Taxation (Venture Capital and Miscellaneous Provisions) Act 2004

1: Title
This Act is the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004.
2: Commencement
1: This Act comes into force on the date on which it receives the Royal assent, except as provided in this section.
2: Sections 22 81(13)(a)(i)
3: Section 77 subsection (4)
4: Subsection (3) section ND 12 section 77
5: Section 152
6: Section 81(19)
7: Sections 31 49 52 to 54 55(1) (4) 56 81(34) 124
8: Section 51
9: Sections 5 40 81(35) 90 109 162
10: Sections 70 to 73
11: Sections 20 21 26 27 33 81(3) 81(20) 81(28) 136 156
12: Sections 4 81(29) 82
13: Sections 34 36 to 43 46 47 69 81(4) (39) 112 137
14: Sections 145 151
15: Sections 13 87 88(3) (5) 111 115 134 138 139 165 250 to 260 261(3) 261(4) 261(8) 261(17) 261(19) 261(22) 261(36) 265 to 269
16: Sections 168 to 249 261(2) 261(5) to (7) 261(9) to (16) 261(18) 261(21) 261(23) to (35) 262 to 264
1: Amendments to
Income Tax Act 1994
3: Income Tax Act 1994 This Part amends the Income Tax Act 1994
4: Non-residents' exempt income
1: In section CB 2(1)(f) company. company:
g: any amount derived by a person from the sale or other disposition by a qualifying foreign equity investor of a share, or option to buy a share, in a company (called in this paragraph the resident company
i: the share or option, or an option or convertible note relating to the share, is purchased on a day that is 12 months or more before the day of the sale or other disposition; and
ii: the person who purchases the share or option, or the option or convertible note relating to the share, and sells or disposes of the share or option is a qualifying foreign equity investor from the time of the purchase to the time of the sale or other disposition; and
iii: the shares of the resident company are quoted on no official list of a recognised exchange—
A: at the time of the purchase referred to in subparagraph (i)
B: at some time in the 12-month period that begins from the time of the purchase referred to in subparagraph (i)
iv: throughout the period referred to in subparagraph (ii)
A: land development:
B: land ownership:
C: mining:
D: provision of financial services:
E: insurance:
F: construction of public infrastructure assets:
G: acquisition of public infrastructure assets:
H: investing with a main aim of deriving, from the investment, gross income in the form of interest, dividends, or lease payments that are not royalties:
h: any amount derived by a person from the sale or other disposition by a qualifying foreign equity investor of a share, or option to buy a share, in a company (called in this paragraph the resident company
i: the share or option, or an option or convertible note relating to the share, is purchased on a day that is 12 months or more before the day of the sale or other disposition; and
ii: the person who purchases the share or option, or the option or convertible note relating to the share, and sells or disposes of the share or option is a qualifying foreign equity investor throughout the period that—
A: begins at the time of the purchase referred to in subparagraph (i)
B: ends on the day of the sale or other disposition; and
iii: the shares of the resident company are quoted on no official list of a recognised exchange at some time in the 12-month period that begins from the time of the purchase referred to in subparagraph (i)
iv: throughout the period referred to in subparagraph (ii)
v: each other company that is referred to in subparagraph (iv)
A: does not have, as a main activity, an activity that is referred to in paragraph (g)(iv)(A) to (C) and (E) to (G)
B: does not have, as a main activity, an activity that is referred to in paragraph (g)(iv)(D) or (H)
C: does not provide capital, directly or indirectly, to a company that is resident in New Zealand and has, as a main activity, an activity that is referred to in paragraph (g)(iv)(A) to (C) and (E) to (G)
D: does not provide capital, directly or indirectly, to a company that is resident in New Zealand and has, as a main activity, an activity that is referred to in paragraph (g)(iv)(D) or (H)
vi: each other company that is referred to in subparagraph (iv) paragraph (g)(iv)(A) to (H)
vii: for each other company that is referred to in subparagraph (iv) subparagraph (ii)
A: the shares of the other company are quoted on no official list of a recognised exchange; and
B: the shares of the resident company are quoted on no official list of a recognised exchange.
2: In section CB 2(4) pleasure craft qualifying foreign equity investor
a: a person who—
i: is resident in a territory that is approved for the purpose of this definition by the Governor-General by an Order in Council; and
ii: is not part of an unincorporated body that satisfies paragraph (b)(i) to (v)
iii: is not a legal entity that satisfies paragraph (c)(i) to (iii)
iv: is treated by the taxation laws of the territory referred to in subparagraph (i)
v: is not a person who—
A: would, under this Act and in the absence of section CB 2(1)(g) and (h) section CB 2(1)(g) or (h)
B: would in any circumstances, under the taxation laws of the territory referred to in subparagraph (i)
b: a person who is a non-resident and is part of an unincorporated body that—
i: is established under the laws of a territory that is approved for the purpose of this definition by the Governor-General by an Order in Council or under the laws of a part of such a territory; and
ii: consists of persons who include the person (called in this paragraph partners
iii: is treated by the taxation laws of the territory, or by the taxation laws of a part of the territory, as not being subject to a tax on income other than as a body that handles income of the partners; and
iv: has at least 1 partner (called in this paragraph a general partner
v: has at least 1 partner (called in this paragraph a special partner
vi: does not have a general partner who is not resident in a territory that is approved for the purpose of this definition by the Governor-General by an Order in Council; and
vii: does not have a partner who—
A: has, when treated as holding the interests of any person who is associated with the partner under section OD 8(1)
B: is resident in a territory that is not approved for the purpose of this definition by the Governor-General by an Order in Council; and
viii: does not have a partner who, when treated as holding the interests of any person who is associated with the partner under section OD 8(1)
A: would, under this Act and in the absence of section CB 2(1)(g) and (h) section CB 2(1)(g) or (h)
B: would in any circumstances, under the taxation laws of the territory in which the partner is resident or under the taxation laws of part of the territory, be entitled to receive from the government of the territory or of the part of the territory a financial benefit in the form of a payment, credit, rebate, forgiveness or other compensation for a payment of the tax referred to in subsubparagraph (A):
c: a person who—
i: is established as a legal entity under the laws of a territory that is approved for the purpose of this definition by the Governor-General by an Order in Council or under the laws of a part of such a territory; and
ii: has persons (called in this paragraph members
iii: is treated by the taxation laws of the territory referred to in subparagraph (i)
iv: is resident in no territory that has laws that treat the legal entity as being subject to a tax on income other than as a body that handles income of the members; and
v: does not have a member who—
A: has, when treated as holding the interests of any person who is associated with the member under section OD 8(1)
B: is not resident in a territory that is approved for the purpose of this definition by the Governor-General by an Order in Council; and
vi: does not have a member who, when treated as holding the interests of any person who is associated with the member under section OD 8(1)
A: would be entitled to receive an amount derived from a sale or other disposition, to which section CB 2(1)(g) or (h)
B: would receive an amount referred to in subsubparagraph (A) that, in the absence of section CB 2(1)(g) and (h)
C: would in any circumstances, under the taxation laws of the territory in which the member is resident or under the taxation laws of part of the territory, be entitled to receive from the government of the territory or of the part of the territory a financial benefit in the form of a payment, credit, rebate, forgiveness or other compensation for the reduction referred to in subsubparagraph (B).
3: After section CB 2(5)
6: For the purpose of subsection (1)(g) and (h) qualifying foreign equity investor subsection (4)
a: in the presence of a double tax agreement between New Zealand and the territory that is in force under the terms of the double tax agreement, under the double tax agreement:
b: in the absence of a double tax agreement between New Zealand and the territory that is in force under the terms of the double tax agreement, under the laws of the territory.
7: The Governor-General may, from time to time by Order in Council—
a: approve a territory for the purpose of the definition of qualifying foreign equity investor subsection (4)
b: withdraw the approval of a territory for the purpose of the definition of qualifying foreign equity investor subsection (4)
8: An Order in Council under subsection (7)
a: come into force on a date that is not earlier than 1 April 2004:
b: apply for income years that do not precede the 2004-05 income year.
5: Other exempt income
1: After section CB 9(g)
gb: any amount derived from providing a standard-cost household service if—
i: the amount does not exceed the total amount of the costs that, under a determination of the Commissioner under section 91AA of the Tax Administration Act 1994
ii: the taxpayer, in calculating the taxpayer's income tax liability for the income year, elects to include in the taxpayer's annual allowable deductions no amount that, in the absence of this paragraph, would be an allowable deduction incurred by the taxpayer in providing the standard-cost house-hold service: .
2: Subsection (1)
6: Meaning of term
dividends
1: Section CF 2(1)(i)
i: all distributions by a unit trust to a unit holder and all other payments to and transactions with a unit holder, in relation to the unit holder's interest in the unit trust, that—
i: would be dividends if made to or with a shareholder in relation to shares in a company; and
ii: are not the transfer to the unit holder of money or property referred to in paragraph (ib)
ib: money or property, of a unit trust that is a foreign company, in which a beneficial interest vests absolutely in a unit holder: .
2: After section CF 2(6)(a)
ab: a taxable bonus issue, within the meaning of paragraph (c) .
3: Subsections (1) (2)
7: Exclusions from term dividends
1: Section CF 3(2)(c)(ii)
ii: the available subscribed capital per share will be deemed to be equal to—
A: the value of the money or property in which a beneficial interest would have vested in the shareholder had the share not been issued, if the share is a taxable bonus issue within the meaning of paragraph (c)
B: the amount paid to the trust in respect of the issue of the share, if subsubparagraph (A) does not apply.
2: Subsection (1)
8: Election whether bonus issue taxable
In the words before section CF 8(a) or a distribution that satisfies paragraph (c) taxable bonus issue bonus issue in lieu
9: Branch equivalent income calculation
1: In section CG 11(7) , DO 4B, DO 4C, DO 4D, DO 4
2: Subsection (1)
10: Cases where assessable income calculation cannot be undertaken
In the heading to section CG 25 assessable income foreign attribution
11: Certain withdrawal amounts are gross income of superannuation fund
1: In section CL 4(2)
a: the formula is replaced by the following:
b: after where— withdrawal other contributions .
2: Section CL 4(6)
3: Subsections (1) (2)
12: Exception for withdrawal when member ceases employment
Section CL 8(2)
2: Subsection (3)
a: the member has been in employment throughout the period (called in this subsection and subsection (2B) minimum employment period
i: begins on the 1st day of the 2nd-to-last of the income years that end on or before the day on which the member ceases employment; and
ii: ends on the day on which the member ceases employment; and
b: the employer or another employer has made, on behalf of the member, specified superannuation contributions that—
i: have been made to the superannuation fund or to another superannuation fund that has transferred to the superannuation fund, whether directly or indirectly, the funds relating to the member; and
ii: have not been part of a withdrawal, other than as a result of a transfer between superannuation funds that is referred to in subparagraph (i)
c: the specified superannuation contributions that are part of the withdrawal—
i: satisfy subsection (2B)
ii: do not include employer contributions to superannuation savings that exceed the amount found by multiplying $5,000 by the number of income years for which the specified superannuation contributions were made on behalf of the member.
2B: Specified superannuation contributions that are made on behalf of a member satisfy this subsection if—
a: the contributions have been made for all or part of the minimum employment period and—
i: have not, for each of the complete income years in the minimum employment period, been 150% or more of the specified superannuation contributions made on behalf of the member in the previous income year; and
ii: do not, for the income year in which the member ceases employment, have an annualised value that is 150% or more of the specified superannuation contributions made on behalf of the member in the previous income year:
b: the contributions have been made for all or part of the minimum employment period and the Commissioner considers that the contributions made by each employer are—
i: consistent in size and frequency with the specified superannuation contributions made by the employer on behalf of other employees in comparable positions; and
ii: consistent in size and frequency during the period or periods to which the specified superannuation contributions relate.
13: Expenditure relating to determination of liability to tax
In section DJ 5(4) paragraph (b)(i) goods and services tax payable section 27(6) section 51B
14: Patent expenses
1: Before section DJ 6(1)
1A: A taxpayer who applies for the grant of a patent and is refused the grant or withdraws the application is allowed, in the income year of the refusal or withdrawal, a deduction for expenditure—
a: that the taxpayer incurs in relation to the application; and
b: that would have been part of the cost of fixed life intangible property if the application had been granted; and
c: for which the taxpayer is not allowed a deduction under another provision.
2: Subsection (1)
15: New
section DJ 11B After section DJ 11
DJ 11B: Expenditure incurred by company in respect of dividend from foreign company
Despite section BD 2(2)(b) section CB 10(1)
a: the amount of expenditure, if the company is not a conduit tax relief company:
b: the amount calculated using the following formula if the company is a conduit tax relief company: a x (1 -- b) where—
a: is the amount of the expenditure incurred by the company in deriving the dividend
b: is the fraction of the company's shareholders that are not resident in New Zealand, as calculated under section NH 7(2) and (4)
16: New
section DJ 14B
1: After section DJ 14
DJ 14B: Expenditure on unsuccessful application for resource consent
A taxpayer who applies for the grant of a resource consent under the Resource Management Act 1991
a: that the taxpayer incurs in relation to the application; and
b: that would have been part of the cost of a resource consent that is depreciable property if the application had been granted; and
c: for which the taxpayer is not allowed a deduction under another provision.
2: Subsection (1)
17: Expenditure on land improvements used for farming or agriculture
1: In section DO 4
a: in subsection (1) Subject to sections DO 4B, DO 4C and DO 4D Any taxpayer
b: in subsection (2) Subject to sections DO 4B, DO 4C and DO 4D Any taxpayer
c: in subsection (4) vines or trees non-listed horticultural plants
2: Subsection (1)
18: New
sections DO 4B to DO 4D
1: After section DO 4
DO 4B: Accounting for expenditure on listed horticultural plants under
sections DO 4C and DO 4D
1: In this section and sections DO 4C and DO 4D planting sections DO 4C and DO 4D plot replaced area fraction where—
a: is the area, at the end of the income year, of the part of the plot on which listed horticultural plants in the planting are planted or regrafted during the income year as replacement plants
b: is the total area, at the end of the income year, of the plot.
2: Subject to subsection (3) section DO 4C section DO 4D sections DO 4C and DO 4D
a: the taxpayer acquires in the income year; and
b: benefit the business of the taxpayer in the income year; and
c: are not replacement plants.
3: A taxpayer to whom section DO 4C section DO 4D sections DO 4C and DO 4D
DO 4C: Expenditure on land-planting of listed horticultural plants
1: This section applies to a taxpayer if—
a: the taxpayer carries on a farming or agricultural business (including a horticultural business) on land in New Zealand; and
b: the land is developed by the planting on the land of listed horticultural plants.
2: Subject to subsection (3)
3: The taxpayer does not have an allowable deduction under subsection (2)
a: if the taxpayer owns the land, the taxpayer disposes of the land; or
b: if the taxpayer does not own the land, the taxpayer ceases carrying on the business on the land.
4: Subject to subsections (5) and (6) 1.2 x a × b where—
a: is the percentage rate determined for the type of listed horticultural plant by the Commissioner under section 91AAB of the Tax Administration Act 1994
b: is the diminished value of the expenditure.
5: If a listed horticultural plant of the taxpayer ceases in an income year to exist or to be used in deriving gross income and the taxpayer has no allowable deduction under section DO 4D
a: of the amount of the diminished value of the expenditure on the listed horticultural plant at the time that the listed horticultural plant ceases to exist or to be used in deriving income:
b: for the income year.
6: A taxpayer who has an allowable deduction under section DO 4D
a: elect to increase the diminished value, at the end of the income year, of the expenditure on listed horticultural plants that are in the planting at the end of the income year by the diminished value, immediately before the replacement, of the expenditure on a listed horticultural plant that is replaced; and
b: choose a method of making the increase referred to in paragraph (a)
DO 4D: Expenditure on land—horticultural replacement planting
1: This section applies to a taxpayer who carries on a horticultural business on land in New Zealand and who, in an income year (called the current income year
a: plants, or causes to be planted, on the land a listed horticultural plant as a replacement plant:
b: regrafts, or causes to be regrafted, a listed horticultural plant on the land as a replacement plant.
2: The taxpayer has an allowable deduction for the current income year, of the amount given by one of subsections (3) and (4)
a: the replacement plant benefits the business; and
b: the taxpayer does not dispose of the land on which the listed horticultural plant is cultivated; and
c: the taxpayer elects, by taking a tax position in a tax return for the current year, that this section apply to the expenditure.
3: For a taxpayer who has had no allowable deduction under this section for either or both of the 2 income years that immediately precede the current income year, the amount of the allowable deduction under subsection (2) where—
c: is the amount of the expenditure incurred by the taxpayer
d: is the greater of 7.5% and the replaced area fraction for the planting for the current year.
4: For a taxpayer who has had an allowable deduction under this section for a planting for both of the 2 income years that immediately precede the current income year, the amount of the allowable deduction under subsection (2)
a: the amount that is calculated using the formula where—
c: is the amount of the expenditure incurred by the taxpayer
d: is the greater of 7.5% and the replaced area fraction for the planting for the current year:
b: the amount that is calculated using the formula: where—
c: is the amount of the expenditure incurred by the taxpayer
e: is the replaced area fraction for the planting for the current year
f: is the smaller of 7.5% and the replaced area fraction for the planting for the earlier of the 2 income years that immediately precede the current year
g: is the smaller of 7.5% and the replaced area fraction for the planting for the later of the 2 income years that immediately precede the current year.
2: Subsection (1)
19: Amalgamated company entitled to deductions for farming, agriculture, and aquaculture expenditure
1: In section DO 8(c) or section DO 5 , DO 4C, DO 4D or DO 5
2: Subsection (1)
20: Accrual expenditure
1: Section EF 1(5)(a)
a: where the expenditure relates to the purchase of goods, the amount of expenditure incurred on goods that—
i: are not used in deriving gross income; and
ii: are not destroyed or rendered useless for the purpose of deriving gross income: .
2: Subsection (1)
21: Disposition of depreciable property
1: Section EG 19(3)
3: Subject to subsection (4)
a: is not a building; or
b: is a building that is destroyed or rendered useless for the purpose of deriving gross income as a result of an event that is a qualifying event under paragraph (a) or (b)
2: Subsection (1)
22: Deduction to lessee in non-specified lease
1: In section EO 2(1) or a finance lease specified lease
2: In section EO 2(2) or a finance lease specified lease
23: Application of subpart
1: In section ES 1(1)(b)
a: in the words before subparagraph (i)(A) or losses
b: subparagraph (i)(B)
B: net losses of a loss attributing qualifying company, to the extent that shareholders with effective interests in the company are deemed under section HG 16 :
c: in subparagraph (ii) and losses
2: In section ES 1(1)(e)(i) date: date; and
3: In section ES 1(1)(e)(ii)(F) section CH 2 section CH 2
G: shares in a foreign company, if the proceeds of a disposition of the shares would not be gross income of the holder other than under the FIF rules.
4: In section ES 1(2) gross income, allowable deductions and losses gross income and allowable deductions
5: In section ES 1(3) gross income, allowable deductions and losses gross income and allowable deductions
6: Subsections (1) to (5) subsection (7)
7: Subsections (1) to (5)
a: at the time of entering the arrangement, the participant could reasonably expect that 10 or more persons would acquire an interest in the arrangement; and
b: 70% or more of the allowable deductions of the participant from the arrangement for the income year, calculated on the same basis as for section ES 1(1)(b)(i) of the Income Tax Act 1994 subsection (1)
i: fixed life intangible property:
ii: software.
24: Defined terms for subpart
1: In section ES 2(3)(c) subparagraph (i) a purpose or effect of achieving
2: Section ES 2(3)(d)
d: involves money that is provided by—
i: a lender who is not an associated person of the borrower under a provision of section OD 7 or OD 8(3)
A: is not a person who regularly provides money to persons on arm's-length terms under arrangements that do not satisfy paragraphs (a) to (c)
B: is not resident in New Zealand under section OE 1 or OE 2
ii: a lender who is an associated person of the borrower under a provision of section OD 7 or OD 8(3) paragraphs (a) to (c)
3: Subsection (2) subsection (4)
4: Subsection (2)
a: at the time of entering the arrangement, the participant could reasonably expect that 10 or more persons would acquire an interest in the arrangement; and
b: 70% or more of the allowable deductions of the participant from the arrangement for the income year, calculated on the same basis as for section ES 1(1)(b)(i) of the Income Tax Act 1994 section 23(1)
i: fixed life intangible property:
ii: software.
25: Deferral of surplus allowable deductions from arrangement
1: In section ES 3(1)
a: paragraph (a)(i)
i: allowable deductions, including any allowable deduction under subsection (3) or section HG 16 :
b: in paragraph (a)(ii) and losses
c: paragraph (b)(i)
i: allowable deductions, including any allowable deduction under subsection (3) or section HG 16 :
d: in paragraph (b)(ii) and losses
2: In section ES 3(2)
a: the definitions of items a b
a: is the amount for the income year by which the allowable deductions, including any allowable deduction under subsection (3) or section HG 16
b: is the total amount for the income year by which the allowable deductions, including any allowable deduction under subsection (3) or section HG 16
a: the participant; and
b: the affected associates of the participant who are not a loss attributing qualifying company and who each have for the income year allowable deductions, including any allowable deduction under subsection (3) or section HG 16 .
b: paragraph (a) c
a: the total amount for the income year by which the allowable deductions, including any allowable deduction under subsection (3) or section HG 16
i: the participant; and
ii: the affected associates of the participant who are not a loss attributing qualifying company that has incurred a net loss from the arrangement for the income year; and .
3: Subsections (1) (2) subsection (4)
4: Subsections (1) (2)
a: at the time of entering the arrangement, the participant could reasonably expect that 10 or more persons would acquire an interest in the arrangement; and
b: 70% or more of the allowable deductions of the participant from the arrangement for the income year, calculated on the same basis as for section ES 1(1)(b)(i) of the Income Tax Act 1994 section 23(1)
i: fixed life intangible property:
ii: software.
26: Section EZ 9
1: Section EZ 9
EZ 9: New start grants for farmers
1: This section applies to a taxpayer if—
a: the taxpayer carries on a business of—
i: animal husbandry:
ii: poultry-keeping:
iii: beekeeping:
iv: breeding horses other than bloodstock:
v: horticulture:
vi: cropping; and
b: the taxpayer is paid a new start grant in respect of the business for an event that is a qualifying event; and
c: the taxpayer in carrying on the business incurs, before the declaration of the state of emergency that relates to the qualifying event, a liability—
i: to make a payment under a financial arrangement:
ii: for expenditure or loss that is, before the date that is 3 months after the expiration of the state of emergency, taken into account in calculating the taxpayer's taxable income for an income year:
d: as a prerequisite for the payment of the new start grant and on or before 30 September 2005, the liability referred to in paragraph (c)
e: but for this section, the amount of the remitted liability would be gross income of the taxpayer under the accrual rules or under section CE 4
2: The amount of a remitted liability referred to in subsection (1)
a: against a loss that is incurred by the taxpayer in carrying on the business in the income year in which the liability is remitted:
b: under section IE 1, IE 2 or IF 1
c: under subsection (3)
3: The Commissioner may, despite sections IE 1, IE 2 and IF 1 subsection (1)
a: the other person and the taxpayer are associated persons; and
b: the other person—
i: also carries on or has carried on the business in respect of which the new start grant is paid; or
ii: is or was the owner of an estate in fee simple or leasehold estate in land used in the business in respect of which the new start grant is paid; and
c: the Commissioner is satisfied that the taxpayer has—
i: a substantial degree of control over the other person:
ii: a substantial identity of interests with the other person; and
d: the loss of the other person is—
i: incurred in respect of the business or the land that is used in the business; and
ii: of a kind referred to in subsection (2)(a) and (b)
4: In determining the amount that is set off under subsection (3)
5: The Commissioner must give to the associated person notice in writing of a determination under subsection (3)
2: Subsection (1)
27: New
section EZ 9B
1: After section EZ 9
EZ 9B: Deduction for diminished value of expenditure on improvements destroyed or rendered useless by qualifying event
Subject to section DJ 1 Schedule 7
a: the taxpayer or another person incurred the expenditure on improvements in preparing or developing a business or land that is used in a business; and
b: the improvements were destroyed or rendered useless for the purpose of deriving gross income as a result of an event that is a qualifying event under paragraph (a) or (b)
c: the taxpayer would have been entitled for the income year to a deduction under section DL 2, DO 4 or DO 5
2: Subsection (1)
28: Rules for lease asset during term of finance lease
1: In section FC 8B(2) before or on the date
2: In section FC 8B(3) at the end of the lease term by the date that the lease term ends
3: Subsections (1) (2)
29: Taxation of hire purchase agreements
In section FC 10(8)(a) consideration paid to the lessee for the hire purchase agreement consideration provided to the lessee under the hire purchase agreement
30: Special provisions relating to dispositions of property
1: In section FD 10(3)(b) DO 4C, DO 4D, DO 4,
2: Subsection (1)
31: Companies that may constitute imputation group
1: Section FDB 1(1)(e)
2: After section FDB 1(2)(a)
ab: all members of the consolidated group are or would be members of the imputation group; and .
3: In section FDB 1(2)(b) subparagraph (i) for an imputation group that contains or will contain members of more than 1 consolidated group, all of the consolidated groups have been part of a single wholly-owned group of companies throughout the period that—
32: Income assessable to beneficiaries
In the heading to section GC 14 assessable to of
33: Sale of trading stock for inadequate consideration
1: In the heading to section GD 1 Sale Sale or other disposition
2: Section GD 1(4)
4: This section does not apply in respect of any trading stock that—
a: is transferred to a person under a relationship agreement; or
b: is donated, or supplied for consideration worth less than the market value of the trading stock, to a person as a result of an event that is a qualifying event under paragraph (a) or (b)
3: Subsections (1) (2)
34: Part HC repealed
1: Part HC is repealed.
2: Subsection (1)
35: Gross income assessable to beneficiaries
In the heading to section HH 3 assessable to of
36: Election to become Maori authority
1: Section HI 3(3)
3: A person who elects to become a Maori authority becomes a Maori authority—
a: on the first day of the income year in which the person gives notice of the election to the Commissioner, if paragraph (b)
b: on the first day of the income year immediately succeeding the income year in which the person gives notice of the election to the Commissioner, if the person nominates that date in the notice of the election.
2: Subsection (1)
37: Distributions by Maori authority
1: In section HI 4(1)(e) consideration. consideration:
f: a taxable bonus issue.
2: Subsection (1)
38: Amount distributed to member by Maori authority
1: After section HI 5(3)
4: A taxable bonus issue that is made by a Maori authority to a member is a taxable Maori authority distribution.
2: Subsection (1)
39: Table HI 8—Transitional rules
1: In the transitional rules in Table HI 8, row 4 is replaced by the following: 4 a Maori authority a trust that is not a Maori authority taxable income derived by the Maori authority is treated as trustee income
2: Subsection (1)
40: No offset in calculating some income tax liabilities
1: Section ID 1(2)
2: Subsection (1)
41: Net losses may be offset against future net income
1: After section IE 1(2)
2B: A taxpayer who is a partner in a special partnership may not under this section carry forward a net loss if—
a: the taxpayer has a deduction in an income year that arises from the activities of the special partnership; and
b: the net loss arises from the deduction; and
c: during the income year, the taxpayer derives no gross income, whether from the activities of the special partnership or otherwise.
2C: A taxpayer may not carry forward under this section a net loss to the extent that the net loss is offset against a remitted amount of an associated person as determined by the Commissioner under section EZ 9
2: Subsection (1)
42: Net loss offset between group companies
1: Section IG 2(2)(a)(i)
i: a net loss for the year of offset that does not consist of a mining outgoing excess and is not prevented by section IE 1(2B) or (2C) sections IE 1 and IF 1 .
2: Subsection (1)
43: Rebate for gifts of money
1: In section KC 5(1)(cl) Zealand. Zealand:
cm: Medicine Mondiale:
cn: New Zealand Jesuits in India Trust:
co: Operation Vanuatu Charitable Trust.
2: Subsection (1)
44: Granting of underlying foreign tax credit
1: After section LF 2(2)(d)
db: if the company, as a result of the payment of the dividend, is liable to pay no income tax in relation to an amount, or part of an amount, from which the dividend is sourced; or .
2: Subsection (1)
45: New Part MBC inserted
1: After Part MBB, the following is inserted:
BC: Early-payment discount of income tax
MBC 1: Purpose
1: The purpose of this subpart is to encourage, by means of a discount of income tax, payments of amounts as income tax by small-business taxpayers in the income year that precedes the income year in which the taxpayers are first required to pay provisional tax.
2: In this subpart— early-payment discount small-business taxpayer
a: conducts a business on the taxpayer's own account, acting alone or as a partner in a partnership; and
b: does not use a company or a trust in the conduct of the business; and
c: derives gross income that is predominantly—
i: from the business; and
ii: not interest, dividends, royalties, rents or beneficiary income.
MBC 2: Availability of early-payment discount
1: This section applies to a small-business taxpayer for an income year if the small-business taxpayer—
a: is not required to make payments of provisional tax in the income year; and
b: on or before the taxpayer's balance date for the income year, makes payments as income tax for the income year; and
c: throughout the period from the taxpayer's balance date for the income year to the taxpayer's terminal tax date for the income year, has a credit in an account with the Commissioner that is greater than or equal to the lesser of the following:
i: the amount that, on or before the small-business taxpayer's balance date for the income year, the small-business taxpayer pays as income tax for the income year:
ii: the amount of terminal tax for the income year for which the taxpayer would be liable in the absence of this section; and
d: has, for earlier income years—
i: never been required to make payments of provisional tax and—
A: never received an early-payment discount; or
B: derived gross income from a business at no time in a period of 4 income years that began after the latest income year for which the small-business taxpayer received an early-payment discount; or
ii: derived gross income from a business at no time in a period of 4 income years that began after the latest income year for which the small-business taxpayer was required to make payments of provisional tax.
2: If a small-business taxpayer to whom this section applies makes a return of income for the income year and applies for an early-payment discount, the Commissioner must credit the income tax account of the small-business taxpayer with an early-payment discount found by multiplying the discount rate referred to in subsection (4)
a: the amount that, on or before the small-business taxpayer's balance date for the income year, the small-business taxpayer paid as income tax for the income year:
b: 105% of the small-business taxpayer's residual income tax for the income year.
3: The small-business taxpayer must make the application required by subsection (2) section 37(5) of the Tax Administration Act 1994
4: The discount rate is—
a: 6.7% if no rate is prescribed under paragraph (b)
b: the rate prescribed by the Governor-General by Order in Council.
MBC 3: Credit treated as being payment as income tax
A credit of an early-payment discount for a small-business taxpayer for an income year is treated as being a payment made on the day after the last day of the income year by the small-business taxpayer as income tax for the income year.
2: Subsection (1)
46: Refund of excess tax
1: Section MD 1(1)
1: Subject to sections MD 2, MD 2A, MD 2B, MD 3 and NH 4, and subsection (2)
a: the Commissioner is satisfied that the amount represents an excess over the tax properly payable by the taxpayer; and
b: the 4-year period referred to in section 108 of the Tax Administration Act 1994
2: Section MD 1(2)
2: Subject to sections MD 2, MD 2A, MD 2B, MD 3, and NH 4
a: the taxpayer paid the amount as a result of an amendment to an assessment that increased the amount of tax payable by the taxpayer; and
b: the Commissioner is satisfied that the amount represents an excess over the tax properly payable by the taxpayer; and
c: the 4-year period beginning at the end of the income year in which the assessment was amended has not expired.
2B: The Commissioner may refund an amount of an overpayment of tax that is referred to in subsection (1) or (2)
a: the overpayment arises from—
i: a clear mistake or simple oversight of the taxpayer:
ii: an entitlement of the taxpayer to a rebate of income tax under Part KD; and
b: the refund is made—
i: within the period of 4 years beginning from the end of the 4-year period referred to in the subsection:
ii: as a result of an application by or on behalf of the taxpayer that the Commissioner receives before or within the period of 4 years beginning from the end of the 4-year period referred to in the subsection.
3: Subsections (1) (2)
47: Limits on refunds of tax in relation to Maori authorities
1: In section MD 2B(1)(a) the end unless subsection (1B)
2: After section MD 2B(1)
1B: Despite subsection (1)(a) section MD 1
a: the Maori authority has furnished the Maori authority credit account return within an extension of time given by the Commissioner; and
b: the amount of the refund does not exceed the credit balance in the Maori authority's Maori authority credit account on the last day of the imputation year for which the Maori authority credit account return was furnished.
3: In section MD 2B(4) If income Unless subsection (4B)
4: After section MD 2B(4)
4B: Despite subsection (4) Part 7 of the Tax Administration Act 1994
5: Subsections (1) to (4)
48: Application of income tax or dividend withholding payments not refunded
1: This section amends section MD 4 section 41 Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003
2: Section MD 4
2: Subsection (1) permitted credit subsection (3)
a: a company or consolidated group is entitled to a refund of overpaid income tax or overpaid dividend withholding payment; and
b: the Commissioner transfers the refundable amount to another period or another tax type; and
c: after the overpayment that gives rise to the entitlement to a refund and before the transfer, a debit in the imputation credit account or dividend withholding payment account arises under section ME 5(1)(i), ME 12(1)(h), MG 5(1)(i) or MG 15(1)(i)
d: a credit would have arisen to the account of the company or consolidated group in the event that—
i: the refundable amount had been refunded by the Commissioner at the time of the transfer; and
ii: the company or consolidated group had immediately paid the amount of the refund to the Commissioner in payment of a tax liability for the other period or tax type; and
e: the company or consolidated group requests at any time that this subsection apply to the transfer of the refundable amount.
3: The amount of the permitted credit to which subsection (2) subsection (2)(d) section ME 5(1)(e), ME 12(1)(d), MG 5(1)(d) or MG 15(1)(d) subsection (2)(d)(i)
3: Subsection (2)
49: Companies required to maintain imputation credit account
Section ME 1(2)(a)
a: resident in a country other than New Zealand; or .
50: Companies electing to maintain imputation credit account
Section ME 1B(4)(a)
a: for the purpose of section ME 6
i: the date that is 30 days after the date on which the Commissioner receives the notice, if none of subparagraphs (ii) to (iv)
ii: 1 October 2003, if the Commissioner receives the notice before 1 April 2004 and notifies the company that the notice is effective from 1 October 2003; or
iii: 1 April 2004, if the Commissioner receives the notice before 1 April 2005 and notifies the company that the notice is effective from 1 April 2004; or
iv: the beginning of the imputation year in which the Commissioner receives the notice, if the company is formed in the imputation year or becomes eligible under this section in the imputation year and the Commissioner notifies the company that the notice is effective from the beginning of the imputation year: .
51: Amount of dividend for imputation rules if paid in Australian currency
In section ME 1C a × b
52: Consolidated imputation group to maintain separate imputation credit account
Section ME 10(1D)(b)
b: arise in relation to a company that, at the time the debit or credit arises—
i: will be a member of the resident imputation sub-group, if the debit or credit arises before the formation of the resident imputation subgroup:
ii: is a member of the resident imputation subgroup, if the debit or credit arises at or after the formation of the resident imputation subgroup.
53: Credits arising to imputation credit account of group
1: After section ME 11(1)(f)
fb: an amount forming all or part of a credit balance in the dividend withholding payment account of a company that is a member of the consolidated imputation group, if the company elects under section MG 11 .
2: After section ME 11(1)(j)
jb: an amount forming all or part of a credit balance in the policyholder credit account of a company, if the company elects under section ME 19(3)(a) .
3: In section ME 11(2)(d) paragraphs (g) and (k) paragraphs (fb), (g) and (k)
4: After section ME 11(2)(e)
eb: in the case of the credit referred to in paragraph (jb) of that subsection section ME 18(4)(b) .
54: Debits arising to imputation credit account of group
Section ME 12(1)(b)
b: an amount forming all or part of a credit balance in the imputation credit account of the consolidated imputation group, if the nominated company of the consolidated imputation group elects under section ME 14(1) .
55: Credits and debits arising to policyholder credit account of company
1: In section ME 18(1)(a)
a: under section ME 7
b: in subparagraph (i) under section ME 14 nominated company
c: in subparagraph (ii) under section ME 7 the company,
2: After section ME 18(1)(b)
bb: an amount equal to any allocation deficit debit that arises in the company's dividend withholding payment account under section MG 8B section MG 8B(3)(a)
bc: an amount equal to the credit balance in the company's dividend withholding payment account immediately before an allocation deficit debit arises in the company's dividend withholding payment account under section MG 8B section MG 8B(3)(b) .
3: After section ME 18(2)(b)
bb: in the case of a credit referred to in paragraph (bb) or (bc) of that subsection .
4: In section ME 18(3)(b)
a: in subparagraph (i) and not a member of a consolidated group
b: in subparagraph (ii) or of a consolidated group that is a consolidated imputation group
5: In section ME 18(4)(b) company's imputation credit account imputation credit account of the company or imputation group
6: Subsections (2) (3)
7: Subsections (2) (3) section MG 8B of the Income Tax Act 1994
8: Subsections (2) (3) section MG 8B of the Income Tax Act 1994
56: Election to use credit balance as credit against policyholder base income tax liability or as credit in imputation credit account
1: In section ME 19(3)(a) and not a member of a consolidated group
2: In section ME 19(3)(b) or of a consolidated group that is a consolidated imputation group
3: In section ME 19(4)(b)(i) and not a member of a consolidated group
4: In section ME 19(4)(b)(ii) , if the company is not a member of an imputation group or of a consolidated group that is a consolidated imputation group
57: Credits and debits arising to group policyholder credit account
1: After section ME 26(2)(c)
d: an amount equal to any allocation deficit debit that arises in the consolidated group's dividend withholding payment account under section MG 8B section MG 8B(3)(a)
e: an amount equal to the credit balance in the consolidated group's dividend withholding payment account immediately before an allocation deficit debit arises in the consolidated group's dividend withholding payment account under section MG 8B section MG 8B(3)(b) .
2: After section ME 26(3)(c)
d: in the case of a credit referred to in paragraph (d) or (e) of that subsection .
3: Subsections (1) (2)
4: Subsections (1) (2) section MG 8B of the Income Tax Act 1994
58: Credits and debits arising to branch equivalent tax account of company
1: In section MF 4(2)(a) or paragraph (b)
2: Subsection (1) subsection (3)
3: Subsection (1)
a: the taxpayer has, before 26 June 2003, filed a return of income for the income year; and
b: the return of income relies on section MF 4 of the Income Tax Act 1994 section 60 Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003
59: Use of credit to reduce dividend withholding payment, or use of debit to satisfy income tax liability
1: Section MF 5(2)
2: Section MF 5(6B)
6B: If an election under subsection (4) subsection (6) Parts IF and IG where—
a: is the amount of the excess
b: is the basic rate of income tax, expressed as a percentage, stated in—
a: Schedule 1, Part A, clause 5
b: Schedule 1, Part A, clause 2
3: Subsections (1) (2) subsection (4)
4: Subsections (1) (2)
a: the taxpayer has, before 26 June 2003, filed a return of income for the income year; and
b: the return of income relies on section MF 5 of the Income Tax Act 1994 section 61 Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003
60: Debits and credits arising to group branch equivalent tax account
1: In section MF 8(2)(a)
a: in the definition of item d or LC 5 , LC 5 or LC 16
b: in the definition of item e companies that are members of the consolidated group other companies
2: In section MF 8(3)(a)
a: the credits referred to in paragraphs (a) and (b) a credit referred to in paragraph (a)
b: those paragraphs that paragraph
3: Subsections (1) (2) subsection (4)
4: Subsections (1) (2)
a: the taxpayer has, before 26 June 2003, filed a return of income for the income year; and
b: the return of income relies on section MF 8 of the Income Tax Act 1994 section 63 Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003
61: Use of consolidated group credit to reduce dividend withholding payment, or use of group or individual debit to satisfy income tax liability
1: Section MF 10(2)
2: Section MF 10(5B)
5B: If an election under subsection (3) or (4) subsection (5) Parts IF and IG where—
a: is the amount of the excess
b: is the basic rate of income tax, expressed as a percentage, stated in—
a: Schedule 1 clause 5
b: Schedule 1 clause 2
3: Subsections (1) (2) subsection (4)
4: Subsections (1) (2)
a: the taxpayer has, before 26 June 2003, filed a return of income for the income year; and
b: the return of income relies on section MF 10 of the Income Tax Act 1994 section 64 Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003
62: Debits arising to dividend withholding payment account
1: In section MG 5(1)(c) company's imputation credit account imputation credit account of the company or of an imputation group to which the company belongs
2: In section MG 5(1)(f) section MG 8 section MG 8(4)
3: In section MG 5(1)(g) section MG 8(5) section MG 8B
4: Subsection (3)
5: Subsection (3) section MG 8B of the Income Tax Act 1994
6: Subsection (3) section MG 8B of the Income Tax Act 1994
63: Allocation rules for dividend withholding payment credits
1: Section MG 8(5) to (7)
2: Subsection (1)
3: Subsection (1) section MG 8B of the Income Tax Act 1994
4: Subsection (1) section MG 8B of the Income Tax Act 1994
64: New
section MG 8B After section MG 8
MG 8B: Policyholder credit account companies and dividend withholding payment credits
1: This section applies to a policyholder credit account company (called the company dividend year
2: An allocation deficit debit of an amount given by subsection (3)
a: the total of the amounts of the company's policyholder income and policyholder net loss for the DWP reference period, found using the policyholder base calculation for each imputation year, is greater than nil; and
b: the shareholder DWP ratio for the DWP reference period exceeds the policyholder DWP ratio for the DWP reference period.
3: The amount of the allocation deficit debit that arises under subsection (2)
a: equal to the maximum deficit debit, if the maximum deficit debit is less than or equal to the credit balance that is in the company's dividend withholding payment account immediately before any allocation deficit debit arises under this section:
b: equal to the reduced deficit debit, if paragraph (a)
4: In this section— DWP reference period
a: the dividend year:
b: the longest period of consecutive imputation years—
i: that begins on or after the date on which this section applies for the company; and
ii: that ends immediately before the dividend year; and
iii: in which the company paid no dividend that had a dividend withholding payment credit attached maximum deficit debit (a - b) x d x (1 - r) where—
a: is the company's shareholder DWP ratio for the DWP reference period:
b: is the company's policyholder DWP ratio for the DWP reference period:
d: is the total of the amounts of the company's policy-holder income and policyholder net loss found for the DWP reference period using the policyholder base calculation:
r: is the basic rate of income tax, expressed as a percentage, stated in—
a: Schedule 1 clause 5
b: Schedule 1 clause 2 policyholder DWP ratio where—
c: is the total for the DWP reference period of all the credits that have arisen in the company's policyholder credit account as a result of an election by the company under section MG 7
d: is the total of the amounts of the company's policy-holder income and policyholder net loss found for the DWP reference period using the policyholder base calculation
r: is the basic rate of income tax, expressed as a percentage, stated in—
a: Schedule 1, Part A, clause 5
b: Schedule 1, Part A, clause 2 reduced deficit debit where—
c: is the total for the DWP reference period of all the credits that have arisen in the company's policyholder credit account as a result of an election by the company under section MG 7
d: is the total of the amounts of the company's policy-holder income and policyholder net loss found for the DWP reference period using the policyholder base calculation
e: is the credit balance in the company's dividend withholding payment account at the end of the dividend year immediately before any allocation deficit debit arises under this section
f: is the total amount of DWP credits that the company has attached to dividends paid by the company in the DWP reference period
g: is the total amount of dividends paid by the company in the DWP reference period
r: is the basic rate of income tax, expressed as a percentage, stated in—
a: Schedule 1, Part A, clause 5
b: Schedule 1, Part A, clause 2 shareholder DWP ratio where—
f: is the total amount of DWP credits that the company has attached to dividends paid by the company in the DWP reference period
g: is the total amount of dividends paid by the company in the DWP reference period.
5: This section does not apply to a dividend that is the subject of a determination made by a statutory producer board or a co-operative company under section ME 30 or section ME 35
6: This section applies for the 2004-05 and subsequent imputation years.
7: If a company makes an election in writing for an imputation year that begins after 31 March 1995 and before 1 April 2004, this section applies for the company for the imputation year and for subsequent imputation years.
8: If an amalgamated company makes an election in writing for an imputation year that begins after 31 March 1995 and before 1 April 2004 and for a company that was an amalgamating company in relation to the amalgamated company, this section applies for the amalgamating company for the imputation year and for subsequent imputation years.
9: If a nominated company for a consolidated group makes an election in writing for an imputation year that begins after 31 March 1995 and before 1 April 2004, this section applies for the consolidated group for the imputation year and for subsequent imputation years.
65: Further dividend withholding payment payable by company
1: In section MG 9(5C)(b) payment of income tax dividend withholding payment
2: Subsection (1)
66: Transfer of credit balance to imputation credit account
Section MG 11(1)
1: A company that is not a conduit tax relief company and has a credit balance in the dividend withholding payment account of the company at the end of an imputation year, or immediately before a debit arises in the account under section MG 5(1)(j)
a: a debit to the dividend withholding payment account of the company; and
b: a credit to the imputation credit account of the company, or of an imputation group of which the company is a member at the time the credit balance occurs.
67: Debits arising to group dividend withholding payment account
1: In section MG 15(1)(f) section MG 8 section MG 8(4)
2: In section MG 15(1)(g) section MG 8(5) section MG 8B
3: Subsection (1)
4: Subsection (1) section MG 8B of the Income Tax Act 1994
68: Application of specific dividend withholding provisions to consolidated groups
1: Section MG 16A(1)
1: Section MG 8
a: as if the consolidated group were a company; and
b: for the purpose of section MG 8(2) to (4)
1B: Section MG 8B
a: as if the consolidated group were a company; and
b: as if a reference to section MG 7 section NH 6(2)
c: without taking into account any dividend that is paid by a member of the consolidated group to another member of the consolidated group.
2: Subsection (1)
3: Subsection (1) section MG 8B of the Income Tax Act 1994
69: Further tax payable for end of year debit balance or when Maori authority ceases to exist
1: Section MK 8(5)
5: A Maori authority that pays an amount of further income tax for which the authority is liable may elect, with effect from the date on which the Commissioner receives the payment, that the amount paid be also credited in payment of a liability of the authority to pay income tax or provisional tax in relation to an income year that corresponds to an imputation year in which the authority was required to establish and maintain a Maori authority credit account.
5B: A Maori authority that pays an amount of income tax in relation to an income year in which the authority was required to establish and maintain a Maori authority credit account and that is liable to pay further income tax in relation to an imputation year may elect, with effect from the date on which the Commissioner receives the payment, that the amount of the payment of tax be also credited in payment of the liability of the authority to pay the further income tax.
2: Subsection (1)
70: Accreditation requirements of PAYE intermediaries
1: In section NBB 2(1)(c) subparagraph (i) the applicant, if a natural person or corporation sole, or each member of the applicant, if the applicant is an unincorporated body, or each of the persons acting as a director, secretary or statutory officer of the applicant, if the applicant is a body corporate, and any principal of the applicant
2: In section NBB 2(4)(b) subparagraph (i) the person, if a natural person or corporation sole, or a member of the person, if the person is an unincorporated body, or a person acting as a director, secretary or statutory officer of the person, if the person is a body corporate, or a principal of the person
71: Employer having PAYE intermediary—responsibilities and status under PAYE rules and SSCWT rules
1: Section NBB 4(1)
1: An employer who is in an arrangement with a PAYE intermediary that applies to an employee and a pay period must—
a: if the employer has authorised the PAYE intermediary to direct the transfer of amounts from a bank account of the employer in satisfaction of the obligations under the arrangement of the PAYE intermediary to make payments on behalf of the employer, ensure that, at a time specified by the PAYE intermediary, the funds in the bank account of the employer that are available for transfer are sufficient to satisfy the obligations of the PAYE intermediary that relate to the employee and the pay period; or
b: if the employer has not authorised the PAYE intermediary as described in paragraph (a) section NBB 3
i: if subparagraph (ii)
ii: if the employer has paid salary or wages to the employee in the way authorised by subsection (4) subsection (4)(d)
iii: if the PAYE intermediary has agreed to assume obligations of the employer under the SSCWT rules, the specified superannuation contributions that are made in the pay period by the employer on behalf of the employee.
1B: An employer who is in an arrangement with a PAYE intermediary that applies to an employee and a pay period must—
a: keep records of the gross salary or wages of the employee for the pay period and the amounts withheld by the employer for the pay period; and
b: provide information requested by the PAYE intermediary within the time agreed by the employer and the PAYE intermediary.
2: In section NBB 4(2) subsection (1) subsections (1) and (1B)
3: In section NBB 4(3) subsection (1) subsections (1) and (1B)
4: Section NBB 4(4)(c) and (d)
c: the employer makes from the gross salary or wages of the employee the deduction that the PAYE rules and SSCWT rules would require of an employer who did not have a PAYE intermediary; and
d: the employer makes available to the PAYE intermediary, in the way required by subsection (1) paragraph (c)
72: PAYE intermediary—responsibilities and status under PAYE rules and SSCWT rules
1: In section NBB 5(1) and (1B) section NBB 4(1)
2: After section NBB 5(1)
1B: If a PAYE intermediary has been authorised by an employer to direct the transfer of amounts from a bank account of the employer as described in section NBB 4(1)(a)
a: the Commissioner:
b: the trust account established by the PAYE intermediary and identified in the employer's notice to the Commissioner under section NBB 3
3: In section NBB 5(2B) and (1B) section NBB 4(1)
73: Operation of trust account
In section NBB 6(2) paragraph (a)
aa: deductions from gross salary or wages that are required by the PAYE rules and SSCWT rules: .
74: Amounts of tax deductions
1: Section NC 6(1)
2: In section NC 6(1A) For a period for which the amount of a tax deduction is not fixed by an annual taxing Act, the A
3: In section NC 6(1B) by an annual taxing Act or
4: In section NC 6(1C) by an annual taxing Act or
5: Section NC 6(2)
75: Delivery of withholding declaration
1: Section NC 7(2)
2: If a person who is making a withholding payment has not received the withholding declaration required by subsection (1)
a: 15% of the amount of the withholding payment, if neither of paragraphs (b) and (c)
b: 5% of the amount of the withholding payment, if—
i: the person receiving the withholding payment is a company that is a non-resident contractor for the purposes of the Income Tax (Withholding Payments) Regulations 1979
ii: the person referred to in subparagraph (i) paragraph (a)
iii: paragraph (c)
c: nil, if the withholding payment is a payment of the class specified in clause 4(b) of Part B of the Schedule of the Income Tax (Withholding Payments) Regulations 1979
2: Subsection (1)
76: Amount of tax deductions for pay period current when tax deductions altered
In section NC 12(1) by an annual taxing Act or
77: Special filing rule for employer who stops employing staff during year
In section ND 12 section ND 10(4) and ND 10(5) section ND 10(3) to (5)
78: Application of RWT rules
1: In section NF 1(2)(a)(x) Commissioner. Commissioner; or
xi: interest payable on overpaid tax in accordance with section 120D of the Tax Administration Act 1994
2: Section NF 1(3) and (3A)
3: Subsections (1) (2)
79: Liability to make deduction in respect of foreign withholding payment dividend
1: Section NH 1(2)(a)
a: a dividend that is paid by a foreign company and that—
i: is derived by a company that is resident in New Zealand; and
ii: is exempt income under section CB 10(1), (4) or (5)
iii: would not, in the absence of section CB 10 section CB 3(b) or CB 4 .
2: Section NH 1(3)
3: Subsections (1) (2)
80: Application of specific dividend withholding payment provisions to consolidated groups
1: Section NH 6(3) and (4)
2: In section NH 6(6)(a)(ii) payment dividend withholding
3: Subsection (1)
4: Subsection (1) section MG 8B of the Income Tax Act 1994
81: Definitions
1: This section amends section OB 1
2: In the definition of allocation deficit debit or section MG 8(5) or MG 8B
3: The definition of business of farming
4: In the definition of community trust section 2 section 4
5: In paragraph (b) depreciable property
a: in subparagraph (vi)
i: DO 4D, DO 3,
ii: DO 4C, DO 4,
b: in subparagraph (viii) DO 4, DO 4C, DO 3,
6: In the definition of diminished value
a: in the introductory words, DO 4C sections DL 2, DO 4
b: in paragraph (b) sections DL 2, DO 4, DO 4C, DO 4D and DO 5 section DL 2 or section DO 4 or section DO 5
7: After the definition of dual resident company DWP reference period section MG 8B(4) .
8: After the definition of early income year early-payment discount section MBC 1 .
9: In the definition of estimated useful life
c: in respect of a listed horticultural plant, the period of time over which the listed horticultural plant might reasonably be expected to be useful to a person in deriving income or in carrying on a business in New Zealand, with the expectation based on an assumption of normal and reasonable maintenance .
10: The definition of finance lease finance lease
a: the transfer of the ownership of the lease asset to the lessee or an associate of the lessee during or at the end of the lease term:
b: the lessee or an associate of the lessee having the option of acquiring the lease asset for an amount that is likely to be substantially lower than the lease asset's market value on the date of acquisition:
c: a lease term that is more than 75% of the lease asset's estimated useful life:
d: a right of an associate of the lessee to acquire the lease asset, or a right of the lessor to require an associate of the lessee to acquire the lease asset, during the lease term under an arrangement that does not entitle the associate to receive all of the lease payments that may fall due after the acquisition .
11: The definition of insurer insurer sections CN 4 and OE 4 .
12: The definition of land tax
13: In paragraph (f) lease
a: in the words preceding subparagraph (i)
i: operating lease, lease term,
ii: FC 8G FC 8I
b: after subparagraph (ii)
iib: includes a licence to use intangible property; and .
14: In paragraph (b) lessee , hires, or bails
15: In paragraph (a) lessee's acquisition cost means the consideration provided to the lessee for the finance lease asset (as determined under the definition of consideration for a finance lease asset, means the consideration provided to the lessee under the finance lease, as determined under the definition of consideration,
16: After the definition of listed company listed horticultural plant sections DO 4B, DO 4C and DO 4D
a: means a horticultural plant, tree, vine, bush, cane, or similar plant that is cultivated on land, that is of a type that is listed in a determination made by the Commissioner under section 91AAB of the Tax Administration Act 1994
b: does not include—
i: a tree planted mainly for the purpose of timber production:
ii: a tree or other similar plant planted mainly for the purpose of ornament:
iii: a vine planted mainly for the purpose of producing grapes for wine production .
17: After the definition of Maui field maximum deficit debit section MG 8B(4) .
18: After the definition of minibus minimum employment period section CL 8(2) .
19: In the definition of net loss section 177C(4) section 177C(5)
20: The definition of new start grant new start grant
a: an adverse event:
b: an event that is a qualifying event .
21: After the definition of non-filing taxpayer non-listed horticultural plant sections DO 4 Schedule 7, Part A, item 12
a: means—
i: a horticultural plant, tree, vine, bush, cane, or similar plant that is cultivated on land, that is not a listed horticultural plant:
ii: a tree or other similar plant planted mainly for the purpose of ornament:
b: does not include a tree planted mainly for the purpose of timber production .
22: The definition of non-taxable bonus issue non-taxable bonus issue .
23: In paragraph (a)(ii) PAYE intermediary section NBB 3 section NBB 3
iii: has entered agreements that have been approved by the Commissioner under section NBB 3 .
24: After the definition of physical cost of production planting section DO 4B(1) sections DO 4B, DO 4C and DO 4D .
25: After the definition of pleasure craft plot section DO 4B(1) sections DO 4B, DO 4C and DO 4D .
26: After the definition of policyholder credit account person policyholder DWP ratio section MG 8B(4) .
27: In the definition of premium paragraph (b)
b: in the definition of insured person sections CN 4, GD 13 and OE 4 .
28: The definition of qualifying event qualifying event
a: the extreme climatic conditions that occurred during the month of February 2004 in New Zealand:
b: the storm event that occurred during the month of July 2004 in the Bay of Plenty area:
c: any naturally-occurring event that occurs after the month of July 2004 and—
i: in respect of which a state of emergency is declared under the Civil Defence Act 1983 Part 4 of the Civil Defence Emergency Management Act 2002
ii: that the Governor-General by Order in Council declares to be a qualifying event .
29: After the definition of qualifying event qualifying foreign equity investor section CB 2(4) .
30: In the definition of recognised exchange CB 2(1), sections
31: After the definition of reduced deduction reduced deficit debit section MG 8B(4) .
32: After the definition of rents replaced area fraction section DO 4B(1) sections DO 4B, DO 4C and DO 4D .
33: After the definition of replacement permit replacement plant sections DO 4, DO 4B, DO 4C and DO 4D .
34: In the definition of resident in Australia paragraph (a)
35: In the definition of schedular gross income paragraph (g)
36: After the definition of shareholder dividend statement shareholder DWP ratio section MG 8B(4) .
37: After the definition of significant financial hardship small-business taxpayer section MBC 1 Part MBC .
38: In the definition of special corporate entity paragraph (h)
j: any body incorporated under the Incorporated Societies Act 1908 .
39: The definition of tax credit advantage tax credit advantage
a: section GC 22(9)
b: section GC 27B(10) .
40: In the definition of taxable bonus issue paragraph (b)
c: a bonus issue that is made by a unit trust that is a foreign company to a unit holder under an arrangement or decision that the unit trust will make the bonus issue instead of causing a beneficial interest in money or property of the unit trust to vest absolutely in the unit holder .
41: In the definition of taxable period 1975 1985
42: Subsection (38) Part IG
43: Subsection (38) Part IG
a: in relation to a society and an income year for which section OD 3(4)
i: one of the 1995-96 to 1999-2000 income years if before 29 March 2004 the society makes a tax return for the income year in which the society adopts a tax position that is consistent with the amendment made by subsection (38)
ii: the 2000-01 or a subsequent income year:
b: in relation to a society and an income year for which section OD 3(4)
i: for the purpose of section IG 2(1) and (2)(e)
A: one of the 1995-96 to 1999-2000 income years if before 29 March 2004 the society makes a tax return for the income year in which the society adopts a tax position that is consistent with the amendment made by subsection (38)
B: the 2000-01 or a subsequent income year:
ii: other than for the purpose of section IG 2(1) and (2)(e)
A: the 1995-96 or 1996-97 income year if before 29 March 2004 the society makes a tax return for the income year in which the society adopts a tax position that is consistent with the amendment made by subsection (38)
B: the 2003-04 or a subsequent income year.
44: Subsection (13)(a)(i) lease subsection (13)(a)(i)
45: Subsections (10) (13)(b) (14)
46: Subsections (22) (40)
47: Subsections (3) (5) (6) (9) (16) (20) (21) (24) (25) (32) (33) (35)
48: Subsections (4) (39)
49: Subsections (2) (7) (17) (26) (31) (36)
50: Subsections (2) (7) (17) (26) (31) (36) section MG 8B of the Income Tax Act 1994
51: Subsection (2) section MG 8B of the Income Tax Act 1994
52: Subsection (23)
53: Subsections (8) (37)
82: Meaning of income tax
In section OB 6(1)(b) CB 2, CB 10
83: Voting interests
1: After section OD 3(3)
4: For the purpose of Part IG section IG 2(1) and (2)(e)
a: if a society that is incorporated under the Incorporated Societies Act 1908
b: a person who is a member of a society at the beginning of the 1997-98 income year is treated as holding a share referred to in paragraph (a)
c: a share referred to in paragraph (a)
d: all the shareholder decision-making rights in the society are treated as being carried by the shares that the society is treated as having issued under paragraph (a)
e: section OD 3(3)(d) paragraph (a)
2: After section OD 3(4) subsection (1)
5: For the purpose of Part IG section IG 2(1) and (2)(e)
a: subject to subsection (3)
b: a special corporate entity at the beginning of the 2003-04 income year.
3: Subsection (1)
4: Subsection (2)
84: Further definitions of associated persons
In section OD 8(1) CB 2(4), sections
85: Schedule 7
1: In Schedule 7, Part A, item 12 vines or trees on the land other than trees planted primarily and principally for the purposes of timber production non-listed horticultural plants on the land
2: Subsection (1)
2: Amendments to
Tax Administration Act 1994
86: Tax Administration Act 1994 This Part amends the Tax Administration Act 1994
87: Purpose of Act
In section 2(4) that are not in Part 6 provisions of this Act
88: Interpretation
1: This section amends section 3(1)
2: After the definition of contested tax contract payment section 141AA regulation 2(1) of the Income Tax (Withholding Payments) Regulations 1979 .
3: In paragraph (b)(iii) disputable decision Part 8A Part 8A
iv: that is left to the Commissioner's discretion under sections 89K, 89L, 89M(8) and (10) and 89N(3) .
4: After the definition of disputant's statement of position disqualifying offence section 141FB(3) section 141FB disqualifying penalty section 141FB(3) section 141FB .
5: After the definition of GST GST payable section 2 of the Goods and Services Tax Act 1985 .
6: In the definition of late payment penalty 21Q 12Q
7: The definition of response period response period initiating notice
a: the 2-month period starting on the date of issue of the initiating notice, if the initiating notice is—
i: a notice of proposed adjustment:
ii: a notice of disputable decision:
iii: a notice revoking or varying a disputable decision that is not an assessment:
iv: a disclosure notice:
v: a notice from the Commissioner rejecting an adjustment proposed by a disputant:
b: the 2-month period starting on the date of issue of the initiating notice, if the initiating notice is a disputant's statement of position:
c: if the notice is a notice of proposed adjustment that is issued by a taxpayer under section 89D
d: if the notice is a notice of proposed adjustment that is issued by a taxpayer under section 89DA .
8: After the definition of response period responsible department sections 81(4)(f) and (o), 82 and 85
a: in relation to a benefit that is not a student allowance, the department for the time being responsible for administration of the Social Security Act 1964
b: in relation to a student allowance, the department for the time being responsible for administration of Part 25 of the Education Act 1989 .
9: After the definition of status ruling student allowance section 303 of the Education Act 1989 .
10: Subsection (7)
a: for notices issued in relation to GST return periods that commence on or after 1 April 2005:
b: for notices that are not issued in relation to GST return periods and that are issued on or after 1 April 2005.
89: Information to be furnished on request of Commissioner
In section 17(1C)(a)(i) in the knowledge, possession or control of held by
90: Section 33B
1: Section 33B
2: Subsection (1)
91: Officers to maintain secrecy
1: In section 81(4)(f) subparagraph (i) the department for the time being responsible for the administration of the Social Security Act 1964 the responsible department
2: In section 81(4)(o) the department for the time being responsible for the administration of the Social Security Act 1964 the responsible department that department
92: Disclosure of information for matching purposes
1: In section 82(1) the department for the time being responsible for the administration of the Social Security Act 1964 the responsible department
2: In section 82(2) the department for the time being responsible for the administration of the Social Security Act 1964 the responsible department
3: In section 82(6) the department for the time being responsible for the administration of the Social Security Act 1964 the responsible department
4: In section 82(7) the department for the time being responsible for the administration of the Social Security Act 1964 the responsible department
5: After section 82(7)
7B: If the Commissioner supplies under subsection (6) or (7)
a: the full name and date of birth of the person:
b: if the information held by the Department includes information about the person's employment—
i: the telephone number of each employer of the person:
ii: the email address of each employer of the person:
iii: the tax code or codes applicable to the person during each period for which the person received a benefit.
6: In section 82(9)
a: in paragraph (a) authorised officer the department for the time being responsible for the administration of the Social Security Act 1964 the responsible department
b: the definition of beneficiary beneficiary
a: a person who is receiving, or has received, a benefit or earnings related compensation:
b: an applicant for a benefit or earnings related compensation:
c: in the case of a benefit that is a student allowance, a person who is a spouse of the recipient of the benefit under regulation 2 of the Student Allowances Regulations 1998 :
c: after the definition of beneficiary information benefit Social Security Act 1964 Part 25 of the Education Act 1989 .
93: Disclosure of address information in relation to debtors
1: Section 85(1)
1: The purpose of this section is to facilitate the exchange of information between the Inland Revenue Department and the responsible department for the purpose of assisting the responsible department to recover money owed by debtors to the responsible department, acting in the name of the Crown.
2: In section 85(2) the department for the time being responsible for the administration of the Social Security Act 1964 the responsible department
3: In section 85(3) the department for the time being responsible for the administration of the Social Security Act 1964 the responsible department
4: Section 85(6)
a: in the definition of authorised officer the department for the time being responsible for the administration of the Social Security Act 1964 the responsible department
b: after paragraph (c) debtor
d: a person who is not currently receiving a student allowance and from whom a debt relating to an allowance (as defined in section 302 of the Education Act 1989 section 307B of that Act .
94: Further secrecy requirements
1: In section 87(5)(a)(i) (eb), (e),
2: Subsection (1)
95: Notices of proposed adjustment required to be issued by Commissioner
1: After section 89C(d)
db: the assessment is made in relation to a matter for which the material facts and relevant law are identical to those for an assessment of the taxpayer for another income year that is at the time the subject of court proceedings; or .
2: After section 89C(e)
eb: the Commissioner has reasonable grounds to believe that the taxpayer has left New Zealand and may have been involved in fraudulent activity; or .
3: Subsections (1) (2)
96: Taxpayers and others with standing may issue notices of proposed adjustment
1: After section 89D(2B)
2C: A taxpayer who has not provided a GST tax return for a GST return period may not dispute the assessment made by the Commissioner other than by providing a GST return for the GST return period.
2: Section 89D(4)
3: Subsections (1) (2)
97: Taxpayer may issue notice of proposed adjustment for taxpayer assessment
1: In section 89DA(1) or a GST return period income year
2: Section 89DA(2)
2: A notice of proposed adjustment under this section is not effective unless it is issued within the response period for the notice.
3: Subsections (1) (2)
98: Election of small claims jurisdiction of Taxation Review Authority
1: In section 89E(1) $15,000 $30,000
2: Subsection (1) Part 4A Tax Administration Act 1994
99: Section 89F
1: Section 89F
89F: Content of notice of proposed adjustment
1: A notice of proposed adjustment must—
a: contain sufficient detail of the matters described in subsections (2) and (3)
b: be in the prescribed form.
2: A notice of proposed adjustment issued by the Commissioner must—
a: identify the adjustment or adjustments proposed to be made to the assessment; and
b: provide a concise statement of the key facts and the law in sufficient detail to inform the disputant of the grounds for the Commissioner's proposed adjustment or adjustments; and
c: state how the law applies to the facts.
3: A notice of proposed adjustment issued by a disputant must—
a: identify the adjustment or adjustments proposed to be made to the assessment; and
b: provide a statement of the facts and the law in sufficient detail to inform the Commissioner of the grounds for the disputant's proposed adjustment or adjustments; and
c: state how the law applies to the facts; and
d: include copies of the documents of which the disputant is aware at the time that the notice is issued that are significantly relevant to the issues arising between the Commissioner and the disputant.
2: Subsection (1) Part 4A Tax Administration Act 1994
100: Issue of response notice
1: Section 89G(2)
2: A notice of response must state concisely—
a: the facts or legal arguments in the notice of proposed adjustment that the issuer of the notice of response considers are wrong; and
b: why the issuer of the notice of response considers those facts or legal arguments to be wrong; and
c: any facts and legal arguments relied on by the issuer of the notice of response; and
d: how the legal arguments apply to the facts; and
e: the quantitative adjustments to any figure referred to in the notice of proposed adjustment that result from the facts and legal arguments relied on by the issuer of the notice of response.
2: Subsection (1) Part 4A Tax Administration Act 1994
101: Late actions deemed to occur within response period
1: In section 89K(1)(a)(ii) GST tax return GST tax return; or
iii: issuing a statement of position .
2: In section 89K(1)(a)(ii) in respect of a disputable decision or a GST tax return,— or 89DA in respect of a disputable decision; or
3: After section 89K(1)(a)(ii)
iii: issuing a statement of position,— .
4: In section 89K(1)(b)(ii)(A) or GST tax return
5: In section 89K(1)(b)(ii)(B) section 89F section 89F
iii: a statement of position .
6: In section 89K(1)(d) proposed adjustment proposed adjustment; or
e: the disputant's statement of position .
7: Section 89K(3)(a) (b)
a: an exceptional circumstance
i: an event or circumstance beyond the control of a disputant provides the disputant with a reasonable justification for not rejecting a proposed adjustment, or for not issuing a notice of proposed adjustment or statement of position, within the response period for the notice:
ii: a disputant is late in issuing a notice of proposed adjustment, notice of response or statement of position but the Commissioner considers that the lateness is minimal, or results from 1 or more statutory holidays falling in the response period:
b: an act or omission of an agent of a disputant is not an exceptional circumstance unless—
i: it was caused by an event or circumstance beyond the control of the agent that could not have been anticipated, and its effect could not have been avoided by compliance with accepted standards of business organisation and professional conduct; or
ii: the agent is late in issuing a notice of proposed adjustment, notice of response or statement of position but the Commissioner considers that the lateness is minimal, or results from 1 or more statutory holidays falling in the response period.
8: Subsections (1) to (7) Part 4A Tax Administration Act 1994
102: Disclosure notices
1: In section 89M(1) the Commissioner may issue and subject to section 89N
2: After section 89M(6)
6B: In subsections (4)(b) and (6)(b) evidence
3: Section 89M(7)
7: A disputant who does not issue a statement of position in the prescribed form within the response period for the statement of position, is treated as follows:
a: if the Commissioner has proposed the adjustment to the assessment, the disputant is treated as having accepted the Commissioner's notice of proposed adjustment or statement of position:
b: if the disputant has proposed the adjustment to the assessment, the disputant is treated as not having issued a notice of proposed adjustment.
4: Subsections (1) to (3) Part 4A Tax Administration Act 1994
103: New
sections 89N 89O
1: After section 89M
89N: Completing the disputes process
1: This section applies if—
a: a notice of proposed adjustment has been issued; and
b: the dispute has not been resolved by agreement between the Commissioner and the disputant; and
c: none of the following applies:
i: the Commissioner notifies the disputant that, in the Commissioner's opinion, the disputant in the course of the dispute has committed an offence under an Inland Revenue Act that has had an effect of delaying the completion of the disputes process:
ii: the Commissioner has reasonable grounds to believe that the disputant may take steps in relation to the existence or location of the disputant's assets to avoid or delay the collection of tax from the disputant:
iii: the Commissioner has reasonable grounds to believe that a person who is, under section OD 8(3) of the Income Tax Act 2004
iv: the disputant has begun judicial review proceedings in relation to the dispute:
v: a person who is, under section OD 8(3) of the Income Tax Act 2004
vi: during the disputes process, the disputant receives from the Commissioner a request under a statute for information relating to the dispute and fails to comply with the request within a period that is specified in the request:
vii: the disputant elects under section 89E
viii: the disputant and the Commissioner agree in writing that they have reached a position in which the dispute would be resolved more efficiently by being submitted to the court or Taxation Review Authority without completion of the disputes process:
ix: the disputant and the Commissioner agree in writing to suspend proceedings in the dispute pending a decision in a test case referred to in section 89O
2: If this section applies, the Commissioner may not amend an assessment under section 113
a: the Commissioner or the disputant accepts a notice of proposed adjustment, notice of response, or statement of position issued by the other:
b: the Commissioner considers a statement of position issued by the disputant.
3: Despite subsection (2)
4: The Commissioner must make an application under subsection (3)
5: If the Commissioner makes an application under subsection (3)
a: the period of time within which the Commissioner, in the absence of the application, would be required under the Inland Revenue Acts to make the amended assessment:
b: the period of time that starts on the date on which the Commissioner files the application in the High Court and ends on the earliest of—
i: the date of the High Court's decision of the application:
ii: the date on which the application is otherwise resolved:
iii: the date on which the dispute is otherwise resolved:
c: any further period of time that is allowed by an order of a court as a result of the application.
89O: Test cases
1: This section applies if—
a: a dispute between a disputant and the Commissioner has been identified; and
b: the Commissioner has designated a separate challenge as a test case.
2: The disputant and the Commissioner may agree in writing to suspend the proceedings in the dispute because there is significant similarity between the facts and questions of law in the dispute and the facts and questions of law in the challenge that has been designated as a test case.
3: A suspension that is agreed under subsection (2)
a: the date of the court's decision in the test case:
b: the date on which the test case is otherwise resolved:
c: the date on which the dispute is otherwise resolved.
4: The Commissioner may make an assessment or perform an action in relation to a suspended dispute that is consistent with the resolution of the test case.
5: If a suspension is agreed under subsection (2)
a: the period of time within which the Commissioner, in the absence of the suspension, would be required under the Inland Revenue Acts to make the amended assessment or perform the action:
b: the period of the suspension that is described in subsection (3)
2: Subsection (1) Part 4A Tax Administration Act 1994
104: Determinations in relation to financial arrangements
1: Section 90(6)
6: The Commissioner may at any time—
a: make a determination that varies, cancels, restricts or extends in scope an earlier determination made under this section:
b: issue a notice that cancels a determination made under this section.
6B: A person who acquires or issues a financial arrangement before the date of notification or publication of a determination, or notice, that is authorised by subsection (6)
2: In section 90(7)
a: and notices issued by the Commissioner under subsection (6)(b) subsection (1)
b: or notice determination
3: In section 90(8) or notice determination
105: Determinations relating to financial arrangements
Section 90AC(6)
6: The Commissioner may at any time—
a: make a determination that varies, cancels, restricts or extends in scope an earlier determination under this section:
b: issue a notice that cancels a determination made under this section.
106: Notification of determinations
1: In the heading to section 90AD and notices determinations
2: In section 90AD(1) or notice determination
3: In section 90AD(2) or notice determination
107: Section 90AE Section 90AE
90AE: Four-year period in which determination not required to be applied
A person who enters into a financial arrangement before the date of notification or publication of a determination, or notice, that is authorised by section 90AC(6)
108: Determinations in relation to apportionment of interest costs
1: Section 90A(6)
6: The Commissioner may at any time—
a: make a determination that varies, cancels, restricts or extends in scope an earlier determination under this section:
b: issue a notice that cancels a determination under this section.
6B: A person who enters into a financial arrangement before the date of notification or publication of a determination, or notice, that is authorised by subsection (6)
2: In section 90A(7)
a: and notices issued by the Commissioner under subsection (6)(b) subsection (1)
b: or notice determination
3: In section 90A(8) or notice determination
109: Determinations in relation to standard-cost household service
1: In the words before section 91AA(2)(a) gross income an amount
2: In section 91AA(2)(a) section CB 9(h) section CB 9(gb) and (h) of the Income Tax Act 1994
3: In section 91AA(3) gross income an amount
4: Subsections (1) to (3)
110: New section 91AAB inserted
1: After section 91AA
91AAB: Determinations relating to types and diminishing values of listed horticultural plants
1: For the purpose of sections DO 4B, DO 4C, and DO 4D of the Income Tax Act 1994
a: that a type of horticultural plant, tree, vine, bush, cane, or other similar plant that is cultivated on land, is a type of listed horticultural plant:
b: the banded rate set out in column 1 of Schedule 11 of the Income Tax Act 1994
2: In making a determination, the Commissioner must take into account the estimated useful life of the type of plant, and may also take into account—
a: the main purpose for which the type of plant is cultivated:
b: the manner in which the type of plant is cultivated and managed.
3: The determination may set out the income year or income years for which it is to apply, but may not apply for income years before the 2003-04 income year.
4: The determination may provide for the extension, limitation, variation, cancellation or revocation of an earlier determination.
5: A person affected by a determination made under this section may dispute or challenge the determination under Parts 4A and 8A
6: Within 30 days of issuing a determination under this section, the Commissioner must publish a notice in the Gazette
a: gives notice that the determination has been issued; and
b: states where copies of the determination can be obtained.
2: Subsection (1)
111: Commissioner to make private rulings on request
Section 91E(6)(d)
112: Taxpayer assessment
1: The heading to section 92 Taxpayer assessment of income tax
2: Section 92(2)
2: An assessment under this section is made on the date on which the taxpayer's return of income is received at an office of the Department.
3: Section 92(3)
4: Subsections (1) to (3)
113: New
section 92B
1: After section 92A
92B: Taxpayer assessment of GST
1: A taxpayer who is required under the Goods and Services Tax Act 1985
2: An assessment under this section is made on the date on which the taxpayer's GST tax return is received at an office of the Department.
3: This section does not apply to a taxpayer for a GST return period if the Commissioner has made an assessment of the GST payable by the taxpayer for the return period.
2: Subsection (1)
114: Assessment where default made in furnishing returns
1: After section 106(1C)
1D: If a person who is required to provide a GST tax return for a GST return period does not provide a GST tax return for the return period, or provides a GST tax return with which the Commissioner is not satisfied, the Commissioner may make an assessment of the GST payable by the person for the return period.
1E: A person who is assessed under subsection (1D)
2: Subsection (1)
115: Time bar for assessment of GST
1: The heading to section 108A Time bar for amending GST assessment
2: Section 108A(1)
1: Subject to this section and section 108B
3: Section 108A(2)
4: Section 108A(3)
3: The Commissioner may, at any time, amend an assessment to increase the amount of the assessment if the Commissioner considers that the person assessed has knowingly or fraudulently failed to disclose to the Commissioner all of the material facts that are necessary for determining the amount of GST payable for a GST return period.
5: Subsections (1) to (4)
116: Extension of time bars
1: Section 108B(1)
1: The application of a time bar that is referred to in subsection (3)
a: for not more than 12 months from the time at which the time bar would otherwise apply, by written agreement between the Commissioner and the taxpayer:
b: for a further 6 months from the end of the 12-month period referred to in paragraph (a)
1B: A waiver under subsection (1) subsection (1)
2: In section 108B(3)(f) for which the GST return was provided or, as the case may be, the assessment made; and in which the GST tax return was provided.
3: Section 108B(3)(g)
4: Subsection (1) Part 4A Tax Administration Act 1994
5: Subsections (2) (3)
117: Commissioner to give notice of assessment to taxpayer
1: After section 111(7)
8: If the Commissioner makes an assessment in relation to goods that are treated under section 5(2) of the Goods and Services Tax Act 1985 subsection (1)
2: Subsection (1)
118: Commissioner may at any time amend assessments
1: In section 113(1) The Commissioner may from time to time and at any time make all such alterations in or additions to Subject to section 89N
2: In section 113(2) alteration or addition amendment
3: Subsection (1)
119: Section 114 Section 114
114: Validity of assessments
An assessment made by the Commissioner is not invalidated—
a: through a failure to comply with a provision of this Act or another Inland Revenue Act; or
b: because the assessment is made wholly or partially in compliance with—
i: a direction or recommendation made by an authorised officer on matters relating to the assessment:
ii: a current policy or practice approved by the Commissioner that is applicable to matters relating to the assessment.
120: Variation to definitions for determining interest chargeable or payable to PAYE intermediaries
1: In section 120OB(1)(a) section NBB 4(1)(b) section NBB 4(1)
2: In section 120OB(1)(b) section NBB 4(1)(d) section NBB 4(1B)(b)
3: Subsections (1) (2)
121: When disputant entitled to challenge assessment
In section 138B(3)(b) adjusted. adjusted; and
c: for the purposes of paragraph (b)
122: Certain rights of challenge not conferred
In section 138E(1)(e)(iv) Act,— Act; or
v: any of Parts 4, 6, 7 and 11 section 76 Goods and Services Tax Act 1985 .
123: Challenging disputable decisions which are not assessments
In section 138F(1) under section 138B challenge
124: Late filing penalties
In section 139A(5) annual imputation return or
125: Tax shortfalls
1: In section 141(2) , subject to section 141AA(1) penalty
2: Subsection (1)
126: New
section 141AA
1: After section 141
141AA: Shortfall penalty if non-resident contractor relieved from all liability to pay tax on contract payment
1: If a person makes a withholding payment that is a contract payment to a person who is a non-resident contractor for the purposes of the Income Tax (Withholding Payments) Regulations 1979
a: for which the person is required to deliver to the Commissioner an employer monthly schedule; and
b: in which the person fails to make a required tax deduction from a contract payment to the non-resident contractor.
2: A person who is liable to pay a shortfall penalty under subsection (1) section 141
3: The liability under subsection (1)
2: Subsection (1)
127: Section 141FB Section 141FB
141FB: Reduction of penalties for previous behaviour
1: A shortfall penalty (called the current penalty section 141E
a: convicted of an offence that is a disqualifying offence:
b: liable for another shortfall penalty that is a disqualifying penalty for the purpose of this subsection.
2: A shortfall penalty (called the current penalty sections 141A to 141D
a: convicted of an offence that is a disqualifying offence:
b: liable for another shortfall penalty that is a disqualifying penalty for the purpose of this subsection.
3: For the purpose of this section disqualifying offence
a: an offence under section 143A, 143B, 143F, 143G, 143H or 145
i: on or after 26 March 2003; and
ii: before the taxpayer takes the tax position to which the current penalty relates:
b: an offence under section 143 or 144
i: on or after 26 March 2003; and
ii: after the date that precedes, by the period specified in subsection (4)
iii: before the taxpayer takes the tax position to which the current penalty relates disqualifying penalty
a: for the purpose of subsection (1)
i: relates to the type of tax to which the current penalty relates; and
ii: is for evasion or a similar act; and
iii: is not reduced for voluntary disclosure by the taxpayer; and
iv: relates to a tax position that is taken on or after 26 March 2003 and before the date on which the taxpayer takes the tax position to which the current penalty relates:
b: for the purpose of subsection (2)
i: relates to the type of tax to which the current penalty relates; and
ii: if the current penalty is—
A: for gross carelessness or taking an abusive tax position, is a shortfall penalty for evasion or a similar act or for gross carelessness or taking an abusive tax position:
B: for not taking reasonable care or taking an unacceptable tax position, is a shortfall penalty of any sort; and
iii: is not reduced for voluntary disclosure by the taxpayer; and
iv: relates to a tax position that is taken—
A: on or after 26 March 2003; and
B: after the date that precedes, by the period specified in subsection (4)
C: before the date on which the taxpayer takes the tax position to which the current penalty relates.
4: The period referred to in the definitions of disqualifying offence disqualifying penalty subsection (3) subsection (5)
a: 2 years, if the current penalty relates to—
i: the taxpayer's application of the PAYE rules:
ii: fringe benefit tax:
iii: goods and services tax:
iv: resident withholding tax:
b: 4 years, if the period is not given by paragraph (a)
5: For the purpose of subsection (2)
a: the Commissioner becomes aware of both tax shortfalls as a consequence of a single investigation or voluntary disclosure; and
b: the taxpayer—
i: takes both tax positions on the same date:
ii: is not liable for a shortfall penalty at any time in the period specified in subsection (4) paragraph (a)
128: Section 141FC
1: Section 141FC
2: Subsection (1)
129: New
section 141FD
1: After section 141FB
141FD: Shareholders of loss attributing qualifying companies
1: This section applies to a shortfall penalty under Part 9
a: a loss attributing qualifying company attributes a net loss to a person who, on any day in the income year for which the company had the net loss, is a shareholder of the loss attributing qualifying company; and
b: the net loss is subsequently reduced because—
i: deductions claimed by the loss attributing qualifying company for the income year are disallowed:
ii: the gross income of the loss attributing qualifying company for the income year is increased.
2: The shortfall penalty that would be imposed on the loss attributing qualifying company in the absence of this section may not be imposed on the loss attributing qualifying company.
3: A shortfall penalty may be imposed on the shareholder in relation to the amount of a deduction that the shareholder claimed in respect of the attributed net loss.
4: No shortfall penalty under Part 9 subsection (3)
2: Subsection (1)
130: Application of
Part 9
1: In section 141JB(1)(a) section NBB 4(1)(b) section NBB 4(1)
2: In section 141JB(1)(b) section NBB 4(1)(d) section NBB 4(1B)(b)
3: Subsections (1) (2)
131: Recovery of tax deductions from employers or PAYE intermediaries
1: In section 167(2B)(b)(i) section NBB 4(1)(b) section NBB 4(1)
2: In section 167(2B)(b)(ii) section NBB 4(1)(d) section NBB 4(1B)(b)
3: Subsections (1) (2)
132: Employer or PAYE intermediaries failing to make tax deductions
1: In section 168(4)(a) section NBB 4(1)(b) section NBB 4(1)
2: In section 168(4)(b) section NBB 4(1)(d) section NBB 4(1B)(b)
3: Subsections (1) (2)
133: Unpaid tax deductions, etc, to constitute charge on employer's or PAYE intermediary's property
1: In section 169(1B)(a) section NBB 4(1)(b) section NBB 4(1)
2: In section 169(1B)(b) section NBB 4(1)(d) section NBB 4(1B)(b)
3: Subsections (1) (2)
134: Transfer of excess tax within taxpayer's accounts
In section 173L(2)(a) taxable period GST return period
135: Write-off of tax by Commissioner
1: Section 177C(6)
6: For the purpose of subsection (5)
2: Subsection (1)
136: Relief to taxpayers to whom new start grants payable
1: In section 177D(2)(a) section EZ 9(3) section EZ 9(3) and (4)
2: In section 177D(3) adverse event event that is a qualifying event, as defined by section OB 1 of the Income Tax Act 1994
3: Subsections (1) (2)
137: New
section 181D
1: After section 181C
181D: Remission of late payment penalties and interest incurred due to obligation by Maori authority to pay further income tax
An amount that is interest under section 120D of the Tax Administration Act 1994 section MK 8(5) or (5B) of the Income Tax Act 1994 .
2: Subsection (1)
138: Remission for reasonable cause
Section 183A(1)
1: This section applies to—
a: a late filing penalty:
b: a non-electronic filing penalty:
c: a late payment penalty:
d: imputation penalty tax imposed by section 140B
e: dividend withholding payment penalty tax imposed by section 140C
f: Maori authority distribution penalty tax imposed by section 140CB
g: a shortfall penalty imposed by section 141AA
139: Remission consistent with collection of highest net revenue over time
After section 183D(1)(b)
bb: a shortfall penalty imposed by section 141AA .
140: Payment out of Crown Bank Account
In section 185(1)(a) or the Goods and Services Tax Act 1985 Income Tax Act 1994
141: Regulations—income tax related
1: The heading to section 225 Regulations
2: In section 225(1) or Goods and Services Tax Act 1985 Income Tax Act 1994
142: Power to extend time for doing anything under Act
In section 226 or the Goods and Services Tax Act 1985 Income Tax Act 1994
3: Amendments to other Acts and Regulations
Amendments to Goods and Services Tax Act 1985
143: Goods and Services Tax Act 1985 Sections 144 to 162 Goods and Services Tax Act 1985
144: Interpretation
1: In section 2(1) paragraph (a) resident that section those sections
2: In section 2(1) paragraph (a) tax payable section 27(6) section 51B
3: Subsection (2)
145: Zero-rating of services
1: Section 11A(1B) section 149(6) Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003
1B: Subsection (1)(j) section 8(4B)
2: Section 11A(5) section 149(8) Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003
6: The availability of a deduction under subsection (1)(q) and (r) section 20E
146: Taxable period returns
1: After section 16(2)
3: A return must contain a notice of the assessment that must be made under section 92B of the Tax Administration Act 1994
2: Subsection (1)
147: Special returns
1: After section 17(2)
3: A return must contain a notice of the assessment that must be made under section 92B of the Tax Administration Act 1994
2: Subsection (1)
148: Particulars to be furnished and prepared where change in accounting basis
1: After section 19B(2)
2B: The particulars required by subsection (1) section 92B of the Tax Administration Act 1994
2: Subsection (1)
149: Calculation of tax payable
1: The proviso that follows section 20(3)(i) Provided that a registered person who is entitled to deduct an amount from the output tax attributable to a taxable period may deduct that amount from the output tax attributable to a later taxable period if the amount has not previously been deducted from the output tax of the registered person and—
a: the later tax period begins on or before the date that is the 2nd anniversary of the earlier of the following:
i: the date on which the registered person makes the payment for the taxable supply to which the deduction relates:
ii: the date on which a tax invoice is issued for the taxable supply to which the deduction relates:
b: the failure of the registered person to make the deduction in the earlier taxable period arises from—
i: an inability of the registered person to obtain a tax invoice:
ii: a dispute over the proper amount of the payment for the taxable supply to which the deduction relates:
iii: a mistaken understanding on the part of the registered person that the supply to which the deduction relates was not a taxable supply:
iv: a clear mistake or simple oversight of the registered person.
2: Subsection (1)
150: Goods and services tax incurred relating to determination of liability to tax
1: In section 20A(1)(b) goods and services tax payable section 27(6) section 51B
2: Subsection (1)
151: Goods and services tax incurred in making certain supplies of financial services
In section 20C section 155 Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 a
a: is the total amount in respect of the taxable period that the registered person—
a: would not be able to deduct under section 20(3)
b: would be able to deduct under section 20(3) section 20(3)(h) .
152: Application of
section 21F
1: In section 21E(4) paragraph (a) if— to the extent that—
2: In section 21E(4)(a) sections 21 and 21I section 21 or 21I
153: Payment of tax
1: Section 23(3)
2: Subsection (1)
154: Part 4
1: Part 4
2: Subsection (1)
155: Section 45
1: Section 45
45: Refund of excess tax
1: Subject to this Part, and to Part 11 of the Tax Administration Act 1994
a: the Commissioner is satisfied that the amount represents an excess over the amount properly assessed for a taxable period; and
b: the 4-year period referred to in section 108A of the Tax Administration Act 1994
2: Despite section 20(5)
a: the Commissioner is satisfied that the person paid the amount as a result of an assessment that changed the amount of tax payable by the registered person; and
b: the Commissioner is satisfied that the amount represents an excess over the amount properly assessed for a taxable period; and
c: the 4-year period beginning from the end of the year in which the assessment was made has not expired.
3: Despite section 20(5)
a: the Commissioner is satisfied that the amount represents an excess over the amount properly assessed for a taxable period; and
b: the person has received a refund under section 19C(8), 20(5) or 46
c: the Commissioner is satisfied that the amount was properly refundable to the person at the time of the refund but was not refunded at that time; and
d: the 4-year period beginning from the end of the year in which the refund was made has not expired.
4: The Commissioner may refund an overpayment of tax that is referred to in subsection (2) or (3)
a: the overpayment of tax is the result of a clear mistake or simple oversight of the person; and
b: the refund is made—
i: within the period of 4 years beginning from the end of the 4-year period referred to in the subsection:
ii: as a result of an application by or on behalf of the person that the Commissioner receives before or within the period of 4 years beginning from the end of the 4-year period referred to in the subsection.
2: Subsection (1)
156: Relief from tax where new start grant made in respect of drought relief
1: In the heading to section 48A in respect of drought relief
2: Section 48A(1)
1: In this section, new start grant section OB 1 of the Income Tax Act 1994
3: In section 48A(3) paragraph (c) section EZ 9(3) section EZ 9(3) and (4)
4: Subsections (1) to (3)
157: Section 50 Section 50
158: New
section 51B
1: After section 51
51B: Persons treated as registered
1: For the purposes of Parts 3 and 6 Part 9 of the Tax Administration Act 1994
a: a person who is not otherwise a registered person but who supplies goods or services, representing that tax is charged on the supply:
b: if goods are treated by section 5(2)
i: the person selling the goods, if subparagraph (ii)
ii: the person whose goods are sold, if the person supplies a written statement under section 5(2)(a)
c: a person whose registration has been cancelled under section 52(5)
2: If a person referred to in subsection (1)
3: If a person is treated by subsection (1)(c)
2: Subsection (1)
159: Section 61B Section 61B
160: Section 80 Section 80
161: Section 81 Section 81
162: Supplies of services made before insertion of section 8(4B)
1: In section 84B(2) given by section 9 or sections 21 to 21H the services are performed
2: In section 84B(3) paragraph (a) the time given by
3: In section 84B(3)(a) section 9 or sections 21 to 21H the time the services are performed Amendment to Taxation Review Authorities Act 1994
163: Small claims jurisdiction of authorities
1: In section 13B(1)(a) Taxation Review Authorities Act 1994 $15,000 $30,000
2: Subsection (1) Part 4A Tax Administration Act 1994 Amendment to Income Tax Act 1976
164: Interpretation-voting and market interests
1: In section 8B of the Income Tax Act 1976 special corporate entity
j: any body incorporated under the Incorporated Societies Act 1908 .
2: Subsection (1) sections 191 and 191A of the Income Tax Act 1976
3: Subsection (1) sections 191 and 191A of the Income Tax Act 1976
a: the incorporated body before 29 March 2004 makes a tax return for the income year; and
b: the incorporated body adopts a tax position in the tax return that is consistent with the amendment made by subsection (1) Amendments to Taxation Review Authorities Regulations 1998
165: Interpretation
In regulation 2 Taxation Review Authorities Regulations 1998 disputable decision disputable decision section 3 of the Tax Administration Act 1994 .
166: Decisions
1: After regulation 18(5) Taxation Review Authorities Regulations 1998
6: In subclause (5) precedent
2: Subsection (1) Part 4A Tax Administration Act 1994
4: Amendments to
Income Tax Act 2004
167: Income Tax Act 2004
1: Sections 168 to 269 Income Tax Act 2004
2: Sections 168 to 249 261(2) to (21) 261(23) to (36) 262 to 269
168: New
sections CD 7B CD 7C After section CD 7
CD 7B: Interests in money or property of foreign unit trust
Interest absolutely vested in unit holder
1: If a beneficial interest in money or property of a unit trust that is a foreign company vests absolutely in a unit holder, the money or property is a dividend for the unit holder. Amount of dividend
2: The amount of the dividend is the value of the money or property. dividend foreign company unit holder unit trust
CD 7C: Bonus issue by foreign unit trust instead of money or property
Interest absolutely vested in unit holder
1: A bonus issue made to a unit holder by a unit trust that is a foreign company is a dividend for the unit holder if the issue is made under an arrangement or decision that the unit trust will make the bonus issue instead of causing a beneficial interest in money or property of the unit trust to vest absolutely in the unit holder. Amount of dividend
2: The amount of the dividend is the value of the money or property in which a beneficial interest would have vested in the unit holder if the bonus issue had not been made. bonus issue dividend foreign company unit holder unit trust .
169: New
section CD 21B After section CD 21
CD 21B: Transfer by unit trust of legal interest after beneficial interest vests
Transfer of legal interest in money or property that is dividend If money or property of a unit trust is a dividend under section CD 7B dividend unit holder unit trust .
170: When attributed CFC income arises
In section CQ 2(1)(e) EX 16 EX 17
171: Calculation of FIF income
In section CQ 6 EX 42 EX 38
172: Withdrawals
1: Section CS 1(2) Income of superannuation fund from withdrawal
2: The superannuation fund derives from the withdrawal an amount of assessable income that is given by the following formula:
2: In section CS 1(3) subsections (4) and (5) subsections (4) to (5)
3: Section CS 1(4) Withdrawal
4: Withdrawal is the total of—
a: the amount of money that is withdrawn from the superannuation fund:
b: the market value of the part of the withdrawal that is not an amount of money, on the date of the withdrawal. Other contributions
4B: Other contributions
173: Exclusion of withdrawal when member ends employment
1: Section CS 7(2) (3) Ending employment after period of specified superannuation contributions
2: Section CS 1
a: the member has been in employment throughout the period that—
i: starts on the 1st day of the tax year that starts 2 tax years before the start of the tax year in which the member ends their employment; and
ii: ends on the day on which the member ends their employment; and
b: the specified superannuation contributions are made to the superannuation fund or to a superannuation fund that has transferred, whether directly or indirectly, the funds relating to its members to the superannuation fund; and
c: the specified superannuation contributions have not been part of a withdrawal, other than a transfer between superannuation funds that is referred to in paragraph (b)
d: the withdrawal—
i: satisfies subsections (3) and (4)
ii: satisfies subsection (4B)
iii: does not include employer contributions to superannuation savings of more than the amount found by multiplying $5,000 by the number of income years for which the specified superannuation contributions were made on behalf of the member; and
e: the withdrawal is made at the time described in subsection (5) Limited increase in employer contributions between income years
3: A withdrawal satisfies this subsection if, at the time of the withdrawal, specified superannuation contributions have been made for the member by the employer, or another employer, such that—
a: the contributions relate to some or all of a period of employment that—
i: starts on the 1st day of the tax year that starts 2 tax years before the tax year in which the member ends their employment; and
ii: ends on the day on which the member ends their employment; and
b: in each of the first 2 tax years in the period referred to in paragraph (a)
i: are in total less than 150% of the total of specified superannuation contributions made for the member in the previous tax year:
ii: satisfy subparagraph (i) subsection (4)
c: in the tax year in which the member ends their employment, the contributions—
i: have an annualised value that is less than 150% of the specified superannuation contributions made for the member in the previous tax year:
ii: satisfy subparagraph (i) subsection (4)
2: The heading to section CS 7(4) Increases disregarded under subsection (3)(b)(i) or (c)(i) .
3: After section CS 7(3) Increases in employer contributions considered consistent by Commissioner
4B: A withdrawal satisfies this subsection if, at the time of the withdrawal, specified superannuation contributions have been made for the member by the employer, or another employer, such that—
a: the contributions relate to some or all of the period that—
i: starts on the 1st day of the tax year that starts 2 tax years before the tax year in which the member ends their employment; and
ii: ends on the day on which the member ends their employment; and
b: the Commissioner considers that the contributions are consistent in size and frequency with the employer's specified superannuation contributions for other employees in comparable positions; and
c: the Commissioner considers that the contributions are consistent in size and frequency during the period or periods to which the employer's specified superannuation contributions for the member relate.
174: New
section CW 11B After section CW 11
CW 11B: Proceeds of share disposal by qualified foreign equity investor
1: An amount that a person derives from the sale or other disposal by a qualifying foreign equity investor of a share, or option to buy a share, in a company (called the resident company
a: the resident company is resident in New Zealand; and
b: the share or option, or an option or convertible note relating to the share, is bought on a day that is 12 months or more before the day of the sale or other disposal; and
c: the person who buys the share or option, or the option or convertible note relating to the share, and disposes of the share or option is a qualifying foreign equity investor from the time of the purchase to the time of the disposal; and
d: at some time in the 12-month period that starts from the time of the purchase referred to in paragraph (b)
e: the resident company satisfies either or both of subsections (2) and (3) Requirements relating to main activity of resident company
2: A resident company satisfies this subsection if, throughout the period referred to in subsection (1)(c)
a: land development:
b: land ownership:
c: mining:
d: provision of financial services:
e: insurance:
f: construction of public infrastructure assets:
g: acquisition of public infrastructure assets:
h: investing with a main aim of deriving, from the investment, income in the form of interest, dividends, rent, or personal property lease payments that are not royalties. Requirements relating to resident company that provides capital to others
3: A resident company that has a main activity of providing capital in the form of debt or equity funding to other companies satisfies this subsection if—
a: throughout the period referred to in subsection (1)(c)
i: does not have, as a main activity, an activity that is referred to in subsection (2)(a) to (c) and (e) to (g)
ii: does not have, as a main activity, an activity that is referred to in subsection (2)(d) and (h)
iii: does not provide capital, directly or indirectly, to a company that is resident in New Zealand and has, as a main activity, an activity that is referred to in subsection (2)(a) to (c) and (e) to (g)
iv: does not provide capital, directly or indirectly, to a company that is resident in New Zealand and has, as a main activity, an activity that is referred to in subsection (2)(d) and (h)
b: throughout the period referred to in subsection (1)(c) subsection (2)(a) to (h)
c: for each other company there is a time in the period referred to in subsection (1)(c)
i: the shares of the other company are quoted on no official list of a recognised exchange; and
ii: the shares of the resident company are quoted on no official list of a recognised exchange. Some definitions
4: In this section— foreign exempt entity
a: is established as a legal entity under the laws of a territory that is approved for the purposes of this section by the Governor-General by an Order in Council or under the laws of a part of such a territory; and
b: has persons (called in this definition members
c: is treated by the taxation laws of the territory referred to in paragraph (a)
d: is resident in no territory that has laws that treat the legal entity as being subject to a tax on income other than as a body that handles income of the members; and
e: does not have a member who—
i: has, when treated as holding the interests of any person who is associated with the member under section OD 8(1)
ii: is resident in no territory that is approved for the purpose of this section by the Governor-General by an Order in Council; and
f: does not have a member who, when treated as holding the interests of any person who is associated with the member under section OD 8(1)
i: would be entitled to receive an amount derived from a disposal to which this section would apply; and
ii: would receive an amount referred to in subparagraph (i)
iii: would in any circumstances, under the taxation laws of the territory in which the member is resident or under the taxation laws of part of the territory, be entitled to receive from the government of the territory or of the part of the territory a financial benefit in the form of a payment, credit, rebate, forgiveness or other compensation for the reduction referred to in subparagraph (ii) foreign exempt partnership
a: is established under the laws of a territory that is approved for the purposes of this section by the Governor-General by an Order in Council or under the laws of a part of such a territory; and
b: consists of persons (called in this definition partners
c: is treated by the taxation laws of the territory, or by the taxation laws of the part of the territory, as not being subject to a tax on income other than as a body that handles income of the partners; and
d: has at least 1 partner (called in this definition a general partner
e: has at least 1 partner (called in this definition a special partner
f: does not have a general partner who is resident in no territory that is approved for the purposes of this section by the Governor-General by an Order in Council; and
g: does not have a partner who—
i: has, when treated as holding the interests of any person who is associated with the partner under section OD 8(1)
ii: is resident in no territory that is approved for the purpose of this section by the Governor-General by an Order in Council; and
h: does not have a partner who, when treated as holding the interests of any person who is associated with the partner under section OD 8(1)
i: would, under the Act in the absence of this section, be subject to tax on an amount derived from a disposal to which this section would apply; and
ii: would in any circumstances, under the taxation laws of the territory in which the partner is resident or under the taxation laws of part of the territory, be entitled to receive from the government of the territory or of the part of the territory a financial benefit in the form of a payment, credit, rebate, forgiveness or other compensation for a payment of the tax referred to in subparagraph (i) foreign exempt person
a: is resident in a territory that is approved for the purposes of this section by the Governor-General by an Order in Council; and
b: is not part of an unincorporated body that satisfies paragraphs (a) to (c) foreign exempt partnership
c: is not a legal entity that satisfies paragraphs (a) to (c) foreign exempt entity
d: is treated by the taxation laws of the territory, or by the taxation laws of a part of the territory, as the person who derives the proceeds from a disposal of shares or options that are held by the person; and
e: is not a person who—
i: would, under the Act in the absence of this section, be subject to tax on an amount derived from a disposal to which this section would apply; and
ii: would in any circumstances, under the taxation laws of the territory in which the person is resident or under the taxation laws of part of the territory, be entitled to receive from the government of the territory or of the part of the territory a financial benefit in the form of a payment, credit, rebate, forgiveness or other compensation for a payment of the tax referred to in subparagraph (i) qualifying foreign equity investor
a: a foreign exempt entity:
b: a person who is part of a foreign exempt partnership:
c: a foreign exempt person. Residency of territory
5: For the purpose of this section, whether a person is resident in a territory other than New Zealand is determined—
a: in the presence of a double tax agreement between New Zealand and the territory that is in force under the terms of the double tax agreement, under the double tax agreement:
b: in the absence of a double tax agreement between New Zealand and the territory that is in force under the terms of the double tax agreement, under the laws of the territory. Approval and withdrawal of approval for territory
6: The Governor-General may, from time to time by Order in Council—
a: approve a territory for the purpose of this section:
b: withdraw the approval of a territory for the purpose of this section. amount business company dividend double tax agreement exempt income foreign exempt entity foreign exempt partnership foreign exempt person income insurance interest land payment personal property lease payment qualifying foreign equity investor recognised exchange resident in New Zealand royalty share tax .
175: Section CW 49 Section CW 49
CW 49: Providing standard-cost household service
An amount of income derived in an income year by a natural person from providing a standard-cost household service is exempt income if—
a: the amount is exempt income under a determination made under section 91AA(2)(a) of the Tax Administration Act 1994
b: the person—
i: may be treated, under a determination made under section 91AA of the Tax Administration Act 1994
ii: in calculating the person's income tax liability for the income year, elects to include in the taxpayer's annual total deduction no amount that, in the absence of this paragraph, would be a deduction incurred by the taxpayer in providing the standard-cost household service. amount annual total deduction exempt income income income tax liability income year standard-cost household service .
176: New
section CX 41B After section CX 41
CX 41B: Amounts remitted as condition of new start grant
When this section applies
1: This section applies if in an income year of a person—
a: the person carries on a business of—
i: animal husbandry:
ii: poultry-keeping:
iii: beekeeping:
iv: breeding horses other than bloodstock:
v: horticulture:
vi: cropping; and
b: the person is paid a new start grant for the business for an event that is a qualifying event; and
c: the person in carrying on the business—
i: incurs a liability for expenditure or loss before the declaration of the state of emergency that relates to the qualifying event; and
ii: before the date that is 3 months after the end of the state of emergency, takes the liability into account in calculating the person's taxable income for an income year; and
d: the liability referred to in paragraph (c)(i)
i: as a prerequisite for the payment of the new start grant; and
ii: before the date that is 18 months after the end of the state of emergency; and
e: the amount of the remitted liability is income of the person under section CG 2 Excluded income
2: The remitted liability is excluded income of the person to the extent that is the greater of zero and the amount calculated under the formula— remitted amount -- current loss -- available loss -- other loss Definition of items in formula
3: In the formula—
a: remitted amount
b: current loss
c: available loss
d: other loss
i: is incurred by a person associated with the person who receives the new start grant; and
ii: satisfies subsection (4) Loss incurred by associated person from business or land
4: The loss referred to in subsection (3)(d)
a: is incurred by a person who—
i: carries on or has carried on the business for which the new start grant is paid or owns or has owned an estate in fee simple or leasehold estate in land used in the business; and
ii: in the opinion of the Commissioner, is under a substantial degree of control by the person; and
iii: in the opinion of the Commissioner, has a substantial identity of interests with the person; and
b: is incurred from—
i: the business referred to in paragraph (a)(i)
ii: land that is used in the business; and
c: is, for the income year in which the liability is remitted,—
i: a net loss of the associated person:
ii: an available net loss for the associated person; and
d: is included in the calculation in subsection (3) Notice to associated person
5: The Commissioner must give to the associated person written notice of a determination under subsection (4)(d) business capital limitation deduction diminished value general limitation general permission income income year qualifying event .
177: Determining tax liabilities
In the definition of GST payable section DB 3(3) (b)(ii)
ii: an amount referred to in section 17(2) or 51B of the Goods and Services Tax Act 1985 .
178: New
section DB 13B After section DB 13
DB 13B: Expenses of failed or withdrawn application for resource consent
Deduction
1: A person who applies for the grant of a resource consent under the Resource Management Act 1991
a: that the person incurs in relation to the application; and
b: that would have been part of the cost of a resource consent that is depreciable property if the application had been granted; and
c: for which the person is not allowed a deduction under another provision. Timing of deduction
2: The deduction is allocated to the income year in which the grant is refused or the application is withdrawn. Link with subpart DA
3: This section overrides the capital limitation. The general permission and other general limitations still apply. accounting year capital limitation deduction general limitation general permission income year .
179: New
section DB 28B After section DB 28
DB 28B: Expenses of failed or withdrawn patent application
Deduction
1: A person who applies for the grant of a patent and is refused the grant or withdraws the application is allowed a deduction for expenditure—
a: that the person incurs in relation to the application; and
b: that would have been part of the cost of fixed life intangible property if the application had been granted; and
c: for which the person is not allowed a deduction under another provision. Timing of deduction
2: The deduction is allocated to the income year in which the grant is refused or the application is withdrawn. Link with subpart DA
3: This section overrides the capital limitation. The general permission and other general limitations still apply. capital limitation deduction fixed life intangible property general limitation general permission income year .
180: New heading and new
section DB 44 After section DB 43 Exempt income
DB 44: Expenditure incurred in deriving exempt dividend
Deduction
1: A company that derives a dividend that is exempt income of the company under section CW 9
a: the amount of the expenditure incurred by the company in deriving the dividend, if the company is not a conduit tax relief company:
b: the amount calculated using the following formula, if the company is a conduit tax relief company: expenditure x (1 -- non-resident shareholding) Definition of items in formula
2: In the formula,—
a: expenditure
b: non-resident shareholding section NH 7(2) and (4) Link with subpart DA
3: This section overrides the exempt income limitation. The general permission must still be satisfied and the other general limitations still apply. company conduit tax relief company deduction dividend exempt income exempt income limitation general limitation general permission non-resident shareholder .
181: Calculation of FIF loss
In section DN 7 EX 42 EX 38
182: Improvements to farm land
1: In section DO 4(1)(b) land. land; and
c: the expenditure on the improvement is not expenditure to which sections DO 4B to DO 4D
2: In section DO 4(6) vines or trees non-listed horticultural plants
183: New
sections DO 4B to DO 4E After section DO 4
DO 4B: Expenditure on land: planting of listed horticultural plants
Application of section
1: This section applies if—
a: a person carries on a farming or agricultural business (including a horticultural business) on land in New Zealand; and
b: the land has been developed by the planting of listed horticultural plants on the land. Deduction and timing
2: For an income year in which the planting benefits the business and for which subsection (3) Income year in which no deduction
3: The person is not allowed a deduction under subsection (2)
a: if the person owns the land, the person disposes of the land:
b: if the person does not own the land, the person ceases carrying on the business on the land. Amount of deduction other than under subsections (6) and (7)
4: For expenditure to which subsections (6) and (7) subsection (2) 1.2 x rate x diminished value. Definition of items in formula
5: In the formula—
a: rate section 91AAB of the Tax Administration Act 1994
b: diminished value Deduction: expenditure on replaced plant if no deduction under section DO 4C
6: If a listed horticultural plant in a planting of the person ceases in an income year to exist or to be used in deriving assessable income and the person has no deduction under section DO 4C
a: the person is allowed a deduction:
b: the amount of the deduction is the diminished value of the expenditure on the listed horticultural plant at the time that the listed horticultural plant ceases to exist or to be used in deriving assessable income:
c: the deduction is allocated to the income year in which the listed horticultural plant ceases to exist or to be used in deriving income. Treatment of expenditure on replaced plant if deduction under section DO 4C
7: If a listed horticultural plant in a planting of the person ceases in an income year to exist or to be used in deriving assessable income and the person has a deduction under section DO 4C
a: the person is not allowed a deduction under this section; and
b: the person may add the diminished value, immediately before the replacement, of the expenditure on the listed horticultural plant to the diminished values, at the end of the income year, of the expenditure on listed horticultural plants that are in the planting at the end of the income year; and
c: the person may elect the method of making the addition by applying the method in a return of income for the income year. Link with subpart DA
8: This section overrides the general permission and the capital limitation. The other general limitations still apply. assessable income business capital limitation deduction diminished value general limitation general permission income year listed horticultural plant planting return of income
DO 4C: Expenditure on land: horticultural replacement planting
Application of section
1: This section applies to a person who carries on a horticultural business on land in New Zealand and who, in an income year (called the current income year
a: plants, or causes to be planted, on the land a listed horticultural plant as a replacement plant:
b: regrafts, or causes to be regrafted, a listed horticultural plant on the land as a replacement plant. Deduction
2: The person is allowed a deduction of an amount given by 1 of subsections (3) and (5)
a: the person incurs expenditure in replacing a listed horticultural plant; and
b: the replacement plant benefits the business; and
c: the person does not dispose of the land on which the listed horticultural plant is cultivated; and
d: the person elects that this section apply to the expenditure by making a return of income for the current income year on that basis. Amount of deduction if no deduction in 1 or both of 2 preceding income years
3: If the person has had no deduction under this section for 1 or both of the 2 income years preceding the current income year, the amount of the deduction under subsection (2) Definition of items in formula
4: In the formula—
a: replacement expenditure
b: fraction Amount of deduction if deduction in both of 2 preceding income years
5: If the person has had a deduction under this section for a planting for both of the 2 income years preceding the current income year, the amount of the deduction under subsection (2)
a: the amount that is calculated using the formula in subsection (6)
b: the amount that is calculated using the formula in subsection (8) Formula for first amount
6: The first amount is calculated using the formula Definition of items in formula
7: In the formula—
a: replacement expenditure
b: fraction Formula for second amount
8: The second amount is calculated using the formula— Definition of items in formula
9: In the formula—
a: replacement expenditure
b: earlier fraction
c: later fraction
d: replaced area fraction Timing of deduction
10: The deduction is allocated to the current income year. Link with subpart DA
11: This section overrides the general permission and the capital limitation. The other general limitations still apply. assessable income business capital limitation deduction diminished value general limitation general permission income year listed horticultural plant planting replaced area fraction replacement plant return of income
DO 4D: Accounting for expenditure on listed horticultural plants under
sections DO 4B and DO 4C Separate accounting for additional listed horticultural plants if deduction under section DO 4C
1: A person to whom section DO 4B subsection (2) sections DO 4B and DO 4C
a: the person has had a deduction under section DO 4C
b: the person acquires the listed horticultural plants in the income year; and
c: the listed horticultural plants benefit the business of the person in the income year; and
d: the listed horticultural plants are not replacement plants. Combined accounting for listed horticultural plants if no deduction under section DO 4C
2: A person may, despite subsection (1) sections DO 4B and DO 4C section DO 4C deduction income year listed horticultural plant planting replacement plant
DO 4E: Some definitions
In this section and sections DO 4B to DO 4D planting
a: that are involved in the business of the person during the income year; and
b: for which the person must account under sections DO 4B and DO 4C plot replaced area fraction where—
replacement area: is the area, at the end of the income year, of the part of the plot on which listed horticultural plants in the planting are planted or regrafted during the income year as replacement plants
plot area: is the total area, at the end of the income year, of the plot. business deduction income year listed horticultural plant planting plot replaced area fraction replacement plant .
184: Farming expenditure of lessor or sublessor
1: In the heading to section DO 5 or horticulture Farming
2: In section DO 5(1)(c)(i) or DO 4B or DO 4C DO 4
3: In section DO 5(1)(c)(ii) or DO 4B(2) or DO 4C DO 4(2)
4: In the heading to section DO 5(2) or DO 4B or DO 4C DO 4
5: In section DO 5(2) or DO 4B or DO 4C DO 4
185: New
section DO 5B After section DO 5
DO 5B: Improvement destroyed or made useless by qualifying event
When this section applies
1: This section applies if in an income year of a person—
a: the person owns land, or operates a farming or agricultural business on land, to which there has been made an improvement; and
b: the improvement is destroyed or made useless for the purpose of deriving income as a result of an event that is a qualifying event under paragraph (a) or (b)
c: the person would be entitled for the income year to a deduction under section DO 4 or DO 5 Deduction: diminished value of expenditure
2: The person is allowed a deduction of the amount of the diminished value, for the income year, of the expenditure on the improvement. Link with subpart DA
3: This section overrides the general permission and the capital limitation. The other general limitations still apply. business capital limitation deduction diminished value general limitation general permission income income year qualifying event .
186: New
section DP 3B After section DP 3
DP 3B: Improvement destroyed or made useless by qualifying event
When this section applies
1: This section applies if, in an income year of a person,—
a: the person operates a forestry business on land, to which there has been made an improvement; and
b: the improvement is destroyed or made useless for the purpose of deriving income as a result of an event that is a qualifying event under paragraph (a) or (b)
c: the person would be entitled for the income year to a deduction under section DP 3 Deduction: diminished value of expenditure
2: The person is allowed a deduction of the amount of the diminished value, for the income year, of the expenditure on the improvement. Link with subpart DA
3: This section overrides the general permission and the capital limitation. The other general limitations still apply. business capital limitation deduction diminished value general limitation general permission income income year qualifying event .
187: Cost of acquiring timber: forestry business on land bought from Crown, Maori owners, or holding company
In section DP 8(3)(a) cost of timber cost of the timber
188: Amalgamated company: expenditure on improvements for farming, aquacultural, and forestry businesses
1: In the heading to section DV 13 horticultural, farming,
2: In section DV 13(1) DO 4B (Expenditure on land: planting of listed horticultural plants), DO 4C (Expenditure on land: horticultural replacement planting), or DO 6
3: In section DV 13(2) DO 4B (Expenditure on land: planting of listed horticultural plants), DO 4C (Expenditure on land: horticultural replacement planting), or DO 6
189: Partnership interests and disposal of part of asset before 16 December 1991
In the words before section DZ 6(a) DZ 2 DZ 3
190: Petroleum mining operations outside New Zealand before 16 December 1991
In section DZ 7 DZ 2 DZ 3
191: Prepayments
Section EA 3(4)
4: An amount of expenditure on goods is unexpired at the end of an income year if, by the end of the income year,—
a: the person has not used up the goods in deriving income; and
b: the goods are not destroyed or rendered useless for the purpose of deriving income.
192: Calculation rule: income year in which item disposed of
In section EE 11(5) EE 42 FB 7(6) (Depreciation: partial income-producing use)
193: Effect of disposal or event
1: In section EE 41(2) This subsection does not apply if the item is a building unless the item has been destroyed or rendered useless for the purpose of deriving income as a result of an event that is a qualifying event for the purpose of paragraph (a) or (b)
2: In the list of defined words in section EE 41 income year income, income year, qualifying event
194: New
section EW 47B After section EW 47
EW 47B: Consideration when debtor released as condition of new start grant
When this section applies
1: This section applies if, in an income year of a person,—
a: the person carries on a business of—
i: animal husbandry:
ii: poultry-keeping:
iii: beekeeping:
iv: breeding horses other than bloodstock:
v: horticulture:
vi: cropping; and
b: the person is paid a new start grant for the business for an event that is a qualifying event; and
c: the person incurs a liability to make a payment under a financial arrangement—
i: in carrying on the business; and
ii: before the declaration of the state of emergency that relates to the qualifying event; and
d: the liability referred to in paragraph (c)(i)
i: as a prerequisite for the payment of the new start grant; and
ii: before the date that is 18 months after the end of the state of emergency; and
e: in the absence of this section, the amount of the remitted liability would be income of the person. Consideration
2: The person is treated as having paid, on the date on which the liability is forgiven or remitted, the part of the amount owing that is the greater of zero and the amount calculated under the formula— remitted amount -- current loss -- available loss -- other loss. Definition of items in formula
3: In the formula—
a: remitted amount
b: current loss
c: available loss
d: other loss
i: is incurred by a person associated with the person who receives the new start grant; and
ii: satisfies subsection (4) Loss incurred by associated person from business or land
4: The loss referred to in subsection (3)(d)
a: is incurred by a person who—
i: carries on or has carried on the business in respect of which the new start grant is paid or owns or has owned an estate in fee simple or leasehold estate in land used in the business; and
ii: in the opinion of the Commissioner, is under a substantial degree of control by the person; and
iii: in the opinion of the Commissioner, has a substantial identity of interests with the person; and
b: is incurred in respect of—
i: the business referred to in paragraph (a)(i)
ii: land that is used in the business; and
c: is, for the income year in which the liability is remitted,—
i: a net loss of the associated person:
ii: an available net loss for the associated person; and
d: is included in the calculation in subsection (3) Notice to associated person
5: The Commissioner must give to the associated person a written notice of a determination under subsection (4)(d) business deduction diminished value income income year qualifying event. .
195: Direct control interests
In section EX 5(4) of shareholder decision-making rights definition
196: Associates and 10% threshold
In section EX 15(1) EX 46(1)(b) EX 46(1)(a)
197: Branch equivalent income or loss: calculation rules
In section EX 21(14)(b) to DO 4D, DO 4
198: Rules for personal property lease asset during term of finance lease
1: In section FC 8B(2) on the date that the term of the lease ends or terminates by the date on which the lease term ends
2: In section FC 8B(3)
a: at the end of the term of the lease by the date on which the lease term ends
b: that on which
199: Taxation of hire purchase agreements
In section FC 10(8)(a) consideration paid to the lessee for the hire purchase agreement consideration provided to the lessee under the hire purchase agreement
200: Premiums derived by non-resident general insurers treated as being derived from New Zealand
In the definition of premium section FC 13(9) (a) to (c)
a: in relation to insurance of the kind described in subsection (2)
b: in relation to insurance of the kinds described in subsections (3) and (4)
201: Special provisions relating to dispositions of property
In section FD 10(3)(b) DO 4B, DO 4C, DO 4,
202: Companies that may constitute imputation group
1: Section FDA 1(1)(e)
2: After section FDA 1(2)(a)
ab: all members of the consolidated group are or would be members of the imputation group; and .
3: In section FDA 1(2)(b) subparagraph (i) for an imputation group that contains or will contain members of more than 1 consolidated group, all the members of the consolidated groups have been members of a single wholly-owned group of companies throughout the period that—
203: Amalgamation not to result in deemed income or remission of liabilities
In section FE 9 IE 1(4) DB 38
204: Application of
sections GC 29 to GC 31
1: In section GC 29(1)(b)
a: in the words before subparagraph (i)(A) or losses
b: subparagraph (i)(B)
B: net losses of a loss attributing qualifying company, to the extent that shareholders with effective interests in the company are deemed under section HG 16 :
c: in subparagraph (ii) and losses
2: In section GC 29(1)(b)(ii) assessable income
3: In section GC 29(1)(e)(i) date: date; and
4: In section GC 29(1)(e)(ii)(F) CE 4. CE 4:
G: shares in a foreign company, if the proceeds of a disposal of the shares would not be assessable income of the holder other than under the FIF rules.
5: In section GC 29(2) income, deductions, and losses assessable income and deductions
6: In section GC 29(3) income, deductions, and losses assessable income and deductions
205: Defined terms for
sections GC 29 to GC 31
1: In section GC 30(3)(c) subparagraph (i) a purpose or effect of achieving
2: Section GC 30(3)(d)
d: involves money that is provided by—
i: a lender who is not an associated person of the borrower under a provision of section OD 7 or OD 8(3)
A: is not a person who regularly provides money to persons on arm's-length terms under arrangements that do not satisfy paragraphs (a) to (c)
B: is not resident in New Zealand under section OE 1 or OE 2
ii: a lender who is an associated person of the borrower under a provision of section OD 7 or OD 8(3) paragraphs (a) to (c)
206: Deferral of surplus deductions from arrangement
1: In section GC 31(1)
a: paragraph (a)(i)
i: deductions, including any deduction under subsection (3) or section HG 16 .
b: in paragraph (a)(ii)
i: assessable income
ii: and losses
c: paragraph (b)(i)
i: deductions, including any deduction under subsection (3) or section HG 16 :
d: in paragraph (b)(ii)
i: assessable income
ii: and losses
2: In section GC 31(2)
a: in the words before the formula, assessable income
b: the definitions of items a b
a: is the amount for the income year by which the deductions, including any deduction under subsection (3) or section HG 16
b: is the total amount for the income year by which the deductions, including any deduction under subsection (3) or section HG 16
a: the participant; and
b: the affected associates of the participant who are not a loss attributing qualifying company and who each have for the income year allowable deductions, including any allowable deduction under subsection (3) or section HG 16
c: paragraph (a) c
a: the total amount for the income year by which the deductions, including any deduction under subsection (3) or section HG 16
i: the participant; and
ii: the affected associates of the participant who are not a loss attributing qualifying company that has incurred a net loss from the arrangement for the income year; and .
3: In section GC 31(3) amount of income amount of assessable income
4: In section GC 31(4)(b) assessable income
207: Sale of trading stock for inadequate consideration
1: In the heading to section GD 1 Sale Sale or other disposal
2: Section GD 1(4)
4: This section does not apply in respect of any trading stock that—
a: is transferred to a person under a relationship agreement; or
b: is donated, or supplied for consideration worth less than the market value of the trading stock, to a person as a result of an event that is a qualifying event under paragraph (a) or (b)
208: Subpart HC repealed
Subpart HC is repealed.
209: Election to become Maori authority
Section HI 3(3)
3: A person who elects to become a Maori authority becomes a Maori authority—
a: on the first day of the income year in which the person gives notice of the election to the Commissioner, if paragraph (b)
b: on the first day of the income year immediately succeeding the income year in which the person gives notice of the election to the Commissioner, if the person nominates that date in the notice of the election.
210: Distributions by Maori authority
In section HI 4(1)(e) consideration: consideration:
f: a taxable bonus issue.
211: Amount distributed to member by Maori authority
After section HI 5(3)
4: A taxable bonus issue that is made by a Maori authority to a member is a taxable Maori authority distribution.
212: Treatment of companies and trusts that elect to apply this subpart
In section HI 8 4 a Maori authority a trust that is not a Maori authority taxable income derived by the Maori authority is treated as trustee income
213: No offset in calculating some income tax liabilities
Section ID 1(2)
214: Net losses may be offset against future net income
After section IE 1(2)
2B: A taxpayer who is a partner in a special partnership may not under this section carry forward a net loss if—
a: the taxpayer has a deduction in an income year that arises from the activities of the special partnership; and
b: the net loss arises from the deduction; and
c: during the income year, the taxpayer derives no assessable income, whether from the activities of the special partnership or otherwise.
2C: A taxpayer may not carry forward under this section a net loss to the extent that the net loss is offset against a remitted amount of an associated person as determined by the Commissioner under section CX 41B or EW 47B
215: Net loss offset between group companies
Section IG 2(2)(a)(i)
i: a net loss for the year of offset that does not consist of a mining outgoing excess and is not prevented by section IE 1(2B) or (2C) sections IE 1 and IF 1 .
216: Calculations of rebates producing negative amounts
In section KB 3 subpart Part
217: Rebate in respect of gifts of money
In section KC 5(1)(cl) Zealand. Zealand:
cm: Medicine Mondiale:
cn: New Zealand Jesuits in India Trust:
co: Operation Vanuatu Charitable Trust.
218: Determination of net income
1: In section KD 1(1)(e)(ii) EI 3, EI 7, and EJ 1 EI 1, EI 3, and EI 7
2: In section KD 1(3)(c)(ii) counted income assessable income
219: Parental tax credit
In section KD 2AB(3)(b) fortnightly
220: Ascertainment of New Zealand income tax liability
In section LC 14(1) b counted income assessable income
221: Granting of underlying foreign tax credit
After section LF 2(2)(d)
db: if the company, as a result of the payment of the dividend, is liable to pay no income tax in relation to an amount, or part of an amount, from which the dividend is sourced; or .
222: Estimated provisional tax
After section MB 3(6)
7: This section is subject to section MB 3B
223: New
section MB 3B After section MB 3
MB 3B: Provisional taxpayer affected by qualifying event
1: This section applies to a taxpayer who is significantly affected by a qualifying event.
2: A taxpayer to whom this section applies may, despite section MB 3(1)
3: The Commissioner may, despite section MB 3(1)
a: the taxpayer is significantly affected by a qualifying event; and
b: an effect on the taxpayer of the occurrence of a qualifying event is that—
i: it is not reasonable to require the taxpayer to deliver an estimate or a revised estimate of residual income tax payable by the taxpayer in respect of the income year in accordance with section MB 3(1)
ii: the basis on which the taxpayer has chosen to pay provisional tax is now inappropriate; and
c: the taxpayer's request that the Commissioner accept the estimate or revised estimate was made as soon as was practicable.
4: If a revised estimate is accepted under subsection (3)
224: New subpart MBB inserted
After subpart MBA, the following is inserted:
MBB: Early-payment discount of income tax
MBB 1: Purpose
The purpose of this subpart is to encourage, by means of a discount of income tax, payments of amounts as income tax by small-business taxpayers in the income year preceding the income year in which the taxpayers are first required to pay provisional tax.
MBB 2: Availability of early-payment discount
1: This section applies to a small-business taxpayer for an income year if the small-business taxpayer—
a: is not required to make payments of provisional tax in the income year; and
b: on or before the taxpayer's balance date for the income year, makes payments as income tax for the income year; and
c: throughout the period from the taxpayer's balance date for the income year to the taxpayer's terminal tax date for the income year, has a credit in an account with the Commissioner that is greater than or equal to the lesser of the following:
i: the amount that, on or before the small-business taxpayer's balance date for the income year, the small-business taxpayer pays as income tax for the income year:
ii: the amount of terminal tax for the income year for which the taxpayer would be liable in the absence of this section; and
d: has, for earlier income years—
i: never been required to make payments of provisional tax and—
A: never received an early-payment discount; or
B: derived assessable income from a business at no time in a period of 4 income years that began after the latest income year for which the small-business taxpayer received an early-payment discount; or
ii: derived assessable income from a business at no time in a period of 4 income years that began after the latest income year for which the small-business taxpayer was required to make payments of provisional tax.
2: If a small-business taxpayer to whom this section applies makes a return of income for the income year and applies for an early-payment discount, the Commissioner must credit the income tax account of the small-business taxpayer with an early-payment discount found by multiplying the discount rate referred to in subsection (4)
a: the amount that, on or before the small-business taxpayer's balance date for the income year, the small-business taxpayer paid as income tax for the income year:
b: 105% of the small-business taxpayer's residual income tax for the income year.
3: The small-business taxpayer must make the application required by subsection (2) section 37(5) of the Tax Administration Act 1994
4: The discount rate is—
a: 6.7% if no rate is prescribed under paragraph (b)
b: the rate prescribed by the Governor-General by Order in Council.
MBB 3: Credit treated as being payment as income tax
A credit of an early-payment discount for a small-business taxpayer for an income year is treated as being a payment made on the day after the last day of the income year by the small-business taxpayer as income tax for the income year.
MBB 4: Some definitions
In this subpart— early-payment discount small-business taxpayer
a: conducts a business on the taxpayer's own account, acting alone or as a partner in a partnership; and
b: does not use a company or a trust in the conduct of the business; and
c: derives assessable income that is predominantly—
i: from the business; and
ii: not interest, dividends, royalties, rents or beneficiary income.
225: Refund of excess tax
1: Section MD 1(1)
1: Subject to sections MD 2, MD 2A, MD 2B, MD 3 and NH 4, and subsection (2)
a: the Commissioner is satisfied that the amount represents an excess over the tax properly payable by the taxpayer; and
b: the 4-year period referred to in section 108 of the Tax Administration Act 1994
2: Section MD 1(2)
2: Subject to sections MD 2, MD 2A, MD 2B, MD 3, and NH 4
a: the taxpayer paid the amount as a result of an amendment to an assessment that increased the amount of tax payable by the taxpayer; and
b: the Commissioner is satisfied that the amount represents an excess over the tax properly payable by the taxpayer; and
c: the 4-year period beginning at the end of the income year in which the assessment was amended has not ended.
2B: The Commissioner may refund an amount that is referred to in subsection (1) or (2)
a: the refund arises from—
i: a clear mistake or simple oversight of the taxpayer:
ii: an entitlement of the taxpayer to a rebate of income tax under subpart KD; and
b: the refund is made—
i: within the period of 4 years beginning from the end of the 4-year period referred to in the subsection:
ii: as a result of an application by or on behalf of the taxpayer that the Commissioner receives before or within the period of 4 years beginning from the end of the 4-year period referred to in the subsection.
226: Limits on refunds of tax in relation to Maori authorities
1: In section MD 2B(1)(a) the end unless subsection (1B)
2: After section MD 2B(1)
1B: Despite subsection (1)(a) section MD 1
a: the Maori authority has furnished the Maori authority credit account return within an extension of time given by the Commissioner; and
b: the amount of the refund does not exceed the credit balance in the Maori authority's Maori authority credit account on the last day of the imputation year for which the Maori authority credit account return was furnished.
3: In section MD 2B(4) If income Unless subsection (4B)
4: After section MD 2B(4)
4B: Despite subsection (4) Part 7 of the Tax Administration Act 1994
227: Companies required to maintain imputation credit account
Section ME 1(2)(a)
a: resident in a country other than New Zealand; or .
228: Companies electing to maintain imputation credit account
Section ME 1A(4)(a)
a: for the purpose of section ME 6
i: the date that is 30 days after the date on which the Commissioner receives the notice, if none of subparagraphs (ii) to (iv)
ii: 1 October 2003, if the Commissioner receives the notice before 1 April 2004 and notifies the company that the notice is effective from 1 October 2003; or
iii: 1 April 2004, if the Commissioner receives the notice before 1 April 2005 and notifies the company that the notice is effective from 1 April 2004; or
iv: the beginning of the imputation year in which the Commissioner receives the notice, if the company is formed in the imputation year or becomes eligible under this section in the imputation year and the Commissioner notifies the company that the notice is effective from the beginning of the imputation year: .
229: Amount of dividend for imputation rules if paid in Australian currency
In section ME 1B a × b
230: Consolidated imputation group to maintain separate imputation credit account
Section ME 10(1C)(b)
b: arise in relation to a company that, at the time the debit or credit arises—
i: will be a member of the resident imputation sub-group, if the debit or credit arises before the formation of the resident imputation subgroup:
ii: is a member of the resident imputation subgroup, if the debit or credit arises at or after the formation of the resident imputation subgroup.
231: Credits arising to imputation credit account of group
1: After section ME 11(1)(f)
fb: an amount forming all or part of a credit balance in the dividend withholding payment account of a company that is a member of the consolidated imputation group, if the company elects under section MG 11 .
2: After section ME 11(1)(j)
jb: an amount forming all or part of a credit balance in the policyholder credit account of a company, if the company elects under section ME 19(3)(a) .
3: In section ME 11(2)(d) subsection (1)(g) and (k) subsection (1)(fb), (g) and (k)
4: After section ME 11(2)(e)
eb: in the case of the credit referred to in subsection (1)(jb) section ME 18(4)(b) .
232: Debits arising to imputation credit account of group
Section ME 12(1)(b)
b: an amount forming all or part of a credit balance in the imputation credit account of the consolidated imputation group, if the nominated company of the consolidated imputation group elects under section ME 14(1) .
233: Credits and debits arising to policyholder credit account of company
1: In section ME 18(1)(a)
a: under section ME 7
b: in subparagraph (i) under section ME 14 the nominated company
c: in subparagraph (ii) under section ME 7 the company,
2: After section ME 18(1)(b)
bb: an amount equal to any allocation deficit debit that arises in the company's dividend withholding payment account under section MG 8B section MG 8B(3)(a)
bc: an amount equal to the credit balance in the company's dividend withholding payment account immediately before an allocation deficit debit arises in the company's dividend withholding payment account under section MG 8B section MG 8B(3)(b) .
3: After section ME 18(2)(b)
bb: in the case of a credit referred to in paragraph (bb) or (bc) of that subsection .
4: In section ME 18(3)(b)
a: in subparagraph (i) and not a member of a consolidated group
b: in subparagraph (ii) or of a consolidated group that is a consolidated imputation group
5: In section ME 18(4)(b) company's imputation credit account imputation credit account of the company or imputation group
234: Election to use credit balance as credit against policyholder base income tax liability or as credit in imputation credit account
1: In section ME 19(3)(a) and not a member of a consolidated group
2: In section ME 19(3)(b) or of a consolidated group that is a consolidated imputation group
3: In section ME 19(4)(b)(i) and not a member of a consolidated group
4: In section ME 19(4)(b)(ii) , if the company is not a member of an imputation group or of a consolidated group that is a consolidated imputation group
235: Credits and debits arising to group policyholder credit account
1: After section ME 26(2)(c)
d: an amount equal to any allocation deficit debit that arises in the consolidated group's dividend withholding payment account under section MG 8B section MG 8B(3)(a)
e: an amount equal to the credit balance in the consolidated group's dividend withholding payment account immediately before an allocation deficit debit arises in the consolidated group's dividend withholding payment account under section MG 8B section MG 8B(3)(b) .
2: After section ME 26(3)(c)
d: in the case of a credit referred to in paragraph (d) or (e) of that subsection .
236: Credits and debits arising to branch equivalent tax account of company
In section MF 4(2)(a) or paragraph (b)
237: Use of credit to reduce dividend withholding payment, or use of debit to satisfy income tax liability
1: Section MF 5(2)
2: Section MF 5(6B)
6B: If an election under subsection (4) subsection (6) subparts IF and IG where—
a: is the amount of the excess
b: is the basic rate of income tax, expressed as a percentage, stated in—
a: schedule 1 clause 5
b: schedule 1 clause 2
238: Debits and credits arising to group branch equivalent tax account
1: In section MF 8(2)(a)
a: in the definition of item d or LC 5 , LC 5 or LC 16
b: in the definition of item e companies that are members of the consolidated group other companies
2: In section MF 8(3)(a)
a: the credits referred to in subsection (2)(a) and (b) a credit referred to in subsection (2)(a)
b: those paragraphs that paragraph
239: Use of consolidated group credit to reduce dividend withholding payment, or use of group or individual debit to satisfy income tax liability
1: Section MF 10(2)
2: Section MF 10(6)
6: If an election under subsection (3) or (4) subsection (5) subparts IF and IG where—
a: is the amount of the excess
b: is the basic rate of income tax, expressed as a percentage, stated in—
a: schedule 1, part A, clause 5
b: schedule 1, part A, clause 2
240: Debits arising to dividend withholding payment account
1: In section MG 5(1)(c) company's imputation credit account imputation credit account of the company or of an imputation group to which the company belongs
2: In section MG 5(1)(f) section MG 8 section MG 8(4)
3: In section MG 5(1)(g) section MG 8(5) section MG 8B
241: Allocation rules for dividend withholding payment credits
Section MG 8(5) to (7)
242: New
section MG 8B After section MG 8
MG 8B: Policyholder credit account companies and dividend withholding payment credits
1: This section applies to a policyholder credit account company (called the company dividend year
2: An allocation deficit debit of an amount given by subsection (3)
a: the total of the amounts of the company's policyholder income and policyholder net loss for the DWP reference period, found using the policyholder base calculation for each imputation year, is greater than zero:
b: the shareholder DWP ratio for the DWP reference period exceeds the policyholder DWP ratio for the DWP reference period.
3: The amount of the allocation deficit debit that arises under subsection (2)
a: equal to the maximum deficit debit, if the maximum deficit debit is less than or equal to the credit balance that is in the company's dividend withholding payment account immediately before any allocation deficit debit arises under this section:
b: equal to the reduced deficit debit, if paragraph (a)
4: In this section— DWP reference period
a: the dividend year:
b: the longest period of consecutive imputation years—
i: that begins on or after the date on which this section applies for the company; and
ii: that ends immediately before the dividend year; and
iii: in which the company paid no dividend that had a dividend withholding payment credit attached maximum deficit debit (a -- b) x d x (1 -- r) where—
a: is the company's shareholder DWP ratio for the DWP reference period:
b: is the company's policyholder DWP ratio for the DWP reference period:
d: is the total of the amounts of the company's policy-holder income and policyholder net loss found for the DWP reference period using the policyholder base calculation:
r: is the basic rate of income tax, expressed as a percentage, stated in—
a: schedule 1, part A, clause 5
b: schedule 1, part A, clause 2 policyholder DWP ratio where—
c: is the total for the DWP reference period of all the credits that have arisen in the company's policyholder credit account as a result of an election by the company under section MG 7
d: is the total of the amounts of the company's policy-holder income and policyholder net loss found for the DWP reference period using the policyholder base calculation
r: is the basic rate of income tax, expressed as a percentage, stated in—
a: schedule 1, part A, clause 5
b: schedule 1, part A, clause 2 reduced deficit debit where—
c: is the total for the DWP reference period of all the credits that have arisen in the company's policyholder credit account as a result of an election by the company under section MG 7
d: is the total of the amounts of the company's policy-holder income and policyholder net loss found for the DWP reference period using the policyholder base calculation
e: is the credit balance in the company's dividend withholding payment account at the end of the dividend year immediately before any allocation deficit debit arises under this section
f: is the total amount of DWP credits that the company has attached to dividends paid by the company in the DWP reference period
g: is the total amount of dividends paid by the company in the DWP reference period
r: is the basic rate of income tax, expressed as a percentage, stated in—
a: schedule 1, part A, clause 5
b: schedule 1, part A, clause 2 shareholder DWP ratio where—
f: is the total amount of DWP credits that the company has attached to dividends paid by the company in the DWP reference period
g: is the total amount of dividends paid by the company in the DWP reference period.
5: This section does not apply to a dividend that is the subject of a determination made by a statutory producer board or a co-operative company under section ME 30 or section ME 35
243: Further dividend withholding payment payable by company
In section MG 9(5A)(b) payment of income tax dividend withholding payment
244: Transfer of credit balance to imputation credit account
Section MG 11(1)
1: A company that is not a conduit tax relief company and has a credit balance in the dividend withholding payment account of the company at the end of an imputation year, or immediately before a debit arises in the account under section MG 5(1)(j)
a: a debit to the dividend withholding payment account of the company; and
b: a credit to the imputation credit account of the company, or of an imputation group of which the company is a member at the time the credit balance occurs.
245: Debits arising to group dividend withholding payment account
1: In section MG 15(1)(f) section MG 8 section MG 8(4)
2: In section MG 15(1)(g) section MG 8(5) section MG 8B
246: Application of specific dividend withholding provisions to consolidated groups
Section MG 16A(1)
1: Section MG 8
a: as if the consolidated group were a company; and
b: for the purpose of section MG 8(2) to (4)
1B: Section MG 8B
a: as if the consolidated group were a company; and
b: as if a reference to section MG 7 section NH 6(2)
c: without taking into account any dividend that is paid by a member of the consolidated group to another member of the consolidated group.
247: Allocation rules for Maori authority credit account credits
In section MK 7(5) distributions where— distributions .
248: Further tax payable for end of year debit balance or when Maori authority ceases to exist
Section MK 8(5)
5: A Maori authority that pays an amount of further income tax for which the authority is liable may elect, with effect from the date on which the Commissioner receives the payment, that the amount paid be also credited in payment of a liability of the authority to pay income tax or provisional tax in relation to an income year that corresponds to an imputation year in which the authority was required to establish and maintain a Maori authority credit account.
5B: A Maori authority that pays an amount of income tax in relation to an income year in which the authority was required to establish and maintain a Maori authority credit account and that is liable to pay further income tax in relation to an imputation year may elect, with effect from the date on which the Commissioner receives the payment, that the amount of the payment of tax be also credited in payment of the liability of the authority to pay the further income tax.
249: Section MZ 7 Section MZ 7
250: Accreditation requirements of PAYE intermediaries
1: In section NBA 2(1)(c) subparagraph (i) the applicant, if a natural person or corporation sole, or each member of the applicant, if the applicant is an unincorporated body, or each of the persons acting as a director, secretary or statutory officer of the applicant, if the applicant is a body corporate, and any principal of the applicant
2: In section NBA 2(4)(b) subparagraph (i) the person, if a natural person or corporation sole, or a member of the person, if the person is an unincorporated body, or a person acting as a director, secretary or statutory officer of the person, if the person is a body corporate, or a principal of the person
251: Employer having PAYE intermediary: responsibilities and status under PAYE rules and SSCWT rules
1: Section NBA 4(1)
1: An employer who is in an arrangement with a PAYE intermediary that applies to an employee and a pay period must—
a: if the employer has authorised the PAYE intermediary to direct the transfer of amounts from a bank account of the employer in satisfaction of the obligations under the arrangement of the PAYE intermediary to make payments on behalf of the employer, ensure that, at a time specified by the PAYE intermediary, the funds in the bank account of the employer that are available for transfer are sufficient to satisfy the obligations of the PAYE intermediary that relate to the employee and the pay period; or
b: if the employer has not authorised the PAYE intermediary as described in paragraph (a) section NBA 3
i: if subparagraph (ii)
ii: if the employer has paid salary or wages to the employee in the way authorised by subsection (4) subsection (4)(d)
iii: if the PAYE intermediary has agreed to assume obligations of the employer under the SSCWT rules, the specified superannuation contributions that are made in the pay period by the employer on behalf of the employee.
1B: An employer who is in an arrangement with a PAYE intermediary that applies to an employee and a pay period must—
a: keep records of the gross salary or wages of the employee for the pay period and the amounts withheld by the employer for the pay period; and
b: provide information requested by the PAYE intermediary within the time agreed by the employer and the PAYE intermediary.
2: In section NBA 4(2) subsection (1) subsections (1) and (1B)
3: In section NBA 4(3) subsection (1) subsections (1) and (1B)
4: Section NBA 4(4)(c) (d)
c: the employer makes from the gross salary or wages of the employee the deduction that the PAYE rules and SSCWT rules would require of an employer who did not have a PAYE intermediary; and
d: the employer makes available to the PAYE intermediary, in the way required by subsection (1) paragraph (c)
252: PAYE intermediary: responsibilities and status under PAYE rules and SSCWT rules
1: In section NBA 5(1) and (1B) section NBA 4(1)
2: After section NBA 5(1)
1B: If a PAYE intermediary has been authorised by an employer to direct the transfer of amounts from a bank account of the employer as described in section NBA 4(1)(a)
a: the Commissioner:
b: the trust account established by the PAYE intermediary and identified in the employer's notice to the Commissioner under section NBA 3
3: In section NBA 5(2A) and (1B) section NBA 4(1)
253: Operation of trust account
1: In section NBA 6(2) (aa) (ab)
ab: deductions from gross salary or wages that are required by the PAYE rules and SSCWT rules:
ac: specified superannuation contributions paid by employers:
ad: deductions under section NBA 4(4) .
2: In section NBA 6(3) (aa) (ab)
ab: specified superannuation contributions paid by employers:
ac: deductions under section NBA 4(4) .
254: Amounts of tax deductions
1: Section NC 6(1)
2: In section NC 6(1A) For a period for which the amount of a tax deduction is not fixed by an annual taxing Act, the A
3: In section NC 6(1B) by an annual taxing Act or
4: In section NC 6(1C) by an annual taxing Act or
5: Section NC 6(2)
255: Delivery of withholding declaration
Section NC 7(2)
2: If a person who is making a withholding payment has not received the withholding declaration required by subsection (1)
a: 15% of the amount of the withholding payment, if neither of paragraphs (b) and (c)
b: 5% of the amount of the withholding payment, if—
i: the person receiving the withholding payment is a company that is a non-resident contractor for the purposes of the Income Tax (Withholding Payments) Regulations 1979
ii: the person referred to in subparagraph (i) paragraph (a)
iii: paragraph (c)
c: zero, if the withholding payment is a payment of the class specified in clause 4(b) of part B of the Schedule to the Income Tax (Withholding Payments) Regulations 1979
256: Amount of tax deductions for pay period current when tax deductions altered
In section NC 12(1) by an annual taxing Act or
257: Special filing rule for employer who stops employing staff during year
In section ND 12 section ND 10(4) and (5) section ND 10(3) to (5)
258: Application of RWT rules
1: After section NF 1(2)(a)(x)
xi: interest payable on overpaid tax in accordance with section 120D of the Tax Administration Act 1994 .
2: Section NF 1(3) (3A)
259: Liability to make deduction in respect of foreign withholding payment dividend
1: Section NH 1(2)(a)
a: a dividend that is paid by a foreign company and that—
i: is derived by a company that is resident in New Zealand; and
ii: is exempt income under section CW 9 or CW 11
iii: is not exempt income under 1 or more of sections CW 29 to CW 33 and CW 35 to CW 40 .
2: Section NH 1(3)
260: Application of specific dividend withholding payment provisions to consolidated groups
1: Section NH 6(3) (4)
2: In section NH 6(6)(a)(ii) payment dividend withholding
261: Definitions
1: This section amends section OB 1
2: In the definition of allocation deficit debit or (5) or MG 8B
3: In the definition of community trust section 2 section 4
4: After the definition of cost cost of timber section DP 10(1) section DP 10(2)
5: In the definition of diminished value
a: in the introductory words, DO 4B DO 4C DO 6
b: in paragraph (b) DO 4B DO 4C DO 6
6: After the definition of dual resident company DWP reference period section MG 8B(4) .
7: After the definition of early balance date early-payment discount section MBB 4 subpart MBB .
8: In paragraph (e) eligible period changes does not change
9: In the definition of estimated useful life
c: for a listed horticultural plant, means the period of time over which the listed horticultural plant might reasonably be expected to be useful to a person in deriving income or in carrying on a business in New Zealand, with the expectation based on an assumption of normal and reasonable maintenance .
10: In the definition of finance lease paragraph (b)
b: involves or is part of an arrangement that involves—
i: the transfer of the ownership of the lease asset to the lessee or an associate of the lessee during or at the end of the lease term:
ii: the lessee or an associate of the lessee having the option of acquiring the asset for an amount that is likely to be substantially lower than the asset's market value on the date of acquisition:
iii: a lease term that is more than 75% of the asset's estimated useful life as that term is defined in section EE 53
iv: a right of an associate of the lessee to acquire the lease asset, or a right of the lessor to require an associate of the lessee to acquire the lease asset, during the lease term under an arrangement that does not entitle the associate to receive all of the lease payments that may fall due after the acquisition .
11: After the definition of foreign dividend foreign exempt entity section CW 11B(3) foreign exempt partnership section CW 11B(3) foreign exempt person section CW 11B(3) .
12: The definition of insurer insurer
a: means a person who assumes liability under a contract of insurance:
b: is defined in section FC 13(9) sections FC 13 to FC 17 .
13: In paragraph (d) lease
a: in the words preceding subparagraph (i)
i: FC 8G FC 8I
ii: operating lease, outstanding balance,
b: after subparagraph (ii)
iib: includes a licence to use intangible property; and .
14: In paragraph (b)(i) lessee , hires, or bails
15: In paragraph (a) lessee's acquisition cost means the consideration provided to the lessee for a finance lease asset (as determined under the definition of consideration for a finance lease asset, means the consideration provided to the lessee under the finance lease, as determined under the definition of consideration
16: After the definition of listed company listed horticultural plant sections DO 4B to DO 4E
a: means a horticultural plant, tree, vine, bush, cane, or similar plant that is cultivated on land, that is of a type that is listed in a determination made by the Commissioner under section 91AAB of the Tax Administration Act 1994
b: does not include—
i: a tree planted mainly for the purpose of timber production:
ii: a tree or other similar plant planted mainly for the purpose of ornament:
iii: a vine planted mainly for the purpose of producing grapes for wine production .
17: In paragraph (b)(viii) local authority section CW 32(4)(c) section CW 32(4)
18: After the definition of maturity maximum deficit debit section MG 8B(4) .
19: In paragraph (a) net loss section 177C(4) section 177C(5)
20: After the definition of new provisional taxpayer new start grant
a: an adverse event:
b: an event that is a qualifying event .
21: After the definition of non-filing taxpayer non-listed horticultural plant section DO 4 and schedule 7, part A, item 8
a: means—
i: a horticultural plant, tree, vine, bush, cane, or similar plant that is cultivated on land, that is not a listed horticultural plant:
ii: a tree or other similar plant planted mainly for the purpose of ornament:
b: does not include a tree planted mainly for the purpose of timber production .
22: In paragraph (a)(ii) PAYE intermediary PAYE intermediary); or PAYE intermediary); and
iii: has entered agreements that have been approved by the Commissioner under section NBA 3 .
23: After the definition of physical cost of production planting section DO 4E sections DO 4B to DO 4E .
24: After the definition of pleasure craft plot section DO 4E sections DO 4B to DO 4E .
25: After the definition of policyholder credit account person policyholder DWP ratio section MG 8B(4) .
26: After the definition of qualifying debenture qualifying event
a: the extreme climatic conditions that occurred during the month of February 2004 in New Zealand:
b: the storm event that occurred during the month of July 2004 in the Bay of Plenty area:
c: any naturally-occurring event that occurs in a subsequent year and—
i: for which a state of emergency is declared under the Civil Defence Act 1983 Part 4 of the Civil Defence Emergency Management Act 2002
ii: that the Governor-General by Order in Council declares to be a qualifying event qualifying foreign equity investor section CW 11B(3) .
27: After the definition of reduced deduction reduced deficit debit section MG 8B(4) .
28: After the definition of repairs replaced area fraction section DO 4E sections DO 4B to DO 4E .
29: After the definition of replacement permit replacement plant sections DO 4 and DO 4B to DO 4E .
30: In the definition of resident in Australia paragraph (a)
31: In the definition of schedular income paragraph (i)
32: After the definition of shareholder dividend statement shareholder DWP ratio section MG 8B(4) .
33: After the definition of slice rule small-business taxpayer section MBB 4 subpart MBB .
34: In the definition of special corporate entity paragraph (i)
j: any body incorporated under the Incorporated Societies Act 1908 .
35: The definition of taxable bonus issue taxable bonus issue
a: a bonus issue in lieu:
b: a bonus issue that a company chooses to treat as a dividend under section CD 7
c: in the case of a bonus issue made before the enactment of this Act, a bonus issue that a company chose to treat as a dividend under a provision of an earlier Act corresponding to section CD 7
d: a bonus issue that is a dividend under section CD 7C .
36: In the definition of timber, paragraph (e)
262: Meaning of income tax
In section OB 6(1)(b) CW 11B, CD 11,
263: Further definitions of associated persons
In section OD 8(1) CW 11B, sections
264: Schedule 7
1: In the heading to schedule 7 horticultural, farming,
2: In schedule 7 vines or trees on the land other than trees planted mainly for the purposes of timber production non-listed horticultural plants on the land
265: Schedule 9 In schedule 9 Pigs Growing pigs 10 to 18 weeks of age Growing pigs 10 to 17 weeks of age
266: Schedule 21
1: This section amends schedule 21
2: The amendment to section 48A Goods and Services Tax Act 1985 In section 48A(3)(a) section EZ 9(3) of the Income Tax Act 1994 section CX 41B(4) or EW 47B(4) of the Income Tax Act 2004 In the words after section 48A(3)(c) section EZ 9(3) and (4) of the Income Tax Act 1994 section CX 41B(4) and (5) or section EW 47B(4) and (5) of the Income Tax Act 2004
3: The amendment to section 49(2) Student Loan Scheme Act 1992 In section 49(2) an income year a tax year section 49(2) that income year that tax year
4: In the heading to the amendments to the Taxation Review Authorities Act 1994 1994 No 156 1994 No 165
5: The amendment to the Financial Reporting Order 1994 In clause 4 rates permitted under the Income Tax Act 1976 rates permitted under the Income Tax Act 2004 In clause 4 section 222A of the Income Tax Act 1976 section OB 1 of the Income Tax Act 2004
267: Schedule 22 Tax Administration Act 1994
1: In the amendment to section 2(4) that are not in Part 6 provisions of this Act
2: In the definition of notice section 3(1) 14A or 14B 14B or 14C
3: In the heading to the 2nd of the sections that replace section 14 14A 14B
4: In the heading to the 3rd of the sections that replace section 14 14B 14C
5: In the subsection that is inserted after section 33A(2) (2A) (2B)
6: In the first amendment to section 33A(3) (2A) (2B)
7: In the amendment to section 33A(5) (2A) (2B)
8: The amendments to section 33B
9: In subsection (3) of the section that is inserted after section 44B the definitions of listed horticultural plant non-listed horticultural plant section OB 1 of the Income Tax Act 2004 arises under
10: The amendment to section 90A(6) In section 90A(6B) income year tax year
11: In the subsection that is inserted after section 91(1) (1A) (1B)
12: In the amendment to section 91AA(2)(a) CB 9(h) CB 9(gb) or (h) of the Income Tax Act 1994
13: In the amendment that follows the amendment to section 91AA(7) section 91AA section 91AAB
14: After the amendment to section 91AA(7) In section 91AAB(1) sections DO 4B, DO 4C, and DO 4D of the Income Tax Act 1994 sections DO 4B to DO 4E of the Income Tax Act 2004 In section 91AAB(1)(b) column 1 of Schedule 11 of the Income Tax Act 1994 schedule 11 Income Tax Act 2004
15: In the heading to the 1st of the sections that are inserted by the amendment referred to in subsection (13) 91AAA 91AAC
16: In the heading to the 2nd of the sections that are inserted by the amendment referred to in subsection (13) 91AB 91AAD
17: In the heading to the 3rd of the sections that are inserted by the amendment referred to in subsection (13) 91AC 91AAE
18: In the heading to the 4th of the sections that are inserted by the amendment referred to in subsection (13) 91AD 91AAF
19: In the 5th of the sections that are inserted by the amendment referred to in subsection (13)
a: in the heading, 91AE 91AAG
b: in subsection (1)(a), 91AD 91AAF
c: in subsection (1)(b), 91AD 91AAF
d: in subsection (6), 91AD 91AAF
20: In the 6th of the sections that are inserted by the amendment referred to in subsection (13)
a: in the heading, 91AF 91AAH
b: in subsection (1), 91AE 91AAG
21: In the 7th of the sections that are inserted by the amendment referred to in subsection (13)
a: in the heading, 91AG 91AAI
b: in subsection (4)(a), 91AK(5) 91AAM(5)
22: In the 8th of the sections that are inserted by the amendment referred to in subsection (13)
a: in the heading, 91AH 91AAJ
b: in subsection (1)(a), 91AE 91AAG
c: in subsection (1)(b)—
i: 91AE 91AAG
ii: 91AE(5)(b) 91AAG(5)(b)
23: In the 9th of the sections that are inserted by the amendment referred to in subsection (13)
a: in the heading, 91AI 91AAK
b: in the words before paragraph (a), 91AD 91AAF
24: In the heading to the 10th of the sections that are inserted by the amendment referred to in subsection (13) 91AJ 91AAL
25: In the 11th of the sections that are inserted by the amendment referred to in subsection (13)
a: in the heading, 91AK 91AAM
b: in the words before subsection (1)(a), 91AE 91AAG
c: in the words before subsection (4)(a), 91AE(4) 91AAG(4)
d: in the words before subsection (5)(a), 91AG(2) 91AAI(2)
26: In the paragraph that is inserted after section 91C(1)(e)
a: (ea) (eb)
b: in subparagraph (iv), 91AB or 91AC 91AAD or 91AAE
c: in subparagraph (v), 91AD to 91AK 91AAF to 91AAM
27: In the subsection that is inserted after section 108(3) (3A) (3B)
28: In the heading to the 1st of the sections that are inserted after section 113 113A 113B
29: In the heading to the 2nd of the sections that are inserted after section 113 113B 113C
30: The amendments to section 120OB In section 120OB(1)(a) section NBB 4(1) of the Income Tax Act 1994 section NBA 4(1) of the Income Tax Act 2004 In section 120OB(1)(b) section NBB 4(1B)(b) of the Income Tax Act 1994 section NBA 4(1B)(b) of the Income Tax Act 2004
31: The amendments to section 141FC
32: The amendments to section 141JB In section 141JB(1)(a) section NBB 4(1) of the Income Tax Act 1994 section NBA 4(1) of the Income Tax Act 2004 In section 141JB(1)(b) section NBB 4(1B)(b) of the Income Tax Act 1994 section NBA 4(1B)(b) of the Income Tax Act 2004
33: The amendments to section 167 In section 167(2B)(b)(i) section NBB 4(1) of the Income Tax Act 1994 section NBA 4(1) of the Income Tax Act 2004 In section 167(2B)(b)(ii) section NBB 4(1B)(b) of the Income Tax Act 1994 section NBA 4(1B)(b) of the Income Tax Act 2004
34: The amendments to section 168(4) In section 168(4)(a) section NBB 4(1) of the Income Tax Act 1994 section NBA 4(1) of the Income Tax Act 2004 In section 168(4)(b) section NBB 4(1B)(b) of the Income Tax Act 1994 section NBA 4(1B)(b) of the Income Tax Act 2004
35: The amendments to section 169 In section 169(1B)(a) section NBB 4(1) of the Income Tax Act 1994 section NBA 4(1) of the Income Tax Act 2004 In section 169(1B)(b) section NBB 4(1B)(b) of the Income Tax Act 1994 section NBA 4(1B)(b) of the Income Tax Act 2004
36: The amendment to section 177C(6)
37: The amendment to section 177D In section 177D(2)(a) section EZ 9(3) and (4) of the Income Tax Act 1994 section CX 41B(4) and (5) or section EW 47B(4) and (5) of the Income Tax Act 2004
38: After the amendment to section 181C In section 181D Income Tax Act 1994 Income Tax Act 2004
268: Schedule 22A
1: In schedule 22A Income Tax Act 2002 Income Tax Act 2004
2: In schedule 22A CB 7(2), CB 6,
269: Schedule 23
1: In schedule 23
a: in the entry that corresponds to section CB 5(1)(a), CW 23(1)(a) CW 23(1)(a), (b)
b: in the entry that corresponds to section CD 2, CC 10(1) CC 9(1)
c: in the entry that corresponds to section DK 2, DT 16(1), (2) DT 15
d: in the entry that corresponds to section DM 1(2)(b), DT 5 DT 5(2)
e: in the entry that corresponds to section DM 7(1), CT 5 CT 5, DT 20
f: in the entry that corresponds to section EB 1(1), BD 3(3) BD 3(4)
g: in the entry that corresponds to section ED 5, CC 9 CC 8
h: in the entry that corresponds to section EG 3(2), EE 12(1) EE 12(2)(b)
i: in the entry that corresponds to section EG 3(3), EE 12(3) EE 12(3), (4)
j: in the entry that corresponds to section EG 3(4), EE 12(4), (5) EE 12(5), (6)
k: in the entry that corresponds to section EG 3(5), EE 12(6) EE 12(2)(c)
2: In schedule 23
a: in the entry that corresponds to section EF 1(3), 91AAA 91AAC
b: in the entry that corresponds to section EF 1(4), 91AAA 91AAC
c: in the entry that corresponds to section EG 4(2), 91AD 91AAF
d: in the entry that corresponds to section EG 4(6), 91AD 91AAF
e: in the entry that corresponds to section EG 4(7), 91AD 91AAF
f: in the entry that corresponds to section EG 10(1), 91AE 91AAG
g: in the entry that corresponds to section EG 10(2), 91AE 91AAG
h: in the entry that corresponds to section EG 10(3), 91AE 91AAG
i: in the entry that corresponds to section EG 10(4), 91AF 91AAH
j: in the entry that corresponds to section EG 10(5), 91AE 91AAG
k: in the entry that corresponds to section EG 10(6), 91 AG 91AAI
l: in the entry that corresponds to section EG 10(7), 91AG 91AAI
m: in the entry that corresponds to section EG 10(8), 91 AH 91AAJ
n: in the entry that corresponds to section EG 10(9), 91AH 91AAJ
o: in the entry that corresponds to section EG 11(6), 91AJ 91AAL
p: in the entry that corresponds to section EG 11(7), 91AJ 91AAL
q: in the entry that corresponds to section EG 13, 91AK 91AAM
r: in the entry that corresponds to section EG 14(1), 91AK 91AAM
s: in the entry that corresponds to section EG 14(2), 91AK 91AAM
t: in the entry that corresponds to section EG 14(2)(b), 91AI 91AAK
u: in the entry that corresponds to section EL 3A(2), 91AC 91AAE
v: in the entry that corresponds to section EL 3A(3), 91AC 91AAE
w: in the entry that corresponds to section EL 4(6), 91AB 91AAD
x: in the entry that corresponds to section EL 4(7), 91AC 91AAE
y: in the entry that corresponds to section EL 4(8), 91AC 91AAE
z: in the entry that corresponds to section EL 8(2), 91AC 91AAE
zb: in the entry that corresponds to section EL 8(3), 91AC 91AAE
3: In schedule 23
a: after the entry that corresponds to section EG 19(2), the following entry is inserted: 2A omitted
b: after the entry that corresponds to section EO 4(1), the following entry is inserted: 1B DS 2(3)
c: in the 3rd column, in the entry that corresponds to section EO 4B, DS 3(3) DS 3(6)
d: after the entry that corresponds to section GC 27, the following entry is inserted: GC 27B GC 27A
e: after the entry that corresponds to section HI 5, the following entries are inserted: HI 6 HI 6 HI 7 HI 7 HI 8 HI 8 HI 9 HI 9
f: after the entry that corresponds to section LD 3, the following entry is inserted: LD 3B LD 3A
g: the entry that corresponds to section MB 2AB is omitted:
h: after the entry that corresponds to section MB 12, the following entries are inserted: Subpart MBB MBB 1 MBA 1 MBB 2 MBA 2 MBB 3 MBA 3 MBB 4 MBA 4 MBB 5 MBA 5 MBB 6 MBA 6 MBB 7 MBA 7 MBB 8 MBA 8 MBB 9 MBA 9
i: after the entry that corresponds to section MD 2A, the following entry is inserted: MD 2B MD 2B
j: after the entry that corresponds to section MJ 8, the following entries are inserted: Subpart MK MK 1 MK 1 MK 2 MK 2 MK 3 MK 3 MK 4 MK 4 MK 5 MK 5 MK 6 MK 6 MK 7 MK 7 MK 8 MK 8 MK 9 MK 9
k: in the 3rd column, in the entry that corresponds to section MZ 7, MZ 7 omitted
l: after the entry that corresponds to section NB 1, the following entries are inserted: Subpart NBB NBB 1 NBA 1 NBB 2 NBA 2 NBB 3 NBA 3 NBB 4 NBA 4 NBB 5 NBA 5 NBB 6 NBA 6 NBB 7 NBA 7 NBB 8 NBA 8 NBB 9 NBA 9
m: after the entry that corresponds to section NF 8, the following entry is inserted: NF 8B NF 8A
n: after the entry that corresponds to section OB 3, the following entry is inserted: OB 3B OB 3A
o: in the 3rd column, in the entry that corresponds to section OB 7, EW 40 EW 34
4: In schedule 23
a: after the entry that corresponds to section HI 5, the following entries are inserted: HI 6 HI 6 HI 7 HI 7 HI 8 HI 8 HI 9 HI 9
b: after the entry that corresponds to section MB 12, the following entries are inserted: Subpart MBA MBA 1 MBB 1 MBA 2 MBB 2 MBA 3 MBB 3 MBA 4 MBB 4 MBA 5 MBB 5 MBA 6 MBB 6 MBA 7 MBB 7 MBA 8 MBB 8 MBA 9 MBB 9
c: after the entry that corresponds to section MJ 8, the following entries are inserted: Subpart MK MK 1 MK 1 MK 2 MK 2 MK 3 MK 3 MK 4 MK 4 MK 5 MK 5 MK 6 MK 6 MK 7 MK 7 MK 8 MK 8 MK 9 MK 9
d: the entry that corresponds to section MZ 7 is omitted:
e: after the entry that corresponds to section NB 1, the following entries are inserted: Subpart NBA NBA 1 NBB 1 NBA 2 NBB 2 NBA 3 NBB 3 NBA 4 NBB 4 NBA 5 NBB 5 NBA 6 NBB 6 NBA 7 NBB 7 NBA 8 NBB 8
f: after the entry that corresponds to section NF 8, the following entry is inserted: NF 8A NF 8B
g: after the entry that corresponds to section OB 3, the following entry is inserted: OB 3A OB 3B
5: In schedule 23
a: 14A 14B
b: 14B 14C
c: 91(1A) 91(1B)
d: 91AAA 91AAC
e: 91AB 91AAD
f: 91AC 91AAE
g: 91AD 91AAF
h: 91AE 91AAG
i: 91AF 91AAH
j: 91AG 91AAI
k: 91AH 91AAJ
l: 91AI 91AAK
m: 91AJ 91 AAL
n: 91AK 91AAM
o: 108(3A) 108(3B)
p: 113A 113B
q: 113B 113C
270: Amendments contained in schedule
The provisions of the Income Tax Act 2004