No 16
House of Representatives
Supplementary Order Paper
Tuesday, 20 March 2018
Taxation (Annual Rates for 2017-18, Employment and Investment Income, and Remedial Matters) Bill
Proposed amendments
Hon Stuart Nash, in Committee, to move the following amendments:
Clause 2 amended
Replace clause 2(27) (page 22, line 18) with:
(27)
Sections 106B, 182B, 308, and 310 come into force on 1 July 2018.
Clause 5B amended
In clause 5B(3), new section CB 32C(7C)(a) (page 23, line 33), replace “of credits”
with “of the balance”
.
Clause 14 amended
In clause 14, replace new section CE 7(b)(iii) (page 33, lines 17 to 19) with:
(iii)
requires a person described in paragraph (a) to put shares, acquired by them for market value consideration, at risk, if the arrangement provides no protection against a fall in the value of the shares and none of the consideration for acquiring the shares is provided to the person under an agreement that it is used for acquiring the shares.
Clause 32C amended
In clause 32C(3) (page 47, line 13), replace “Subsection (1) applies”
with “Subsections (1) and (2) apply”
.
Clause 70 amended
In clause 70, new section GB 49B(1) (page 64, lines 15 and 16), replace “the definition of share scheme taxing date”
with “the definition of employee share scheme or the definition of share scheme taxing date”
.
Replace clause 70, new section GB 49B(2), other than the heading (page 64, lines 18 to 20), with:
(2)
The Commissioner may classify the arrangement or set a share scheme taxing date as the Commissioner considers appropriate to counteract a tax advantage obtained by the person from or under the agreement.
Clause 73B amended
In clause 73B(1), new section HC 6(1C) (page 65, line 1), replace “RWT substitution payment made”
with “RWT substitution payment made to a beneficiary”
.
Clause 106 amended
Delete clause 106(2) (page 78, lines 19 to 24).
Replace clause 106(3), new sections LB 3(5) and (6) (page 79, lines 1 to 12) with:
Allocation and tax credits
(5)
The trustee may, in a return of income for the income year referred to in subsection (4)(a), choose to allocate, for that year, an amount to a beneficiary of the trust that is equal to some or all of the amount of the detached tax credit referred to in subsection (4). The trustee has a tax credit equal to the amount that is not allocated to a beneficiary, and a beneficiary has a tax credit for the amount that is allocated to them.
Treatment of amounts
(6)
Despite subsection (1), an amount of a tax credit that person A would have under this section in the absence of subsections (4) and (5) must be reduced by an amount equal to the RWT substitution payment received by person A.
After clause 106 (page 79, after line 32), insert:
106B Section LB 4 amended (Tax credits for families)
In section LB 4(1), replace “and their minimum family tax credit under subpart ME (Minimum family tax credit)”
with “, their minimum family tax credit under subpart ME (Minimum family tax credit), and their Best Start tax credit under subpart MG (Best Start tax credit)”
.
Clause 168C amended
After clause 168C(2) (page 112, after line 6), insert:
(2B)
In section RP 4(4)(a), replace “the employer monthly schedule” with “the employment income information”.
Replace clause 168C(3) (page 112, lines 7 and 8) with:
(3)
In section RP 4, in the list of defined terms,—
(a)
insert “employer’s superannuation cash contribution”
, “employment income information”
, “gross”
, and “tax year”
:
(b)
delete “employer monthly schedule”
.
New clause 182B
After clause 182 (page 124, after line 17), insert:
182B Schedule 31 amended (Annualised equivalent amount for Part M)
(1)
In schedule 31, column 1, replace the first 6 rows with:
| Amount does not exceed $42,700 |
| Amount exceeds $42,700 but does not exceed $44,000 |
(2)
In schedule 31, column 2, replace the first 5 rows with:
Clause 187B amended
In clause 187B, new section 14G(2) (page 127, lines 32 to 34), delete “with which they conduct correspondence, or intend to conduct correspondence, with the Commissioner”
.
Clause 264E amended
In clause 264E, new section 120LB(2), the words before the paragraphs (page 164, line 11), replace “overpaid”
with “overpaid tax”
.
Clause 282 amended
In clause 282, after new section 227C(5) (page 174, after line 21), insert:
(5B)
For the purposes of the correction of errors in employment income information that is provided in the transitional period, a regulation-making power is set out in section 46(8) and (9).
Schedule 2 amended
Replace schedule 2, new schedule 5, part A, tax code table, row 1 (page 196, line 30) with:
| 1 | M | for primary employment earnings when the employee is not entitled to a tax credit under section LC 13 of the Income Tax Act 2007 |
| 1B | ME | for primary employment earnings when the employee is entitled to a tax credit under section LC 13 of the Income Tax Act 2007 |