Clause 3 sets the annual rates of income tax for the 2022–23 tax year.

Clause 4 provides that Part 2 amends the Income Tax Act 2007.

Clause 5 amends section AA 1 to remove the reference to “net income” as the section does not use the term in the same way as it is defined.

Clause 6 amends section CB 6A to clarify that it does not apply to the extent to which the relevant land is acquired before 27 March 2021. Also, signposting to section FC 9 is inserted.

Clause 7 amends section CB 6AB to correct a drafting error and widen the application of bright-line rollover relief.

Clause 8 amends section CB 6AC to correct a drafting error and widen the application of bright-line rollover relief.

Clause 9 amends section CB 16A to remove a redundant provision.

Clause 10 amends section CD 1 to provide a 2-year deferral in the recognition of income in the case of certain dividends derived by dual resident companies.

Clause 11 amends section CD 14 as a consequence of the amendments to the corporate migration rules.

Clause 12 amends section CD 15 to clarify that a beneficiary’s imputation credit for income purposes equals the corresponding tax credit they receive.

Clause 13 amends section CD 26 as a consequence of the amendments to the corporate migration rules.

Clause 14 amends section CD 36 to exclude, from being dividends for the purposes of the FIF income rules, a distribution from a CFC that is a unit trust if the distribution is funded from distributions from certain FIF interests.

Clause 15 amends section CD 43 as a consequence of the amendments to the corporate migration rules.

Clause 16 amends section CE 1 to insert a cross reference to new section CE 1F.

Clause 17 inserts new section CE 1F to provide for the treatment of amounts derived by cross-border employees. The section also provides a definition of cross-border employee.

Clause 18 amends new section CE 1F from 1 April 2024 to provide a grace period for employers to comply with their tax obligations when it is discovered that a cross-border employee has breached a threshold or received an extra pay in relation to the period in which they were providing services in New Zealand.

Clause 19 amends section CQ 5 to update nomenclature.

Clause 20 amends section CR 4 as a consequence of the amendments allowing insurance companies to use IFRS 17 for tax accounting.

Clause 21 amends section CV 12 to make a change to a cross-reference.

Clause 22 amends section CW 10, which exempts dividends within New Zealand wholly-owned groups from income tax, to narrow the scope of that exemption.

Clause 23 amends section CX 9 to provide that subsidised public transport is not a fringe benefit.

Clause 24 amends section CX 10 to update nomenclature.

Clause 25 amends section CX 13 which provides that a fringe benefit arises when a contribution to a superannuation scheme is made to clarify that an employer’s contribution to a foreign superannuation scheme is excluded in the same way as an employer’s superannuation cash contribution.

Clause 26 amends section CX 14 which provides that a fringe benefit arises for a contribution to a sickness, accident, or death benefit fund to exclude contributions to foreign superannuation schemes from the ambit of the section.

Clause 27 inserts new section CX 19C to provide that subsidised public transport is not a fringe benefit.

Clause 28 amends section CX 26 to insert a new subsection to clarify that a benefit received by an employee who is no longer resident in New Zealand is a fringe benefit only to the extent to which it relates to the time the employee was in New Zealand.

Clause 29 amends section CX 35 to update nomenclature.

Clause 30 amends section CX 47 to provide that grants from public purpose Crown-controlled companies are government grants and excluded income of the recipient.

Clause 31 amends section CX 57B to treat as excluded income a distribution from a CFC that is a unit trust if the distribution is funded from distributions from certain FIF interests.

Clause 32 amends section CZ 39 to clarify that it does not apply to the extent to which the relevant land is acquired before 29 March 2018.

Clause 33 amends section DB 53 to clarify when the section applies.

Clause 34 inserts a new heading and new section DB 68 to clarify the treatment of expenditure for utilities distribution assets.

Clause 35 amends section DD 11, definition of business premises as part of repositioning that definition.

Clause 36 amends section DF 1 to deny a deduction for grants from public purpose Crown-controlled companies.

Clause 37 amends section DG 5, to clarify the relationship between mixed-use assets rules and interest disallowance for residential property.

Clause 38 amends section DG 11, to clarify the relationship between mixed-use assets rules and interest disallowance for residential property.

Clause 39 amends section DH 6 to correct a cross-reference.

Clause 40 amends section DH 7 to update nomenclature.

Clause 41 repeals section DH 9, as redundant.

Clause 42 amends section DH 12 to correct a minor drafting error.

Clause 43 amends section DN 6 to update nomenclature.

Clause 44 amends section DW 4 to allow for the adoption by an insurer of IFRS 17 for the treatment of the insurer’s reserve for outstanding claims liability.

Clause 45 amends section EE 6 to clarify the treatment of expenditure for utilities distribution assets.

Clause 46 amends section EE 7 to clarify the treatment of expenditure for utilities distribution assets.

Clause 47 amends section EE 31 as a consequence of the amendments to the corporate migration rules.

Clause 48 amends section EW 15D as a remedial matter, to ensure that, for financial assets accounted for under the fair value method, a movement in fair value that reverses a decline in credit quality does not result in assessable income.

Clause 49 amends section EW 46C, to update nomenclature.

Clause 50 inserts new section EW 46D to provide that when an insolvent company’s debt is repaid with consideration received for issuing shares, the person who made the repayment is treated as having paid an amount towards the debt equal to the market value of the shares rather than the amount they actually paid towards the debt.

Clause 51 amends section EX 20B to correct possible double taxation when a CFC of a person has an interest in a FIF that is an attributing interest for the person.

Clause 52 amends section EX 20C to correct possible double taxation when a CFC of a person has an interest in a FIF that is an attributing interest for the person.

Clause 53 amends section EX 38 to correct grammar.

Clause 54 amends section EX 46 to replace references to “highly effective” hedging instruments. The references depended on the meaning for the term given by NZ IAS 39, but that standard is no longer used.

Clause 55 amends section EX 52 to provide, in the application of the fair dividend rate method of calculating FIF income, for Australian unit trusts that are treated under Australian tax law in the same way as companies.

Clause 56 amends section EX 53 to provide, in the application of the fair dividend rate method of calculating FIF income, for Australian unit trusts that are treated under Australian tax law in the same way as companies.

Clause 57 amends section EX 59 to provide, in the exclusion to this section, for an additional requirement that the FIF interest is not a unit trust or is a unit trust that is subject to income tax under Australian law in the same way as a company.

Clause 58 amends section EY 24 to allow for changes made by IFRS 17 to the accounting for an insurer’s reserve for liability for outstanding claims.

Clause 59 amends section FC 9 to add a reader’s aid.

Clause 60 amends section FL 1 as part of the expansion in scope of the corporate migration rules to include New Zealand resident companies that start to be treated under a double tax agreement as not being New Zealand resident.

Clause 61 replaces section FL 2, which provides for the income tax treatment of New Zealand resident companies that stop being New Zealand resident and their shareholders, as a consequence of the expansion in scope of the corporate migration rules to include New Zealand resident companies that start to be treated under a double tax agreement as not being New Zealand resident.

Clause 62 inserts new section FL 3, as part of the expansion in scope of the corporate migration rules, to provide for the income tax treatment of New Zealand resident companies that start to be treated under a double tax agreement as not being New Zealand resident and their shareholders if a specified event subsequently occurs.

Clause 63 amends section FM 31 to relax the eligibility requirements for membership of a consolidated group.

Clause 64 amends section FN 4 as a consequence of making a New Zealand resident company automatically become an Australian ICA company if it starts to be treated, under a double tax agreement between New Zealand and Australia, as not being resident in New Zealand.

Clause 65 amends section GB 28 to correct a minor fault of expression.

Clause 66 amends section GC 13 to update a paragraph reference to the 2022 version of the OECD transfer pricing guidelines.

Clause 67 amends section HA 7 to remove unnecessary references to adoption.

Clause 68 amends section HB 13 to correct a minor fault of expression.

Clause 69 amends section HC 8 to provide that reportable income received by the trustee of a deceased person’s estate within 28 days of the person’s death is treated as being income of the person, rather than of the trustee.

Clause 70 amends section HC 26, which provides for the exemption of foreign-sourced amounts received by resident trustees of some trusts, to clarify that the exemption is not restricted to foreign trusts and is available to trusts created by wills. The power of the Commissioner to excuse late compliance by trustees with their obligations is extended by removing the need for trustees to correct non-compliance within a reasonable time of becoming aware of the non-compliance.

Clause 71 amends section HC 36 to remove unnecessary references to adoption.

Clause 72 amends section HM 35 to add an option for using an accrual method for multi-rate PIEs.

Clause 73 amends section HM 40 to repeal unnecessary words.

Clause 74 amends section HR 12 to correct a minor fault of expression.

Clause 75 inserts new section IB 2B to ensure that the rules that enable companies to carry forward tax losses despite breaching ownership continuity work as intended. The new section does this by altering the period over which continuity of ownership is measured for the purpose of determining whether a subsequent ownership continuity breach has occurred.

Clause 76 amends section IC 4 to update nomenclature.

Clause 77 amends section IC 5, which provides when a company can make a tax loss available to another company. Subclause (1) amends subsection (1)(b) as a consequence of amending section IC 7. Subclause (2) inserts new subsection (8), which identifies that new section IZ 7B modifies subsection (1)(b) for commonality periods starting before 15 March 2017 for tax loss components arising after the 1990–91 tax year.

Clause 78 amends section IC 7 to remove the residence in New Zealand requirement for a company to group tax losses.

Clause 79 inserts new section IZ 7B, which is a transitional rule for grouping tax losses for commonality periods starting before 15 March 2017 for tax loss components arising after the 1990–91 tax year.

Clause 80 amends section LE 5 to limit a beneficiary’s imputation credit to the corresponding tax credit they receive.

Clause 81 amends section LK 1 as a consequence of the amendments to section IC 7.

Clause 82 amends section LT 1, which provides for the calculation of some tax credits, by clarifying the calculation of an item in a formula giving the maximum amount of the tax credit available for a tax year.

Clause 83 amends section OB 2 to provide that a New Zealand resident company must continue to maintain an imputation credit account if it starts to be treated under a double tax agreement between New Zealand and Australia as not being resident in New Zealand.

Clause 84 amends section OB 62 as a consequence of the amendments to the corporate migration rules.

Clause 85 amends section RA 6 to provide a 2-year deferral of the obligations to withhold NRWT from certain dividends paid to dual resident companies and to pay that NRWT to the Commissioner.

Clause 86 amends section RA 15 to provide that the Commissioner and an employer of certain cross-border employees may agree to alter the date for payment of amounts of tax for PAYE income payments of those employees for whom it is difficult to ascertain and provide information by the usual due dates.

Clause 87 amends section RA 18 as a consequence of the amendments to the corporate migration rules.

Clause 88 amends section RC 5, which provides methods for calculating a person’s provisional tax liability. Subclauses 1 and 2 clarify that provisional tax under either uplift method is assessed at each instalment date. Subclauses 3, 4, and 5 clarify that the 110% uplift method is only available for instalments due on or before the date the person files their return of income for the preceding tax year. Subclause 6 clarifies that the 110% uplift method applies in circumstances where the instalment is due on a non-working day and the person files the preceding year’s tax return on the same day.

Clause 89 amends section RD 5 to clarify that contributions to foreign superannuation schemes are included in salary and wages.

Clause 90 amends section RD 8 to provide that a schedular payment to a non-resident contractor may include a payment made by an associated person or by a member of a group of companies. The section also clarifies how the 92–threshold is calculated and how the monetary threshold is determined.

Clauses 91 and 92 repeal sections RD 23 and RD 24(1)(b) related to bonds that are required to be given by employers of certain non-resident employees.

Clauses 93 and 94 insert new sections RD 62B and RD 71B regarding the obligations of cross-border employees when an amount of an FBT liability or amounts of tax for superannuation contributions made in relation to the time the employees are in New Zealand are not paid. The employee is required to provide the relevant information and pay the amount of the deficiency.

Clause 95 amends section RF 2, which gives the meaning of non-resident passive income, to expand that definition to encompass certain dividends derived by dual resident companies. The effect of the amendments is to subject those dividends to NRWT.

Clauses 96 and 97 amend sections RF 2C and RF 12G, respectively, as a consequence of amending section RF 2.

