Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016

Coat of Arms of New Zealand

Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016

Public Act
 
2016 No 1
Date of assent
 
24 February 2016
Commencement
 
see section 2

Contents

1Title
2Commencement
Part 1
Child support remedial matters
Amendments to Child Support Act 1991
3Child Support Act 1991 amended
4Section 2 amended (Interpretation)
5Section 3A amended (Transitional and savings provisions relating to amendments to this Act)
6Section 4A amended (Overview of child support payable under formula assessment)
7Section 8 amended (Who may apply for formula assessment)
8Section 13 amended (Notification by Commissioner of application)
9New section 13A inserted (Cases where formula assessment to be refused)
13ACases where formula assessment to be refused
10Section 25 amended (When liability to pay child support ceases)
11Section 27 replaced (Election by receiving carer to end formula assessment)
27Election by receiving carer to end formula assessment
12Section 32 amended (Minimum annual rate of child support)
13Section 34 amended (Child support income amount)
14Section 35 amended (Adjusted taxable income)
15Section 35A amended (Living allowance)
16Section 39A amended (Commissioner may take overseas income into account)
17Section 40AA amended (Interpretation for purposes of sections 40 to 45)
18Section 40 amended (Estimated taxable income)
19Section 41 amended (Effect of election)
20Section 42 amended (Revocation of election and subsequent elections)
21Section 44 amended (End-of-year reconciliation)
22Section 44A amended (Determining income amount if no tax return filed)
23Section 45 repealed (Penalty if estimated income less than 80% of actual income)
24Section 51 amended (Exception in respect of child support voluntary agreement where formula assessment in force)
25Section 88 amended (Notice of assessment of formula assessment of child support)
26Section 88A amended (Details in notices of assessments)
27Section 89L amended (Application for determination)
28Section 90 amended (Objections to appealable decisions)
29Section 91 amended (Objections to assessments)
30Section 96C amended (Matters as to which Commissioner must be satisfied before making determination)
31Section 96D amended (Determinations that may be made)
32Section 96X amended (Commissioner to notify receiving carers and liable parent who is not subject parent)
33Section 96Y amended (Election by receiving carer or by liable parent who is not subject parent to become party or discontinue proceedings)
34Section 96Z amended (Written representations by parties)
35Section 96ZA amended (Procedure for making determination)
36Section 98 amended (Minimum liability in respect of child support)
37Section 99 amended (Declarations in respect of step-parents)
38Section 102 amended (Appeals against decisions of Commissioner)
39Section 103 amended (Appeals against assessments)
40Section 105 amended (Matters as to which court must be satisfied before making order)
41New sections 106A and 106B inserted
106AFurther provision on orders for re-establishment costs situations if income increases
106BFurther provision on orders for offsetting of liabilities situations
42Section 107 amended (Implementation of orders)
43Section 129 replaced (Right to choose payment method)
129Right to choose voluntary automatic deductions or other payment method
44Section 130 amended (Defaulters to pay child support by automatic deduction)
45Section 135G amended (Discretionary relief for residual incremental penalty debt)
46Section 135GA amended (Discretionary relief for residual penalty-only debt)
47New section 135JA inserted (Relief from incremental penalties unpaid before deduction plan made on or after 1 April 2016)
135JARelief from incremental penalties unpaid before deduction plan made on or after 1 April 2016
48Section 135L amended (Writing-off of incremental penalties if non-compliance with arrangement)
49Section 152B amended (Offsetting child support payments)
50Section 154 amended (Deduction notice)
51Section 158 amended (Life of deduction notices)
52Section 180 amended (Payee may uplift financial support debt)
53Section 240 amended (Secrecy)
54Section 276 amended (Transitional and savings provisions relating to amendments to Act)
55Schedule 1 amended
Amendments to Child Support Amendment Act 2013
56Child Support Amendment Act 2013 amended
57Section 2 amended (Commencement)
58Section 37 and cross-heading above section 37 repealed
59Section 38 and cross-heading above section 38 repealed
60Section 43 amended (New section 135FA inserted)
61Section 44 amended (Discretionary relief for residual incremental penalty debt)
62Section 45 amended (New section 135GA inserted)
63Section 57 repealed (New section 152B inserted)
64Section 58 and cross-heading above section 58 repealed
65Section 59 amended (Payee may uplift financial support debt)
66Section 60 amended (New sections 180A to 180C inserted)
180DSections 180B and 180C to cover child support penalties
67Section 61 repealed (Direct payment to payee)
68Section 62 replaced (New section 276 substituted)
62Section 276 amended
69Section 63 amended (Schedule 1 amended)
11Insertion of sections 180A and 180C (Writing off of child support debt)
Amendment to Social Security Act 1964
70Section 70A of Social Security Act 1964 amended (Rates of benefits for sole parents may be reduced)
Part 2
Annual rates of income tax
71Annual rates of income tax for 2015–16 tax year
Part 3
Amendments to Income Tax Act 2007
72Income Tax Act 2007
73Section CD 18 amended (Dividend reduced if foreign tax paid on company’s income)
74Section CD 39 amended (Calculation of amount of dividend when property made available)
75Section CD 44 amended (Available capital distribution amount)
76Section CE 1C amended (Exception: overseas accommodation)
77Section CE 1E amended (Exception: accommodation provided to ministers of religion)
78Section CF 3 amended (Withdrawals from foreign superannuation scheme)
79Section CG 7B amended (Disposals or applications after earlier deductions)
80New section CG 7C inserted (Disposal or rerecognition of derecognised non-depreciable assets)
CG 7CDisposal or rerecognition of derecognised non-depreciable assets
81Section CQ 2 amended (When attributed CFC income arises)
82Section CQ 5 amended (When FIF income arises)
83Section CW 16B amended (Accommodation expenditure: out-of-town secondments and projects)
84Section CW 42 amended (Charities: business income)
85Section CW 42B amended (Community housing trusts and companies)
86Section CW 55BA replaced (Tertiary education institutions)
CW 55BATertiary education institutions and subsidiaries
87Section CX 48 repealed (Amounts remitted as condition of new start grant)
88Section CX 56C amended (Distributions to investors by listed PIEs)
89Section CZ 10 repealed (Transitional relief for calculation of attributed repatriation dividends: 2 July 1992)
90Section CZ 27 amended (Prior bad debt deductions clawback)
91Section CZ 29 amended (Accommodation expenditure: Canterbury earthquake relief)
92New section CZ 33 inserted (Transitional exception for accommodation provided to ministers of religion)
CZ 33Transitional exception for accommodation provided to ministers of religion
93Section DA 5 repealed (Treatment of expenditure for commercial fit-out)
94New section DB 22B inserted (Amounts paid for commercial fit-out for building)
DB 22BAmounts paid for commercial fit-out for building
95Section DB 31 amended (Bad debts)
96Section DB 34 amended (Research or development)
97Section DB 35 amended (Some definitions)
98Section DB 37 amended (Expenses in application for patent)
99Section DB 40B amended (Expenditure in unsuccessful development of software)
100Section DF 1 amended (Government grants to businesses)
101Section DG 4 amended (Meaning of private use for this subpart)
102Section DG 9 amended (Apportionment formula)
103Section DG 11 amended (Interest expenditure: close companies)
104Section DG 12 amended (Interest expenditure: group companies)
105Section DG 13 amended (Interest expenditure: corporate shareholders)
106Section DG 14 amended (Interest expenditure: non-corporate shareholders)
107Section DG 16 amended (Quarantined expenditure when asset activity negative)
