Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Bill

  • enacted

Hon David Parker

Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Bill

Government Bill

273—2

Contents

Commentary
Key
1Title
2Commencement
Part 1
Annual rates of income tax
3Annual rates of income tax for 2020–21 tax year
Part 2
Amendments to Income Tax Act 2007
4Income Tax Act 2007
4BSection BC 7 amended (Income tax liability of person with schedular income)
5Section CB 16A amended (Main home exclusion for disposal within 5 years)
6Section CB 16 amended (Residential exclusion from sections CB 6 to CB 11)
7Section CB 19 amended (Business exclusion from sections CB 6 to CB 11)
8New heading and section CC 14 inserted
IFRS leases
CC 14NZ IFRS 16 leases
9Section CD 1 amended (Dividend)
9BSection CD 43 amended (Available subscribed capital (ASC) amount)
10Section CE 6 amended (Trusts are nominees)
11New heading and section CH 13 inserted
Feasibility expenditure clawback
CH 13Feasibility expenditure clawback
11BSection CW 26C amended (Meaning of exempt ESS)
12Section CW 55BB amended (Minors’ income, to limited extent)
13Section CW 58 amended (Disposal of companies’ own shares)
13BSection CX 56 amended (Attributed income of certain investors in multi-rate PIEs)
13CSection CX 60 amended (Intra-group transactions)
14Section DB 23 amended (Cost of revenue account property)
15New heading and section DB 51C inserted
IFRS leases
DB 51CNZ IFRS 16 leases
15BSection DB 53 amended (Attributed PIE losses of certain investors)
16New heading and sections DB 66 and DB 67 inserted
Feasibility expenditure
DB 66Feasibility expenditure: spread deduction
DB 67Feasibility expenditure: immediate deduction
17Heading and section EB 24 repealed
18Section ED 3 amended (Part-year tax calculations for transfers: general insurance OCR)
19Section EE 40 amended (Transfer of depreciable property on or after 24 September 1997)
20Section EE 45 amended (Consideration for purposes of section EE 44)
21Section EJ 3 amended (Spreading forward of fertiliser expenditure)
22Section EJ 10 amended (Personal property lease payments)
23New section EJ 10B inserted (IFRS leases)
EJ 10BIFRS leases
24Section EL 2 amended (Outline of subpart: specific provisions)
25Section EL 3 amended (Definitions for this subpart)
26Section EW 15I amended (Mandatory use of yield to maturity method for some arrangements)
27Section EW 48 amended (Anti-avoidance provisions)
28Section EX 21 amended (Attributable CFC amount and net attributable CFC income or loss: calculation rules)
29Section EX 28 amended (Meaning of FIF)
30Section EY 5 amended (Part-year tax calculations)
31Section EY 7 amended (Meaning of claim)
32Section EY 11 amended (Superannuation schemes providing life insurance)
33New section EZ 4B inserted (Cattle destroyed because of Mycoplasma bovis: spreading)
EZ 4BCattle destroyed because of Mycoplasma bovis: spreading
34Section FE 2 amended (When this subpart applies)
35Section FE 6 amended (Apportionment of interest by excess debt entity)
36Section FE 12 amended (Calculation of debt percentages)
37Section FE 22 amended (Notional offshore investment)
37BSection FH 3 amended (Payments under financial instruments producing deduction without income)
37CSection FH 7 amended (Payments to person outside New Zealand producing deduction without income)
37DSection FH 12 amended (Offset of mismatch amounts against surplus assessable income)
38Section GB 20 amended (Arrangements involving petroleum and mineral mining)
38BSection GC 8 amended (Insufficient amount receivable by person)
38CSection GC 16 amended (Credit rating of borrower: other than insuring or lending person)
39Section GC 18 amended (Loan features disregarded by rules for transfer pricing arrangements)
40New heading and sections GC 20 and GC 21 inserted
Purchase price allocation
GC 20Effect of agreed purchase price allocation
GC 21Purchase price allocation required
GC 20Effect of purchase price allocation agreement
GC 21Purchase price allocation required: no agreement
40BSection HC 6 amended (Beneficiary income)
41Section HC 10 amended (Complying trusts)
42Section HC 24 amended (Trustees’ obligations)
43Section HC 27 amended (Who is a settlor?)
44Section HC 30 amended (Treatment of foreign trusts when settlor becomes resident)
44ASection HC 33 amended (Choosing to satisfy income tax liability of trustee)
44BSection HM 36B amended (Calculating PIE schedular tax adjustments for natural person investors)
44CSection HM 52 amended (Use of foreign tax credits by zero-rated and certain exiting investors)
44DSection HM 56 amended (Prescribed investor rates: schedular rates)
44ESection IZ 8 amended (Election to use net loss for 2019–20 or 2020–21 year as tax loss in preceding year)
44FSection LA 6 amended (Remaining refundable credits: PAYE, RWT, and certain other items)
44GSection LS 3 amended (Tax credits for zero-rated investors)
44HSection LS 4 amended (Tax credits for certain exiting investors)
45Section LY 5 amended (Eligible research and development expenditure)
46Section MD 12 amended (Calculation of parental tax credit)
47Section MF 7 amended (Orders in Council)
48Section OB 52 replaced (ICA imputation credit of consolidated imputation group)
OB 52ICA transfer to consolidated imputation group
49Table O2 amended (Imputation debits)
50Section OP 22 replaced (Consolidated ICA group company’s credit)
OP 22Consolidated ICA transfer from group company’s ICA
51Table O19 amended (Imputation credits of consolidated imputation groups)
52Section RA 1 amended (What this Part does)
53Section RC 5 amended (Methods for calculating provisional tax liability)
54Section RD 24 amended (Exemptions for non-resident contractors)
55Section RE 2 amended (Resident passive income)
56Section RE 10C amended (Obligations of custodial institutions in relation to certain payments of investment income)
57Section RF 2C amended (Meaning of non-resident financial arrangement income)
58Section YA 1 amended (Definitions)
59Schedule 21 amended (Excluded activities for research and development activities tax credits)
59Schedule 21 amended (Excluded activities for research and development activities tax credits)
60Schedule 21B amended (Expenditure or loss for research and development tax credits)
61Schedule 29 amended (Portfolio investment entities: listed investors)
62Schedule 32 amended (Recipients of charitable or other public benefit gifts)
63Schedule 36 amended (Government enterprises)
64Income Tax Act 2007: aligning nomenclature with Social Security Act 2018
65Other enactments: consequential amendments aligning nomenclature
Part 3
Amendments to other enactments
Tax Administration Act 1994
66Tax Administration Act 1994
67Section 3 amended (Interpretation)
68Section 4A amended (Construction of certain provisions)
69Section 17C amended (Commissioner’s powers in relation to documents)
70Section 25E amended (Who must provide investment income information to Commissioner)
71Section 25J amended (Information on attributed PIE income: non-locked-in funds
72Section 25K repealed (Information on attributed PIE income; locked-in funds)
73Section 25MB amended (Information from custodial institutions)
74Section 57B amended (Return requirements for multi-rate PIEs)
75Section 61 amended (Disclosure of interest in foreign company or foreign investment fund)
76Section 68CC amended (Research and development tax credits: greater than $2 million approval)
77Section 89D amended (Taxpayers and others with standing may issue notices of proposed adjustment)
78Section 89DA amended (Taxpayer may issue notice of proposed adjustment for taxpayer assessment)
78BSection 91C amended (Taxation laws in respect of which binding rulings may be made)
79Section 108 amended (Time bar for amendment of income tax assessment)
80Section 120B amended (Persons excluded)
80BSection 120KBB amended (Interest for most standard method and some estimation method provisional taxpayers)
81Section 139A amended (Late filing penalty for certain returns)
82Section 139AB amended (Penalty for member of large multinational group failing to provide information)
83Section 157 amended (Deduction of tax from payments due to defaulters)
83BNew section 173V inserted (Transfer of unclaimed money on request)
173VTransfer of unclaimed money on request
83CSection 184A amended (Refund of tax paid in excess made by direct credit to bank account)
83DSchedule 1 amended (Inland Revenue Acts)
83ESchedule 7 amended (Disclosure rules)
84Schedule 8 amended (Reporting of income information by individuals and treatment of certain amounts)
Goods and Services Tax Act 1985
85Goods and Services Tax Act 1985
86Section 2 amended (Interpretation)
87Section 8 amended (Imposition of goods and services tax on supply)
88Section 11 amended (Zero-rating of goods)
89Section 11AB amended (Zero-rating of telecommunications services)
90Section 25 amended (Credit and debit notes)
91Section 51 amended (Persons making supplies in course of taxable activity to be registered)
Student Loan Scheme Act 2011
92AStudent Loan Scheme Act 2011
92Section 34 amended (Repayment codes for New Zealand-based borrowers who derive salary or wages)
92BSection 208 amended (Disclosure of information between Inland Revenue Department and New Zealand Customs Service for information-matching purposes)
KiwiSaver Act 2006
93AKiwiSaver Act 2006
93Section 4 amended (Interpretation)
93BSection 83 amended (Unclaimed money held by Commissioner)
Companies Act 1993
94Section 53 amended (Dividends)
Land Transfer Act 2017
95Land Transfer Act 2017
96Section 77 amended (Interpretation)
97Section 79 replaced (Content of tax statement)
79Content of tax statement
97BNew section 82A inserted (Chief executive must supply tax information to Statistician)
82AChief executive must supply tax information to Statistician
98Section 83 amended (Other provisions concerning use of tax information)
98BSection 85 amended (Status of tax information)
98CSection 86 amended (Disclosure of information between authorised persons)
99Section 227 amended (Regulations)
100Schedule 1 amended
Unclaimed Money Act 1971
100BUnclaimed Money Act 1971
100CSection 2 amended (Interpretation)
100DSection 4 replaced (Unclaimed money)
4Meaning of unclaimed money
100ESection 5 amended (Holder)
100FNew section 5B inserted (Obligations of holders)
5BObligations of holders
100GSections 6 and 7 repealed
100HSection 8 amended (Payment of unclaimed money to Commissioner)
100ISection 9 amended (Special arrangements may be made by Commissioner)
100JSection 10 amended (Examination of accounts)
100KSection 11 amended (Commissioner may make payment to claimant)
100LNew section 11B inserted (Capacity of trustees)
11BCapacity of trustees
100MSection 12 repealed (Officers to maintain secrecy)
100NSection 13 amended (Offences)
100OSchedule repealed
Taxation (Disclosure of Information to Approved Credit Reporting Agencies) Regulations 2017
101Regulation 3 amended (Reportable unpaid tax threshold)
COVID-19 Response (Taxation and Social Assistance Urgent Measures) Act 2020
102Section 4 amended (Section DB 65 repealed)
Schedule 1
Income Tax Act 2007: aligning nomenclature with Social Security Act 2018
Schedule 2
Other enactments: consequential amendments aligning nomenclature
Legislative history

The Parliament of New Zealand enacts as follows: