Tax Administration Amendment Act (No 2) 1996

1: Short Title
This Act may be cited as the Tax Administration Amendment Act (No 2) 1996, and shall be read together with and deemed part of the Tax Administration Act 1994
2: Application date for provisions in this Act
1: Except as otherwise provided in this Act, the provisions of this Act apply with respect to tax obligations, liabilities, and rights that are to be performed under or arise in respect of—
a: The Income Tax Act 1994
b: The Goods and Services Tax Act 1985
c: The Estate and Gift Duties Act 1968
d: The Gaming Duties Act 1971
e: The Stamp and Cheque Duties Act 1971
i: Every instrument of conveyance executed; and
ii: Every bill of exchange made, drawn, or prepaid under section 81 82 83
iii: Every liable transaction entered into— on or after 1 April 1997.
2: Sections 5 9 to 15 16(1) (2) 18 to 34 37 to 42 47 55 65
3: Where—
a: A provision of this Act amends, inserts, or repeals a provision ( the relevant provision
b: The relevant provision is referred to in, or necessary for the purposes of, another provision ( the other provision
c: The other provision is amended, inserted, or repealed by this Act with effect on and after an application date that is not the same as the general application date for the relevant provision,— the provision of this Act that amends, inserts, or repeals the relevant provision has, for all purposes in regard to the other provision, the same application date as the other provision.
3: Interpretation
This section substantially amended, as from 1 October 1996, s 3
4: Construction of certain provisions
This section inserted, as from 1 October 1996, s 4A
5: Authorisation to take securities
This section inserted, as from 1 October 1996, s 7A
6: New
Part 2A This section inserted, as from 1 October 1996, Part 2A 15A 15B
7: Court orders for production of information or return
This section inserted, as from 1 October 1996, s 17A
8: Privilege for confidential communication between legal practitioners and their clients
Section 20 subsection (1) (4) 200, 213, and 214 143(1)(b), 143A(1)(b), 143B(1)(b), and 143F
9: Information requisitions in relation to offshore payments
This section amended, as from 1 October 1996, s 21
10: Commissioner may, in certain cases, demand special returns and make special assessments
This section amended, as from 1 October 1996, s 44(3)
11: New
Part 4A This section inserted, as from 1 October 1996, Part 4A 89A to 89M
12: Determinations in relation to financial arrangements
This section repealed, as from 1 October 1996, s 90(4) (5)
13: Determinations in relation to petroleum mining operations
This section repealed, as from 1 October 1996, s 91(4) (5) (7)
14: Commissioner to make assessments, determinations of loss, and other determinations
1: This subsection amended, as from 1 October 1996, s 92(2)
2: This subsection amended, as from 1 October 1996, s 92(5)
15: Assessment of fringe benefit tax
1: This subsection amended, as from 1 October 1996, s 93(1)
2: This subsection amended, as from 1 October 1996, s 93(3)
16: Assessment of qualifying company election tax and late payment penalty
1: This subsection substituted, as from 1 October 1996, s 94(1)
2: This subsection amended, as from 1 October 1996, s 94(3)
17: New sections inserted
This section inserted, as from 1 October 1996, ss 94A 94B
18: Assessment of withdrawal tax
1: This subsection amended, as from 1 October 1996, s 95(1)
2: This subsection amended, as from 1 October 1996, s 95(3)
19: Assessment of New Zealand superannuitant surcharge
1: This subsection amended, as from 1 October 1996, s 96(1)
2: This subsection amended, as from 1 October 1996, s 96(3)
20: Assessment of imputation penalty tax
1: This subsection amended, as from 1 October 1996, s 97(2)
2: This subsection amended, as from 1 October 1996, s 97(4)
21: Assessment of specified superannuation contribution withholding tax
1: This subsection amended, as from 1 October 1996, s 98(1)
2: This subsection amended, as from 1 October 1996, s 98(3)
22: Assessment of resident withholding tax deductions
1: This subsection amended, as from 1 October 1996, s 99(1)
2: This subsection amended, as from 1 October 1996, s 99(3)
23: Assessment of non-resident withholding tax
1: This subsection amended, as from 1 October 1996, s 100(1)
2: This subsection amended, as from 1 October 1996, s 100(4)
24: Assessment of further income tax
1: This subsection amended, as from 1 October 1996, s 101(1)
2: This subsection amended, as from 1 October 1996, s 101(3) Subsection (2)(b) repealed 1 October 1996 121(1) Taxation (Remedial Provisions) Act 1997
25: Assessment of dividend withholding payment
1: This subsection amended, as from 1 October 1996, s 102(1)
2: This subsection amended, as from 1 October 1996, s 102(3)
26: Assessment of further dividend withholding payment
1: This subsection amended, as from 1 October 1996, s 103(1)
2: This subsection amended, as from 1 October 1996, s 103(2)
27: Assessment of dividend withholding payment penalty tax
1: This subsection amended, as from 1 October 1996, s 104(2)
2: This subsection amended, as from 1 October 1996, s 104(4)
28: Assessment where default made in furnishing returns
This section amended, as from 1 October 1996, s 106(1)
29: New sections substituted
This section substituted s 108 ss 108A 108B
30: Disputable decisions deemed correct except in proceedings
This section substituted, as from 1 October 1996, s 109
31: Evidence of returns and assessments
This section amended, as from 1 October 1996, s 110(2)
32: Validity of assessment not affected by failure to comply with Act
This section amended, as from 1 October 1996, s 114
33: Foreign tax credit determination deemed correct except in proceedings on objection
Section 117
34: Commissioner may determine amount of provisional tax
This section amended, as from 1 October 1996, s 119(5)
35: Interest on tax overpaid
1: This section amended, as from 1 April 1995, s 122(7)
36: New
Part 7
1: This subsection substituted Part 7
2: Notwithstanding subsection (1) Part 7 section 42 Student Loan Scheme Act 1992 Part 7
37: Application of
Part 8 This section inserted, as from 1 October 1996, s 124A
38: Certain rights of objection not conferred
This section amended, as from 1 October 1996, s 125
39: New sections substituted
This section substituted s 128 s 128A
40: Wrong PAYE deduction determination a ground for objection
This section substituted s 133
41: Test case procedure
Section 137(3) similar objection or challenge
42: New
Part 8A This section inserted, as from 1 October 1996, Part 8A ss 138A to 138S
43: New
Part 9 This section substituted Part 9
44: Recovery of civil penalties
This section inserted s 156A
45: Deduction of tax from payments due to defaulters
1: Section 157 subsection (1)
1: Where any taxpayer has made default in the payment to the Commissioner of any income tax (or any part of any income tax) or any interest under Part VII
a: Deduct or extract, in one sum, from any amount that is, or becomes, an amount payable in relation to the taxpayer such sum as is equal to the lesser of—
i: The amount that, according to the notice, is required to be deducted or extracted:
ii: The amount that, at the time at which the deduction or extraction is required to be made in compliance with the notice, is the amount payable in relation to the taxpayer:
b: Subject to subsection (3)
i: The amount that, at the time at which the deduction or extraction is required to be made in compliance with the notice, is the amount required to be so deducted or extracted:
ii: The amount that, at the time at which, according to the notice, the amount of the instalment is required to be deducted or extracted, is the amount payable,— and require that person to pay to the Commissioner, within such time as is specified in the notice, every sum so deducted or extracted, to the credit of,—
c: To the extent that that sum is in respect of or in relation to income tax (or any part of any income tax) payable on taxable income or any interest under Part VII
d: To the extent that that sum is in respect of or in relation to the whole or any part of a tax deduction or interest payable to the Commissioner or a civil penalty, an account maintained by the Commissioner in relation to that tax deduction or that interest or that civil penalty.
2: Section 157(10) penalty
46: Application of
Parts 7 9 This section inserted s 157A
47: Proceedings not affected by vacancy or change in office of Commissioner
This section amended, as from 1 October 1996, s 162
48: Recovery of refund due to excess tax credits allowed
This section inserted s 165A
49: Recovery of tax deductions from employers
Section 167(4) additional tax or any penal tax late payment penalty or any shortfall penalty
50: Unpaid tax deductions, etc, to constitute charge on employer's property
Section 169(1) additional tax or penal tax late payment penalty or shortfall penalty
51: Unpaid resident withholding tax deductions constitute charge on payer's property
Section 172(1) additional tax or penal tax late payment penalty or shortfall penalty
52: Power of Commissioner in respect of small amounts of refunds or tax payable
Section 174 subsection (1)
2: Subsection (1)
53: Partial refunds of GST
This section inserted s 174A
54: Small amounts of additional tax, etc, not to be charged
Section 175
55: Discretion to grant relief from income tax or fringe benefit tax in cases of financial hardship
This section amended, as from 1 October 1996, s 177(4)
56: Remission of underestimation penalty tax
1: Section 178(1)
a: By omitting the words additional tax under section 144 underestimation penalty tax under section 140A
b: By repealing paragraph (c)
c: The adoption by the taxpayer of an incorrect tax position which is corrected before the taxpayer takes the taxpayer's tax position by providing a tax return for the income year; or :
c: By omitting the words shall remit the additional tax or any appropriate part of the additional tax may remit the underestimation penalty tax
2: Section 178(2)
a: By omitting the words additional tax in respect of that income year under section 144 underestimation penalty tax in respect of that income year under section 140A
b: By omitting the words shall remit the additional tax imposed in accordance with section 144 may remit the underestimation penalty tax, or such part of the underestimation penalty tax
3: Section 178 subsections (4) (5)
5: Notwithstanding subsection (2)
a: The timing of the derivation of income by the taxpayer; or
b: The incurring of expenditure which is deductible by the taxpayer— has been altered for the purpose, or for purposes including the purpose, of remission of a penalty.
57: Relief from additional tax or incremental tax
Section 179
58: Remissions and refunds of imputation penalty tax
1: Section 180(1) section 153 section 140B
2: Section 180(2) penalty by way of additional tax imposed under section 149(1) late payment penalty imposed under section 139B
3: Section 180(3) any penalty by way of additional tax imposed under section 148 any late payment penalty imposed under section 139B
59: Remissions and refunds of dividend withholding payment penalty tax
1: Section 181 section 154 section 140C
2: Section 181(2) penalty by way of additional tax imposed under section 152 late payment penalty imposed under section 139B
3: Section 181(3) any penalty by way of additional tax imposed under section 151 any late payment penalty imposed under section 139B
60: Relief from additional tax incurred due to default in payment of tax
Section 182
61: Obligation to pay tax on foreign investment income able to be suspended
1: Section 183(1)(h) section 121 Part VII
2: Section 183(2) section 139(3) sections 120S and 142
62: New sections inserted
This section inserted ss 183A to 183I
63: Payment out of Crown Bank Account
Section 185 paragraphs (c) (d)
c: By way of interest under this Act; or .
64: Offences and penalties
Part 12
65: Regulations—income tax related
This section amended, as from 1 October 1996, s 225(1)(d)