Clause 3 sets the annual rates of income tax for the 2024–25 tax year.

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

Clause 5 amends section CB 6A to ensure that a disposal by an executor, administrator, or beneficiary of an estate to a third party is exempt from the bright-line test.

Clause 6 amends section CB 15E for two reasons. The first amendment ensures that the section applies to co-owners who are developing land in their personal names, rather than the section just applying to a person who has used an associated entity to develop the land, such as a company. The second amendment ensures that a person has the correct amount of income in a situation when they have disposed of land that they acquired from a co-owner on partition or subdivision while associated to a property developer and that acquisition was more than minor.

Clause 7 inserts a cross-heading above section CB 23B.

Clause 8 inserts 2 new sections. New section CC 2B provides that insurance or compensation for certain land or buildings affected by an emergency event is income when new section FP 3(5) applies. New section CC 2C provides that insurance or compensation for improvements to farmland and horticultural plants affected by an emergency event is income when new section FP 5(3) or (6) applies.

Clause 9 amends section CD 43 to correct a cross-reference.

Clause 10 amends section CD 44 to ensure that, when a company that is a beneficiary of a trust derives beneficiary income subject to the corporate beneficiary rule in section HC 38, the amount the company can distribute to shareholders tax free on liquidation is limited to the after-tax amount of the beneficiary income they receive.

Clause 11 amends section CE 1 to update cross-references as a result of the new emergency response provisions.

Clause 12 amends section CE 9 to expand the sale of business exclusion from a restrictive covenant payment to include situations when a person sells all their shares in a business even though other shareholders may retain theirs.

Clause 13 amends section CF 3 to insert a term into the defined terms list.

Clause 14 inserts new section CH 5B to provide an adjustment for the amount of a flat-rate credit that an underlying supplier includes in their assessable income.

Clause 15 amends section CQ 5, which sets out when FIF income arises, to insert correct references to exemption provisions and remove redundant provisions.

Clause 16 amends section CW 3C to ensure that the bright-line period is not restarted when a co-owner acquires land from another co-owner on a partition or subdivision. Instead, the transferee co-owner is given the bright-line start date that the transferor co-owner had. This section has been amended twice as the defined term changed from “bright-line acquisition date” to “bright-line start date” on 1 July 2024 when the 10-year bright-line test was replaced with a 2-year test.

Clause 17 amends section CW 16B to update cross-references as a result of the new emergency response provisions.

Clause 18 amends section CW 16C to update cross-references as a result of the new emergency response provisions.

Clause 19 inserts new section CW 17D to ensure that a reimbursement payment made by an employer to or on behalf of an employee for an influenza vaccination is exempt income of the employee.

Clause 20 inserts new section CW 19B, which exempts accommodation and income less than $5,000 that an employer provides an employee for the purposes of relieving the employee from the adverse effects of an emergency event, provided the requirements of new section FP 13 are met.

Clause 21 amends section CW 26C to increase the exempt employee share scheme thresholds.

Clause 22 inserts a heading above section CW 55BAB(2) as a remedial matter.

Clause 23 amends section CX 1B to provide that the amount of a flat-rate credit that an underlying supplier includes in their income is not excluded income.

Clause 24 inserts a new section CX 63B to include excluded income under subpart HB within subpart CX as a remedial matter.

Clause 25 inserts a new cross-heading and section CX 65 to include excluded income under subpart M within subpart CX as a remedial matter.

Clause 26 corrects a cross-reference in section CZ 25D.

Clause 27 amends section CZ 29B. Subclause (1) updates a cross-reference as a result of the new emergency response provisions. Subclause (2) provides that regulations made under section CZ 29B are secondary legislation.

Clause 28 amends section CZ 37 to update cross-references as a result of the new emergency response provisions.

Clause 29 amends section DB 2 to exclude from the ambit of the section the amount of a flat-rate credit received by an underlying supplier who has chosen to include the amount in their assessable income.

Clause 30 inserts new cross-heading and section DB 69 to provide a deduction for expenditure a person incurs while their income-earning activity is interrupted by an emergency event.

Clause 31 amends section DC 3 to clarify that a partnership is not transparent for the purposes of the section.

Clause 32 amends section DC 4 to clarify that a partnership is not transparent for the purposes of the section.

Clause 33 amends section DN 6, which sets out when FIF losses arise, to correct references to exemption provisions and remove redundant provisions.

Clause 34 inserts new section EA 5 to provide for the deferral of income derived by a share user on disposal of an original share under a share-lending arrangement to the following income year when the deduction for expenditure incurred on acquiring an identical share occurs in that following year.

Clause 35 amends section EC 1 to clarify what livestock needs to be valued under subpart EC for tax purposes.

Clause 36 repeals section EI 8.

Clause 37 amends section EX 20B to remove a redundant provision.

Clause 38 amends section EX 21 as a consequence of the repeal of section EI 8.

Clause 39 replaces section EX 46(9) to correct a fault of expression as a remedial matter.

Clause 40 amends section EX 48 to insert a cross-reference.

Clause 41 amends section EX 63 to remove redundant terminology.

Clause 42 amends section EX 72 to correct a cross-reference.

Clause 43 inserts a new cross-heading and section EZ 8B as a transitional provision to cover any land disposals subject to repealed section EI 8.

Clause 44 amends section EZ 80 to update cross-references as a result of the new emergency response provisions.

Clause 45 amends section EZ 81 to update cross-references as a result of the new emergency response provisions.

Clause 46 amends section FB 3A to update terminology that changed when the bright-line test was changed from 10 years to 2 years.

Clause 47 amends section FC 9 to correct a cross-reference.

Clause 48 amends section FD 1. Subclause (1) ensures drafting consistency. Subclause (2) ensures the rollover relief applies to persons in civil unions and de facto relationships as well as married couples. Subclause (3) clarifies that look-through companies and partnerships are not transparent for the purposes of determining association under section FD 1(1)(a). Subclause (4) amends the defined terms list.

Clause 49 amends section FE 5 to correct a technical drafting error in the thin capitalisation rules.

Clause 50 amends section FE 16B to provide that certain interest-free loans with settlors and trustees are excluded from a New Zealand group’s total non-debt liabilities for the purposes of the thin capitalisation rules. Also, certain interest-free loans with non-corporate parties related to wholly-owned group companies are excluded from a New Zealand group’s total non-debt liabilities.

Clause 51 makes consequential amendments to section FH 15 to provide for limited partnerships that are treated as companies under new section YB 16B.

Clause 53 inserts new subpart FP, which provides tax relief for emergency events. New section FP 1 outlines the subpart. New section FP 2 defines the application of the subpart to emergency events. New section FP 3 allows a person who receives insurance or compensation for land or buildings held on revenue account that were destroyed by an emergency event to defer recognition of that insurance or compensation income for 5 years, or until the person replaces the property or goes bankrupt. New section FP 4 allows a person who receives insurance or compensation for depreciable property damaged by an emergency event that they plan to replace to defer recognition of that insurance or compensation income until the replacement of the property. If the person does not replace the property, the income is deferred to the earlier of 5 years later, the date the person decides not to replace the property, or the date the person goes bankrupt. New section FP 5 allows a person who receives insurance or compensation for improvements to farmland and horticultural plants affected by an emergency event to defer recognition of that income until the property is replaced or, if they do not replace the property, until the earlier of 5 years later, the date the person decides not to replace the property, or the date the person goes bankrupt. New section FP 6, by reference to new section DB 69, enables expenditure to continue to be deducted where that expenditure relates to an income-earning activity that was disrupted by an emergency event to such an extent that there is no longer a sufficient nexus between the expenditure and the income-earning activity. New section FP 7 provides for a deemed disposal and reacquisition of depreciable property damaged by an emergency event to such an extent that it is uneconomic to repair. New section FP 8 limits depreciation recovery income when a person receives compensation for a repairable item of depreciable property damaged by an emergency event to the lesser of the amount of depreciation recovery income the person would have had in the absence of the section and the amount of depreciation deductions previously taken. New section FP 9 treats an item as being available for use for depreciation purposes if access to the item is affected because of a restriction imposed due to an emergency event and the item was used or available for use before the restriction was imposed. New section FP 10 provides an optional timing rule for income and deductions for an item of depreciable property damaged by an emergency event that resulted in a disposal and reacquisition under new section FP 7. New section FP 11 provides an optional timing rule for income and deductions for an item of depreciable property damaged by an emergency event that did not result in a disposal and reacquisition under new section FP 7. New section FP 12 provides an optional adjustment to how group assets are measured for the purposes of the thin capitalisation rules for group assets damaged because of an emergency event for which insurance for the damage is recognised at a later date under generally accepted accounting practice. New section FP 13 provides that income paid by an employer to an employee for the purpose of relieving the employee from the adverse effects of an emergency event and that meets certain other conditions is exempt income to the extent given by new section CW 19B. New section FP 14 provides that a benefit provided by an employer to an employee for the purpose of relieving the employee from the adverse effects of an emergency event is not a fringe benefit where certain conditions are met. New section FP 15, with reference to section CW 16B, provides that the value of accommodation an employer provides an employee for a period of up to 5 years to enable the employee to repair and rebuild land or other property affected by an emergency event is exempt income. New section FP 16 enables the income arising from the culling of livestock destroyed by an emergency event to be spread over 6 years. New section FP 17 provides that sections CB 6A and CB 9 to CB 11, which relate to income from disposals of land, do not apply to land damaged by an emergency event that was subject to a Crown or local authority buy-out.

