Taxation (Transformation: First Phase Simplification and Other Measures) Bill

  • enacted

Hon Michael Woodhouse

Taxation (Transformation: First Phase Simplification and Other Measures) Bill

Government Bill

41—3

Contents

Key
1Title
2 Commencement
Part 1
Amendments to Income Tax Act 2007
3Income Tax Act 2007 amended
4Section BF 1 amended (Other obligations)
5Section CB 8 amended (Disposal: land used for landfill, if notice of election)
6Section CB 28 amended (Environmental restoration accounts)
7Section CD 34B amended (Distributions to members of co-operative companies)
7BSection CE 2 amended (Value and timing of benefits under share purchase agreements)
7CSection CX 55 amended (Proceeds from disposal of investment shares)
8Section CZ 25 amended (Land and buildings as revenue account property affected by Canterbury earthquakes and replaced—insurance or compensation, Government purchase)
8BSection CZ 26 amended (Land and buildings affected by Canterbury earthquakes—sections CB 9 to CB 11 and CB 14 overridden for Crown purchases)
9Section DQ 4 amended (Environmental restoration accounts scheme)
10Section EC 7 amended (Valuation methods)
11Section EC 46 amended (Use of bloodstock for racing)
12Section EC 48 amended (Replacement breeding stock)
13Section EG 1 amended (Election to use balance date used in foreign country)
14Section EH 12 amended (Application for refund by person, trustee of estate, Official Assignee, or liquidator)
15Section EH 13 amended (Refund on request)
16Section EH 14 amended (Income when refund given on request)
17Section EH 44 amended (Application for refund by person, trustee of estate, Official Assignee, or liquidator)
18Section EH 45 amended (Refund on request)
19Section EH 46 amended (Income when refund given on request)
20Section EH 70 amended (Application for refund by person or liquidator)
21Section EH 71 amended (Refund on request)
22Section EH 72 amended (Income when refund given on request)
23Section EI 1 amended (Spreading backward of income from timber)
24Section EI 3 amended (Assigning or granting copyright)
25Section EI 8 amended (Disposal of land to the Crown)
26Section EK 11 amended (Application for refund)
27Section EK 12 amended (Refund if request or excess balance)
28Section EK 13 amended (Income when refund given on request)
29Section EK 14 amended (Application for transfer)
30Section EK 15 amended (Transfer on request)
31Section EK 16 amended (Transfer on death, bankruptcy, or liquidation)
32Section EW 15E amended (Determination alternatives)
33Section EW 26 (Change of spreading method)
34Section EW 33B amended (Foreign ASAPs: designated FX hedges)
35Section EX 31 amended (Exemption for ASX-listed Australian companies)
36Section EY 11 amended (Superannuation schemes providing life insurance)
37Section EY 49 amended (Non-resident life insurer becoming resident)
38Section EZ 23B amended (Property acquired after depreciable property affected by Canterbury earthquakes)
39Section EZ 23BB amended (Interest in property acquired after depreciable property affected by Canterbury earthquakes)
40Section EZ 35 amended (Accruals in relation to income and expenditure in respect of financial arrangements)
41Section EZ 52B amended (Consistency of use of IFRS method: Determination G3 change allowed)
42Section FE 18 (Measurement of debts and assets of worldwide group)
43Section FM 4 amended (Limiting joint and several liability of group companies)
44Section GC 11 amended (Requests for matching treatment)
45Section HB 13 amended (LTC elections)
46Section LF 8 amended (Credits for persons who are non-resident or who receive exempt income)
47Heading and sections LZ 9 to LZ 12 repealed
48Section RC 8 amended (GST ratio method)
49Section RC 17 amended (When GST ratio must not be used)
50Section RC 18 amended (Changing calculation method)
51Section RC 19 amended (Disposal of assets)
52Section RD 6 amended (Certain benefits and payments)
53Section RD 7 amended (Extra pay)
54New section RD 7B inserted (Treatment of certain benefits under employee share agreements)
RD 7BTreatment of certain benefits under employee share agreements
55Section RD 30 amended (Private use of motor vehicle: 24-hour period)
56Section RD 60 amended (Close company option)
57Section RD 61 amended (Small business option)
