreciation percentages
EC 34General rule
EC 35Livestock reaching national average market value and livestock no longer used for breeding
EC 36Immature livestock and recently bought livestock
EC 37Bailment
Valuation of bloodstock
EC 38Application of sections EC 39 to EC 48
EC 39First income year in breeding business
EC 40Later income years in breeding business
EC 41Reduction: bloodstock not previously used for breeding in New Zealand other than as shuttle stallions
EC 42Reduction: bloodstock previously used for breeding in New Zealand
EC 43Accident, birth deformity, or infertility
EC 44Other bloodstock
EC 45Residual value of bloodstock
EC 46Use of bloodstock for racing
EC 47Change of use of bloodstock in course of business
EC 48Replacement breeding stock
Subpart ED—Valuation of excepted financial arrangements
ED 1Valuation of excepted financial arrangements
ED 2Transfers of certain excepted financial arrangements within wholly-owned groups
Subpart EE—Depreciation
Introductory provision
EE 1What this subpart does
Meaning of own
EE 2Nature of ownership of item
EE 3Ownership of goods subject to reservation of title
EE 4Ownership of lessee’s improvements: lessee
EE 5Ownership of lessee’s improvements: other person
Meaning of depreciable property
EE 6What is depreciable property?
EE 7What is not depreciable property?
EE 8Election that property not be depreciable
How amounts of depreciation loss and depreciation recovery income are calculated
EE 9Description of elements of calculation
EE 10Calculation rule: item temporarily not available
EE 11Calculation rule: income year in which item disposed of
Methods
EE 12Depreciation methods
Amount of depreciation loss under diminishing value method or straight-line method
EE 13Application of sections EE 14 to EE 19
EE 14Diminishing value or straight-line method: calculating amount of depreciation loss
EE 15Amount of adjusted tax value
EE 16Amount resulting from standard calculation
EE 17Amount resulting from petroleum-related depreciable property calculation
EE 18Cost: change from diminishing value to straight-line method
EE 19Cost: fixed life intangible property
Amount of depreciation loss under pool method
EE 20Application of sections EE 21 to EE 24
EE 21Pool method: calculating amount of depreciation loss
EE 22Cases affecting pool
EE 23Combined pools
EE 24Property ceasing to qualify for pool
EE 24BDepreciation loss for plant variety rights application upon grant of rights in 2005–06 or later income year
Depreciation rates
EE 25Setting of economic depreciation rate
EE 25BEconomic rate for certain depreciable property
EE 25CEconomic rate for buildings
EE 25DEconomic rate for certain aircraft and motor vehicles
EE 25EEconomic rate for plant, equipment, or building, with high residual value
EE 26Annual rate for item acquired in person’s 1995-96 or later income year
EE 26BElection in respect of certain depreciable property acquired on or after 1 April 2005
EE 27Annual rate for fixed life intangible property
EE 27BAnnual rate for patent granted in 2005–06 or later income year
EE 27CAnnual rate for patent applications lodged with complete specifications on or after 1 April 2005 [Repealed]
EE 27DAnnual rate for patents: applications lodged with complete specifications on or after 1 April 2005 [Repealed]
EE 27EAnnual rate for plant variety rights [Repealed]
EE 28Special rate or provisional rate
EE 29Using economic rate or provisional rate instead of special rate
Improvements, items of low value, or items no longer used
EE 30Improvements
EE 31Items of low value
EE 32Items no longer used
Transfers of depreciable property: associated persons and non-qualifying amalgamations
EE 33Transfer of depreciable property on or after 24 September 1997
EE 34Transfer of depreciable property in non-qualifying amalgamation on or after 14 May 2002
EE 35Transfer of radiocommunications licence right on or after 24 September 1997
EE 36Transfer of depreciable intangible property on or after 1 July 1997
Disposals and similar events
EE 37Application of sections EE 41 to EE 44
EE 38Consideration for purposes of section EE 37
EE 39Items for purposes of section EE 37
EE 40Events for purposes of section EE 37
EE 41Effect of disposal or event
EE 42Amount of depreciation recovery income when item partly used for business
EE 43Amount of depreciation recovery income when lost or stolen items recovered
EE 44Amount of depreciation recovery income when compensation received
EE 44BUnused geothermal well brought into use
Interpretation provisions
EE 45Cost: GST
Adjusted tax value
EE 46Meaning of adjusted tax value
EE 47Formula
EE 48Base value in section EE 47 when none of sections EE 49, EE 50, and EZ 21(1) applies
EE 49Base value in section EE 47 when no previous deduction
EE 50Base value in section EE 47 when property is petroleum-related depreciable property
EE 51Total deductions in section EE 47
Definitions
EE 52Meaning of annual rate
EE 53Meaning of depreciable intangible property
EE 54Meaning of estimated useful life
EE 55Meaning of excluded depreciable property
EE 56Meaning of maximum pooling value
EE 57Meaning of poolable property
EE 58Other definitions
Subpart EF—Taxes and levies
EF 1Fringe benefit tax
EF 2Specified superannuation contribution withholding tax
EF 3ACC levies and premiums
EF 4Use of money interest payable by Commissioner
EF 5Use of money interest payable by person
EF 6Different tax years
Subpart EG—Recognition of accounting treatment
EG 1Election to use balance date used in foreign country
EG 2Adjustment for changes to accounting practice
EG 3Allocation of income, deductions, and credits by portfolio tax rate entity
Subpart EH—Income equalisation schemes
Introductory provisions
EH 1Income equalisation schemes
EH 2Income Equalisation Reserve Account
Main income equalisation scheme
Application
EH 3Persons to whom main income equalisation scheme applies
Deposits and accounts
EH 4Main deposit
EH 5Main income equalisation account
Interest
EH 6Interest on deposits in main income equalisation account
Deduction
EH 7Deduction of deposit
Refunds: automatic
EH 8Refund of excess deposit
EH 9Income does not include excess deposit
EH 10Refund at end of 5 years
EH 11Income when refund given at end of 5 years
Refunds: on application
EH 12Application for refund by person, trustee of estate, Official Assignee, or liquidator
EH 13Refund on request
EH 14Income when refund given on request
EH 15Refund for development or recovery
EH 16Income when refund given for development or recovery
EH 17Refund on retirement
EH 18Income when refund given on retirement, and election to allocate amount to earlier year
EH 19Refund on death
EH 20Income when refund given on death
EH 21Income when refund given on death, and election to allocate amount to earlier year
EH 22Income when refund given on death, and election to allocate amount to later year or years
EH 23Refund on bankruptcy
EH 24Income when refund given on bankruptcy
EH 25Refund on liquidation
EH 26Income when refund given on liquidation
Refunds: general provisions
EH 27Amendment of assessment
EH 28Minimum refund
EH 29Deposits from which refunds come
Rebate of income tax
EH 30When person entitled to rebate of income tax
EH 31Kind and amount of refund that entitles person to rebate of income tax
EH 32Kind of person entitled to rebate of income tax
EH 33Amount of rebate of income tax
Definitions
EH 34Meaning of income from forestry
EH 35Meaning of main maximum deposit
EH 36Meaning of self-assessed adverse event [Repealed]
EH 37Other definitions
Adverse event income equalisation scheme
Application
EH 38Persons to whom adverse event income equalisation scheme applies
Deposits and accounts
EH 39Adverse event deposit
EH 40Adverse event income equalisation account
Interest
EH 41Interest on deposits in adverse event income equalisation account
Deduction
EH 42Deduction of deposit
Refunds: automatic
EH 43Refund of excess deposit
EH 44Income does not include excess deposit
Refunds: on application
EH 45Application for refund by person, trustee of estate, Official Assignee, or liquidator
EH 46Refund on request
EH 47Income when refund given on request
EH 48Refund on retirement
EH 49Income when refund given on retirement, and election to allocate amount to earlier year
EH 50Refund on death
EH 51Income when refund given on death
EH 52Income when refund given on death, and election to allocate amount to earlier year
EH 53Income when refund given on death, and election to allocate amount to later year or years
EH 54Refund on bankruptcy
EH 55Income when refund given on bankruptcy
EH 56Refund on liquidation
EH 57Income when refund given on liquidation
Refunds: general provisions
EH 58Amendment of assessment
EH 59Minimum refund
EH 60Deposits from which refunds come
Transfers
EH 61Transfer of deposit
Definitions
EH 62Meaning of adverse event maximum deposit
EH 63Meaning of self-assessed adverse event [Repealed]
EH 64Other definitions
Thinning operations income equalisation scheme
Application
EH 65Persons to whom thinning operations income equalisation scheme applies
Deposits and accounts
EH 66Thinning operations deposit
EH 67Thinning operations income equalisation account
Interest
EH 68Interest on deposits in thinning operations income equalisation account
Deductions
EH 69Deduction of deposit
Refunds: automatic
EH 70Refund of excess deposit
EH 71Income does not include excess deposit
Refunds: on application
EH 72Application for refund by person or liquidator
EH 73Refund on request
EH 74Income when refund given on request
EH 75Refund for development or recovery
EH 76Income when refund given for development or recovery
EH 77Refund on liquidation
EH 78Income when refund given on liquidation
Refunds: general provisions, and rebate of income tax
EH 79Sections of main income equalisation scheme that apply to thinning operations income equalisation scheme
Definitions
EH 80Meaning of thinning operations maximum deposit
EH 81Other definitions
Subpart EI—Spreading of specific income
Farming and forestry
EI 1Spreading backward of income from timber
Inflation-indexed instruments
EI 2Interest from inflation-indexed instruments
Intellectual property
EI 3Assigning or granting copyright
EI 3BSpreading income from patent rights
Land
EI 4Amount paid to lessor for non-compliance with covenant for repair
EI 5Amount paid for non-compliance: when lessor ceases to own land
EI 6Leases: income derived in anticipation
EI 7Disposal of land to Crown
Shareholder-employees
EI 8Matching rule for employment income of shareholderemployee
Subpart EJ—Spreading of specific expenditure
Farming and forestry
EJ 1Spreading backward of deductions for costs of timber
EJ 2Spreading forward of deductions for repairs to fishing boats
EJ 3Spreading forward of fertiliser expenditure
Films
EJ 4Expenditure incurred in acquiring film rights in feature films
EJ 5Expenditure incurred in acquiring film rights in films other than feature films
EJ 6Certification of New Zealand films
EJ 7Film production expenditure for New Zealand films having no large budget screen production grant
EJ 8Film production expenditure for other films having no large budget screen production grant
Leases
EJ 9Personal property lease payments
EJ 10Amount paid by lessee for non-compliance with covenant for repair
Petroleum mining
EJ 11Petroleum development expenditure: default allocation rule
EJ 11BPetroleum development expenditure: reserve depletion method
EJ 12Relinquishing petroleum permit
EJ 12BDry well drilled
EJ 12CWell not producing
EJ 13Disposal of petroleum mining asset
EJ 14Disposal of petroleum mining asset to associate
EJ 15Partnership interests and disposal of part of asset
EJ 16Petroleum mining operations outside New Zealand
Definitions
EJ 17Meaning of offshore development [Repealed]
EJ 18Meaning of petroleum mining development
Superannuation contributions
EJ 19Contributions to employees’ superannuation schemes
Research, development, and resulting market development
EJ 20Deductions for market development—product of research, development
EJ 21Allocation of deductions for research, development, and resulting market development
Subpart EK—Environmental restoration accounts
EK 1Environmental Restoration Funds Account
EK 2Persons who may make payment to environmental restoration account
EK 3Payments to environmental restoration account
EK 4Environmental restoration account
EK 5Details to be provided with payment to environmental restoration account
EK 6Interest on payments to environmental restoration account
EK 7Deduction for payment
EK 8Deduction for transfer
EK 9Refund of payment if excess, lacking details
EK 10Certain refunds not income
EK 11Application for refund
EK 12Refund if request or excess balance
EK 13Income when refund given on request
EK 14Application for transfer
EK 15Transfer on request
EK 16Transfer on death, bankruptcy, or liquidation
EK 17Minimum refund or transfer
EK 18Payments from which refunds come
EK 19Environmental restoration account of amalgamating company
EK 20Environmental restoration account of member of consolidated group
EK 21Commissioner may require notice in electronic format
EK 22Meaning of maximum payment
EK 23Other definitions
Subpart EW—Financial arrangements rules
Introductory provisions
EW 1What this subpart does
EW 2Relationship of financial arrangements rules with other provisions
Meaning of financial arrangement and excepted financial arrangement
EW 3What is a financial arrangement?
EW 4What is not a financial arrangement?
EW 5What is an excepted financial arrangement?
EW 6Relationship between financial arrangements and excepted financial arrangements
EW 7Change from private or domestic purpose
EW 8Election to treat certain excepted financial arrangements as financial arrangements
Application of financial arrangements rules
EW 9Persons to whom financial arrangements rules apply
EW 10Financial arrangements to which financial arrangements rules apply
EW 11What financial arrangements rules do not apply to
Calculation and allocation of income and expenditure over financial arrangement’s term
EW 12When use of spreading method required
EW 13When use of spreading method not required
EW 14What spreading methods do
EW 15What is included when spreading methods used
EW 15BIFRS taxpayer method
EW 15CIFRS method
EW 15DDetermination alternatives to IFRS
EW 15EExpected value method and equity-free fair value method
EW 16Yield to maturity method or alternative
EW 17Straight-line method
EW 18Market valuation method
EW 19Choice among YTM or alternative, SL, and MV spreading methods
EW 20Determination method or alternative
EW 21Financial reporting method
EW 22Default method
EW 23Failure to use method for financial reporting purposes
EW 24Consistency of use of spreading method
EW 25Consistency of use of straight-line method and market valuation method
EW 25BConsistency of use of specific individual methods under IFRS taxpayer method
EW 26Change of spreading method
EW 27Spreading method adjustment formula
Calculation and allocation of income and expenditure when rights and obligations under financial arrangement cease
EW 28How base price adjustment calculated
EW 29When calculation of base price adjustment required
EW 30When calculation of base price adjustment not required
EW 31Base price adjustment formula
Consideration
Consideration when financial arrangement involves property or services
EW 32Consideration for agreement for sale and purchase of property or services, hire purchase agreement, specified lease, or finance lease
EW 33Consideration for hire purchase agreement or finance lease
EW 34Consideration in foreign currency
EW 35Value relevant for non-financial arrangements rule
Consideration treated as paid to person
EW 36Consideration when person exits from rules: accrued entitlement
EW 37Consideration when person enters rules: accrued obligation
EW 38Consideration when disposal for no, or inadequate, consideration
EW 39Consideration treated as paid to person on distribution in kind [Repealed]
EW 40Consideration affected by unfavourable factors
Consideration treated as paid by person
EW 41Consideration when person exits from rules: accrued obligation
EW 42Consideration when person enters rules: accrued entitlement
EW 43Consideration when acquisition for no, or inadequate, consideration
EW 44Consideration treated as paid by person on distribution in kind [Repealed]
EW 45Consideration when debt sold at discount to associate of debtor
EW 46Consideration when debt forgiven for natural love and affection
EW 46BConsideration when debt forgiven within economic group
EW 47Consideration when debtor released from obligation
EW 47BConsideration when debtor released as condition of new start grant
Consideration when legal defeasance has occurred
EW 48Legal defeasance
Consideration when change from fair value method under IFRS method
EW 48BConsideration when change from fair value method under IFRS method
Consideration when anti-avoidance provision applies
EW 49Anti-avoidance provisions
Income and deduction provisions specifically related to financial arrangements
EW 50Income and deduction when debt sold at discount to associate of debtor
EW 51Income when debt forgiven to trustee
EW 52Deduction for security payment
Treatment of original share acquired under financial arrangement
EW 52BShare supplier under share-lending arrangement
One kind of avoidance
EW 53Adjustment required
Application of financial arrangements rules to cash basis persons
EW 54Meaning of cash basis person
EW 55Effect of being cash basis person
EW 56Natural person
EW 57Thresholds
EW 58Financial arrangements, income, and expenditure relevant to criteria
EW 59Exclusion by Commissioner
EW 60Trustee of deceased’s estate
EW 61Election to use spreading method
EW 62When and how calculation of cash basis adjustment required
EW 63Cash basis adjustment formula
Subpart EX—Controlled foreign company and foreign investment fund rules
Controlled foreign company rules
When is a company a controlled foreign company?
EX 1Meaning of CFC
Calculation of person’s control interest
EX 2Four categories for calculating control interests
EX 3Control interest: total of direct, indirect, and associated person interests
EX 4Limits to requirement to include associated person interests
EX 5Direct control interests
EX 6Direct control interests include options and similar rights
EX 7Indirect control interests
Calculation of person’s income interest
EX 8Income interests: total of direct and indirect interests
EX 9Direct income interests
EX 10Indirect income interests
EX 11Options and similar rights in certain cases
EX 12Reduction of total income interests
EX 13Income interests of partners
Ten percent threshold and variations in income interest level
EX 14Attribution: 10% threshold
EX 15Associates and 10% threshold
EX 16Income interests for certain purposes
EX 17Income interest if variations within period
Calculation of attributed CFC income or loss
EX 18Formula for calculating attributed CFC income or loss
EX 19Taxable distribution from non-qualifying trust
EX 20Reduction in attributed CFC loss
Calculation of branch equivalent income or loss
EX 21Branch equivalent income or loss: calculation rules
Grey list exemption
EX 22Unqualified grey list CFCs
EX 23Tax concession grey list CFCs
Residence of companies
EX 24Residence in grey list country
EX 25Companies moving to or from New Zealand
Change of CFC’s balance date
EX 26Change of CFC’s balance date
Ownership measurement concession
EX 27Use of quarterly measurement
Anti-avoidance rule: stapled stock
EX 28Anti-avoidance rule: stapled stock
Foreign investment fund rules
What is a foreign investment fund?
EX 29Meaning of FIF
Attributing interests in FIFs
EX 30Attributing interests in FIFs
EX 31Direct income interests in FIFs
EX 32CFC rules exemption
EX 33Exemptions: direct income interests in FIF in grey list country
EX 33BExemptions limited by income years: shares in certain grey list companies
EX 33CExemption: shares in listed Australian company
EX 33DExemption: units in certain Australian unit trusts
EX 33EAustralian superannuation fund exemption
EX 34Foreign exchange control exemption
EX 35Income interest of non-resident or transitional resident
EX 36New resident’s accrued superannuation entitlement exemption
EX 37Non-resident’s pension or annuity exemption
Calculation of FIF income or loss
EX 38Six calculation methods
EX 39Exclusion of amounts of death benefit
EX 40Limits on choice of calculation methods
EX 40BUse of particular calculation methods required
EX 41Default calculation method
EX 42Accounting profits method
EX 43Branch equivalent method
EX 44Comparative value method
EX 44BFair dividend rate method
EX 44CFair dividend rate method: usual method
EX 44DFair dividend rate method: method for unit valuers and persons valuing interests daily
EX 44EFair dividend rate method and cost method: calculating items in formulas for periods affected by share reorganisations
EX 45Deemed rate of return method
Additional FIF income or loss if CFC owns FIF
EX 45BCost method
EX 46Additional FIF income or loss if CFC owns FIF
Relationship with other provisions in Act
EX 47Codes: comparative value method, deemed rate of return method, fair dividend rate method, and cost method
EX 48Top-up FIF income: deemed rate of return method
EX 49Top-up FIF income: 1 April 1993 uplift interests
Changing calculation method
EX 50Limits on changes of method
EX 51Consequences of changes in method
Cases of entry into and exit from FIF rules
EX 52Migration of persons holding FIF interests
EX 53Changes in application of FIF exemptions
EX 54FIFs migrating from New Zealand
EX 54BFIF rules first applying to interest for income year beginning on or after 1 April 2007
EX 55Death of persons holding FIF interests [Repealed]
Measurement of cost
EX 56Measurement of cost
Change of FIF’s balance date
EX 57Change of FIF’s balance date
Market value rules
EX 58Market value of life policy and superannuation entitlements
EX 59Non-market transactions in FIF interests
Commissioner’s default assessment power
EX 60Commissioner’s default assessment power
Subpart EY—Life insurance rules
EY 1What this subpart does
EY 2Matters to which this subpart relates
EY 3Meaning of actuarial reserves
EY 4Actuarial reserves: calculation
EY 5Actuarial reserves: actuary’s declaration
EY 6Actuarial reserves: powers of Commissioner
EY 7Meaning of claim
EY 8Meaning of life insurance
EY 9Meaning of life insurance policy
EY 10Meaning of life insurer
EY 11Meaning of life reinsurance
EY 12Meaning of life reinsurance policy
EY 13Life insurance and life reinsurance: how sections relate
Premium loading
EY 14How premium loading is calculated
EY 15Premium loading: when life insurers providing life insurance at start of income year
EY 16Premium loading: when life insurers not providing life insurance at start of income year
EY 17Premium loading formulas
EY 18Premium loading formulas: when life insurers not providing life insurance at start of income year
EY 19Premium loading formulas: option when more than 1 life insured
EY 20Premium loading formula (life): when annuity payable on death
EY 21Premium loading formulas: when annuity payable on survival to date or age specified in policy
EY 22Premium loading formula (life): when partial reinsurance exists
EY 23Premium loading formulas: individual result may never be negative
Mortality profit
EY 24How mortality profit is calculated
EY 25Mortality profit: when life insurers providing life insurance at start of income year
EY 26Mortality profit: when life insurers not providing life insurance at start of income year
EY 27Mortality profit formula
EY 28Mortality profit formula: when life insurers not providing life insurance at start of income year
EY 29Mortality profit formula: option when more than 1 life insured
EY 30Mortality profit formula: when annuity payable on death
EY 31Mortality profit formula: when partial reinsurance exists
EY 32Mortality profit formula: individual result may be negative only in some cases
EY 33Mortality profit formula: negative result
Discontinuance profit
EY 34How discontinuance profit is calculated
EY 35Discontinuance profit for income year
EY 36Discontinuance profit formula (existing policies)
EY 37Discontinuance profit formula (new policies)
EY 38Discontinuance profit formula (existing policies): when partial reinsurance exists
EY 39Discontinuance profit formula (new policies): when partial reinsurance exists
EY 40Discontinuance profit formulas: individual result may never be negative
Policyholder income
EY 41How policyholder income is calculated
EY 42Policyholder income formula
EY 42BPolicyholder income formula: FDR adjustment
EY 42CPolicyholder income formula: PILF adjustment
EY 43Policyholder income formula: when partial reinsurance exists
EY 44Policyholder income formula: when life insurance business transferred
Disposal of property
EY 45Income from disposal of property
EY 46Deductions for disposal of property
Non-resident life insurers
EY 47Non-resident life insurers with life insurance policies in New Zealand
EY 48Non-resident life insurer may become resident
Subpart EZ—Terminating provisions
Life insurance
EZ 1Life insurers acquiring property before 1 April 1988
EZ 2Deductions for disposal of property: 1982-83 and 1989-90 income years
Petroleum mining
EZ 3Petroleum development expenditure from 1 October 1990 to 15 December 1991
Livestock
EZ 4Valuation of livestock bailed or leased as at 2 September 1992
EZ 4BReduction: bloodstock not previously used for breeding in New Zealand: pre-1 August 2006
EZ 4CReduction: broodmare previously used for breeding in New Zealand: pre-1 August 2006
Patent rights
EZ 5Buying patent rights before 1 April 1993
Leases of land
EZ 6Premium paid on land leased before 1 April 1993
Foreign investment fund rules
EZ 7FIF interests held on 1 April 1993 [Repealed]
Depreciation
EZ 8Pool method for items accounted for by globo method for 1992-93 income year
EZ 9Pool items accounted for by globo method for 1992-93 income year
EZ 10Amounts of depreciation recovery income and depreciation loss for part business use in or before 1992-93 income year
EZ 11Amount of depreciation loss for item acquired from associated person on or before 23 September 1997
EZ 12Annual rate for item acquired on or after 1 April 1993 and before end of person’s 1994-95 income year
EZ 13Pre-1993 depreciation rate
EZ 14Annual rate for excluded depreciable property: 1992-93 tax year
EZ 15Amount of depreciation loss for plant or machinery additional to section EZ 14 amount
EZ 16Additional amount of depreciation loss: between 16 December 1991 and 1 April 1994
EZ 17Section EZ 16 amount of depreciation loss when items transferred between companies in wholly-owned group before 1 April 1993
EZ 18Section EZ 16 amount of depreciation loss when person previously exempt from tax acquires item
EZ 19Adjusted tax value for software acquired before 1 April 1993
EZ 20Sections EE 38 and EE 40: permanent removal: allowance before 1 April 1995
EZ 21Base value and total deductions in section EE 47: before 1 April 1995
EZ 21BEconomic rate for plant or equipment acquired before 1 April 2005 and buildings acquired before 19 May 2005
Definitions
EZ 22Meaning of new asset
EZ 23Meaning of New Zealand-new asset
EZ 24Meaning of qualifying capital value
EZ 25Meaning of qualifying improvement
EZ 26Meaning of qualifying asset
Accident insurance
EZ 27Private insurers under Accident Insurance Act 1998
EZ 28Base premium for 1998-99 premium year under Accident Insurance Act 1998
CFC and FIF rules
EZ 29Disclosure restrictions on grey list CFCs before 2011–12
Old financial arrangements rules
EZ 30Application of old financial arrangements rules
EZ 31Election to apply financial arrangements rules in subpart EW
EZ 32Accruals in relation to income and expenditure in respect of financial arrangements
EZ 33Excepted financial arrangement that is part of financial arrangement
EZ 34Cash basis holder
EZ 35Income and expenditure where financial arrangement redeemed or disposed of
EZ 36Forgiveness of debt
EZ 37Accrued income written off
EZ 38Sale of debt to associate of debtor
EZ 39Post facto adjustment
EZ 40Variable principal debt instruments
EZ 41Relationship with rest of Act
EZ 42Application of old financial arrangements rules
EZ 43Election to treat short term trade credit as financial arrangement
EZ 44Election to continue to treat certain excepted financial arrangements as financial arrangements
EZ 45Definitions
EZ 46Determination of core acquisition price where consideration for property denominated in foreign currency
EZ 47Rules for non-market transactions
EZ 48Transitional adjustment when changing to financial arrangements rules
EZ 49References to new rules include old rules
EZ 50Transitional rule for IFRS financial reporting method
EZ 51Transitional rule for financial reporting method
EZ 52Transitional rule for changes from the fair value method
Part F
Apportionment and recharacterised transactions
Subpart FB—Apportionment
FB 2Apportionment of income derived partly in New Zealand and partly elsewhere
FB 3Disposal of trading stock
FB 4Income derived from disposal of trading stock together with other assets of business
FB 4ALand on revenue account
FB 7Depreciation: partial income-producing use
Subpart FC—Recharacterisation
Debentures and notes
FC 1Floating rate of interest on debentures
FC 2Interest on debentures issued in substitution for shares
FC 2BStapled debt securities
Shares
FC 3Share dealing
FC 4Valuation adjustments where company acquires its shares
Leases
FC 5Assets purchased and resold after deduction of payments under lease
FC 6Effect of specified lease on lessor and lessee
FC 7Income of lessor under specified lease
FC 8Deduction to lessee under specified lease
Finance leases
FC 8ALease of personal property lease asset treated as sale
FC 8BRules for personal property lease asset during term of finance lease
FC 8CTermination of finance lease
FC 8DLessor’s use of personal property lease asset after finance lease ends
FC 8EPurchase and sale of personal property lease asset by lessee or associated person
FC 8FLessor’s income
FC 8GDeduction to lessee
FC 8HAdjustment required if lease becomes finance lease
FC 8IAdjustment required for certain operating leases entered before 20 June 2007
Hire purchase
FC 9Purpose
FC 10Taxation of hire purchase agreements
Non-resident general insurers
FC 13Premiums derived by non-resident general insurers treated as being derived from New Zealand
FC 14Non-resident general insurers’ income
FC 15Non-resident general insurers’ expenditure
FC 16Liability to make return and pay income tax
FC 17Premiums paid to residents of Switzerland
Non-resident shippers
FC 18Non-resident shippers’ income
FC 19Non-resident shippers’ excluded income
FC 20Non-resident shippers’ expenditure
Non-resident film renters
FC 21Amounts derived by non-residents from renting films
Transitional residents
FC 22Tax treatment of foreign-sourced amounts derived by transitional resident
FC 23General requirements for being transitional resident
FC 24Transitional resident
Subpart FCB—Emigration of resident companies
FCB 1Tax effects of company becoming non-resident to reflect tax effects of liquidation
FCB 2Emigrating company treated as paying distribution to shareholders
FCB 3Emigrating company treated as disposing of property and immediately reacquiring property
Subpart FD—Consolidation of companies
FD 1Purpose and application of consolidated grouping provisions
FD 2Interpretation
FD 3Companies which may constitute consolidated group
FD 4Formation of consolidated group
FD 5Company may not be member of more than 1 consolidated group
FD 6Nominated companies
FD 7Joining existing consolidated group
FD 8Leaving consolidated group
FD 9Part income year accounts and part tax year income allocation
FD 10Special provisions relating to dispositions of property
FD 11Application of international tax rules
Subpart FDA—Imputation group of companies
FDA 1Companies that may constitute imputation group
FDA 2Formation, entry, and combination of imputation groups
FDA 3Membership of groups
FDA 4Liability of members of imputation group
FDA 5Nominated company
FDA 6Leaving imputation group
Subpart FE—Amalgamation
FE 1Amalgamation of companies: purpose
FE 2Cancellation of shares held by amalgamating company on amalgamation
FE 3Deduction to amalgamated company for bad debts and expenditure
FE 4Amalgamated company to assume unexpired accrual expenditure and profits or gains of amalgamating company
FE 5Transfer of property or obligations under financial arrangements deemed to be at market value
FE 6Acquisition of property by amalgamated company on qualifying amalgamation
FE 6ADeduction to amalgamating company for depreciable property transferred
FE 7Succession of obligations of amalgamating company under financial arrangement on amalgamation
FE 8Amalgamated company to assume rights and obligations of amalgamating company
FE 9Amalgamation not to result in deemed income or remission of liabilities
FE 10Treatment of financial arrangements between amalgamating companies
Subpart FF—Transfers under relationship agreements
FF 1Shares or options
FF 2Financial arrangements
FF 3Business stock in hand
FF 4Personal property
FF 5Commercial bills
FF 6Land
FF 7Disposal of timber under relationship agreement
FF 8Patent applications and patent rights
FF 9Specified livestock
FF 10Non-specified livestock
FF 11High-priced livestock
FF 12Bloodstock
FF 13Trading stock
FF 14Leased assets
FF 15Amount of depreciation loss for qualifying assets
FF 16Depreciable property
FF 17Pensions
FF 18Land used in specified activity
FF 19Mining assets
Subpart FG—Apportionment of interest costs
FG 1Purpose of this subpart
FG 2Entities to which interest deduction rules potentially apply
FG 3When interest apportioned under section FG 8 or annual total deduction adjusted under section FG 8B
FG 4Rules for calculating New Zealand group debt percentage
FG 5Rules for calculating worldwide group debt percentage
FG 6Concession for on-lending
FG 7Concession for exchange rate fluctuations
FG 8Apportionment of interest deductions—taxpayer not in New Zealand banking group
FG 8BAdjustment of annual total deduction—reporting bank
FG 8CNew Zealand banking group of registered bank
FG 8DReporting bank for New Zealand banking group
FG 8EMeasurement periods and measurement days
FG 8FFinancial value and regulatory value
FG 8GNew Zealand net equity of New Zealand banking group
FG 8HNet equity threshold
FG 8IValuation of debt and risk-weighted exposures
FG 8JTreatment of temporary change in New Zealand net equity or net equity threshold
FG 9Treatment of specified leases and interest expense
FG 10Mode of elections
Subpart FH—Foreign attributed income excess interest allocation
FH 1Circumstances in which group excess interest allocation required
FH 2Rules for determining company’s foreign attributed income group
FH 3Rules for determining New Zealand foreign attributed income group debt percentage
FH 4Rules for determining consolidated foreign attributed income group debt percentage
FH 5Rule for calculating group excess interest allocation amount
FH 6Rule for calculating company’s excess interest allocation percentage
FH 7Rule for calculating individual excess interest allocation amount
FH 8Rules for applying surplus group excess interest allocation amount to increase income tax and dividend withholding payment
Subpart I—Effect of certain disposals and resulting acquisitions
FI 1Disposals and resulting acquisitions to which subpart FI applies
FI 2Disposal and resulting acquisition of property treated as occurring at market value
FI 3Date on which disposal and resulting acquisition treated as occurring
FI 4Disposal and resulting acquisition of property by spouse, civil union partner, or de facto partner on death of person
FI 5Distributions of property to close relatives and others
FI 6Disposal and resulting acquisition of timber
FI 7Relationship of section FI 2(2) to subpart CB
FI 8Relationship of subpart FI to unexpired prepayments
FI 9Death occurring before 1 October 2005
FI 10Value of property acquired by beneficiary of trust before 1 October 2005
FI 11Disposal of certain financial arrangements on death
Subpart FZ—Terminating provisions
FZ 1Deduction for dividends paid on certain preference shares
FZ 2Amounts owing under convertible notes deemed to be share capital and holders deemed to be shareholders
Part G
Avoidance and non-market transactions
Subpart GB—Avoidance: general
GB 1Agreements purporting to alter incidence of tax to be void
Subpart GC—Avoidance: specific
GC 1Arrangement to defeat application of cross-border arrangement provision
GC 2Arrangements to defeat application of net loss carry forward provisions
GC 3Effect on continuity provisions of change in beneficiaries of trust
GC 4Arrangement to defeat application of net loss offset provisions
GC 5Arrangement to defeat application of qualifying company provisions
GC 6Arrangement to defeat application of depreciation provisions
GC 7Arrangements in respect of CFCs
GC 8Arrangement to defeat application of CFC attributed repatriation provisions
GC 9Variations in control or income interests in foreign companies
GC 10Attributed CFC income and FIF income: arrangements in respect of elections
GC 11ANon-market transactions to acquire film rights
GC 11BManipulation of arrangements to acquire film rights
GC 12Petroleum mining
GC 14Income of beneficiaries
GC 14ASale or transfer of commercial bill to New Zealand resident
GC 14BAttribution rule for personal services
GC 14CDefinitions for use in section GC 14B
GC 14DAttribution rule: calculation
GC 14EAttribution rule: exception
GC 14EBTreatment of dividends as if from qualifying company [Repealed]
GC 14FArrangement to avoid application of restrictive covenant rule
GC 14GArrangement to avoid application of rules for returning share transfers
Fringe benefit tax
GC 15Benefit given to associated person of employee
GC 16Value of motor vehicle acquired from associated person
GC 17Fringe benefit tax: general
GC 17BFringe benefit tax: arrangement void
Deductions
GC 18Agreements not to make tax deductions to be void
GC 19Resident withholding tax
GC 20Agreements not to make resident withholding tax deductions to be void
Imputation
GC 21Imputation continuity requirements
GC 22Imputation: arrangement to obtain tax advantage
GC 23Imputation: dividend paid by another company
GC 24Application of specific imputation provisions to consolidated groups
GC 25Avoidance of dividend withholding payments
GC 26Arrangement to defeat application of branch equivalent tax account provisions
GC 27Arrangement to defeat application of dividend withholding payment account provisions
GC 27AArrangement to obtain tax advantage with respect to Maori authority credit account provisions (subpart MK)
Tax credits for families
GC 28Tax credits for families
Arrangements involving money not at risk
GC 29Application of sections GC 29 to GC 31
GC 30Defined terms for sections GC 29 to GC 31
GC 31Deferral of surplus deductions from arrangement
Subpart GD—Non-market transactions
Trading stock
GD 1Sale or other disposal of trading stock for inadequate consideration
GD 2Distribution of trading stock to shareholders of company [Repealed]
Remuneration
GD 3Payment of excessive salary or wages, or allocation of excessive share of profits or losses, to relative employed by or in partnership with taxpayer
GD 4Payments to taxpayer’s spouse, civil union partner or de facto partner
GD 5Excessive remuneration by close company to shareholder, director, or relative
Superannuation and life insurance
GD 6Value of loans provided by superannuation fund deemed to be income of fund
GD 7Distribution of property to policyholders
GD 8Superannuation schemes
Leases
GD 10Leases for inadequate rent
Other non-market transactions
GD 11Financial arrangements rules
GD 12Non-market transactions for incurring film production expenditure
GD 12AFilm production expenditure if payments postponed or contingent
GD 12BManipulation of arrangements to incur film production expenditure
GD 13Cross-border arrangements between associated persons
GD 14Attributing interests in FIFs
GD 15Disposal of timber, or right to take timber, or standing timber to associated person
GD 16Disposals of ETS units at below market value
Subpart GE—Non-market transactions: specific
GE 1New Zealand Raspberry Marketing Council
Subpart GZ—Terminating provisions
GZ 1Pre-1974 agreements purporting to alter incidence of tax
Part H
Treatment of net income of certain entities
Subpart HB—Consolidated groups of companies
HB 1Returns, assessments, and liability of consolidated group
HB 2Taxable income to be calculated generally as if group were single company
Subpart HC—Special partnerships
[Repealed]
HC 1Special partnerships [Repealed]
Subpart HD—Partnerships
HD 1Assessment of partners, co-trustees, and joint venturers
Subpart HE—Unit trusts
HE 1Unit trusts
HE 2Group investment funds
Subpart HF—Mutual associations
HF 1Profits of mutual associations in respect of transactions with members
Subpart HG—Qualifying companies
HG 1Qualifying company regime
HG 2Determination of effective interest in company
HG 3Director elections, and revocation of director elections
HG 4Shareholder elections
HG 5Revocation of shareholder elections
HG 6Period of grace for new elections following death, revocation of shareholder election, or issue of new shares
HG 7Date on which non-complying company ceases to be qualifying company, and Commissioner’s power to defer
HG 8Liability of electing shareholder for income tax of company
HG 9Taxation of shareholders in qualifying companies
HG 10Taxation of qualifying company
HG 10BDividends derived by qualifying companies
HG 11Taxation on election to become qualifying company
HG 12Payment of qualifying company election tax
HG 13Dividends from qualifying company
HG 14Loss attributing qualifying companies
HG 14AMinority shareholders in loss attributing qualifying companies
HG 15Revocation of loss attribution elections
HG 16Net losses of loss attributing qualifying company to be attributed to shareholders
HG 17Attributed CFC losses and FIF losses
HG 18Company that ceases to be loss attributing qualifying company also ceases to be qualifying company
Subpart HH—Trusts
HH 1Interpretation
HH 1ATreatment of settlements on trust
HH 2Trusts settled by persons before becoming resident
HH 3Income of beneficiaries
HH 3ABeneficiary income of minors
HH 3BExemption for beneficiary income $1,000 or less
HH 3CSource of beneficiary income
HH 3DTreatment of various settlements
HH 3EExceptions
HH 3FDefinitions of guardian, minor, and relative
HH 4Trustee income
HH 5Existing trusts becoming subject to tax
HH 6Distributions from trusts
HH 7Commissioner may determine amount of trustee income
HH 8Income received by trustee after death of deceased person
Subpart HI—Maori authorities
HI 1Application of Act to Maori authority
HI 2Eligibility to be Maori authority
HI 3Election to become Maori authority
HI 4Distributions by Maori authority
HI 5Amount distributed to member by Maori authority
HI 6Proportional allocation required if distribution includes amount other than taxable Maori authority distribution
HI 7Distribution includes Maori authority credit attached and RWT deducted
HI 8Treatment of companies and trusts that elect to apply this subpart
HI 9Market value calculations
Subpart HJ—Superannuation
HJ 1Government Superannuation Fund
Subpart HK—Agency
Agents generally
HK 1Agent to make returns and be assessed as principal
HK 2Rate and amount of tax payable by agent
HK 3Liability of principal not affected
HK 4Agent may recover tax from principal
HK 5Agent may retain from money of principal amount required for tax
HK 6Assessment deemed authority for payment of tax by agent
HK 7Agents to be personally liable for payment of tax
HK 8Relation of principal and agent arising in effect
Special cases of agency
HK 9Guardian of person under disability to be agent
HK 10Liability of mortgagee in possession
HK 11Liability for tax payable by company left with insufficient assets
HK 12Company deemed agent of debenture holders
HK 13Modification of agency provisions in respect of income from company debentures
Agents of absentees and non-residents
HK 16Liability of agent of absentee principal for returns and tax
HK 17Partner of absentee deemed agent
HK 18Master of ship deemed agent of absentee owner
HK 19Tenant, mortgagor, or other debtor to be agent of absentee landlord, mortgagee, or other creditor
HK 20Person having disposal of income deemed agent
HK 21Company to be agent of absentee shareholders
HK 22Trustee of group investment fund to be agent of absentee investors
HK 23Banking company to be agent of absentee depositors
HK 24Liability as agent of employer of non-resident taxpayer and employer’s agent
HK 25Non-resident trader to be agent of employees in New Zealand
HK 26Agents in New Zealand of principals resident abroad
Subpart HL—Portfolio investment entities
Introductory provisions
HL 1Intended effect on portfolio tax rate entities and investors
HL 2Scheme of subpart
Eligibility requirements: portfolio investment entities and foreign investment vehicles
HL 3Eligibility requirements for entities
HL 4Effect of failure to meet eligibility requirements for entities
HL 5Foreign investment vehicles
HL 5BMeaning of investor and portfolio investor class
HL 5CIncome interest requirement
HL 6Investor membership requirement
HL 7Investor return adjustment requirement: portfolio tax rate entity
HL 8Imputation credit distribution requirement: portfolio listed company
HL 9Investor interest size requirement
HL 10Further eligibility requirements relating to investments
Becoming and ceasing to be portfolio investment entity
HL 11Election to become portfolio investment entity and cancellation of election
HL 11BUnlisted company may choose to become portfolio listed company
HL 12Becoming portfolio investment entity
HL 13Tax consequences from transition
HL 14Ceasing to be portfolio investment entity
Periods relevant to calculation of portfolio entity tax liability
HL 15Portfolio allocation period and portfolio calculation period
Allocation of income in some cases
HL 16Treatment of income from interest if no investor entitled or investor has conditional entitlement
HL 17Certain new investors treated as part of existing portfolio investor class
Calculating portfolio entity tax liability
HL 18Portfolio class net income and portfolio class net loss for portfolio allocation period
HL 19Portfolio class taxable income and portfolio class taxable loss for portfolio allocation period
HL 19BTreatment of certain provisions made by portfolio tax rate entity
HL 20Portfolio entity tax liability and rebates of portfolio tax rate entity for period
Payment by portfolio tax rate entity of tax for tax year
HL 21Payments of tax by portfolio tax rate entity making no election
HL 22Payments of tax by portfolio tax rate entity choosing to pay provisional tax
HL 23Payments of tax by portfolio tax rate entity choosing to make payments when investor leaves
HL 23BOptional payments of tax by portfolio tax rate entities
Results for investors
HL 24Portfolio investor allocated income and portfolio investor allocated loss
HL 25Treatment of portfolio investor allocated loss for zero-rated portfolio investors and investors with portfolio investor exit period
Rebate for entity
HL 26Treatment of portfolio investor allocated loss for other investors
Treatment of credits received by entity
HL 27Credits received by portfolio tax rate entity or portfolio investor proxy
Treatment of losses for entity
HL 28Portfolio entity formation loss
HL 29Portfolio class taxable income and portfolio class taxable loss for tax year
HL 30Treatment of portfolio class taxable loss and portfolio class land loss for tax year
Portfolio investor proxies
HL 31Portfolio investor proxies
Subpart HZ—Terminating provisions
HZ 1Trust distributions
HZ 2Trusts that may become qualifying trusts
Part I
Treatment of net losses
Subpart ID—Application of Part to schedular income
ID 1No offset in calculating some income tax liabilities
Subpart IE—Net losses
IE 1Net losses may be offset against future net income
IE 2Specified activity net losses
IE 3Attributed CFC net losses
IE 4FIF net losses
Subpart IF—Net losses: companies
IF 1Net losses may be offset against future net income
IF 2Special provision in relation to net losses of companies for 1990-91 and 1991-92 income years
IF 3Attributed CFC net losses
IF 4Losses, attributed CFC net losses, and FIF net losses of amalgamating company
IF 5Ordering of losses of amalgamated company
IF 6Losses, attributed CFC net losses, and FIF net losses of amalgamated company
IF 7Offsetting supplementary dividend against net income
Subpart IG—Net losses: groups of companies
IG 1Companies included in group of companies
IG 2Net loss offset between group companies
IG 3Special provisions in relation to group companies for 1991-92 tax year
IG 4Group of companies attributed CFC net losses
IG 5Group of companies FIF net losses
IG 6Loss carry forward and grouping by consolidated group and consolidated group members
IG 7Attributed CFC net losses and FIF net losses of consolidated group members
IG 8Net losses, attributed CFC net losses, and FIF net losses of amalgamated company
IG 9Net losses, attributed CFC net losses, and FIF net losses offset against net income of amalgamated company
IG 10Net losses used to pay penalties
Subpart IH—Losses: miners
IH 1Losses of mining companies and petroleum miners
IH 2Companies engaged in exploring for, searching for, or mining petroleum
IH 3Loss carry back by petroleum miners
IH 4Companies engaged in exploring for, searching for, or mining certain minerals
IH 5Resident mining operators
Subpart II—Losses: life insurers
II 1Policyholder net losses
II 2Policyholder net loss for tax year preceding 1990-91
II 3Carry forward of policyholder net loss
Subpart IZ—Withdrawal tax
IZ 1Application of this subpart
IZ 2Rate of withdrawal tax
IZ 3Withdrawal income
IZ 4Payment of withdrawal tax
IZ 5Evidence of liability in proceedings for recovery
IZ 6Relief in certain cases
IZ 7Application of other provisions to withdrawal tax
Part K
Rebates
Subpart KB—General
KB 2Proportionate adjustment to rebates on change of return date
KB 3Calculations of rebates producing negative amounts
Subpart KC—Individual rebates
KC 1Low income rebate
KC 2Rebate in certain cases for children
KC 3Transitional tax allowance
KC 4Rebate in certain cases for housekeeper
KC 5Rebate in respect of gifts of money
KC 6Rebate in respect of redundancy payment
Subpart KD—Tax credits for families
KD A1Calculation of tax credits under this subpart
KD 1Determination of net income
KD 1AWorking for Families tax credits
KD 2Calculation of subpart KD credit
KD 2AAAIn-work tax credit
KD 2AAABContinuation of child tax credit payments
KD 2AARules for subpart KD credit
KD 2ABParental tax credit
KD 2ACalculating net contributions to family tax credit, in-work tax credit child tax credit, and parental tax credit
KD 3Calculation of minimum family tax credit
KD 3ARules for minimum family tax credit
KD 3BApplications for guaranteed minimum family tax credit
KD 4Allowance of credit of tax in end of year assessment
KD 5Credit of tax by instalments
KD 5BRates for interim instalments for period beginning on or after 1 July 1998 [Repealed]
KD 5CAdjustment of family tax credit amounts, abatement threshold amounts, amounts of in-work tax credit and parental tax credit, and amount of minimum family tax credit
KD 6Chief executive to deliver credit of tax
KD 7Commissioner to deliver credit of tax by instalments
KD 7AEffect of extra interim instalment on entitlement to tax credit
KD 8Credit of tax deemed to be excluded income
KD 9Advice
Subpart KE—Housing rebates
KE 1Rebate for interest on home vendor mortgages
Subpart KF—Rebates for non-residents
KF 3Rebates for absentees
Subpart KG—Industry-specific rebates
KG 1Rebate for savings in special farm, fishing vessel, and home ownership accounts
Subpart KH—Conduit tax relief
KH 1Conduit tax relief
KH 2Calculation of percentage of shareholders not resident
Subpart KI—Rebates for portfolio tax rate entities
KI 1Rebate for portfolio tax rate entity relating to certain investors
Subpart KJ—KiwiSaver scheme and complying superannuation fund tax credits
KJ 1Tax credits relating to KiwiSaver scheme and complying superannuation fund members
KJ 2Person’s requirements
KJ 3Tax credit amount
KJ 4Payment
KJ 5Rules
KJ 6Tax credits relating to employers contributing to KiwiSaver schemes and complying superannuation funds
KJ 7Employer requirements
KJ 8Tax credit amount
KJ 9Using the tax credit
KJ 10Treatment when short payment and unpaid amount of compulsory employer contributions found after tax credit used
KJ 11Employees who opt out
KJ 12Group of persons 1 employer
Subpart KZ—Terminating provisions
KZ 1Rebate from tax payable by persons receiving war pension
KZ 2Rebate in respect of loss not carried forward
KZ 3Continuation of rebates in respect of certain specified development projects
Part L
Credits
Subpart LB—Imputation credits: shareholders and imputation system
LB 1Determination of amount of credit in certain cases
LB 1ATreatment of imputation credits of beneficiary minor
LB 2Credit of tax for imputation credit
LB 3Credit of retirement scheme contribution withholding tax for imputation credit
Subpart LC—Foreign tax
LC 1Credits in respect of tax paid in country or territory outside New Zealand
LC 1AAmendment of schedule 6 by Order in Council
LC 2Maximum credits
LC 3Recovery of excess credit allowed through not taking into account refund of foreign tax
LC 4Foreign tax credits: CFCs
LC 5Group of companies CFC tax credits
LC 8CFC tax credits of amalgamating company
LC 9Ordering of CFC tax credits of amalgamated company
LC 10CFC tax credits of amalgamated company
LC 11CFC tax credits of amalgamated company credited against income tax liability of another company
LC 12CFC tax credits of company credited against income tax liability of amalgamated company
LC 13Information for credit to be furnished within 4 years
Miscellaneous provisions
LC 14Ascertainment of New Zealand income tax liability
LC 14ASource of dividends
LC 15United Kingdom tax on dividends [Repealed]
LC 16Foreign tax credits of consolidated group members
Subpart LD—Credit for tax paid or withheld
LD 1Tax deductions to be credited against tax assessed
LD 1BTax deductions from certain accident compensation payments: credit allowed to provider
LD 1CTax deductions from certain accident compensation payments: credit allowed to claimant
LD 2Non-resident withholding tax: credit allowed
LD 3Resident withholding tax payments to be credited against income tax assessed
LD 3AMaori authority credit to be credited against income tax assessed
LD 4Credit of retirement scheme contribution withholding tax for Maori authority credit
LD 6Allowance for provisional tax paid by agent
LD 7Provisional tax to be credited against income tax liability
LD 8Credit of tax for dividend withholding payment credit in hands of shareholder
LD 9Refund to non-resident or exempt shareholders
LD 10Credit for investor for tax paid by entity if portfolio investor allocated income not excluded income
LD 10BCredit for zero-rated portfolio investor for tax paid by entity in relation to portfolio investor allocated income
LD 11Credit for investor for payment under section HL 21(5) by entity for portfolio investor exit period
LD 12Credit for retirement scheme contribution withholding tax if retirement scheme contribution not excluded income
Subpart LE—Non-resident investors
LE 1Purpose of subpart
LE 2Credits in respect of dividends to non-resident investors
LE 3Special rules for holding companies
LE 4Allocation of deductions by section LE 3 holding company
Subpart LF—Underlying foreign tax credits
LF 1Underlying foreign tax credits generally, and interpretation
LF 2Granting of underlying foreign tax credit
LF 3Amount of underlying foreign tax credit
LF 4Dividends from lower-tier companies
LF 5Dividends from grey list companies
LF 6Procedures with respect to underlying foreign tax credit
LF 7Interest paid in conduit financing arrangements
Subpart LG—Conduit tax relief credits
LG 1Conduit tax relief additional dividends
Part M
Tax payments
Subpart MB—Provisional tax
Introductory provisions
MB 1Outline of subpart
MB 2Who pays provisional tax?
MB 2AElection to be provisional taxpayer [Repealed]
MB 2BAmount of provisional tax based on 1997-98 or earlier tax year [Repealed]
MB 3Becoming provisional taxpayer by election
MB 3BProvisional taxpayer affected by self-assessed adverse event or qualifying event [Repealed]
Calculation of provisional tax liability
MB 4Methods for calculating provisional tax liability
MB 5Standard method
MB 5AAmount of provisional tax instalments in transitional year [Repealed]
MB 6Estimation method
MB 7GST ratio method
Instalments of provisional tax
MB 8Provisional tax payable in instalments
MB 9Calculating amount of instalment under standard and estimation methods
MB 9AProvisional tax and attribution rule for services [Repealed]
MB 10Calculating amount of instalment using GST ratio
MB 11Using GST refund to pay instalment of provisional tax
MB 11BTransitional provisions relating to alignment of dates of payment for provisional tax and GST [Repealed]
MB 12Voluntary payments
MB 13Paying 2 instalments for tax year
MB 14Paying 1 instalment for tax year
Requirements for using GST ratio
MB 15Who may use GST ratio?
MB 16Choosing to use GST ratio
MB 17Changing determination method
MB 18Disposal of assets
Transitional years
MB 19Calculating residual income tax in transitional years
MB 20Paying provisional tax in transitional years
MB 21Calculating instalments in transitional years: standard method
MB 22Calculating instalments in transitional years: estimation method
MB 23Calculating instalments in transitional years: GST ratio method
MB 24Consequences of change in balance date
When provisional taxpayers start or stop paying GST, or change taxable periods
MB 25Registering for GST or cancelling registration
MB 26Changing GST cycle
MB 27Payment of provisional tax instalments when GST cycle changed
Penalties and interest provisions
MB 28Application of provisions of Tax Administration Act 1994
Treatment of groups of companies and amalgamated companies
MB 29Provisional tax rules and consolidated groups
MB 30Residual income tax of consolidated groups
MB 31Consolidated groups using estimation method
MB 32Consolidated groups using GST ratio method
MB 33Wholly-owned groups of companies
MB 34Amalgamated companies: calculating residual income tax
Attribution rule for services
MB 35Attribution rule for services
Overpayments and credits
MB 36Overpaid provisional tax
MB 37Further income tax credited to provisional tax liability
Disaster relief
MB 38Provisional taxpayer affected by self-assessed adverse event or qualifying event
Subpart MBA—Pooling of provisional tax
MBA 1Purpose
MBA 2Function of intermediary and tax pooling account
MBA 3Application to establish tax pooling account
MBA 4Tax pooling account
MBA 5Deposits to tax pooling account
MBA 6Transfers from tax pooling account
MBA 7Refunds from tax pooling account
MBA 8Wind up of tax pooling account
MBA 9Tax treatment of payments of interest
Subpart MBB—Early-payment discount of income tax
MBB 1Purpose
MBB 2Availability of early-payment discount
MBB 3Credit treated as being payment as income tax
MBB 4Some definitions
Subpart MC—Terminal tax
MC 1Payment of terminal tax
Subpart MD—Refunds
MD 1Refund of excess tax
MD 1BTreatment of certain refunds made on income statements: 2005–06, 2006–07, and 2007–08 income years
MD 1CTreatment of certain refunds not paid within 4-year period: 2005–06, 2006–07, and 2007–08 income years
MD 2Limit on refunds and allocations of tax
MD 2ALimits on refunds of tax for certain qualifying unit trusts and group investment funds
MD 2BLimits on refunds of tax in relation to Maori authorities
MD 3Refund of income tax not to exceed amount of credit balance
MD 5No credits or debits for excess income tax or dividend withholding payments not refunded or allocated
Subpart ME—Imputation credit accounts
Imputation credit accounts: general
ME 1Companies required to maintain imputation credit account
ME 1ACompanies electing to maintain imputation credit account
ME 1BAmount of dividend for imputation rules if paid in Australian currency
ME 2Balance of imputation credit account
ME 3Imputation credit account
ME 4Credits arising to imputation credit account
ME 5Debits arising to imputation credit account
ME 6Company may attach imputation credit to dividend
ME 6BShare user may attach imputation credit to replacement payment
ME 7Transfer by life insurance company of credit balance to policyholder credit account
ME 8Allocation rules for imputation credits
ME 9Further tax payable where end of year debit balance, or when company ceases to be imputation credit account company
ME 9BImputation credit account company leaving wholly-owned group
ME 9CImputation credit account company joining wholly-owned group
Consolidated imputation groups
ME 10Consolidated imputation group to maintain separate imputation credit account
ME 11Credits arising to imputation credit account of group
ME 12Debits arising to imputation credit account of group
ME 13Debiting and crediting between consolidated imputation group and individual companies
ME 14Application of specific imputation provisions to consolidated imputation groups
Policyholder credit accounts
ME 15Resident life insurance companies to maintain policyholder credit account
ME 16Calculation of balance of policyholder credit account
ME 17Policyholder credit account of company
ME 18Credits and debits arising to policyholder credit account of company
ME 19Election to use credit balance as credit against policyholder base income tax liability or as credit in imputation credit account
ME 19ACredit balance may be transferred on transfer of life insurance business
ME 20Determinations by Commissioner as to credits and debits arising to policyholder credit account
ME 21Person may elect to maintain policyholder credit account
ME 22Policyholder credit account of person
ME 23Credits and debits arising to policyholder credit account of person
ME 24Use of credit balance to reduce income tax
Policyholder credit accounts: consolidated groups
ME 25Policyholder credit accounts and consolidated groups
ME 26Credits and debits arising to group policyholder credit account
ME 27Debiting and crediting between group and individual policyholder credit accounts
ME 28Application of policyholder credit account provisions to consolidated group
Imputation credit accounts and policyholder credit accounts: amalgamated companies
ME 29Debits and credits arising to imputation credit account or policyholder credit account on amalgamation
Imputation credit accounts: statutory producer boards
ME 30Statutory producer board may determine to attach imputation credit to certain distributions
ME 31Amount of imputation credit to be attached to cash distribution
ME 32Amount of imputation credit to be attached to notional distribution
ME 33Notional distribution deemed to be dividend
ME 34Statutory producer boards and dividend withholding payments
Imputation credits: co-operative companies
ME 35Co-operative company may make annual determination to attach imputation credit to certain distributions
ME 36Amount of imputation credit to be attached to cash distribution
ME 37Amount of imputation credit to be attached to notional distribution
ME 38Notional distribution deemed to be dividend or taxable Maori authority distribution
ME 39Co-operative companies and dividend withholding payments
Imputation credit accounts: credits and debits incorrectly recorded
ME 40Determinations by Commissioner as to credits and debits arising to imputation credit account
Imputation credit accounts: unit trusts and group investment funds
ME 41Special debits arising to imputation credit account of unit trust or group investment fund
Subpart MF—Branch equivalent tax accounts
Branch equivalent tax accounts of companies
MF 1Company may elect to maintain branch equivalent tax account
MF 2Balance of branch equivalent tax account
MF 3Branch equivalent tax account of company
MF 4Credits and debits arising to branch equivalent tax account of company
MF 5Use of credit to reduce dividend withholding payment, or use of debit to satisfy income tax liability
MF 6Determinations by Commissioner as to credits and debits arising to branch equivalent tax account
Consolidated groups
MF 7Branch equivalent tax accounts and consolidated groups
MF 8Debits and credits arising to group branch equivalent tax account
MF 9Debiting and crediting between group and individual branch equivalent tax accounts
MF 10Use of consolidated group credit to reduce dividend withholding payment, or use of group or individual debit to satisfy income tax liability
Branch equivalent tax accounts of persons
MF 11Person may elect to maintain branch equivalent tax account
MF 12Branch equivalent tax account of person
MF 13Credits and debits arising to branch equivalent tax account of person
MF 14Debit election to offset income tax payable in respect of foreign dividend
MF 15Extension of branch equivalent tax account provisions to certain FIF income
Amalgamated companies
MF 16Debits and credits arising to branch equivalent tax account of amalgamated company on amalgamation
Subpart MG—Dividend withholding payment accounts
MG 1Balance of dividend withholding payment account
MG 2Company may elect to maintain dividend withholding payment account
MG 3Dividend withholding payment account
MG 4Credits arising to dividend withholding payment account
MG 5Debits arising to dividend withholding payment account
MG 6Company may attach dividend withholding payment credit to dividend
MG 7Transfer by life insurance company of credit balance to policyholder credit account
MG 8Allocation rules for dividend withholding payment credits
MG 8BPolicyholder credit account companies and dividend withholding payment credits
MG 9Further dividend withholding payment payable by company
MG 10Dividend with both imputation credit and dividend withholding payment credit attached
MG 11Transfer of credit balance to imputation credit account
Credits and debits incorrectly recorded
MG 12Determinations by Commissioner as to credits and debits arising to dividend withholding payment credit account
Consolidated groups
MG 13Dividend withholding payment accounts and consolidated groups
MG 14Credits arising to group dividend withholding payment account
MG 15Debits arising to group dividend withholding payment account
MG 16Debiting and crediting between group and individual dividend withholding payment accounts
MG 16AApplication of specific dividend withholding provisions to consolidated groups
Amalgamated companies
MG 17Debits and credits arising to dividend withholding payment account of amalgamated company on amalgamation
Subpart MH—Payment of tax by public authorities
MH 1Payment of tax by public authorities
Subpart MI—Conduit tax relief accounts
MI 1Balance of conduit tax relief account
MI 2Company may elect to be conduit tax relief company and maintain conduit tax relief account
MI 3Conduit tax relief account
MI 4Credits arising to conduit tax relief account
MI 5Debits arising to conduit tax relief account
MI 6End of imputation year clearing transfer to or from dividend withholding payment account
MI 7Attachment of conduit tax relief credit to dividend
MI 8Allocation rules for conduit tax relief credits
MI 9Arrangement to obtain tax advantage
MI 10Dividend withholding payment payable in respect of conduit tax relief account debits
MI 11Refund of tax in respect of transfer from dividend withholding payment account
Credits and debits incorrectly recorded
MI 12Correction by Commissioner of credits and debits
MI 13Debits and credits arising to conduit tax relief account of amalgamated company on amalgamation
Consolidated groups
MI 14Consolidated group to maintain separate conduit tax relief account
MI 15Consolidated group conduit tax relief account
MI 16Consolidated group member is conduit tax relief company
MI 17Credits arising to group conduit tax relief account
MI 18Debits arising to group conduit tax relief account
MI 19Debiting and crediting between group and individual conduit tax relief accounts
MI 20End of imputation year clearing transfer to or from dividend withholding payment account
MI 21Dividend with-holding payment payable in respect of group conduit tax relief account debits
MI 22Application of specific conduit tax relief account provisions to consolidated groups
Subpart MJ—Supplementary available subscribed capital accounts
MJ 1Qualifying unit trust or group investment fund may elect to maintain supplementary available subscribed capital account
MJ 2Balance of supplementary available subscribed capital account
MJ 3Supplementary available subscribed capital account
MJ 4Supplementary available subscribed capital account: opening balance
MJ 5Credits arising to supplementary available subscribed capital account
MJ 6Debits arising to supplementary available subscribed capital account
Liquidation of qualifying unit trust or group investment fund
MJ 7Special rule for certain qualifying unit trusts and group investment funds
Credits and debits incorrectly recorded
MJ 8Correction by Commissioner of credits and debits
Subpart MK—Maori authority credit accounts
MK 1Maori authority to maintain Maori authority credit account
MK 2Balance of Maori authority credit account
MK 3Maori authority credit account
MK 4Credits arising to Maori authority credit account
MK 5Debits arising to Maori authority credit account
MK 6Maori authority may attach Maori authority credit to distribution
MK 7Allocation rules for Maori authority credit account credits
MK 8Further tax payable for end of year debit balance or when Maori authority ceases to exist
Credits and debits incorrectly recorded
MK 9Correction by Commissioner of credits and debits
Subpart MZ—Terminating provisions
MZ 1Savings for certain credits arising in relation to overpayment of income tax or dividend withholding payment
MZ 2Ordering rule for purposes of section MZ 1
MZ 3Transfers of dividend withholding payment credit balance to imputation credit account
MZ 4Attachment of dividend withholding payment credits to dividends to non-residents
MZ 5Application of excess tax to nil period
MZ 6Application of excess tax for 2001-02 tax year
MZ 7Application of allocation debit rules to certain dividends [Repealed]
MZ 8Certain elections to become provisional taxpayer
MZ 9Amount of provisional tax based on 199798 or earlier tax year
MZ 10Calculating provisional tax instalments: section MB 4
MZ 11Calculating provisional tax instalments: sections MB 7 and MB 10
MZ 12Calculating provisional tax instalments: section MB 9
Part N
Withholding taxes and taxes on income of others
Subpart NB—General
NB 1Withholding tax obligations of consolidated group members
Subpart NBA—PAYE intermediaries
NBA 1Purpose
NBA 2Accreditation requirements of PAYE intermediaries
NBA 3Approval by Commissioner of employer arrangements with PAYE intermediary
NBA 4Employer having PAYE intermediary: responsibilities and status under PAYE rules and SSCWT rules
NBA 5PAYE intermediary: responsibilities and status under PAYE rules and SSCWT rules
NBA 6Operation of trust account
NBA 7Refund by Commissioner of deductions
NBA 8Termination of employer arrangements with PAYE intermediary
Subpart NBB—Subsidy payable to certain listed PAYE intermediaries
NBB 1Purpose
NBB 2Accreditation of listed PAYE intermediary
NBB 3Obligations of listed PAYE intermediaries
NBB 4Revocation of listing
NBB 5Listed PAYE intermediary claim form
NBB 6Calculation and payment of subsidy to certain listed PAYE intermediaries
NBB 7Termination of employer arrangements with listed PAYE intermediary
Subpart NC—Withholding of PAYE
Tax deductions
NC 1Application of PAYE rules
NC 2Tax deductions to be made by employers or PAYE intermediaries
NC 3Tax deductions from amounts credited to or applied for employees
NC 4Benefits and superannuation and other payments deemed to be salary or wages
NC 5Payment to be made by employee where tax deduction exceeds source deduction payment
Amounts of tax deductions
NC 6Amounts of tax deductions
Reduced deductions
NC 7Delivery of withholding declaration
NC 8Application of tax codes specified in tax code declarations or tax code certificates
NC 8AEntitlement to undertake employment
NC 9Cessation of transitional tax allowance for purposes of tax code
NC 10Amount of total tax deduction where several deductions made for 1 week
NC 11Increased deductions to cover deficiency in deductions from advance payments
NC 12Amount of tax deductions for pay period current when tax deductions altered
NC 12AEmployee using incorrect tax code
NC 13Power of Commissioner to reduce tax deductions
NC 14Special tax code certificates
Duties of employer or PAYE intermediary as to deductions
NC 15Payment of tax deductions to Commissioner
Employee’s duties where deductions not made
NC 16Employee to pay deductions to Commissioner
Miscellaneous provisions
NC 18Bond in lieu of tax deductions in case of certain non-resident employees
NC 19Amount of tax deductions deemed to be received by employee
NC 20Application of other provisions to amounts payable under PAYE rules
NC 21Regulations
Subpart ND—Fringe benefit tax
ND 1Employer’s liability for fringe benefit tax
Value of fringe benefits
ND 1APrivate use of motor vehicle: value of benefit
ND 1ABPrivate use of motor vehicle: 24-hour period
ND 1BPrivate use of motor vehicle: test period to establish private use
ND 1CSubsidised transport: value of benefit
ND 1DEmployment-related loans: value of benefit using prescribed interest
ND 1DBEmployment-related loans: election to value benefit using market interest
ND 1EEmployment-related loans: repayment
ND 1FEmployment-related loans: regulations
ND 1GMeaning of prescribed interest
ND 1HContributions to superannuation schemes: value of benefit
ND 1IContributions to funds, trusts, and insurance: value of benefit
ND 1IBBenefits provided by charitable organisations
ND 1JGoods: value of benefit
ND 1KServices: value of benefit
ND 1LWhen value of fringe benefit cannot be ascertained
ND 1MMeaning of identical goods
ND 1NGoods at staff discount
ND 1OGoods on special with staff discount
ND 1PDefinitions for sections ND 1N and ND 1O
ND 1QUnclassified benefits
ND 1RAdjustments for unclassified benefits on amalgamation
Taxable value of fringe benefits
ND 1SPayments towards fringe benefits
ND 1TPrivate use of motor vehicle: determining taxable value in cases of part ownership
ND 1UPrivate use of motor vehicle: when schedular value not used
ND 1VPrivate use of motor vehicle: when schedular value used
Application
ND 1WApplication
Payment of fringe benefit tax
ND 2Election to pay fringe benefit tax per quarter
ND 3Attributed fringe benefits
ND 4Attributed fringe benefits: exception for subsidised transport
ND 5Multi-rate calculation for attributed fringe benefits
ND 5ASpecial rule for fringe benefits attributed to shareholder-employees or employees receiving attributed income
ND 6Calculation of fringe benefit tax on non-attributed fringe benefits
ND 7Definition of cash remuneration
ND 7ATiming of certain cash remuneration
ND 8Special rule for employer who stops employing staff during tax year
ND 8BSpecial rule for employer who is charitable organisation providing short-term charge facility
ND 9Payment of fringe benefit tax: first 3 quarters of tax year
ND 10Payment of fringe benefit tax: final quarter of tax year
ND 11Payment of fringe benefit tax: no fringe benefit provided during quarter
ND 12Special filing rule for employer who stops employing staff during tax year
ND 13Payment of fringe benefit tax on annual basis for employees who are not shareholder-employees
ND 14Payment of fringe benefit tax on income year basis for shareholder-employees
ND 15Change in period for which fringe benefit tax payable
ND 16Amendment to thresholds for fringe benefit categories by Order in Council
Subpart NE—Specified superannuation contribution withholding tax
NE 1Application
NE 2Specified superannuation contribution withholding tax imposed
NE 2AAEmployee election that higher rate of specified superannuation contribution withholding tax apply [Repealed]
NE 2ABEmployer election that progressive rates of specified superannuation contribution withholding tax apply [Repealed]
NE 2AEmployee election that specified superannuation contributions be treated as salary or wages
NE 2BEmployer election that progressive rates of specified superannuation contribution withholding tax apply
NE 3Specified superannuation contribution withholding tax to be deducted
NE 3BCalculation amounts in relation to current specified superannuation contribution for complying superannuation fund
NE 4Period for payment
NE 5Failure to deduct tax
NE 6Tax deemed for certain purposes to have been received by superannuation fund
NE 7Application of other provisions to specified superannuation contribution withholding tax
Subpart NEA—Tax on certain withdrawals from superannuation funds
NEA 1Recovery of tax paid by superannuation fund
Subpart NEB—Retirement scheme contribution withholding tax
NEB 1Retirement scheme contribution withholding tax imposed
NEB 2Retirement scheme contribution withholding tax to be deducted
NEB 3Payment and notice of deductions
NEB 4Failure to deduct
NEB 5Retirement savings schemes
NEB 6Retirement scheme contributors
NEB 7Application of other provisions to retirement scheme contribution withholding tax
Subpart NF—Resident withholding tax
Application
NF 1Application of RWT rules
Liability to pay resident withholding tax
NF 2Liability to pay resident withholding tax
NF 2AAElection to be RWT proxy
NF 2AElection to apply higher rate of deduction
NF 2BCompanies to notify interest payer
NF 2CTransitional rule: notifications by companies between 1 April 2001 and 31 May 2001 (both dates inclusive)
NF 2DElection rates of deduction for companies
NF 2EAmounts withheld from distributions to holders of FIF attributing interests
NF 3Requirements for agents or trustees to make resident withholding tax deductions on receipt of payments
Payment of resident withholding tax
NF 4Payment of deductions of resident withholding tax to Commissioner
NF 5Non-resident withholding tax deducted in substitution for resident withholding tax
Miscellaneous provisions
NF 6Resident withholding tax deductions varied to correct errors
NF 7Refunds of deductions
NF 8Resident withholding tax deductions from dividends deemed to be dividend withholding payment credits
NF 8AResident withholding tax deductions from distributions treated as Maori authority credits
NF 8BResident withholding tax deductions from replacement payments treated as imputation credits
NF 9Certificates of exemption
NF 10Unincorporated bodies
NF 11Cancellation of certificates of exemption
NF 12Amount of resident withholding tax deduction deemed to have been received
NF 13Application of other provisions in relation to resident withholding tax
Subpart NG—Non-resident withholding tax
General
NG 1Application of NRWT rules
NG 2Non-resident withholding tax imposed
NG 3Non-resident withholding tax to be final tax in certain cases
NG 4Non-resident withholding tax to be minimum tax in certain cases
NG 5Persons who may apply for approval
NG 6Approval of person as approved issuer
NG 7Revocation of approval
Deduction of non-resident withholding tax
NG 8Deduction of non-resident withholding tax
NG 9Non-resident withholding tax on dividends not paid in money
NG 10Power of Commissioner to grant relief from or vary amount of deductions
Payment of non-resident withholding tax
NG 11Payment of deductions of non-resident withholding tax to Commissioner
NG 12Person deriving non-resident withholding income to pay non-resident withholding tax to Commissioner
NG 13Failure to make deductions of non-resident withholding tax or to make payments to Commissioner
Miscellaneous provisions
NG 14Non-resident withholding tax on dividends paid to company under control of non-resident
NG 15Deductions of non-resident withholding tax deemed to be received by person entitled to payment
NG 16Non-resident withholding tax deducted in error
NG 16AVariation in non-resident withholding tax deductions to correct errors
NG 16BPerson withholding amount as retirement scheme contribution withholding tax when liable for non-resident withholding tax
NG 17Application of other provisions to non-resident withholding tax
Subpart NH—Dividend withholding payments
NH 1Liability to make deduction in respect of foreign withholding payment dividend
NH 2Amount of dividend withholding payment to be deducted
NH 3Payment and recovery of dividend withholding payment
NH 4Refund for overpayment and to company in loss
Consolidated groups
NH 5Dividend withholding payments and consolidated groups
NH 6Application of specific dividend withholding payment provisions to consolidated groups
Conduit tax relief
NH 7Reduction in liability under conduit tax relief
Subpart NZ—Terminating provisions
NZ 1Adjustment of dividends payable to preference shareholders
Part O
Definitions and related matters
Subpart OB—General definitions
OB 1Definitions
OB 2Meaning of source deduction payment
OB 3Meaning of qualifying company
OB 3AExtended meaning of charitable purpose
OB 6Meaning of income tax
Subpart OC—Special entities subject to tax
OC 1Airport operators
OC 3Statutory producer boards
OC 4Co-operative marketing companies: regulations
Subpart OD—Control interests, associated parties, and nominees
OD 1Defining when company is under control of persons
Measurement of control and ownership interests
OD 2Purpose of provisions governing measurement of voting and market value interests
OD 3Voting interests
OD 4Market value interests
OD 5Modifications to measurement of voting and market value interests in case of continuity provisions
OD 5AAModifications to voting and market value interests for application of continuity provisions to reverse takeover
OD 5AModifications to measurement of voting and market value interests in cases of continuity provisions and demutualisation of insurers
OD 5BModifications to measurement of voting and market value interests in cases of continuity provisions and legislative conversion of companies of proprietors
OD 6Modifications to measurement of voting and market value interests in case of credit account continuity provisions
Associated persons
OD 7Defining when 2 persons are associated persons
OD 8Further definitions of associated persons
Nominees
OD 9Nominees are transparent
Subpart OE—Source of income and residence
OE 1Determination of residence of person other than company
OE 2Determination of residence of company
OE 4Classes of income treated as having source in New Zealand
OE 5Commission agency contracts performed out of New Zealand
OE 7Conduit tax relief holding companies and group members
OE 8Residence of conduit tax relief company shareholders
Subpart OF—References to balance dates and years
OF 1References to balance dates and years generally
OF 2References to years in particular provisions
Part Y
Repeals, amendments, and savings
YA 1Repeals
YA 2Consequential amendments to other enactments
YA 3Transitional provisions
YA 4Saving of binding rulings
YA 5Saving of accrual determinations
YA 5BSaving of effect of section 394L(4A) of Income Tax Act 1976
YA 5CSaving effect of section DF 5 of Income Tax Act 1994
YA 6Comparative tables of old and new provisions
Schedule 1
Basic rates of income tax and specified superannuation contribution withholding tax
Schedule 2
Fringe benefit values
Schedule 3
International tax rules: grey list countries
Schedule 4
Foreign investment funds
Schedule 5
Low tax jurisdictions or territories
Schedule 6
Countries whose taxes receive limited recognition for certain New Zealand tax purposes
Schedule 6B
Expenditure in avoiding, remedying, or mitigating detrimental effects of discharge of contaminant
Schedule 7
Expenditure on farming, aquacultural, and forestry improvements
Schedule 8
Types and classes of livestock
Schedule 9
Categories of livestock for which national standard costs to be declared
Schedule 10
Straight-line equivalents of diminishing value rates of depreciation
Schedule 11
Banded rates of depreciation
Schedule 11B
Banded rates of depreciation
Schedule 12
Amount that, for purposes of section KD 5(6), is deemed to be equivalent of an annual amount
Schedule 13
Months for payment of provisional tax and terminal tax
Schedule 14
Rate of resident withholding tax deductions
Schedule 15
Statutory producer boards
Schedule 16
Depreciable land improvements
Schedule 17
Depreciable intangible property
Schedule 18
State enterprises
Schedule 19
Basic tax deductions
Schedule 20
Enactments repealed
Schedule 21
Enactments amended
Schedule 22
Amendments to Tax Administration Act 1994
Schedule 22A
Identified policy changes
Schedule 23
Comparative tables of Old and New Provisions
Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006
Taxation (Savings Investment and Miscellaneous Provisions) Act 2006
Taxation (KiwiSaver and Company Tax Rate Amendments) Act 2007
Income Tax Act 2007
Income Tax (Family Tax Credit) Order 2007
Taxation (Business Taxation and Remedial Matters) Act 2007
Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009
Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009
Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010
Taxation (Tax Administration and Remedial Matters) Act 2011
Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017
Reprint notes