108Section DN 6 amended (When FIF loss arises)
109Section DT 3 replaced (Acquisition of privileges and permits)
DT 3Acquisition of privileges and permits
110Section DT 8 replaced (Acquisition of certain petroleum mining assets)
DT 8Acquisition of certain petroleum mining assets
111New heading and section DV 26 inserted (Deduction for reinstatement of R&D tax losses)
Reinstatement of R&D tax losses
DV 26Deduction for reinstatement of R&D tax losses
112Section DZ 4 amended (Expenditure on abandoned exploratory well before 16 December 1991)
113Section DZ 5 amended (Farm-out arrangements for petroleum mining before 16 December 1991)
114Section EC 31 amended (Enhanced production)
115Section EC 41 amended (Reduction: bloodstock not previously used for breeding in New Zealand other than as shuttle stallions)
116Section EE 16 amended (Amount resulting from standard calculation)
117New section EE 18B inserted (Cost: some depreciable intangible property)
EE 18BCost: some depreciable intangible property
118Section EE 18B amended (Cost: some depreciable intangible property)
119Section EE 19 amended (Cost: fixed life intangible property)
120Section EE 32 amended (Election in relation to certain depreciable property acquired on or after 1 April 2005)
121Section EE 33 amended (Annual rate for fixed life intangible property)
122Section EE 34 amended (Annual rate for patent granted in 2005–06 or later income year)
123New section EE 34B inserted (Annual rate for design registrations)
EE 34BAnnual rate for design registrations
124Section EE 44 amended (Application of sections EE 48 to EE 52)
125Section EE 57 amended (Base value in section EE 56 when none of sections EE 58, EE 59, and EZ 22(1) applies)
126Section EE 60 amended (Total deductions in section EE 56)
127Section EE 61 amended (Meaning of annual rate)
128Section EE 67 amended (Other definitions)
129Section EM 1 amended (Australian non-attributing shares and attributing FDR method interests)
130Section EM 6 amended (Income and expenditure for fair dividend rate hedge portions)
131Section EW 9 amended (Persons to whom financial arrangements rules apply)
132Section EW 15D amended (IFRS financial reporting method)
133Section EW 15G amended (Modified fair value method)
134Section EW 33C amended (Consideration in foreign currency: some agreements for sale and purchase)
135Section EW 46 repealed (Consideration when debtor released as condition of new start grant)
136Section EX 16 amended (Income interests for certain purposes)
137Section EX 20B amended (Attributable CFC amount)
138Section EX 20C amended (Net attributable CFC income or loss)
139Section EX 21 amended (Attributable CFC amount and net attributable CFC income or loss: calculation rules)
140Section EX 21D amended (Non-attributing active CFC: default test)
141Section EX 21E amended (Non-attributing active CFC: test based on accounting standard)
142Section EX 24 amended (Companies moving to or from New Zealand)
143Section EX 25 amended (Change of CFC’s balance date)
144Section EX 31 amended (Exemption for ASX-listed Australian companies)
145New section EX 33 inserted (Exemption for Australian regulated superannuation savings)
EX 33Exemption for Australian regulated superannuation savings
146Section EX 35 amended (Exemption for interest in FIF resident in Australia)
147Section EX 44 amended (Five calculation methods)
148Section EX 50 amended (Attributable FIF income method)
149New section EX 52A inserted (Fair dividend rate method: use of different forms)
EX 52AFair dividend rate method: use of different forms
150Section EX 52 amended (Fair dividend rate method: usual method)
151Section EX 53 amended (Fair dividend rate method for unit-valuing funds and others by choice)
152Section EX 58 amended (Additional FIF income or loss if CFC owns FIF)
153Section EX 62 amended (Limits on changes of method)
154Section EX 63 amended (Consequences of changes in method)
155Section EX 72 amended (Commissioner’s default assessment power)
156Section EZ 5 amended (Reduction: bloodstock not previously used for breeding in New Zealand: pre-1 August 2006)
157New section EZ 32G inserted (Person deriving pension from foreign superannuation scheme and returning as income before 1 April 2014)