58Section RD 68 amended (Choosing to have amount treated as salary or wages)
59Section RM 5 amended (Overpayment on income statements)
60Section RM 12 amended (Reduction in provisional tax liability)
61Section RM 21 amended (Refunds when loss balances used to reduce net income)
62Section RP 17B amended (Tax pooling accounts and their use)
63Section RP 19 amended (Transfers from tax pooling accounts)
64Section RP 19B amended (Transfers for certain expected tax liabilities)
65Section RP 20 amended (Declining, amending, or reversing transfers)
66Section RP 21 amended (Refunds from tax pooling accounts)
67Heading and sections RZ 7 to RZ 10 repealed
68Section YA 1 amended (Definitions)
69New section YA 4 inserted (General rules for giving information or communicating matters)
YA 4General rules for giving information or communicating matters
69ABNew section YZ 4 (Saving of effect of certain terms defined in Canterbury Earthquake Recovery Act 2011
YZ 4Saving of effect of certain terms defined in Canterbury Earthquake Recovery Act 2011
69BIncome Tax Act 2007: insertion of items in lists of defined terms
Part 2
Amendments to Tax Administration Act 1994
70Tax Administration Act 1994 amended
71Section 3 amended (Interpretation)
72Section 13 amended (Proof of signature of Commissioner)
73New section 13B inserted (Use of electronic signatures for tax administration purposes)
13BUse of electronic signatures for tax administration purposes
74Sections 14, 14B, and 14C replaced
14Modes of communication: general provisions
14BAsking, requesting, or informing
14CApplying or notifying
14DFormally notifying
14EOverriding provisions
14FGiving information by personal delivery, post, fax, or electronic means
14GContact addresses
75Section 15P amended (Role of Commissioner)
76Section 17 amended (Information to be furnished on request of Commissioner)
77Section 17A amended (Court orders for production of information or return)
78Section 20 amended (Privilege for confidential communications between legal practitioners and their clients)
79Section 20C amended (Treatment of document)
80Section 20D amended (Claim that document is tax advice document)
81Section 21 amended (Information requisitions in relation to offshore payments)
82Section 22 amended (Keeping of business and other records)
83Section 24B amended (PAYE tax codes)
84Section 24F amended (Special tax code certificates)
85Section 24H amended (When entitlement to use tax code ends)
86Section 24I amended (PAYE tax code notification and certificate)
87New section 24IB inserted (Special tax code notification)
24IBSpecial tax code notification
88Section 25 amended (RWT withholding certificates)
89Section 26 amended (Records to be kept for RWT purposes)
90Section 27 amended (Provision of tax file numbers)
91Section 28 amended (Recipient of resident passive income to provide tax file number when RWT not withheld)
92Section 28B amended (Notification of investors’ tax rates)
93Section 29 amended (Shareholder dividend statement to be provided by company)
94Section 31 amended (Maori authority to give notice of amounts distributed)
95Section 32 amended (Records of specified charitable, benevolent, philanthropic, or cultural bodies)
96Section 32A amended (Records to be provided by employer who contributes to superannuation fund)
97Section 32D amended (Disclosure requirements for purpose of continuity provisions and public unit trusts)
98Section 32E amended (Applications for RWT exemption certificates)
99Section 32I amended (Providing RWT exemption certificate to person who does not meet requirements)
100Section 32M amended (Persons with approved issuer status)
101Section 33AA amended (Exceptions to requirement for return of income)
102Section 33A amended (Annual returns of income not required)
103Section 34B amended (Commissioner to list tax agents)
104Section 38 amended (Returns to annual balance date)
105Section 40 amended (General requirements for returns)
106Section 41B amended (Return by person applying for tax credit on redundancy payment)
107Section 43A amended (Non-active companies may be excused from filing returns)
108Section 44D amended (Natural product dealer certificate)
109Section 46 amended (Employers to make returns as to employees)