Clause 98 amends section YA 1. Subclause (2) replaces the definition of Australian ICA company. The expanded new definition encompasses a company that is required by new section OB 2(3B) to maintain an imputation credit account. Subclause (3) inserts a new definition of build-to-rent land, to make build-to-rent land an exception to the disallowance of interest for residential land. Subclause (4) replaces the definition of business premises as part of repositioning that definition. Subclause (5) inserts a reference to the definition of cross-border employee. Subclause (6) amends the definition of disposal to exclude certain self-dealings. Subclause (7) inserts a new definition of DRCD deferral date, which is used in the amendments to sections CD 1 and RA 6. Subclause (8) amends the definition of fully imputed to include a cross-reference to section CW 10. Subclause (9) replaces the definition of ICA company as a consequence of changing the meaning of Australian ICA company. Subclause (10) updates a reference to an accounting standard. Subclause (11) amends the definition of non-resident contractor to exclude a non-resident entertainer. Subclause (12) amends the definition of OECD transfer pricing guidelines to refer to the 2022 version of the guidelines. Subclause (13) amends the definition of outstanding claims reserve. Subclause (14) replaces the definition of present value (gross) to update terminology. Subclauses (15) and (16) amend the definition of profit distribution plan to correct minor faults of expression. Subclause (17) amends the definition of relative to remove unnecessary references to adoption. Subclause (18) amends the definition of settlement to correct a cross-reference. Subclause (19) replaces the definition of time of emigration as part of the expansion in scope of the corporate migration rules to include New Zealand resident companies that start to be treated under a double tax agreement as not being New Zealand resident. Subclause (20) amends the definition of trust rules to correct a cross-reference. Subclause (21) amends the definition of unit trust to update nomenclature. Subclauses (22), (23), and (24) insert new definitions of utilities distribution assets, utilities distribution network and utilities distribution network operator to clarify the treatment of expenditure for utilities distribution assets.

Clause 99 amends section YB 4 to remove unnecessary references to adoption.

Clause 100 amends schedule 15 to make build-to-rent land an exception to the disallowance of interest for residential land.

Clause 101 amends schedule 32 which lists overseas-based charities to which a donation entitles the donor to a deduction.

Clause 102 provides that Part 3 amends the Goods and Services Tax Act 1985 (the GST Act).

Clause 103 amends section 2. Subclause (2) amends the definition of electronic marketplace to include a supply of listed services in the supplies that may be made through the marketplace. Subclause (3) inserts a new definition of flat-rate credit for the amount that is passed to an underlying supplier of listed services when the underlying supplier is not a registered person. Subclause (4) inserts a new definition of investment manager. Subclause (5) inserts a new definition of listed services. Subclause (6) inserts a new definition of manager. Subclause (7) inserts a new definition of managed investment scheme. Subclauses (8), (9), (10), and (11) amend various definitions to account for the proposed repeal of the mixed-use asset apportionment rules.

Clause 104 amends section 2A to provide that a joint venture and a member of the joint venture are associated persons.

Clause 105 amends section 3 to exclude services provided by a fund manager or investment manager from the definition of financial services.

Clause 106 amends section 5, which sets out the meaning of supply. Subclause (1) repeals provisions that are redundant as a result of the general rule introduced by subclause (3). Subclause (2) ensures government grants and subsidies paid to public authorities are subject to GST. Subclause (3) provides the GST treatment for charges payable under legislation. Subclause (4) provides for listed services to have the same treatment as remote services. Subclauses (5) and (6) make consequential amendments for the purposes of allowing a GST registered person to elect to treat certain assets as if they only have private or exempt use. Subclause (7) clarifies that the disposal of an asset is a taxable supply if the registered person previously claimed taxable use of that asset. Subclause (8) repeals a redundant provision. Subclause (9) deems a supply of goods to be made by the recipient of goods that have been incorrectly zero-rated.

Clause 107 amends section 8 in relation to the introduction of supplies of listed services to provide that the supply is chargeable with tax and to provide when the supply is treated as made in New Zealand.

Clause 108 amends section 8B to clarify when the section applies to remote services for the purposes of certain provisions of the Act. The section also updates a cross reference to section 8BB.

Clause 109 amends section 8BB to clarify the nature of the supplies to which the section applies to determine whether the supply is made by a registered person.

Clause 110 inserts new section 8C for the treatment of supplies of listed services in New Zealand. The section describes the services that are listed services and their treatment as 2 separate supplies by an underlying supplier and the operator of the electronic marketplace. It sets out the obligations of the operator when the underlying supplier is not registered, and what the underlying supplier is required to do when input tax is inappropriately deducted. The section also sets the rate for the input tax and flat-rate credit and requires the operator to provide a statement to the underlying supplier.

Clause 111 amends section 9 to include listed services for the purposes of loyalty programmes.

Clause 112 amends section 10 for the treatment of listed services and to exclude these services from the discounted services described in subsection (6).

Clause 113 amends section 11 to standard-rate periodic payments made under an agreement for periodic supplies of an interest in land (such as a commercial lease) following an irregular lump-sum payment of more than 25% of the total consideration under the agreement.

Clause 114 amends section 14 to allow registered persons to treat the disposal of certain qualifying goods which have mainly non-taxable use as exempt supplies.

Clause 115 amends section 15 to include a cross reference for listed services.

Clause 116 amends section 19K to include a reference to taxable supply information for listed services.

Clause 117 amends section 20. Subclauses (1) and (2) correct amendments made in section 21 of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 that commenced from the incorrect dates. Subclause (3) provides for the deduction taken by an operator of an electronic marketplace of an amount of input tax equal to the amount of a flat-rate credit to be passed on to an underlying supplier who has not notified the operator that they are a registered person. Subclause (4) makes a consequential amendment to account for the proposed repeal of the mixed-use asset apportionment rules in sections 20(3JB) and 20G. Subclause (5) clarifies that section 20(3LB) applies instead of section 20(3C)(b). Subclause (6) ensures that the general rule for determining if input tax may be deducted does not apply if the proposed new principal purpose test for goods and services acquired for $10,000 or less applies. Subclauses (7) and (8) enable a registered person to deduct input tax in relation to goods and services supplied to them that they intend to use in making taxable supplies. Subclause (9) enables a registered person to claim a full input tax deduction for goods and services acquired for $10,000 or less and for the principal purpose of making taxable supplies. Subclauses (10) and (11) allow the Commissioner of Inland Revenue to approve a wider range of apportionment methods by removing the requirement for the method to have regard to the tenor of the apportionment rules. Subclause (12) allows a registered person who acquires a zero-rated supply of land or a going concern to choose to return output tax on the full nominal GST amount of goods. By doing this, they can become eligible under section 14(4) to make their future disposal of these goods an exempt supply, provided they meet the other conditions in section 14(4). Subclause (13) makes a consequential amendment to account for the proposed repeal of the mixed-use asset apportionment rules in sections 20(3JB) and 20G. Subclause (14) repeals the mixed-use asset apportionment rules in section 20(3JB). Subclause (15) makes a consequential amendment to account for the proposed repeal of the mixed-use asset apportionment rules in sections 20(3JB) and 20G. Subclause (16) creates an output tax adjustment equal to the amount of the flat-rate credit received by a registered person. Subclause (17) provides that the principal purpose test in section 20(3CB) and (3CC) overrides section 20(3L). Subclauses (18) and (19) make consequential amendments relating to subclauses (7) and (8), to allow GST-registered non-resident person to claim an input tax deduction for goods and services intended for use by them in making taxable supplies (treating all the supplies made by them as if they were made and received in New Zealand). Section 20(3L) has been amended twice because it was replaced on 30 March 2022. Subclause (20) makes a consequential amendment to ensure that an input tax deduction can be claimed by a GST-registered non-resident person on imported goods intended to be used by them in making taxable supplies (treating all supplies made by them as if they were made and received in New Zealand). Subclause (21) provides that the principal purpose test in section 20(3CB) and (3CC) overrides section 20(3LB). Subclause (22) inserts a new subsection to set the rate for the flat-rate credit for listed services and prescribes the amount of the deduction for the flat-rate credit at 8.5% of the value of the service. Subclause (23) makes a consequential amendment to section 20(4) to reflect amendments made to the wash-up calculation provisions in section 21FB. Subclause (24) attributes output tax that a person has elected to pay under section 91 to the taxable period in which the election was made. Subclause (25) provides for listed services to be treated in the same way as remote services. Subclause (26) provides the timing of the output tax adjustment referred to in new subsection (3JD). The section also updates some cross references related to listed services.

Clause 118 repeals section 20G, which contains apportionment rules for mixed-use assets.

Clause 119 amends section 21. Subclause (1) ensures no adjustments can be made for goods and services valued at $10,000 or less. Subclauses (2) and (3) provide that a person cannot make an adjustment if they have elected to treat a supply of goods as exempt under section 14(4). Subclauses (4) and (5) allow Inland Revenue to approve a wider range of apportionment methods by removing the requirement for the method to have regard to the tenor of the apportionment rules.

Clause 120 amends section 21B to delete the reference to section 20G to account for the proposed repeal of the mixed-use asset apportionment rules.

Clause 121 amends section 21D to delete the reference to section 20G to account for the proposed repeal of the mixed-use asset apportionment rules.

Clause 122 amends section 21F consequentially.

Clause 123 replaces section 21FB. Subclause (1) retrospectively amends the definition of actual deduction to ensure that the wash-up calculation correctly accounts for the land that was acquired as a zero-rated supply. Subclause (2) expands the ability to use the wash-up rule in section 21FB, which provides a final adjustment when there have been a permanent change of use. The amendments allow the rule to be used for any permanent change in use, rather than just a change to fully taxable, or fully non-taxable use.

Clause 124 amends section 21G. Subclauses (1), (3), and (5) delete the reference to section 20G to account for the proposed repeal of the mixed-use asset apportionment rules. Subclauses (2), (4), and (7) make consequential amendments. Subclause (6) reduces compliance costs for businesses by reducing the number of adjustment periods required for goods and services of different values, and capping the number of adjustment periods required for land at ten.

Clause 125 amends section 21HB to update a cross-reference.

Clause 126 amends section 26AA to include a reference to listed services.

Clause 127 amends section 51 to include a reference to listed services.

Clause 128 amends section 58 to clarify that administrators are treated as carrying on the taxable activity of a company in voluntary administration.

Clause 129 amends section 60 to include a reference to listed services.

Clause 130 amends section 60C to update the section for supplies of listed services through electronic marketplaces. The section provides for certain services that are accommodation services provided by large commercial enterprises in relation to which the Commissioner must provide guidance for agreements between the underlying supplier and the operator of the marketplace to change the liability for the payment of tax.

Clause 131 inserts new section 60H to set out the information requirements for underlying suppliers operating through electronic marketplaces. The section includes a provision relating the model reporting standards under the Tax Administration Act 1994 requiring information to be provided to a reporting platform operator.

Clauses 132 and 133 amend sections 75 and 77 to insert cross references to listed services.

Clause 134 inserts new section 81B to prevent taxpayers and the Commissioner of Inland Revenue from amending historic GST assessments in a way that would be inconsistent with the proposed rules for legislative charges in section 5(6EC) to 5(6EE).

Clause 135 inserts new section 85D as a transitional provision for certain supplies of listed services when an underlying supplier of accommodation services may choose to apply the new rules in the period from assent to the date on which the new rules come into force.

Clause 136 inserts new section 90 to enable regulations to be made adding legislative charges to the new schedule of non-taxable legislative charges.

Clause 137 inserts new section 91 to enable a person to elect to return output tax on certain predominantly private goods that the person had previously claimed a deduction for, or acquired as a zero-rated supply. If the person returns output tax under section 91, any future disposal of the goods is an exempt supply.

Clause 138 inserts new section 92, a transitional rule for managers and investment managers of managed investment schemes, to require them to continue to apply their current tax treatment to all subsequent taxable periods until the new rules in section 3(4) apply.

Clause 139 inserts a new schedule of non-taxable legislative charges.

Clause 140 provides that Part 4 amends the Tax Administration Act 1994.