EZ 32GPerson deriving pension from foreign superannuation scheme and returning as income before 1 April 2014
158New section EZ 69B inserted (IFRS financial reporting method: equity or other comprehensive income)
EZ 69BIFRS financial reporting method: equity or other comprehensive income
159Section EZ 70 amended (Insurance for Canterbury earthquake damage of property: deemed sale and purchase)
160Section EZ 76 amended (Consideration for property or services: non-IFRS foreign ASAPs before 2014–15 income year)
161Section FB 1 replaced (What this subpart does)
FB 1When this subpart applies
162New section FB 1B inserted (Meaning of settlement of relationship property)
FB 1BMeaning of settlement of relationship property
163Section FB 1B replaced (Meaning of settlement of relationship property)
FB 1BMeaning of settlement of relationship property and property
164Section FB 1B amended (Meaning of settlement of relationship property and property)
165New section FB 1C inserted (Obligations for periods before and from transfer of property)
FB 1CObligations for periods before and from transfer of property
166Section FC 1 amended (What this subpart does)
167Section FC 4 replaced (Property transferred to charities or to close relatives and others)
FC 4Property transferred to charities or to close relatives and others
168Section FC 4 amended (Property transferred to charities or to close relatives and others)
169Section FC 6 amended (Forestry assets transferred to close relatives)
170Section FE 1 amended (What this subpart does)
171Section FE 2 amended (When this subpart applies)
172Section FE 4 amended (Some definitions)
173Section FE 12 amended (Calculation of debt percentages)
174Section FE 18 amended (Measurement of debts and assets of worldwide group)
175Section FE 28 amended (Identifying members of New Zealand group)
176Section FE 31D replaced (Worldwide group for entity with New Zealand parent depending on non-resident owning body)
FE 31DWorldwide group for entity controlled by non-resident owning body or trustee
177Section FO 12 amended (Financial arrangements: resident’s restricted amalgamation, companies in wholly-owned group)
178Section FO 13 amended (Financial arrangements: resident’s restricted amalgamation, calculation method unchanged)
179Section GB 8 repealed (Arrangements involving attributed repatriation from CFCs)
180Section GB 9 amended (Temporary disposals of direct control or income interests) 
181Section GB 11 amended (Temporary increases in totals for control interest categories)
182Section GB 13 amended (When combination of changes reduces income)
183New section GB 15BA inserted (CFC income or loss: arrangements for inclusion of CFC in test group)
GB 15BACFC income or loss: arrangements for inclusion of CFC in test group
184Section GB 27 amended (Attribution rule for income from personal services)
185Section HC 10 amended (Complying trusts)
186Section HC 27 amended (Who is a settlor?)
187Section HC 29 amended (Settlors’ liability to income tax)
188Section HC 33 amended (Choosing to satisfy income tax liability of trustee)
189Section HG 10 amended (Disposal of livestock)
190Section HM 42 amended (Exit calculation option)
191Section HM 43 amended (Quarterly calculation option)
192Section HM 44 amended (Provisional tax calculation option)
193Section HR 3 amended (Definitions for section HR 2: group investment funds)
194Section HR 8 amended (Transitional residents)
195Section HZ 4B amended (Qualifying companies: transition into partnership)
196Section HZ 4D amended (Qualifying companies: transition into sole traderships)
197Section IQ 1A amended (When this subpart applies)
198Section LA 7 amended (Remaining refundable credits: tax credits under social policy schemes)
199New section LB 4B inserted (Tax credit for R&D tax losses)
LB 4BTax credit for R&D tax losses
200Section LD 1 amended (Tax credits for charitable or other public benefit gifts)
201Section LD 3 amended (Meaning of charitable or other public benefit gift)
202Subpart LH repealed (Tax credits for expenditure on research and development)
203Heading after section LP 6 deleted (Supplementary dividend holding companies)
204Section LU 1 amended (Tax credits for mineral miners)
205Section MA 1 amended (What this Part does)
206Section MB 1 amended (Adjustments for calculation of family scheme income)
207Section MB 4 amended (Family scheme income of major shareholders in close companies)
208Section MB 7 amended (Family scheme income of settlor of trust)
209Section MB 9 repealed (Family scheme income from deposits in main income equalisation accounts)
210Section MB 13 amended (Family scheme income from other payments)
211Section MC 5 amended (Third requirement: residence)
212Section MF 6 amended (Overpayment or underpayment of tax credit)
213New subpart MX inserted (Tax credits for R&D tax losses)
Subpart MX—Tax credits for R&D tax losses
MX 1When subpart applies
MX 2Corporate eligibility criteria
MX 3Wage intensity criteria
MX 4R&D loss tax credits
MX 5Cancellation of R&D tax losses
MX 6Deduction if increase in basic tax rate for company
MX 7Reinstatement of R&D tax losses and R&D repayment tax
214Section OB 1 amended (General rules for companies with imputation credit accounts)
215New section OB 47B inserted (Tax paid by recipients of R&D loss tax credits)
OB 47BTax paid by recipients of R&D loss tax credits
216Table O2 amended (Imputation debits)
217Section OP 27 amended (Consolidated ICA payment of schedular income tax)
218Section OP 50 amended (Consolidated ICA refund of schedular income tax)
219Table O19 amended (Imputation credits of consolidated imputation groups)
220Table O20 amended (Imputation debits of consolidated imputation groups)
221Section RC 7 amended (Estimation method)
222Section RC 17 amended (When GST ratio must not be used)
223Section RC 18 amended (Changing calculation method)
224Section RD 27 amended (Determining fringe benefit values)
225Section RD 35 amended (Employment-related loans: value using market interest rates)
226Section RE 18B amended (Capital value increase under inflation-indexed instruments: RWT cap)
227Section RF 2 amended (Non-resident passive income)
228Section RM 10 amended (Using refund to satisfy tax liability)
229Section RP 17 amended (Tax pooling intermediaries)
230Section RP 17B amended (Tax pooling accounts and their use)
231Section RP 19 amended (Transfers from tax pooling accounts)
232Section RP 19B amended (Transfers for certain expected tax liabilities)
233New cross-heading inserted (Refunds for life insurers)
234New cross-heading (Tax pooling intermediaries) and section RZ 12 inserted (Adjustments to interest in requests made after commencement)
Tax pooling intermediaries
RZ 12Adjustments to interest in requests made after commencement
235Section YA 1 amended (Definitions)
236Section YC 10 amended (Shareholders holding less than 10% direct interests)
237Schedule 6 amended (Prescribed rates: PIE investments and retirement scheme contributions)
238Schedule 14 amended (Depreciable intangible property)
239New schedule 22 inserted (Proscribed R&D activities)
240Schedule 32 amended (Recipients of charitable or other public benefit gifts)
241New schedule 34 inserted (Community housing trusts and companies: income and assets of beneficiaries and clients)
242Amendments to certain sale-related terms and definitions
243Amendments to lists of defined terms
Part 4
Amendments to other enactments
Amendments to Tax Administration Act 1994
244Tax Administration Act 1994 amended
245Section 3 amended (Interpretation)
246Section 15E amended (Revocation of approval)
247Section 24O repealed (Certain information required from agricultural, horticultural, or viticultural employers)
248Section 33AA amended (Exceptions to requirement for return of income)
249Section 33A amended (Annual returns of income not required)
250Section 41 amended (Annual returns by persons who receive family assistance credit)
251Sections 68D, 68E, and 68F repealed
252New section 70C inserted (Statements in relation to R&D loss tax credits and R&D repayment tax)
70CStatements in relation to R&D loss tax credits and R&D repayment tax
253Section 80D amended (Commissioner must issue income statement)