110Section 46A amended (Accident Rehabilitation and Compensation Insurance Corporation to provide information as to recipients of weekly compensation)
111Section 56 repealed (Returns of special accounts)
112Section 58 amended (Returns of specified charitable, benevolent, philanthropic, or cultural bodies)
113Section 63 amended (Commissioner to be notified of bonus issue)
114Section 80F amended (Taxpayer obligations and assessment on receipt of income statement)
115Section 80G amended (Income statement deemed return)
116Section 80H amended (Income statement deemed assessment)
117Section 81 amended (Officers to maintain secrecy)
118Section 82A amended (Disclosure of information to prevent cessation of benefit payments)
119Section 83 amended (Disclosure of information for purposes of entitlement card)
120Section 85C amended (Use and supply of information supplied for purposes of section 85B)
121Section 85E amended (Disclosure of information for assessment of levies)
122Section 87 amended (Further secrecy requirements)
123Section 89 amended (Commissioner to inform Minister where funds of gift-exempt body applied for non-charitable purpose, etc)
124Section 89F amended (Content of notice of proposed adjustment)
125Section 89H amended (Deemed acceptance)
126Section 89I amended (Circumstances where disputant may not challenge adjustment)
127Section 89M amended (Disclosure notices)
128Section 89N amended (Completing the disputes process)
129Section 89O amended (Test cases)
130Section 90AC amended (Determinations relating to financial arrangements)
131Section 90AE amended (Four-year period in which determination not required to be applied)
132Section 91AAG amended (Determination on special rates and provisional rates)
133Section 91AAL amended (Determination on maximum pooling value)
134Section 91AAN amended (Determinations on rates for diminishing value of environmental expenditure)
135Section 91AAQ amended (Determination on insurer as non-attributing active CFC)
136Section 91DD amended (Extension of a public ruling)
137Section 91E amended (Commissioner to make private rulings on request)
138Section 91EB amended (Application of a private ruling)
139Section 91EC amended (Applying for a private ruling)
140Section 91EE amended (Commissioner may request further information)
141Section 91EG amended (Right to consultation)
142Section 91EH amended (Content and notification of a private ruling)
143Section 91EI amended (Withdrawal of a private ruling)
145Section 91FB amended (Application of a product ruling)
146Section 91FE amended (Commissioner may request further information)
147Section 91FG amended (Right to consultation)
148Section 91FH amended (Content and notification of a product ruling)
149Section 91GB amended (Commissioner to make status rulings on request)
150Section 91GD amended (Commissioner may request further information)
151Section 91GE amended (Right to consultation)
152Section 91GG amended (Notification of status ruling)
153Section 95 repealed (Assessment of withdrawal tax)
154Section 106 amended (Assessment where default made in furnishing returns)
155Section 108B amended (Extension of time bars)
157Section 120KE amended (Provisional tax and rules on use of money interest)
158Section 124A amended (Application of Part 8)
159Section 126 amended (Procedure for objections to assessments)
160Section 130 amended (Objections to allowance determinations)
161Section 136 amended (When objection may be referred directly to High Court)
162Section 137 amended (Test case procedure)
163Section 138B amended (When disputant entitled to challenge assessment)
164Section 138R amended (Stay of proceedings for similar cases)
165Section 139BA amended (Imposition of late payment penalties when financial relief sought)
166Section 141JA amended (Application of Part 9 to non-filing taxpayers)
167Section 141L amended (Duty of Commissioner to report on application of penalties)
168Section 150D amended (Evidence in proceedings for failure to furnish returns or information)
169Section 157 amended (Deduction of tax from payments due to defaulters)
170Section 159 amended (Procedure in District Court where defendant absent from New Zealand)
171Section 177 amended (Taxpayer may apply for financial relief)
172Section 177A amended (How to apply serious hardship provisions)
173Section 183CA amended (Cancellation of interest charged on unpaid provisional tax)
173BSection 183CB amended (Cancellation of interest charged on payments under PAYE rules or provisional tax rules arising from work in Canterbury earthquake recovery programme)
174Section 183H amended (Remission on application)
175Section 184 amended (Refund of tax paid on income subsequently exempted by Order in Council)
176Section 226B amended (Business group amnesties)
Part 3
Amendments to other enactments
Amendments to Goods and Services Tax Act 1985
177Goods and Services Tax Act 1985 amended
177BSection 2 amended (Interpretation)
178Section 5 amended (Meaning of term supply)
179Section 8 amended (Imposition of goods and services tax on supply)
180Section 11 amended (Zero-rating of goods)
181Section 14 amended (Exempt supplies)
182Section 19 amended (Accounting basis)
183Section 19A amended (Requirements for accounting on payments basis)
184Section 25 amended (Credit and debit notes)
185Section 43 amended (Deduction of tax from payment due to defaulters)
186Section 51 amended (Persons making supplies in course of taxable activity to be registered)
187Section 51B amended (Persons treated as registered)
188Section 52 amended (Cancellation of registration)
189Section 53 amended (Registered person to notify change of status)
190Section 55 amended (Group of companies)
191Section 56 amended (Branches and divisions)
192Section 57 amended (Unincorporated bodies)
193Section 58 amended (Personal representative, liquidator, receiver, etc)
194Section 60 amended (Agents and auctioneers)
195Section 60B amended (Nominated recipients of supplies)
196Section 75 amended (Keeping of records)
197New section 75B inserted (General rules for giving information or communicating matters)
75BGeneral rules for giving information or communicating matters
198Section 78A amended (Returns to be furnished in 2 parts for taxable period in which change in rate of tax occurs)
199Section 78BA amended (Adjustments to tax payable in relation to credit and debit notes following change in rate of tax)
200Section 78E amended (Alteration of agreed price in relation to supply mistakenly believed to be of a going concern)
201Section 78F amended (Liability in relation to supplies of land)
202Section 86 amended (Alternative method of accounting for transitional supplies)
Amendments to KiwiSaver Act 2006
203KiwiSaver Act 2006 amended
204Section 4 amended (Interpretation)
205Section 10 replaced (Who automatic enrolment rules apply to)
10Who automatic enrolment rules apply to
206Section 18 amended (Extension of opt-out period)
207Section 59A amended (When this subpart applies)
208Section 59B amended (Initial back-dated validation)
209Section 59C amended (Confirmed back-dated validation)
210New section 59CB inserted (Confirmed back-dated validation for those under 18 years at time of enrolment or opt-in)
59CBConfirmed back-dated validation for those under 18 years at time of enrolment or opt-in
211Section 59D amended (What happens when initial back-dated validation ends, with no confirmed back-dated validation?)
212Section 217 amended (Giving of notices by and to Commissioner)
213Section 220B replaced (Information sharing)
220BInformation sharing
Amendments to Child Support Act 1991
214Child Support Act 1991 amended
215Section 9 amended (Social security beneficiaries must apply for formula assessment)
216Section 122 amended (Social security beneficiary to be compellable witness against liable parent)
217Section 156 amended (Copy of deduction notice to be given to liable person)
Amendments to Student Loan Scheme Act 2011
218Student Loan Scheme Act 2011 amended
219Section 50 amended (Procedures for issue of additional deduction rate notice)
220Section 214 amended (Notice requirements of Tax Administration Act 1994 do not apply)
Amendment to Gaming Duties Act 1971
221Section 12L of Gaming Duties Act 1971 amended (Deduction of duty from payments due to defaulters)
Amendment to Accident Compensation Act 2001
221BAccident Compensation Act 2001 amended
222Section 11 amended (Earnings as an employee: what it does not include)
223Section 15 amended (Earnings as a shareholder-employee)
Schedule
Income Tax Act 2007: insertion of items in lists of defined terms
Legislative history

The Parliament of New Zealand enacts as follows: