Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018

1: Title
This Act is the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018.
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: Section 261(7)
3: Section 331
4: Sections 413 414
5: Section 337
6: Sections 9 10(2) and (4) 14 16(2) 59 60 64 76 80 102 103 104 105 106 114 116 144 146 147 155(2) and (3) 160(2) 161(3) 167 168 171 172 174 176 177 184 194 214 243(5) and (13) 245 248 249 252(6) 264 286(1) 293(3) 330 342(1)
7: Sections 37 293(4)
8: Section 256(2)
9: Sections 77 173
10: Section 88
11: Sections 84(2) 85 160(1) and (3) 161(1), (2), and (4)
12: Section 366
13: Section 333(2)
14: Sections 128 129 130 278(2)
15: Section 136
16: Section 243(68)
17: Section 339
18: Sections 44 78 79 81 82 122 243(16)﻿(a) and (b), (70), and (72)
19: Sections 39 48 253
20: Section 243(15)
21: Sections 66 86
22: Sections 31 157 243(2), (25), (41), and (48)
23: Sections 34 67 165 166 170 243(21), (35), and (37)
24: Section 110
25: Sections 12 47 65(1) 94 243(3) 254 314 333(1)
26: Section 137
27: Section 342(2)
28: Sections 5 209(2) 252(3)
29: Section 243(51)
30: Sections 23 36
31: Sections 43 68 96 to 99 101 163 164 187 188 212 213 230 241 243(17), (23), (38), and (78) 311 401 408 409 410 415 418 419
32: Sections 8 25 63 65(2) 69 91 92 117 120 138 139 152(2) 154 220(2) and (3) 224 225 243(9), (36), (42), (44), (45), (50), and (69) 250 251(1) 256(1) and (4) 338 345 399 404 405
33: Section 256(3)
34: Sections 11 15 17(1) and (3)﻿(a) and (c) 19 22 24 32 42 50 61 87 109 115 190 192 195 243(14), (19), (60), (64), (73), (75), (77), and (79) 310
35: Sections 26 27 28 29 30 52 53 54 55 56 57 58 70 71 72 73 74 75 83 118 124 132 140 141 143 145 148 149 150 151 152 162 169 175 185 193 200 202 204 217 234 243(8), (10), (12), (27), (31), (32), (39), (40), (57), (58), (61), (62), (63), (80), and (87) 261(23) 278(2) 290 317 319 325(4) 346 347 348 350 358 359 364 370 381 382(1) 389 392 393 395(1) 416 417
36: Sections 156 255 397
37: Sections 17(2) and (3)﻿(b) 20 41 100 142 153 158 159 183 186(2) 189 191 196 197 198(3) 199 201 203 205 206(2) and (3) 207 208 209(1), (3), and (4) 210 215(2) 216 218(4) 237 239 240 243(20), (24), (26), (30), (52), (53), and (54) 252(1), (2), (4), (5), and (7) 259 261(4), (5), (6), (13), (15), (20), (22), (25), and (26) 262 267 269 270 271 272 274 275 276 279 280 281(1) 282 283 284 291 300 301(1) 303 305 308 309 313 315 316 334 336 340 341 343 351 352 353(1), (5), and (6) 354 355 356 357 360(2) 361 363 365 367 371 372(1)﻿(a) to (c) 374 375 376 377 378 379 380 382(2) 383 384 385 386 387 388 391 394 395(2) 406 411
38: Sections 112 121 131 178 179 180(1) and (2) 181 182 186(1) 215(1) 218(1), (2), and (3) 219 220(1) 221 222 223 226 227 228 229 233 235 236 238 242 243(7), (29), (43), (46), (55), (65), (66), (67), (82), and (83) 251(2) 261(2), (3), (8), (9), (10), (12), (14), (16), (17), (18), (21), (24), and (27) 263 265 266 268 273 281(2) 285 286(2) to (5) 287 288 293(1) and (2) 294 295 296 297 298 299 301(2) and (3) 304 318 320 322 324 325(1) to (3), (5) and (6) 326 328 329 332 335 353(2) and (8) 360(3) 368 369 372(1)﻿(d) and (2) 420 421
1: Annual rates of income tax
3: Annual rates of income tax for 2017–18 tax year
Income tax imposed by section BB 1
2: Amendments to Income Tax Act 2007
4: Income Tax Act 2007
Part 2 Income Tax Act 2007 2018-03-29 Income Tax Act 2007 See s 2(1) and amends noter’s paper notes for commencement at date of assent, and s 2(6)-(33) for deemed amendments effective at date of assent. 2018-09-29 Income Tax Act 2007 See s 2(34) (date that is sixth months after assent) 2018-04-01 Income Tax Act 2007 See s 2(35) 2018-07-01 Income Tax Act 2007 See s 2(36) 2019-04-01 Income Tax Act 2007 See s 2(37) 2020-04-01 Income Tax Act 2007 See s 2(38)
5: Section BF 1 amended (Other obligations)
In section BF 1 withdrawal tax
6: Section CB 6A amended (Disposal within 2 years: bright-line test for residential land)
1: In section CB 6A
a: in the heading, replace 2 years 5 years
b: in the heading to subsection (1), replace 2 years 5 years
c: in subsection (1), in the words before the paragraphs, replace 2 years 5 years
d: in subsection (2), in the words before the paragraphs, replace 2 years 5 years
e: in subsection (3), replace 2 years 5 years
f: in subsection (4), replace 2 years 5 years
g: in the heading to subsection (4B), replace 2-year 5-year
2: Subsection (1) applies to a person’s disposal of residential land if the date that the person first acquires an estate or interest in the residential land is on or after the date on which the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018
3: Despite subsection (2), subsection (1) does not apply to a person’s disposal of a freehold estate in residential land that the person acquired as the owner of a leasehold estate with a perpetual right of renewal, if the person was granted the leasehold estate before 29 March 2018.
4: Despite subsection (2), subsection (1) does not apply to a person’s disposal of an estate or interest in residential land that the person acquired as the result of the completion of a land development or subdivision, if before 29 March 2018 the person entered into the agreement under which they acquired the estate or interest upon the completion of the land development or subdivision. Section 6(3) inserted 18 March 2019 section 335 Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 Section 6(4) inserted 18 March 2019 section 335 Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019
7: Section CB 16A amended (Main home exclusion for disposal within 2 years)
1: In section CB 16A 2 years 5 years
2: Subsection (1) applies to a person’s disposal of residential land if the date that the person first acquires an estate or interest in the residential land is on or after the date on which the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018
3: Despite subsection (2), subsection (1) does not apply to a person’s disposal of a freehold estate in residential land that the person acquired as the owner of a leasehold estate with a perpetual right of renewal, if the person was granted the leasehold estate before 29 March 2018.
4: Despite subsection (2), subsection (1) does not apply to a person’s disposal of an estate or interest in residential land that the person acquired as the result of the completion of a land development or subdivision, if before 29 March 2018 the person entered into the agreement under which they acquired the estate or interest upon the completion of the land development or subdivision. Section 7(3) inserted 18 March 2019 section 336 Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 Section 7(4) inserted 18 March 2019 section 336 Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019
8: Section CB 32C amended (Dividend income for first year of look-through company)
1: Replace section CB 32C(5)﻿(b)
b: reserves imputation credit
2: Replace section CB 32C(7)﻿(a)﻿(ii)
ii: it met all of its liabilities at market value, including income tax liabilities for the disposal year but excluding income tax liabilities that would arise solely from meeting all of its liabilities at market value or from disposing of all of its property; and
3: After section CB 32C(7) Formula
7B: For the purposes of subsection (5)﻿(b), the amount of reserves imputation credit is calculated using the formula— current credits + future amounts. Definition of items in formula
7C: In the formula in subsection (7B),—
a: current credits
b: future amounts
4: In section CB 32C(9)
a: in paragraph (a)﻿(i) replace imputation credit account imputation credit account on the relevant day
b: in paragraph (a)﻿(ii) replace before on or before
5: In section CB 32C(10) In subsections (7) and (9)﻿(a) In this section
6: In section CB 32C(11) subsection (9)﻿(a)﻿(ii) subsections (7C)﻿(b) and (9)﻿(a)﻿(ii)
7: Subsections (1) to (6) apply for the 2017–18 and later income years.
9: Section CD 5 amended (What is a transfer of value?)
1: In section CD 5(2B) cancellation of a share of the shareholder’s rights cancellation of a share or the shareholder’s rights
2: Subsection (1) applies for the 2008–09 and later income years.
10: Section CD 15 amended (Tax credits linked to dividends)
1: Replace section CD 15(1) Imputation credits and withholding taxes
1: The amount of a dividend includes—
a: an imputation credit attached to the dividend:
b: an amount of RWT or NRWT, as applicable, withheld from or paid in relation to the dividend.
2: After section CD 15(3) Beneficiary income
3B: Despite subsection (1)﻿(b) and for the purposes of section HC 6 section HC 6(2)﻿(c)
3: In section CD 15 NRWT pay RWT RWT substitution payment tax credit
4: Subsection (2) applies for the 2008–09 and later income years but does not apply to a person and an income year in relation to a tax position taken by the person—
a: in a return of income filed before 1 April 2019 for the 2008–09 or later income years; and
b: relating to the treatment of tax credits for resident passive income in a way that is not consistent with the amendments made in this Act for the treatment of those tax credits; and
c: relying on section CD 15
11: Section CD 25 amended (Treasury stock acquisitions)
1: Replace section CD 25(1)﻿(a)
a: the shares acquired by the company are held by the company in itself, including shares acquired by the company as the result of the application of section CE 6 (Trusts are nominees) and, in the case of shares acquired other than as the result of the application of section CE 6, section 67A(1) of the Companies Act 1993 or section 24 of the Co-operative Companies Act 1996 apply to provide that the shares are not deemed to be cancelled; and
2: Replace section CD 25(2)﻿(b)
b: at the first anniversary, the company has failed to transfer a share of the same class in an arm’s length transfer and has failed to allocate a share or right to a share, of the same class to an employee share scheme beneficiary under an employee share scheme, except if the company is established under New Zealand co-operative company legislation; or
3: After section CD 25(6) Employee share schemes
7: For the purposes of subsection (2), if the company has, before the first anniversary, allocated a share or right to a share to an employee share scheme beneficiary under an employee share scheme but subsequently the allocation is cancelled, the shares acquired under subsection (1) by the company are treated as acquired by the company on the date of cancellation for the amount the company paid for their acquisition under subsection (1).
4: In section CD 25 employee share scheme employee share scheme beneficiary
12: New section CD 29C inserted (Transfers to shareholders by ASX-listed Australian company of shares in subsidiary)
1: After section CD 29B
CD 29C: Transfers to shareholders by ASX-listed Australian company of shares in subsidiary
When an ASX-listed Australian company makes a transfer to shareholders of shares in a subsidiary company, the transfer is not a dividend if section ED 2B (Transfers to shareholders by ASX-listed Australian company of shares in subsidiary) applies to the transfer. ASX-listed Australian company, company, dividend, share, shareholder
2: Subsection (1) applies for the 2016–17 and later income years.
13: Section CD 36 amended (Foreign investment fund income)
1: In section CD 36(1)﻿(b)﻿(iv) method. method; and
2: After section CD 36(1)﻿(b)﻿(iv)
d: the amount is excluded income under section CX 57B
3: In section CD 36 excluded income
14: Section CD 39 amended (Calculation of amount of dividend when property made available)
1: In section CD 39(9)﻿(c)﻿(ii) fully-imputed fully imputed
2: In section CD 39 fully-imputed dividend fully imputed
3: Subsections (1) and (2) apply for the 2008–09 and later income years.
15: Section CD 43 amended (Available subscribed capital (ASC) amount)
1: Before section CD 43(7) Subscriptions amount increase: employee share scheme
6E: Unless subsection (6F) applies, when the company is part of an employee share scheme, the subscriptions amount includes, in addition to any amount under subsection (2)﻿(b), the following amounts:
a: if the company has a deduction under section DV 27(6) (Employee share schemes) (the employer company
i: for shares of the same class as the shares issued under the employee share scheme by the employer company; or
ii: if the employer company does not issue shares under the employee share scheme, for shares of the class most similar to the shares issued under the employee share scheme:
b: the subscriptions amount for shares of the same class as the shares issued by the company under the employee share scheme (the issuer company
i: the issuer company is not the employer company; and
ii: the company is a member of a wholly-owned group of companies of which the employer company is a member; and
iii: before the application of section YC 4 (Look-through rule for corporate shareholders), no member of the wholly-owned group has a voting interest in the issuer company. Exception to subsection (6E) by election
6F: Subsection (6E) does not apply if—
a: the shares issued under the employee share scheme are issued for market value or a reasonable estimate of market value; and
b: the company elects to apply this subsection. Formula: employer companies
6G: For the purposes of subsection (6E)﻿(a), the amount is calculated using the formula— subscription amount − consideration paid. Definition of items in formula
6H: In the formula in subsection (6G),—
a: subscription amount
b: consideration paid payee company Employer companies’ negative amounts
6I: If the amount calculated using the formula in subsection (6G) is negative, then the absolute value of the amount is subtracted from the company’s subscriptions amount for the issue of shares of the class most similar to the shares issued under the employee share scheme. Formula: employer companies’ negative amounts
6J: If the amount calculated using the formula in subsection (6G) is negative, then a positive amount calculated using the formula in this subsection is a dividend paid by the company to the payee company— formula amount − ASC. Definition of items in formula
6K: In the formula in subsection (6J),—
a: formula amount
b: ASC
2: After section CD 43(20) Subscriptions amount exclusion: employee share scheme
20B: The subscriptions amount does not include an amount of consideration that the company received for the issue of shares, if the payer of the consideration for the issue of shares is a member of the same wholly-owned group of companies as the company, and the company has, before the application of section YC 4 to the company, voting interests in the payer.
3: After section CD 43(28) Subscriptions amount decrease: employee share scheme
29: An amount equal to the amount of the company’s income under section CV 20 (Employee share schemes) or equal to the amount of income under section CV 20 for another company in the same wholly-owned group of companies, as the case may be, is subtracted from the subscriptions amount—
a: for shares of the same class as the shares issued under the employee share scheme by the company; or
b: if the company does not issue shares under the employee share scheme, for shares of the class most similar to the shares issued under the employee share scheme.
4: In section CD 43 deduction employee employee share scheme voting interest wholly-owned group of companies
16: Section CD 44 amended (Available capital distribution amount)
1: After section CD 44(8B) Capital gain amount: FIF income calculated using fair dividend rate or cost methods
8C: A company derives a capital gain amount for the purposes of this section in relation to an attributing interest in a FIF for which the company uses the fair dividend rate method or the cost method to calculate their FIF income for a period. The capital gain amount is an amount equal to the greater of—
a: the total amount of dividends and gains on disposal derived from the interest in the period that is excluded income under section CX 57B
b: zero. Gains on disposal
8D: For the purposes of subsection (8C)﻿(a), a gain on disposal is the difference between the consideration on disposal of the interest and the cost of acquisition of the interest.
2: In section CD 44(9)﻿(a) the adjusted tax value for property that is a building for which no depreciation loss arises under section EE 48(2) and (3) (Effect of disposal or event), the adjusted tax value
3: In section CD 44(18) revenue account property. revenue account property, and includes an attributing interest in a FIF for which income is calculated using either the fair dividend rate method or the cost method.
4: In section CD 44 attributing interest cost method fair dividend rate method FIF FIF income
5: Subsection (2) applies for the 2008–09 and later income years.
17: Section CE 1 amended (Amounts derived in connection with employment)
1: In section CE 1(1)﻿(d) a share purchase agreement an employee share scheme
2: After section CE 1(3) Persons on shadow payrolls
3B: A PAYE income payment that is paid by a non-resident employer to a person who undertakes employment services in New Zealand but who remains on the employer’s payroll system in a country or territory outside New Zealand is treated as derived by the person on the 20th day after payment when the employer chooses to deliver their employment income information under section 23J(3)
3: In section CE 1
a: insert employee share scheme
b: insert employer employment income information New Zealand non-resident PAYE income payment
c: delete share purchase agreement
18: Section CE 2 amended (Value and timing of benefits under share purchase agreements)
1: Repeal section CE 2(7)
2: In section CE 2 share purchase scheme
19: Sections CE 2 to CE 4 replaced
Replace sections CE 2 to CE 4
CE 2: Benefits under employee share schemes
Benefit
1: A person who is an employee share scheme beneficiary described in section CE 7(a)﻿(i) or (ii) receives a benefit for the purposes of section CE 1(1)﻿(d) in relation to shares or related rights under the employee share scheme equal to the positive amount calculated on the share scheme taxing date using the formula— share value − consideration paid + consideration received − previous income. Definition of items in formula
2: In the formula in subsection (1),—
a: share value
b: consideration paid
c: consideration received
d: previous income Negative amount: deduction
3: A negative amount calculated using the formula in subsection (1) is a deduction of the person. Positive and negative amount: cost of revenue account property
4: A positive or negative amount calculated using the formula in subsection (1) is added to the consideration paid by the person for acquiring the shares, for the purposes of section DB 23 (Cost of revenue account property). Apportionment
5: For the person’s benefit under subsection (1), the portion of that benefit calculated using the formula is treated as non-residents’ foreign-sourced income— benefit before reduction × offshore period ÷ earning period. Definition of items in formula
6: In the formula in subsection (5),—
a: benefit before reduction
b: offshore period earning period
i: the person is not resident in New Zealand; and
ii: any services the person performs for the relevant employer give rise to an amount of income that is a foreign-sourced amount:
c: earning period
i: the first date used to measure the person’s right in relation to the vesting of shares or relevant rights:
ii: the first date that the person has a right in relation to the vesting of shares or relevant rights. When subsection (8) applies
7: Subsection (8) applies when an employer to whom section RD 22(2B) (Returns for amounts of tax paid to Commissioner) and section 46(1) of the Tax Administration Act 1994 apply—
a: has made an election under section RD 7B (Treatment of certain benefits under employee share schemes) to withhold and pay an amount of tax in relation to a benefit received by an employee share scheme beneficiary under this section; or
b: is required to furnish an employer monthly schedule under section 46(6B) of the Tax Administration Act 1994 in relation to a benefit received by an employee share scheme beneficiary under this section. Deferral of income recognition
8: Despite section CE 1(1)﻿(d), the employee share scheme beneficiary is treated as deriving employment income in relation to the benefit in the PAYE income payment form period after the 1 in which they receive the benefit. amount, amount of tax, consideration, deduction, employee, employee share scheme, employee share scheme beneficiary, employer, employer monthly schedule, employment income, foreign-sourced amount, income, market value, non-residents’ foreign-sourced income, pay, PAYE income payment form period, replacement employee share scheme, resident in New Zealand, share, share scheme taxing date
20: Section CE 2 amended (Benefits under employee share schemes)
1: Replace section CE 2(7)
7: Subsection (8) applies when an employer is required to provide employment income information under sections RD 22(3) 23E to 23H section 23K
2: In section CE 2(8) in the PAYE income payment form period after the 1 in which they receive the benefit on the ESS deferral date
3: After section CE 2(8) Meaning of ESS deferral date
9: For the purposes of this section and sections RD 6 and RD 7B ESS deferral date
4: In section CE 2
a: insert employment income information ESS deferral date
b: delete employer monthly schedule PAYE income payment form period
21: Section CE 5 amended (Meaning of expenditure on account of an employee)
In section CE 5 associated person close company dividend life insurance policy superannuation category 1 scheme superannuation category 2 scheme superannuation category 3 scheme trustee
22: Sections CE 6 and CE 7 replaced
Replace sections CE 6 CE 7
CE 6: Trusts are nominees
A trustee is treated as the nominee of a company ( company A
a: shares or related rights in company A are issued or transferred under the scheme:
b: shares or related rights are issued or transferred to company A’s employees, shareholder-employees, or associates of them, under the scheme. associated person, company, employee, employee share scheme, share, shareholder-employee, trustee
CE 7: Meaning of employee share scheme
Employee share scheme
a: an arrangement with a purpose or effect of issuing or transferring shares in a company ( company A
i: who will be, is, or has been an employee of company A or of another company that is a member of the same group of companies as company A, if the arrangement is connected to the person’s employment or service:
ii: who will be, is, or has been a shareholder-employee in relation to company A or in relation to another company that is a member of the same group of companies as company A, if the arrangement is connected to the person’s employment or service:
iii: who is an associate of a person described in subparagraph (i) or (ii) ( person A
b: does not include an arrangement that—
i: is an exempt ESS:
ii: requires market value consideration to be paid by a person described in paragraph (a) for the transfer of shares in the company on the share scheme taxing date:
iii: requires a person described in paragraph (a) to put shares, acquired by them for market value consideration, at risk, if the arrangement provides no protection against a fall in the value of the shares and none of the consideration for acquiring the shares is provided to the person under an agreement that it is used for acquiring the shares. arrangement, associated person, company, consideration, employee, employment, exempt ESS, group of companies, market value, share, share scheme taxing date, shareholder-employee
CE 7B: Meaning of share scheme taxing date
Meaning
1: Share scheme taxing date
a: the first date when the shares are held by or for the benefit of an employee share scheme beneficiary ( beneficial ownership
i: there is no material risk that beneficial ownership may change or that a right or requirement in relation to the transfer or cancellation of the shares may operate; and
ii: there is no benefit accruing to the employee share scheme beneficiary in relation to a fall in value of the shares; and
iii: there is no material risk that there will be a change in the terms of the shares affecting the value of the shares:
b: the date when the shares or related rights of an employee share scheme beneficiary are cancelled or are transferred to a person who is not associated with a beneficiary described in section CE 7(a)﻿(i) or (ii). Exclusions
2: For the purposes of applying subsection (1), the following requirements and rights are ignored:
a: a right or requirement in relation to transfer by the employee share scheme beneficiary for market value consideration at the time of the transfer:
b: a right or requirement that is not contemplated by the employee share scheme’s provisions:
c: a right or requirement that, at the time it came into existence, had no material risk of operating or no material commercial significance:
d: a right or requirement in relation to the transfer of shares, if the right or requirement is 1 that also applies to shares not under the employee share scheme. Example 1 – Simple vesting period
Acme Limited transfers shares worth $10,000 to a trustee on trust for an employee, Alice, of Acme Limited. Under the terms of the trust, Alice forfeits, for no consideration, any contingent interest or beneficial ownership in the shares if she leaves the employ of Acme Limited within 3 years of the transfer of the shares to the trustee. Alice stays for 3 years, and, under the terms of the trust, the shares are transferred absolutely to her on her 3rd anniversary of employment. It is a material risk, for the 3 years after the transfer to the trustee, that the terms of the trust will operate to forfeit any contingent interest or beneficial ownership in the shares. Consequently, the share scheme taxing date for Alice’s shares is her 3rd anniversary of employment. Example 2 – Vesting subject to misconduct
Acme Limited transfers shares worth $10,000 to a trustee on trust for an employee, Bob, of Acme Limited. Under the terms of the trust, Bob forfeits, for no consideration, any contingent interest or beneficial ownership in the shares if he leaves the employ of Acme Limited because he is dismissed for serious misconduct within 3 years of the transfer of the shares to the trustee. It is not a material risk that the terms of the trust will operate to forfeit any contingent interest or beneficial ownership in the shares. The risk that Bob will be dismissed for serious misconduct within 3 years is not material. Consequently, the share scheme taxing date for Bob’s shares is the date when the shares are transferred to the trustee. associated person, consideration, employee share scheme, employee share scheme beneficiary, market value, share
CE 7C: Meaning of employee share scheme beneficiary
Employee share scheme beneficiary
a: a person ( person A
b: a person who is an associate of person A. associated person, employee share scheme
CE 7D: Meaning of replacement employee share scheme
Replacement employee share scheme old scheme employee share scheme
23: Section CH 11 amended (Te Awa Tupua and Te Pou Tupua)
1: In section CH 11(2) derives income in the income year is treated as deriving income for the income year of an amount
2: After section CH 11(2) amount, income, income year
24: Section CQ 5 amended (When FIF income arises)
1: In section CQ 5(1)﻿(c)﻿(viii) (Exemption for employee share purchase scheme of grey list company) (Exemptions for employee share schemes)
2: In section CQ 5 non-attributing active FIF
25: New section CR 3B inserted (Lloyd’s of London: income from life insurance premiums)
1: After section CR 3
CR 3B: Lloyd’s of London: income from life insurance premiums
What this section applies to
1: This section applies to a premium a portion of which is treated as having a source in New Zealand under section YD 8B
a: the policyholder pays the premium for a life insurance policy to Lloyd’s of London or an agent of Lloyd’s of London; and
b: the life insurance policy is described in subsection (3); and
c: the life insurance policy is offered or was offered or entered into within New Zealand. Amount of income
2: Ten percent of the gross premium derived by Lloyd’s of London is income of Lloyd’s of London. Types of life insurance policies
3: The life insurance policy referred to in subsection (1) is a life insurance policy that—
a: is made available to the general public; and
b: is not a profit participation policy or a savings product policy or both; and
c: does not provide for a benefit that is an annuity. income, life insurance policy, Lloyd’s of London, offered or was offered or entered into, pay, premium, profit participation policy, savings product policy, source in New Zealand
2: Subsection (1) applies in relation to a life insurance premium that is derived on or after 1 April 2017 by Lloyd’s of London.
26: Section CT 5 amended (Petroleum mining operations outside New Zealand)
1: In section CT 5 petroleum mining operations that are petroleum mining operations that are, or decommissioning that is
2: In section CT 5 decommissioning
3: Subsection (1) applies for the 2018–19 and later income years.
27: New section CT 5B inserted (Resuming commercial production)
1: After section CT 5
CT 5B: Resuming commercial production
When this section applies
1: This section applies when a petroleum miner or a farm-in party undertakes commercial production in a permit area when a petroleum miner, or a farm-in party, has received a deduction under section EJ 13 Income
2: An amount described in subsection (3) is treated as income of the petroleum miner who, at any time after the petroleum mining operations have ceased under section EJ 13
a: undertakes commercial production (the resumed commercial production
b: arranges for a farm-in party to undertake the resumed commercial production in the permit area. Amount treated as income
3: The amount referred to in subsection (2) that is treated as income is an amount that is equal to the amount of the deduction allowed under section EJ 13 Allocation of income
4: The amount is allocated to the income year in which the resumed commercial production in the permit area begins. amount, commercial production, deduction, farm-in party, farm-out arrangement, income, income year, permit area, petroleum development expenditure, petroleum miner, petroleum mining asset, petroleum mining operations, petroleum permit
2: Subsection (1) applies for the 2018–19 and later income years.
28: Section CT 6 amended (Meaning of petroleum miner)
1: In section CT 6(1) petroleum mining operations petroleum mining operations or decommissioning
2: In section CT 6(2) petroleum mining operations petroleum mining operations or decommissioning
3: In section CT 6 decommissioning
4: Subsections (1) and (2) apply for the 2018–19 and later income years.
29: Section CT 6B amended (Meaning of petroleum mining operations)
1: Repeal section CT 6B(2)﻿(e)
2: In section CT 6B removal or restoration operations
3: Subsection (1) applies for the 2018–19 and later income years.
30: Section CT 7 amended (Meaning of petroleum mining asset)
1: In section CT 7(3)﻿(d) removal or restoration operations decommissioning
2: In section CT 7
a: insert decommissioning
b: delete removal or restoration operations
3: Subsection (1) applies for the 2018–19 and later income years.
31: Section CV 17 amended (Non-exempt charities: taxation of tax-exempt accumulation)
In section CV 17 charities: taxation charities: treatment
32: New section CV 20 inserted (Employee share schemes)
After section CV 19
CV 20: Employee share schemes
An amount of income that a person has under section DV 27(9) (Employee share schemes) is income of the person. amount, employee share scheme, income
33: Section CW 10 amended (Dividend within New Zealand wholly-owned group)
In section CW 10 amount deduction income year net income tax avoidance arrangement
34: Section CW 17CB amended (Payments for certain work-related meals)
1: After section CW 17CB(7) Meaning of employer’s workplace
7B: In this section, employer’s workplace
2: In section CW 17CB employer’s workplace
35: New sections CW 26B to CW 26G inserted
After section CW 26
CW 26B: Exempt ESS
An amount derived from an exempt ESS is exempt income. amount, exempt ESS, exempt income
CW 26C: Meaning of exempt ESS
Exempt ESS
1: Exempt ESS
a: a scheme that had the Commissioner’s approval under section DC 12
b: an arrangement of which the Commissioner has been notified under section 63B(1) of the Tax Administration Act 1994, if—
i: the arrangement meets the criteria in subsections (2) to (9) of this section; and
ii: the Commissioner has received all forms due under section 63B(2) and (3) Purchase of shares
2: The arrangement must provide that—
a: the shares are available for no more than their market value at the date of purchase or subscription; and
b: the market value of the shares purchased or subscribed for by an employee, or a trustee for an employee, under the arrangement is less than or equal to $5,000 in a year; and
c: the difference between the market value of the shares purchased or subscribed for by an employee or a trustee and the amount that an employee spends on buying shares under the arrangement is less than or equal to $2,000 in a year. Eligibility
3: The arrangement must provide that—
a: a full-time permanent employee to whom an offer under the arrangement is made is eligible to participate in the arrangement, on an equal basis with 90% or more of other full-time permanent employees to whom an offer under the arrangement is not subject to foreign security disclosure rules; and
b: if it applies to part-time employees, those employees to whom an offer under the arrangement is made are eligible to participate in the arrangement, on an equal basis with 90% or more of other part-time employees to whom an offer under the arrangement is not subject to foreign security disclosure rules; and
c: if it applies to seasonal workers, those employees to whom an offer under the arrangement is made are eligible to participate in the arrangement, on an equal basis with 90% or more of other seasonal workers to whom an offer under the arrangement is not subject to foreign security disclosure rules; and
d: if it requires that an employee spend a minimum amount on buying shares, it requires no more than $1,000 to be spent in a year; and
e: if it requires that an employee must have a minimum period of employment or service before the employee is eligible to participate, it requires—
i: no more than 3 years full-time work, for full-time employees; and
ii: no more than an accumulated period that is the equivalent of 3 years full-time work, for other employees. Payments
4: The arrangement must provide that—
a: if it requires that an employee must buy the shares for more than nominal consideration,—
i: a loan for the cost of the shares is available to the employee; or
ii: the employee may pay for or buy the shares in regular instalments of a month or less, and any regular instalments are subject to paragraph (d)﻿(ii); and
b: any loan to an employee to buy shares is free of interest and other charges; and
c: any loan or regular instalments have a maximum term of 60 months and a minimum term of 36 months; and
d: any loan to an employee to buy shares is repayable by regular instalments of a month or less, but—
i: the loan is repayable early in full or in part at the employee’s discretion; and
ii: in the case of an employee who is on unpaid or parental leave for more than a month, the regular instalments are suspended while on leave and the term of the loan is extended as appropriate. Serious hardship
5: The arrangement must provide, in the case of serious hardship that results or may result from an employee’s continued participation in the exempt ESS, that, with the employee’s agreement,—
a: any regular instalments and any other terms related to payment by the employee may be varied; or
b: the employee may withdraw from the arrangement, and any shares are bought from the employee for their market value on the day of withdrawal, subject to the repayment of any outstanding loan. Withdrawal
6: The arrangement must provide that the employee may withdraw from the arrangement on giving 1 month’s notice to the relevant party. Any shares must be bought from the employee for the lesser of their market value on the day of withdrawal and their cost to the employee, subject to the repayment of any outstanding loan. Period of restriction
7: The arrangement must provide that,—
a: if the employee has not acquired the shares for market value, there is a period of restriction during which the shares must not be disposed of and that period of restriction is the shorter of—
i: a period of 3 years starting on the date the employee acquired the shares, or the period of repayment of a loan made to them under the scheme for this purpose, whichever is longer; and
ii: a period starting on the date the employer acquired the shares and ending on the date the employee ends their employment with the company that employs them, or a company in the same group of companies if the employee is transferred; or
b: if the employee has acquired the shares for market value, there is a period of restriction during which the shares must not be disposed of and that period of restriction is no longer than the shorter of—
i: the shortest period in paragraph (a)﻿(i) and (ii); and
ii: any period of restriction provided by the arrangement, if that period finishes on or after the date on which the employee has no further repayment obligations for a loan made to them under the scheme. End of period of restriction: general rule
8: When the period of restriction provided by subsection (7) ends, the arrangement must provide that—
a: the shares are transferred to the employee if the employee is still employed by the relevant company and they have not already been transferred; or
b: if the employee chooses, the shares are purchased for the lesser of—
i: the cost of the shares to the employee:
ii: the market value of the shares on the date the period of restriction ends. End of period of restriction: certain cases
9: Despite subsection (8), when a period of restriction ends because the employee’s employment ends through their death, accident, sickness, redundancy, or retirement at normal retiring age, the arrangement must provide that—
a: the shares are transferred to the former employee if they have not already been transferred, or transferred to the legal representative of the employee’s estate, as appropriate; or
b: if the employee chooses, the shares are purchased for the lesser of—
i: the cost of the shares to the employee:
ii: the market value of the shares on the date the period of restriction ends. amount, arrangement, Commissioner, company, employee, employer, employment, exempt ESS, group of companies, interest, loan, market value, normal retiring age, notice, pay, share, trustee, year
CW 26D: Meaning of employee
For the purposes of section CW 26C, employee
a: means a person that is employed by a company; but
b: does not include a person who,—
i: is a director of the company, unless they are employed by the company:
ii: is a corporation sole, a body corporate, or an unincorporated body:
iii: with any associated person, holds 10% or more of the issued capital of the company. associated person, company, director, employment
CW 26E: Meaning of normal retiring age
For the purposes of section CW 26C, normal retiring age
a: for an employee other than 1 to whom paragraph (b) applies, no less than 60 years of age:
b: for a female employee who is entitled under a contract of employment entered into before 1 April 1978 with the company that employs her to retire before 60 years of age, no less than 55 years of age:
c: for any employee, an age that is earlier than the age referred to in paragraph (a) or (b) and that the Commissioner considers reasonable given the nature of the employment or the general terms of employment in the business or occupation of the employee. business, Commissioner, company, employee, employment, normal retiring age
CW 26F: Meaning of share
For the purposes of section CW 26C, share company, exempt ESS, share
CW 26G: Meaning of trustee
For the purposes of section CW 26C, trustee company, employee, exempt ESS, group of persons, share, trustee
36: Section CW 40C amended (Te Pou Tupua)
In section CW 40C
a: before subsection (1), insert Exempt income
b: before subsection (2), insert Exclusion
c: after subsection (2), insert: amount, exempt income, income
37: Section CW 41 amended (Charities: non-business income)
1: In section CW 41(5)﻿(a) trustee or trustees of a trust trustee
2: In section CW 41(5)﻿(b) trustee or trustee of a trust trustee
3: In section CW 41(5)﻿(c) trustee or trustee of a trust trustee
38: Section CX 5 amended (Relationship with exempt income)
In section CX 5 expenditure on account of an employee life insurance policy premium
39: New section CX 55B inserted (Proceeds from disposal of certain shares and financial arrangements)
1: After section CX 55
CX 55B: Proceeds from disposal of certain shares and financial arrangements
Disposal of shares
1: An amount that a foreign PIE equivalent derives for an income year from the disposal of a share is excluded income of the foreign PIE equivalent for the income year. Disposal of financial arrangements
2: An amount that a foreign PIE equivalent derives for an income year from the disposal of a financial arrangement is excluded income of the foreign PIE equivalent for the income year. Exclusion
3: Subsection (2) does not apply to an amount of interest referred to in schedule 6, table 1B, row 6 (Prescribed rates: PIE investments and retirement scheme contributions). amount, excluded income, financial arrangement, foreign PIE equivalent, income year, interest, share
2: Subsection (1) applies for the 2012–13 and later income years.
40: New cross-heading and section CX 57B inserted
After section CX 57 Foreign investment income
CX 57B: Amounts derived during periods covered by calculation methods
When this section applies
1: This section applies when a person derives an amount other than FIF income from an attributing interest in a FIF in a period for which they have used a calculation method referred to in section EX 59(1) Excluded income
2: The amount derived is excluded income of the person. amount, attributing interest, calculation method, excluded income, FIF, FIF income, FIF loss
41: Section CX 60 amended (Intra-group transactions)
1: Replace section CX 60(1)
1: This section applies when a company that is part of a consolidated group derives an amount referred to in section FM 8(3)
2: In section CX 60(2) The amount To the extent to which the amount is not an amount referred to in section FM 8(3)﻿(d)
3: Subsection (1) applies for the 2019–20 and later income years.
42: Section CZ 1 replaced (Share purchase agreement income before 19 July 1968)
Replace section CZ 1
CZ 1: Grandparented shares under employee share schemes
When this section applies
1: This section applies when, for shares under an employee share scheme,—
a: the shares were granted or acquired under the employee share scheme before the date that is 6 months after the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 receives the Royal assent, and—
i: the shares were granted or acquired for purposes not including the purpose of avoiding the future application of the employee share scheme provisions in that Act (the new ESS provisions
ii: the share scheme taxing date for the shares is before 1 April 2022:
b: the shares were granted or acquired under the employee share scheme before 12 May 2016. Grandparenting
2: The new ESS provisions do not apply for the shares. Instead, the provisions of this Act that would apply ignoring the enactment of the new ESS provisions apply for the shares. employee share scheme, income, share, share scheme taxing date
43: Section CZ 9 amended (Available capital distribution amount: 1965 and 1985–1992)
In section CZ 9(1)﻿(a) those provisions were repealed that provision was repealed
44: Section DB 11 amended (Negative base price adjustment)
1: After section DB 11(1B), insert: Deduction: cessation of LTCs and dissolution of limited partnerships
1C: A person who has a negative base price adjustment under section EW 31(4) for a financial arrangement is allowed a deduction for an amount of the negative base price adjustment to the extent to which—
a: section EW 47B (Cessation of LTCs and dissolution of partnerships) applies; and
b: the amount is equal to or less than the consideration that they are treated as having paid, or that is or will be payable, by them for or under the relevant financial arrangement, under section EW 47B(2)﻿(a).
2: Subsection (1) applies for income years beginning on or after 1 April 2011.
45: Section DB 18A amended (Ring-fenced allocations: disposal of residential land within 2 years)
1: In section DB 18A
a: in the heading, replace 2 years 5 years
b: in subsection (1), replace 2 years 5 years
2: Subsection (1) applies to a person’s disposal of residential land if the date that the person first acquires an estate or interest in the residential land is on or after the date on which the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018
3: Despite subsection (2), subsection (1) does not apply to a person’s disposal of a freehold estate in residential land that the person acquired as the owner of a leasehold estate with a perpetual right of renewal, if the person was granted the leasehold estate before 29 March 2018.
4: Despite subsection (2), subsection (1) does not apply to a person’s disposal of an estate or interest in residential land that the person acquired as the result of the completion of a land development or subdivision, if before 29 March 2018 the person entered into the agreement under which they acquired the estate or interest upon the completion of the land development or subdivision. Section 45(3) inserted 18 March 2019 section 337 Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 Section 45(4) inserted 18 March 2019 section 337 Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019
46: Section DB 18AB amended (Deduction cap: disposal of residential land within 2 years to associated persons)
1: In section DB 18AB
a: in the heading, replace 2 years 5 years
b: in subsection (1)﻿(a), replace 2 years 5 years
2: Subsection (1) applies to a person’s disposal of residential land if the date that the person first acquires an estate or interest in the residential land is on or after the date on which the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018
3: Despite subsection (2), subsection (1) does not apply to a person’s disposal of a freehold estate in residential land that the person acquired as the owner of a leasehold estate with a perpetual right of renewal, if the person was granted the leasehold estate before 29 March 2018.
4: Despite subsection (2), subsection (1) does not apply to a person’s disposal of an estate or interest in residential land that the person acquired as the result of the completion of a land development or subdivision, if before 29 March 2018 the person entered into the agreement under which they acquired the estate or interest upon the completion of the land development or subdivision. Section 46(3) inserted 18 March 2019 section 338 Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 Section 46(4) inserted 18 March 2019 section 338 Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019
47: New section DB 23B inserted (Revenue account property: certain intra-group transactions)
1: After section DB 23
DB 23B: Revenue account property: certain intra-group transactions
When this section applies
1: This section applies when—
a: a company that is part of a consolidated group at a time during an income year derives an amount of income from a transaction or arrangement with another company in the consolidated group at the same time; and
b: the transaction or arrangement relates to an excepted financial arrangement that—
i: is revenue account property; and
ii: ceases to exist, whether through redemption or cancellation, or on amalgamation or liquidation, or otherwise; and
c: the amount is excluded income under section FM 8 (Transactions between group companies: income). No deduction for expenditure incurred
2: Despite section DB 23, the company is denied a deduction for expenditure incurred in relation to the excepted financial arrangement as the cost of revenue account property. No deduction for closing value
3: Despite section DB 49, the company is denied a deduction for the value that the excepted financial arrangement had at the end of the previous income year. Link with subpart DA
4: This section overrides the general permission. The other general limitations still apply. amalgamation, amount, arrangement, cancellation, company, consolidated group, deduction, excepted financial arrangement, excluded income, general permission, income, income year, liquidation, revenue account property
2: Subsection (1) applies for the 2016–17 and later income years.
48: New section DB 54C inserted (Certain expenditure incurred by foreign PIE equivalents)
1: After section DB 54B
DB 54C: Certain expenditure incurred by foreign PIE equivalents
When this section applies
1: This section applies for an income year when a foreign PIE equivalent incurs expenditure or loss in deriving an amount to which section CX 55B No deduction
2: The foreign PIE equivalent is denied a deduction for the amount of the expenditure or loss. Link with subpart DA
3: This section overrides the general permission. amount, deduction, foreign PIE equivalent, general permission, income year
2: Subsection (1) applies for the 2012–13 and later income years.
49: Sections DC 12 to DC 15 repealed
Sections DC 12 to DC 15
50: Section DN 6 amended (When FIF loss arises)
In section DN 6(1)﻿(c)﻿(viii) (Exemption for employee share purchase scheme of grey list company) (Exemptions for employee share schemes)
51: New section DN 9 inserted (Treatment of certain costs incurred in acquiring FIF interests)
After section DN 8
DN 9: Treatment of certain costs incurred in acquiring FIF interests
No deduction
1: A person is denied a deduction for an amount of expenditure that they incur in acquiring a FIF interest from which income under section CX 57B Link with subpart DA
2: This section overrides the general permission. amount, deduction, FIF interest, general permission, income
52: Section DT 5 amended (Petroleum development expenditure)
1: In section DT 5(2)﻿(b) method). method); or
2: After section DT 5(2)﻿(b)
c: section EJ 13
3: Subsections (1) and (2) apply for the 2018–19 and later income years.
53: Section DT 7 amended (Exploratory well expenditure)
1: Replace section DT 7(2)
2: An amount equal to the amount that is treated as income is treated as petroleum development expenditure—
a: incurred by the petroleum miner in the income year in which commercial production from the well starts; and
b: allocated as provided by section DT 5(2).
2: Subsection (1) applies for the 2018–19 and later income years.
54: New section DT 7B inserted (Resuming commercial production: petroleum development expenditure)
1: After section DT 7
DT 7B: Resuming commercial production: petroleum development expenditure
When this section applies
1: This section applies when a petroleum miner has had an amount of petroleum development expenditure treated as income under section CT 5B Amount of income treated as petroleum development expenditure
2: An amount equal to the amount that is treated as income under section CT 5B
a: incurred by the petroleum miner in the income year referred to in section CT 5B
b: allocated as provided by section DT 5(2). amount, deduction, income, income year, petroleum development expenditure, petroleum miner
2: Subsection (1)
55: Section DT 15 amended (Persons associated with petroleum miner)
1: In section DT 15(1)﻿(b)﻿(i) petroleum mining operations petroleum mining operations or decommissioning
2: In section DT 15(1)﻿(b)﻿(iii) petroleum mining operations petroleum mining operations or decommissioning
3: In section DT 15(2) petroleum mining operations petroleum mining operations or decommissioning
4: In section DT 15(3) petroleum mining operations petroleum mining operations or decommissioning
5: In section DT 15 decommissioning
6: Subsections (1) to (4) apply for the 2018–19 and later income years.
56: Section DT 16 amended (Removal or restoration operations)
1: In the section heading of section DT 16 Removal or restoration operations Decommissioning
2: In section DT 16(1) removal or restoration operations decommissioning
3: In section DT 16
a: insert decommissioning
b: delete removal or restoration operations
4: Subsections (1) and (2) apply for the 2018–19 and later income years.
57: Section DT 17 amended (Attribution of expenditure)
1: In section DT 17(3) Relationship between subpart and section GB 20
2: In section DT 17(3) and IS 5 (Petroleum miners’ tax losses),
3: Subsections (1) and (2) apply for the 2018–19 and later income years.
58: Section DT 20 amended (Petroleum mining operations outside New Zealand)
1: In section DT 20 petroleum mining operations that are petroleum mining operations that are or decommissioning that is
2: In section DT 20 decommissioning
3: Subsection (1) applies for the 2018–19 and later income years.
59: Section DU 7 amended (Deduction for certain mining expenditure spread on basis of units of production)
1: After section DU 7(1) What this section does not apply to
1B: This section does not apply to an amount of mining outgoing excess of a loss-attributing qualifying company.
2: Subsection (1) applies for the 2008–09, 2009–10, and 2010–11 income years.
60: Section DV 2 amended (Transfer of expenditure to master fund)
In section DV 2(8B) portfolio tax rate entity multi-rate PIE
61: New cross-heading and section DV 27 inserted
After section DV 26 Employee share schemes
DV 27: Employee share schemes
When this section applies
1: This section applies when a person is party to an employee share scheme. No deduction except as provided by this section
2: Except as provided by this section, the person is denied a deduction for an amount of expenditure or loss for an income year incurred in relation to the employee share scheme. Interest, establishment and management
3: Subsection (2) does not apply to an amount of expenditure or loss to the extent to which the amount relates to—
a: a loan or interest:
b: establishing or managing the employee share scheme. Deduction under section CE 2(3)
4: The person is allowed a deduction for the amount of the deduction they are allowed under section CE 2(3) (Benefits under employee share schemes) for the income year. Employment income
5: The person is allowed a deduction for an amount of expenditure or loss incurred on employment income other than under section CE 1(1)﻿(d) Deduction for benefit
6: If the person is the employing or contracting company for an employee share scheme beneficiary described in section CE 7(a)﻿(i) or (ii) (Meaning of employee share scheme) (the employee Formula
7: For the purposes of subsection (6), the amount of the expenditure or loss is the positive amount calculated using the formula— employee amount − previous deductions. Definition of items in formula
8: In the formula,—
a: employee amount
b: previous deductions
i: in relation to the employee amount; and
ii: before the date that is 6 months after the date of Royal assent for the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018. Income
9: A negative amount calculated using the formula in subsection (7) is an amount of income of the person. Link with subpart DA
10: Subsection (4) supplements the general permission. Subsection (4) overrides the employment limitation. amount, associated person, company, deduction, employee share scheme, employee share scheme beneficiary, employment income, employment limitation, general permission, income, income year, interest, loan, share
62: New section DV 28 inserted (Exempt employee share schemes)
1: Before the heading to subpart DW
DV 28: Exempt employee share schemes
When this section applies
1: This section applies when a person is party to an exempt ESS. No deduction
2: The person is denied a deduction for expenditure or loss in relation to the exempt ESS, except to the extent to which the expenditure or loss relates to establishing or managing the exempt ESS. exempt ESS, deduction
2: Subsection (1) applies—
a: on and after the date on which the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018
b: on and after 6 April 2017, if shares under the exempt ESS were acquired after that date in other than the ordinary course of the exempt ESS.
63: New section DW 3B inserted (Lloyd’s of London: deductions for life insurance business)
1: After section DW 3
DW 3B: Lloyd’s of London: deductions for life insurance business
No deductions
1: Lloyd’s of London is denied a deduction for expenditure incurred in deriving income under section CR 3B Link with subpart DA
2: This section overrides the general permission. deduction, general permission, income, Lloyd’s of London, premium
2: Subsection (1) applies in relation to a life insurance premium that is derived on or after 1 April 2017 by Lloyd’s of London.
64: Section EA 2 amended (Other revenue account property)
1: Replace section EA 2(1)﻿(e)
e: property under a specified lease or a lease to which section EJ 10 (Personal property lease payments) applies:
2: In section EA 2(1)﻿(f) sections EJ 12 to EJ 20 sections DT 1, DT 5, and EJ 12 to EJ 20
65: New section ED 2B inserted (Transfers to shareholders by ASX-listed Australian company of shares in subsidiary)
1: After section ED 2
ED 2B: Transfers to shareholders by ASX-listed Australian company of shares in subsidiary
When this section applies
1: This section applies when—
a: a company (the splitting company
b: the splitting company transfers the shares in a company (the subsidiary
c: for each shareholder (the participating shareholder share transfer
d: the share transfer is not a payment of assessable income or exempt income under the Income Tax Assessment Act 1936 (Aust).
2: For the purpose of subsection (1)﻿(c), a difference between a shareholder’s proportion of the total shares in the subsidiary and the shareholder’s proportion of the total shares in the splitting company held by participating shareholders may be ignored if the difference arises from the transfer or non-transfer of ownership interests under the share transfer, where—
a: the ownership interests have a market value that is a negligible proportion of the total market value of ownership interests in the subsidiary; and
b: each transfer or non-transfer is intended to facilitate the share transfer or is the direct result of impossibility or impracticability for a shareholder caused by the requirements of laws relating to securities. Cost of shares in splitting company after transfer
3: The cost for a shareholder of the shares in the splitting company that are held by the shareholder after the share transfer is the amount calculated using the formula— cost before transfer × value after transfer ÷ (value acquired shares + value after transfer). Cost of shares in new company
4: The cost for a shareholder of the shares acquired in the share transfer is the amount calculated using the formula— cost before transfer × value acquired shares ÷ (value acquired shares + value after transfer). Definition of items in formulas
5: In the formulas in subsections (3) and (4),—
a: cost before transfer
b: value after transfer
c: value acquired shares Available subscribed capital amounts
6: Immediately after the share transfer, the available subscribed capital,—
a: for each share held in the subsidiary, is—
i: the amount given by section CD 43 (Available subscribed capital (ASC) amount) for the share; or
ii: zero, if it is impractical to recognise an amount of available subscribed capital for the shares held in the subsidiary:
b: for the shares held in the splitting company, equals the amount of the available subscribed capital for the shares in the splitting company held immediately before the share transfer, reduced by the total amount given by paragraph (a) for the shares held in the subsidiary immediately after the share transfer. Not dividend
7: The transfer of the shares in the subsidiary to the shareholders in the splitting company is not a dividend. Meaning of ASX-listed Australian company
8: ASX-listed Australian company
a: is resident in Australia; and
b: is treated as resident in no tax jurisdiction other than Australia under each agreement that—
i: is between Australia and another tax jurisdiction; and
ii: would be a double tax agreement if negotiated between New Zealand and the other tax jurisdiction; and
c: has shares included in an index that is an approved index under the ASX Operating Rules; and
d: is not an entity described in schedule 25, part B (Foreign investment funds); and
e: is required under the Income Tax Assessment Act 1997 (Aust) and Income Tax Assessment Act 1936 (Aust) to maintain a franking account. amount, ASX-listed Australian company, available subscribed capital, company, dividend, double tax agreement, market value, resident in Australia, share, shareholder
2: Replace section ED 2B(8)﻿(c)
c: is included on the official list of ASX Limited, a market licensee under Chapter 7 of the Corporations Act 2001 (Aust); and
3: Subsection (1) applies for the 2016–17 and later income years.
4: Subsection (2) applies for the 2017–18 and later income years.
66: Section EE 7 amended (What is not depreciable property?)
In section EE 7(j) , except for an asset to which section DU 6(4) (Depreciation) applies
67: Section EE 34 amended (Annual rate for patent granted in 2005–06 or later income year)
In section EE 34(7) do not to the patent do not apply to the patent
68: Section EE 44 amended (Application of sections EE 48 to EE 51)
In section EE 44(2) EE 52 EE 51
69: Section EE 60 amended (Total deductions in section EE 56)
1: In section EE 60(2)﻿(e) section EZ 23BA(3) section EZ 23BA(4)
2: Subsection (1) applies for the 2017–18 and later income years.
70: Section EJ 12 amended (Petroleum development expenditure: default allocation rule)
1: In section EJ 12(3) DT 16, and IS 5 and DT 16
2: Subsection (1) applies for the 2018–19 and later income years.
71: Section EJ 12B amended (Petroleum development expenditure: reserve depletion method)
1: In section EJ 12B(9) DT 16, and IS 5 and DT 16
2: Subsection (1) applies for the 2018–19 and later income years.
72: Section EJ 13 replaced (Relinquishing petroleum mining permit)
1: Replace section EJ 13
EJ 13: Permanently ceasing petroleum mining operations
When this section applies
1: This section applies when a petroleum miner and each farm-in party to a farm-out arrangement, if any, to which the petroleum miner is a party, permanently ceases petroleum mining operations—
a: in a permit area for which the petroleum miner holds a petroleum permit; and
b: for which petroleum development expenditure has been incurred. Amount of deduction for petroleum miner
2: The amount of the deduction that the petroleum miner is allowed is the difference between—
a: the amount of the deduction allowed for the petroleum miner under section DT 5 (Petroleum development expenditure) and attributable to—
i: the permit; or
ii: an asset of the kind described in section CT 7(1)﻿(b) or (c) (Meaning of petroleum mining asset) held solely in connection with the permit; and
b: any part of the deduction for the petroleum miner allocated to, or treated as allocated to, earlier income years under section EJ 12(2) or EJ 12B(3). Amount of deduction for farm-in party
3: The amount of the deduction that the farm-in party is allowed is the difference between—
a: the amount of the deduction allowed for the farm-in party under section DT 14 (Farm-out arrangements) for petroleum development expenditure, and attributable to—
i: the permit; or
ii: an asset of the kind described in section CT 7(1)﻿(b) or (c) held solely in connection with the permit; and
b: any part of the deduction for the farm-in party allocated to, or treated as allocated to, earlier income years under section EJ 12(2) or EJ 12B(3). Timing of deduction
4: For the purposes of section DT 5(2)﻿(c) amount, deduction, farm-in party, farm-out arrangement, income year, permit area, petroleum development expenditure, petroleum miner, petroleum mining operations, petroleum permit
2: Subsection (1) applies for the 2018–19 and later income years.
73: Section EJ 14 repealed (Spreading deduction backwards)
1: Repeal section EJ 14
2: Subsection (1) applies for the 2018–19 and later income years.
74: Section EJ 18 amended (Petroleum mining operations outside New Zealand)
1: In section EJ 18 Sections EJ 12 to EJ 17 and EJ 20 apply with any necessary modifications to a petroleum miner undertaking petroleum mining operations that are, or decommissioning that is,—
2: In section EJ 18(b) EJ 17, EJ 19, EJ 17
3: In section EJ 18 decommissioning
4: Subsections (1) and (2) apply for the 2018–19 and later income years.
75: Section EJ 20 amended (Meaning of petroleum mining development)
1: In section EJ 20(2)﻿(d) removal or restoration operations decommissioning
2: In section EJ 20
a: insert decommissioning
b: delete removal or restoration operations
3: Subsection (1) applies for the 2018–19 and later income years.
76: Section EJ 22 amended (Deductions for market development: product of research, development)
1: In section EJ 22(1) under section DB 34 (Research or development)
2: Subsection (1) applies for the 2008–09 and later income years.
77: Section EW 13 amended (When use of spreading method not required)
In section EW 13(2) Accident Insurance Act 1988, any Accident Insurance Act 1998, any
78: Section EW 15H amended (Mandatory use of some determinations)
1: In section EW 15H(1)﻿(e) paragraphs (a) to (d) paragraphs (a) to (c)
2: In section EW 15H(2) subsection (1)﻿(a), (c), and (d) subsection (1)﻿(a) and (c)
3: Subsections (1) and (2) apply for a financial arrangement entered into by a person—
a: in the 2014–15 income year and later income years, unless paragraph (b) applies:
b: in an income year (the first income year
79: Section EW 29 amended (When calculation of base price adjustment required)
1: After section EW 29(13) Cessation of LTCs and dissolution of partnerships
14: A person that is party to a financial arrangement in their capacity as owner or partner of a look-through company or a partnership must calculate a base price adjustment as at the date of disposal of the financial arrangement under section HB 4(3) or (6) or HG 4 (which relate to cessation of LTCs and dissolution of partnerships) if they are also a party in a capacity other than as owner or partner ( private capacity
2: In section EW 29 look-through company partner partnership
3: Subsection (1) applies for income years beginning on or after 1 April 2011.
80: Section EW 31 amended (Base price adjustment formula)
1: Replace section EW 31(7)﻿(b)
b: non-integral fees, if the relevant method is—
i: the IFRS financial reporting method in section EW 15D:
ii: the modified fair value method in section EW 15G.
2: In section EW 31 fair value method
81: Section EW 39 amended (Consideration affected by unfavourable factors)
1: Repeal section EW 39(4)
2: In section EW 39 self-remission
3: Subsection (1) applies for income years beginning on or after 1 April 2011.
82: New heading and section EW 47B inserted
1: After section EW 47 Consideration for cessation of LTCs and dissolution of partnerships
EW 47B: Cessation of LTCs and dissolution of partnerships
When this section applies
1: This section applies when—
a: a person is required to calculate a base price adjustment under section EW 29(14)
b: the person has an accrued entitlement. Consideration limited to owner’s interests
2: The person is treated as—
a: having paid all the consideration paid, or that is or will be payable, by them for or under the relevant financial arrangement, multiplied by the proportion of their owner’s interests or partner’s interests in the financial arrangement in their non-private capacity; and
b: having been paid the market value, on the date of disposal, of the accrued entitlement, multiplied by the proportion of their owner’s interests or partner’s interests in the financial arrangement in their non-private capacity. dispose, financial arrangement, owner’s interest, partner, partner’s interests
2: Subsection (1) applies for income years beginning on or after 1 April 2011.
83: Section EX 21 amended (Attributable CFC amount and net attributable CFC income or loss: calculation rules)
1: In section EX 21(14)﻿(a) DT 17 to DT 19, and IS 5 and DT 17 to DT 19
2: In section EX 21(29) DT 17 to DT 19, and IS 5 and DT 17 to DT 19
3: Subsections (1) and (2) apply for the 2018–19 and later income years.
84: Section EX 21B amended (Non-attributing active CFCs)
1: In section EX 21B(2)﻿(b) EX 21E section EX 21E
2: After section EX 21B(4) Part-period calculations
5: Section EX 21F
3: In section EX 21B income interest
85: New section EX 21F inserted (Part-period calculations)
After section EX 21E
EX 21F: Part-period calculations
When this section applies
1: This section applies for the purposes of sections EX 21B part-period Requirements
2: The interest holder may determine that a CFC is a non-attributing active CFC if—
a: the CFC meets the requirements of section EX 21C for the use of applicable accounting standard in the application of section EX 21E; and
b: the person chooses to use the applicable accounting standard in EX 21E; and
c: the CFC meets the requirements of section EX 21E, having regard to the accounts for the part-period; and
d: the person, or a company that is part of the person’s group of companies, holds an income interest in the CFC for the part-period. Determination for interest holders
3: A determination under subsection (2) applies for the interest holder and no other person. Alternative default method
4: If the requirements of subsection (2) are not met, the interest holder must use the default test set out in section EX 21D, applying the test to the full accounting period. accounting period, CFC, company, group of companies, income interest, non-attributing active CFC
86: Section EX 22 amended (Non-attributing Australian CFCs)
1: Replace section EX 22(1)﻿(c)
c: the CFC—
i: is not a unit trust; or
ii: is a unit trust that is subject under Australian law to income tax on its income in the same way as a company; or
iii: is a unit trust whose units are owned by an entity resident in Australia as described in paragraph (a)﻿(iii), and either the unit holder meets the requirements of paragraph (a)﻿(ii) or the unit trust is treated as part of the head company of a consolidated group subject under Australian law to tax on its income.
2: Subsection (1) applies for income years beginning on or after 1 July 2014.
87: Section EX 38 amended (Exemption for employee share purchase scheme of grey list company)
1: In the heading to section EX 38 Exemption for employee share purchase scheme of grey list company Exemptions for employee share schemes
2: In section EX 38 Grey list companies
3: In section EX 38(f) share purchase agreement employee share scheme
4: In section EX 38(g) share purchase agreement employee share scheme
5: In section EX 38 Share scheme taxing date
2: A person’s rights in a FIF in an income year are not an attributing interest to the extent to which—
a: the rights are a direct income interest; and
b: section EX 30(1)﻿(c) does not apply; and
c: the person acquires the shares or related interests under an employee share scheme; and
d: at the beginning of the year, the share scheme taxing date for the shares or related interests has not passed.
6: In section EX 38
a: insert employee share scheme share scheme taxing date
b: delete share purchase agreement
88: Section EX 46 amended (Limits on choice of calculation methods)
1: In section EX 46(10)﻿(a) fixed-rate share fixed-rate share that meets the requirements of the definition of fixed-rate share
2: In section EX 46, in the list of defined terms, insert fixed-rate share
89: Section EX 59 amended (Codes: comparative value method, deemed rate of return method, fair dividend rate method, and cost method)
1: Replace section EX 59(2)
2: An amount, other than FIF income, that is derived in the period from the interest is excluded income under section CX 57B
2: In section EX 59
a: insert excluded income
b: delete dividend
90: Section EX 73 amended (Election that CFC not non-attributing active CFC or FIF not non-attributing active FIF)
In section EX 73 non-attributing active FIF
91: Section EY 10 amended (Meaning of life insurer)
1: After section EY 10(2) Exclusion: Lloyd’s of London
2B: Except for the reference to life insurer in section EY 8 where Lloyd’s of London is treated as a life insurer, Lloyd’s of London is treated as not being a life insurer in relation to its business of providing life insurance, the premium from which is income of Lloyd’s of London under section CR 3B
2: In section EY 10 Lloyd’s of London life insurance policy premium
3: Subsection (1) applies in relation to a life insurance premium that is derived on or after 1 April 2017 by Lloyd’s of London.
92: Section EZ 23BA amended (Aircraft acquired before 2017–18 income year: adjusted tax value, base value, reduced; total deductions increased)
1: Replace section EZ 23BA(4)
4: For the purposes of section EE 60, an amount equal to the difference between the reduction required by subsection (2) and the reduction required by subsection (3) is included as a decrease in the item total deductions for the aircraft engine or aircraft.
2: Subsection (1) applies for the 2017–18 and later income years.
93: Section FB 3A amended (Residential land)
1: In section FB 3A(1) 2 years 5 years
2: Subsection (1) applies to a person’s disposal of residential land if the date that the person first acquires an estate or interest in the residential land is on or after the date on which the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 receives the Royal assent.
3: Despite subsection (2), subsection (1) does not apply to a person’s disposal of a freehold estate in residential land that the person acquired as the owner of a leasehold estate with a perpetual right of renewal, if the person was granted the leasehold estate before 29 March 2018.
4: Despite subsection (2), subsection (1) does not apply to a person’s disposal of an estate or interest in residential land that the person acquired as the result of the completion of a land development or subdivision, if before 29 March 2018 the person entered into the agreement under which they acquired the estate or interest upon the completion of the land development or subdivision. Section 93(3) inserted 18 March 2019 section 339 Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 Section 93(4) inserted 18 March 2019 section 339 Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019
94: Section FC 2 amended (Transfer at market value)
In section FC 2(3) Sections ED 2B (Transfers to shareholders by ASX-listed Australian company of shares in subsidiary) and
95: Section FC 9 amended (Residential land transferred to executor, administrator, or beneficiary on death of person)
1: In section FC 9(2) 2 years 5 years
2: Subsection (1) applies to a person’s disposal of residential land if the date that the person first acquires an estate or interest in the residential land is on or after the date on which the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 receives the Royal assent.
3: Despite subsection (2), subsection (1) does not apply to a person’s disposal of a freehold estate in residential land that the person acquired as the owner of a leasehold estate with a perpetual right of renewal, if the person was granted the leasehold estate before 29 March 2018.
4: Despite subsection (2), subsection (1) does not apply to a person’s disposal of an estate or interest in residential land that the person acquired as the result of the completion of a land development or subdivision, if before 29 March 2018 the person entered into the agreement under which they acquired the estate or interest upon the completion of the land development or subdivision. Section 95(3) inserted 18 March 2019 section 340 Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 Section 95(4) inserted 18 March 2019 section 340 Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019
96: Section FC 10 amended (Transfers from person to Official Assignee under Insolvency Act 2006)
After section FC 10(6) adjusted tax value, amount, deduction, depreciable property, revenue account property
97: Section FE 2 amended (When this subpart applies)
In section FE 2(1B)﻿(a) sections FE 2(1)﻿(cc) section FE 2(1)﻿(cc)
98: Section FE 9 amended (Elections)
In section FE 9 excess debt entity
99: Section FG 2 amended (Notional loans)
In section FG 2 approved issuer levy approved issuer
100: Section FM 8 amended (Transactions between group companies: income)
1: In section FM 8(3)﻿(c) as part of the consolidated group. as part of the consolidated group; or
d: the amount of a dividend derived by a local authority from an entity referred to in section CW 10(3) (Dividend within New Zealand wholly-owned group).
2: Subsection (1) applies for the 2019–20 and later income years. However, this section and sections 41 218(4)
a: to a person who has a binding ruling that is made before 6 April 2017; and
b: relating to the consolidation rules and their application to a local authority; and
c: for the period from the date of the binding ruling to the end of the income year in which the binding ruling expires.
101: Section FM 30 amended (Application of certain provisions to consolidated groups)
In section FM 30 nominated company
102: Section FM 36 amended (Joining existing consolidated group)
In section FM 36(2) section FM 31 and entitled to join the consolidated group, it may choose section FM 31, it may choose
103: Section FM 37 amended (Leaving consolidated group)
In section FM 37(c) it is no longer entitled to be in the same consolidated group it is not eligible to continue as part of the same consolidated group
104: Section FM 38 amended (Notice requirements on forming or joining consolidated group)
In section FM 38(2) entitled eligible
105: Section FM 40 amended (Losing eligibility or entitlement to be part of consolidated group)
1: In section FM 40 or entitlement
2: In section FM 40(1) the nominated company, when it is no longer entitled to be in the same consolidated group the nominated company, when it is not eligible to continue as part of the same consolidated group
3: In section FM 40(2)﻿(b) entitled to be in the same consolidated group eligible to continue as part of the same consolidated group
4: In section FM 40(3), replace eligible or entitled eligible
5: In section FM 40(4), replace eligibility or entitlement eligibility
106: Section FN 4 amended (Eligibility rules)
In section FN 4(2)﻿(a) are part of are part of or would be part of
107: Section FO 10 amended (When property passes on resident’s restricted amalgamation)
1: In section FO 10(6) 2-year 5-year
2: Subsection (1) applies to a person’s disposal of residential land if the date that the person first acquires an estate or interest in the residential land is on or after the date on which the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 receives the Royal assent.
3: Despite subsection (2), subsection (1) does not apply to a person’s disposal of a freehold estate in residential land that the person acquired as the owner of a leasehold estate with a perpetual right of renewal, if the person was granted the leasehold estate before 29 March 2018.
4: Despite subsection (2), subsection (1) does not apply to a person’s disposal of an estate or interest in residential land that the person acquired as the result of the completion of a land development or subdivision, if before 29 March 2018 the person entered into the agreement under which they acquired the estate or interest upon the completion of the land development or subdivision. Section 107(3) inserted 18 March 2019 section 341 Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 Section 107(4) inserted 18 March 2019 section 341 Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019
108: Section FO 17 amended (Land)
1: In section FO 17
a: in subsection (2)﻿(b), replace 2-year 5-year
b: in the heading to subsection (3), replace 2-year 5-year
c: in subsection (3), replace 2-year 5-year
2: Subsection (1) applies to a person’s disposal of residential land if the date that the person first acquires an estate or interest in the residential land is on or after the date on which the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 receives the Royal assent.
3: Despite subsection (2), subsection (1) does not apply to a person’s disposal of a freehold estate in residential land that the person acquired as the owner of a leasehold estate with a perpetual right of renewal, if the person was granted the leasehold estate before 29 March 2018.
4: Despite subsection (2), subsection (1) does not apply to a person’s disposal of an estate or interest in residential land that the person acquired as the result of the completion of a land development or subdivision, if before 29 March 2018 the person entered into the agreement under which they acquired the estate or interest upon the completion of the land development or subdivision. Section 108(3) inserted 18 March 2019 section 342 Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 Section 108(4) inserted 18 March 2019 section 342 Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019
109: New cross-heading and section GB 49B inserted
After section GB 49 Arrangements involving employee share schemes
GB 49B: Employee share schemes
When this section applies
1: This section applies when a person enters into an arrangement and the purpose or effect of the arrangement is to defeat the intent and application of the definition of employee share scheme share scheme taxing date Reconstruction
2: The Commissioner may classify the arrangement or set a share scheme taxing date as the Commissioner considers appropriate to counteract a tax advantage obtained by the person from or under the agreement. arrangement, Commissioner, employee share scheme, share, share scheme taxing date
110: Section GB 52 amended (Arrangements involving residential land: companies’ shares)
1: In section GB 52(1)﻿(a) in sections CB 6A(1)﻿(a) or (b) (Disposal within 2 years: bright-line test for residential land) is within 2 years in section CB 6A(1)﻿(a) or (b) (Disposal within 5 years: bright-line test for residential land) is within 5 years
2: Subsection (1) applies to a person’s disposal of residential land if the date that the person first acquires an estate or interest in the residential land is on or after the date on which the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 receives the Royal assent.
3: Despite subsection (2), subsection (1) does not apply to a person’s disposal of a freehold estate in residential land that the person acquired as the owner of a leasehold estate with a perpetual right of renewal, if the person was granted the leasehold estate before 29 March 2018.
4: Despite subsection (2), subsection (1) does not apply to a person’s disposal of an estate or interest in residential land that the person acquired as the result of the completion of a land development or subdivision, if before 29 March 2018 the person entered into the agreement under which they acquired the estate or interest upon the completion of the land development or subdivision. Section 110(3) inserted 18 March 2019 section 343 Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 Section 110(4) inserted 18 March 2019 section 343 Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019
111: Section GB 53 amended (Arrangements involving residential land: trusts)
1: In section GB 53 (1)﻿(c) 2 years 5 years
2: Subsection (1) applies to a person’s disposal of residential land if the date that the person first acquires an estate or interest in the residential land is on or after the date on which the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 receives the Royal assent.
3: Despite subsection (2), subsection (1) does not apply to a person’s disposal of a freehold estate in residential land that the person acquired as the owner of a leasehold estate with a perpetual right of renewal, if the person was granted the leasehold estate before 29 March 2018.
4: Despite subsection (2), subsection (1) does not apply to a person’s disposal of an estate or interest in residential land that the person acquired as the result of the completion of a land development or subdivision, if before 29 March 2018 the person entered into the agreement under which they acquired the estate or interest upon the completion of the land development or subdivision. Section 111(3) inserted 18 March 2019 section 344 Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 Section 111(4) inserted 18 March 2019 section 344 Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019
112: Section HA 19 amended (Credit accounts and dividend statements)
In section HA 19(3)﻿(a) section 67(1) section 25G
113: Section HC 2 amended (Obligations of joint trustees for calculating income and providing returns)
In section HC 2(2)﻿(b) section 42(1)﻿(a) section 33(1)
114: Section HC 6 amended (Beneficiary income)
1: After section HC 6(1B)
1C: Beneficiary income includes an RWT substitution payment made to a beneficiary under section RE 2(7) (Resident passive income) to the extent to which the payment meets the requirements of subsection (1) or is paid on a date referred to in subsection (1B).
2: In section HC 6(2)﻿(b) apply. apply; or
c: an amount by which a tax credit of a beneficiary for resident withholding tax is reduced under section LB 3(6)
d: an amount of a tax credit of a beneficiary allocated under section LB 3(5)
3: Subsections (1) and (2) apply for the 2008–09 and later income years but do not apply to a person and an income year in relation to a tax position taken by the person—
a: in a return of income filed before 1 April 2019 for the 2008–09 or later income years; and
b: relating to the treatment of tax credits for resident passive income in a way that is not consistent with the amendments made in this Act for the treatment of those tax credits; and
c: relying on section HC 6
115: Section HC 27 amended (Who is a settlor?)
1: Repeal section HC 27(3B)
2: In section HC 27 share purchase agreement
116: Section HC 33 amended (Choosing to satisfy income tax liability of trustee)
1: In section HC 33(1) liability of the trustee of the trust as described in subsection (2) liability of the trustee of the trust
2: Subsection (1) applies for the 2008–09 and later income years.
117: Section HD 3 amended (Agents’ duties and liabilities)
1: After section HD 3(2) Assessments, returns, and payments of tax by agents for Lloyd’s of London
2B: An agent described in section HD 17B(2)
a: is not subject to subsection (2) for income derived under section CR 3B
b: must meet the obligations described in section HR 13(3)﻿(a) and (b) section HD 17B(3)
2: Subsection (1) applies in relation to a life insurance premium that is derived on or after 1 April 2017 by Lloyd’s of London.
118: New section HD 13B inserted (AIM companies)
After section HD 13
HD 13B: AIM companies
When this section applies
1: This section applies when a company—
a: uses the AIM provisional tax method; and
b: makes a provision that relates to expenditure on employment income for a shareholder-employee of the company; and
c: makes a payment of tax for the shareholder-employee. Agency
2: The company is treated as agent for the shareholder-employee for the purposes of the definition of residual income tax Relationship with subject matter
3: Section HD 2 does not apply to the agency, unless the agency does not arise only under this section. company, employment income, pay, shareholder-employee, tax
119: Section HD 15 amended (Asset stripping of companies)
1: After section HD 15(8) Meaning of company in voting interest or market value interest tests
8B: When applying sections YC 2 to YC 6 (which relate to voting and market value interests) for the purposes of the definitions of controlling shareholder interested shareholder company
2: In section HD 15(9) company
3: In section HD 15(9) controlling shareholder (Disregarding certain securities)
4: In section HD 15 trustee
120: New section HD 17B inserted (Lloyd’s of London: agents for life insurance)
1: After section HD 17
HD 17B: Lloyd’s of London: agents for life insurance
When this section applies
1: This section applies when Lloyd’s of London derives income from the payment of a premium under section CR 3B Agents paying premium or providing funds
2: The person treated as agent for Lloyd’s of London is—
a: a person, including a broker or agent, who pays the premium to Lloyd’s of London; or
b: a person described in subsection (4)﻿(b). Liability of agents
3: The person liable as agent is only liable to calculate the taxable income, provide the return and pay the income tax in relation to the premium the person pays to Lloyd’s of London and not in relation to all the premium income of Lloyd’s of London for the tax year. Banks or non-bank deposit takers
4: If a premium is paid by a registered bank, or a licensed non-bank deposit taker, on behalf of a person to Lloyd’s of London or to some other person, acting on behalf of Lloyd’s of London, not carrying on a business in New Zealand through a fixed establishment in New Zealand,—
a: the bank or licensed non-bank deposit taker is not an agent of Lloyd’s of London; and
b: the person who provides the bank or licensed non-bank deposit taker with the funds from which the premium is paid is an agent of Lloyd’s of London. agent, business, deduction, fixed establishment, general permission, income, income tax, licensed non-bank deposit taker, life insurance policy, Lloyd’s of London, New Zealand, pay, premium, registered bank, return of income, tax year, taxable income
2: Subsection (1) applies in relation to a life insurance premium that is derived on or after 1 April 2017 by Lloyd’s of London.
121: Section HF 1 amended (Maori authorities and the Maori authority rules)
In section HF 1(2)﻿(g) sections 31, 57, 68B, sections 25I, 31, 57,
122: Section HG 4 amended (Disposal upon final dissolution)
1: After section HG 4(6) Market value of debt owed
7: In this section, in relation to a limited partnership, the market value of a partner’s interest in a financial arrangement as debtor must take into account the amount of any adjustment for credit impairment.
2: In section HG 4 financial arrangement
3: Subsection (1) applies for income years beginning on or after 1 April 2011.
123: Section HM 3 amended (Foreign PIE equivalents)
1: In section HM 3(1)﻿(b)﻿(ii) scheme: scheme.
2: Repeal section HM 3(1)﻿(b)﻿(iii)
3: In section HM 3 trustee unit trust
124: Section HM 4 amended (Who is an investor?)
1: In section HM 4 Meaning of investor
2: In section HM 4 Consequences of not providing tax file number
2: An investor in a multi-rate PIE who is required under section 28B
3: In section HM 4 exit level multi-rate PIE tax file number
4: Subsections (1) and (2) apply for the 2018–19 and later income years.
125: Section HM 9 amended (Collective schemes)
Repeal section HM 9(c)
126: Section HM 13 amended (Maximum shareholdings in investments)
1: Replace section HM 13(2) Voting and market interests: companies other than unit trusts
2: The investment must not carry voting interests or market value interests of more than 20%. This subsection does not apply to a unit trust. Subsection (5) overrides this subsection.
2: In section HM 13 market value interest
127: Section HM 30 amended (When foreign PIE equivalent no longer meets requirements)
In section HM 30(2) section HM 3(b) to (e) section HM 3(1)﻿(b) to (e)
128: Section HM 42 amended (Exit calculation option)
1: Replace section HM 42(1)
1: This section applies when a multi-rate PIE chooses for a tax year to calculate its income tax liability for exiting investors and remaining investors. The PIE must notify the Commissioner under section 31B of the Tax Administration Act 1994 of the calculation option and of the applicable attribution period.
2: In section HM 42 attribution period
129: Section HM 43 amended (Quarterly calculation option)
1: Replace section HM 43(1)
1: A multi-rate PIE that does not choose to calculate and pay its income tax liability under the exit calculation or provisional tax calculation options, must calculate its tax liability for each quarter of the tax year using the formula set out in section HM 47. The PIE must notify the Commissioner under section 31B of the Tax Administration Act 1994 of the calculation option and of the applicable attribution period.
2: In section HM 43 attribution period
130: Section HM 44 amended (Provisional tax calculation option)
1: Replace section HM 44(1)
1: This section applies when a multi-rate PIE chooses to calculate its income tax liability on an income year basis and pay provisional tax by notifying the Commissioner before the start of the income year or when choosing to become a PIE. The PIE must notify the Commissioner under section 31B of the Tax Administration Act 1994 of the calculation option and of the applicable attribution period.
2: In section HM 44 attribution period Commissioner
131: Section HM 48 amended (Adjustments to investor interests or to distributions)
1: After section HM 48(4) Adjustments for errors
5: When a multi-rate PIE, through an error, does not calculate and pay its income tax liability in relation to its investors for a tax year correctly, the PIE may make an adjustment under subsection (1)﻿(c) within 1 month of the discovery of the error. Maximum adjustments
6: For the purposes of subsection (5),—
a: the adjustment may be made in the tax year in which the error is made ( year 1
b: the adjustment may be made in the tax year following that in which the error is made ( year 2
i: $2000; or
ii: 5% of the income tax liability of the PIE for year 1. When adjustments treated as made
7: An adjustment that meets the requirements of subsections (5) and (6) is treated as made on the due date for the amount referred to in section HM 41(3) and calculated under sections HM 42 to HM 44B. Notifying Commissioner of adjustments
8: Following the discovery of an error to which subsection (6)﻿(b) applies, the PIE must notify the Commissioner of the error at the time of making the adjustment, including in their notification—
a: the information in schedule 6, table 1, rows 1 to 8, 10, 12, 13, 16, 21, and 22
b: the adjustment to the item referred to in schedule 6, table 1, row 9
2: In section HM 48 income tax liability
132: Section HM 62 amended (Exit levels for investors)
1: In section HM 62 When tax liability and investor interests equal
2: In section HM 62 Consequences of not providing tax file number
2: An investor in a multi-rate PIE is treated as reaching the exit level when they fail to provide a tax file number to the PIE by the date set out in section 28B Treatment of investors when tax file numbers not provided
3: The account of an investor to whom subsection (2) applies is treated as closed on the date referred to in that subsection. The PIE must pay the amount that is the balance of the investor’s investment to the investor, and calculate and pay tax for the exiting investor for the exit period using the exit calculation option under section HM 42.
3: In section HM 62 amount tax file number
133: Section HM 67 amended (Formation losses carried forward to first quarter)
1: In section HM 67(1) when an entity becomes a multi-rate PIE that when an entity either becomes a multi-rate PIE or is a multi-rate PIE that has calculated and paid tax under the provisional tax calculation option under section HM 44 that
2: In section HM 67(2) the entity becomes a PIE the entity either becomes a PIE or changes its calculation option from the provisional tax calculation option to the exit calculation or quarterly calculation option
3: In section HM 67 provisional tax
134: Section HM 68 amended (When formation losses carried forward are less than 5% of formation investment value)
1: In section HM 68 at the time it becomes a PIE at the time it either becomes a PIE or changes its calculation option from the provisional tax calculation option to the exit calculation or quarterly calculation option
2: In section HM 68 provisional tax
135: Section HM 69 amended (When formation losses carried forward are 5% or more of formation investment value: 3-year spread)
1: In section HM 69(1) from the date the entity becomes a PIE from the date the entity either becomes a PIE or changes its calculation option from the provisional tax calculation option to the exit calculation or quarterly calculation option
2: In section HM 69 provisional tax
136: Section HR 10 amended (What happens when vehicle stops being financial institution special purpose vehicle?)
In section HR 10(1) an financial institution special purpose vehicle a financial institution special purpose vehicle
137: Section HR 12 replaced (Non-exempt charities: taxation of tax-exempt accumulations)
Replace section HR 12
HR 12: Non-exempt charities: treatment of tax-exempt accumulations
Who this section applies to
1: This section applies to—
a: a person ( person A
i: is registered on the register of charitable entities under the Charities Act 2005 for a period; and
ii: derives exempt income under section CW 41 or CW 42 (which relate to charities) in the same period; and
iii: is deregistered as a charitable entity on the end date:
b: a person ( person B When this section does not apply
2: This section does not apply if—
a: for person A, they are re-registered on the register of charitable entities within 1 year of the end date:
b: for person B, they meet the requirements of section CW 42(1) within 1 year of the end date. Treatment of income
3: Person A or person B, as applicable, has an amount of income derived on the day that is 1 year after the end date that is equal to the value of assets that the person held on the end date less the liabilities of the person on that date, but ignoring—
a: assets that are disposed of or transferred within 1 year of the end date, together with any rights and obligations, to another person—
i: for charitable purposes:
ii: in accordance with the person’s rules described in subsection (4):
b: assets received from the Crown—
i: to settle a Treaty of Waitangi claim:
ii: in accordance with the Maori Fisheries Act 2004:
c: assets other than money gifted or left to the person when they met the requirements to derive exempt income under section CW 41 or CW 42. Person’s rules
4: In subsection (3)﻿(a)﻿(ii), the person’s rules are, as appropriate—
a: for person A, the person’s rules set out in the register of charitable entities immediately before the person’s removal from the register:
b: for person B, the governing instrument that applies immediately before the end date. Negative amounts
5: For the purposes of the calculation in subsection (3), if the amount is negative, it is treated as zero. References to assets and liabilities
6: In this section, references to assets liabilities
a: mean the assets and liabilities owned, controlled, or held, wholly or in part, immediately before the end date; and
b: include—
i: all assets of any kind; and
ii: all liabilities, including debts, charges, duties, contracts, or other obligations, whether present, future, actual, contingent, payable, or to be observed or performed in New Zealand or elsewhere. Meaning of end date
7: In this section, end date
a: for person A, the day of final decision:
b: for person B, the day on which the requirements of section CW 42(1) are no longer met. amount, asset, charitable purpose, day of final decision, end date, exempt income, income, liabilities, New Zealand, real property, share, year
138: New cross-heading and section HR 13 inserted
1: After section HR 12 Lloyd’s of London: life insurance
HR 13: Lloyd’s of London: life insurance
What this section applies to
1: This section applies for the purposes of the obligations imposed by section BB 2 (Main obligations) on underwriters of Lloyd’s of London who derive income ( premium income section CR 3B Lloyd’s of London single person
2: All underwriters of Lloyd’s of London who derive premium income in the income year are treated as if they were a notional single person, and are jointly and severally liable for meeting the obligations of the notional single person for the income year. Taxable income and return of income
3: Subject to section HD 17B
a: calculate the taxable income that relates to the premium income for the notional single person described in subsection (2) for the corresponding tax year; and
b: for that tax year, provide a joint return of income and satisfy the income tax liability that relates to the premium income for the notional single person. Underwriters of Lloyd’s of London
4: In this section, underwriters of Lloyd’s of London has the same meaning as Lloyd’s of London. income, income tax liability, income year, Lloyd’s of London, New Zealand, return of income, tax year, taxable income
2: Subsection (1) applies in relation to a life insurance premium that is derived on or after 1 April 2017 by Lloyd’s of London.
139: Section HZ 4E amended (Transition out of LTC regime for Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017)
Replace section HZ 4E(1)
1: This section applies when an entity that is a look-through company (an LTC cessation
a: on the first day of application for an amendment to LTC-related provisions, in section 288 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017; and
b: because of an amendment to LTC-related provisions, in section 288 of that Act.
140: Section IA 2 amended (Tax losses)
1: Replace section IA 2(4)﻿(g)
g: a person with an unused specified activity net loss: the amount of the unused specified activity net loss to the extent to which the amount has not been subtracted under section IA 4(1)﻿(a) from net income for a tax year.
2: In section IA 2
a: insert unused specified activity net loss
b: delete specified activity net loss
3: Subsection (1) applies for the 2018–19 and later income years.
141: Section IA 4 amended (Using loss balances carried forward to tax year)
1: In section IA 4(1) tax year, and a person’s unused specified activity net loss,
2: In section IA 4(1)﻿(b) section IA 2(2), or the amount of unused specified activity net loss referred to in section IA 2(4)﻿(g)
3: After section IA 4(1) Unused specified activity net losses subtracted before loss balance
1B: In subsection (1)﻿(a), the unused specified activity net loss is subtracted from net income before the loss balance. Order for unused specified activity net losses
1C: In subsection (1)﻿(a), the unused specified activity net loss is subtracted in the order in which it arose. The order in which it arose is to be determined by applying section IA 9(4)
4: In section IA 4 tax loss component unused specified activity net loss
5: Subsections (1), (2), and (3) apply for the 2018–19 and later income years.
142: Section IA 4 amended (Using loss balances carried forward to tax year)
1: In section IA 4(1) tax year, and a person’s unused specified activity net loss,
2: In section IA 4(1)﻿(b) section IA 2(2), or the amount of unused specified activity net loss referred to in section IA 2(4)﻿(g)
3: Repeal section IA 4(1B) and (1C)
4: In section IA 4 tax loss component unused specified activity net loss
5: Subsections (1), (2), and (3) apply for the 2019–20 and later income years.
143: Section IA 7 amended (Restrictions relating to ring-fenced tax losses)
1: Repeal section IA 7(8)
2: In section IA 7 petroleum mining company
3: Subsection (1) applies for the 2018–19 and later income years.
144: Section IA 8 amended (Restrictions relating to schedular income)
In section IA 8 non-resident entertainer
145: Section IA 9 amended (Ordering rules)
1: After section IA 9(3) Order for tax loss component from unused specified activity net loss
4: For the purposes of subsection (1), the tax loss component under section IA 2(4)﻿(g)
2: In section IA 9 unused specified activity net loss
3: Subsection (1) applies for the 2018–19 and later income years.
146: Section IC 3 amended (Common ownership: group of companies)
1: Replace section IC 3(3)
3: In subsection (1)﻿(a) and section IC 4(1)﻿(a), a person’s common voting interest in the relevant companies at a particular time is the percentage of their voting interests under sections YC 2, YC 4(1) to (3), YC 5, and YC 6 (which relate to voting interests) in each of the companies at the time.
2: In section IC 3(4) section YC 3 (Market value interests) sections YC 3, YC 4(1) to (3), YC 5, and YC 6 (which relate to market value interests)
3: Subsection (1) applies for the 2008–09 and later income years.
147: Section IS 5 amended (Petroleum miners’ tax losses)
1: In section IS 5(1)﻿(a) section DT 7 (Exploratory well expenditure) section DT 5 (Petroleum development expenditure)
2: Subsection (1) applies for the 2008–09 and later income years.
148: Section IS 5 repealed (Petroleum miners’ tax losses)
1: Repeal section IS 5
2: Subsection (1) applies for the 2018–19 and later income years.
149: Section IZ 1 repealed (Use of specified activity net losses)
1: Repeal section IZ 1
2: Subsection (1) applies for the 2018–19 and later income years.
150: Section IZ 2 repealed (Petroleum mining companies: treatment of payments from shareholders)
1: Repeal section IZ 2
2: Subsection (1) applies for the 2018–19 and later income years.
151: Section IZ 3 repealed (Petroleum mining companies: use of loss balances)
1: Repeal section IZ 3
2: Subsection (1) applies for the 2018–19 and later income years.
152: Section LA 6 amended (Remaining refundable credits: PAYE, RWT, and certain other items)
1: After section LA 6(1)﻿(i)
ib: subpart LT
2: In section LA 6(2)﻿(d) under Part 10B under section LB 1B
3: Subsection (1) applies for the 2018–19 and later income years.
153: Section LB 1 amended (Tax credits for PAYE income payments)
1: In section LB 1(1) an employer monthly schedule employment income information
2: In section LB 1(3)﻿(c) the employer monthly schedule their employment income information
3: In section LB 1(4) an employer monthly schedule employment income information
4: In section LB 1
a: insert employment income information
b: delete employer monthly schedule
154: New section LB 1B inserted (Treatment of tax credits of certain companies with shareholders who are employees)
After section LB 1
LB 1B: Treatment of tax credits of certain companies with shareholders who are employees
When this section applies
1: This section applies when—
a: a company to which section RD 3B or RD 3C (which relate to income derived by shareholders who are employees) applies, pays an amount to a person who is both a shareholder and an employee of the company; and
b: the amount is paid or allocated—
i: under section GB 29 (Attribution rule: calculation); or
ii: as a shareholder salary, being a payment treated as income other than from a PAYE income payment under section RD 3B(1)﻿(b) or RD 3C(1)﻿(b); and
c: an amount of tax has been withheld from the payment in relation to which the company has, or will have, a tax credit under section LB 1 Use of tax credits
2: Despite section LA 6(2)﻿(a) to (c) (Remaining refundable credits: PAYE, RWT, and certain other items), the company may apply to have an amount of the company’s tax credit transferred under section LA 6(2)﻿(d) to the person, treating the amount as tax paid in excess. Treatment for company
3: The amount of the company’s tax credit under section LB 1 Treatment for shareholder
4: The amount of the shareholder’s tax credit under section LB 1 amount, amount of tax, company, employee, income, income tax, pay, PAYE income payment, shareholder, tax credit
155: Section LB 3 amended (Tax credits for resident withholding tax)
1: In section LB 3(1) are met. are met. The amount of tax includes a payment of RWT for a non-cash dividend.
2: Replace section LB 3(4) and (5) Detached tax credits
4: A trustee of a trust may detach some or all of a tax credit referred to in subsection (1) for resident passive income—
a: that is derived by the trustee in an income year; and
b: that is distributed to a person ( person A
i: the income year referred to in paragraph (a); or
ii: the extended period referred to in section HC 6(1)﻿(b) (Beneficiary income); and
c: in relation to which the trustee makes an RWT substitution payment under section RE 2(7). Allocation and tax credits
5: The trustee may, in a return of income for the income year referred to in subsection (4)﻿(a), choose to allocate, for that year, an amount to a beneficiary of the trust that is equal to some or all of the amount of the detached tax credit referred to in subsection (4). The trustee has a tax credit equal to the amount that is not allocated to a beneficiary, and a beneficiary has a tax credit for the amount that is allocated to them. Treatment of amounts
6: Despite subsection (1), an amount of a tax credit that person A would have under this section in the absence of subsections (4) and (5) must be reduced by an amount equal to the RWT substitution payment received by person A. Evidential requirements
7: Subsection (5) does not apply in the circumstances set out in section HD 4(b) (Treatment of principals). Meaning of detached tax credit
8: A detached tax credit
3: In section LB 3 amount Commissioner detached tax credit income tax liability income year notify trustee income
4: Subsections (2) and (3) apply for the 2008–09 and later income years but do not apply to a person and an income year in relation to a tax position taken by the person—
a: in a return of income filed before 1 April 2019 for the 2008–09 or later income years; and
b: relating to the treatment of tax credits for resident passive income in a way that is not consistent with the amendments made in this Act for the treatment of those tax credits; and
c: relying on section LB 3
156: Section LB 4 amended (Tax credits for families)
In section LB 4(1) and their minimum family tax credit under subpart ME (Minimum family tax credit) , their minimum family tax credit under subpart ME (Minimum family tax credit), and their Best Start tax credit under subpart MG (Best Start tax credit)
157: Section LD 3 amended (Meaning of charitable or other public benefit gift)
In section LD 3(2)﻿(ac) entity, if the gift is made in a tax year that the entity meets the requirements to derive exempt income entity, if the gift is made at a time the entity is eligible to derive exempt income
158: Section LD 4 amended (Tax credits for payroll donations)
1: In section LD 4(1)﻿(a)﻿(i) files by electronic means an employer monthly schedule and a PAYE income payment form provides employment income information by electronic means
2:
3: In section LD 4
a: insert employment income information
b: delete employer monthly schedule PAYE income payment form Section 158(2) repealed 18 March 2019 section 345 Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019
159: Section LD 5 amended (Calculating amount of tax credit and filing particulars)
1: In section LD 5(2)﻿(a) an employer monthly schedule and a PAYE income payment form for the employment income information relating to
2: In section LD 5
a: insert employment income information
b: delete employer monthly schedule PAYE income payment form
160: Section LK 1 amended (Tax credits relating to attributed CFC income)
1: After section LK 1(1) Credits for parent companies and group companies
1B: For the purposes of this section and sections LK 2 Residence requirements
1C: For the purposes of subsection (1B), the residence requirements set out in section IC 7 (Residence of company A) do not apply to disallow the use of the tax credit by group companies under section LK 6.
2: Replace section LK 1(4)
4: In subsection (1), a payment of income tax or foreign income tax by the CFC or person, as applicable, includes an amount of tax withheld from income in New Zealand or another country or territory.
3: In section LK 1(4) subsection (1) subsections (1) and (1B)
4: In section LK 1 company group of companies income
5: Subsection (2) applies for the 2008–09 and later income years.
161: Section LK 2 amended (Calculation of amount of credit)
1: In section LK 2(1) LK 1(1) LK 1(1) and (1B)
2: In section LK 2(2)﻿(b) paid or payable by the CFC paid or payable by the CFC or the person or, when section LK 1(1B)
3: After section LK 2(2) Modifications to formula: section LK 1(1)﻿(d)
3: For the purposes of the formula in this section, when section LK 1(1)﻿(d) applies to provide a tax credit for a tax year when foreign income tax is paid by the person in relation to the CFC from which the income is derived, the calculation of the amount of the tax credit is made under subsection (1), ignoring the section EX 18 income interest in subsection (2)﻿(a).
4: After section LK 2(3) Modifications to formula: section LK 1(1B)
4: For the purposes of the formula in this section, when section LK 1(1B) applies to provide a tax credit for a tax year to a group company, the calculation of the amount of the tax credit is made under subsection (1), ignoring the section EX 18 income interest in subsection (2)﻿(a).
5: In section LK 2 company group of companies income
6: Subsection (3) applies for the 2008–09 and later income years.
162: New subpart LT inserted (Tax credits for petroleum miners)
1: After section LS 4
LT: Tax credits for petroleum miners
LT 1: Tax credits for petroleum miners
When this section applies
1: This section applies for an income year if a petroleum miner or a farm-in party—
a: has—
i: been allocated under section EJ 13(4)
ii: incurred expenditure for which they are entitled to a deduction under section DT 16
b: notifies the Commissioner before they file the return of income for the income year; and
c: has a net loss for the tax year corresponding to the income year. Tax credits
2: The petroleum miner or farm-in party has a tax credit for the tax year corresponding to the income year for an amount calculated using the formula— amount of loss × tax rate. Definition of items in formula
3: In the formula,—
a: amount of loss
b: tax rate Maximum amounts
4: Despite subsection (2), the maximum amount of the credit must not be more than the lesser of—
a: the result of the formula; and
b: the amount of income tax paid by—
i: for a petroleum miner, the petroleum miner and any consolidated group of which they are a member on net income derived for all earlier tax years, calculated on a year-by-year basis and aggregated:
ii: for a farm-in party, the farm-in party and any consolidated group of which they are a member on net income derived for all earlier tax years, calculated on a year-by-year basis and aggregated. Consolidated groups
5: For the purposes of subsection (4)﻿(b), the amount of income tax paid by the consolidated group includes income tax paid on net income derived for tax years before the petroleum miner or farm-in party joined the group. Treatment of trustees
6: For the purposes of subsection (4), if the petroleum miner or farm-in party is a trustee of a trust, the amount of tax paid for each earlier tax year is determined—
a: first, by reference to the amount of income tax paid under the obligations of a trustee under section HC 32 (Liability of trustee as agent); and
b: secondly, by reference to the amount of tax paid on trustee income; and
c: calculated on a year-by-year basis and aggregated. Calculations on year-by-year basis
7: In subsections (4)﻿(b) and (6)﻿(c) a reference to a calculation on a year-by-year basis refers to a calculation starting with the immediately preceding tax year and working backwards to earlier tax years until the amount of tax paid is equal to or more than the amount referred to in subsection (4)﻿(a). Treatment of tax losses
8: To the extent to which the petroleum miner or farm-in party has a tax credit under this section, the amount of the net loss giving rise to the credit does not form part of a tax loss component for the petroleum miner or farm-in party. Nature of tax credits
9: The tax credit is available for use under section LA 6(2) (Remaining refundable credits: PAYE, RWT, and certain other items). Relationship with other sections
10: Subsection (8) overrides section IA 2 amount, amount of tax, Commissioner, consolidated group, decommissioning, deduction, farm-in party, income, income tax, income year, interest, net income, net loss, pay, permit area, petroleum miner, petroleum mining operations, petroleum permit, notify, return of income, tax credit, tax loss, tax loss component, tax year, trustee, trustee income
LT 2: Petroleum mining operations outside New Zealand
Section LT 1 applies with modifications
1: Section LT 1 applies as modified by this section to a petroleum miner undertaking petroleum mining operations or decommissioning outside New Zealand through a branch or a controlled foreign company in relation to those operations outside New Zealand. Net losses
2: The net loss referred to in section LT 1(1)﻿(c) Maximum amounts
3: The maximum amount of the credit referred to in section LT 1(4)
a: the result of the formula in section LT 1(2)
b: the amount of income tax paid by the petroleum miner and any consolidated group of which the petroleum miner is a member on net income derived for all earlier tax years that relates to the petroleum mining operations or decommissioning outside New Zealand, calculated on a year-by-year basis and aggregated. Consolidated groups, trustees, calculations on year-by year basis
4: Section LT 1(5), (6), and (7) amount, consolidated group, controlled foreign company, decommissioning, farm-in party, income tax, net income, net loss, New Zealand, pay, petroleum miner, petroleum mining operations, tax credit, tax year
2: Subsection (1) applies for the 2018–19 and later income years.
163: Section MD 9 amended (Fifth requirement: full-time earner)
Replace section MD 9(2)﻿(b)
b: income, other than from a PAYE income payment, to which section RD 3B or RD 3C (which relate to income other than PAYE) applies; or
164: Section MD 15 amended (Family scheme income for purposes of section MD 14)
In section MD 15(c) income to which section RD 3(2) to (4) (PAYE income payments) applies income, other than from a PAYE income payment, to which section RD 3B or RD 3C (which relate to income other than PAYE) applies
165: Section MX 1 amended (When subpart applies)
In section MX 1 When this subpart applies
166: Section MX 4 amended (R&D loss tax credits)
In section MX 4 Amount of tax credit
167: Section OA 2 amended (Memorandum accounts)
In section OA 2(3) a tax year a tax year and each subsequent tax year
168: Section OA 7 amended (Opening balances of memorandum accounts)
1: Replace section OA 7(2) Credits and debits forming opening balances
2: The amount of each credit or debit that forms part of the opening balance of a memorandum account is treated as recorded in the relevant memorandum account on the date on which it was originally recorded.
2: Replace section OA 7(3)
3: If a consolidated group, company, or person starts a memorandum account during a tax year, the treatment of existing credits and debits is set out as follows:
a: when the companies of 2 or more consolidated imputation groups choose to combine to form, or to join, an imputation group, see
b: when the companies that are part of an imputation group choose to convert their status to that of a consolidated group that is a consolidated imputation group, see
c: for a resident imputation subgroup associated with a trans-Tasman imputation group, see
3: In section OA 7 amount, company, consolidated group, consolidated imputation group, imputation group, income year, memorandum account, resident imputation subgroup, tax year, trans-Tasman imputation group
169: Section OB 37 amended (ICA refund of tax credit)
1: Before section OB 37(2) Exclusion: refund after debit under section OB 41
1C: Despite subsection (1), an ICA company has an imputation debit for a refundable tax credit arising in a tax year after a debit arises under section OB 41, reduced by the lesser of—
a: the debit under section OB 41:
b: the amount by which the refundable tax credit exceeds the total credits to the company’s imputation credit account, for amounts satisfying the company’s income tax liability, during the period from the date of the debit to the date on which the credit balance is to be determined under sections RM 13 and RM 14 (which relate to limits on refunds for ICA companies).
2: Subsection (1) applies for the 2018–19 and later income years.
170: Section OB 47B amended (Tax paid by recipients of R&D loss tax credits)
In section OB 47B(1) section MX 6 section MX 7
171: Section OP 3 amended (Changes in consolidated imputation groups)
1: Replace section OP 3(4)
4: The opening balance for a tax year for the imputation credit account of the consolidated imputation group is determined as follows:
a: for an imputation group to which subsection (2) applies, the opening balance is equal to the amount that is the sum of the opening balances of each imputation group that is part of the consolidated imputation group:
b: for an imputation group to which subsection (3) applies, the opening balance is the amount that is the sum of the opening balances of the imputation groups that chose to convert their status.
2: In section OP 3 amount tax year
172: Section OP 4 amended (Resident imputation subgroups)
1: After section OP 4(2) Opening balances
3: The opening balance of the imputation credit account is an amount equal to the sum of the opening balances of each company that is part of the resident imputation subgroup.
2: In section OP 4 amount
173: Section OP 5 amended (When credits and debits arise only in consolidated imputation group accounts)
Repeal section OP 5(2)﻿(bb)
174: Section OP 22 amended (Consolidated ICA group company’s credit)
1: In section OP 22(1)﻿(c) group company’s account. group company’s account; and
d: to the extent to which a debit referred to in paragraph (b) is not offset under paragraph (c), a debit balance immediately arises in the imputation credit account of the group.
2: After section OP 22(1) Amount of credit
1B: The amount of the credit referred to in subsection (1) that is transferred to the imputation credit account of the group is limited to the lesser of—
a: the amount of the debit balance in the imputation credit account of the group referred to in subsection (1)﻿(d); and
b: the amount of the credit balance of the imputation credit account of the group company referred to in subsection (1)﻿(a), determined at the time of the debit to the imputation credit account of the group referred to in subsection (1)﻿(b).
3: Subsections (1) and (2) apply for the 2008–09 and later income years.
175: Section OP 35 amended (Consolidated ICA refund of tax credit)
1: Before section OP 35(2) Exclusion: refund after debit under section OP 42
1C: Despite subsection (1), a consolidated imputation group has an imputation debit for a refundable tax credit arising for a group company in a tax year after a debit arises under section OP 42, reduced by the lesser of—
a: the debit under section OP 42:
b: the amount by which the refundable tax credit exceeds the total credits to the group’s imputation credit account, for amounts satisfying the group’s income tax liability, during the period from the date of the debit to the date on which the credit balance is to be determined under sections RM 13 and RM 14 (which relate to limits on refunds for ICA companies).
2: Subsection (1) applies for the 2018–19 and later income years.
176: Table O19 amended (Imputation credits of consolidated imputation groups)
1: In table O19, row 20 non-resident withholding income non-resident passive income
2: Subsection (1) applies for the 2008–09 and later income years.
177: Tables of credits and debits in memorandum accounts amended
The tables of credits and debits in memorandum accounts are amended by repealing the row number in column 2 from the table in column 1. This table sets out the credits and debits to be repealed Table reference Repeal row number Table O1: imputation credits row 1 Table O2: imputation debits row 1 Table O3: FDP credits row 1 Table O4: FDP debits row 1 Table O5: conduit tax relief credits row 1 Table O6: conduit tax relief debits row 1 Table O9: person’s branch equivalent tax credits row 1 Table O10: person’s branch equivalent tax debits row 1 Table O11: ASC credits row 1 Table O12: ASC debits row 1 Table O17: Maori authority credits row 1 Table O18: Maori authority debits row 1 Table O19: imputation credits of consolidated imputation groups row 1 Table O20: imputation debits of consolidated imputation groups row 1 Table O21: FDP credits of consolidated FDP groups row 1 Table O22: FDP debits of consolidated FDP groups row 1 Table O26: branch equivalent tax debits of consolidated BETA groups row 1
178: Section RA 11 replaced (Adjustment to correct errors: certain underpayments)
Replace section RA 11
RA 11: Adjustment to correct errors: certain underpayments
When this section applies
1: This section applies when—
a: a person (the payer payee
b: the payer, through an error, does not withhold some or all of the amount. Adjustments for errors
2: To correct the error, the payer may make an adjustment by—
a: subtracting from a later payment to the payee an amount to correct the deficiency; or
b: recovering from the payee an amount to correct the deficiency; or
c: for a non-cash dividend, adjusting the amount that is subject to tax. Timing of and limitations on adjustments
3: Subject to subsection (4),—
a: for an adjustment for an error discovered in the tax year in which it is made ( year 1
b: for an adjustment for an error discovered in a tax year following that in which the error is made ( year 2
i: $2,000; or
ii: 5% of the payer’s withholding liability for RWT or NRWT, as applicable, for the tax year in which the first payment is made to the payee. Requirements when recovering amounts from payees
4: For the purposes of subsection (2)﻿(b), the recovery action must be taken in the same tax year in which the error is made. When adjustments made
5: An adjustment under this section is treated as made on the due date for the amount of tax referred to in subsection (1)﻿(a). Notifying Commissioner of adjustments
6: The payer must notify the Commissioner of an adjustment made under subsection (3)﻿(b) at the time it is made, including in their notification—
a: the information in schedule 6, table 1, rows 1 to 7, 10, 16, and 22 of the Tax Administration Act 1994, as applicable; and
b: adjustments to the items referred to in schedule 6, table 1, rows 8, 9, 11, 14, 15, and 21 of that Act, as applicable. amount, amount of tax, Commissioner, investment income information, non-cash dividend, non-resident passive income, notify, NRWT, pay, resident passive income, RWT, tax year
179: Section RA 12 amended (Adjustment to correct errors: certain excess amounts)
1: Replace section RA 12(2) Refunding excess amounts of resident and non-resident passive income
2: For a payment of resident passive income or non-resident passive income, the payer may pay the excess amount to the payee at any time before the 20th of April after the end of the tax year in which the amount is withheld if the payer has not reported to the payee under section 26C
2: In section RA 12(3) RWT RWT or NRWT, as applicable
3: Replace section RA 12(4) Notifying payee and Commissioner of excess amounts
4: If the payer has not refunded the amount to the payee, the payer must notify the following of the excess amount by the date referred to in subsection (2):
a: the payee:
b: the Commissioner. Notifying Commissioner of refunds paid
4B: If the payer has refunded the amount to the payee, the payer must notify the Commissioner of the payment and of the amount of the refund at the time of paying the refund.
4: In section RA 12(6) if the excess amount has been refunded to the payee if the payer has refunded the excess amount to the payee and has not received a refund from the Commissioner
5: In section RA 12(6)﻿(a) noting the action in the statement required under section 50 of the Tax Administration Act 1994 noting the action in the investment income information required under subpart 3E
6: In section RA 12
a: insert investment income information notify
b: delete dividend dividend treated as interest interest Maori authority notice RWT withholding certificate shareholder dividend statement taxable Maori authority distribution
180: Section RA 15 amended (Payment dates for interim and other tax payments)
1: In section RA 15(4) subsection (3) subsection (3)﻿(a)﻿(ii)
2: Repeal section RA 15(5) and (6)
181: Section RA 16 amended (Payment date when taxable activity ends)
1: In section RA 16(3) if the person continues to hold an RWT exemption certificate if the person’s RWT-exempt status continues
2: In section RA 16
a: insert RWT-exempt status
b: delete RWT exemption certificate
182: Section RA 17 amended (Payment date when RWT exemption certificate expires)
1: In section RA 17 when RWT exemption certificate expires when RWT-exempt status ends
2: In section RA 17(1) when an RWT exemption certificate of a person expires when a person’s RWT-exempt status ends
3: In section RA 17(2) the certificate expires the status ends
4: In section RA 17
a: insert RWT-exempt status
b: delete RWT exemption certificate
183: Section RC 3 amended (Who is required to pay provisional tax?)
1: In section RC 3(2)﻿(c) certificate
2: In section RC 3 exemption certificate
184: Section RC 19 amended (Disposal of assets)
In section RC 19(2)﻿(a) of that Act of the Goods and Services Tax Act 1985
185: New section RC 35B inserted (Treatment of overpaid provisional tax instalments calculated using AIM method)
1: After section RC 35
RC 35B: Treatment of overpaid provisional tax instalments calculated using AIM method
When this section applies
1: This section applies for the purposes of sections RC 5(5B), RC 7B, RC 9(4B), RC 10B, and RM 6B (Refunds for overpaid AIM method instalments) when—
a: a company uses the AIM method to calculate and pay a provisional tax liability; and
b: the amount of an instalment of provisional tax is overpaid. Overpaid amounts credited to shareholders
2: The company may ask the Commissioner to credit the overpaid amount to the account of a shareholder of the company, treating the amount as—
a: an amount transferred for the purposes of Part 7 of the Tax Administration Act 1994 as provided by section 120LB of that Act:
b: a refund of income tax paid to the company for the purposes of section OB 32 (ICA refund of income tax). Maximum amount
3: The amount that may be credited under subsection (2) must be no more than the least of the following:
a: an amount chosen by the company; and
b: the amount of the shareholder’s residual income tax for the relevant tax year less the amount of any tax credit that the shareholder has under section LB 2 (Tax credits for provisional tax payments) for the tax year, treating a negative amount as zero; and
c: the amount of the company’s tax credit under section LB 2 for the relevant tax year less the amount of the company’s residual income tax for the tax year, treating a negative amount as zero. amount, Commissioner, company, income tax, pay, provisional tax, residual income tax, shareholder, tax credit
2: Subsection (1) applies for the 2018–19 and later income years.
186: Section RD 2 amended (PAYE rules and their application)
Section 186 repealed 18 March 2019 section 346 Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019
187: Section RD 3B amended (Shareholders who are employees, for some companies: income other than PAYE)
1: In section RD 3B(1) if if the person elects to apply this section and
2: Replace section RD 3B(1)﻿(a)
a: the person does not derive as an employee payments of salary or wages of a regular amount for regular pay periods of 1 month or less throughout the income year:
ab: the person derives less than 66% of their annual gross income as an employee from payments of salary or wages of a regular amount for regular pay periods throughout the income year:
3: Repeal section RD 3B(2)
188: Section RD 3C amended (Shareholders who are employees, for some companies: PAYE and income other than PAYE)
1: In section RD 3C(1) if if the person elects to apply this section and
2: Repeal section RD 3C(2)
189: Section RD 4 replaced (Payment of amounts of tax to Commissioner)
Replace section RD 4
RD 4: Payment of amounts of tax to Commissioner
Payments monthly or twice-monthly
1: An employer or PAYE intermediary who withholds an amount of tax for a PAYE income payment must pay the amount to the Commissioner as follows:
a: on a monthly basis, if they are an employer to whom subsection (2) applies:
b: for 2 payment periods in a month, if paragraph (a) does not apply. Monthly payments
2: For the purposes of subsection (1)﻿(a), an employer must pay the amount of tax withheld by the 20th day of the month following the month in which the PAYE income payment is made if they are—
a: an employer who—
i: is not a new employer; and
ii: has, for the preceding tax year, gross amounts of tax of less than $500,000 withheld under section RA 5(1)﻿(a) and (c) (Tax obligations for employment-related taxes):
b: a new employer who has, for the current tax year, gross amounts of tax withheld under section RA 5(1)﻿(a) and (c) that total less than $500,000. Twice-monthly payments
3: An employer to whom subsection (1)﻿(b) applies must pay the amount of tax withheld to the Commissioner by the dates referred to in section RA 15(2) (Payment dates for interim and other tax payments). Liability when amount not withheld
4: If some or all of the amount of tax for a PAYE income payment is not withheld under subsection (1), the employee in relation to whom the payment is required to have been made must pay to the Commissioner under section RD 21 Amounts aggregated for threshold purposes
5: For the purposes of determining whether a threshold referred to in subsection (2)﻿(a)﻿(ii) and (b) is reached, if the employer ends their business and starts a new business, or operates 2 or more businesses at the same time, all amounts of tax withheld must be aggregated. Persons treated as single employers
6: For the purposes of this section, the following are treated as 1 employer:
a: 2 or more companies if they are part of a group of companies at a time in the relevant tax year:
b: all partners in a partnership:
c: all persons in whom property has become vested, or to whom the control of property has passed in the case of—
i: an estate of a deceased person; or
ii: a trustee of a trust; or
iii: a company in liquidation; or
iv: an assigned estate; or
v: another fiduciary relationship. Threshold changes by Order in Council
7: The Governor-General may, on the recommendation of the Minister of Revenue, make an Order in Council amending the threshold amount referred to in subsection (2). Before making the recommendation, the Minister must undertake consultation on the proposed amendment that is appropriate and reasonable for the purposes of this section. amount, amount of tax, business, Commissioner, company, employee, employer, gross, group of companies, partner, partnership, pay, PAYE income payment, PAYE intermediary, payment period, tax year, trustee
190: Section RD 6 amended (Certain benefits and payments)
1: In section RD 6(1)﻿(d) section CE 2(2) and (4) (Value and timing of benefits under share purchase agreements) section CE 1(1)﻿(d) (Amounts derived in connection with employment)
2: In section RD 6(3)﻿(a)
a: in subparagraph (i), replace CE 2(10) (Value and timing of benefits under share purchase agreements) CE 2(7) (Benefits under employee share schemes)
b: in subparagraph (i), replace CE 2(11) (Value and timing of benefits under share purchase agreements) CE 2(8)
c: in subparagraph (ii), replace CE 2(10) CE 2(7)
191: Section RD 6 amended (Certain benefits and payments)
1: In section RD 6(1)﻿(d) an election under section RD 7B. an election under section RD 7B; or
e: a payment made to them as a person on a shadow payroll.
2: Replace section RD 6(3)﻿(a)
a: for a benefit referred to in subsection (1)﻿(d), on the ESS deferral date on which the employee is treated as deriving the benefit under section CE 2(8)
3: After section RD 6(3) Employees on shadow payrolls
4: For the purposes of the PAYE rules, a payment referred to in subsection (1)﻿(e) is treated as paid to the employee—
a: on the day that the amount is paid by the non-resident employer, that is the payday for the purposes of sections 23E to 23H and 23J(2) of the Tax Administration Act 1994:
b: on the 20th day after the amount is paid by the non-resident employer, that is the 20th day referred to in section 23J(3) Meaning of payment to person on shadow payroll
5: For the purposes of this section, a payment made to a person on a shadow payroll is a PAYE income payment paid by a non-resident employer to a person who undertakes employment services in New Zealand but who remains on the employer’s payroll system in a country or territory outside New Zealand.
4: In section RD 6
a: insert employment income information ESS deferral date New Zealand non-resident PAYE income payment
b: delete PAYE income payment form period
192: Section RD 7 amended (Extra pay)
In section RD 7(1)﻿(bb) section CE 2(2) and (4) (Value and timing of benefits under share purchase agreements) section CE 1(1)﻿(d) (Amounts derived in connection with employment)
193: Section RD 7 amended (Extra pay)
1: Replace section RD 7(1)﻿(b)﻿(iv)
iv: as a result of a retrospective increase in salary or wages, but only to the extent to which it accrues from the start of the increase until the start of the first pay period in which the increase is included in salary or wages; and
2: Repeal section RD 7(2)
194: Section RD 7 amended (Extra pay)
1: After section RD 7(2) Remedial payments for certain entitlements
3: A remedial payment made in relation to 1 or more of a person’s entitlements under the Holidays Act 2003, an employment agreement, or both, is treated as an extra pay if—
a: the payment is made to a person in connection with their employment; and
b: but for this subsection, the payment would be a payment of salary or wages or an extra pay, or a combination of both; and
c: the payment is made to the person to meet all or part of a shortfall in 1 or more previous payments to the person who has an entitlement under the Holidays Act 2003, or an employment agreement, or both. Exclusion
4: A payment made to a person to address some or all of a failure to pay the person any salary or wages for a pay period is excluded from a remedial payment under subsection (3). If more than 1 payment is made to the person to address the failure, this subsection applies to exclude only the first of these payments. Meaning of employment agreement
5: For the purposes of subsection (3), an employment agreement
a: it includes an individual employment contract continued in force by section 242(1) of that Act; and
b: it excludes a contract for services described in paragraph (b) of the definition.
2: Subsection (1) does not apply to a person in relation to a tax position taken by them—
a: in the period from 1 April 2008 to 17 August 2017; and
b: relating to the taxation treatment of a remedial payment made in relation to an entitlement under the Holidays Act 2003
c: relying on the treatment of the entitlement under the PAYE rules according to the character that the payment would have had if the entitlement had been paid at the time at which it should have been paid.
195: Section RD 7B amended (Treatment of certain benefits under employee share agreements)
1: In the heading to section RD 7B agreements schemes
2: Replace section RD 7B(1) and (2) When this section applies
1: This section applies for an employee or a former employee who receives a benefit under section CE 1(1)﻿(d) (Amounts derived in connection with employment) in relation to an employee share scheme.
3: In section RD 7B(3) share purchase agreement employee share scheme
4: In section RD 7B
a: insert employee share scheme
b: delete share purchase agreement
196: Section RD 7B amended (Treatment of certain benefits under employee share agreements)
1: Replace section RD 7B(3)﻿(b) and (c)
b: including the value of the benefit in their employment income information under subpart 3C
2: In section RD 7B
a: insert employment income information
b: delete employer monthly schedule
197: Section RD 8 amended (Schedular payments)
1: Replace section RD 8(1)﻿(b)﻿(iv)
iv: an exempt payment referred to in section 24H schedule 5, part C, clause 6
2: In section RD 8 exemption certificate
198: Section RD 10 amended (Amounts of tax for PAYE income payments)
1: In section RD 10(1) Subsections (2) and (3) Subsections (2), (2B), (2C), (2D), and (3)
2: After section RD 10(2B) Rates for extra pays: non-resident seasonal workers
2C: The amount of tax for an extra pay that is paid to a non-resident seasonal worker is calculated at the rate set out in schedule 2, part B, table 1, row 1B (Basic tax rates for PAYE income payments). This rate applies for both a worker who has notified their employer under section 24B of the Tax Administration Act 1994 of their tax code under schedule 2, part A, clause 8, and a worker to whom section 24B(3C) Rates for extra pays: non-notified tax codes
2D: The amount of tax for an extra pay that is paid to an employee who has not notified their employer of their tax code is calculated at the rate set out in schedule 2, part B, table 1, row 5.
3: In section RD 10(2C)
a: replace section 24B section 24C
b: replace section 24B(3C) schedule 5, part B, clause 3
4: In section RD 10, in the list of defined terms, insert non-resident seasonal worker
199: Section RD 10B amended (Amounts of tax for schedular payments)
1: Replace section RD 10B(2) to (4) Basic rates
2: When the person making the schedular payment has been notified under section 24I
a: the payee’s elected rate, for a payee, other than a payee referred to in paragraph (b), who chooses a tax rate under section 24F(3)
b: the special tax rate set by the Commissioner, for a payee who has been provided with a special tax rate under section 24G
c: in other cases, the applicable tax rate set out in schedule 4 (Standard rates of tax for schedular payments). Rates set by Commissioner
3: Despite subsection (2), if the person making the schedular payment has been notified of a rate under section 24F(4) Default rates
4: When the person making the schedular payment has not been notified of the payee’s name and tax file number under section 24I
a: for a payee that is a company that is non-resident, 20% of the amount of the payment:
b: in all other cases, 45% of the amount of the payment.
2: In section RD 10B amount Commissioner
200: New section RD 10C inserted (Calculating amounts of tax following changes to rates or thresholds)
After section RD 10B
RD 10C: Calculating amounts of tax following changes to rates or thresholds
When a change occurs to a rate or threshold in this Act or the Tax Administration Act 1994 affecting the amount of tax for a PAYE income payment, the calculation of the amount of tax must be made using the rate applying on the day on which the PAYE income payment is paid or is otherwise under this Act treated as paid. amount of tax, pay, PAYE income payment
201: Section RD 12 replaced (Multiple payments of salary or wages)
Replace section RD 12
RD 12: Multiple payments of salary or wages
When this section applies
1: This section applies when an employee receives more than 1 payment of salary or wages from their employer in a week or part of a week. The employment may relate to 1 or more employment situations with that employer. What this section does not apply to
2: This section does not apply to salary or wages from employment as a casual agricultural employee, election-day worker, or non-resident seasonal worker. Treatment as 1 payment
3: The total amount of tax for all payments of salary or wages is the amount that would be required to be withheld if all the payments were treated as 1 payment made by the employer for the week. amount of tax, casual agricultural employee, election-day worker, employee, employer, employment, non-resident seasonal worker, pay, salary or wages
202: Section RD 13 replaced (Advance payments of salary or wages)
Replace section RD 13
RD 13: Advance payments
When this section applies
1: This section applies when an employee receives from their employer—
a: an advance payment of salary or wages referred to in section RA 5(1)﻿(a) and (c) (Tax obligations for employment-related taxes):
b: an amount of holiday pay that is paid—
i: in a lump sum before the employee takes their holiday; and
ii: when the employee’s employment is continuing. Employers’ elections
2: The employer may choose to treat the amount as—
a: an extra pay; or
b: a lump sum paid and spread over the pay period or periods to which it relates. Choosing to treat amounts as lump sum payments
3: Subsections (4) and (5) apply when an employer chooses under subsection (2)﻿(b) to treat the amount as a lump sum. Calculating amounts of tax for lump sum payments
4: The amount of tax for the lump sum payment is determined by—
a: apportioning the lump sum to the pay period or pay periods to which it relates based on the employee’s usual hours of work; and
b: calculating the amount of tax for each portion of the lump sum, treating the portion as if it were the only payment of salary or wages paid by the employer to the employee for the particular pay period; and
c: adding together the amounts of tax for each portion. Calculating amounts of tax for salary or wages
5: The amount of tax for a payment of salary or wages for a pay period referred to in subsection (4)﻿(a) that is made after the payment of the lump sum is found by—
a: adding together—
i: the amount of the payment of salary or wages for the pay period; and
ii: the portion of the lump sum that relates to the pay period as determined under subsection (4)﻿(a); and
b: calculating the amount of tax that must be withheld for the total amount referred to in paragraph (a), treating that amount as if it were a single payment of salary or wages paid by the employer to the employee for the pay period; and
c: subtracting the amount of tax for the portion of the lump sum that relates to the pay period as described in subsection (4)﻿(b). amount, amount of tax, employee, employer, employment, extra pay, pay, pay period, salary or wages
203: Section RD 13B amended (Adjustments for payroll donations)
1: In section RD 13B(2) record the information in the relevant employer monthly schedule include in their employment income information the items described in schedule 4, table 1, row 5(a)
2: In section RD 13B
a: insert employment income information
b: delete employer monthly schedule
204: Section RD 14 repealed (Changes to tax rates for salary or wages)
Repeal section RD 14
205: Section RD 16 amended (Payments to private domestic workers)
In section RD 16(2) and RD 4(2) and RD 4(4)
206: Section RD 17 amended (Payment of extra pay with other PAYE income payments)
1: After section RD 17(1B) Exclusion: non-resident seasonal workers and non-notified tax codes
1C: This section does not apply to—
a: a non-resident seasonal worker who—
i: has a tax code under section 24B(3C)
ii: has notified their employer of their tax code under section 24B(3)﻿(gb) of that Act:
b: an employee who has a no notification tax code under section 24B(3B) of that Act.
2: Replace section RD 17(1C)
1C: This section does not apply to —
a: a non-resident seasonal worker—
i: who has notified their employer of their tax code, for which see section RD 10(2C)
ii: to whom schedule 5, part B, clause 3
b: an employee who has a non-notified tax code referred to in schedule 2, part A, clause 3
3: In section RD 17(3) section 24B(3)﻿(bb), (c), (d), or (e) schedule 5, part A, clause 4, rows 3 to 6
4: In section RD 17 non-resident seasonal worker tax code
207: Section RD 21 amended (When amounts of tax not withheld or payment insufficient)
1: Replace section RD 21(1)﻿(a)
a: provide the relevant employment income information under section 23I
2: In section RD 21(3) section RD 4(2) section RD 4(4)
3: In section RD 21
a: insert employment income information
b: delete employer monthly schedule
208: Section RD 22 replaced (Returns for amounts of tax paid to Commissioner)
Replace section RD 22
RD 22: Providing employment income information to Commissioner
Employment income information
1: An employer or PAYE intermediary who withholds an amount of tax for a PAYE income payment must provide the relevant employment income information to the Commissioner under sections 23E to 23H Special tax codes or rates of tax
2: Subsection (1) also applies to require an employer or PAYE intermediary to deliver employment income information in relation to an employee who has—
a: a special tax code of zero provided by the Commissioner under section 24D
b: a special tax rate of zero provided by the Commissioner under section 24G Benefits under employee share schemes
3: For a benefit that an employee or former employee of an employer receives under an employee share scheme, the employer or PAYE intermediary must provide the relevant employment income information to the Commissioner under sections 23E to 23H section 23K Exception
4: Subsection (3) does not apply—
a: when the employee share scheme beneficiary is a former employee for whom the employer has not chosen under section RD 7B
b: to a benefit under an exempt ESS. amount of tax, Commissioner, employee share scheme, employee share scheme beneficiary, employer, employment income information, exempt ESS, pay, PAYE income payment, PAYE intermediary
209: Section RD 23 amended (Bonds given by employers of certain non-resident employees)
1: In section RD 23(3)﻿(b) an employer monthly schedule employment income information
2: In section RD 23(3)﻿(c) section 24B(3)﻿(h) section 24B(3B)
3: In section RD 23(3)﻿(c) the no notification section 24B(3B) a non-notified tax code under section 24E
4: In section RD 23
a: insert employment income information
b: delete employer monthly schedule
210: Section RD 24 amended (Exemption certificates for non-resident contractors)
1: In section RD 24 Exemption certificates Exemptions
2: In section RD 24(2)
a: replace the subsection heading with Exemptions
b: replace an exemption certificate under section 24M an exemption under section 24H
3: In section RD 24 exemption certificate
211: Section RD 36 amended (Repayment of employment-related loans)
1: In section RD 36(2) income an amount
2: Replace section RD 36(2)﻿(b)
b: is payable by the relevant employer without any amount of tax being withheld and paid under the PAYE rules, the RWT rules, or the NRWT rules, or is a fully imputed dividend; and
212: Section RD 51 amended (Calculation of all-inclusive pay)
Replace section RD 51(6)﻿(b)
b: income, other than from a PAYE income payment, to which section RD 3B or RD 3C applies; and
213: Section RD 52 amended (Calculation for certain employees when information lacking)
In section RD 51(1)﻿(a) income to which section RD 3(2) or (4) applies income, other than from a PAYE income payment, to which section RD 3B or RD 3C applies
214: Section RD 57 amended (Private use of motor vehicle: when schedular value used)
1: In section RD 57(3) schedule 5, clause 6(b), (c), (d), or (e) schedule 5, clause 10(b) to (e)
2: Subsection (1) applies for the 2008–09 and later income years.
215: Section RD 64 amended (ESCT rules and their application)
Section 215 repealed 18 March 2019 section 346 Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019
216: Section RD 65 amended (Employer’s superannuation cash contributions)
In section RD 65(3) section RD 22(3) RD 4(2)
217: New section RD 67B inserted (Calculating amounts of tax following changes to rates or thresholds)
After section RD 67
RD 67B: Calculating amounts of tax following changes to rates or thresholds
When a change occurs to a rate or threshold in this Act or the Tax Administration Act 1994 affecting the amount of tax for an employer’s superannuation cash contribution, the calculation of the amount of tax must be made using the rate applying on—
a: the day on which the PAYE income payment to which the contribution relates is paid or is otherwise under this Act treated as paid; or
b: for a contribution that is not tied to a particular PAYE income payment, the day on which the contribution is paid. amount of tax, employer’s superannuation cash contribution, pay, PAYE income payment
218: Section RE 2 amended (Resident passive income)
1: In section RE 2(3)﻿(b) who holds an RWT exemption certificate issued who has RWT-exempt status
2: Repeal section RE 2(5)﻿(a)﻿(iii)
3: In section RE 2(5)﻿(d) who holds an RWT exemption certificate issued who has RWT-exempt status
4: In section RE 2(5)﻿(g) at the time of the payment: at the time of the payment, other than a dividend referred to in section CW 10(3):
5: In section RE 2
a: insert RWT-exempt status
b: delete RWT exemption certificate
6: Subsection (4) applies for the 2019–20 and later income years.
219: Section RE 4 amended (Persons who have withholding obligations)
1: In section RE 4(3)﻿(a) holds an RWT exemption certificate has RWT-exempt status under section RE 27
2: In section RE 4
a: insert RWT-exempt status
b: delete RWT exemption certificate
220: Section RE 5 amended (No withholding obligation in certain circumstances)
1: In section RE 5(2) holds an RWT exemption certificate issued has RWT-exempt status
2: After section RE 5(2) No obligation in relation to non-cash dividends
2B: Section RE 4 does not apply in relation to a dividend referred to in section RE 14C
3: In section RE 5 dividend
4: In section RE 5
a: insert RWT-exempt status
b: delete RWT exemption certificate
5: Subsection (2) applies for the 2017–18 and later income years.
221: Section RE 7 amended (When resident passive income paid to trustees)
1: In section RE 7(1)﻿(c)﻿(i) does not hold an RWT exemption certificate does not have RWT-exempt status under section RE 27
2: In section RE 7
a: insert RWT-exempt status
b: delete RWT exemption certificate
222: Section RE 8 amended (When resident passive income paid to nominees)
1: In section RE 8(1)﻿(c)﻿(i) holds an RWT exemption certificate has RWT-exempt status under section RE 27
2: In section RE 8
a: insert RWT-exempt status
b: delete RWT exemption certificate
223: Section RE 10 amended (Special rule relating to payments of interest)
1: Replace section RE 10(1)﻿(b) and (c)
b: either does not have RWT-exempt status under section RE 27 section 32I
c: has paid an amount of resident passive income consisting of interest that is equal to or less than $5,000 in the tax year before the tax year in which the payment is made; and
2: After section RE 10(2) Interest payments made in relation to taxable activities
3: For the purposes of subsection (2), and despite section RE 4(3)﻿(b), a person who pays an amount of resident passive income consisting of interest in relation to the carrying on of a taxable activity in a tax year is required to withhold RWT for the resident passive income only if the amount that relates to the taxable activity is more than $5,000 for the tax year. This subsection does not apply in relation to a person referred to in subsection (1)﻿(b) other than a person who does not have RWT-exempt status.
3: In section RE 10
a: insert RWT-exempt status taxable activity
b: delete RWT exemption certificate
224: Section RE 14 amended (Non-cash dividends other than certain share issues)
1: After section RE 14(1)﻿(b)
c: a dividend referred to in section RE 14C
2: Subsection (1) applies for the 2017–18 and later income years.
225: New section RE 14C inserted (Non-cash dividends distributed through intermediaries)
1: After section RE 14B
RE 14C: Non-cash dividends distributed through intermediaries
Sections RE 5 and RE 14
a: a company or trustee of a trust—
i: derives the dividend from a foreign company; and
ii: distributes the dividend to a shareholder in the company or to a beneficiary of the trust, as applicable, who is in either case a natural person; and
iii: acts as an intermediary in relation to the distribution of the dividend; and
b: the distribution is made in the same income year in which the dividend is derived. company, foreign company, income year, non-cash dividend, shareholder, trustee
2: Subsection (1) applies for the 2017–18 and later income years.
226: Cross-heading and section RE 27 amended
1: Replace the cross-heading before section RE 27 Persons with RWT-exempt status
2: In section RE 27 RWT-exempt status
3: Replace section RE 27(1)
1: A person may apply to the Commissioner for RWT-exempt status if they are a person listed in section 32E(2) of the Tax Administration Act 1994.
4: Replace section RE 27(2) When status ends
2: A person ceases to have RWT-exempt status if—
a: they no longer meet the requirements in subsection (1); or
b: the Commissioner revokes the status under section 32L
5: In section RE 27(3) the holder of an RWT exemption certificate a person who has RWT-exempt status
6: After section RE 27(3) Notifying investment providers
4: A person who has RWT-exempt status must notify their investment provider of their status and of a change in their status. For a list of investment providers, see section 25E(1)
7: In section RE 27
a: insert RWT-exempt status
b: delete RWT exemption certificate
227: Section RE 28 amended (When certificates expire)
1: In section RE 28 When RWT-exempt status ends
2: In section RE 28(1) a person’s RWT exemption certification expires a person’s RWT-exempt status ends
3: In section RE 28(2) the certificate expired the status ends
4: In section RE 28
a: insert RWT-exempt status
b: delete RWT exemption certificate
228: Section RE 29 replaced (Establishing whether person holds certificate)
Replace section RE 29
RE 29: Establishing whether persons have RWT-exempt status
1: This section applies for the purposes of section RE 5(2)
a: whether person B is a person who has RWT-exempt status; and
b: that the status has not ended.
2: Person A may establish that—
a: they have made a search of the electronic register that the Commissioner provides on which the details of persons with RWT-exempt status are listed; or
b: they have taken reasonable steps to confirm that person B is a person listed in section 32E(2)﻿(a) to (h) of the Tax Administration Act 1994; or
c: except in relation to a person listed in section 32E(2)﻿(k) section 32I Commissioner, notify, RWT-exempt status, tax file number
229: Section RE 30 amended (When unincorporated bodies hold certificates)
1: In section RE 30 hold certificates have RWT-exempt status
2: In section RE 30(1)﻿(a) holds an RWT exemption certificate has RWT-exempt status
3: In section RE 30
a: insert RWT-exempt status
b: delete RWT exemption certificate
230: Section RF 2B amended (Non-resident financial arrangement income: outline and concepts)
In section RF 2B(1) sections RF 2C, and sections RF 2C and
231: Section RL 1 amended (Residential land withholding tax)
1: In section RL 1(2)﻿(a) 2 years 5 years
2: Subsection (1) applies to a person’s disposal of residential land if the date that the person first acquires an estate or interest in the residential land is on or after the date on which the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 receives the Royal assent.
3: Despite subsection (2), subsection (1) does not apply to a person’s disposal of a freehold estate in residential land that the person acquired as the owner of a leasehold estate with a perpetual right of renewal, if the person was granted the leasehold estate before 29 March 2018.
4: Despite subsection (2), subsection (1) does not apply to a person’s disposal of an estate or interest in residential land that the person acquired as the result of the completion of a land development or subdivision, if before 29 March 2018 the person entered into the agreement under which they acquired the estate or interest upon the completion of the land development or subdivision. Section 231(3) inserted 18 March 2019 section 347 Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 Section 231(4) inserted 18 March 2019 section 347 Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019
232: Section RL 4 amended (How much RLWT?)
1: In section RL 4(8)﻿(b) NBDT, as defined in section 4 of the Non-bank Deposit Takers Act 2013 non-bank deposit taker
2: In section RL 4 licensed non-bank deposit taker
233: Section RM 8 amended (Overpaid RWT or NRWT)
1: Replace section RM 8(5)﻿(c)
c: they provide, in relation to the amount, a statement that they will not include particulars in their investment income information under sections 25F to 25H section 25N
2: In section RM 8 investment income information
234: Section RM 15 amended (Changes in credit balances)
After section RM 15(2) Credit balance increased: refund after debit under section OB 41
3: For a company that has a refundable tax credit for a tax year after a debit to the company’s imputation credit account arises under section OB 41 (ICA debit for loss of shareholder continuity), a credit balance for the tax year is increased by an amount equal to the lesser of—
a: the debit under section OB 41:
b: the amount by which the refundable tax credit exceeds the total credits to the company’s imputation credit account, for amounts satisfying the company’s income tax liability, during the period from the date of the debit to the date on which the credit balance is to be determined under sections RM 13 and RM 14.
235: Section RP 2 amended (PAYE intermediaries)
1: In section RP 2(1)
a: delete or 15G
b: delete or a listed PAYE intermediary
2: In section RP 2(2) or listed PAYE intermediary
3: In section RP 2(3) or a listed PAYE intermediary for an employer has the rights and obligations under the PAYE rules and ESCT rules of a PAYE intermediary or listed PAYE intermediary, as applicable, for an employer has the rights and obligations under the PAYE rules and ESCT rules of a PAYE intermediary
4: In section RP 2 listed PAYE intermediary
236: Section RP 3 repealed (Requirements for listed PAYE intermediaries)
Repeal section RP 3
237: Section RP 4 amended (Payment of subsidies to certain PAYE intermediaries)
1: In section RP 4(1) to whom section RD 22(3) or (4) (PAYE income payment forms for amounts of tax paid to Commissioner) applies to whom subsection (1B) applies
2: After section RP 4(1) Requirements for employers
1B: For the purposes of subsection (1), the employer must have, for the preceding tax year, a total gross amount of tax of less than $50,000 withheld under section RA 5(1)﻿(a) and (c) (Tax obligations for employment-related taxes) for—
a: PAYE income payments:
b: employer’s superannuation cash contributions. New employers
1C: For the purposes of the threshold amount in subsection (1B), an employer who is a new employer may estimate whether the total gross amount of tax for the tax year is likely to be less than the threshold amount. Commissioner’s discretion
1D: Despite subsection (1B), the Commissioner may regard the employer as continuing to meet the requirements of that subsection even though the total gross amount of tax exceeds the threshold amount if the excess relates to an amount that is not a recurring amount, for example, a redundancy payment or a payment on retirement.
3: In section RP 4(4)﻿(a)
4: In section RP 4
a: insert employer’s superannuation cash contribution employment income information gross tax year
b: delete employer monthly schedule
238: Sections RP 4 and RP 5 repealed
Repeal sections RP 4 RP 5
239: Section RP 8 replaced (Information required from employers)
Replace section RP 8
RP 8: Information for PAYE intermediaries
An employer must provide the information sought by a PAYE intermediary within the time agreed by the employer and intermediary. employer, PAYE intermediary
240: Section RP 14 amended (Collection, payment, and information requirements)
1:
2: Replace section RP 14(b)
b: provide the relevant employment income information to the Commissioner under subpart 3C
3: Repeal section RP 14(c)
4: In section RP 14(d) section 24 of the Tax Administration Act 1994 section 22AA
5: In section RP 14
a: insert employment income information
b: delete employer monthly schedule PAYE income payment form Section 240(1) repealed 18 March 2019 section 348 Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019
241: Section RZ 13 amended (Treatment of prepayments)
In section RZ 13 approved issuer levy approved issuer
242: New section RZ 14 inserted (Listed PAYE intermediaries: transitional provision)
After section RZ 13
RZ 14: Listed PAYE intermediaries: transitional provision
Despite the repeal of sections RP 4 and RP 5 sections 15H, 15G, 15I, 15M, 185C, and 185D amount, pay, PAYE intermediary
243: Section YA 1 amended (Definitions)
1: This section amends section YA 1
2: In the definition of asset
c: is defined in section HR 12(6)
3: Insert, in appropriate alphabetical order: ASX-listed Australian company
4: In the definition of bright-line date 2 years 5 years
5: In the definition of charitable purpose or not used for a purpose that is a charitable purpose other than under this paragraph or are used for a purpose that is a charitable purpose
6: In the definition of company
a: after paragraph (abb), insert:
abc: does not include a company that is acting in the capacity of trustee:
b: in paragraph (c), replace includes a group investment fund includes a trustee of a group investment fund
c: after paragraph (j), insert:
k: is defined in section HD 15(9)
7: In the definition of company dividend statement section 67 section 25G
8: Repeal the definition of conduct
9: In the definition of continuity provisions
bb: Section HA 6 (Corporate requirements); and
10: In the definition of controlled petroleum mining holding company
i: shares in petroleum miners that are companies:
11: In the definition of date of acquisition 2 years 5 years
12: Insert, in appropriate alphabetical order: decommissioning
a: dismantling, demolishing, or removing petroleum mining assets other than those referred to in section CT 6B(2)﻿(a) (Meaning of petroleum mining operations):
b: plugging and abandoning the following wells on a site, or former site, of petroleum mining operations:
i: a well (a commercial well
ii: an exploratory well that has been plugged and abandoned in a permit area together with a commercial well geologically contiguous with the exploratory well as part of an arrangement between the petroleum miner or farm-in party and another person who plugs and abandons wells in the permit area:
iii: a well used for water injection, water disposal, gas reinjection, or gas disposal in the commercial production of petroleum:
c: restoring a site, or former site, of petroleum mining operations other than a part of the site that has been used only for an activity referred to in section CT 6B(2)﻿(a):
d: the ongoing monitoring of—
i: a commercial well, exploratory well, or other well referred to in paragraph (b) that has been plugged and abandoned:
ii: a site or former site referred to in paragraph (c) that has been restored:
e: planning and managing an activity referred to in paragraphs (a) to (d)
13: Insert, in appropriate alphabetical order: detached tax credit section LB 3(8) sections HC 6 and RE 2
14: In the definition of dispose
15: In the definition of distinctive work clothing clothing) and section CW 17CC (Payment for distinctive work clothing) clothing)
16: In the definition of dwelling
a: in paragraph (a), replace place; but place:
b: in paragraph (b)﻿(vi), replace ground ground:
c: in paragraph (c), replace 2 years 5 years
17: In the definition of employee
a: in paragraph (ab), delete who has chosen under section RD 3(3) to treat amounts paid to them in the income year in their capacity as employee as income other than from a PAYE income payment
b: in paragraph (b), replace section RD 3(2) to (4) (PAYE income payments) section RD 3B or RD 3C (which relate to income other than PAYE)
18: In the definition of employee
d: is defined in section CW 26D (Meaning of employee) for the purposes of section CW 26C (Meaning of exempt ESS)
19: Insert, in appropriate alphabetical order: employee share scheme employee share scheme beneficiary
20: Repeal the definition of employer monthly schedule
21: Insert, in appropriate alphabetical order: employer’s workplace section CW 17CB(7B)
22: Repeal the definition of employing company
23: Replace the definition of employment income employment income
a: salary or wages to which section RD 3B or RD 3C (which relate to income other than PAYE) applies:
b: income, other than from a PAYE income payment, to which section RD 3B or RD 3C applies
24: Insert, in appropriate alphabetical order: employment income information section 23C
25: Replace the definition of end date end date
a: is defined in section HR 12(7)
b: is defined in section RA 15(3) (Payment dates for interim and other tax payments) for the purposes of that section
26: Insert, in appropriate alphabetical order: ESS deferral date sections RD 6 and RD 7B
27: Repeal the definition of established activity
28: Insert, in appropriate alphabetical order: exempt ESS
29: In the definition of exempt interest or CW 64 (Exemption under other Acts)
30: Repeal the definition of exemption certificate
31: Repeal the definition of existing farmer
32: Insert, in appropriate alphabetical order: farm-in party
33: Replace the definition of formation loss formation loss
a: means an amount of tax loss or a loss balance arising from a period before the entity became a PIE as described in sections HM 66 to HM 70 (which relate to the treatment of formation losses); and
b: includes a loss balance of a multi-rate PIE when the loss balance is carried forward under section HM 44(3) (Provisional tax calculation option) because the PIE—
i: has chosen for an income year to calculate its income tax liability using the provisional tax calculation option under section HM 44; and
ii: for the next corresponding tax year, chooses to use either the exit calculation option under section HM 42 (Exit calculation option) or the quarterly calculation option under section HM 43 (Quarterly calculation option) to calculate its income tax liability
34: In the definition of fully imputed RF 8, RF 10 RF 8, and RF 10
35: In the definition of goods and of services and services
36: In the definition of grandparented charity a charity a tax charity
37: In the definition of high-priced livestock for a acquisition price for an acquisition price
38: Replace the definition of income from employment
c: in sections DA 2(4) and DE 1, includes—
i: salary or wages to which section RD 3B or RD 3C (which relate to income other than PAYE) applies:
ii: income, other than from a PAYE income payment, to which section RD 3B or RD 3C applies
39: Repeal the definition of income from personal exertion
40: In the definition of land
41: Replace the definition of liabilities liabilities
a: is defined in section EZ 68 (Definitions) for the purposes of sections EZ 64 to EZ 67 (which relate to New Zealand Railways Corporation restructure):
b: is defined in section HR 12(6)
42: Insert, in appropriate alphabetical order: licensed non-bank deposit taker
43: Repeal the definition of listed PAYE intermediary
44: Insert, in appropriate alphabetical order: Lloyd’s of London
45: In the definition of look-through company
eb: for which an owner that is a trustee of a trust does not make a distribution to a company that is directly or indirectly a beneficiary of the trust, unless the company is—
i: a grandparented Maori authority for the entity:
ii: a tax charity that has no control or influence in relation to the operation of the entity and no control or influence in relation to the distributions of the trust; and
46: In the definition of member When unincorporated bodies hold certificates When unincorporated bodies have RWT-exempt status
47: Replace the definition of natural person natural person
a: does not include a natural person who is acting in the capacity of trustee:
b: is further defined in section FE 4 (Some definitions) for the purposes of subpart FE (Interest apportionment on thin capitalisation)
48: In the definition of net assets charities: taxation charities: treatment
49: Replace the definition of normal retiring age normal retiring age
50: In the definition of offered or was offered or entered into in sections EY 12 (Meaning of life reinsurance) and EY 48 (Non-resident life insurers with life insurance policies in New Zealand) in sections CR 3B YD 8B
51: In the definition of offshore RLWT person a person a person, other than a statutory trustee company
52:
53: Insert, in appropriate alphabetical order: payday
54: Repeal the definitions of PAYE income payment form PAYE income payment form period
55: In the definition of PAYE intermediary or 15G
56: Repeal the definition of period of restriction
57: In the definition of petroleum development expenditure
iib: expenditure that relates to an amount for which a deduction is allowed under section DT 7B
58: Repeal the definition of petroleum mining company
59: In the definition of principal settlor 2 years 5 years
60: In the definition of profit distribution plan share purchase agreement employee share scheme
61: Replace the definition of refundable tax credit refundable tax credit
62: Repeal the definition of related activity
63: Repeal the definition of removal or restoration operations
64: Insert, in appropriate alphabetical order: replacement employee share scheme
65: Insert, in appropriate alphabetical order: RWT-exempt status section RE 27
66: Repeal the definition of RWT exemption certificate
67: In the definition of RWT withholding certificate section 25 section 26C
68: In the definition of savings product policy payback of a payback of
69: In the definition of schedular income
j: income under section CR 3B
70: Repeal paragraph (b) of the definition of self-remission
71: In the definition of settlement 2 years 5 years
72: In the definitions of settlement of relationship property
73: In the definition of share
74: In the definition of share
g: is further defined in section CW 26F (Meaning of share) for the purposes of section CW 26C (Meaning of exempt ESS)
75: Repeal the definition of share purchase agreement
76: Repeal the definition of share purchase scheme
77: Insert, in appropriate alphabetical order: share scheme taxing date
78: In the definition of shareholder-employee salary, wages, or other income to which section RD 3(2) to (4) (PAYE income payments) applies —
i: salary or wages to which section RD 3B or RD 3C (which relate to income other than PAYE) applies:
ii: income, other than from a PAYE income payment, to which section RD 3B or RD 3C applies
79: Replace the definition of shareholder-employee shareholder-employee
a: salary or wages to which section RD 3B or RD 3C (which relate to income other than PAYE) applies:
b: income, other than from a PAYE income payment, to which section RD 3B or RD 3C applies
80: Repeal the definitions of specified activity specified activity net income specified activity net loss
81: In the definition of statutory trustee company is defined in means a trustee company defined in
82: Repeal the definition of subsidy claim form
83: In the definition of tax file number
b: specifically for the purposes of RWT-exempt status under section RE 27
84: In the definition of tax situation sections HZ 4B and HZ 4D (which relate to the transition of a qualifying company into a partnership or sole tradership) sections HZ 4B, HZ 4D, and HZ 4E (which relate to the transitional provisions for look-through companies)
85: In the definition of time bar sections 108 and 108B sections 108, 108A, and 108B
86: In the definition of trustee
f: is defined in section CW 26G (Meaning of trustee) for the purposes of section CW 26C (Meaning of exempt ESS)
87: Insert, in appropriate alphabetical order: unused specified activity net loss section 148
a: existed at the close of the 2017–18 income year; and
b: had not been included in the tax loss for the 2017–18 tax year or for an earlier tax year
88: Subsections (42), (44), (50), and (69) apply for a life insurance premium that is derived on or after 1 April 2017 by Lloyd’s of London.
89: Subsection (9) applies for the 2017–18 and later income years.
90: Subsections (8), (12), (27), (31), (32), (39), (40), (57), (58), (61), (62), (63), (80), and (87) apply for the 2018–19 and later income years.
91: Subsections (4), (11), (16), (59), and (71) apply to a person’s disposal of residential land if the date that the person first acquires an estate or interest in the residential land is on or after the date on which the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 receives the Royal assent.
92: Despite subsection (91), subsections (4), (11), (16), (59), and (71) do not apply to a person’s disposal of a freehold estate in residential land that the person acquired as the owner of a leasehold estate with a perpetual right of renewal, if the person was granted the leasehold estate before 29 March 2018.
93: Despite subsection (91), subsections (4), (11), (16), (59), and (71) do not apply to a person’s disposal of an estate or interest in residential land that the person acquired as the result of the completion of a land development or subdivision, if before 29 March 2018 the person entered into the agreement under which they acquired the estate or interest upon the completion of the land development or subdivision. Section 243(52) repealed 18 March 2019 section 349(1) Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 Section 243(92) inserted 18 March 2019 section 349(2) Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 Section 243(93) inserted 18 March 2019 section 349(2) Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019
244: New section YA 5 inserted (General rule: capacity of trustees)
After section YA 4
YA 5: General rule: capacity of trustees
Trustees acting in separate capacity
1: A person who is acting as a trustee of a trust is acting in a capacity that is separate from their other capacities. Other capacities
2: The other capacities of the person referred to in subsection (1) may include—
a: their personal capacity:
b: their capacity as a body corporate that is a legal person:
c: their capacity as a trustee of another trust or as an agent. agent, trustee
245: Section YC 4 amended (Look-through rule for corporate shareholders)
1: In section YC 4(1) is or is treated as having has or is treated as having
2: Subsection (1) applies for the 2008–09 and later income years.
246: Section YD 1 amended (Residence of natural persons)
1: In section YD 1(1) person who is not a company natural person
2: In section YD 1(2) person natural person
3: In section YD 1(3) person natural person
4: In section YD 1(4) person natural person
5: In section YD 1(5) person natural person
6: In section YD 1(6) person natural person
7: In section YD 1(7) person natural person
8: In section YD 1(8) person natural person
9: After section YD 1(11) Treatment of trustees
12: In this section, a natural person includes a natural person who is acting in the capacity of trustee.
10: In section YD 1
a: insert natural person trustee
b: delete company
247: Section YD 2 amended (Residence of companies)
1: After section YD 2(1) Treatment of trustees
1B: In this section, a company includes a company that is acting in the capacity of trustee.
2: In section YD 2 trustee
248: Section YD 4 amended (Classes of income treated as having New Zealand source)
In section YD 4 ss FB 2(2) s FB 2(2)
249: Section YD 6 amended (Apportionment of income from sea transport)
1: In section YD 6(3)﻿(b) exempt from income tax exempt from, or not liable to, income tax
2: Subsection (1) applies for the 2008–09 and later income years.
250: New section YD 8B inserted (Apportionment of life insurance premiums derived by Lloyd’s of London)
1: After section YD 8
YD 8B: Apportionment of life insurance premiums derived by Lloyd’s of London
What this section applies to
1: This section applies when—
a: a premium is paid under a life insurance policy; and
b: the premium is derived by Lloyd’s of London; and
c: the life insurance policy is described in subsection (4); and
d: the life insurance policy is offered or was offered or entered into within New Zealand. Ten percent of premium from source in New Zealand
2: Ten percent of the gross premium is treated as having a source in New Zealand and the remainder of the gross premium is treated as not having a source in New Zealand. Special rules
3: The following provisions apply in relation to taxation of the 10% amount:
a: Lloyd’s of London is denied a deduction for expenditure or loss incurred, under section DW 3B
b: sections HD 3 (Agents’ duties and liabilities), HD 17B HR 13 Types of life insurance policies
4: The life insurance policy referred to in subsection (1) is a life insurance policy that—
a: is made available to the general public; and
b: is not a profit participation policy or a savings product policy or both; and
c: does not provide for a benefit that is an annuity. deduction, income, income tax, life insurance policy, Lloyd’s of London, offered or was offered or entered into, pay, premium, profit participation policy, return of income, savings product policy, source in New Zealand
2: Subsection (1) applies in relation to a life insurance premium that is derived on or after 1 April 2017 by Lloyd’s of London.
251: Schedule 1 amended (Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe benefits)
1: In schedule 1, part A, after clause 10
11: Schedular taxable income: life insurance premiums derived by Lloyd’s of London
The basic rate of income tax for a person on each dollar of the person’s schedular taxable income that is income under section CR 3B
2: In schedule 1
a: in clause 3 section 25A section 26B
b: in clause 3 0.330 0.450
c: in clause 4 0.33 0.45
3: Subsection (1) applies in relation to a life insurance premium that is derived on or after 1 April 2017 by Lloyd’s of London.
252: Schedule 2 amended (Basic tax rates for PAYE income payments)
1: In schedule 2 RD 14,
2: In schedule 2, part A, clause 2 under section 24B(3) referred to in schedule 5, part A, clause 4, row 1
3: In schedule 2, part A, clause 3 section 24B(3) section 24B(3B)
4: Replace schedule 2, part A, clause 3
3: Non-notified tax code
If an employee’s tax code is a non-notified tax code under section 24E
5: In schedule 2, clauses 4 to 8 section 24B(3) section 24C
6: In schedule 2, clause 7 casual agricultural worker casual agricultural employee
7: In schedule 2, clause 9 section 24B(3)﻿(bb) section 24C
8: In schedule 2, part B, table 1, insert in correct numerical order: This table amends schedule 2, part B, table 1 in the principal Act Row Condition Tax rate 1B Section RD 10(2C) 0.105 5 Section RD 10(2D) applies. 0.450
253: Schedule 6 amended (Prescribed rates: PIE investments and retirement scheme contributions)
1: In schedule 6 amount of interest referred to in row 4 amount of interest referred to in row 6
2: Subsection (1) applies for the 2012–13 and later income years.
254: Schedule 25 amended (Foreign investment funds)
In schedule 25 DN 6, ED 2B,
255: Schedule 31 amended (Annualised equivalent amount for Part M)
1: In schedule 31 annualised amounts Amount does not exceed $42,700 Amount exceeds $42,700 but does not exceed $44,000
2: In schedule 31 annualised amounts $42,700
256: Schedule 32 amended (Recipients of charitable or other public benefit gifts)
1: In schedule 32 Byond Disaster Relief New Zealand Flying for Life Charitable Trust Médecins Sans Frontières New Zealand Charitable Trust Tony McClean Nepal Trust Zimbabwe Rural Schools Library Trust
2: In schedule 32 The World Swim for Malaria Foundation (New Zealand) Against Malaria Foundation (New Zealand)
3: In schedule 32 Destiny Rescue Charitable Aid Trust Child Rescue Charitable Trust
4: Subsection (1) applies for the 2017–18 and later income years.
257: Schedule 36 amended (Government enterprises)
In schedule 36 Animal Control Products Limited Kordia Group Limited
258: Consequential amendments to Income Tax Act 2007 related to trustee capacity
The Income Tax Act 2007 schedule 1
259: Consequential amendments to other enactments related to tax administration
The enactments referred to in schedule 2 2019-04-01 Companies Act 1993 See s 2(37) 2019-04-01 Education Act 1989 See s 2(37) 2019-04-01 Housing Restructuring and Tenancy Matters Act 1992 See s 2(37) 2019-04-01 Insolvency Act 2006 See s 2(37) 2019-04-01 New Zealand Superannuation and Retirement Income Act 2001 See s 2(37) 2019-04-01 Veterans’ Support Act 2014 See s 2(37)
3: Amendments to Tax Administration Act 1994
260: Tax Administration Act 1994
Part 3 Tax Administration Act 1994 2018-03-29 Tax Administration Act 1994 See s 2(1) and amends noter’s paper notes for commencement at date of assent, and s 2(3)-(32) for deemed amendments effective at date of assent. 2018-09-29 Tax Administration Act 1994 See s 2(34) 2018-04-01 Tax Administration Act 1994 See s 2(35) 2019-04-01 Tax Administration Act 1994 See s 2(37) 2020-04-01 Tax Administration Act 1994 See s 2(38)
261: Section 3 amended (Interpretation)
1: This section amends section 3(1)
2: Insert, in appropriate alphabetical order: contact address schedule 3, tables 1 and 2, schedule 4, tables 2 and 3, and schedule 6, table 1
3: Repeal the definition of dividend treated as interest
4: In the definition of employee section 46(7) section 23L(6)
5: Insert, in appropriate alphabetical order: employment income information section 23C subpart 3C, sections 23, 36, 47, 80D, 124Q, 139A
6: Insert, in appropriate alphabetical order: ESS deferral date section CE 2(9)
7: In the definition of exempt person section 27(1) section 27(2)
8: Repeal the definition of exempt person
9: In the definition of gift-exempt body
b: any other person who has RWT-exempt status following an application made under section 32E(2)﻿(k) or (l) in relation to a tax year in which they have that status
10: Insert, in appropriate alphabetical order: investment income section 25C subpart 3E, sections 142G, and 227E, and schedule 6 investment income information section 25D subpart 3E sections 32H, 57, 57B, 139AA, 142G, and 227E, schedule 6 sections RA 11, RA 12, and RM 8
11: Insert, in appropriate alphabetical order: natural person
a: does not include a natural person who is acting in the capacity of trustee:
b: for the purposes of sections 177 and 177A, includes a natural person who is acting in the capacity of trustee
12: Repeal the definition of non-exempt person
13: Insert, in appropriate alphabetical order: payday subpart 3C and schedule 4
14: In the definition of payment in sections 67 and 120U in section 120U, and for the purposes of section 25G schedule 6, table 1, row 18
15: Insert, in appropriate alphabetical order: payroll software section 23P section 23F
16: Repeal the definition of reconciliation statement
17: In the definition of record section 26 section 22AAB
18: In the definition of record holder and section 26
19: Replace the definition of registered person registered person
20: In the definition of responsible department sections 24F and 24IB section 24D
21: Repeal the definition of RWT exemption certificate
22: Repeal the definitions of special tax code certificate special tax code notification
23: Insert, in appropriate alphabetical order: START tax type
a: GST:
b: FBT:
c: RWT:
d: NRWT:
e: approved issuer levy:
f: RLWT:
g: gaming-machine duty:
h: income tax liability of portfolio investment entities to which section HM 42 or HM 43 of the Income Tax Act 2007 applies
24: In the definition of tax
25: Insert, in appropriate alphabetical order: tax code section 24B(1)
26: Repeal the definitions of tax code certificate tax code notification
27: In the definition of tax position
28: Replace the definition of tax shortfall tax shortfall
a: the difference between the tax effect of a taxpayer’s tax position for the return period and the correct tax position for that period, when the taxpayer’s tax position—
i: results in too little tax paid or payable by the taxpayer or another person:
ii: overstates a tax benefit, credit, or advantage of any type or description whatever by or benefiting the taxpayer or another person; but
b: for a person that has taken a tax position for section 46(6B) (the tax position Section 261(5) amended 1 April 2019 section 350 Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019
262: Section 14G amended (Contact addresses)
In section 14G
2: For the purposes of the delivery of income information, a person’s contact address is the address described in subsection (1)﻿(a) to (c).
263: Section 15C amended (PAYE intermediaries and listed PAYE intermediaries)
Section 263 repealed 18 March 2019 section 346 Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019
264: Section 15F amended (Fitness of applicants)
In section 15F(2) ; or ; and
265: Sections 15G, 15H, and 15I repealed
Section 265 repealed 18 March 2019 section 346 Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019
266: Section 15J amended (Employers’ arrangements with PAYE intermediaries)
Section 266 repealed 18 March 2019 section 346 Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019
267: Section 15L amended (Amended monthly schedules)
1: In section 124Q Amended employment income information
2: In section 124Q make an amended monthly schedule relating to the employee and a pay period provide the amended employment income information relating to the employee and a payday Section 267(1) amended 1 April 2019 section 351 Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 Section 267(2) amended 1 April 2019 section 351 Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019
268: Section 15M repealed (Subsidy claim forms)
Section 268 repealed 18 March 2019 section 346 Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019
269: New subpart heading inserted (Commissioner’s powers to obtain information)
Replace the cross-heading before section 16 Subpart 3A—Commissioner’s powers to obtain information
270: New subpart heading inserted (Taxpayers’ obligations to keep records)
Replace the cross-heading before section 21B Subpart 3B—Taxpayers’ obligations to keep records
271: Section 22 amended (Keeping of business and other records)
Section 271 repealed 18 March 2019 section 346 Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019
272: New section 22AA inserted (Records to be kept by employers and PAYE intermediaries)
After section 22
22AA: Records to be kept by employers and PAYE intermediaries
1: An employer who makes a PAYE income payment to an employee must keep proper records in English relating to the payment, the amount of tax withheld for the payment, and the other items of information set out in schedule 3, table 1
2: A person acting as a PAYE intermediary for an employer must keep proper records relating to their activity as a PAYE intermediary in relation to an employee of the employer.
3: An employer or PAYE intermediary must take reasonable steps to ensure the safe-keeping of their records for a period of not less than 7 years after the making of the payments to which the records relate, except to the extent to which—
a: the Commissioner has notified the employer or PAYE intermediary that retention is not required; or
b: the employer or PAYE intermediary has delivered the records to the Commissioner as required by this Act or the Income Tax Act 2007.
4: On application by the person, the Commissioner may authorise the keeping of records under this section in a language other than English.
273: New section 22AAB inserted (Records to be kept by payers of passive income)
Before section 22A
22AAB: Records to be kept by payers of passive income
1: This section applies when a person—
a: is liable under the RWT rules to withhold RWT for resident passive income paid to or derived by another person:
b: is liable under the NRWT rules to withhold NRWT for non-resident passive income paid to or derived by another person.
2: The person must keep proper records in English relating to the income paid by them, and RWT or NRWT withheld by them, or liable to be withheld by them, sufficient to enable the Commissioner to ascertain readily at any time the information set out in schedule 3, table 2
3: A person referred to in subsections (1) and (2) must take reasonable steps to ensure the safe-keeping of their records for a period of not less than 7 years after the making of the payments to which the records relate, except to the extent to which—
a: the Commissioner has notified the person that retention of the records is not required; or
b: the records are required by law to be delivered to a person other than the Commissioner; or
c: the person is a company that has been liquidated.
4: The Commissioner may, before the end of the 7-year period referred to in subsection (3), notify the person that they are required to retain records specified by the Commissioner for a further period of up to 3 years after the end of the 7-year period if—
a: the affairs of the person are or have been under audit or investigation by the Commissioner; or
b: the affairs of a person to whom the records relate are or have been under audit or investigation by the Commissioner; or
c: the Commissioner intends to conduct, or is actively considering, an audit or investigation before the end of the extended retention period.
5: On application by the person, the Commissioner may authorise the keeping of records under this section in a language other than English.
274: Section 23 amended (Keeping of returns where information transmitted electronically)
Replace section 23(2)
2: This section does not require the retention of—
a: a return for which the Commissioner has given notice that retention is not required; or
b: a return of a company that has been liquidated; or
c: employment income information that has been provided to the Commissioner.
275: New subpart 3C inserted (Employment income information)
After section 23
3C: Employment income information
23B: Employment income information: outline of provisions
1: This subpart sets out—
a: what is meant by employment income information for reporting purposes:
b: when employment income information must be provided to the Commissioner and how it must be delivered:
c: the information that must be provided for new and departing employees:
d: the rules for the correction of errors.
2: For the purposes of this subpart, an employer includes a PAYE intermediary, as the context requires.
3: For the provisions related to—
a: the making of regulations, see
b: late filing penalties, see
c: non-electronic filing penalties, see
d: employers’ withholding payment penalties, see
e: the application of the penalties provisions to PAYE intermediaries, see
f: the recovery of tax from employers or PAYE intermediaries, see
23C: Meaning of employment income information
1: Employment income information schedule 4, tables 1 to 3
a: an employer to whom section RD 22 sections 23E to 23H and 23K to 23M
b: an employee to whom section RD 4(4) section 23I
2: The Commissioner must prescribe 1 or more electronic forms and 1 or more means of electronic communication by which employment income information must be delivered by an employer for the purposes of this subpart.
3: The requirements relating to a form or a means of communication may relate to an employer or a class of employers, and may be subject to the conditions specified by the Commissioner, whether generally or in a specific case.
4: For the purposes of the delivery of employment income information, a requirement to deliver the information twice-monthly means that, in determining the date on which the information may be delivered, a payment or benefit is treated as being paid or received on a day in or, at the latest, by the last day of—
a: the first payment period in a month when the relevant day falls between the 1st and 15th days of the month; or
b: the second payment period in a month when the relevant day falls between the 16th and last day of the month.
23D: Employers’ groups for delivery of information
1: For the delivery of employment income information to the Commissioner, an employer is included in 1 of the following groups of employer, according to the circumstances applying to the employer:
a: the online group; or
b: the non-electronic group, if they meet the requirements of section 23F section 23G
c: the new group, if they meet the requirements of section 23H
2: For the delivery of employment income information,—
a: a PAYE intermediary is included in the online group:
b: an employer who delivers employment income information electronically, whether through a service or platform provided by the Commissioner or through the use of payroll software, is included in the online group.
3: Despite sections 23E to 23H and 23L
4: Despite subsections (1) and (2) and the means of delivery set out in sections 23E to 23H
a: give consent with terms and conditions:
b: vary the terms and conditions:
c: cancel the consent at any time.
23E: Online group of employers
1: An employer is included in the online group
a: the non-electronic group; or
b: the new group.
2: An employer in the online group must deliver their employment income information for a payday—
a: in electronic form and by means of an electronic communication as prescribed by the Commissioner; and
b: within 2 working days after payday.
23F: Non-electronic group of employers
1: An employer is included in the non-electronic group
a: meets either of the requirements set out in subsection (5) or has an exemption under section 23G
b: does not deliver their employment income information electronically, whether through a service or platform provided by the Commissioner or through the use of payroll software; and
c: is not included in the new group.
2: An employer in the non-electronic group must deliver their employment income information for a payday—
a: in a format prescribed by the Commissioner; and
b: within 10 working days after payday.
3: For the purposes of subsection (2)﻿(b), an employer in the non-electronic group may choose to treat the payday as—
a: the day on which the employer makes a PAYE income payment to an employee; or
b: 1 of the following, as applicable:
i: for an amount paid or benefit provided between the 1st and 15th days of a month, the 15th of the month; and
ii: for an amount paid or benefit provided between the 16th and last day of the month, the last day of the month.
4: An employer who chooses to use, as a payday, a day referred to in subsection (3)﻿(b)﻿(i) or (ii), must deliver the employment income information set out in schedule 4, table 1, rows 4 to 6 for each payment made or benefit provided in the relevant period.
5: The requirements are that, for a tax year and an amount of tax for a PAYE income payment and an employer’s superannuation cash contribution,—
a: an employer other than an employer referred to in paragraph (b), must have gross amounts of tax payable for the preceding tax year that are below the threshold amount:
b: a new employer must have total accumulated amounts of tax that are below the threshold amount.
6: The threshold amount referred to in subsection (5) is—
a: $50,000; or
b: the amount set by the Governor-General by Order in Council under subsection (8).
7: If the accumulated amount referred to in subsection (5)﻿(b) reaches the threshold amount during a tax year, the employer is included in the new group for the remaining months of the 6-month period referred to in section 23H(2)
8: The Governor-General may, on the recommendation of the Minister of Revenue, make an Order in Council setting or amending the threshold amount referred to in subsection (6)﻿(b). Before making the recommendation, the Minister must undertake consultation on the proposed amendment that is appropriate and reasonable for the purposes of this section.
23G: Exemption for certain employers in online group
1: The Commissioner may exempt an employer in the online group from the online group requirements if it is reasonable in the circumstances, taking into account—
a: the nature and availability of digital services to the employer, including the reliability of those services for the purposes of the employer; and
b: the capability of the employer relating to the use of computers; and
c: the costs that the employer would incur in complying with the requirements if those costs would be unreasonable in the circumstances.
2: The Commissioner must provide a statement of reasons for the exemption.
3: Subject to subsection (4), an exemption under this section remains valid until the Commissioner notifies the employer that the exemption is to be cancelled. The exemption expires on the date that is 6 months after that given in the Commissioner’s notice.
4: In making an exemption under this section, the Commissioner may set a time limit on the exemption, stating a start date and an end date, as applicable, for the exemption and the reason for setting the limit.
5: An exemption under this section is neither a legislative instrument nor a disallowable instrument for the purposes of the Legislation Act 2012 and does not have to be presented to the House of Representatives under section 41 of that Act.
23H: New group of employers
1: An employer is included in the new group
2: The new-employer period is the 6-month period that starts on the date in the tax year on which the employer starts employing employees.
3: An employer in the new group may choose to deliver their employment income information for a payday in the new-employer period—
a: in a format prescribed by the Commissioner; and
b: within 10 working days after payday.
4: Despite subsection (3)﻿(b), if an employer in the new group meets the requirements of section 23F(1)﻿(a) and (b) section 23F(3) and (4)
5: If an employer in the new group chooses to deliver their employment income information electronically, whether through a service or platform provided by the Commissioner or through the use of payroll software, the employer is immediately included in the online group.
23I: Employment income information requirements for employees
An employee who is required to provide employment income information relating to a PAYE income payment to the Commissioner under section RD 21(1)﻿(a)
23J: Delivery of employment income information for certain special payments
1: This section applies for the purposes of sections 23E to 23H
a: a schedular payment described in section RD 8 of the Income Tax Act 2007:
b: a payment made to a person on a shadow payroll:
c: a payment that an employer makes to an employee outside the regular payment cycle for the employee’s employment income.
2: For a schedular payment referred to in subsection (1)﻿(a), an employer may deliver their employment income information relating to the payment either—
a: on a payday basis under sections 23E to 23H
b: twice-monthly as described in section 23C(4)
3: For a payment referred to in subsection (1)﻿(b), a non-resident employer has 20 days after an amount is paid to the person before the requirement to provide employment income information arises. The employer may—
a: treat the 20th day as the payday for the purposes of sections 23E to 23H
b: provide their employment income information relating to the payment twice-monthly as described in section 23C(4), treating the 20th day as the relevant day.
4: For an out-of-cycle payment referred to in subsection (1)﻿(c), an employer may deliver their employment income information relating to the payment either—
a: on a payday basis under sections 23E to 23H
b: together with their information for the employer’s next regular reporting date for the delivery of information relating to the employee.
5: Despite subsection (4), if the next regular reporting date referred to in subsection (4)﻿(b) falls after the employer’s end date for the payment, as described in section RA 15(3)﻿(a) and (b) of the Income Tax Act 2007, and would mean that, for reconciliation purposes, the information relating to the payment and the employee would appear to be reported as if the payment related to a later period, the employer must treat the payment as if it were made on a date that is not later than the end date.
6: For the purposes of subsection (1)﻿(b), a payment made to a person on a shadow payroll is a PAYE income payment paid by a non-resident employer to a person who undertakes employment services in New Zealand but who remains on the employer’s payroll system in a country or territory outside New Zealand.
7: Section 23F(3)﻿(b) and (4)
23K: Employment income information requirements relating to employee share schemes
1: For the purposes of sections 23E to 23H
a: treat the ESS deferral date as the payday; or
b: provide their employment income information twice-monthly as described in section 23C(4)
2: For reporting purposes,—
a: employment income information does not include information on—
i: a benefit under an employee share scheme received by a former employee if the employer has not chosen to withhold an amount of tax in relation to the benefit:
ii: a benefit arising under an exempt ESS:
b: for a benefit that an employee receives under an employee share scheme, employment income information includes the value of the benefit, and if the employer has chosen under section RD 7B
23L: Employment income information for new and departing employees
1: When an employee starts employment with an employer, the employer must provide the information referred to in schedule 4, table 2
2: When an employee’s employment ends, the employer must provide the information referred to in schedule 4, table 3
3: The information referred to in subsection (1) about new employees must be delivered to the Commissioner by the date on which the employer is required to deliver employment information for the employee’s first payday or, if the employer chooses, at an earlier time.
4: The information referred to in subsection (2) about departing employees must be delivered to the Commissioner by the date on which the employer is required to deliver employment income information for the payday on which the employee was last paid or, if the employer chooses, at an earlier time.
5: Despite subsections (1) to (4), if information about the relevant employee is delivered to the Commissioner as part of electronic payday reporting that includes income information about the employee, the only additional information required from the employer is,—
a: for a new employee, schedule 4, table 2, rows 5, 6, 7, and 10
b: for a departing employee, schedule 4, table 3, row 5
6: In this section, employee
23M: Employment income information when employment ended
An employer who stops employing employees, intending that the cessation is permanent, must notify the Commissioner that employment has ended within 30 working days after the date on which they stop employing employees.
23N: Correction of errors
1: This section provides a regulation-making power for matters relating to the correction of errors in employment income information and the manner in which corrections may be made.
2: The Governor-General may, by Order in Council on the recommendation of the Minister of Revenue, make regulations, providing—
a: the nature and type of errors that are able to be corrected by an employer:
b: the manner in which errors in employment income information may be corrected, and the specifications for the correction of particular errors in employment income information:
c: the periods to which corrections may relate, including past periods and future periods.
3: Before making a recommendation under subsection (2), the Minister must undertake consultation on the proposed regulation that is appropriate and reasonable for the purposes of this section.
23O: Setting electronic and non-electronic filing requirements
1: For the delivery of employment income information by an employer or a class of employers, the Commissioner—
a: must prescribe—
i: an electronic form and means of electronic communication:
ii: a form or mode of delivery other than by electronic means:
b: may from time to time set specifications for payroll software for use in the delivery of that information.
2: To enable the processing of a payment made to the Commissioner by an employer in relation to an employee, the Commissioner may notify an employer, or a class of employers, that certain items of employment income information must accompany the payment.
23P: Employment income information: payroll software
For the purposes of sections 23H(5) and 23O payroll software
23Q: Employment income information: variation of requirements
The Commissioner may vary the requirements set out in this subpart and schedule 4
276: Cross-heading and section 24 repealed
Repeal the cross-heading before section 24 and section 24
277: Cross-heading and section 24BA repealed
Repeal the cross-heading before section 24BA and section 24BA
278: Section 24B amended (PAYE tax codes)
1: In section 24B(3) section 24BA(1D) subsection (3C)
2: In section 24B(3)﻿(c) annual income is not annual income is more than $14,000 but not
3: After section 24B(3B)
3C: Despite subsections (3) and (3B), an employee who is a non-resident seasonal worker under the recognised seasonal employer (RSE) instructions has a tax code of NSW
279: Sections 24B to 24IB replaced
Replace sections 24B to 24IB
3D: Tax codes and tax rates for certain payments
24B: PAYE tax codes
1: For the purposes of the PAYE rules, a tax code
a: a code applying to an employee’s earnings set out in the table in schedule 5, part A section 24C
b: a tax code provided by the Commissioner under section 24D
c: a tax code provided under schedule 5, part B, clause 3
d: a non-notified tax code under section 24E
2: A tax code does not apply in relation to—
a: a schedular payment, see sections 24F, 24G, and 24H, and schedule 5, part C
b: an extra pay, see sections RD 7 and RD 17
3: The amount of tax for a payment of an income-tested benefit is determined under section RD 11(3) of the Income Tax Act 2007.
4: The basic tax rates for payments of salary or wages for particular tax codes, including a non-notified tax code, are set out in the Income Tax Act 2007, schedule 2, part A.
24C: Notified tax codes
1: An employee must notify their employer of the tax code applicable to their circumstances or of a change in their tax code. The notification must be in a form authorised by the Commissioner.
2: This section does not apply in relation to—
a: a tax code provided by the Commissioner to the employer under schedule 5, part A, clause 2(2):
b: a tax code for a non-resident seasonal worker under schedule 5, part B, clause 3.
24D: Tax codes provided by the Commissioner
An employee may apply to the Commissioner for—
a: a special tax code under schedule 5, part B, clause 1
i: their New Zealand superannuation income or veteran’s pension income; or
ii: their other employment income from 1 or more employers:
b: a tax code under schedule 5, part B, clause 2
24E: Non-notified tax codes
1: An employee, other than a person referred to in section 24D
a: the employee has not notified their employer of—
i: their name; and
ii: their tax file number; and
iii: their tax code; and
b: the Commissioner has not provided the employer with a tax code or change in tax code under schedule 5, part A, clause 3
c: the employee is not a non-resident seasonal worker referred to in schedule 5, part B, clause 3
2: For the purposes of subsection (1)﻿(a)﻿(i), a person’s name is their full name that is sufficient to enable the Commissioner to ascertain a correct tax file number for the person.
24F: Rates of tax for schedular payments: standard, payee, and set rates
1: In this section, and sections 24G, 24H, and 24I schedule 5, part C
a: a person who is making a schedular payment is referred to as the payer
b: a person who is entitled to receive a schedular payment is referred to as the payee
2: The standard rates of tax for schedular payments are set out in schedule 4 of the Income Tax Act 2007.
3: A payee may choose the rate of tax for the payment under schedule 5, part C, clause 3 see
4: If a payee has a liability under the Inland Revenue Acts that has not been met, the Commissioner may, from time to time, set a rate of tax for a schedular payment of the payee under schedule 5, part C, clause 4
24G: Special tax rates for schedular payments
A payee, other than a non-resident entertainer, may apply to the Commissioner, under schedule 5, part C, clause 5
24H: Exempt schedular payments
1: The Commissioner may notify a payee under schedule 5, part C, clause 6
2: This section does not apply to—
a: a payment made to a non-resident entertainer:
b: a payment described in schedule 4, part J of the Income Tax Act 2007 that is made to a payee who is a New Zealand resident.
24I: Notification requirements
1: A payee, other than a non-resident entertainer, must notify the payer of their name and tax file number. The notification must be in a form authorised by the Commissioner.
2: The payee must also notify the payer of the rate of tax applying to the payment if—
a: they choose the rate of tax as described in section 24F(3)
b: they are using a rate of tax set by the Commissioner under section 24F(4)
c: they are using a special rate of tax referred to in section 24G
24IB: Variation of requirements
The Commissioner may vary the requirements of section 24B schedule 5, part A, clause 4
280: Cross-heading and section 24J repealed
Repeal the cross-heading before section 24J and section 24J
281: Section 24K amended (Certain information required in returns)
1: Renumber section 24K section 56B
2: In section 56B
a: in subsection (3)﻿(a), replace section 67 section 25G
b: in subsection (5), replace section 68B section 25I
282: Sections 24L, 24LB, 24LC, 24M, 24N, and 24P repealed
Repeal sections 24L 24LB 24LC 24M 24N 24P
283: Cross-heading and section 24Q amended
Section 283 repealed 18 March 2019 section 346 Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019
284: New heading inserted (RWT rates, certificates, and records)
Replace the cross-heading before section 25A Subpart 3E—RWT rates, certificates, and records
285: Section 25A amended (Use of inconsistent RWT rates)
1: Renumber section 25A section 26B
2: Section 285(2) repealed 18 March 2019 section 352 Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019
286: Section 25 amended (RWT withholding certificates)
1: In section 25(2) the tax deduction certificate the RWT withholding certificate
2: Renumber section 25 section 26C
3: Replace section 26C(1)
1: Subsection (1B) applies for a tax year when a payer withholds RWT for resident passive income for the following amounts paid to or derived by a payee who has not provided the payer with their tax file number:
a: interest:
b: a dividend treated as interest:
c: a dividend to which section RE 9(2) of the Income Tax Act 2007 applies.
4: In section 26C(4) a person who continues to hold an RWT exemption certificate issued to that person a person with RWT-exempt status
5: In section 26C(5)
a: replace a person holding an RWT exemption certificate issued to that person a person with RWT-exempt status
b: replace notwithstanding such cessation in holding an RWT exemption certificate despite the ending of the person’s RWT-exempt status
287: New subpart 3E inserted (Investment income information)
Insert before section 26
3E: Investment income information
25B: Investment income information: outline of provisions
1: This subpart sets out the information that a person who makes a payment of investment income is required to provide to the Commissioner and, in particular,—
a: what is meant for reporting purposes by investment income and investment income information:
b: who must provide investment income information to the Commissioner:
c: when investment income information must be provided and how it must be delivered:
d: when information is required in relation to certain types of investment:
e: the correction of errors:
f: when information may be filed in non-electronic form.
2: In this subpart, and in schedule 6
a: a person who makes a payment of investment income is called the payer
b: a person who derives or receives a payment of investment income is called the payee
3: For the provisions related to—
a: the use of inconsistent RWT rates, see section 26B
b: RWT withholding certificates, see section 26C
c: shareholder dividend statements, see section 29
d: Maori authority notices, see
e: notification requirements for multi-rate PIEs, see
f: further requirements for multi-rate PIEs, see
g: non-electronic filing penalties, see section 139AA
25C: Investment income
For the purposes of this subpart and section 227E, and schedule 6 investment income
a: resident passive income under section RE 2(1)﻿(a) to (c) of the Income Tax Act 2007, subject to the withholding obligations set out in sections RE 3 and RE 4 of that Act:
b: non-resident passive income under section RF 2(1) of that Act:
c: attributed income of investors in portfolio investment entities under sections CP 1, CX 56, and CX 56B of that Act.
25D: Investment income information
1: Investment income information schedule 6, table 1 section 25E section 22AAB
2: The information must be provided for each relevant reporting period rather than on a cumulative basis.
3: If an investment is owned jointly by 2 or more investors, and the payer of the investment income holds the relevant information, the payer must include in their investment income information the information set out in schedule 6, table 1, row 16
4: Subsection (3) does not apply to a payer in relation to a payment to or for joint owners that is received in their capacity as—
a: beneficiaries of a trust:
b: shareholders in a company:
c: partners in a partnership, unless the partners are not required to file a separate return.
5: Despite subsection (1), if the following items of information have been obtained before 1 April 2018, the requirement to include the item in investment income information provided to the Commissioner applies only when it is held in electronic form:
a: a person’s date of birth:
b: for joint owners, the names, tax file numbers, dates of birth, and contact addresses.
25E: Who must provide investment income information to Commissioner
1: The persons who must provide their investment income information to the Commissioner by the relevant date set out in this subpart are—
a: a person who is required to withhold an amount of tax for a payment of interest, see section 25F
b: a person who chooses under section 32M to pay approved issuer levy in relation to a debt, other than a debt in relation to which the interest payments are administered by an offshore paying agent:
c: a company that pays a taxable dividend to a person, including a dividend described in section RE 9 of the Income Tax Act 2007, see section 25G
d: a person who pays a royalty to a non-resident person, see section 25H
e: a Maori authority that makes a taxable distribution to a member of the authority, other than a retirement scheme contribution, see section 25I
f: a multi-rate PIE, other than a superannuation fund or retirement savings scheme, that attributes income to an investor or a proxy for an investor, see section 25J
g: a multi-rate PIE that is a superannuation fund or retirement savings scheme that attributes income to an investor or a proxy for an investor, see section 25K
h: a public unit trust that pays an amount that is treated as a taxable dividend on a withdrawal from the trust, see section 25L
i: an emigrating company that is treated under section FL 2 of the Income Tax Act 2007 as paying a dividend to shareholders, see section 25M
j: a person who would be liable to pay an amount referred to in paragraph (a) but for the circumstances described in subsection (2).
2: The circumstances referred to in subsection (1)﻿(j) are that a person who pays interest for which RWT is not required to be withheld because—
a: the amount—
i: is not paid by the person in the course or furtherance of a taxable activity; or
ii: is an amount to which section RE 10 of the Income Tax Act 2007 applies; and
b: the amount is allowed as a deduction under that Act; and
c: the amount is paid to a person other than a person with RWT-exempt status.
25F: Information on interest
1: A payer referred to in section 25E(1)﻿(a) and (b) schedule 6, table 1, rows 1 to 11, 16, 21, and 22
a: in electronic form and by means of an electronic communication as prescribed by the Commissioner; and
b: by the 20th of the month following the month in which the amount of investment income is paid to or derived by the payee.
2: Despite subsection (1), when an investor is a nominee, the investment income information required from a payer referred to in section 25E(1)﻿(b)
25G: Information on dividends
A payer referred to in section 25E(1)﻿(c) schedule 6, table 1, rows 1 to 11, 14, and 16 to 22
a: in electronic form and by means of an electronic communication as prescribed by the Commissioner; and
b: by the 20th of the month following the month in which the amount of investment income is paid to or derived by the payee.
25H: Information on royalties paid to non-residents
A payer referred to in section 25E(1)﻿(d) schedule 6, table 1, rows 1 to 11, 16, 21, and 22
a: in electronic form and by means of an electronic communication as prescribed by the Commissioner; and
b: by 31 May after the end of the tax year.
25I: Information on Maori authority distributions
A payer referred to in section 25E(1)﻿(e) schedule 6, table 1, rows 1 to 10, 15, 16, 21, and 22
a: in electronic form and by means of an electronic communication as prescribed by the Commissioner; and
b: by the 20th of the month following the month in which the amount of investment income is paid to or derived by the payee.
25J: Information on attributed PIE income: non-locked-in funds
A payer referred to in section 25E(1)﻿(f) schedule 6, table 1, rows 1 to 10, 12, 13, 14, 16, 21, and 22
a: in electronic form and by means of an electronic communication as prescribed by the Commissioner; and
b: by the following relevant date:
i: 15 May after the end of the tax year, if the PIE has a corresponding income year that does not end after the end of the tax year:
ii: the end of the second month after that in which the PIE’s corresponding income year ends, if the PIE has a corresponding income year that ends after the end of the tax year:
iii: the end of the third month after that in which the PIE loses PIE status, if the cessation occurs in the corresponding income year.
25K: Information on attributed PIE income: locked-in funds
A payer referred to in section 25E(1)﻿(g) schedule 6, table 1, rows 1 to 10, 12, 13, 14, 16, 21, and 22
a: in electronic form and by means of an electronic communication as prescribed by the Commissioner; and
b: by the following relevant date:
i: 30 June after the end of the tax year, if the PIE has a corresponding income year that does not end after the end of the tax year:
ii: the end of the second month after that in which the PIE’s corresponding income year ends, if the PIE has a corresponding income year that ends after the end of the tax year:
iii: the end of the third month after that in which the PIE loses PIE status, if the cessation occurs in the corresponding income year.
25L: Information from public unit trusts
A payer referred to in section 25E(1)﻿(h) schedule 6, table 1, rows 1 to 11, 14, 16, 21, and 22
a: in electronic form and by means of an electronic communication as prescribed by the Commissioner; and
b: by 15 May after the end of the tax year.
25M: Information from emigrating companies
A payer referred to in section 25E(1)﻿(i) schedule 6, table 1, rows 1 to 11, 14, 16, 21, and 22
a: in electronic form and by means of an electronic communication as prescribed by the Commissioner; and
b: within 3 months after the time of emigration.
25N: Information from payers with no withholding obligation
A payer referred to in section 25E(1)﻿(j) schedule 6, table 1, rows 4 to 8, 16, 21, and 22
a: in electronic form and by means of an electronic communication as prescribed by the Commissioner; and
b: with their return of income for the corresponding income year.
25O: Correction of errors in investment income information
An adjustment may be made under section RA 11 or RA 12
25P: Non-electronic filing of investment income information
1: Despite sections 25F to 25N
2: In determining whether to exempt a payer under subsection (1), the Commissioner must have regard to—
a: the nature and availability of digital services to the payer, including the reliability of those services for the purposes of the payer; and
b: the capability of the payer relating to the use of computers; and
c: the costs that the payer would incur in complying with the requirements, if those costs would be unreasonable in the circumstances.
3: Subject to subsection (4), an exemption under this section remains valid until the Commissioner notifies the payer that the exemption is to be cancelled. The exemption expires on the date that is 6 months after that given in the Commissioner’s notice.
4: In making an exemption under this section, the Commissioner may set a time limit on the exemption, stating a start date and an end date, as applicable, for the exemption and the reason for setting a time limit.
5: An exemption under this section is neither a legislative instrument nor a disallowable instrument for the purposes of the Legislation Act 2012 and does not have to be presented to the House of Representatives under section 41 of that Act.
25Q: Setting electronic and non-electronic filing requirements
For the delivery of investment income information, the Commissioner—
a: must prescribe—
i: an electronic form and means of electronic communication:
ii: a form or mode of delivery other than by electronic means:
b: may from time to time set specifications for software for use in the delivery of that information.
25R: Investment income information: variation of requirements
The Commissioner may vary the requirements set out in subpart 3E schedule 6
288: Section 26 repealed (Records to be kept for RWT purposes)
Repeal section 26
289: Section 27 amended (Provision of tax file numbers)
Repeal section 27(2)
290: Section 28B replaced (Notification of investors’ tax rates)
Replace section 28B
28B: Notification of investors’ tax file numbers
1: An investor in a multi-rate PIE must notify the PIE of their tax file number within 6 weeks of the date on which they become an investor in the PIE.
2: Subsection (1) does not apply to an investor who—
a: is non-resident; and
b: does not have a tax file number; and
c: provides the equivalent of their tax file number for the country or territory where they reside for tax purposes, or a declaration if they are unable to provide this number.
3: Despite subsection (2), if an investor in a multi-rate PIE is a non-resident who becomes a resident, the investor must immediately notify the PIE that they have become resident. The 6-week period referred to in subsection (1) starts to run from the date of the notification of residency.
291: New subpart heading inserted (Statements, notices, and certificates)
Before section 29 Subpart 3F—Statements, notices, and certificates
292: Section 31B amended (Notification requirements for PIEs)
After section 31B(1)
1B: A multi-rate PIE choosing to calculate and pay its income tax liability under an option set out in section HM 42, HM 43, or HM 44 of the Income Tax Act 2007 must comply with the notice requirements for making the election set out in the relevant provision.
293: Section 32E amended (Applications for RWT exemption certificates)
1: In section 32E RWT exemption certificates RWT-exempt status
2: In section 32E(1) an RWT exemption certificate RWT-exempt status
3: In section 32E(2)﻿(k) and CW 63 and CW 64
4: After section 32E(2)﻿(kc)
kd: a tertiary education subsidiary that derives exempt income under section CW 55BA of the Income Tax Act 2007:
5: Subsection (3) applies for the 2008–09 and later income years.
294: Section 32G amended (Evidence of annual gross income and consequences of failure to meet threshold)
1: In section 32G(1) an RWT exemption certificate RWT-exempt status
2: In section 32G(4) had they not held an RWT exemption certificate had they not had RWT-exempt status
3: In section 32G(7) provide an RWT exemption certificate to, or allow it to be retained by provide RWT-exempt status to, or allow RWT-exempt status to be retained by
295: Section 32H replaced (Providing RWT exemption certificate when person meets requirements)
Replace section 32H
32H: RWT-exempt status when persons meet requirements
1: When a person who meets the requirements of section 32E
a: publish the person’s tax file number and the start date and, if applicable, the end date on the electronic register of persons with RWT-exempt status; and
b: notify the person of the issue of the status, and the start and end date, as applicable.
2: A person’s RWT-exempt status takes effect on the start date provided in the electronic register.
3: For the purposes of the provisions relating to investment income information, if a person has been issued with, or holds, or retains, or is allowed to retain, an RWT exemption certificate that remains current, they are treated as having RWT-exempt status if their details appear on the electronic register referred to in subsection (1).
296: Section 32I amended (Providing RWT exemption certificate to person who does not meet requirements)
1: In section 32I RWT exemption certificate RWT-exempt status
2: In section 32I(1) provide an RWT exemption certificate for a period, including an unlimited period, to a person who does not meet the requirements provide RWT-exempt status to the person when they do not meet the requirements
3: In section 32I(2) may not provide an RWT exemption certificate to a person may not provide RWT-exempt status to a person
4: Repeal section 32I(4) and (5)
297: Section 32J replaced (RWT exemption certificates for unincorporated bodies)
Replace section 32J
32J: RWT-exempt status for unincorporated bodies
1: When the Commissioner provides RWT-exempt status to an unincorporated body described in section RE 30 of the Income Tax Act 2007,—
a: the named body has the RWT-exempt status; and
b: no member of the body may have RWT-exempt status in relation to a taxable activity carried on by the body.
2: For the purposes of the RWT rules and RWT-exempt status, a notice to the body is treated as served on the body and on each member of the body.
298: Section 32K amended (Failing to meet basis of exemption)
1: In section 32K(1) a holder of an RWT exemption certificate a person who has RWT-exempt status
2: Replace section 32K(2)
2: If the person becomes aware that they no longer meet the requirements, they must notify the Commissioner within a period of 5 days after the day on which they become aware.
3: In section 32K(3) the holder to provide the full name and last known address of all persons to whom they have shown the certificate the person to provide the full name and last known address of all persons to whom they have advised their RWT-exempt status
299: Section 32L replaced (Cancellation of RWT exemption certificates)
Replace section 32L
32L: Revocation of RWT-exempt status
1: The Commissioner may revoke a person’s RWT-exempt status at any time if—
a: the Commissioner reasonably believes that the person no longer meets the requirements on which their exemption is based; or
b: the person did not meet the requirements on which their exemption was based, having acquired the status through misleading information; or
c: the person should not have been provided with RWT-exempt status; or
d: the person’s RWT-exempt status was based on a ground set out in section 32E(2)﻿(i) or (j), and the evidence provided under section 32G
i: shows the person did not meet the threshold; or
ii: is unsatisfactory; or
iii: is materially incorrect or misleading; or
e: the person is liable for income tax that remains unpaid by the due date for payment.
2: The Commissioner must notify the person whose status has been revoked within 30 working days of the revocation. The Commissioner may also make a request under section 32K(3) with which the person must comply.
3: Despite subsection (1), if the Commissioner considers that a person referred to in subsection (1)﻿(a) to (d) is a person to whom section 32G
4: A person referred to in subsection (2) must, within 5 days of being notified by the Commissioner, notify every person that they have advised of their RWT-exempt status and from whom they expect to receive further payments of resident passive income that their status has been revoked.
5: The Commissioner must publish on an electronic register, a list of all persons whose RWT-exempt status has been revoked.
300: Section 33 amended (Returns)
Replace the heading before section 33 Subpart 3G—Returns
301: Section 33AA amended (Exceptions to requirement for return of income)
1: In section 33AA(1)﻿(b) issued under section 24F notified by the Commissioner under schedule 5, part B, clause 1
2: In section 33AA(1)﻿(l) holds an RWT exemption certificate has RWT-exempt status
3: In section 33AA(3)﻿(c) section 25(7) section 26C(7)
302: Section 36 amended (Commissioner may approve furnishing of return information by electronic means)
Repeal section 36(4)
303: Section 36A repealed (Electronic format of employer monthly schedule and PAYE payment form)
Repeal section 36A
304: Section 36AB repealed (Electronic return requirements for multi-rate PIEs)
Repeal section 36AB
305: Section 36B repealed (Other formats of employer monthly schedule)
Repeal section 36B
306: New section 36BD inserted (Electronic filing requirements for registered persons)
After section 36BC
36BD: Electronic filing requirements for registered persons
1: The Commissioner must prescribe 1 or more electronic forms or means of electronic communication that—
a: a registered person may use to file a return required under the Goods and Services Tax Act 1985; or
b: a registered person whose taxable supplies exceed the threshold set out in subsection (2) must use to file a return under that Act.
2: The Governor-General may, on the recommendation of the Minister of Revenue, make an Order in Council setting a threshold for the value of taxable supplies of a registered person that means the person is required to use an electronic form or means of electronic communication for filing a return under that Act. Before making the recommendation, the Minister must undertake consultation on the proposed threshold that is appropriate and reasonable for the purposes of this section.
3: The Commissioner may exempt a registered person, or a class of registered persons, whose taxable supplies exceed the threshold from the requirement to file in the prescribed electronic form or by the prescribed means of electronic communication. The Commissioner must provide a statement of reasons for the exemption.
4: In determining under subsection (3) whether to exempt the person or class of persons, the Commissioner must have regard to—
a: the nature and availability of digital services to the person or persons in the class, including the reliability of those services for the purposes of the person or persons; and
b: the capability of the person or persons in the class relating to the use of computers; and
c: the costs that the person or persons in the class would incur in complying with the requirements if those costs would be unreasonable in the circumstances.
5: Subject to subsection (6), an exemption under this section remains valid until the Commissioner notifies the employer that the exemption is to be cancelled. The exemption expires on the date that is 6 months after that given in the Commissioner’s notice.
6: In making an exemption under this section, the Commissioner may set a time limit on the exemption, stating a start date and an end date, as applicable, for the exemption and the reason for setting the limit.
7: An exemption under subsection (3) is neither a legislative instrument nor a disallowable instrument for the purposes of the Legislation Act 2012 and does not have to be presented to the House of Representatives under section 41 of that Act.
307: Section 36C amended (Particulars furnished in electronic format)
In section 36C(1) 36BB, or 36BC 36BB, 36BC, or 36BD
308: Sections 36CA, 36D, and 36E repealed
Repeal sections 36CA 36D 36E
309: New cross-heading inserted before section 37 (Returns and return dates)
Before section 37 Returns and return dates
310: Section 46 amended (Employer to make returns as to employees)
1: In section 46(6B) section CE 2(2) or (4) section CE 1(1)﻿(d)
2: In section 46(6B)﻿(b)﻿(i) share purchase agreement employee share scheme
311: Section 46 amended (Employers to make returns as to employees)
In section 46(7) section RD 3(2) to (4) section RD 3B or RD 3C
312: Section 46 amended (Employers to make returns as to employees)
After section 46(7)
8: For the purposes of the new rules relating to the delivery of employment income information set out in section 200 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018, the Governor-General may, by Order in Council, on the recommendation of the Minister of Revenue, make regulations providing—
a: the nature and type of errors that are able to be corrected by an employer or PAYE intermediary:
b: the manner in which errors in employment income information may be corrected and the specifications for the correction of particular errors in employment income information:
c: the periods to which corrections may relate, including past periods and future periods.
9: Before making a recommendation under subsection (8), the Minister must undertake consultation on the proposed regulation that is appropriate and reasonable for the purposes of this section.
313: Section 46 repealed (Employers to make returns as to employees)
Repeal section 46
314: Section 46C amended (FBT returns for years)
After section 46C(3)
3B: Subsection (3C) applies to an employer who—
a: chooses to pay under the close company option; and
b: is linked to a tax agent to whom section 37(4) and section RA 13(2)﻿(a)﻿(i) and (4) of the Income Tax Act 2007 apply.
3C: Despite subsection (3), during the period of co-existence of 2 Inland Revenue software platforms, the employer may provide the return by the due date for the month that is specified in schedule 3, part A, column H of the Income Tax Act 2007. The employer is liable to pay the amount calculated by the same date. This subsection expires and is repealed on 31 December 2021.
315: Section 47 amended (ESCT statements provided by employers and others)
Replace section 47(2)
2: The employer, person, or PAYE intermediary must deliver their employment income information to the Commissioner by the relevant dates set out in sections 23E to 23H
316: Section 48 repealed (Special arrangements for supply of information by employer or PAYE intermediary to Commissioner)
Repeal section 48
317: Section 49 amended (NRWT withholding certificates and annual reconciliations)
1: In section 49(1B) 31 May 15 May
2: In section 49(4C)﻿(a) 31 May 15 May
3: After section 49(4C)
4D: Despite subsections (1B) and (4C)﻿(a), the information required to be provided for a royalty paid to a non-resident person must be provided by 31 May after the end of the tax year.
4: Subsections (1) and (2) apply for the 2018–19 and 2019–20 tax years.
318: Sections 49 and 50 repealed
Repeal sections 49 50
319: Section 51 amended (RWT withholding reconciliation statements)
In section 51(1B) RWT. RWT by 15 May after the end of the tax year in which the amount is withheld.
320: Sections 51, 52, 53, and 54 repealed
Repeal sections 51 52 53 54
321: Section 54C amended (Information in relation to payment of RLWT)
1: In section 54C(1) 2 years 5 years
2: Subsection (1) applies to a person’s disposal of residential land if the date that the person first acquires an estate or interest in the residential land is on or after the date on which the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 receives the Royal assent.
3: Despite subsection (2), subsection (1) does not apply to a person’s disposal of a freehold estate in residential land that the person acquired as the owner of a leasehold estate with a perpetual right of renewal, if the person was granted the leasehold estate before 29 March 2018.
4: Despite subsection (2), subsection (1) does not apply to a person’s disposal of an estate or interest in residential land that the person acquired as the result of the completion of a land development or subdivision, if before 29 March 2018 the person entered into the agreement under which they acquired the estate or interest upon the completion of the land development or subdivision. Section 321(3) inserted 18 March 2019 section 353 Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 Section 321(4) inserted 18 March 2019 section 353 Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019
322: Section 55 amended (Consequence of inability to provide tax file numbers)
In section 55(a) in accordance with section 52 or section 53 or section 54 under the reporting requirements in sections 25F to 25I and 25N
323: New section 55B inserted (Information relating to offshore persons and tax file numbers)
After section 55
55B: Information relating to offshore persons and tax file numbers
1: The Commissioner must not allocate a tax file number requested by an offshore person until the Commissioner—
a: receives a current bank account number for the offshore person:
b: is satisfied that the information available to the Commissioner relating to the offshore person provides the Commissioner with an assurance of the identity and background of the offshore person.
2: Subsection (1) does not apply to a person—
a: who needs a tax file number solely because they are a non-resident supplier of goods and services under the Goods and Services Tax Act 1985:
b: who is registered, or has applied to be registered, under section 54B of that Act:
c: for whom a reporting entity under the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 has conducted the procedures for customer due diligence required under that Act and regulations made under that Act.
3: Despite subsection (1), a non-resident seasonal worker under the recognised seasonal employer (RSE) instructions is not required to provide the Commissioner with a current bank account number for the first month of a period of employment in New Zealand.
4: A person who has a tax file number and a current bank account must immediately provide the person’s current bank account number to the Commissioner if the person,—
a: after 1 October 2015, becomes an offshore person under paragraph (b) of the definition of offshore person; and
b: has not previously provided the person’s current bank account number to the Commissioner.
324: Section 57 amended (Maori authority to make returns of income)
After section 57(1)
1B: Section 25I
325: Section 57B amended (Return requirements for multi-rate PIEs)
1: In section 57B Return requirements Requirements
2: Replace section 57B(1)
1: This section sets out the responsibilities for a multi-rate PIE or a proxy for an investor in the PIE. Sections 25J and 25K
3: Replace section 57B(2)﻿(a)
a: to file a return in the prescribed form—
i: showing the amount of the tax liability of the entity for the period; and
ii: providing the investment income information required under sections 25J and 25K
iii: providing further information that the Commissioner considers relevant; and
4: In section 57B(7)﻿(a) 31 May 15 May
5: Repeal section 57B(7)
6: After section 57B(6)
8: The Commissioner must prescribe 1 or more electronic forms and means of electronic communication in which or by which a return must be provided under this section. The Commissioner may specify conditions relating to the format, either general or in a particular case.
7: Subsection (4) applies for the 2018–19 and later tax years.
326: Section 61 amended (Disclosure of interest in foreign company or foreign investment fund)
In section 61(1C) section 57B(7) section 25J or 25K
327: New section 63B inserted (Disclosure requirements for exempt ESSs)
After section 63
63B: Disclosure requirements for exempt ESSs
1: A company must notify the Commissioner, in the form prescribed by the Commissioner, that there is an exempt ESS for its employees that meets the criteria in section CW 26C(2) to (9) of the Income Tax Act 2007.
2: For a tax year, a company that has an exempt ESS for its employees must notify the Commissioner annually, in the form prescribed by the Commissioner, of the following:
a: grants of shares made to employees for the tax year:
b: any other information required by the Commissioner.
3: The form described in subsection (2) must be given to the Commissioner on or before the 31 May following the end of the relevant tax year.
328: Section 67 repealed (Company dividend statement when ICA company declares dividend)
Repeal section 67
329: Section 68B repealed (Distribution statement required when Maori authority makes distribution)
Repeal section 68B
330: Section 70 amended (Annual ICA return to be furnished if: required by Commissioner; requirement for imputation credit account ceases; or balance retrospectively reduced to debit or to less than refund)
In section 70(2) an imputation return an annual ICA return
331: Section 74 amended (Annual ICA return to be furnished in respect of consolidated imputation group)
In section 74(1)﻿(b)﻿(iii) an imputation group: an imputation group; and
332: Section 78D amended (Evidential requirements for tax credits)
Section 332 repealed 23 March 2020 section 272 Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020
333: Section 80A amended (Application)
1: In section 80A(1)﻿(a)﻿(ii) (k) to (n) (k) to (p)
2: In section 80A(1)﻿(b) section 80C(4) section 80C
3: Subsection (1) applies for the 2016–17 and later income years.
4: Subsection (2) applies for the 2009–10 and later income years.
334: Section 80D amended (Commissioner must issue income statement)
In section 80D(1)﻿(c)﻿(iii) section RD 4(2) of the Income Tax Act 2007 to provide to the Commissioner an employer monthly schedule section RD 22(1)
335: Section 80F amended (Taxpayer obligations and assessment on receipt of income statement)
In section 80F(5) section 25(7) section 26C(7)
336: Section 80KT amended (Details of payments of tax credits)
1: In section 80KT(2) give the Commissioner details of the payment in an employer monthly schedule. provide details of the payment at a time and in a manner agreed by the chief executive and the Commissioner.
2: Repeal section 80KT(3) and (4)
337: Section 85H amended (Disclosure of information for purposes of Parental Leave and Employment Protection Act 1987)
In section 85H(2) spouse spouse, civil union partner, or de facto partner
338: Section 91AAQ amended (Determination on insurer as non-attributing active CFC)
1: Repeal section 91AAQ(2)﻿(c)
2: Replace section 91AAQ(3)﻿(a)
a: the group is a group of companies that—
i: is controlled by a New Zealand resident; and
ii: has, in a country or territory outside New Zealand, a business of insurance that is registered under the laws of the country or territory relating to the business of insurance; and
339: Section 91FD amended (Disclosure requirements)
In section 91FD(1)﻿(bb) correct: correct; and
340: Section 91G amended (Effect of legislative change on binding ruling)
In section 91G in the ruling. in the ruling. For a limited purpose and period, section 100(2) 2018
341: Section 91GA amended (Applying for ruling on effect of change in legislation)
After section 91GA(3)
4: For a limited purpose and period, section 100(2) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 overrides this section.
342: Section 108B amended (Extension of time bars)
1: In section 108B(3)﻿(d) section 108(1) and (1A) section 108(1), (1A), and (1B)
2: In section 108B(3)﻿(d) section 108(1), (1A), and (1B) section 108(1), (1A), (1B), and (1C)
343: Section 110 amended (Evidence of returns and assessments)
In section 110(2) , or section 36A,
344: Section 120C amended (Definitions)
1: In section 120C(1) date interest starts the 15th working day the 10th working day
2: Subsection (1) applies for taxable periods ending on or after 1 April 2018.
345: Section 120KBB amended (Interest for most standard method and some estimation method provisional taxpayers)
1: In section 120KBB(4)﻿(c)﻿(iii) treating section YB 3 of the Income Tax Act 2007 treating, for the purposes of the definition of associated
2: Subsection (1) applies for the 2017–18 and later income years.
346: Section 120KD amended (Provisional tax instalments in transitional years)
1: After section 120KD(1)
1B: This section does not apply to a person that section 120KBB applies to.
2: Subsection (1) applies for the 2017–18 and later income years.
347: Section 120KD amended (Provisional tax instalments in transitional years)
1: In section 120KD(1B) section 120KBB applies to section 120KBB applies to, unless the person is a new provisional taxpayer
2: Subsection (1) applies for the 2018–19 and later income years.
348: New section 120LB inserted (Meaning of unpaid tax and overpaid tax for certain transferees under AIM method)
After section 120L
120LB: Meaning of unpaid tax and overpaid tax for certain transferees under AIM method
1: This section applies for the purposes of section RC 35B
2: For the purposes of determining an amount of unpaid tax, overpaid tax, or interest under a provision of this Part—
a: the total amount transferred to the person for the tax year under section RC 35B(2)
b: for an amount of unpaid tax or overpaid tax for an instalment, the pro-rated amount referred to in paragraph (a) is subtracted from the underpaid amount or added to the overpaid amount, as applicable:
c: to the extent to which paragraph (b) does not apply for the pro-rated amount, the amount is overpaid tax for the instalment.
3: Subsection (2) does not apply to a person to whom section 120KBB(2) applies. In these circumstances,—
a: for an amount of unpaid tax or overpaid tax for the last instalment for the tax year, the total amount transferred to the person is subtracted from the underpaid amount or added to the overpaid amount, as applicable, under that section:
b: to the extent to which paragraph (a) does not apply in relation to the total amount transferred, the amount is overpaid tax under section 120KBB(2) for the last instalment.
349: New section 120X inserted (Petroleum miners’ tax losses)
1: After section 120W
120X: Petroleum miners’ tax losses
If a taxpayer allocates an amount to an earlier tax year under section EJ 14 of the Income Tax Act 2007, the amount allocated does not reduce the taxpayer’s tax payable for that year for the purpose of this Part.
2: Subsection (1) applies for a taxpayer and to a tax position—
a: taken by the taxpayer in a tax return filed after the date of introduction of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018; and
b: with regard to a reduction under section IS 5(2)
350: Section 120X repealed (Petroleum miners’ tax losses)
1: Repeal section 120X
2: Subsection (1) applies for the 2018–19 and later income years.
351: Section 125 amended (Certain rights of objection not conferred)
In section 125(j)﻿(iv) 36 to 46 23B to 23Q, 36 to 44D
352: Section 139A amended (Late filing penalty for certain returns)
1: In section 139A(1) and the employer monthly schedule required to be provided under section RD 22(1) to (5) of the Income Tax Act 2007 and the employment income information required to be provided under sections 23E to 23J
2: In section 139A(2)﻿(a)﻿(iv) an employer monthly schedule their employment income information
3: In section 139A(4) employer monthly schedule employment income information
4: In section 139A(5) an employer monthly schedule employment income information
5: Replace section 139A(6) and (7)
6: Subsections (7) to (9) apply in relation to a late filing penalty when a taxpayer fails to provide employment income information to the Commissioner by a due date when, for the 12-month period before the due date, the taxpayer has delivered on time all the required income information.
7: Subject to subsection (9), the Commissioner must notify the taxpayer,—
a: first, that a late filing penalty will be payable for a further failure to provide income information on time:
b: secondly, that the penalty is payable when a further failure occurs after the notice referred to in paragraph (a) has been given.
8: For employment income information, the maximum penalty that may be imposed in relation to a month, regardless of the number of failures to provide employment income information, is $250.
9: Despite subsection (7), a taxpayer is not liable to pay a late filing penalty in relation to employment income information if the Commissioner considers that, in a particular case or class of cases, a penalty should not be imposed. However, the Commissioner’s discretion may be exercised only if—
a: it is necessary because of resource constraints imposed on the Commissioner during the period of co-existence of 2 Inland Revenue software platforms; and
b: the taxpayer’s non-compliance is not serious or unreasonable.
353: Section 139AA amended (Non-electronic filing penalty)
1: In section 139AA(1)﻿(a) section RD 22(2) and (2B) of the Income Tax Act 2007 section 23E
2: After section 139AA(1)﻿(a)
aba: a person who is required to provide investment income information to the Commissioner under sections 25F to 25M and 25N
3: After section 139AA(1)﻿(ac)
ad: a registered person; and
4: In section 139AA(2) A person who is an employer, a portfolio investment entity, a portfolio investor proxy, or a PAYE intermediary The person
5: In section 139AA(3) under section 36B(1) to furnish the employer monthly schedule under sections 23D(4) and 23G
6: Replace section 139AA(4)
4: For employment income information, the maximum penalty that may be imposed in relation to a month, regardless of the number of failures to provide employment income information, is the greater of $250 or $1 for each employee whose employment income information is not in the prescribed electronic form or delivered by the prescribed means of electronic communication at any time in the month.
7: After section 139AA(4)
5: For GST purposes, the non-electronic filing penalty is $250.
8: After section 139AA(5)
6: For investment income information, the non-electronic filing penalty is $250.
7: Despite subsection (2), a person is not liable to pay a non-electronic filing penalty if the Commissioner considers that, in a particular case or class of cases, a penalty should not be imposed. However, the Commissioner’s discretion may be exercised only if—
a: it is necessary because of resource constraints imposed on the Commissioner during the period of co-existence of 2 Inland Revenue software platforms; and
b: the taxpayer’s non-compliance is not serious or unreasonable.
354: Section 141AA amended (Shortfall penalty if non-resident contractor relieved from all liability to pay tax on contract payment)
In section 141AA(1) and (3)
a: replace each return period each month
b: replace an employer monthly schedule employment income information
355: Section 141ED amended (Not paying employer monthly schedule amount)
1: In section 141ED Penalty for unpaid amounts of employers’ withholding payments
2: Replace section 141ED(1)
1: A taxpayer is liable to pay a shortfall penalty (the employers’ withholding payment penalty
a: the taxpayer—
i: provides employment income information to the Commissioner under subpart 3C
ii: is required to pay to the Commissioner an amount of tax (the required amount section RD 4(1)
iii: fails to pay some or all of the required amount (the unpaid amount
b: the Commissioner, after the due date for the payment of the required amount, gives the taxpayer notice (the Commissioner’s notice
i: that the taxpayer is liable to pay a penalty for failing to pay the unpaid amount by the due date and of how the penalty is calculated; and
ii: of the circumstances in which further penalties will be imposed and of how a further penalty will be calculated; and
iii: of actions that the taxpayer may take to avoid the imposition of further penalties; and
c: subsection (3) does not apply to the taxpayer.
3: In section 141ED(2) the returned amount the required amount
4: In section 141ED(3)
a: replace a penalty for not paying employer monthly schedule amount an employers’ withholding payment penalty
b: replace paragraph (a)﻿(i) with:
i: appointed after the end of the month in which the employment income information is provided to the Commissioner; and
5: In section 141ED(4)
a: replace A penalty payable for not paying employer monthly schedule amount An employers’ withholding payment penalty payable
b: in paragraph (a), replace the returned amount the required amount
6: In section 141ED(5) the penalty for not paying employer monthly schedule amount the employers’ withholding payment penalty
7: In section 141ED(5B)
a: replace the returned amount the required amount
b: replace the employer monthly schedule the employment income information
8: In section 141ED(6) 1 penalty for not paying employer monthly schedule amount arising from an employer monthly schedule 1 employers’ withholding payment penalty arising from the employment income information
9: In section 141ED(7) the returned amount the required amount
356: Section 141JA amended (Application of Part 9 to non-filing taxpayers)
In section 141JA(a) section RD 4(2) section RD 4(4)
357: Section 142 amended (Due date for payment of late filing penalty)
1: In section 142(1) an employer monthly schedule employment income information
2: Replace section 142(1A)
1A: The due date for the payment of a late filing penalty for failing to provide employment income information is 30 days after the end of the month in which the employer is required to deliver their employment income information to the Commissioner.
3: In section 142(2) , employer monthly schedule
358: Section 142A amended (New due date for payment of tax that is not a penalty)
1: Before section 142A(1)
1A: This section applies for the transitional period described in subsection (10).
2: After section 142A(9)
10: For the purposes of subsection (1), the transitional period is the period of co-existence of 2 Inland Revenue software platforms that starts on the date on which the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 receives the Royal assent and ends on the date by which the last Order in Council made under section 142AB(5) brings that section into force for a particular tax type.
11: Section 142AB overrides this section, but this section continues to apply for an amount of tax in relation to which an incremental late payment penalty is payable under section 139B.
359: New section 142AB inserted (New due date for new and increased assessments)
After section 142A
142AB: New due date for new and increased assessments
1: This section applies, subject to the particular commencement dates for different tax types described in subsection (5), when the Commissioner makes either of the following assessments for a taxpayer, other than an assessment (a default assessment
a: an assessment (the new assessment
b: an amended assessment (the increased assessment
i: of an amount of tax that is more than the amount for which the taxpayer is liable immediately before the increased assessment; and
ii: made less than 30 days before, or on or after, the due date for the tax for which the taxpayer is liable immediately before the increased assessment; and
iii: that is not an increased assessment to a default assessment.
2: The Commissioner must—
a: fix a date that is 30 or more days after the date of the notice of the assessment for the payment of—
i: the tax under a new assessment:
ii: the increase of tax under an increased assessment; and
b: notify the taxpayer of the date in the notice of assessment.
3: Subsection (2) does not apply—
a: to an amount of provisional tax that remains unpaid on an instalment date; or
b: when the Commissioner has notified the taxpayer before the due date for the payment of the tax that subsection (2) will not apply to the tax as calculated by the taxpayer or to an amount of tax estimated by the taxpayer; or
c: when the Commissioner considers that setting a new due date may prejudice the Commissioner’s ability to recover the tax or increased tax.
4: In this section, tax
5: This section comes into force on a date appointed by the Governor-General by Order in Council, and 1 or more orders may be made appointing different dates for different tax types and for different purposes. To the extent to which it is not previously brought into force, this section comes into force on 1 April 2023.
6: For a tax type in relation to which an order is made under subsection (5), this section applies to a new assessment for the tax type or an increased assessment for the tax type and section 142A
360: Section 142G replaced (Due date for payment of non-electronic filing penalty)
1: In section 142G
2: For GST purposes, a non-electronic filing penalty is due and payable 30 days after the end of the month in which the registered person is required to provide the GST information to the Commissioner.
2: Replace section 142G
142G: Due date for payment of non-electronic filing penalties
A non-electronic filing penalty under section 139AA
a: for employment income information, 30 days after the end of the month in which the employer is required to provide to the Commissioner the information in the prescribed electronic form or by means of the prescribed electronic communication:
b: for GST purposes, 30 days after the end of the month in which the registered person is required to provide to the Commissioner the GST information in the prescribed electronic form or by means of the prescribed electronic communication.
3: After section 142G(b)
c: for investment income information, 30 days after the end of the month in which the payer of investment income is required to provide to the Commissioner the information in the prescribed electronic form or by means of the prescribed electronic communication.
361: Section 157 amended (Deduction of tax from payments due to defaulters)
In section 157(10) income tax section RD 4(2)﻿(a) section RD 4(4)
362: Section 173L amended (Transfer of excess tax within taxpayer’s accounts)
1: In section 173L(2)﻿(a) a day after the end of the GST return period in which the refund arose the applicable date set out in subsection (2B)
2: After section 173L(2)
2B: For the purposes of subsection (2)﻿(a), the applicable date is—
a: when the taxpayer files their return before the due date, the earlier of—
i: the day after the date on which the return is filed:
ii: the day after the end of the GST return period in which the refund arose:
b: when the taxpayer files their return on the due date, the day after the end of the GST period in which the refund arose:
c: when the taxpayer files their return after the due date, the day after the date on which the return is filed.
3: Subsections (1) and (2) apply for taxable periods ending on or after 1 April 2018.
363: Section 183A amended (Remission for reasonable cause)
1: In section 183A(1)﻿(i) a penalty for not paying employer monthly schedule amount an employers’ withholding payment penalty
2: In section 183A(1A)﻿(b) the tax return or an employer monthly schedule, or not furnishing an employer monthly schedule the tax return or their employment income information, or not furnishing their employment income information
364: Section 183C amended (Cancellation of interest)
1: Replace section 183C(4B) and (4C)
4B: Subsection (4C) applies, if—
a: the Commissioner issues another statement of account (the second statement first statement
b: the first and second statements are for a START tax type and any penalties related to the START tax type; and
c: the START tax type and any related penalties in the first statement, together with any interest payable under Part 7 in relation to the period before the date of the first statement is paid to the Commissioner on or before the 30th day after the date on which the first statement is issued, or the due date of the tax, whichever occurs first.
4C: The Commissioner shall cancel the taxpayer’s liability to pay interest under Part 7 in relation to the START tax type and related penalties for the period commencing on the day after the date on which the first statement is issued and ending with the day on which the payment described in subsection (4B)﻿(c) is made.
4D: Subsection (4E) applies, if—
a: the Commissioner issues another notice of assessment (the second assessment first assessment
b: the first and second assessments are for a START tax type and any penalties related to the START tax type; and
c: the START tax type and any related penalties in the second assessment, together with any interest payable under Part 7 in relation to the period before the date of the second assessment is paid to the Commissioner on or before the 30th day after the date on which the second assessment is issued, or the due date of the tax, whichever occurs first.
4E: The Commissioner shall cancel the taxpayer’s liability to pay interest under Part 7 in relation to the START tax type and related penalties for the period commencing on the day after the date on which the second assessment is issued and ending with the day on which the payment described in subsection (4D)﻿(c) is made.
2: Subsection (1) applies for a second statement or assessment issued by the Commissioner on or after 1 April 2018.
365: Section 183D amended (Remission consistent with collection of highest net revenue over time)
In section 183D(1)﻿(bd) a penalty for not paying employer monthly schedule amount an employers’ withholding payment penalty
366: Section 183F amended (Small amounts of penalties and interest not to be charged)
1: In section 183F(1)﻿(a) amount of income tax or ancillary tax amount of tax
2: In section 183F(1)﻿(b) amount of income tax or ancillary tax amount of tax
367: Section 183F amended (Small amounts of penalties and interest not to be charged)
In section 183F(1)﻿(c) a penalty for not paying employer monthly schedule amount an employers’ withholding payment penalty
368: Section 185 amended (Payment out of Crown Bank Account)
1: In section 185(1)﻿(f) Act; or Act—
2: Repeal section 185(1)﻿(g)
369: Sections 185C and 185D repealed
Repeal sections 185C 185D
370: New sections 227C and 227D inserted
After section 227B
227C: Transitional provision: voluntary application of employment income information provisions
1: This section applies for the purposes of this Act and the Income Tax Act 2007, when an employer or PAYE intermediary, other than an employer who provides their employment income information by non-electronic means, is required to provide an employer monthly schedule and a PAYE income payment form in the period that starts on 1 April 2018 and ends on 31 March 2019 (the transitional period
2: Despite the commencement provisions in the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (the amendment Act
3: For the purposes of subsection (2), an employer who chooses to report their employment income information using the provisions of the amendment Act must also apply the other relevant provisions relating to the delivery of that information or to the interpretation of those provisions, whether or not the relevant provision is listed in subsection (8).
4: When an employer makes an election under subsection (2), they must include in their employment income information the required items relating to a benefit received by an employee or former employee under section CE 1(1)﻿(d)
5: For the purposes of subsection (4), for an item relating to a benefit under an employee share scheme received by an employee in the part of the transitional period that falls before the date referred to in section 2(34) section CE 2(9)
6: For the purposes of the application of a late filing penalty under section 139A(6) to (8)
7: For the purposes of the correction of errors in employment income information that is provided in the transitional period, a regulation-making power is set out in section 46(8) and (9)
8: For the purposes of subsections (2) and (4), and despite the relevant commencement provisions in section 2
a: sections 17(2) and (3)﻿(b), 20, 153, 158, 159, 191, 196, 203, 207 to 209, 239, 240, 243(20), (24), (26), (53), and (54), 261(2), (5), (13), and (26), 267, 272, 274 to 276, 279, 280, 303, 313, 315, 334, 352 to 357, 360, 363 to 367, 372(1)﻿(a) to (c), 374 to 380, 383 to 388, and 406
b: the due dates for employment income information under sections 23E to 23I section 139A(6) to (8) or 142
9: An employer who makes an election under subsection (2) may not revert to the provisions for the delivery of the employer monthly schedule and PAYE income payment form under this Act or the Income Tax Act 2007, and must continue to apply the provisions of the amendment Act for the remainder of the transitional period unless the employer and Commissioner agree otherwise. As a consequence, the early commencement and application dates set out in subsection (8) no longer apply.
227D: Transitional provision for certain filing requirements of employers
1: For the purposes of this Act and the Income Tax Act 2007, when an employer or PAYE intermediary is required to provide an employer monthly schedule and a PAYE income payment form relating to the last month of the transitional period referred to in section 227C(1)
2: For the purposes of this Act and the Income Tax Act 2007, when an employer chooses to apply the provisions in the amendment Act for the transitional period under section 227C(2) month of the election
3: For the purposes of this Act and the Income Tax Act 2007, in relation to a benefit received by an employee or former employee under an employee share scheme for the period that starts on 16 March 2019 and ends on 31 March 2019, an employer to whom section RD 4(1)﻿(b) of the Income Tax Act 2007 applies must—
a: apply the provisions in the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 in relation to the tax treatment of the benefit; and
b: provide their employment income information in relation to the benefit under the provisions in subpart 3C rather than including the information in the employer monthly schedule and PAYE income payment form.
371: New section 227E inserted (Transitional provision: application of investment income information provisions)
After section 227D
227E: Transitional provision: application of investment income information provisions
1: This section applies for the purposes of this Act and the Income Tax Act 2007 to a person who pays an amount of investment income in the period that starts on 1 April 2019 and ends on 31 March 2020 (the transitional period
2: Despite the commencement provisions in the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 amendment Act section 25O
3: A person who makes an election under subsection (2) may not revert to the provisions in this Act and the Income Tax Act 2007 relating to the returns of income, and must continue to apply the relevant provisions of the amendment Act for the remainder of the transitional period, unless the person and Commissioner agree otherwise.
372: New schedules inserted
1: After schedule 2 schedule 3
a: schedule 3 (Record-keeping requirements):
b: schedule 4 (Reporting of employment income information):
c: schedule 5 (Certain codes and rates):
d: schedule 6 (Reporting of investment income information).
2: In schedule 3 25, 26, 49, 51 22AAB
4: Amendments to other enactments
KiwiSaver Act 2006
373: KiwiSaver Act 2006
Sections 374 to 389 KiwiSaver Act 2006 2018-04-01 KiwiSaver Act 2006 See s 2(35) 2019-04-01 KiwiSaver Act 2006 See s 2(36)
374: Section 4 amended (Interpretation)
1: In section 4(1)
a: in the definition of employer or RD 4(2) or RD 4(4)
b: repeal the definition of employer monthly schedule
c: insert, in appropriate alphabetical order: employment income information section 23C
d: insert, in appropriate alphabetical order: KiwiSaver status
a: whether or not they are a member of an existing KiwiSaver scheme or are choosing to opt in to a scheme:
b: if they are an existing member,—
i: their deduction rate:
ii: whether they are on a contribution holiday:
iii: whether they wish to cease deductions under section 112B(1) of the KiwiSaver Act 2006:
iv: whether they have chosen to opt out of a scheme:
c: if they are a new member, the information as required by the Commissioner, including the nomination of a contribution rate
2: In section 4(1) KiwiSaver deduction notice
3: In section 4(1), repeal the definition of remittance certificate
375: Section 17 amended (How to opt out)
Replace section 17(5)
5: An employer who receives an opt-out notice must give notice of that opt-out to the Commissioner no later than the time the employer is next required to provide their employment income information for payday reporting to the Commissioner under section RD 22 sections 23E to 23I
376: Section 22 amended (Employees giving information to employers)
1: Replace section 22(1)﻿(c)﻿(i)
i: notify his or her employer of their KiwiSaver status; or
2: In section 22(2) given as soon given, in a form authorised by the Commissioner, as soon
3: In section 22(3) may give their temporary employer a KiwiSaver deduction notice may notify their temporary employer of their KiwiSaver status
377: Section 23 amended (Employers must give information to Commissioner)
In section 23(2)
a: replace an employer monthly schedule their employment income information for payday reporting
b: replace sections 24J and 24P sections 23E to 23I
378: Section 34 amended (Opting in by person 18 years or more)
1: In section 34(1)﻿(b) give his or her employer a KiwiSaver deduction notice notify his or her employer of a change in their KiwiSaver status
2: In section 34(2) by giving his or her employer a KiwiSaver deduction notice by notifying his or her employer of a change in their KiwiSaver status
3: In section 34(4)
a: replace an employer monthly schedule their employment income information for payday reporting
b: replace sections 24J and 24P sections 23E to 23I
379: Section 42 amended (Employer must supply information pack to certain employees)
In section 42(1)﻿(b) giving the employer the KiwiSaver deduction notice notifying his or her employer of a change in their KiwiSaver status
380: Section 60 amended (Application of subpart)
In section 60(1)﻿(b) has given the employer a KiwiSaver deduction notice has notified his or her employer of their KiwiSaver status and of any changes in that status
381: Section 64 amended (Contribution rate)
After section 64(3)
3B: For a contribution rate under subsection (1)﻿(a), when a change occurs to a rate in this Act, or in regulations made under this Act, affecting the contribution that must be deducted from a payment of salary or wages, the calculation of the amount of the contribution must be made at the rate applying on the day on which the salary or wages are paid.
382: Section 67 amended (PAYE rules apply to deductions)
1: In section 67(3)﻿(a) RD 10, RD 16 RD 10, RD 10B, RD 13, RD 16
2: In section 67(3)﻿(a) sections 24B to 24P subpart 3D schedule 5
383: Section 73 amended (Deductions entered in and paid out of holding account)
1: In section 73(1)﻿(b) shown on an employer monthly schedule delivered under section RD 4 of the Income Tax Act 2007 included in employment income information provided under section RD 22
2: In section 73(2) that monthly schedule that employment income information
3: In section 73(6) entered on an employer monthly schedule included in employment income information
384: Section 93 amended (Employer contributions paid via Commissioner)
1: In section 93(2) a PAYE payment form the relevant employment income information
2: In section 93(4) and RD 4(2) and RD 4(4)
3: In section 93(5) on the employer monthly schedule in their employment income information
385: Section 97 replaced (Commissioner must give notice if employer contributions not remitted)
Replace section 97
97: Commissioner must give notice if employer contributions not remitted
1: This section applies for a PAYE period when—
a: an employer is required to provide a return in relation to an amount of employer contribution under this subpart, and includes a reference to the payment in their employment income information under the Tax Administration Act 1994; and
b: the Commissioner does not receive the payment in full by the due date for the payment.
2: The Commissioner must notify the employer that the payment has not been received.
386: Section 98 amended (Short payments by employers if not enough money remitted to Commissioner to cover all of employees’ deductions and employer contributions)
1: In section 98(1)
a: in paragraph (a), replace on either or both of a remittance certificate or an employer monthly schedule in their employment income information
b: in paragraph (b), replace on either or both of the remittance certificate or employer monthly schedule in the employment income information
2: In section 98(2) on the remittance certificate and employer monthly schedule in their employment income information
387: Section 98A amended (Quantifying short payments for the purposes of Income Tax Act 2007 and Tax Administration Act 1994)
In section 98A(b) shown on either or both of a PAYE payment form and an employer monthly schedule included in their employment income information
388: Section 99 amended (Short payments if not enough employer contribution remitted to cover all employees)
1: In section 99(1)
a: in paragraph (a), replace on a remittance certificate or employer monthly schedule in their employment income information
b: in paragraph (b), replace on the remittance certificate and employer monthly schedule in the employment income information
2: In section 99(2)
a: is the total employer contributions received by the Commissioner under this subpart for all of the employer’s employees for the month:
b: is the employer contribution included in their employment income information for the relevant employee for the month referred to in item a:
c: is the total employer contributions included in their employment income information for all the employer’s employees for the month referred to in item a.
389: Section 101D amended (Compulsory employer contribution amount: general rule)
1: Replace section 101D(4)
4: CEC rate
2: After section 101D(4)
4B: When a change occurs to the CEC rate affecting the amount of a compulsory employer contribution, the calculation of the amount of the contribution must be made at the rate applying on the day on which the salary or wages are paid. Student Loan Scheme Act 2011
390: Student Loan Scheme Act 2011
Sections 391 to 395 Student Loan Scheme Act 2011 2018-04-01 Student Loan Scheme Act 2011 See s 2(35) 2019-04-01 Student Loan Scheme Act 2011 See s 2(37)
391: Section 34 amended (Repayment codes for New Zealand-based borrowers who derive salary or wages)
In section 34(2)﻿(a) section 24F section 24D(a) schedule 5, part B, clause 1
392: Section 37 amended (Deduction rates that apply to standard deductions from salary or wages)
After section 37(3)
3B: When a change occurs to a rate in this Act, or in regulations made under this Act, affecting the deduction from primary employment earnings paid to the borrower or secondary employment earnings paid to the borrower, the calculation of the amount of the deduction must be made at the rate applying on the day on which the employment earnings are paid to the borrower.
393: Section 84 amended (Due dates for payment of interim payments)
In section 84(2)﻿(a) a GST ratio a GST ratio, or the AIM method provided in section RC 5(5B) of the Income Tax Act 2007,
394: Section 202 amended (Provisions of Tax Administration Act 1994 and Income Tax Act 2007 to apply to this Act)
In section 202
a: replace 24F, 24H section 24D(a)
b: replace and 114 114, and schedule 5, part A, clause 4 and part B, clause 1
395: Schedule 2 amended (Application of PAYE rules for purposes of section 70)
1: In schedule 2 RD 8 to RD 10, RD 13B RD 8 to RD 10, RD 13
2: In schedule 2
a: the following do not apply to salary or wage deductions:
i: sections BC 1, LA 6 RD 8 to RD 10B RD 13B RD 17(2) and (3)
ii: sections 24F, 24G, 24H, and 24I, and schedule 5, part C Goods and Services Tax Act 1985
396: Goods and Services Tax Act 1985
Sections 397 to 402 Goods and Services Tax Act 1985 2018-03-29 Goods and Services Tax Act 1985 See s 2(1) and paper notes for amendments in force on 29 March 2018 (assent) and see s 2(31), (32) for amendments deemed to come into force earlier 2018-07-01 Goods and Services Tax Act 1985 See s 2(36)
397: Section 2 amended (Interpretation)
In section 2(1) Pharmac Pharmac agreement pharmaceutical
398: Section 2A amended (Meaning of associated persons)
After section 2A(1)﻿(h)
hb: A trustee of a trust and a person who has a power of appointment or of removal of the trustee, except if the person—
i: holds the power as a provider of professional services; and
ii: is subject to a professional code of conduct, and disciplinary process intended to enforce compliance with the code, of an approved organisation as that term is defined in section 3(1) of the Tax Administration Act 1994, for such providers of professional services; and
iii: has not benefited from the trust; and
iv: is not eligible to benefit from the trust:
399: Section 20H amended (Goods and services tax incurred in making financial services for raising funds)
In section 20H(1) section 20(3)﻿(hc) section 20(3)﻿(hd)
400: Section 25 amended (Credit and debit notes)
1: In section 25(1)﻿(b) has been altered (except as provided in subsection (1B)
2: After section 25(1)
1B: For the purposes of subsection (1)﻿(b), the previously agreed consideration for the supply of a pharmaceutical is not altered if part of the consideration for the supply has been rebated to Pharmac (acting on its own account or as an agent for a public authority) under a Pharmac agreement.
3: After section 25(6)
7: In this section,— Pharmac Pharmac agreement pharmaceutical
4: Subsections (1), (2), and (3) apply in relation to a rebate that is paid on or after 1 July 2018.
401: Section 25AB amended (Consequences of change in contract for secondhand goods)
1: In section 25AB(1) registered person for which the registered person returns input tax determined under section 3A(3)
2: In section 25AB(1)﻿(d) debit note credit note
402: Section 53 amended (Registered person to notify change of status)
Replace section 53(1)﻿(ca)
ca: any change whereby that registered person now satisfies the conditions of section 15(4): Child Support Act 1991
403: Child Support Act 1991
Sections 404 to 406 Child Support Act 1991 2018-03-29 Child Support Act 1991 See s 2(32) for amendments deemed effective before assent date of 29 March 2019-04-01 Child Support Act 1991 See s 2(37)
404: Section 89D amended (Exemption for long-term prisoners)
Replace section 89D(1)﻿(a)
a: the person’s income for the whole period, or that part, will be or was nil or will include or included no income other than income from—
i: investments:
ii: employment under section 66 of the Corrections Act 2004; and
405: Section 89F amended (Exemption does not apply at any time during child support year if income criteria not met at any time during relevant period)
In section 89F(1)﻿(a)﻿(ii) investments investments, or employment under section 66 of the Corrections Act 2004,
406: Section 163 amended (Payment of deductions to Commissioner)
Replace section 163(1)
1: A payer who has made a deduction under this Part from money payable to a liable person must—
a: pay to the Commissioner the sum deducted to the credit of the liable person by the date required by section RD 4
b: provide the Commissioner with the employment income information referred to in section RD 22 sections 23E to 23H Accident Compensation Act 2001
407: Accident Compensation Act 2001
Sections 408 to 411 Accident Compensation Act 2001 2018-03-29 Accident Compensation Act 2001 See s 2(31) for amendments deemed effective before assent date of 29 March 2019-04-01 Accident Compensation Act 2001 See s 2(37)
408: Section 6 amended (Interpretation)
In section 6
a: in the definition of employee section RD 3(2) to (4) section RD 3B or RD 3C
b: in the definition of employer section RD 3(2) to (4) section RD 3B or RD 3C
409: Section 15 amended (Earnings as a shareholder-employee)
In section 15(2)﻿(b) section RD 3(2) to (4) section RD 3B or RD 3C
410: Section 246 amended (Information available to Corporation)
In section 246
a: in subsection (1), replace section RD 3(2) to (4) section RD 3B or RD 3C
b: in subsection (3), replace section RD 3(2) to (4) section RD 3B or RD 3C
c: in subsection (4), replace section RD 3(2) to (4) section RD 3B or RD 3C
d: in subsection (4A)﻿(a), replace section RD 3(2) to (4) section RD 3B or RD 3C
e: in subsection (4A)﻿(b), replace section RD 3(2) to (4) section RD 3B or RD 3C
411: Schedule 4 amended (Deductions on account of earner levies)
In schedule 4 sections 24B to 24P subpart 3D schedule 5 Income Tax Act 2004
412: Income Tax Act 2004
Sections 413 and 414 Income Tax Act 2004
413: Section CD 33 amended (Available capital distribution amount)
1: In section CD 33(9)﻿(a) the adjusted tax value for property that is a building for which no depreciation loss arises under section EE 41(2) and (3) (Effect of disposal or event), the adjusted tax value
2: Subsection (1) applies for the 2005–06 and later income years.
414: Section EA 2 amended (Other revenue account property)
1: In section EA 2(1)﻿(e) sections EJ 11 to EJ 18 sections DT 1, DT 5, and EJ 11 to EJ 18
2: Replace section EA 2(1)﻿(f) with:
f: property under a specified lease or a lease to which section EJ 9 (Personal property lease payments) applies: Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017
415: Section 2 amended (Commencement)
1: Repeal section 2(5)
2: In section 2(6) 386(1) and (2),
3: In section 2(32) 367 367(1) and (2) 2018-03-29 Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 See s 2(31) (amendment deemed effective on 30 March 2017, before assent date of 29 March 2018) Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017
416: Section 32 repealed (Section LA 6 amended (Remaining refundable credits: PAYE, RWT, and certain other items))
Repeal section 32 2018-04-01 Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 See s 2(35) for commencement of amendments contained in s416 and s417 (below)
417: Section 57 repealed (New section 120LB inserted (Meaning of unpaid tax and overpaid tax for tax credit transferees under AIM method))
Repeal section 57 Health and Safety at Work Act 2015
418: Section 201 amended (Funding levy)
In section 201(2)﻿(c) section RD 3(2) to (4) section RD 3B or RD 3C 2018-03-29 Health and Safety at Work Act 2015 See s 2(31) (amendment deemed effective on 30 March 2017, before assent date of 29 March 2018) Compensation for Live Organ Donors Act 2016
419: Schedule 2 amended (Setting rate of earnings compensation)
In schedule 2, clause 1(1)
a: in the definition of employee
b: any income to which section RD 3B or RD 3C
b: in the definition of employee
ii: any income to which section RD 3B or RD 3C 2018-03-29 Compensation for Live Organ Donors Act 2016 See s 2(31) (amendment deemed effective on 30 March 2017, before assent date of 29 March 2018) Regulations
420: Income Tax (Payroll Subsidy) Regulations 2006
Revoke the Income Tax (Payroll Subsidy) Regulations 2006 2020-04-01 Income Tax (Payroll Subsidy) Regulations 2006 See s 2(38)
421: Anti-Money Laundering and Countering Financing of Terrorism (Class Exemptions) Notice 2014
In the schedule PAYE intermediary (and includes a PAYE intermediary who is approved as a listed PAYE intermediary under section 15G of that Act) 2020-04-01 Anti-Money Laundering and Countering Financing of Terrorism (Class Exemptions) Notice 2014 See s 2(38)
422: Accident Compensation (Earners’ Levy) Regulations 2017
In regulation 4(1)﻿(d) for pay periods ending paid, or treated as paid, 2018-04-01 Accident Compensation (Earners’ Levy) Regulations 2017 See s 2(35)
423: Income Tax (Employment-related Remedial Payments) Regulations 2017
Revoke the Income Tax (Employment-related Remedial Payments) Regulations 2017 2018-03-29 Income Tax (Employment-related Remedial Payments) Regulations 2017 See s 2(1) and amends-noter’s paper notes