Clause 54 amends section GC 5 to clarify that partnerships are not transparent for the purposes of a lease under the section.

Clause 55 amends section GC 11 to clarify the application of transfer pricing adjustments.

Clause 56 amends section GC 12 to remove a cross-reference and clarify the interaction between the withholding rules and transfer pricing adjustments.

Clause 57 amends section GC 13 to provide for amendment of assessments beyond the 4-year time bar for certain related transfer pricing adjustments.

Clause 58 amends section HC 33 to correct the terminology.

Clause 59 amends section HC 35. Subclause (1) ensures that beneficiary income subject to the minor beneficiary rule is always taxed at 39%. Subclause (2) ensures that disabled beneficiaries who are minors are not subject to the minor beneficiary rule on the beneficiary income they derive.

Clause 60 amends section HC 38 to ensure that beneficiary income subject to the corporate beneficiary rule is always taxed at 39%.

Clause 61 amends section HG 3 to clarify that the partnership safe harbour provisions apply unless the disposal occurs on the final dissolution of a partnership.

Clause 62 amends section HG 4 to clarify that the partnership safe harbour provisions apply unless the disposal occurs on the final dissolution of a partnership.

Clause 63 amends section HG 5. Subclause (1) corrects a minor fault of expression. Subclause (2) ensures financial arrangements are included in gross tax value at market value. Subclause (3) clarifies that the provision does not apply when the disposal occurs on the final dissolution of a partnership. Subclause (4) amends the list of defined terms.

Clause 64 amends section HG 6. Subclause (1) corrects a minor fault of expression. Subclause (2) clarifies that the provision does not apply when the disposal occurs on the final dissolution of a partnership. Subclause (3) amends the defined terms list.

Clause 65 amends section HG 7. Subclause (1) corrects a minor fault of expression. Subclause (2) clarifies that the provision does not apply when the disposal occurs on the final dissolution of a partnership. Subclause (3) amends the defined terms list.

Clause 66 amends section HG 8. Subclause (1) corrects a minor fault of expression. Subclause (2) clarifies that the provision does not apply when the disposal occurs on the final dissolution of a partnership. Subclause (3) amends the defined terms list.

Clause 67 amends section HG 9. Subclause (1) corrects a minor fault of expression. Subclause (2) clarifies that the provision does not apply when the disposal occurs on the final dissolution of a partnership. Subclause (3) amends the defined terms list.

Clause 68 amends section HG 10. Subclause (1) corrects a minor fault of expression. Subclause (2) clarifies that the provision does not apply when the disposal occurs on the final dissolution of a partnership. Subclause (3) amends the defined terms list.

Clause 69 amends section HG 11. Subclause (1) replaces section HG 11(5)(b) and (c) to reflect that it is partnership interests, rather than capital contributions, that are assigned and also to ensure that loans made by one partner and guaranteed by another partner are not double-counted. Subclause (2) replaces section HG 11(6)(b) to reflect that it is partnership interests, rather than capital contributions, that are assigned. It also inserts new section HG 11(6)(c) to ensure any repayment of debt is accounted for in a partner’s basis calculation. Subclause (3)(a) provides consistency in the partner’s basis calculation by ensuring the current and previous years are included. Subclause (3)(b) removes a redundant provision. Subclauses (4) and (5)(a) clarify that multiple instances of amounts must be aggregated. Subclause (5)(b) ignores recharacterisation under section HG 2(2) for the amount included within the formula in section HG 11(7B) as dividends. Subclauses (6) and (7) remove redundant provisions. Subclause (8) clarifies that multiple instances of amounts must be aggregated. Subclause (9) amends the defined terms list.

Clause 70 amends section HM 7 to include new section HM 10B in the list of requirements an entity must meet to be a PIE.

Clause 71 inserts new section HM 10B to exclude registered banks, licensed non-bank deposit takers, and licensed deposit takers from the PIE rules. The section has been amended twice as “licensed deposit taker”, the term that replaces a “registered bank” and a “licensed non-bank deposit taker”, is not law until section 10 of the Deposit Takers Act 2023 comes into force.

Clause 72 amends section HM 12 to provide that interest income derived from an associated person who meets certain conditions is not eligible to be PIE income.

Clause 73 amends section HM 71 to ensure new section HM 10B is included when referring to the PIE entry rules.

Clause 74 replaces section HR 9 to expand the provision for transparency for assets that are attributed to an originator of a special purpose vehicle as well as assets that are transferred to it.

Clause 75 inserts new section HR 9BAA to define originator for the purposes of the rules relating to debt funding special purpose vehicles.

Clause 76 amends section HR 9BA as a consequence of the changes to section HR 9.

Clause 77 amends section HR 10 to ensure the language is consistent.

Clause 78 inserts new section HR 10B to provide what happens when persons stop being originators in relation to assets held by special purpose vehicles that are attributed to the originator.

Clause 79 amends section HR 12 to correct terminology.

Clause 80 amends section HZ 9 to reflect the changes to section HR 9 for certain periods.

Clause 81 amends section HZ 10 to ensure the language is consistent.

Clause 82 amends section IA 7 to remove a redundant cross-reference.

Clause 83 amends section IE 4 to remove a redundant cross-reference.

Clause 84 amends section IE 5 to remove redundant cross-references.

Clause 85 amends section IQ 6 to remove a redundant cross-reference.

Clause 86 amends section IQ 7 to remove a redundant cross-reference.

Clause 87 inserts new section LB 6BA to provide that a person has a tax credit for an amount of transfer scheme withholding tax (TSWT) withheld.

Clause 88 amends section LE 4B to remove redundant terminology.

Clause 89 amends section LJ 5 to ensure that beneficiaries account for deductions at the trustee level in calculating their foreign tax credit cap.

Clause 90 amends section LY 9 to update the name of the relevant Minister.

Clause 91 amends section LY 10 to update the name of the relevant Minister.

Clause 92 amends section OB 37 to prevent a double debit to imputation credit accounts for research and development tax credits.

Clause 93 inserts new section RA 6BB to provide a withholding and payment obligation for TSWT.

Clause 94 amends section RA 10 to ensure the section applies to a transfer scheme liable to withhold tax from a foreign superannuation withdrawal.

Clause 95 amends section RA 15. Subclauses (1), (3) and (4) include the payment of TSWT within the section and ensure the due date is the 20th day of the month after the month in which the TSWT is withheld. Subclause (2) corrects a cross-reference as a remedial matter.

Clause 96 amends section RD 17 to correct a minor fault of expression.

Clause 97 amends section RD 20B to include certain lump sum support payments as multi-year support payments.

Clause 98 amends section RE 30 to provide for limited partnerships applying for RWT-exempt status in the name of the limited partnership and also to ensure partners in a partnership are liable for RWT debt incurred when they are a partner even after leaving the partnership.

Clause 99 amends section RF 3 to allow a limited partnership to choose to be treated as making a payment of non-resident passive income when the partnership is a lender and receives interest from a source in New Zealand that is derived by a non-resident limited partner of the partnership.

Clause 100 amends section RF 6 to remedy several minor faults of expression and to provide a signpost to the Tax Administration Act 1994 for the case when a person’s NRWT liability is paid by another person.

Clause 101 amends section RF 12 to allow a limited partnership to access the 0% NRWT rate as an approved issuer.

Clause 102 amends section RF 12B to clarify that interest derived by 2 or more persons jointly includes interest derived by partners of a partnership, and also to exclude an interest payment received by a non-resident limited partner of a limited partnership when 1 or more of the partners in the partnership is a New Zealand resident, allowing the limited partnership to access the approved issuer levy.

Clause 103 amends section RF 15 to correct a cross-reference.

Clause 104 inserts new subpart RI, which provides for a new transfer scheme withholding tax. New section RI 1 provides for the subpart to impose TSWT. New section RI 2 sets out when the subpart applies. New section RI 3 imposes an obligation to withhold TSWT and pay it to the Commissioner. New section RI 4 sets out the rate of TSWT. New section RI 5 provides when TSWT must be paid to the Commissioner.

Clause 105 amends section YA 1. Subclause (2) amends the definition of accommodation as part of the new emergency response provisions to ensure that the definition applies for the purposes of new sections CW 19B and FP 15. Subclause (3) amends the definition of ancillary tax to remove redundant references. Subclause (4) inserts a new definition of assessable withdrawal amount. Subclause (5) amends the definition of building to ensure drafting consistency. Subclause (6) amends the definition of business premises to ensure drafting consistency. Subclause (7) amends the definition of business use to reverse an unintended change made during the rewrite of the Income Tax Act. Subclause (8) amends the definition of class to extend its application to new section FP 16. Subclauses (9) and (10) amend the definition of company to provide for limited partnerships that are treated as companies under section YB 14(4) and new section YB 16. Subclause (11) amends the definition of cost price to extend its application to new section FP 16. Subclause (12) amends the definition of dispose to clarify that it includes a disposal occurring on the final dissolution of a partnership. Subclause (13) inserts a new definition of emergency event. Subclause (14) amends the definition of employer to insert cross-references for already enacted provisions. Subclause (15) amends the definition of employer to insert cross-references for the new emergency response provisions. Subclause (16) inserts a new definition of equity group for the purposes of section FE 16B. Subclause (17) inserts a new definition of excluded interest for the purposes of section HM 12. Subclause (18) amends the definition of lines trust so that it includes trusts that have held shares in an energy company and continue to have the same class of beneficiaries for which the trust was established, ensuring that trustee income of these trusts is taxed at 33%. Subclause (19) amends the definition of listed horticultural plant to extend its application to new sections FP 1 and FP 5. Subclauses (20) and (21) amend the definition of market value interest to provide for a limited partnership treated as a company. Subclause (22) amends the definition of member as a consequence of the amendment to the heading of section RE 30. Subclause (23) amends the definition of non-listed horticultural plant to correct a cross-reference. Subclause (24) amends the definition of non-refundable tax credit to include a tax credit for TSWT. Subclause (25) replaces the definition of originator. Subclause (26) amends the definition of partnership share to ensure the definition applies to non-partners associated with limited partnerships under section YB 12(2). Subclause (27) inserts a new definition of QROPS. Subclause (28) repeals the definition of qualifying resident foreign trustee. Subclause (29) replaces the definition of rebuilding as part of the new emergency response provisions to ensure the definition applies for the purposes of new section FP 15. Subclause (30) replaces the definition of recovery as part of the new emergency response provisions to ensure the definition applies for the purposes of new section FP 15. Subclause (31) amends the definition of schedular income as a consequence of the amendment to the heading of section RD 20B. Subclause (32) amends the definition of schedular income to include income that is an assessable withdrawal amount to which new subpart RI applies. Subclause (33) inserts a new definition of transfer scheme. Subclause (34) inserts a new definition of TSWT. Subclauses (35) and (36) amend the definition of voting interest to provide for a limited partnership treated as a company.

Clause 106 amends section YB 1(3) as a remedial matter by inserting new paragraph (jb) to include section YB 13 within the tests of association.

Clause 107 amends section YB 2(4) and (5) to clarify the application of the aggregation provisions.

Clause 108 amends section YB 3(3) and (4) to clarify the application of the aggregation provisions.

Clause 109 amends section YB 12. Subclauses (1) and (3) clarify that a person who is not a limited partner but who is treated as holding an interest in a limited partnership under the limited partnership aggregation rules may be associated with a limited partnership under section YB 12(2). Subclause (2) excludes limited partnerships treated as companies under new section YB 16B from section YB 12(2). Subclauses (4) and (5) amend section YB 12(3) and (4) to clarify the application of the aggregation provisions. Subclause (6) makes consequential amendments to the list of defined terms in the section.

Clause 110 amends section YB 13. Subclauses (1), (2), and (3) clarify that a person who does not have a look-through interest but who is treated as having a look-through interest for a look-through company under the look-through company aggregation rules may be associated with a look-through company under section YB 13(2). Subclauses (4) and (5) amend section YB 13(3) and (4) to clarify the application of the aggregation provisions. Subclause (6) makes a consequential amendment to the list of defined terms in the section.

Clause 111 inserts new section YB 16B, which provides for a limited partnership to be treated as a company for the purposes of the associated persons tests in sections YB 2, YB 3, YB 12(2), (3), and (4) and the look-through rule for corporate shareholders in section YC 4 in the specified circumstances.

Clause 112 amends section YC 4 to correct a minor fault of expression.

Clause 113 amends schedule 1. Subclause (1) makes a consequential amendment to clause 13. Subclause (2) inserts new clause 15 to provide that the rate of tax on schedular income that is an assessable withdrawal amount to which new subpart RI applies is 28%.

Clause 114 amends schedule 25 to correct the shoulder references.

Clause 115 amends schedule 32, which lists overseas-based charities to which a monetary donation entitles the donor to a tax benefit.

Clause 116 provides that Part 3 amends the Tax Administration Act 1994.

Clause 117 amends section 3(1). Subclause (2) inserts a new definition of assessable withdrawal amount. Subclause (3) inserts a new definition of CARF document. Subclause (4) amends the definition of civil penalty. Subclause (5) inserts a new definition of crypto-asset reporting framework. Subclause (6) inserts a new definition of emergency event. Subclause (7) inserts a new definition of foreign superannuation withdrawal. Subclause (8) amends the definition of passive income. Subclause (9) inserts a new definition of transfer scheme. Subclause (10) inserts a new definition of TSWT.

Clause 118 inserts new section 6J to enable certain provisions that provide tax relief for emergency events to be turned on by Order in Council.

Clause 119 amends section 22D to include an assessable withdrawal amount within reportable income and to treat a transfer scheme as the payer of an assessable withdrawal amount for these purposes.

Clause 120 amends section 25B to provide for a transfer scheme to be treated as the payer of an assessable withdrawal amount for the purposes of the investment income information provisions.

Clause 121 amends section 25C to include assessable withdrawal amounts within investment income in the specified circumstances.

Clause 122 amends section 25E to provide that a transfer scheme that pays an assessable withdrawal amount must provide investment income information to the Commissioner.

Clause 123 inserts new section 25LB, which sets out the investment income information requirements for a transfer scheme.

Clause 124 inserts new section 31D, which sets out the notification requirements for a person deriving an assessable withdrawal amount on the transfer of an overseas pension scheme.

Clause 125 amends section 32 to provide a 7-year record-keeping requirement for gift exempt bodies and to provide for records to be kept in te reo Māori.

Clause 126 inserts new section 32IB to provide that a limited partnership is treated as non-transparent for the purposes of determining certain amounts.

Clause 127 amends section 32J to extend the section to limited partnerships.

Clause 128 amends section 32M. Subclauses (1) and (2) allow a limited partnership lender to be an approved issuer. Subclause (3) provides that if the Commissioner backdates a person’s registration of a security under new section 86H(3) of the Stamp and Cheque Duties Act 1971, the person is treated as being an approved issuer from that backdated date of registration.

Clause 129 amends section 33 to ensure that an entity, such as a charity, that derives only exempt income is not required to file an income tax return.

Clause 130 amends section 41 to correct terminology.

Clause 131 amends section 42 to provide that partners may choose to return their share of partnership income to the same corresponding income year as the partnership when the partnership has a non-standard balance date, and also to ensure a non-resident limited partner does not have to file an individual tax return if they have no New Zealand-sourced income.

Clause 132 amends section 46C to repeal a redundant provision.

Clause 133 inserts new section 57C, which requires a transfer scheme that withholds TSWT from a foreign superannuation withdrawal to file a return.

Clause 134 amends section 68CB. Subclause (1) extends the date by which a person can apply for general approval of their research and development activities. Subclauses (2) and (3) extend the dates by which a person can apply to vary an approval.

Clause 135 amends section 89C. Subclause (1) allows the Commissioner to make an assessment without the need for a notice of proposed adjustment when a qualifying individual has provided information to the Commissioner but then fails to respond within 2 months to the Commissioner’s request for additional information. Subclause (2) allows the Commissioner to make an assessment without the need for a notice of proposed adjustment in relation to penalties for non-compliance with the crypto-asset reporting framework.

Clause 136 amends section 89M to provide that if the Commissioner does not respond to a disputant’s statement of position within the 2-month response period, the Commissioner is treated as having accepted the disputant’s statement of position.

Clause 137 amends section 94A to enable the imposition of penalties in relation to the crypto-asset reporting framework.

Clause 138 inserts new section 94E to provide for the Commissioner’s assessment of penalties for non-compliance with the crypto-asset reporting framework.

Clause 139 inserts new section 98C to provide for the Commissioner to make an assessment of TSWT.

Clause 140 amends section 108 to ensure the provision of a return relating to the withholding of TSWT by a transfer scheme is treated as an assessment for the purposes of the time bar.

Clause 141 amends section 138E to provide that there is no right to challenge on matters left to the Commissioner’s discretion under new section 86H(3) of the Stamp and Cheque Duties Act 1971.

Clause 142 amends section 138L to provide that a person may challenge a penalty relating to a reporting obligation, treating the denial of liability as an adjustment proposed by the person.

Clause 143 amends section 139AB to correct a cross-reference.

Clause 144 inserts new sections 142L and 142M to provide penalties for non-compliance with the crypto-asset reporting framework.

Clause 145 amends section 143 to ensure that a person who does not comply with the crypto-asset reporting framework is not liable for an absolute liability or strict liability offence.

Clause 146 amends section 157 to remove a redundant provision.

Clause 147 replaces section 183ABA to replace the current Order in Council mechanism to remit use of money interest as a result of an emergency event with a Commissioner’s discretion.

Clause 148 amends section 185E to provide a signpost cross-reference to the crypto-asset reporting framework.

Clause 149 amends section 185N to give effect to amendments to the OECD’s Common Standard on Reporting and Due Diligence for Financial Account Information and some consequential amendments.

Clause 150 inserts a new cross-heading and section 185U to provide that crypto-asset service providers must comply with the crypto-asset reporting framework. Crypto-asset users also have obligations in relation to the provision of information in accordance with the crypto-asset reporting framework.

Clause 151 amends section 226E to provide additional regulation-making powers for changes to the crypto-asset reporting framework in line with the current powers for the CRS standard (and the CRS publication).

Clause 152 amends schedule 2, part 1 and part 2 to give effect to amendments to the OECD’s Common Standard on Reporting and Due Diligence for Financial Account Information and some consequential amendments.

Clause 153 amends schedule 7, part C, subpart 1. It inserts new clause 23C to give discretion to the Commissioner to share sensitive revenue information with other government agencies for the purposes of delivering assistance in connection with an emergency event provided certain safeguards are met. It also inserts new clause 25(3B) to provide for disclosure of information held on unincorporated bodies for the purposes of the administration of the New Zealand Business Number Act 2016.

Clause 154 provides that Part 4 amends the Goods and Services Tax Act 1985 (the GSTA).

Clause 155 amends section 2. Subclause (2) repeals the definition of credit note. Subclause (3) repeals the definition of debit note. Subclause (4) inserts a definition of listing intermediary. Subclause (5) corrects the terminology in the definition of name.

Clause 156 amends section 3A as an integrity measure to limit the input tax credit a person can claim when secondhand goods have been sold between several associated persons before being sold by an unregistered person to an associated registered person.

Clause 157 amends section 5. Subclause (1) amends subsection (3C) to include a transfer of an emissions unit. Subclause (2) replaces subsection (6E) to define payment in the nature of a grant or subsidy as a consequence of the insertion of new schedule 2. Subclauses (3), (4), and (5) correct cross-references. Subclause (6) requires a GST-registered member to account for output tax on a distribution from a GST-registered unit title body corporate to the extent to which the member uses the unit to make taxable supplies. Subclause (7) corrects a minor fault of expression.

Clause 158 amends section 6. Subclauses (1) and (3) correct cross-references. Subclause (2) clarifies that section 6 applies to deemed supplies when a person deregisters from GST.

Clause 159 amends section 11A. Subclause (1) includes in the zero rating rules a supply of services to temporary imports of commercial vessels. Subclause (2) includes in the zero-rating rules a supply of certain services made through a listing intermediary. Subclause (3) corrects a cross-reference.

Clause 160 amends section 15. Subclauses (1) and (2) correct cross-references. Subclause (3) clarifies the wording of a provision requiring non-resident suppliers of remote services, distantly taxable goods, and listed services to have 3-month taxable periods.

Clause 161 amends section 15B to clarify when a person’s cycle of taxable periods is aligned with their balance date.

Clause 162 amends section 15C to correct cross-references.

Clause 163 amends section 15D to clarify when a change in the basis of taxable periods takes effect.

Clause 164 amends section 15E to clarify that the Commissioner may approve a taxable period end date that is not the last day of the month and that a person can subsequently revert back to the default date.

Clause 165 replaces section 15EB with 3 provisions. New section 15EB provides for the Commissioner’s approval for changes in end dates of taxable periods. For certain persons who have an accounting cycle of 13 periods in a 12-month period, the Commissioner may provide a method for determining the taxable period end dates and the person’s corresponding filing and payment due dates. New section 15EC provides for an initial approval of change in end date. New section 15ED allows for further changes and when those changes take effect.

Clause 166 amends section 19 to update a cross-reference.

Clause 167 inserts new section 19DB, which provides an optional accounting rule for a person who is required to account for tax on a supply of listed services through an electronic marketplace. The person may choose to account for the tax either in or before the taxable period in which the performance of the services is completed.

Clause 168 makes a remedial amendment to section 19N(7) to align with the language used in section 45 of the GSTA.

Clause 169 amends section 19NB to insert a cross-reference that clarifies when the requirement for information falls on the marketplace operator or the listing intermediary.

Clause 170 amends section 20. Subclause (1) inserts a new subsection (3)(df) for supplies of distantly taxable goods. Subclause (2) inserts new subsection (3)(j) to allow a registered person who is a unit title body corporate to claim an input tax deduction for a distribution it makes to its members. Subclause (3) inserts new subsection (4)(e) to provide the taxable period to which output tax is attributed when a registered person accounts for tax on a supply of listed services made through an electronic marketplace under new section 19DB. Subclause (4) corrects cross-references.

Clause 171 replaces section 20F as a remedial to the rules relating to supplies of financial services.

Clause 172 amends section 21 to correct cross-references.

Clause 173 amends section 21F to clarify that subsection (6) applies to property developers that deal in land or erect buildings.

