Proposed amendments
Hon Chris Hipkins, in Committee, to move the following amendments:
Clause 2 replaced
Replace clause 2 (page 4, lines 5 to 7) with:
2 Commencement
(1)
This Act comes into force on the day after the date on which it receives the Royal assent, except as provided in this section.
(2)
Schedule 16A, Part 1, clause 2 and schedule 16A, Part 2, clause 8 come into force on 15 April 2020.
(3)
Schedule 16A, Part 1, clauses 3 and 4, and schedule 16A, Part 2, clauses 6, 7, 9 and 10 come into force on 30 April 2020.
New schedule 16A
After schedule 16 (after page 127), insert:
Part 1 Amendments to Income Tax Act 2007
1 Amendments to Income Tax Act 2007
This Part amends the Income Tax Act 2007.
2 Section IZ 8 amended (Election to use net loss for 2019–20 or 2020–21 year as tax loss in preceding year)
(1)
In section IZ 8(1), in the words before the paragraphs, replace “being available”
with “being an available”
.
(2)
In section IZ 8(2)(c), replace “section 3”
with “section 3(1)”
.
(3)
In section IZ 8(8)(c), replace “section IP 4(2)(d) and (4)”
with “section IP 4(4)”
.
(4)
In section IZ 8, list of defined terms, delete “qualifying individual”
.
3 Section MB 13 amended (Family scheme income from other payments)
(1)
After section MB 13(2)(j), insert:
(jb)
a loan made under the small business cashflow scheme:
(2)
In section MB 13, in the list of defined terms, insert “small business cashflow scheme”
.
4 Section YA 1 amended (Definitions)
(1)
This clause amends section YA 1.
(2)
In the definition of exempt interest, insert after paragraph (d):
(db)
payable in relation to a loan made under the small business cashflow scheme; or
(3)
In the definition of small business cashflow scheme, replace “established by the Crown”
with “established and administered by the Crown”
.
Part 2 Amendments to Tax Administration Act 1994
5 Amendments to Tax Administration Act 1994
This Part amends the Tax Administration Act 1994.
6 Section 3 amended (Interpretation)
In section 3(1), in the definition of tax, after paragraph (cb), insert:
(cc)
for the purposes of sections 6, 6A, 6B, 156 to 165, 174AA, 176, 177, and 177A to 177CA, includes an amount payable in relation to a loan made under the small business cashflow scheme:
7 Section 7AA amended (Authorisation to make payments under small business cashflow loan scheme)
(1)
After section 7AA(4), insert:
(4B)
For the purposes of this section, the chief executive of the Ministry of Social Development is authorised to provide the Commissioner with any information relating to the wage subsidy scheme administered by the Ministry.
(4C)
The Commissioner may use the information provided under subsection (4B) in connection with the exercise or performance of any of the Commissioner’s duties, powers, or functions under the Inland Revenue Acts.
(2)
In section 7AA(6), replace the definition of small business cashflow scheme with:
small business cashflow scheme means the Small Business Cashflow (Loan) Scheme established and administered by the Crown to provide loans to assist small-to-medium businesses in the circumstances arising from the continuing impact of COVID-19 related measures or circumstances
wage subsidy scheme means a subsidy scheme that is established as part of the Government’s COVID-19 response measures and which the Ministry administers on behalf of the Government
8 Section 120KBB amended (Interest for most standard method and some estimation method provisional taxpayers)
Replace section 120KBB(1)(c) with:
(c)
the provisional tax associates of the person that are liable to pay provisional tax—
(i)
are interest concession provisional taxpayers:
(ii)
use, for the tax year, the GST ratio method described in section RC 5(6) of the Income Tax Act 2007:
(iii)
use, for the tax year, the estimation method described in section RC 7 of the Income Tax Act 2007, and have elected to use a net loss under section IZ 8 of that Act for the tax year; and
9 Section 157 amended (Deduction of tax from payments due to defaulters)
In section 157(10), in the definition of income tax, paragraph (i), replace “notice under section 101I(5) of the KiwiSaver Act 2006”
with “notice under section 101I(5) of the KiwiSaver Act 2006:”
, and insert:
(j)
an amount payable in relation to a loan made under the small business cashflow scheme
10 Schedule 7 (Disclosure rules) amended
Repeal schedule 7, part C, clause 45B.