254Section 80KV replaced (Statement of family scheme income)
80KVStatement of family scheme income
255Section 81 amended (Officers to maintain secrecy)
256Section 81A amended (Disclosure of information under approved information sharing agreement)
257Section 89AB amended (Response periods)
258New section 89AC inserted (Response period when initiating notice filed late)
89ACResponse period when initiating notice filed late
259Section 89M amended (Disclosure notices)
260Section 92AAA repealed (Determination on cost of timber)
261New section 97C inserted (Assessment of R&D repayment tax)
97CAssessment of R&D repayment tax
262Section 113C repealed (Amended assessments for attributed repatriation dividends)
263Section 120B amended (Persons excluded)
264Section 138G amended (Effect of disclosure notice)
265Section 139AA amended (Non-electronic filing penalty)
266Section 139B amended (Late payment penalty)
267Section 141A amended (Not taking reasonable care)
268Section 177D repealed (Relief to taxpayers to whom new start grants payable)
269Section 183ABA amended (Remission in circumstances of emergency event)
270Section 185 amended (Payment out of Crown Bank Account)
271Section 225D amended (Regulations: community housing trusts and companies)
Amendments to Goods and Services Tax Act 1985
272Goods and Services Tax Act 1985 amended
273Section 2 amended (Interpretation)
274Section 5 amended (Meaning of term supply)
275Section 10 amended (Value of supply of goods and services)
276Section 20 amended (Calculation of tax payable)
277Section 21B amended (Adjustments when person or partnership becomes registered after acquiring goods and services)
278Section 21HB amended (Transitional rules related to treatment of dwellings)
279New section 21HC inserted (Transitional rules relating to members of unit title bodies corporate)
21HCTransitional rules relating to members of unit title bodies corporate
280Section 48A repealed (Relief from tax where new start grant made)
281Section 51 amended (Persons making supplies in course of taxable activity to be registered)
282Section 52 amended (Cancellation of registration)
Amendments to Income Tax Act 2004
283Income Tax Act 2004 amended
284New section CF 4 inserted (Person deriving pension from foreign superannuation scheme and returning as income before 1 April 2014)
CF 4Person deriving pension from foreign superannuation scheme and returning as income before 1 April 2014
285Section DB 23 amended (Bad debts)
286Section HH 4 amended (Trustee income)
287Section NG 1 amended (Application of NRWT rules)
288Section OB 1 amended (Definitions)
Amendments to Income Tax Act 1994
289Income Tax Act 1994 amended
290New section CC 5 inserted (Person deriving pension from foreign superannuation scheme and returning as income before 1 April 2014)
CC 5Person deriving pension from foreign superannuation scheme and returning as income before 1 April 2014
291Section HH 4 amended (Trustee income)
292Section NG 1 amended (Application of NRWT rules)
293Section OB 1 amended (Definitions)
Amendments to Income Tax Act 1976
294Income Tax Act 1976 amended
295Section 226 amended (Interpretation)
296Section 228 amended (Trustee income)
Amendments to Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014
297Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 amended
298Section 32 amended (New section CW 42B inserted)
299Section 129 amended (New section HR 12 inserted)
Amendment to Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013
300Section 104 amended (Schedule 20 amended)
Amendment to Finance Act (No 2) 1990
301Section 3 of the Finance Act (No 2) 1990 amended (Meaning of approved unit trust)
Amendment to Goods and Services Tax (Grants and Subsidies) Order 1992
302Schedule to Goods and Services Tax (Grants and Subsidies) Order 1992 amended (Non-taxable grants and subsidies)
Schedule 1
New schedule 22 inserted
Schedule 2
New schedule 34 inserted
Schedule 3
Amendments to sale-related terms and definitions in Income Tax Act 2007
Schedule 4
Amendments to lists of defined terms in Income Tax Act 2007
Legislative history
Administrative information

The Parliament of New Zealand enacts as follows: