Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003

1: Title
This Act is the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003.
2: Commencement
1: This Act comes into force on the day on which it receives the Royal assent, except as provided in this section.
2: Sections 6 75(18)
3: Section 54
4: Sections 67 170 to 176
5: Sections 41 68(1) 75(9) 82(7) 92 109(1) to (3) 111 113(2) 114 115 116(2) 117 118 140(1) 146 149
6: Sections 152 to 155 156(2) 157 to 161
1: Amendments to
Income Tax Act 1994 Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
3: Income Tax Act 1994 Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
4: Double tax agreements
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
5: Exempt income—interest
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
6: Non-residents' exempt income
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
7: Non-profit bodies' and charities' exempt income
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
8: Section DI 2 Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
9: Section DJ 4 Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
10: Reassessments
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
11: Transfer of depreciable property between associated persons
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
12: Cash basis holder
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
13: Cash basis person rules for trustees
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
14: Refunds from adverse event income equalisation accounts
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
15: Cost of producing films
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
16: Transfer of property or obligations under financial arrangements deemed to be at market value
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
17: New
section FE 6B Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
18: Rules for determining New Zealand foreign attributed income group debt percentage
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
19: Income assessable to beneficiaries
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
20: New
section GC 27B Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
21: Group investment funds
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
22: Payment of qualifying company election tax
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
23: Gross income assessable to beneficiaries
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
24: Exceptions
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
25: Trustee income
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
26: Commissioner may determine amount of trustee income
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
27: Part HI replaced
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
28: Section HK 14 Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
29: Specified activity net losses
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
30: Attributed foreign net losses
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
31: Foreign investment fund net losses
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
32: Policyholder net losses
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
33: Low income rebate
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
34: Rebate for gifts of money
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
35: Rebate for interest on home vendor mortgages
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
36: Determination of amount of credit in certain cases
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
37: Credit of tax for imputation credit
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
38: Foreign tax credits—controlled foreign companies
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
39: Tax deductions to be credited against tax assessed
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
40: New
section LD 3B Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
41: New Part MBB inserted
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
42: Part MC replaced
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
43: Refund of excess tax
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
44: New
section MD 2B Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
45: Companies required to maintain imputation credit account
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
46: Credits arising to imputation credit account
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
47: Debits arising to imputation credit account
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
48: Amount of imputation credit to be attached to cash distribution
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
49: Notional distribution deemed to be dividend
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
50: Credits and debits arising to branch equivalent tax account of company
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
51: Debits and credits arising to group branch equivalent tax account
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
52: Use of consolidated group credit to reduce dividend withholding payment, or use of group or individual debit to satisfy income tax liability
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
53: New Part MK inserted
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
54: New Part NBB inserted
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
55: Part NC heading replaced
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
56: Tax deductions to be made by employers
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
57: Payment to be made by employee where tax deduction exceeds source deduction payment
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
58: Applications of tax codes specified in tax code declarations or tax code certificates
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
59: Employee using incorrect tax code
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
60: Cross heading amended
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
61: Payment of tax deductions to Commissioner
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
62: Cross heading repealed
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
63: Section NC 17 Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
64: Bond, etc in lieu of tax deductions in case of certain non-resident employees
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
65: Amount of tax deductions deemed to be received by employee
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
66: Application of other provisions to amounts payable under PAYE rules
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
67: Employer's liability for fringe benefit tax
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
68: Application of RWT rules
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
69: Deduction of resident withholding tax
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
70: Companies to notify interest payer
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
71: Payment of deductions of resident withholding tax to Commissioner
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
72: Resident withholding tax deductions varied to correct errors
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
73: New
section NF 8B Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
74: Amount of dividend withholding payment to be deducted
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
75: Definitions
Subsection (24) repealed 26 March 2003 172 Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
76: New
section OB 3B Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
77: References to particular regimes in former Act, etc
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
78: Schedule 1 Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
79: Schedule 13 Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
80: Schedule 14 Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
2: Amendments to
Tax Administration Act 1994
81: Tax Administration Act 1994 This Part amends the Tax Administration Act 1994
82: Interpretation
1: This section amends section 3(1)
2: The definition of acceptable interpretation
3: Before the definition of accounting period acceptable tax position
4: The definition of arrangement arrangement
a: means a contract, agreement, plan or understanding, whether enforceable or unenforceable, including all steps and transactions by which it is carried into effect:
b: for the purpose of Part 5A
5: After the definition of arrangement assessment
a: an assessment of tax made under a tax law by a taxpayer or by the Commissioner:
b: an assessment of a net loss for the purposes of the Income Tax Act 1994
c: an assessment of terminal tax or a refund for the purposes of the Income Tax Act 1994
d: an assessment of a refund due under the Goods and Services Tax Act 1985
e: an amendment by the Commissioner of an assessment.
6: In the definition of civil penalty paragraph (c)
cb: a promoter penalty; or.
7: In the definition of deferrable tax
a: 50% of
b: ; and non-deferrable tax, for the purposes of either Part, means the other 50% of that tax
8: The definition of Maori is repealed.
9: In the definition of tax position
a: possible
b: a position or approach with regard to limitation
10: After the definition of trustee income, the following is inserted: unacceptable tax position section 141B
11: Subsections (2) (3) (9) (10)
12: Subsection (5)
13: Subsection (8)
83: Commissioner to have power to inspect books and documents
1: In section 16 Commissioner may access premises to obtain information
2: Section 16(2)
2: The occupier of land, or a building or place, that is entered or proposed to be entered by the Commissioner, or by an authorised officer, must—
a: provide the Commissioner or the officer with all reasonable facilities and assistance for the effective exercise of powers under this section; and
b: answer all proper questions relating to the effective exercise of powers under this section, orally or, if required by the Commissioner or the officer, in writing, or by statutory declaration.
2A: A person whom the Commissioner or an authorised officer considers necessary for the effective exercise of powers under this section may accompany the Commissioner or the authorised officer to a place.
3: In section 16(3) or an authorised officer , an authorised officer, or a person accompanying the Commissioner or the authorised officer,
4: In section 16(4) authorised officer named in the application an authorised officer
5: Section 16(5)(b)
b: shall specify an authorised officer of the Department, whether by name or in general, who may act under the warrant; and
ba: shall specify whether other persons may accompany the officer acting under the warrant; and.
6: Subsection (5)
84: New
section 16B After section 16
16B: Power to remove and copy documents
1: The Commissioner, or an officer of the Department authorised by the Commissioner, may remove books or documents accessed under section 16
2: Any copies of the books or documents removed must be made, and the books or documents returned, as soon as practicable.
3: A copy of a book or document certified by or on behalf of the Commissioner is admissible in evidence in court as if it were the original.
4: The owner of a book or document that is removed under this section is entitled to inspect, and obtain a copy of, the book or document at the premises to which the book or document is removed—
a: at the time the book or document is removed to the premises:
b: at reasonable times subsequently.
85: Information to be furnished on request of Commissioner
After section 17(1)
1B: For the purpose of subsection (1)
1C: For the purpose of subsection (1B)
a: in determining whether a non-resident is controlled by a New Zealand resident—
i: anything held by a person who is resident in New Zealand, or is a controlled foreign company, and is associated with the New Zealand resident is treated as being held by the New Zealand resident; and
ii: a person is treated as being associated with the New Zealand resident if the person and the New Zealand resident are associated under section OD 7 paragraph (b) section OB 1, or OD 8(3) of the Income Tax Act 1994
b: a law of a foreign country that relates to the secrecy of information must be ignored.
1D: If information in writing is required, or books and documents must be produced, the Commissioner may require that the information be furnished, or the books and documents be produced, to a particular office of the Department.
86: Keeping of business records
1: After section 22(2)(k)
kb: Every credit and debit to the Maori authority credit account of the person and the amount of the Maori authority credit attached to taxable Maori authority distributions and dividends paid by the person; and.
2: Subsection (1)
87: Records to be kept by employer
1: In section 24 or PAYE intermediary employer
2: After section 24(1)
1B: For a pay period in which a person acts as a PAYE intermediary for an employer in relation to an employee—
a: the person must keep a proper record of the person's actions as a PAYE intermediary in respect of the employee; and
b: the employer must keep a proper record of the employer's payments to the person of salary or wages in respect of the employee.
3: In section 24(2) or PAYE intermediary Every employer
4: In section 24(2) or the PAYE intermediary the employer
5: Subsections (1) to (4)
88: Section 31
1: Section 31
31: Maori authority to give notice of amounts distributed
1: A Maori authority that makes a taxable Maori authority distribution to a member must, at the time the distribution is made, give to the member a notice that contains the following details:
a: the name of the Maori authority:
b: the date the distribution is made:
c: the name and address, and the tax file number if the number is known by the Maori authority, of the member to whom the distribution is made:
d: the amount of the distribution made to the member, including what portion is a taxable distribution and what portion is a non-taxable distribution:
e: the amount of a Maori authority credit attached to the distribution or treated as being attached to the distribution under section NF 8B
f: such other information as the Commissioner may require.
2: A notice is treated as having been given to a member if the notice is—
a: given to the member personally; or
b: is sent by post to the member's usual or last known place of abode or business; or
c: is given personally to a person authorised to act on behalf of the member; or
d: is sent by post to the person at their last known place of abode or business.
2: Subsection (1)
89: Annual returns of income by taxpayers
1: In section 33 by taxpayers
2: After section 33(1)
1B: In an income year, a trust, society or institution to which section CB 4(1)(c) or section CB 4(1)(e) of the Income Tax Act 1994
3: After section 33(2)
3: Subsection (2) subsection (1B)
4: Subsections (1) to (3)
90: Annual returns of income not required
1: After section 33A(1)(a)(iii)
iv: a taxable Maori authority distribution; and
2: After section 33A(1)(b)(via)
vib: taxable Maori authority distributions if the person's annual gross income is more than $38,000; and.
3: In section 33A(1)(b)(vii) 33A(1)(b)(viii) interest or dividends interest, dividends, or taxable Maori authority distributions
4: Subsections (2) (3)
91: Electronic format of employer monthly schedule and remittance certificate
1: In section 36A(1) or a PAYE intermediary an employer
2: In section 36A(2) or a PAYE intermediary an employer
3: In section 36A(3) or to a class of employer , a class of employers, a PAYE intermediary, or a class of PAYE intermediaries
4: Subsections (1) to (3)
92: New
section 36BB After section 36B
36BB: Electronic format for details required under Part MBB of Income Tax Act 1994
The Commissioner may prescribe one or more electronic formats in which details that must be provided under Part MBB of the Income Tax Act 1994
93: Particulars furnished in electronic format
1: In section 36C(1) or 36B 36B or 36BB
2: Subsection (1)
94: Consequential adjustments on change in return date
1: In section 39(4) any year or years of assessment, make all such assessments an income year, make an assessment
2: Subsection (1)
95: Returns by person claiming housekeeper or charitable rebates
1: In section 41A(8) , HK 14,
2: Subsection (1)
96: Special arrangements for supply of information by employer to Commissioner
1: In section 48 or PAYE intermediary employer
2: In section 48(1) or a PAYE intermediary an employer
3: In section 48(2) or PAYE intermediary employer
4: Subsections (1) to (3)
97: Section 57
1: Section 57
57: Maori authority to make returns of income
1: Every year a Maori authority must furnish a return in the prescribed form that is a complete statement of the Maori authority's taxable income for the preceding year.
2: The return must be furnished to the Commissioner on or before the date by which returns of income are required under this Act.
2: Subsection (1)
98: New
section 68B
1: After section 68A
68B: Distribution statement required when Maori authority makes‘distribution
1: A Maori authority that makes a distribution to a member must, at the time it makes the distribution, complete and retain a distribution statement that contains the following:
a: the date on which the distribution is made:
b: the total amount of distributions made:
c: the total amount of Maori authority credits attached to the distributions (to be shown as a nil amount if Maori authority credits are not attached):
d: the base ratio of the distribution:
e: such further information as the Commissioner may require.
2: A Maori authority must, no later than the time allowed by section 37
2: Subsection (1)
99: Annual imputation return
1: Section 69 subsections (2) (3) (4)
2: Subsection (1)
100: New
section 69B
1: After section 69
69B: Annual Maori authority credit account return required by Maori‘authority
1: A Maori authority must, no later than the time allowed by section 37
2: The annual Maori authority credit account return must show—
a: the opening and closing balances of the Maori authority credit account for the imputation year:
b: the amount and sources of all credits and debits that have arisen during the imputation year in accordance with sections MK 4 and MK 5 of the Income Tax Act 1994
c: the amount of any further income tax payable for the imputation year under section MK 8 of the Income Tax Act 1994
d: the amount of any Maori authority distribution penalty tax payable for the imputation year:
e: such further information as the Commissioner may prescribe or require.
2: Subsection (1)
101: New
section 70B
1: After section 70
70B: Annual Maori authority credit account return to be furnished in particular cases
1: The Commissioner may require a Maori authority to furnish, within the time allowed by the Commissioner, a Maori authority credit account return for a period specified by the Commissioner.
2: A Maori authority that ceases to be a Maori authority in an imputation year must furnish to the Commissioner, no later than 2 calendar months after the last day on which it is still a Maori authority, a Maori authority credit account return for the period beginning on the first day of the imputation year and ending on the last day on which the Maori authority is a Maori authority.
3: A Maori authority may furnish to the Commissioner, at any time, a Maori authority credit account return for a period beginning on the first day of an imputation year and ending on a day specified by the Maori authority within the imputation year, being a day that is not more than 7 days earlier than the date on which the Maori authority credit account return is furnished to the Commissioner.
4: A Maori authority credit account return furnished under this section must, except if the Commissioner otherwise specifies, contain the matters referred to in section 69B
a: in the case of a return required to be furnished under subsection (1)
b: in the case of a return required to be furnished under subsection (2) or subsection (3) subsection (2) or subsection (3)
2: Subsection (1)
102: Notification required that taxpayer not subject to this Part
1: Section 80B(2) 80B(3)
2: The information required must be received by the Commissioner no later than the person's terminal tax date for the income year to which the income statement relates.
2: Subsection (1)
103: Natural person to request income statement
1: Section 80C(2) 80C(3)
2: The request must be received by the Commissioner no later than the person's terminal tax date for the income year to which the income statement relates.
2: Subsection (1)
104: Taxpayer obligations and assessment on receipt of income statement
1: In section 80F(1) or (3)
2: Section 80F(2) 80F(3)
2: A person must inform the Commissioner by the later of—
a: the person's terminal tax date for the income year to which the income statement relates; and
b: the date that occurs 2 months after the date the income statement is issued.
3: Subsections (1) (2)
105: Income statement deemed assessment
1: Section 80H(3)(a) 80H(3)(ab)
2: Section 80H(4) 80H(5)
4: An assessment under subsection (1)
3: In section 80H(6) or the date their income tax is payable under section NC 17(3)
4: Subsections (1) to (3)
106: Officers to maintain secrecy
After section 81(4)(l)
lb: communicating, to a person who is named under section MBB 5 of the Income Tax Act 1994
107: Further secrecy requirements
In section 87
a: in subsection (5) subsection (3) subsection (3)
b: after subsection (5)
c: accompanies the Commissioner or an authorised officer, as permitted by section 16(2A)
108: New
section 97B
1: After section 97
97B: Assessment of Maori authority distribution penalty tax
1: The Commissioner may, in respect of a Maori authority chargeable with Maori authority distribution penalty tax, make an assessment of the amount of Maori authority distribution penalty tax that the Commissioner considers should be imposed on the Maori authority.
2: The Maori authority is liable to pay the Maori authority distribution penalty tax assessed except to the extent that the Maori authority establishes in proceedings challenging the assessment that the assessment is excessive or that the Maori authority is not chargeable with the Maori authority distribution penalty tax.
3: Sections 109, 111 and 113
a: the references to taxpayer
b: the reference to tax already assessed section 113
4: An assessment made under this section is subject to challenge in the same manner as an assessment of income tax imposed under section BB 1 of the Income Tax Act 1994 Part 7 of this Act
2: Subsection (1)
109: Definitions
1: This section amends section 120C
2: In the definition of date interest starts paragraph (d) filed. filed; and
e: for tax paid, being a deposit to a tax pooling account in accordance with Part MBB of the Income Tax Act 1994 section MBB 5(3)
3: The definition of tax paid tax paid
a: at any time, the amount of tax—
i: paid or credited by that time in respect of a tax liability; and
ii: that has not been refunded or applied by the Commissioner in meeting another tax liability:
b: an amount credited to an intermediary's tax pooling account in accordance with Part MBB of the Income Tax Act 1994
c: an amount credited or transferred to a taxpayer's account from a tax pooling account in accordance with Part MBB of the Income Tax Act 1994
4: In section 120C(3) paragraph (a) paragraph (a)(i)
5: Subsection (4)
110: New
sections 120OB 120OC
1: After section 120O
120OB: Variation to definitions for determining interest chargeable or payable to PAYE intermediaries
1: Despite section 120C
a: paid to the person the salary or wages relating to an employee as required by section NBB 4(1)(b) of the Income Tax Act 1994
b: provided to the person the information requested by the person, as required by section NBB 4(1)(d) of the Income Tax Act 1994
2: In this Part— Commissioner's paying rate section 120H date interest starts
a: for unpaid tax means—
i: if a PAYE intermediary pays too little tax by a due date—
A: the day after the due date for payment of the tax; or
B: where the due date is a new due date, the day after the original due date for payment of the tax:
ii: if the Commissioner refunds tax which should be kept and taken into account in satisfying tax payable by a PAYE intermediary on a due date, the day after the day the Commissioner refunds the tax; and
b: for overpaid tax, if a PAYE intermediary pays too much tax by or after a due date—
i: the day after the later of the due date for payment of the tax and the date the payment is made; or
ii: where the due date is a new due date, the day after the later of the original due date for payment of the tax and the date on which the payment is made interest paid to a taxpayer interest paid paid interest period
a: for unpaid tax, means the period beginning on the date interest starts and ending on the date the tax is paid or credited as paid (both dates inclusive):
b: for overpaid tax, means the period beginning on the date interest starts and ending on the date the tax is refunded by the Commissioner (both dates inclusive); and tax paid
a: has been paid or credited as paid in respect of a deduction of tax that must be made under a tax law; and
b: has not been refunded by the Commissioner tax payable taxpayer's paying rate section 120H
3: For the purposes of this Part, where, at any time—
a: the tax paid by a PAYE intermediary exceeds the tax payable, the excess is overpaid tax; and
b: the tax payable by a PAYE intermediary exceeds the tax paid, the excess is unpaid tax.
120OC: Application of
sections 120A, 120AA and 120D to 120I
1: Sections 120A, 120AA and 120D to 120I taxpayer PAYE intermediary
2: Despite subsection (1), sections 120EA, 120F(2) and 120F(3)
2: Subsection (1)
111: New
section 120OD After section 120OC section 110
120OD: Application of
sections 120A, 120AA and 120C to 120I
1: Sections 120A, 120AA and 120C to 120I Part MBB of the Income Tax Act 1994 taxpayer intermediary
2: Despite subsection (1), sections 120EA, 120F(2) and 120F(3)
112: Interest on deferrable tax
1: Section 120T(2)
2: Subsection (1)
113: Certain rights of objection not conferred
1: In section 125(j)(i) (except section NC 17
2: In section 125(j)(iv) 128A,
3: Subsection (1)
114: Obligation to pay tax where competent objection lodged
1: In section 128 Payment of disputed tax where competent objection lodged
2: Section 128(1)
3: After section 128(2)
2B: Despite subsection (2)
4: Section 128(3)(a) 128(3)(b)
a: the tax in dispute paid in accordance with subsection (2B)
b: interest accrued on the tax in dispute under Part 7
5: In section 128(5) and non-deferrable
6: In section 128(6) or non-deferrable
115: Section 128A Section 128A
116: Certain rights of challenge not conferred
1: In section 138E(1)(e)(i) (except section NC 17
2: In section 138E(1)(e)(iv) 128A,
3: Subsection (1)
117: Obligation to pay tax during challenge
1: In section 138I Payment of disputed tax
2: Section 138I(1)
3: After section 138I(2)
2B: Despite subsection (2)
4: Section 138I(3)(a) 138I(3)(b)
a: the tax in dispute paid in accordance with subsection (2B)
b: interest accrued on the tax in dispute under Part 7
5: In section 138I(4) and non-deferrable
6: In section 138I(5) or non-deferrable
118: Section 138J Section 138J
119: Powers of hearing authority
1: After section 138P(1)
1B: If a taxpayer brings a challenge and proves, on the balance of probabilities, that the amount of an assessment is excessive by a specific amount, a hearing authority must reduce the taxpayer's assessment by the specific amount.
2: In section 138P(5)(a) or subsection (1B) subsection (1)(a)
3: Subsections (1) (2)
120: Non-electronic filing penalty
1: Section 139AA(1)
1: This section applies to—
a: an employer who must comply, in a prescribed electronic format, with section NC 15(1)(a) and NC 15(1)(b) of the Income Tax Act 1994
b: a PAYE intermediary.
2: In section 139AA(2)
a: or a PAYE intermediary An employer
b: or the PAYE intermediary if the employer
3: Subsections (1) (2)
121: New
section 140CB
1: After section 140C
140CB: Maori authority distribution penalty tax payable where end of year debit balance
1: A Maori authority that is liable to pay further income tax under section MK 8 of the Income Tax Act 1994
2: The amount of the Maori authority distribution penalty tax is 10% of the amount of further income tax that gives rise to the liability for the Maori authority distribution penalty tax.
2: Subsection (1)
122: New
section 140DB
1: After section 140D
140DB: Application of other provisions of Act to Maori authority distribution penalty tax
1: Subject to the Maori authority rules, the other provisions of this Act and the Income Tax Act 1994 section BB 1 of the Income Tax Act 1994
2: Despite subsection (1)
a: Parts HI or MK of the Income Tax Act 1994
b: calculating a taxpayer's residual income tax liability for the purpose of section 120K of this Act
2: Subsection (1)
123: Tax shortfalls
1: In section 141(12A) 141E 141EB
2: Subsection (1)
124: Not taking reasonable care
1: In section 141A(3) , in taking a taxpayer's tax position, has used an acceptable interpretation of the tax law takes an acceptable tax position
2: After section 141A(3)
4: Subsection (3) and section 141B(1B)
3: Subsections (1) (2)
125: Unacceptable interpretation
1: In section 141B Unacceptable tax position
2: Section 141B(1)
1: A taxpayer takes an unacceptable tax position if, viewed objectively, the tax position fails to meet the standard of being about as likely as not to be correct.
3: After section 141B(1)
1B: A taxpayer does not take an unacceptable tax position merely by making a mistake in the calculation or recording of numbers in a return.
4: Section 141B(2)
2: A taxpayer is liable to pay a shortfall penalty if the taxpayer takes an unacceptable tax position and the tax shortfall arising from the taxpayer's tax position is more than both—
a: $20,000; and
b: the lesser of $250,000 and 1% of the taxpayer's total tax figure for the relevant return period.
5: In section 141B(7) paragraph (a)
7: The matters that must be considered in determining whether the taxpayer has taken an unacceptable tax position include—.
6: Subsections (1) to (5)
126: Gross carelessness
1: In section 141C(4) , in taking a taxpayer's tax position, has used an acceptable interpretation of tax law takes an acceptable tax position
2: Subsection (1)
127: Abusive tax position
1: In section 141D(1) having applied an unacceptable interpretation to a tax law having taken an unacceptable tax position
2: After section 141D(3)
3B: The penalty payable for taking an abusive tax position is reduced to 20% of the resulting tax shortfall if—
a: the taxpayer is a party to an arrangement to which section 141EB
b: the sum of the tax shortfall from the arrangement for the taxpayer and the tax shortfalls from the arrangement for persons with whom the taxpayer is associated under section OD 7 of the Income Tax Act 1994
c: the taxpayer has independent advice stating that the taxpayer's tax position is not an abusive tax position.
3: Section 141D(4)
4: This section applies to a taxpayer if the taxpayer has taken an unacceptable tax position and the tax shortfall from the tax position is more than $20,000.
4: Section 141D(7)(a)
a: is an unacceptable tax position at the time at which the tax position is taken; and.
5: Subsections (1) (3) (4)
6: Subsection (2)
128: New
sections 141EB 141EC
1: After section 141E
141EB: Promoter penalties
1: The promoter of an arrangement is liable to a promoter penalty if—
a: a taxpayer becomes a party to the arrangement and a shortfall penalty for an abusive tax position is imposed on the taxpayer as a result of the arrangement; and
b: the arrangement is offered, sold, issued or promoted to 10 or more persons in an income year.
2: For the purpose of subsection (1)(b)
3: An arrangement is treated as being offered, sold, issued or promoted to all shareholders of a loss attributing qualifying company and partners of a partnership if the arrangement is offered, sold, issued or promoted to the loss attributing qualifying company or partnership respectively.
4: The amount of the promoter penalty is the greater of nil and the sum of tax shortfalls resulting from taking an abusive tax position on the arrangement, for which the promoter would have been liable if the promoter had—
a: been a party to the arrangement in the place of each party to the arrangement to whom the arrangement was offered, sold, issued or promoted; and
b: taken the tax position that the arrangement produced for the promoter the taxation-related benefits that were intended by the parties to the arrangement; and
c: had the taxation-related characteristics that would, under the tax position referred to in paragraph (b)
5: A promoter who satisfies paragraph (a) of the definition of promoter in section 141EC
a: jointly and severally with the other such promoters of the arrangement, for the whole promoter penalty:
b: jointly and severally with each promoter of the arrangement who is liable for part of the promoter penalty under subsection (6)
6: A promoter who does not satisfy paragraph (a) of the definition of promoter in section 141EC
141EC: Definition of promoter
1: In section 141EB
a: a person who is a party to, or is significantly involved in formulating, a plan or programme from which an arrangement is offered; or
b: a person who is aware of material and relevant aspects of the arrangement and who sells, issues or promotes the selling or issuing of, the arrangement, whether or not for remuneration.
2: For the purpose of subsection (1)
2: Subsection (1)
129: New
section 141FB
1: After section 141F
141FB: Reduction of penalties for previous behaviour
1: A shortfall penalty, payable by a taxpayer, under section 141E
a: related to the same type of tax as does the current penalty; and
b: was for evasion or a similar act; and
c: was not reduced for voluntary disclosure by the taxpayer; and
d: was eligible for a reduction under this subsection.
2: A shortfall penalty payable by a taxpayer under any of sections 141A to 141D subsection (3)
a: related to the same type of tax as does the current penalty; and
b: if the current penalty is for—
i: evasion or a similar act, was for evasion or a similar act:
ii: gross carelessness or taking an abusive tax position, was for evasion or a similar act or for gross carelessness or for taking an abusive tax position:
iii: not taking reasonable care or taking an unacceptable tax position, was a shortfall penalty; and
c: was not reduced for voluntary disclosure by the taxpayer; and
d: was eligible for a reduction under this subsection.
3: The date referred to in subsection (2)
a: 2 years, if the current penalty relates to the taxpayer's application of the PAYE rules, to fringe benefit tax, to goods and services tax, to resident withholding tax; or
b: 4 years, if the current penalty relates to any other type of tax.
4: For the purpose of subsection (2)
2: Subsection (1)
130: Reduction in penalty for voluntary disclosure of tax shortfall
1: In section 141G(1) 141E 141EB
2: Subsection (1)
131: Reduction for disclosure of unacceptable interpretation
1: In the section heading to section 141H interpretation tax position
2: Subsection (1)
132: Reduction where temporary shortfall
1: In section 141I(1) 141E 141EB
2: Subsection (1)
133: New
section 141JAA
1: After section 141J
141JAA: Shortfall penalty for not taking reasonable care or for taking unacceptable tax position may not be more than $50,000
1: Despite section 141J
a: the date that is 3 months after the due date of the return to which the shortfall relates; and
b: the date that follows the due date of the return to which the shortfall relates by the lesser of—
i: 1 return period; and
ii: 6 months.
2: This section does not apply if section 141K
2: Subsection (1)
134: New
section 141JB
1: After section 141JA
141JB: Application of
Part 9
1: The provisions relating to the late filing penalty, the late payment penalty and shortfall penalties apply to a person acting as a PAYE intermediary for an employer in relation to an employee and a pay period as if the person were the employer, unless the employer has failed for the pay period to—
a: pay to the person the salary or wages relating to the employee as required by section NBB 4(1)(b) of the Income Tax Act 1994
b: provide the information required by the person as required by section NBB 4(1)(d) of the Income Tax Act 1994
2: The provisions relating to the late filing penalty, the late payment penalty and shortfall penalties do not apply to a PAYE intermediary but continue to apply to the employer if an employer has not paid gross salary or wages to the intermediary or has not supplied the information required by the intermediary within the agreed time.
2: Subsection (1)
135: Increased penalty for obstruction
1: In section 141K(1) 141E 141EB
2: Subsection (1)
136: Duty of Commissioner to report on application of penalties
1: In section 141L(1) 141E 141EB
2: Subsection (1)
137: Due date for payment of late filing penalty
1: Section 142(1)(a) 142(1)(b)
a: the terminal tax date for the income year to which the annual tax return relates; or.
2: Subsection (1)
138: New date for payment of tax that is not a penalty
1: Section 142A(1)
1: If a taxpayer has been assessed with tax and the Commissioner increases the amount of the assessment after the due date for payment of the assessed tax, the Commissioner must fix a new date for the payment of the increase in the tax and give notice of the new date to the taxpayer in the notice of the increase of assessment.
1B: If a taxpayer has made a return that quantifies an amount of tax that is payable by a due date and, after the due date, the Commissioner assesses an increased amount of tax as being payable by the taxpayer, the Commissioner must fix a new date for the payment of the increase in the tax and give notice of the new date to the taxpayer in the notice of assessment.
2: Subsection (1)
139: Recovery of civil penalties
1: After section 156A(3)
4: Subsection (3) section 141JB(1) taxpayer PAYE intermediary
2: Subsection (1)
140: Deduction of tax from payments due to defaulters
1: In section 157(10) paragraph (b)
bb: amounts paid to an intermediary in accordance with Part MBB of the Income Tax Act 1994
2: In section 157(10) taxpayer taxpayer
a: in relation to income tax within the meaning of paragraphs (b) and (d) income tax
b: in relation to income tax within the meaning of paragraph (e) income tax
3: Subsection (2)
141: New
section 165A
1: After section 165AA
165A: Recovery of excess tax credits allowed
1: If the Commissioner is satisfied that a credit of tax allowed or credited to a person under a tax law exceeded the amount properly allowable or able to be credited to the person under that tax law, the Commissioner may recover the amount of the excess from the person in the same manner, with any necessary modifications, as if the excess were income tax payable under the Income Tax Act 1994
2: Subsection (1) sections LC 3, LC 4(11) and LD 1(6)
2: Subsection (1)
142: Recovery of tax deductions from employers
1: In section 167 or PAYE intermediaries employers
2: After section 167(2)
3: This section applies to a person instead of an employer if the person is acting as a PAYE intermediary for the employer in relation to an employee and a pay period, and the employer, for the pay period, has—
a: paid to the person the salary or wages relating to the employee as required by section NBB 4(1)(b) of the Income Tax Act 1994
b: provided the information required by the person as required by section NBB 4(1)(d) of the Income Tax Act 1994
4: For the purpose of applying this section to a person acting as a PAYE intermediary, a reference to an employer person acting as a PAYE intermediary
3: Subsections (1) (2)
143: Employer failing to make tax deductions
1: In section 168 or PAYE intermediary Employer
2: After section 168(3)
4: This section applies to a person instead of an employer if the person is acting as a PAYE intermediary for the employer in relation to an employee and a pay period, and the employer, for the pay period, has—
a: paid to the person the salary or wages relating to the employee as required by section NBB 4(1)(b) of the Income Tax Act 1994
b: provided the information required by the person as required by section NBB 4(1)(d) of the Income Tax Act 1994
5: For the purpose of applying this section to a person acting as a PAYE intermediary, references to an employer person acting as a PAYE intermediary
3: Subsections (1) (2)
144: Unpaid tax deductions, etc to constitute charge on employer's property
1: In section 169 or PAYE intermediary's employer's
2: After section 169(1)
1B: This section applies to a person instead of an employer if the person is acting as a PAYE intermediary for the employer in relation to an employee and a pay period, and the employer, for the pay period, has—
a: paid to the person the salary or wages relating to the employee as required by section NBB 4(1)(b) of the Income Tax Act 1994
b: provided the information required by the person as required by section NBB 4(1)(d) of the Income Tax Act 1994
1C: For the purpose of applying this section to a person acting as a PAYE intermediary, references to an employer person acting as a PAYE intermediary
3: Subsections (1) (2)
145: New
section 173MB
1: After section 173M
173MB: Limitation on transfer by PAYE intermediary
Despite sections 173L and 173M and section NBB 6(4) of the Income Tax Act 1994
a: may not be treated as tax overpaid by the person other than as a PAYE intermediary for the employer; and
b: may not be transferred to the person in another capacity or to another taxpayer.
2: Subsection (1)
146: Power of Commissioner in respect of small amounts of refunds or tax payable
In section 174AA refrain from either making an assessment, collecting, or write off tax, refrain from making an assessment of tax, refrain from collecting tax or refrain from
147: New
section 181B
1: After section 181
181B: Remissions and refunds of Maori authority distribution penalty tax
1: The Commissioner must remit any Maori authority distribution penalty tax imposed under section 140CB
a: liability for the penalty tax arose because of a debit arising to the Maori authority credit account under section MK 5(1)(h) of the Income Tax Act 1994 section MK 4(1)(g) of the Income Tax Act 1994
b: liability for the penalty tax arose because of a refund of a Maori authority distribution having been sent but not having been received by the Maori authority, or not having been known by the Maori authority to have been received, before the end of the imputation year; or
c: liability for the penalty tax arose because of a debit arising to the Maori authority credit account under section MK 5(1)(j) of the Income Tax Act 1994
2: If the Commissioner remits any Maori authority distribution penalty tax under this section, the Commissioner must also remit any late payment penalty imposed under section 139B
3: If the Commissioner remits any Maori authority distribution penalty tax under subsection (1)(a) section 139B
2: Subsection (1)
148: Remission for reasonable cause
1: In section 183A(1) , and a dividend withholding payment penalty tax imposed by section 140C , a dividend withholding payment penalty tax imposed by section 140C section 140CB
2: Subsection (1)
149: Cancellation of interest
Section 183C(2)
150: New
section 185B
1: After section 185
185B: Application of particular provisions in this Part to PAYE‘intermediaries
1: Section 183A taxpayer subsections (1A) and (3) PAYE intermediary
2: Sections 183C, 183D to 183F, 183H, 183I, 184A and 184B taxpayer PAYE intermediary
3: Section 183G
a: the references to a taxpayer PAYE intermediary
b: paragraph (d)
2: Subsection (1)
3: Amendments to other Acts
Amendments to Goods and Services Tax Act 1985
151: Goods and Services Tax Act 1985 Sections 152 to 161 Goods and Services Tax Act 1985
152: Interpretation
1: This section amends section 2
2: After the definition of consideration in money content
3: In the definition of taxable supply , 11AB 11A
4: After the definition of Taxation Review Authority telecommunications services telecommunications supplier
153: Meaning of term supply
In section 5(14) , 11AB 11A
154: Imposition of goods and services tax on supply
The proviso to section 8(2)
3: Despite subsection (2)
a: the goods are in New Zealand at the time of the supply; or
b: the services are physically performed in New Zealand by a person who is in New Zealand at the time the services are performed.
4: Despite subsection (3) subsection (3)
5: Subsections (3) and (4)
6: Despite subsection (2)
7: Subsection (6)
8: Despite subsection (6) and section 8A
9: For the purpose of subsection (6) and section 11AB
a: the person who pays for the services:
b: the person who controls the commencement of the supply:
c: the person who controls the termination of the supply:
d: the person who contracts for the supply.
155: New
section 8A After section 8
8A: Certain supplies of telecommunications services
1: Despite section 8(2) section 8(6)
2: Subsection (1)
3: If subsection (1) subsection (1)
4: In this section, address means the physical residential or business address of a person to which invoices are sent, and does not include a post office box number.
156: Zero-rating of services
1: After section 11A(1)(b)
bb: the services are the transport of passengers from a place in New Zealand to another place in New Zealand by sea as part of an international cruise if either the first place of departure, or the final place of destination, of the cruise is outside New Zealand; or.
2: After section 11A(4)
5: This section does not apply to supplies of telecommunications services.
157: New
section 11AB After section 11A
11AB: Zero-rating of telecommunications services
A supply of services that is chargeable with tax under section 8
a: the services are the supply of telecommunications services to an overseas telecommunications supplier by a telecommunications supplier resident in New Zealand; or
b: the services are the supply of telecommunications services to a person outside New Zealand, not being an overseas telecommunications supplier, for a telecommunications service that is initiated outside New Zealand under section 8(9)
158: Fringe benefits and entertainment expenses
In section 21I(2)(c) 11AB 11A,
159: Tax invoices
In the proviso to section 24(4) , 11AB 11A
160: Persons making supplies in course of taxable activity to be registered
At the end of section 51(1)(d) person. person; or
e: the supply, to persons who are not resident in New Zealand but are physically present in New Zealand, of telecommunications services that are treated as being supplied in New Zealand under sections 8(6) and 8A
161: Agents and auctioneers
In section 60(6) , 11AB 11A Amendments to Income Tax Act 1976
162: Income Tax Act 1976 Section 163 Income Tax Act 1976
163: New
section 191WF
1: After section 191WE
191WF: Deduction to amalgamating company for depreciable property transferred
Despite section 108
2: Subsection (1)
3: Despite subsection (2) (1) Amendments to Injury Prevention, Rehabilitation, and Compensation Act 2001
164: Injury Prevention, Rehabilitation, and Compensation Act 2001 Sections 165 to 169 Injury Prevention, Rehabilitation, and Compensation Act 2001 the principal Act
165: Interpretation
1: Section 6 paragraph (a) employer a person , other than a person acting for an employer as a PAYE intermediary as defined in section OB 1 of the Income Tax Act 1994
2: Subsection (1)
166: Liability to pay Residual Claims levy
1: Section 193(5)(b) or section MC 2
2: Subsection (1)
167: Collection of levies by deduction from employee earnings
1: Section 221(1)(a)
a: inserting after the words an employer or a PAYE intermediary for an employer
b: inserting after the words employer, the employer or person
2: Section 221
3: In this section, PAYE intermediary means a PAYE intermediary as defined in section OB 1 of the Income Tax Act 1994
3: Subsections (1) (2)
168: Offences in relation to deductions
1: Section 316(1)(a) an employer , or a PAYE intermediary
2: Section 316(1)(d) any employer , any PAYE intermediary
3: Section 316
6: In this section, PAYE intermediary means a PAYE intermediary as defined in section OB 1 of the Income Tax Act 1994
4: Subsections (1) to (3)
169: Schedule 4
1: Schedule 4 clause (1)(d)
db: a PAYE intermediary as defined in section OB 1 of the Income Tax Act 1994
2: Schedule 4 clause 1 every employer , PAYE intermediary,
3: Schedule 4
a: inserting in clause 4 an employer or a PAYE intermediary
b: inserting in clause 4 the employer or the PAYE intermediary
4: Schedule 4 of the principal Act is amended by omitting from clause 5 the employer of that employee is not neither the employer of that employee nor a PAYE intermediary is
5: Schedule 4 of the principal Act is amended by omitting from clause 7(b) or section MC 2
6: Schedule 4
a: inserting in clause 8 An employer Neither
b: omitting from clause 8 is not nor a PAYE intermediary is
c: inserting in clause 8 unless the employer or the PAYE intermediary
7: Schedule 4 of the principal Act is amended by omitting from clause 9 NC 14, and NC 17 and NC 14
8: Schedule 4 clause 17 an employer of the employee or by a PAYE intermediary
9: Schedule 4
a: omitting from clause 18 made by 1 or more employers
b: inserting in clause 18 the Corporation or its agent
10: Schedule 4 of the principal Act is amended by inserting in clause 19(a) the person's employer or by a PAYE intermediary
11: Schedule 4 of the principal Act is amended by inserting in clause 22 income tax PAYE intermediary,
12: Subsections (1) to (4) (6) (8) to (11)
13: Subsections (5) (7) Amendments to Taxation (Relief, Refunds and Miscellaneous Provisions) Act 2002
170: Taxation (Relief, Refunds and Miscellaneous Provisions) Act 2002 Sections 171 to 176 Taxation (Relief, Refunds and Miscellaneous Provisions) Act 2002
171: Definitions
In section 66(30) section 10(3) section 13(3)
172: Interpretation
In sections 73(8) (10) 1 July 2002 1 December 2002
173: Certain rights of objection not conferred
In section 86(4) 1 July 2002 1 December 2002
174: Certain rights of challenge not conferred
In section 87(4) 1 July 2002 1 December 2002
175: Late payment penalty
In section 88(10) 1 July 2002 1 December 2002
176: Sections replaced
In section 92(4) 1 July 2002 1 December 2002