5A New section 79 substituted

• Section 79 is repealed and the following section substituted:

  “79 Persons who have had income tax deducted or withheld on earnings from employment overseas to be treated as resident and present in New Zealand

  • “(1) This section applies to any person who was employed outside New Zealand if, with respect to the person's period of employment, the person's employer (or other relevant person) makes—

    • “(a) PAYE income payments (as that term is used in the Income Tax Act 2007) from which the person, employer, or other relevant person must withhold an amount of tax under the PAYE rules as defined in that Act:

    • “(b) source deduction payments,—

      • “(i) as that term is used in the Income Tax Act 2004, from which the person, employer, or other relevant person must withhold an amount of tax under the PAYE rules as defined in that Act:

      • “(ii) as that term is used in the Income Tax Act 1994, from which the person, employer, or other relevant person must make a tax deduction under the PAYE rules as defined in that Act:

      • “(iii) as that term is used in the Income Tax Act 1976, from which the person, employer, or other relevant person must make a tax deduction under Part 11 of that Act:

      • “(iv) as that term is used in the Income Tax Assessment Act 1957, from which the person, employer, or other relevant person must make a tax deduction under Part 2 of that Act.

    “(2) This section applies in respect of a period of employment, whether or not the person's employer (or other relevant person) failed to pay an amount of tax deducted or withheld to the Commissioner of Inland Revenue if the chief executive is satisfied that—

    • “(a) the employer (or other relevant person) deducted or withheld tax under subsection (1); and

    • “(b) the person did not contribute to the employer's (or other relevant person's) failure to pay that tax to the Commissioner.

    “(3) For the purposes of satisfying the residential qualification for any benefit after the return to New Zealand, on or after 23 June 1987, of the person to whom this section applies or the spouse or partner or any child of that person,—

    • “(a) that person must be treated as being resident and present in New Zealand during the period to which this section applies:

    • “(b) if the spouse or partner or any child of that person was with the person during that period or any part of it, the spouse or partner or child must be treated as being resident and present in New Zealand during that period or that part of it, as the case may be:

    • “(c) any child of that person born outside New Zealand during that period must be treated as having been born in New Zealand.

    “(4) Nothing in subsection (3) may be construed to derogate from the provisions of section 77.”

6A Schedule 6 amended

• The proviso to item 1 of Schedule 6 is amended by inserting “receiving a supported living payment under section 40B” after “any beneficiary”.

6B Schedule 18 amended

• Part 1 of Schedule 18 is amended by inserting the following subparagraph after clause 2(b)(i):

  • “(ia) in the case of a sole parent, at the appropriate maximum rate in item 1(ba) or (c) of Schedule 9 as if Income Test 3 applied to that rate instead of Income Test 1; or”.

• (2) For the purpose of determining the residential qualifications of any person for any benefit on and after 23 June 1987, the principal Act must be read as if section 79 (as replaced by section 5A of this Act) had come into force on that date.

• (3) For the purposes of determining the validity of the rate of any supported living payment in the period beginning with 15 July 2013 and ending on the commencement of section 6A of this Act, the Social Security Act 1964 must be read as if the proviso to item 1 of Schedule 6 contained the words inserted by section 6A of this Act.

• (4) For the purposes of determining the validity of the rate of any accommodation supplement or any decision to refuse to grant an accommodation supplement on account of income in the period beginning with 15 July 2013 and ending on the commencement of section 6B of this Act, the Social Security Act 1964 must be read as if clause 2(b) of Part 1 of Schedule 18 contained subparagraph (ia) (as inserted by section 6B of this Act).

• (1AA) Section 79 of the principal Act (as replaced by section 5A of this Act)—

  • (a) does not apply in respect of any application, appeal, or proceedings of a kind specified in subsection (2) that alleged an invalidity in the assessment of whether a person was liable for the payment of income tax on earnings from employment outside New Zealand under section 79(1) of the principal Act and was made or filed, as the case may be, before 6 July 2013; and

  • (b) does not affect the rights of any person who made an application to which paragraph (a) applies, or was a party to an appeal or other proceedings to which paragraph (a) applies, under—

    • (i) any decision, or any judgment of a court, in relation to that application or appeal or those proceedings, as the case may be; or

    • (ii) any decision or judgment given on appeal from that decision or judgment.

9 Consequential amendments

• The Acts set out in the Schedule are consequentially amended in the manner set out in that schedule.

Schedule Acts consequentially amended

s 9

New Zealand Superannuation and Retirement Income Act 2001 (2001 No 84)

Section 26A(2)(c): omit “was (by virtue of section 79(1)(a) of the Social Security Act 1964) deemed to have been resident in New Zealand” and substitute “was treated under section 79(3)(a) of the Social Security Act 1964 as being resident and present in New Zealand”.

Section 26A(2)(d): omit “deemed by section 79(1)(a) of the Social Security Act 1964 to have been resident in New Zealand, the person was also (by virtue of section 79(1)(b) of the Social Security Act 1964) deemed to have been resident in New Zealand” and substitute “treated under section 79(3)(a) of the Social Security Act 1964 as being resident and present in New Zealand, the person was also (by virtue of section 79(3)(b) of the Social Security Act 1964) treated as being resident and present in New Zealand”.

War Pensions Act 1954 (1954 No 54)

Section 74JA(2)(c): omit “was (by virtue of section 79(1)(a) of the Social Security Act 1964) deemed to have been resident in New Zealand” and substitute “was treated under section 79(3)(a) of the Social Security Act 1964 as being resident and present in New Zealand”.

Section 74JA(2)(d): omit “deemed by section 79(1)(a) of the Social Security Act 1964 to have been resident in New Zealand, the person was also (by virtue of section 79(1)(b) of the Social Security Act 1964) deemed to have been resident in New Zealand” and substitute “treated under section 79(3)(a) of the Social Security Act 1964 as being resident and present in New Zealand, the person was also (by virtue of section 79(3)(b) of the Social Security Act 1964) treated as being resident and present in New Zealand”.