Explanatory note
This Supplementary Order Paper (SOP) proposes minor remedial amendments to the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Bill. In addition to minor remedial amendments, this SOP also proposes:
Income derived for the purposes of the purchase of disability support services is exempt income:
Group companies are included in the ASX-listed companies demerger dividend exemption.
Proposed amendments to clause 2 provide appropriate commencement dates for the relevant proposed changes.
An amendment to clause 5 is proposed to accommodate 3 new tax types in the section 183C use of money interest START regime.
An amendment to clauses 15, new section 17C(1) is proposed, to correct a cross-reference error.
An amendment to clauses 15, new section 17F(6) is proposed, to provide certainty of notice in relation to partnerships in some limited circumstances.
Amendments to clauses 29, 41, 52, 177, 211, 213, 216, and schedule 6 are proposed, to correct cross-reference errors.
Amendments to clauses 42, 95, 96B, 149, 235B, and 236 are proposed, to correct minor faults of expression.
An amendment is proposed to new clause 102B, and its equivalent in new schedule 8, part B, to clarify the class of persons to whom the write off rules apply and to correct a cross reference error.
New clause 118B replaces section CD 29C, to ensure that no dividend arises in relation to section ED 2B ASX-listed company demergers.
New clause 125B inserts a new section CW 52B, to ensure that income derived for the purposes of the purchase of disability support services is exempt income.
New clause 133FB proposes amendments to section ED 2B, to ensure that no dividend arises in relation to ASX-listed company demergers, including where shares are transferred in relation to other wholly-owned group companies as the relevant headline ASX-listed company, as well as where shareholdings are retained within the group.
Amendments to clause 149 are proposed, to correct a minor fault of expression.
Amendments to clauses 153G, 153I, 157C, and a new heading and new clause 258B are proposed, to make minor remedial corrections to international tax provisions related to BEPS.
An amendment to clause 195 clarifies the application of sections RD 5 and CW 62B to Fire and Emergency New Zealand volunteers.
New clause 218(1C) corrects a name in schedule 32.
An amendment to clause 228 corrects a numbering error.
New clause 258B ensures that section 35 of the Taxation (Neutralising Base Erosion and Profit Shifting) Act 2018 has the correct ambit in relation to New Zealand banking groups, as a matter of technical correction.
An amendment to schedule 6 corrects a faulty amending formula.
Departmental disclosure statement
Inland Revenue is required to prepare a disclosure statement to assist with the scrutiny of this SOP. The disclosure statement provides access to information about any material policy changes to the Bill and identifies any new significant or unusual legislative features of the Bill as amended.
Regulatory impact assessment
Inland Revenue has not produced any regulatory impact assessments in relation to the contents of this SOP.