Clause 141 amends section 3. Subclause (2) inserts a new definition of DRCD deferral date, which gives that term the same meaning as in the Income Tax Act 2007. Subclause (3) inserts a new definition of extended model reporting standard for digital platforms for the new reporting rules. Subclause (4) inserts a new definition of foreign exemption trust. Subclause (5) amends the definition of large multinational group to correct a paragraph reference. Subclause (6) inserts new definitions of model reporting standard for digital platforms and reporting platform operator for the new reporting rules.

Clause 142 amends section 4A to correct a fault of expression and to ensure that all KiwiSaver employer contributions have the correct preferential debt status.

Clause 143 amends section 22 for the record keeping requirements of reporting platform operators under the new reporting rules.

Clause 144 amends section 23I relating to the information required from employees to provide for particular information about fringe benefits and benefits arising from contributions to foreign superannuation schemes to be reported to the Commissioner.

Clause 145 inserts a new subpart 3D and section 23R for the reporting of information about schedular payments made to non-resident contractors. The details are listed in new schedule 6B.

Clause 146 amends section 24H in relation to schedular payments to provide that the Commissioner may set a retrospective period of up to 92 days in which to include a schedular payment for which no tax is required to be withheld.

Clause 147 inserts new section 24HB to provide for the circumstances when a non-resident contractor derives a schedular payment for which they are liable to pay the amount of tax for the payment and they nominate an associated person resident in New Zealand to carry out the tax obligations in relation to the payment. The section provides that the activity of the nominated person can provide a compliance history for exemption purposes.

Clause 148 amends section 25E as a consequence of the amendments to the corporate migration rules in the Income Tax Act 2007.

Clause 149 amends section 25G to provide a 2-year deferral of the obligation that payers of certain dividends to dual resident companies have to provide information to the Commissioner in relation to those dividends.

Clause 150 amends section 29. Subclause (1) amends subsection (1C)(b) as a consequence of the amendments to the corporate migration rules in the Income Tax Act 2007. Subclause (2) inserts new subsection (3) to provide a 2-year deferral of the obligation that payers of certain dividends to dual resident companies have to provide a shareholder dividend statement.

Clause 151 amends section 43B to remove the requirement to file a tax return for more trusts and estates.

Clause 152 amends section 59BA consequentially on the expansion of the group of trusts with exempt foreign income that are required to register and make annual returns.

Clause 153 amends section 59B to provide for the registration of a foreign exemption trust and give the Commissioner the power to backdate a registration if the Commissioner thinks that the trustee making an initially unsuccessful application makes reasonable efforts to meet the requirements. Some details of the information that a trustee is required to provide with the application for registration are adjusted. Time limits are inserted for the contact trustee of a foreign exemption trust to notify the Commissioner that the trustee anticipates ceasing to be the contact trustee and to provide details of the replacement contact trustee.

Clause 154 amends section 59C, which gives the time limits for trustees to apply for registration of trusts and provide the required returns, consequentially on the expansion of the group of trusts with exempt foreign income that are required to register and make annual returns.

Clause 155 amends section 59D, which provides for the annual return required from trustees of a trust with exempt foreign income, consequentially on the expansion of the group of trusts to which the requirements apply.

Clause 156 inserts new section 59DB, giving to the Commissioner a power to deregister a foreign exemption trust after giving 30 days notice if the Commissioner considers that the trust did not satisfy the requirements for registration at the time of application or ceases to satisfy the requirements after the registration was made.

Clause 157 amends section 59E, consequentially on the expansion of the group of trusts with exempt foreign income that are required to register and make annual returns.

Clause 158 inserts new section 61B to provide information disclosure requirements for registered persons who acquire high-value assets with the intention of using them to make taxable supplies.

Clause 159 amends section 68CB, which sets out the process for general approval of a person’s research and development activities. Subclause (2) deletes section 68CB(1)(d) to remove the requirement that a person must notify the Commissioner that there have been no material changes for their business in order to obtain general approval. Subclause (3) clarifies that a taxpayer who has materially changed their research and development activities, and who wants their existing general approval to cover the changed activities, must apply for a variation to their existing general approval.

Clause 161 amends section 89AB to remove redundant cross-references.

Clause 162 amends section 89C to add a reference to the new penalty provisions related to reporting requirements for reporting platform operators and sellers operating on digital platforms and to provide for extinguishing of carry forward amounts as part of debt remission.

Clause 163 amends section 91C to remove a redundant cross-reference.

Clause 164 inserts new section 94D related to the assessment of penalties under the new reporting rules, the model rules, for both a reporting platform operator and a seller operating on the digital platform.

Clause 165 inserts new section 108AC, which establishes a time bar for amending an assessment of student loan deductions.

Clause 166 amends section 120B to provide the circumstances in which a non-resident employer is excluded from the requirement to pay interest on late payments.

Clause 167 amends section 124G to remove unnecessary references to adoption.

Clause 168 amends section 139A to repeal section 139A(9). Section 139A(9) is no longer needed now that all tax types have migrated to Inland Revenue’s START software platform.

Clause 169 inserts new section 139AC, which provides for a civil penalty if a trustee of a foreign exemption trust fails to meet the requirements to register, or provide information for, the trust.

Clause 170 amends section 141 to remove redundant cross-references.

Clause 171 amends section 141ED to provide for the circumstances when a non-resident employer is not liable for a penalty for unpaid amounts of employer’s withholding payments.

Clause 172 inserts new section 141GC to provide a grace period to allow for the payer of a schedular payment to meet or correct their tax obligations.

Clause 173 amends section 142B to remove a redundant cross-reference.

Clause 174 inserts new sections 142J and 142K to set out the penalties that may apply to reporting platform operators and sellers on digital platforms. Section 142J contains penalties that could apply reporting platform operators for the purposes of the new information reporting requirements. Section 142K contains penalties that could apply to sellers on digital platforms for the purposes of the new information reporting requirements.

Clause 175 amends section 143. Subclause (1) replaces subsection (1B), consequentially on the expansion of the group of trusts with exempt foreign income that are required to register and make annual returns. Subclause (2) excludes the reporting requirements under the model standards for digital platforms from the ambit of the section.

Clause 176 amends section 167 to ensure that all KiwiSaver employer contributions have the correct preferential debt status.

Clause 177 amends section 173M to remove unnecessary references to adoption.

Clause 178 amends section 177B to remove a redundant cross-reference.

Clause 179 amends section 177C to provide for extinguishing of carry forward amounts as part of debt remission.

Clause 180 amends section 185E to insert a cross reference to new section 185S in relation to the new reporting standards under the model rules.

Clause 181 inserts a new heading and section 185S for the model reporting standards for digital platforms. The section sets out the requirements for reporting platform operators and for sellers of goods or services on the platform.

Clause 182 inserts new section 226F to provide for regulations to be made for changes in the model reporting standards for digital platforms.

Clause 183 amends schedule 4 for information about employment income to insert references to fringe benefits and benefits arising from contributions to foreign superannuation schemes into table 1 as items to be reported to the Commissioner.

Clause 184 inserts new schedule 6B for the details related to the reporting of schedular payment information.

Clause 185 amends schedule 7 to insert a provision relating to information about the GST registration status of a person that may be provided to operators of electronic marketplaces. The section also removes a redundant cross-reference.

Clause 186 provides that clauses 187 to 193 amend the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022.

Clauses 187, 192, and 193 amend various sections to correct mistakes in commencement and application.

Clause 188 amends section 5 to correct nomenclature.

Clause 189 amends section 19 to correct mistakes in the tax invoicing rules for GST.

Clause 190 repeals section 21(1) and reintroduces the same substantive amendment in clause 117 in order to correct a commencement date error.

Clause 191 amends section 40 to correct a mistake in the tax invoicing rules for GST.

Clause 194 amends section EW 15C of the Income Tax Act 2004, as a remedial matter, to ensure that, for financial assets accounted for under the fair value method, a movement in fair value that reverses a decline in credit quality does not result in assessable income.

Clause 195 amends schedule 7 of the Companies Act 1993 to ensure that all KiwiSaver employer contributions have the correct preferential debt status.

Clause 196 amends section 274 of the Insolvency Act 2006 to ensure that all KiwiSaver employer contributions have the correct preferential debt status.