Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Bill (No 2)

Hon David Parker

Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Bill (No 2)

Government Bill

164—1

Contents

Explanatory note
1Title
2Commencement
3Annual rates of income tax for 2022–23 tax year
4Amendments to Income Tax Act 2007
5Section AA 1 amended (Purpose of Act)
6Section CB 6A amended (Disposal within 10 years: Bright-line test for residential land)
7Section CB 6AB amended (Residential land transferred in relation to certain family trusts and other capacities)
8Section CB 6AC amended (Residential land transferred in relation to certain Māori family trusts)
9Section CB 16A amended (Main home exclusion for disposal within 10 years)
10Section CD 1 amended (Dividend)
11Section CD 14 amended (Notional distributions of emigrating companies)
12Section CD 15 amended (Tax credits linked to dividends)
13Section CD 26 amended (Capital distributions on liquidation or emigration)
14Section CD 36 amended (Foreign investment fund income)
15Section CD 43 amended (Available subscribed capital (ASC) amount)
16Section CE 1 amended (Amounts derived in connection with employment)
17New section CE 1F inserted (Treatment of amounts derived by cross-border employees)
CE 1FTreatment of amounts derived by cross-border employees
18Section CE 1F amended (Treatment of amounts derived by cross-border employees)
19Section CQ 5 amended (When FIF income arises)
20Section CR 4 amended (Income for general insurance outstanding claims reserve)
21Section CV 12 amended (Trustees: amounts received after person’s death)
22Section CW 10 amended (Dividend within New Zealand wholly-owned group)
23Section CX 9 amended (Subsidised transport)
24Section CX 10 amended (Employment-related loans)
25Section CX 13 amended (Contribution to superannuation schemes)
26Section CX 14 amended (Contributions to sickness, accident, or death benefit funds)
27New section CX 19C inserted (Certain public transport)
CX 19CCertain public transport
28Section CX 26 amended (Non-liable payments)
29Section CX 35 amended (Meaning of employee share loan)
30Section CX 47 amended (Government grants to businesses)
31Section CX 57B amended (Amounts derived during periods covered by calculation methods)
32Section CZ 39 amended (Disposal within 5 years: bright-line test for residential land: acquisition on or after 29 March 2018)
33Section DB 53 amended (Attributed PIE losses of certain investors)
34New heading and new section DB 68 inserted
DB 68Amounts paid for utilities distribution assets
35Section DD 11 amended (Some definitions)
36Section DF 1 amended (Government grants to businesses)
37Section DG 5 amended (Meaning and treatment of interest expenditure for this subpart)
38Section DG 11 amended (Interest expenditure: close companies)
39Section DH 6 amended (Interposed residential property percentage)
40Section DH 7 amended (Grandparented residential interest)
41Section DH 9 repealed (Exception to limited denial of deductions: loans denominated in foreign currencies)
42Section DH 12 amended (Valuation)
43Section DN 6 amended (When FIF loss arises)
44Section DW 4 amended (Deduction for general insurance outstanding claims reserve)
45Section EE 6 amended (What is depreciable property?)
46Section EE 7 amended (What is not depreciable property?)
47Section EE 31 amended (Annual rate for item acquired in person’s 1995–96 or later income year)
48Section EW 15D amended (IFRS financial reporting method)
49Section EW 46C amended (Consideration when debt remitted within economic group)
50New section EW 46D inserted (Consideration when insolvent company’s debt repaid with consideration received for issuing shares)
EW 46DConsideration when insolvent company’s debt repaid with consideration received for issuing shares
51Section EX 20B amended (Attributable CFC amount)
52Section EX 20C amended (Net attributable CFC income or loss)
53Section EX 38 amended (Exemptions for employee share schemes)
54Section EX 46 amended (Limits on choice of calculation methods)
55Section EX 52 amended (Fair dividend rate annual method)
56Section EX 53 amended (Fair dividend rate periodic method)
57Section EX 59 amended (Codes: comparative value method, deemed rate of return method, fair dividend rate method, and cost method)
58Section EY 24 amended (Outstanding claims reserving amount: non-participation policies not annuities)
59Section FC 9 amended (Residential land transferred to executor, administrator, or beneficiary on death of person)
60Section FL 1 amended (What this subpart does)
61Section FL 2 replaced (Treatment of emigrating companies and their shareholders)
FL 2Treatment of companies that become non-resident and their shareholders
62New section FL 3 inserted (Treatment of companies that start being treated as non-resident and their shareholders)
FL 3Treatment of companies that start being treated as non-resident and their shareholders
63Section FM 31 amended (Eligibility rules)
64Section FN 4 amended (Eligibility rules)
65Section GB 28 amended (Interpretation of terms used in section GB 27)
66Section GC 13 amended (Calculation of arm’s length amounts)
67Section HA 7 amended (Shareholding requirements)
68Section HB 13 amended (LTC elections)
69Section HC 8 amended (Amounts received after person’s death)
70Section HC 26 amended (Foreign-sourced amounts: resident trustees)
71Section HC 36 amended (Trusts and minor beneficiary rule)
72Section HM 35 amended (Determining net amounts and taxable amounts)
73Section HM 40 replaced (Deductions for attributed PIE losses for zero-rated and exiting investors)
HM 40Deductions for attributed PIE losses for zero-rated and exiting investors equal to amount attributed
74Section HR 12 amended (Non-exempt charities: treatment of tax-exempt accumulations)
75New section IB 2B inserted (When subsequent ownership continuity breach regarded as occurring)
IB 2BWhen subsequent ownership continuity breach regarded as occurring
76Section IC 4 amended (Common ownership: wholly-owned groups of companies)
77Section IC 5 amended (Company B using company A’s tax loss)
78Section IC 7 amended (Residence of company A)
79New section IZ 7B inserted (Grouping tax losses for commonality periods starting before 15 March 2017 for tax years after 1990–91)
IZ 7BGrouping tax losses for commonality periods starting before 15 March 2017 for tax years after 1990–91
80Section LE 5 amended (Beneficiaries of trusts)
81Section LK 1 amended (Tax credits relating to attributed CFC income)
82Section LT 1 amended (Tax credits for petroleum miners)
83Section OB 2 amended (Australian companies choosing to have imputation credit accounts)
84Section OB 62 amended (Retrospective attachment of imputation credits)
85Section RA 6 amended (Withholding and payment obligations for passive income)
86Section RA 15 amended (Payment dates for interim and other tax payments)
87Section RA 18 amended (Payment date for emigrating companies)
88Section RC 5 amended (Methods for calculating provisional tax liability)
89Section RD 5 amended (Salary or wages)
90Section RD 8 amended (Schedular payments)
91Section RD 23 repealed (Bonds given by employers of certain non-resident employees)
92Section RD 24 amended (Exemptions for non-resident contractors)
93New section RD 62B inserted (Obligations of cross-border employees when FBT liability not paid)
RD 62BObligations of cross-border employees when FBT liability not paid
94New section RD 71B inserted (Obligations of cross-border employees when amounts of tax not paid)
RD 71BObligations of cross-border employees when amounts of tax not paid
95Section RF 2 amended (Non-resident passive income)
96Section RF 2C amended (Meaning of non-resident financial arrangement income)
97Section RF 12G amended (Choosing to treat income as non-resident financial arrangement income)
98Section YA 1 amended (Definitions)
99Section YB 4 amended (Two relatives)
100Schedule 15 amended (Excepted residential land)
101Schedule 32 amended (Recipients of charitable or other public benefit gifts)
102Amendments to Goods and Services Tax Act 1985
103Section 2 amended (Interpretation)
104Section 2A amended (Meaning of associated persons)
105Section 5 amended (Meaning of term supply)
106Section 8 amended (Imposition of goods and services tax on supply)
107Section 8B amended (Remote services: determining residence of recipients)
108Section 8BB amended (Certain supplies by non-residents: determining whether recipient is registered person)
109New section 8C inserted (Supplies of listed services)
8CSupplies of listed services
110Section 9 amended (Time of supply)
111Section 10 amended (Value of supply of goods and services)
112Section 11 amended (Zero-rating of goods)
113Section 14 amended (Exempt supplies)
114Section 15 amended (Taxable periods)
115Section 19K amended (Taxable supply information: supplies by registered person)
116Section 20 amended (Calculation of tax payable)
117Section 20G repealed (Treatment of supplies of certain assets)
118Section 21 amended (Adjustments for apportioned supplies)
119Section 21B amended (Adjustments when person or partnership becomes registered after acquiring goods and services)
120Section 21D amended (Calculating amount of adjustment)
121Section 21F amended (Treatment on disposal)
122Section 21FB replaced and amended (Treatment when use changes to total taxable or non-taxable use)
21FBTreatment when percentage of taxable use permanently changes
123Section 21G amended (Definitions and requirements for apportioned supplies and adjustment periods)
124Section 21HB amended (Transitional rules related to treatment of dwellings)
125Section 26AA amended (Marketplace operators: bad debts for amounts of tax)
126Section 51 amended (Persons making supplies in course of taxable activity to be registered)
127Section 58 amended (Personal representative, liquidator, receiver, etc)
128Section 60 amended (Agents and auctioneers)
129Section 60C amended (Electronic marketplaces)
130New section 60H inserted (Information requirements for underlying suppliers operating through electronic marketplaces)
60HInformation requirements for underlying suppliers operating through electronic marketplaces
131Section 75 amended (Keeping of records)
132Section 77 amended (New Zealand or foreign currency)
133New section 81B inserted (Limitation on amending assessments for legislative charges)
81BLimitation on amending assessments for legislative charges
134New section 85D inserted (Transitional provision for certain supplies of listed services)
85DTransitional provision for certain supplies of listed services
135New section 90 inserted and repealed (Transitional regulation making power: legislative charges)
90Transitional regulation making power: legislative charges
136New section 91 inserted (Certain private goods removed from tax base before 1 April 2025)
91Certain private goods removed from tax base before 1 April 2025
137New schedule inserted (Non-taxable legislative charges)
138Amendments to the Tax Administration Act 1994
139Section 3 amended (Interpretation)
140Section 4A amended (Construction of certain provisions)
141Section 22 amended (Keeping of business and other records)
142Section 23I amended (Employment income information requirements for employees)
143New subpart heading and section 23R inserted
23RInformation reporting: schedular payments made to non-resident contractors
144Section 24H amended (Exempt schedular payments)
145New section 24HB inserted (Schedular payments: tax obligations undertaken by nominated persons)
24HBSchedular payments: tax obligations undertaken by nominated persons
146Section 25E amended (Who must provide investment income information to Commissioner)
147Section 25G amended (Information on dividends)
148Section 29 amended (Shareholder dividend statement to be provided by company)
149Section 43B amended (Trustees of non-active trusts and administrators or executors of non-active estates may be excused from filing returns)
150Section 59BA amended (Annual return for trusts)
151Section 59B amended (Foreign trust with resident foreign trustee: registration and disclosure)
152Section 59C amended (Time limits for registration and disclosure of changes)
153Section 59D amended (Annual return for foreign trust)
154New section 59DB inserted (Deregistration of foreign exemption trusts)
59DBDeregistration of foreign exemption trusts
155Section 59E amended (Fees: regulations and exemption)
156New section 61B inserted (Disclosure requirements for high-value assets intended to be used in making taxable supplies)
61BDisclosure requirements for high-value assets intended to be used in making taxable supplies
157Section 68CB amended (Research and development tax credits: general approval)
158Section 68CC amended (Research and development tax credits: greater than $2 million approval)
159Section 89AB amended (Response periods)
160Section 89C amended (Notices of proposed adjustment required to be issued by Commissioner)
161Section 91C amended (Taxation laws in respect of which binding rulings may be made)
162New section 94D inserted (Assessment of penalties related to requirements under model rules)
94DAssessment of penalties related to requirements under model rules
163New section 108AC inserted (Time bar for amending assessment of student loan deductions)
108ACTime bar for amending assessment of student loan deductions
164Section 120B amended (Persons excluded)
165Section 124G amended (Refusal, removal, or disallowance of status of tax agents, representatives, and nominated persons)
166Section 139A amended (Late filing penalty for certain returns)
167New section 139AC inserted (Penalty for trustee’s failure to register, provide information for, foreign exemption trust)
139ACPenalty for trustee’s failure to register, provide information for, foreign exemption trust
168Section 141 amended (Tax shortfalls)
169Section 141ED amended (Penalty for unpaid amounts of employers’ withholding payments)
170New section 141GC inserted (Grace periods for certain schedular payments)
141GCGrace periods for certain schedular payments
171Section 142B amended (Due date for shortfall penalties)
172New sections 142J and 142K inserted
142JWhen reporting requirements for operators under model rules for digital platforms not met
142KWhen reporting requirements for sellers operating on digital platforms not met
173Section 143 amended (Absolute liability offences and strict liability offences)
174Section 167 amended (Recovery of tax and payments from employers or PAYE intermediaries)
175Section 173M amended (Transfer of excess tax to another taxpayer)
176Section 177B amended (Instalment arrangements)
177Section 177C amended (Write-off of tax by Commissioner)
178Section 185E amended (Purpose)
179New heading and section 185S inserted
185SRequirements for reporting platform operators and sellers
180New section 226F inserted (Application of changes to model reporting standards for digital platforms)
226FApplication of changes to model reporting standards for digital platforms
181Schedule 4 amended (Reporting of employment income information)
182New schedule 6B inserted (Reporting of schedular payment information)
183Schedule 7 amended (Disclosure rules)
3BGST registration status
184Amendments to Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022
185Section 2 amended (Commencement)
186Section 5 amended (Section 2 amended (Interpretation))
187Section 19 amended (New cross-headings and sections 19E to 19Q inserted)
19FRecords of taxable supplies
19LTaxable supply information: supplies by member of GST group or supplier group
188Section 21 amended (Section 20 amended (Calculation of tax payable))
189Section 40 amended (Section 75 amended (Keeping of records))
190Section 168 amended (Section RP 17 amended (Tax pooling intermediaries))
191Section 170 amended (Section RP 19 amended (Transfers from tax pooling accounts))
192Amendment to Income Tax Act 2004
193Amendment to Companies Act 1993
194Amendment to Insolvency Act 2006

The Parliament of New Zealand enacts as follows: