Taxation (Business Tax Measures) Act 2009

1: Title
This Act is the Taxation (Business Tax Measures) Act 2009.
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: In Part 1 sections 3 24
3: In Part 2
a: section 32
b: sections 29(1) 30(1) 31(1)
c: sections 29(2), 30(2), and 31(2) 2009-04-01 Income Tax Act 2007 Tax Administration Act 1994 Goods and Services Tax Act 1985 2007-12-19 Tax Administration Act 1994
1: Business tax measures
Amendments to Income Tax Act 2007
3: Income Tax Act 2007
Sections 4 to 22 Income Tax Act 2007
4: New heading and new section DB 62
1: After section DB 61 Legal expenses
DB 62: Deduction for legal expenses
When this section applies
1: This section applies to a person when their total legal expenses for an income year is equal to or less than $10,000. Deduction
2: The person is allowed a deduction for the legal expenses. Definition
3: For the purposes of this section, legal expenses legal services Link with subpart DA
4: This section overrides the capital limitation. The general permission must still be satisfied and the other general limitations still apply. Defined in this Act: amount, capital limitation, deduction, general limitation, general permission, income year, legal expenses .
2: Subsection (1)
5: Valuing closing stock under $5,000
1: In the heading to section EB 23 $5,000 $10,000
2: In section EB 23(1)(b) $5,000 $10,000
3: Subsections (1) and (2)
6: When use of spreading method not required
1: Section EW 13(2)
2: A trustee who holds a financial arrangement in trust to manage compensation paid for personal injury under the Injury Prevention, Rehabilitation, and Compensation Act 2001, the Accident Insurance Act 1988, any of the former Acts as defined in section 13 of the Accident Insurance Act 1998, the Workers' Compensation Act 1956, or a court order does not use any of the spreading methods for the financial arrangement if the trustee is a cash basis person.
2: Subsection (1)
7: Straight-line method
1: In section EW 17(1)(a) $1,500,000 $1,850,000
2: Subsection (1)
8: Consistency of use of straight-line method and market valuation method
1: In the heading to section EW 25(3) $1,500,000 $1,850,000
2: In section EW 25(3) $1,500,000 $1,850,000
3: Subsections (1) and (2)
9: Section EW 54 replaced
1: Section EW 54
EW 54: Meaning of cash basis person
Who is cash basis person
1: A person is a cash basis person
a: 1 of the following applies in the person's case for the income year:
i: section EW 57(1)
ii: section EW 57(2)
b: section EW 57(3) Persons excluded by Commissioner
2: A person may be excluded under section EW 59 Defined in this Act: cash basis person, financial arrangement, income year .
2: Subsection (1)
10: Section EW 56 repealed
1: Section EW 56
2: Subsection (1)
11: Thresholds
1: In section EW 57(1) section EW 56(1)(a)(i) section EW 54(1)(a)(i)
2: In section EW 57(2) section EW 56(1)(a)(ii) section EW 54(1)(a)(ii)
3: In section EW 57(3) section EW 56(1)(b) section EW 54(1)(b)
4: After section EW 57(9) Increase in specified sums
10: The Governor-General may make an Order in Council increasing a sum specified in any of subsections (1) to (3).
5: Subsections (1) to (3)
12: Financial arrangements, income, and expenditure relevant to criteria
1: In section EW 58(1) the natural person the person
2: In section EW 58(3)
a: the subsection heading is replaced by Beneficiary of bare trust
b: A natural person A person
3: In section EW 58(4)
a: the subsection heading is replaced by Beneficiary of trust other than bare trust
b: a natural person a person
4: In section EW 58(5)
a: the subsection heading is replaced by Trustee
b: a natural person a person
5: Subsections (1) to (4)
13: Section EW 59 replaced
1: Section EW 59
EW 59: Exclusion by Commissioner
The Commissioner may treat a person who would otherwise be a cash basis person for a class of financial arrangements as not being a cash basis person for the class if—
a: the person, or any other person, has structured and promoted the class to defer an income tax liability:
b: the parties to a financial arrangement are associated, and the person's calculation of income and expenditure under the financial arrangement differs from that used by the associated person. Defined in this Act: associated person, cash basis person, Commissioner, financial arrangement, income, income tax liability .
2: Subsection (1)
14: Trustee of deceased's estate
1: In section EW 60(2) section EW 56(1)(a) and (b) section EW 54(1)(a) and (b)
2: In section EW 60(4) to EW 56 and EW 55
3: Subsections (1) and (2)
15: PAYE income payment forms for amounts of tax paid to Commissioner
In section RD 22
a: in the heading to section RD 22(3), $100,000 $500,000
b: in subsection (3), $100,000 $500,000
c: in subsection (4), $100,000 $500,000
16: Unclassified benefits
In section RD 45
a: in subsection (2)(a), $200 $300
b: in subsection (2)(b), $15,000 $22,500
c: in subsection (3)(a), $800 $1,200
d: in subsection (3)(b), $15,000 $22,500
e: in subsection (4)(a), $800 $1,200
f: in subsection (4)(b), $15,000 $22,500
17: Adjustments for unclassified benefits on amalgamation
In section RD 46
a: in subsection (2), $15,000 $22,500
b: in subsection (3), $15,000 $22,500
c: in subsection (4), $15,000 $22,500
d: in subsection (5), $15,000 $22,500
18: Close company option
1: Section RD 60(1)
1: This section applies in an income year when an employer that is a close company provides a fringe benefit to a shareholder-employee if, in the preceding income year,—
a: the gross amounts of tax for both PAYE income payments and employer's superannuation contributions for the corresponding tax year were no more than $500,000; or
b: the only benefit provided by the employer was a fringe benefit—
i: arising under section CX 6(1) (Private use of motor vehicle); and
ii: limited to making available to shareholder-employees 1 vehicle or 2 vehicles for their private use; or
c: the employer did not employ any employees.
2: In section RD 60(2)(b) subsection (1)(b) subsection (1)(c)
19: Small business option
In section RD 61(1)(a) $100,000 $500,000
20: Section RZ 3 replaced
Section RZ 3
RZ 3: Standard method: 2008–09 and 2009–10 income years
When this section applies
1: This section applies to the calculation of a person's provisional tax liability for any instalments payable on or after 1 April 2009 for the 2008–09 income year, and for all instalments for the 2009–10 income year, when section RC 5 (Methods for calculating provisional tax liability) applies. Standard method modified: for 5% uplift
2: The standard method under section RC 5(2) is modified so that,––
a: for the 2008–09 income year, instead of using 105%, the amount of provisional tax payable is calculated using––
i: 100%, if the person is not a new tax rate person; or
ii: 90%, if the person is a new tax rate person:
b: for the 2009–10 income year, instead of using 105%, the amount of provisional tax payable is calculated using 100%. Standard method modified: for 10% uplift
3: The standard method under section RC 5(3) is modified so that, for the 2008–09 income year and the 2009–10 income year, instead of using 110%, the amount of provisional tax payable is calculated using––
a: 105%, if the person is not a new tax rate person; or
b: 95%, if the person is a new tax rate person. Defined in this Act: amount, income year, new tax rate person, pay, provisional tax, residual income tax .
21: Section RZ 5 replaced
Section RZ 5
RZ 5: Calculating amounts under standard method: 2008–09 and 2009–10 income years
When this section applies
1: This section applies to the calculation of a person's provisional tax liability for any instalments payable on or after 1 April 2009 for the 2008–09 income year, and for all instalments for the 2009–10 income year, when section RC 10 (Calculating amount of instalment under standard and estimation methods) applies. Calculation modified: 2008–09 income year
2: In the calculation of the amount of an instalment for the 2008–09 income year, in section RC 10(3)(a),––
a: subparagraph (i) is modified so that instead of a 5% uplift,––
i: no uplift is applied, if the person is not a new tax rate person; or
ii: a 10% reduction is applied, if the person is a new tax rate person:
b: subparagraph (ii) is modified so that instead of a 10% uplift,––
i: a 5% uplift is applied, if the person is not a new tax rate person; or
ii: a 5% reduction is applied, if the person is a new tax rate person. Calculation modified: 2009–10 income year
3: In the calculation of the amount of an instalment for the 2009–10 income year, in section RC 10(3)(a),––
a: subparagraph (i) is modified so that instead of a 5% uplift, no uplift is applied:
b: subparagraph (ii) is modified so that instead of a 10% uplift,––
i: a 5% uplift is applied, if the person is not a new tax rate person; or
ii: a 5% reduction is applied, if the person is a new tax rate person. Defined in this Act: amount, income year, new tax rate person, pay, provisional tax, residual income tax .
22: Definitions
1: In section YA 1 legal defeasance legal expenses section DB 62 .
2: In section YA 1 initial provisional tax liability $35,000 $50,000 Amendment to Tax Administration Act 1994
23: Provisional tax and rules on use of money interest
1: In section 120KE(1)(b) $35,000 $50,000
2: Subsection (1) Amendments to Goods and Services Tax Act 1985
24: Goods and Services Tax Act 1985
Sections 25 Goods and Services Tax Act 1985
25: Taxable periods
In section 15(2)(a) $250,000 $500,000
26: Requirements for accounting on payments basis
In section 19A(1)(b)(i) $1,300,000 $2,000,000
27: Persons making supplies in course of taxable activity to be registered
In section 51(1)(a) $40,000 $60,000
2: Minor remedial matters
Amendments to Income Tax Act 2007
28: Income Tax Act 2007
Sections 29 to 31 Income Tax Act 2007
29: Employer's liability for attributed benefits
1: In section RD 50(5) 63.93% 61.29%
2:
3: Subsection (1)
4: Subsection (2) Section 29(2) repealed 29 May 2009 section 4 Taxation (Budget Tax Measures) Act 2009
30: Calculation for certain employees when information lacking
1: In section RD 52(3)(b) 63.93% 61.29%
2:
3: Subsection (1)
4: Subsection (2) Section 30(2) repealed 29 May 2009 section 4 Taxation (Budget Tax Measures) Act 2009
31: Pooling non-attributed benefits
1: In section RD 53(4)(a) 64% 61%
2:
3: Subsection (1)
4: Subsection (2) Section 31(2) repealed 29 May 2009 section 4 Taxation (Budget Tax Measures) Act 2009 Amendment to Tax Administration Act 1994
32: Interpretation
In section 3(1) response period 1 year 2 years