Clause 174 amends section 21G to provide for a non-resident registered person and the calculation of actual use to be made as if all the supplies were made and received in New Zealand.

Clause 175 amends section 25. Subclause (1) corrects the terminology. Subclause (2) ensures an adjustment is not necessary where part of the consideration for the supply of a pharmaceutical is rebated to Pharmac.

Clause 176 amends section 25AA to correct cross-references.

Clause 177 amends section 43 to remove redundant provisions.

Clause 178 amends section 51 to include a cross-reference as a consequence of the amendment to section 51B.

Clause 179 amends section 51B to expand the scope of the temporary GST registration rules so they can also apply to an unregistered person who is subject to the deemed supply rule in section 5(16C) of the GSTA.

Clause 180 amends section 55 to clarify the GST grouping rules. Subclause (1) removes a redundant paragraph. Subclause (2) clarifies that the representative member makes taxable supplies as a registered person. Subclause (3) corrects a cross-reference.

Clause 181 amends section 60 to insert a cross-reference and a reference to an underlying supplier.

Clause 182 amends section 60CB to insert a cross-reference and to insert a new subsection (7B) to describe what happens when a listing intermediary and a marketplace operator have agreed that the intermediary will provide taxable supply information and supply correction information.

Clause 183 amends section 60H to clarify some references and provide a notification requirement for a listing intermediary.

Clause 184 amends section 75 to repeal a redundant provision.

Clause 185 repeals section 89, which relates to COVID-19-related payments made before the commencement of the Goods and Services Tax (Grants and Subsidies) Amendment Order 2020.

Clause 186 inserts new schedule 2 to list the non-taxable amounts of government grants and subsidies that are payments in the nature of a grant or subsidy for the purposes of section 5(6D) of the GSTA.

Clause 187 sets out the clauses that amend the KiwiSaver Act 2006.

Clause 188 amends section 4. Subclause (2) inserts a new definition of foreign superannuation withdrawal. Subclause (3) amends the definition of net value to include a QROPS accumulation. Subclause (4) inserts a new definition of QROPS. Subclause (5) inserts a new definition of QROPS accumulation.

Clause 189 amends section 35 to require only one guardian to contract with a provider for enrolment of a person aged under 16.

Clause 190 inserts a new cross-heading and sections 220C and 220D to provide for the transfer of QROPS accumulations from KiwiSaver schemes to QROPS. New section 220C provides for a member of a KiwiSaver scheme to voluntarily transfer their QROPS accumulation to a QROPS. New section 220D provides for the provider of a KiwiSaver scheme to voluntarily transfer a member’s QROPS accumulation to a QROPS with the member’s consent.

Clause 191 amends schedule 1 to insert new clause 16B to include the transfer of a person’s QROPS accumulation within the KiwiSaver scheme rules.

Clause 192 sets out the clauses that amend the Gaming Duties Act 1971 (the GDA).

Clause 193 amends the definition of gaming machine operator in section 12B to remove the reference to a repealed provision.

Clause 194 repeals section 12FA(b) to remove the reference to a repealed provision.

Clause 195 amends section 12G to remove the reference to a repealed provision.

Clause 196 amends section 12R. Subclause (1) updates the section heading terminology. Subclause (2) inserts new paragraph (bb) to include a terminology cross-reference to ensure the relevant provisions in Part 2A of the GDA apply correctly to casino duty under Part 2B. Subclause (3) repeals paragraph (e) to remove the reference to repealed provisions.

Clause 197 sets out the clauses that amend the Stamp and Cheque Duties Act 1971.

Clause 198 amends section 86G to allow a limited partnership approved issuer to register a security to enable the limited partnership to access the approved issuer levy.

Clause 199 amends section 86H to allow the Commissioner to backdate registration of a security when a delay in applying for registration is caused by an oversight and outlines the factors the Commissioner may take into account.

Clause 200 amends the definition of business use in section OB 1 of the Income Tax Act 2004 to reverse an unintended change made during the rewrite of the Income Tax Act.

Clause 201 replaces the application provision in the amendment to section 21FB of the Goods and Services Tax Act 1985 that was made by section 143 of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023. This allows section 21FB to apply to assets acquired prior to 1 April 2023 as long as the relevant permanent change of use adjustment is made in a return for a taxable period starting on or after 1 April 2023.

Clause 202 amends section 276 of the Child Support Act 1991 to update the list of amendments included in schedule 1 of that Act.

Clause 203 amends schedule 9, clause 6 of the Local Government Act 2002 to update cross-references to provisions in the Income Tax Act 2007.

Clause 204 revokes the Goods and Services Tax (Grants and Subsidies) Order 1992.