Taxation (Limited Partnerships) Act 2008

1: Title
This Act is the Taxation (Limited Partnerships) Act 2008.
2: Commencement
This Act comes into force on 1 April 2008.
1: Amendments to Income Tax Act 2007
3: Income Tax Act 2007
This Part amends the Income Tax Act 2007. 2008-04-01 Income Tax Act 2007
4: New section CB 27B
1: After section CB 27, the following is inserted:
CB 27B: Entering partners’ livestock income
When this section applies
1: This section applies when section HG 10
a: an entering partner acquires partner’s interests in livestock; and
b: the relevant exiting partner has a net loss from the amount of consideration paid or payable by the entering partner for the livestock, ignoring other transactions. Income: default position
2: For the income year in which the entering partner acquires the livestock, the entering partner has income equal to the amount of loss described in subsection (4) subsection (3) Income: election to spread
3: If the entering partner chooses, for the income year in which the entering partner acquires the livestock, and in each of the following 4 years, the entering partner has income calculated using the following formula: loss 5. Definition of item in formula
4: In the formula, loss amount entering partner income income year net loss partner partner’s interests .
2: For a person who is not a limited partner of a limited partnership registered under the Limited Partnerships Act 2008
5: New heading and section CB 35 added
1: After section CB 34, the following is added: Partners and partnerships
CB 35: Amounts of income for partners
A person who is a partner has an amount of income to the extent to which an amount of income results from the application of subpart HG amount income partner partnership .
2: For a person who is not a limited partner of a limited partnership registered under the Limited Partnerships Act 2008
6: Meaning of asset for sections CU 3 to CU 10
1: Section CU 11(2) is repealed.
2: For a person who is not a limited partner of a limited partnership registered under the Limited Partnerships Act 2008
7: Amount treated as repayment for purposes of section CU 17: net income
1: Section CU 19(6)(c) is repealed.
2: For a person who is not a limited partner of a limited partnership registered under the Limited Partnerships Act 2008
8: New heading and section CW 55B added
1: After section CW 55, the following is added: Partners and partnerships
CW 55B: Amounts of exempt income for partners
A person who is a partner has an amount of exempt income to the extent to which an amount of exempt income results from the application of subpart HG amount exempt income partner partnership .
2: For a person who is not a limited partner of a limited partnership registered under the Limited Partnerships Act 2008
9: New heading and section CX 62 added
1: After section CX 61, the following is added: Partners and partnerships
CX 62: Amounts of excluded income for partners
A person who is a partner has an amount of excluded income to the extent to which an amount of excluded income results from the application of subpart HG amount excluded income partner partnership .
2: For a person who is not a limited partner of a limited partnership registered under the Limited Partnerships Act 2008
10: New heading and section DV 20 added
1: After section DV 19, the following is added: Partners and partnerships
DV 20: Partners
A person who is a partner is allowed a deduction for expenditure or loss to the extent to which the deduction results from the application of subpart HG amount deduction partner partnership .
2: For a person who is not a limited partner of a limited partnership registered under the Limited Partnerships Act 2008
11: New section DO 11B inserted
1: After section DO 11, the following is inserted:
DO 11B: Entering partners’ livestock deduction
When this section applies
1: This section applies when section HG 10
a: an entering partner acquires partner’s interests in livestock; and
b: the relevant exiting partner has net income from the amount of consideration paid or payable by the entering partner for the livestock, ignoring other transactions; and
c: the amount paid or payable is not exempt or excluded income of the exiting partner. Deduction: default position
2: For the income year in which the entering partner acquires the livestock, the entering partner has a deduction equal to the amount of income described in subsection (4) , subsection (3) Deduction: election to spread
3: If the entering partner chooses, for the income year in which the entering partner acquires the livestock, and in each of the following 4 years, the entering partner is allowed a deduction calculated using the following formula: income 5. Definition of item in formula
4: In the formula, income amount deduction entering partner excluded income exempt income income year net income partner partner’s interests .
2: For a person who is not a limited partner of a limited partnership registered under the Limited Partnerships Act 2008
12: Meaning of asset for sections DU 1 to DU 7
1: Section DU 8(2) is repealed.
2: For a person who is not a limited partner of a limited partnership registered under the Limited Partnerships Act 2008
13: Financial arrangements, income, and expenditure relevant to criteria
1: Section EW 58(2) is repealed.
2: For a person who is not a limited partner of a limited partnership registered under the Limited Partnerships Act 2008
14: Section EX 13 repealed
1: Section EX 13 is repealed.
2: For a person who is not a limited partner of a limited partnership registered under the Limited Partnerships Act 2008
15: Cash basis holder
1: Section EZ 37(10) is repealed.
2: For a person who is not a limited partner of a limited partnership registered under the Limited Partnerships Act 2008
16: Attribution rule: calculation
1: In section GB 29(2)(b), section HR 1 (Partnerships and joint ventures) section HG 2
2: For a person who is not a limited partner of a limited partnership registered under the Limited Partnerships Act 2008
17: New heading and section GB 50 added
1: After section GB 49, the following is added: Arrangements involving partners
GB 50: Arrangements involving partners
When this section applies
1: This section applies when—
a: a partner of a partnership enters into an arrangement; and
b: the arrangement involves an amount of consideration (the arrangement amount of consideration
c: the arrangement has a purpose or effect of defeating the intent and application of subpart HG Market value amount substituted
2: A market value amount of consideration is substituted for the arrangement amount of consideration. amount arrangement partner partnership .
2: For a person who is not a limited partner of a limited partnership registered under the Limited Partnerships Act 2008
18: Section HD 20 replaced
1: Section HD 20 is replaced by the following:
HD 20: Persons carrying on business for absentees
A person is treated as an agent if they carry on in New Zealand a business for an absentee, whether or not the income is received by the agent. absentee agent business income New Zealand
HD 20B: General partners and partners carrying on with or managing business involving absentees
1: This section applies to a person who—
a: in New Zealand carries on a business in a partnership that is not a limited partnership:
b: is a general partner of a limited partnership that carries on a business in New Zealand ignoring section HG 2
2: If the person carries on the business with an absentee or, as a general partner, is responsible for the management of a limited partnership in which a limited partner is an absentee, the person is treated as the agent of the relevant absentee in relation to the absentee’s partnership share of the partnership’s income under section HG 2 absentee agent business general partner income limited partner limited partnership New Zealand partnership partnership share .
2: For a person who is not a limited partner of a limited partnership registered under the Limited Partnerships Act 2008
19: New subpart HG
1: After subpart HF, the following is inserted:
HG: Joint venturers, partners, and partnerships
Joint venturers
HG 1: Joint venturers
When this section applies
1: This section applies when 2 or more people derive income jointly or have deductions jointly, and they are not partners in the same partnership. Separate shares
2: Each person must calculate their net income for a tax year taking into account their share of the joint income and deductions. Exclusion
3: This section does not apply to the income derived by and the deductions of an airport operator from activities that are activities undertaken as an airport operator. airport operator deduction income net income partner partnership tax year Partners and partnerships
HG 2: Partnerships are transparent
Look-through in accordance with share
1: For the purposes of a partner’s liabilities and obligations under this Act in their capacity of partner of a partnership, unless the context requires otherwise,—
a: the partner is treated as carrying on an activity carried on by the partnership, and having a status, intention, and purpose of the partnership, and the partnership is treated as not carrying on the activity or having the status, intention, or purpose:
b: the partner is treated as holding property that a partnership holds, in proportion to the partner’s partnership share, and the partnership is treated as not holding the property:
c: the partner is treated as being party to an arrangement to which the partnership is a party, in proportion to the partner’s partnership share, and the partnership is treated as not being a party to the arrangement:
d: the partner is treated as doing a thing and being entitled to a thing that the partnership does or is entitled to, in proportion to the partner’s partnership share, and the partnership is treated as not doing the thing or being entitled to the thing. No streaming
2: Despite subsection (1) Expenditure or loss previously incurred
3: A partner of a partnership may be treated as incurring an expenditure or loss which the partnership incurs ignoring this section, despite the partner not being a partner at the time the expenditure or loss is incurred. This subsection does not allow 2 deductions for 1 expenditure or loss. Excluded amounts
4: Subsection (2)
a: expenditure or loss that relates to a person entering a partnership by acquiring partner’s interests disposed of by another partner, to the extent to which sections HG 5 to HG 10
b: supplementary dividends, to the extent to which subpart LP (Tax credits for supplementary dividends) applies:
c: CTR additional dividends, to the extent to which subpart LQ (Tax credits of conduit tax relief companies) applies:
d: imputation credits, to the extent to which section LE 6 (Partners in partnerships) applies:
e: FDP credits, to the extent to which section LF 4 (Partners in partnerships) applies. arrangement CTR additional dividend FDP credit imputation credit income partner partnership partnership share rebate supplementary dividend tax credit
HG 3: General provisions relating to disposals
Relationship between disposal upon dissolution and disposal safe harbours
1: Section HG 4 sections HG 5 to HG 10 Election out of disposal safe harbours for small partnerships
2: Sections HG 5 to HG 9 Election out for livestock disposals
3: Section HG 10
HG 4: Disposal upon final dissolution
When this section applies
1: This section applies immediately before a partnership is finally dissolved by agreement of the partners, court order, or otherwise, and the partnership’s business ignoring section HG 2 Disposal
2: Each partner of the partnership is treated as disposing of all of their partner’s interests in the partnership to a single third party for a payment equal to the interests’ market value. Receipts upon dissolution
3: Anything received by a partner in relation to the dissolution of the partnership described in subsection (1) Relationship with subject matter
4: This section overrides sections HG 4 to HG 10 dispose entering partner excluded income partner partner’s interests partnership
HG 5: Disposal of partner’s interests
When this section applies
1: This section applies when a person (the exiting partner current interests disposal payment + previous payments − (gross tax value − liabilities) − $50,000. Definition of items in formula
2: In the formula,—
a: disposal payment
b: previous payments other interests
c: gross tax value
d: liabilities Exiting partner: excluded payment
3: The disposal payment described in subsection (2)(a) Exiting partner: no deduction
4: The exiting partner is denied any deduction in relation to the current interests for the income year in which the disposal of the interests occurs and later income years to the extent to which the entering partner is allowed a deduction because of subsection (6) Entering partner: no deduction
5: An entering partner is denied any deduction for the disposal payment described in subsection (2)(a) Entering partner: stepping in
6: For the purposes of calculating the income and deductions of an entering partner for the part of the income year after the disposal of the interests occurs and later income years (the post-disposal periods section HG 12 Exclusion by election
7: This section does not apply for the partners of a small partnership if they choose that it does not apply, by the small partnership furnishing a joint return of income that ignores sections HG 5 to HG 9 Relationship with section HG 4
8: Section HG 4 deduction dispose entering partner excluded income income tax liability partner partner’s interests partnership partnership share return of income year
HG 6: Disposal of trading stock
When this section applies
1: This section applies when a person (the exiting partner section HG 2 Exiting partner: excluded payment
2: The amount of consideration paid or payable to the exiting partner for the trading stock is excluded income of the exiting partner. Exiting partner: no deduction
3: The exiting partner is denied any deduction in relation to the trading stock for the income year in which the disposal of the trading stock occurs and later income years, to the extent to which the entering partner is allowed a deduction because of subsection (5) Entering partner: no deduction
4: The entering partner is denied any deduction for the amount of consideration paid or payable to the exiting partner for the trading stock. Entering partner: stepping in
5: For the purposes of calculating the income tax liability of an entering partner, the entering partner is treated as if they had acquired and held the trading stock, not the exiting partner. Exclusion by election
6: This section does not apply for the partners of a small partnership if they choose that it does not apply, by the small partnership furnishing a joint return of income that ignores sections HG 5 to HG 9 Relationship with section HG 4
7: Section HG 4 deduction dispose entering partner excluded income income tax liability partner partner’s interests partnership small partnership trading stock turnover
HG 7: Disposal of depreciable property
When this section applies
1: This section applies when a person (the exiting partner Exiting partner: excluded payment
2: The amount of consideration paid or payable to the exiting partner for the depreciable property is excluded income of the exiting partner. Exiting partner: no deduction
3: The exiting partner is denied any deduction in relation to the depreciable property for the income year in which the disposal of the depreciable property occurs and later income years, to the extent to which the entering partner is allowed a deduction because of subsection (5) Entering partner: no deduction
4: The entering partner is denied any deduction for the amount of consideration paid or payable to the exiting partner for the depreciable property. Entering partner: stepping in
5: For the purposes of calculating the income tax liability of an entering partner for the part of the income year after the disposal of the depreciable property occurs and later income years (the post-disposal periods Exclusion by election
6: This section does not apply for the partners of a small partnership if they choose that it does not apply, by the small partnership furnishing a joint return of income that ignores sections HG 5 to HG 9 Relationship with section HG 4
7: Section HG 4 deduction depreciable intangible property depreciable property dispose entering partner excluded income income tax liability partner partner’s interests partnership small partnership
HG 8: Disposal of financial arrangements and certain excepted financial arrangements
When this section applies
1: This section applies when a person (the exiting partner section HG 2
a: the purpose for which the financial arrangement or excepted financial arrangement was entered into was necessary and incidental to the business of the partnership; and
b: the partnership does not derive income from a business of holding financial arrangements. Exiting partner: excluded payment
2: The amount of consideration paid or payable to the exiting partner for the relevant financial arrangement or excepted financial arrangement is excluded income of the exiting partner. The exiting partner is, for the relevant financial arrangement, a party that is not required to calculate a base price adjustment, despite section EW 29 (When calculation of base price adjustment required). Exiting partner: no deduction
3: The exiting partner is denied any deduction in relation to the relevant financial arrangement or excepted financial arrangement for the income year in which the disposal of the financial arrangement or excepted financial arrangement occurs and later income years. Entering partner: no deduction
4: The entering partner is denied any deduction for the amount of consideration paid or payable to the exiting partner for the relevant financial arrangement or excepted financial arrangement. Entering partner: stepping in
5: For the purposes of calculating the income tax liability of an entering partner for the part of the income year after the disposal of the relevant financial arrangement or excepted financial arrangement occurs and later income years (the post-disposal periods Exclusion by election
6: This section does not apply for the partners of a small partnership if they choose that it does not apply, by the small partnership furnishing a joint return of income that ignores sections HG 5 to HG 9 Relationship with section HG 4
7: Section HG 4 deduction disposal entering partner excepted financial arrangement excluded income financial arrangement income tax liability partner partner’s interests partnership small partnership
HG 9: Disposal of short-term agreements for the sale and purchase of property or services
When this section applies
1: This section applies when a person (the exiting partner Exiting partner: excluded payment
2: The amount of consideration paid or payable to the exiting partner for the short-term agreement for the sale and purchase of property or services is excluded income of the exiting partner. Exiting partner: no deduction
3: The exiting partner is denied any deduction in relation to the short-term agreement for the sale and purchase of property or services, to the extent to which the entering partner is allowed a deduction because of subsection (5) Entering partner: no deduction
4: The entering partner is denied any deduction for the amount of consideration paid or payable to the exiting partner for the short-term agreement for the sale and purchase of property or services. Entering partner: stepping in
5: For the purposes of calculating the income tax liability of an entering partner for the part of the income year after the disposal of the short-term agreement for the sale and purchase of property or services occurs and later income years (the post-disposal periods Exclusion by election
6: This section does not apply for the partners of a small partnership if they choose that it does not apply, by the small partnership furnishing a joint return of income that ignores sections HG 5 to HG 9 Relationship with section HG 4
7: Section HG 4 deduction disposal entering partner excluded income income tax liability partner partner’s interests partnership short-term agreement for the sale and purchase of property or services small partnership
HG 10: Disposal of livestock
When this section applies
1: This section applies when a person (the exiting partner
a: the herd scheme:
b: 1 of the cost price, replacement price, or market value methods described in section EC 25 (Cost price, replacement price, or market value). Entering partner: stepping in
2: For the purposes of calculating the income tax liability of an entering partner for the income year in which the disposal of the relevant non-specified or specified livestock occurs and later income years, the entering partner is treated as if they had originally acquired and held the non-specified or specified livestock, not the exiting partner. Exclusion
3: This section does not apply for the partners of a partnership if they choose that it does not apply, by the partnership furnishing a joint return of income that ignores this section. Relationship with section HG 4
4: Section HG 4 cost price disposal entering partner herd scheme income tax liability partner partner’s interests partnership
HG 11: Limitation on deductions by partners in limited partnerships
When this section applies
1: This section applies for a limited partnership and an income year when, but for this section, a deduction by virtue of section HG 2 or HG 12
a: a limited partner of the limited partnership:
b: a general partner of the partnership who—
i: was a limited partner of the limited partnership within 60 days of the last day of the income year; and
ii: is or will be a limited partner of the limited partnership within 60 days after the last day of the income year. No deduction
2: The partner is denied the deduction for an income year to the extent to which their limited partnership deduction for the income year is greater than the amount (the partner’s basis subsection (3) Partner’s basis
3: For the purposes of subsection (2) investments − distributions + income − deductions − disallowed amount. Definition of items in formula
4: The items in the formula are defined in subsections (5) to (9). Investments
5: Investments
a: the market value of capital contributions made by the partner to the limited partnership at the time the relevant contribution is contributed or agreed to be contributed by them:
b: the amount paid by the partner for the assignment of capital contributions to them:
c: the secured amounts. Distributions
6: Distributions
a: the market value of distributions to the partner from the limited partnership:
b: the amount paid to the partner for the assignment of capital contributions by them. Income
7: Income
a: income that the partner has by virtue of section HG 2
b: capital gain amounts under section CD 44(7)(a) (Available capital distribution amount) that the partner would have by virtue of section HG 2 paragraph (a)
c: assessable income that the partner has in previous income years from goods and services they contributed to the limited partnership, if the income is not accounted for under subsection (5) paragraph (a) or (b) of this subsection Deductions
8: Deductions
a: expenditure or loss in previous income years, to the extent to which the expenditure or loss is incurred by virtue of section HG 2 section HG 2
b: capital loss amounts under section CD 44(9) that the partner would have by virtue of section HG 2 section HG 2 paragraph (a)
c: deductions that the partner is allowed in previous income year in relation to assessable income described in subsection (7)(c) subsection (6) paragraphs (a) or (b) Disallowed amounts
9: Disallowed amount subsection (5) Exclusion
10: This section does not deny a partner (the exiting partner Relationship with subject matter
11: This section is modified by sections HZ 3 and HZ 4 Some definitions
12: In this section,— capital contribution limited partnership deduction sections HG 2 and HG 12 partner’s associate
a: a relative of the partner:
b: a company in the same wholly-owned group as the partner secured amounts
a: the amount of the limited partnership’s debt ignoring section HG 2 debt
b: the amount that results from dividing the amount described in paragraph (a)
c: the amount that is the market value of property against which the guarantee or indemnity may be enforced, treating the partner’s interests as having a market value of zero:
d: the proportion of the amount described in paragraph (c) amount capital contribution deduction dividends entering partner FIF FIF income income income year limited partnership deduction net income net loss partner partner’s associate partnership
HG 12: Limitation on deductions by partners in limited partnerships: carry-forward
When this section applies
1: This section applies when, for an income year, a partner is denied a deduction under section HG 11 Carry-forward
2: The partner is allowed a deduction, for an amount for which the partner is denied a deduction under section HG 11 section HG 11 Relationship with subject matter
3: The deduction allowed under this section is subject to section HG 11 amount deduction income year limited partner .
2: For a person who is not a limited partner of a limited partnership registered under the Limited Partnerships Act 2008
20: Section HR 1 repealed
1: Section HR 1 is repealed.
2: For a person who is not a limited partner of a limited partnership registered under the Limited Partnerships Act 2008
21: New sections HZ 3 and HZ 4
1: After section HZ 2, the following is added:
HZ 3: Special partnerships: transition into limited partnerships and limited partnerships deduction rules
When this section applies
1: This section applies when a special partnership under Part 2 of the Partnership Act 1908—
a: is in existence on 1 April 2008; and
b: is terminated and a limited partnership registered under the Limited Partnerships Act 2008 (the new limited partnership No disposal: same partnership
2: No partners’ interests are disposed of merely because of the termination and succession described in subsection (1)(b) Initial basis
3: For the purposes of applying sections HG 11 and HG 12 section HG 11(3)
a: they may choose to use the market value or the accounting book value of the amounts described in section HG 11(3) sections HG 11 and HG 12
b: they may choose to apply section HG 11(3) Initial basis not less than zero
4: If the application of sections HG 11 and HG 12 disposal limited partnership partner partner’s interests partnership
HZ 4: Overseas limited partnerships: transition into limited partnerships deduction rules
When this section applies
1: This section applies when a limited partnership described in paragraphs (a) and (b) limited partnership overseas limited partnership relevant partner sections HG 11 and HG 12 Initial basis
2: For the purposes of applying sections HG 11 and HG 12 section HG 11
a: they may choose to use the market value or the accounting book value of the amounts described in section HG 11 sections HG 11 and HG 12
b: they may choose to apply section HG 11 Initial basis not less than zero
3: If the application of sections HG 11 and HG 12 limited partnership partner partnership .
2: For a person who is not a limited partner of a limited partnership registered under the Limited Partnerships Act 2008
22: When unincorporated bodies hold certificates
1: In section RE 30, the definition of partnership partner
2: For a person who is not a limited partner in a limited partnership registered under the Limited Partnerships Act 2008
23: Definitions
1: This section amends section YA 1.
2: After the definition of cancellation capital contribution section HG 11(12) .
3: In the definition of company
ab: does not include a partnership:
ac: includes a listed limited partnership:
ad: includes a foreign corporate limited partnership: .
4: In the definition of dispose subpart subpart:
h: for a partner,—
i: includes surrendering or extinguishing some or all of their partner’s interests:
ii: does not include when their partner’s interests may be treated as disposed of by operation of law because another partner disposes of that partner’s interests, unless section HG 4 .
5: After the definition of engaged in full-time work entering partner
a: means a person who acquires a partner’s interests in a partnership:
b: includes a person who is already a partner in the partnership when they acquire another partner’s interests .
6: After the definition of foreign company foreign corporate limited partnership
a: meets the definition of overseas limited partnership section 4
b: is treated as a separate legal entity under the laws (other than taxation laws) of the country, territory, or jurisdiction where it is established .
7: After the definition of general limitation general partner
a: means a general partner of a limited partnership:
b: includes a general partner of an overseas limited partnership section 4 .
8: After the definition of limited attribution company limited partner overseas limited partnership section 4 limited partnership
a: means a limited partnership registered under the Limited Partnerships Act 2008; and
b: includes an overseas limited partnership section 4
c: despite paragraph (a) or (b) limited partnership net deduction section HG 11(12) .
9: After the definition of listed horticultural plant listed limited partnership
a: is a limited partnership registered under the Limited Partnerships Act 2008; or
b: meets the definition of overseas limited partnership section 4 .
10: After the definition of New Zealand-new asset New Zealand partnership
a: is a limited partnership registered under the Limited Partnerships Act 2008; or
b: has 50% or more of its partners’ interests in capital, by value, held by New Zealand residents; or
c: has its centre of management in New Zealand ignoring section HG 2 .
11: The definitions of partner partnership partner
a: means a person who is a member of the partnership:
b: includes—
i: a limited partner of a limited partnership:
ii: a general partner of a limited partnership:
iii: a joint venturer or a co-owner, if they make the relevant choice to be treated as partnership: partner’s associate section HG 11(12) partner’s interests section HG 2 partnership
a: a group of 2 or more persons who have, between themselves, the relationship described in section 4(1) of the Partnership Act 1908:
b: a joint venture, if the joint venturers all choose to be treated as a partnership for the purposes of this Act and the Tax Administration Act 1994:
c: co-owners of property, other than persons who are co-owners only because they are shareholders of the same company, or settlors, trustees, or beneficiaries of the same trust, if the co-owners all choose to be treated as a partnership for the purposes of this Act and the Tax Administration Act 1994:
d: a limited partnership partnership share .
12: In the definition of relative personal services), personal services), HG 11(12)
13: After the definition of small-business person small partnership .
14: In the definition of turnover livestock)) livestock)) and section HG 6 .
15: For a person who is not a limited partner of a limited partnership registered under the Limited Partnerships Act 2008
24: Partnerships: partnership and partner
1: After section YB 16(1), the following is inserted: Exception: limited partners
1B: Subsection (1) does not apply if the partner is a limited partner. Instead, a limited partnership and a limited partner are associated persons if the limited partner has a partnership share of 25% or more in a right, obligation, or other property, status, or thing of the limited partnership.
2: In section YB 16, in the list of defined terms, limited partner limited partnership partner partnership partnership share
3: For a person who is not a limited partner of a limited partnership registered under the Limited Partnerships Act 2008
25: Partnerships: partnership and associate of partner
1: After section YB 17(1), the following is inserted: Exception: limited partners
1B: Subsection (1) does not apply if the partner is a limited partner. Instead, a limited partnership and a person associated with a limited partner are associated persons if the limited partner has a partnership share of 25% or more in a right, obligation, or other property, status, or thing of the limited partnership.
2: In section YB 17, in the list of defined terms, limited partner limited partnership partner partnership partnership share
3: For a person who is not a limited partner of a limited partnership registered under the Limited Partnerships Act 2008
26: Classes of income treated as having New Zealand source
1: After section YD 4(17), the following is inserted: Income from New Zealand partnerships
17B: Income has a source in New Zealand if, treating all of the partners of a New Zealand partnership as resident in New Zealand, the income is treated as having a source in New Zealand under another provision of this section. The application of the other provisions of this section is unaffected if this subsection does not apply.
2: In section YD 4, in the list of defined terms, New Zealand partnership partner
3: For a person who is not a limited partner of a limited partnership registered under the Limited Partnerships Act 2008
2: Amendments to other revenue Acts
Tax Administration Act 1994
27: Tax Administration Act 1994
Sections 28 29 Tax Administration Act 1994 2008-04-01 Tax Administration Act 1994
28: Keeping of business records
1: In section 22(4)(b) liquidated. liquidated:
c: by a partner of a partnership, if the partnership retains the records that the partner would be required to retain but for this paragraph.
2: For a person who is not a limited partner of a limited partnership registered under the Limited Partnerships Act 2008
29: Section 42 replaced
1: Section 42
42: Returns by joint venturers, partners, and partnerships
1: This section applies when 2 or more people derive income jointly or have deductions jointly.
2: Despite subsection (1)
3: In the case of partners,—
a: if the partnership of the partner is a limited partnership registered under the Limited Partnerships Act 2008 or is a partnership that would carry on a business in New Zealand ignoring section HG 2
i: the total amount of income derived by the partners as members of the partnership; and
ii: the partners’ partnership shares in the income; and
iii: a summary of the deductions of each partner:
b: there is no joint assessment, but each partner must make a separate return of income under section 33, including the income derived by the partner as a member of the partnership, and the partner’s deductions. Each partner is separately assessed.
4: In any other case, each person shall make a separate return taking into account that person’s share of the joint income and deductions. Each person is separately assessed.
2: For a person who is not a limited partner of a limited partnership registered under the Limited Partnerships Act 2008 Goods and Services Tax Act 1985
30: Interpretation
In section 2(1) company elsewhere elsewhere, and any limited partnership registered under the Limited Partnerships Act 2008 2008-04-01 Goods and Services Tax Act 1985