Taxation (Business Tax, Exchange of Information, and Remedial Matters) Bill

  • enacted

Hon Judith Collins

Taxation (Business Tax, Exchange of Information, and Remedial Matters) Bill

Government Bill

149—3

Contents

Key
1Title
2Commencement
Part 1
Exchange of information
Subpart 1—Amendments to Income Tax Act 2007
3Income Tax Act 2007 amended
4Section BH 1 amended (Double tax agreements)
4BSection HC 11 amended (Foreign trusts)
5Section HC 26 amended (Foreign-sourced amounts: resident trustees)
6Section YA 1 amended (Definitions)
Subpart 2—Amendments to Tax Administration Act 1994
7Tax Administration Act 1994 amended
8Section 3 amended (Interpretation)
9Section 22 amended (Keeping of business and other records)
10Section 59B replaced (Disclosure of foreign trust particulars)
59BForeign trust with resident foreign trustee: registration and disclosure
59CTime limits for registration and disclosure of changes
59DAnnual return for foreign trust
59EFees: regulations and exemption
11Section 81 amended (Officers to maintain secrecy)
11BSection 89C amended (Notices of proposed adjustment required to be issued by Commissioner)
11CSection 89P amended (Challenge notice for taxpayer-initiated disputes)
12New heading and sections 91AAU to 91AAW inserted
Determinations relating to foreign account information-sharing agreements
91AAUParticipating jurisdictions for CRS applied standard
91AAVSuspension of reportable jurisdictions for CRS applied standard
91AAWNon-reporting financial institutions and excluded accounts for CRS applied standard
12BSection 94A amended (Assessment of shortfall penalties)
12CNew section 94C inserted (Assessment of penalties under sections 142H and 142I)
94CAssessment of penalties under sections 142H and 142I
13New sections 142H and 142I inserted
142HFailures of financial institutions to meet requirements under Part 11B and CRS applied standard
142IFailures to meet requirements under Part 11B to provide information, including self-certifications
14Section 143 amended (Absolute liability offences)
15Section 143A amended (Knowledge offences)
16Section 185E amended (Purpose)
17New heading inserted after section 185E
18Section 185F amended (Permitted choices in relation to foreign account information-sharing agreements)
19Section 185G amended (Obligations related to foreign account information-sharing agreements: registration)
20Section 185H amended (Obligations related to foreign account information-sharing agreements: due diligence)
21Section 185I amended (Obligations related to foreign account information-sharing agreements: information for NZ competent authority)
22Section 185J amended (Obligations related to foreign account information-sharing agreements: information for third parties)
23Section 185L repealed (Foreign account information-sharing agreements: anti-avoidance)
24New headings and sections 185N to 185R inserted
CRS standard
185NRequirements for financial institution
185OApplication of Common Reporting Standard
Foreign account information-sharing agreements generally
185PRequirements for persons to provide information to financial institution
185QRequirements and penalties for entities that are not persons
185RForeign account information-sharing agreements: anti-avoidance
25New sections 226D and 226E inserted
226DReportable jurisdictions for CRS standard and Part 11B
226EApplication of changes to CRS standard
26New schedule 2 inserted (Application of CRS standard)
Part 2
Business tax: AIM provisional tax method
Subpart 1—Amendments to Income Tax Act 2007
27Income Tax Act 2007 amended
28Section LA 6 amended (Remaining refundable credits: PAYE, RWT, and certain other items)
29Section RA 14 amended (Payment dates for provisional tax)
30Section RC 1 amended (What this subpart does)
31Section RC 5 amended (Methods for calculating provisional tax liability)
32New section RC 7B inserted (AIM method)
RC 7BAIM method
33Section RC 9 amended (Provisional tax payable in instalments)
33BTable R1 amended (Summary of instalment dates and calculation methods for provisional tax)
34New section RC 10B inserted (Calculating amount of instalment for periods using AIM method)
RC 10BCalculating amount of instalment for periods using AIM method
35Section RC 24 amended (Calculating instalments in transitional years: GST ratio method)
36New section RM 6B inserted (Refunds for overpaid AIM method instalments)
RM 6BRefunds for overpaid AIM method instalments
36BRM 13 amended (Limits on refunds for ICA companies)
37Section RP 17 amended (Tax pooling intermediaries)
38Section RP 17B amended (Tax pooling accounts and their use)
39Section RP 19B amended (Transfers for certain expected tax liabilities)
40Section YA 1 amended (Definitions)
41Schedule 3 amended (Payment of provisional tax and terminal tax)
Subpart 2—Amendments to Tax Administration Act 1994
42Tax Administration Act 1994 amended
43Section 3 amended (Interpretation)
44New heading and sections 15U to 15Z inserted
AIM method
15UApproval of approved AIM providers
15VRevocation of approval of AIM providers: Commissioner
15WRevocation of approval of AIM providers: provider
15XPublication of approval, revocation, etc
15YAIM method: approval of large business AIM-capable system
15ZAIM method: approval of person over $5,000,000
45New sections 45 and 45B inserted
45AIM method information: taxpayers
45BAIM method information: approved AIM providers
46New heading and sections 91AAX to 91AAZ inserted
Determinations relating to AIM method
91AAXAccounting and rate determinations relating to AIM method
91AAYClass of taxpayers that must not use AIM method
91AAZAIM method information
47Section 119 amended (Commissioner may determine amount of provisional tax)
48New section 120KBC inserted (Interest for AIM method provisional taxpayers)
120KBCInterest for AIM method provisional taxpayers
49Section 120KC amended (Residual income tax of new provisional taxpayer)
50Section 120KE amended (Provisional tax and rules on use of money interest)
51New section 120LB inserted (Meaning of unpaid tax and overpaid tax for tax credit transferees under AIM method)
120LBMeaning of unpaid tax and overpaid tax for tax credit transferees under AIM method
52New section 120VB inserted (Interest on overpaid AIM method provisional tax)
120VBInterest on overpaid AIM method provisional tax
53Section 141 amended (Tax shortfalls)
54Section 141B amended (Unacceptable tax position)
Part 3
Business tax and remedial matters
Subpart 1—Amendments to Income Tax Act 2007
55Income Tax Act 2007 amended
55BSection CB 6A amended (Disposal within 2 years: bright-line test for residential land)
55CSection CB 15B amended (When land acquired)
55DSection CB 15B amended (When land acquired)
56Section CD 32 amended (Employee benefits)
57Section CE 2 amended (Value and timing of benefits under share purchase agreements)
58Section CX 6 amended (Private use of motor vehicle)
59Section CX 17 amended (Benefits provided to employees who are shareholders or investors)
60Section DB 7 amended (Interest: most companies need no nexus with income)
61Section DB 8 amended (Interest: money borrowed to acquire shares in group companies)
62New section DB 18AA inserted (Square metre rate method)
DB 18AASquare metre rate method
63Section DE 1 amended (What this subpart does)
64Section DE 2 amended (Deductions for business use)
65New section DE 2B inserted (Election to use kilometre rate method or costs method)
DE 2BElection to use kilometre rate method or costs method
66Section DE 3 amended (Methods for calculating proportion of business use)
67Section DE 4 amended (Default method for calculating proportion of business use)
68Heading and section DE 12 replaced
Kilometre rates
DE 12Kilometre rate method
69Section DF 4 amended (Payments for social rehabilitation)
70Section EA 4 amended (Deferred payment of employment income)
71Section EE 49 amended (Amount of depreciation recovery income when item partly used for business)
72Section HD 3 amended (Agent’s duties and liabilities)
74Section LB 7 amended (Tax credits related to personal service rehabilitation payments: providers)
75Section LB 8 amended (Tax credits related to personal service rehabilitation payments: payers)
76Section MD 9 amended (Fifth requirement: full-time earner)
81Table R1 amended (Summary of instalment dates and calculation methods for provisional tax)
83Section RD 3 amended (PAYE income payments)
84Section RD 6 amended (Certain benefits and payments)
85Section RD 7B amended (Treatment of certain benefits under employee share agreements)
86Section RD 8 amended (Schedular payments)
87Section RD 10 amended (Amounts of tax for PAYE income payments)
88New section RD 10B inserted (Amounts of tax for schedular payments)
RD 10BAmounts of tax for schedular payments
89Section RD 18 repealed (Schedular payments without notification)
90Section RD 60 amended (Close company option)
91Section RD 61 amended (Small business option)
91BSection RL 1 amended (Residential land withholding tax)
91CSection RL 2 amended (Vendors: who must pay, and how?)
91DSection RL 4 amended (How much RLWT?)
92Section YA 1 amended (Definitions)
93Schedule 4 amended (Rates of tax for schedular payments)
Subpart 2—Amendments to Tax Administration Act 1994
94Tax Administration Act 1994 amended
95Section 3 amended (Interpretation)
97Section 24G amended (Use of incorrect tax codes)
98Section 24L amended (Schedular notification)
99New sections 24LB and 24LC inserted
24LBSchedular tax rate elected by payee
24LCSchedular tax rate prescribed by Commissioner
100Section 24M amended (Exemption certificates for schedular payments)
101Section 32H amended (Providing RWT exemption certificate when person meets requirements)
101BSection 32I amended (Providing RWT exemption certificate to person who does not meet requirements)
101CSection 35 amended (Power of Commissioner to prescribe forms)
102BSection 54E amended (RLWT certificate of exemption)
103Section 81 amended (Officers to maintain secrecy)
104New sections 85M and 85N inserted
85MDisclosure of information relating to some offences to the Registrar of Companies
85NDisclosure of information to approved credit reporting agencies
105Section 113A amended (Correction of minor errors in subsequent returns)
106Section 120C amended (Definitions)
108Section 120KB amended (Provisional tax instalments and due dates generally)
109New section 120KBB inserted (Interest for most standard method and some estimation method provisional taxpayers)
120KBBInterest for most standard method and some estimation method provisional taxpayers
110Section 120KE amended (Provisional tax and rules on use of money interest)
111BNew section 120VC inserted (Interest on some provisional tax)
120VCInterest on some provisional tax
112Section 138E amended (Certain rights of challenge not conferred)
113Section 139B amended (Late payment penalty)
114Section 139B amended (Late payment penalty)
115Section 139BA amended (Imposition of late payment penalties when financial relief sought)
116Section 139C amended (Late payment penalty and provisional tax)
117Section 142A amended (New due date for payment of tax that is not a penalty)
118Section 142B amended (Due date for shortfall penalties)
119Section 173L amended (Transfer of excess tax within taxpayer’s accounts)
120Section 173M amended (Transfer of excess tax to another taxpayer)
120BSection 173S amended (Transfers of interest on overpaid tax)
120CSection 183C amended (Cancellation of interest)
120DNew section 227B (Regulations providing for transitional exemptions and other matters)
227BRegulations providing for transitional exemptions and other matters
Subpart 3—Amendments to other enactment
120EStudent Loan Scheme Act 2011 amended
120FSection 25 amended (Commissioner may treat certain borrowers as being physically in New Zealand)
121Section 27E amended (Commissioner may remove entity’s listing as charity)
122Schedule 1 amended (Conditions to borrower being treated as being physically in New Zealand)
1Definitions
9ACondition to government-funded full-time overseas study application
9BCondition to government-funded overseas internship application
Schedule
New schedule 2 inserted
Legislative history

The Parliament of New Zealand enacts as follows: