Taxation (GST and Miscellaneous Provisions) Act 2000

1: Title
This Act is the Taxation (GST and Miscellaneous Provisions) Act 2000.
2: Commencement
This Act comes into force on the day on which it receives the Royal assent.
1: Amendments to Income Tax Act 1994 Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
3: Income Tax Act 1994 Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
4: Satisfaction of income tax liability
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
5: Non-profit bodies' and charities' exempt income
Subsection (2) amended 268(2) Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 by substituting the expression 1997-98 1995-96 10 October 2000 Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
6: New
section CD 7 Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
7: Exclusions from term dividends
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
8: Amount of dividend includes credits and certain foreign tax
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
9: New
section DI 3A Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
10: New
section DJ 19 Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
11: Year in which non-competitive levies and premiums under
Accident Insurance Act 1998 Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
12: Accounting for goods and services tax
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
13: New
section ED 6A Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
14: Disposal of trading stock on sale of business
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
15: Rules for non-market transactions
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
16: Section EH 18 Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
17: Sale for no consideration or for consideration less than market price
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
18: New section EN 8 inserted
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
19: New
section EO 6 Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
20: Interpretation
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
21: Agreements purporting to alter incidence of tax to be void
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
22: New
sections GC 14B to GC 14E Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
23: Taxable income to be calculated generally as if group were single company
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
24: Group investment funds
Subsection (2) amended 268(2) Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 by substituting the expression 1997-98 1995-96 10 October 2000 Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
25: New
section HF 2 Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
26: Interpretation
Subsection (2) amended 268(2) Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 by substituting the expression 1997-98 1995-96 10 October 2000 Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
27: Trustee income
Subsection (2) amended 268(2) Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 by substituting the expression 1997-98 1995-96 10 October 2000 Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
28: Rebate for gifts of money
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
29: Allowance of credit of tax in end of year assessment
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
30: Credit of tax by instalments
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
31: Commissioner to deliver credit of tax by instalments
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
32: Credits in respect of tax paid in a country or territory outside New Zealand
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
33: New
section LC 1A Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
34: Section LC 3 Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
35: Information for credit to be furnished within 4 years
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
36: Ascertainment of New Zealand income tax liability on foreign source income
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
37: Tax deductions to be credited against tax assessed
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
38: Lost tax deduction certificates
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
39: Tax deductions for which no certificate issued
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
40: Special rules for holding companies
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
41: Amount of provisional tax payable
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
42: Election to be a provisional taxpayer
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
43: Amount of provisional tax instalments in transitional year
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
44: New
section MB 9A Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
45: Credits arising to imputation credit account
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
46: Debits arising to imputation credit account
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
47: Assessment and payment of tax
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
48: Application of RWT rules
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
49: Certificates of exemption
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
50: Definitions
Subsection (23) amended 268(2) Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 by substituting the expression 1997-98 1995-96 10 October 2000 Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
51: Meaning of source deduction payment—shareholder-employees of close companies
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
52: Modifications to measurement of voting and market value interests in cases of continuity provisions
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
53: Further definitions of associated persons
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
54: Classes of income deemed to be derived from New Zealand
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
55: References to income years in particular provisions
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
56: References to particular regimes in former Act, etc
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
57: Schedule 13 Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
58: Schedule 18 Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
2: Amendments to Tax Administration Act 1994
59: Tax Administration Act 1994
This Part amends the Tax Administration Act 1994
60: Interpretation
1: This section amends section 3(1)
2: In paragraph (c) new provisional taxpayer assessable income gross income
3: The definition of new provisional taxpayer
4: In the definition of tax paragraph (b)
c: for the purpose of sections 6, 6A and 6B
d: for the purpose of sections 176 and 177
i: a tax, levy or duty of any type imposed by a tax law, regardless of how the tax, levy or duty is described:
ii: an amount deemed by a tax law to be a tax, levy or duty:
iii: any other amount payable to the Commissioner under a tax law, including:
A: a dividend withholding payment:
B: an amount imposed under section 157 of this Act section 43 of the Goods and Services Tax Act 1985
C: an amount payable by a payer, as defined in section 153 of the Child Support Act 1991 Part X of that Act
D: a repayment deduction, as defined in section 2 of the Student Loan Scheme Act 1992 section 46 of that Act
iv: a tax prescribed in section 173D
v: interest imposed under Part VII
vi: a civil penalty: but does not include—
vii: the approved issuer levy, as defined in section 86F of the Stamp and Cheque Duties Act 1971
viii: financial support, as defined in section 2(1) of the Child Support Act 1991
ix: a repayment obligation, as defined in section 2 of the Student Loan Scheme Act 1992
5: Subsection (2)
6: Subsection (3)
7: In subsection (4)
a: new paragraph (c)
b: new paragraph (d) section 176 177 Subsection (7)(b) substituted 76(2) Taxation (Beneficiary Income of Minors, Services-Related Payments and Remedial Matters) Act 2001 10 October 2000
61: Annual income tax returns not required
1: After section 33A(1)(b)(ix)
ixa: salary or wages from employment as a casual agricultural employee, if the employee has used the CAE
2: In section 33A(1)(g) year. year; and
h: is not eligible to receive a full base interest write-off or a base interest reduction under sections 39 40 of the Student Loan Scheme Act 1992
3: Subsection (1)
4: Subsection (2)
62: Returns by person claiming housekeeper or charitable rebates
1: Section 41A(2)
2: The total amount of the refunds, including refunds made that were subject to an application under subsection (6AA)
2: In section 41A(6) in the 6 months from 1 April to 30 September in the period from 1 April to 31 December
3: In section 41A(6) in the period from 1 April to 31 December in the 6 months from 1 April to 30 September
4: After section 41A(6)
6AA: Despite subsection (6)
a: before the end of the income year to which the application relates; or
b: after the period during which a taxpayer may make an application.
6AB: For the purpose of subsection (6AA)
a: a taxpayer leaving New Zealand, permanently or for a significant length of time:
b: a trustee of a deceased person's estate who wishes to wind up the estate.
5: Subsections (1) (4)
6: Subsection (2)
7: Subsection (3)
63: Notification required that taxpayer not subject to this Part
1: Section 80B(2)
2: The information required under subsection (1)
a: for a person to whom section NC 17(2)(a) of the Income Tax Act 1994
b: for a person to whom section NC 17(2)(b) of the Income Tax Act 1994
2: In section 80B(3) section NC 17 section NC 17(2)
3: Subsections (1) (2)
64: Natural person to request income statement
1: Section 80C(2)
2: A request required under subsection (1)
a: for a person to whom section NC 17(2)(a) of the Income Tax Act 1994
b: for a person to whom section NC 17(2)(b) of the Income Tax Act 1994
2: In section 80C(3) section NC 17 section NC 17(2)
3: Subsections (1) (2)
65: Commissioner must issue income statement
1: In section 80D(2) annual
2: Subsection (1)
66: Taxpayer obligations and assessment on receipt of income statement
1: Section 80F(2)
2: A person must inform the Commissioner by the later of—
a: for a person to whom section NC 17(2)(a) of the Income Tax Act 1994
i: the 7 February next following the income year to which the income statement relates; and
ii: the date that occurs 2 months after the date of issue of the income statement:
b: for a person to whom section NC 17(2)(b) of the Income Tax Act 1994
i: the 7 April next following the income year to which the income statement relates; and
ii: the date that occurs 2 months after the date of issue of the income statement.
2: In section 80F(3) section NC 17 section NC 17(2)
3: Subsections (1) (2)
67: Income statement deemed general assessment
1: Section 80H(3)(a)
a: for a person to whom section NC 17(2)(a) of the Income Tax Act 1994
ab: for a person to whom section NC 17(2)(b) of the Income Tax Act 1994
2: Section 80H(4)
4: A general assessment under subsection (1)
a: for a person to whom section NC 17(2)(a) of the Income Tax Act 1994 section NC 17(3)
b: for a person to whom section NC 17(2)(b) of the Income Tax Act 1994 section NC 17(3)
3: In section 80H(5) section NC 17 section NC 17(2)
4: After section 80H(5)
6: If a person is first issued with an income statement for an income year after their terminal tax date or the date their income tax is payable under section NC 17(3) subsection (1)
a: treated as having been made on the date that is 2 months after the date the first income statement is issued; and
b: treated as reflecting the tax position taken in the last income statement issued by the Commissioner in that 2-month period.
5: Subsections (1) to (4)
68: Determinations in relation to financial arrangements
1: In section 90(1) paragraph (c) EH 1(5) EH 1(6)
2: In section 90(1)(d) (5)(a) (6)(a)
3: In section 90(1)(e) EH 1(6) EH 1(7)
4: In section 90(1)(f) EH 1(7) EH 1(8)
5: Subsections (1) to (4)
69: Amount of provisional tax based on 1997-98 or earlier income year
1: Section 119A
2: Subsection (1)
70: Instalments of and due dates for provisional tax
1: In section 120K(1)
2: In section 120K(3) paragraph (a)
3: Other than in a transitional year, a new provisional taxpayer's residual income tax for an income year is to be treated for the purpose of this Part as being due and payable—.
3: Section 120K(4)
4: A provisional taxpayer's residual income tax for an income year is due and payable in one instalment on the taxpayer's terminal tax date if—
a: the provisional taxpayer is a natural person, other than in the person's capacity as a trustee; and
b: the provisional taxpayer's residual income tax is less than $30,000 in the income year; and
c: the provisional taxpayer has not provided an estimate of the person's residual income tax under section MB 3 of the Income Tax Act 1994
d: the provisional taxpayer has not, at any time during the income year, held a valid certificate of exemption issued under section NF 9(12) of the Income Tax Act 1994
4: Section 120K(4A)
4A: Other than a natural person to whom subsection (4)
a: on the instalment date or dates occurring after the new provisional taxpayer's first business day in accordance with section MB 5A of the Income Tax Act 1994
b: subject to paragraph (c) paragraph (a) 4 X RIT ———— m where—
RIT: is the residual income tax for the transitional year; and
m: is the number of months in the transitional year:
c: the amount payable on a final instalment date is determined in accordance with section MB 5A of the Income Tax Act 1994 paragraph (b)
5: After section 120K(4A)
4AB: A new provisional taxpayer's residual income tax for a transitional year is due and payable as follows:
a: on the instalment date or dates occurring after the new provisional taxpayer's first business day in accordance with section MB 5A of the Income Tax Act 1994
b: subject to paragraph (c) paragraph (a) 4 X RIT ———— m where—
RIT: is the residual income tax for the transitional year; and
m: is the number of months in the transitional year:
c: the amount payable on a final instalment date is determined in accordance with section MB 5A of the Income Tax Act 1994 paragraph (b)
6: Subsections (1) and (3)
7: Subsection (2)
8: Subsections (4) (5) Subsection (6) amended 268(3) Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 by substituting the expression and (3) , (3) and (4) 10 October 2000 Subsection (8) amended 268(4) by substituting the expression Subsections (4) and (5) Subsection (5) 10 October 2000
71: Application of Part 8
1: In section 124A(3) Part IIIA Part III
2: Subsection (1)
72: Late payment penalty
1: In section 139B(2)(b) 2% 1%
2: Subsection (1)
73: Late payment penalty and provisional tax
1: In section 139C(2), in the definition of provisional tax payable (a)
a: in respect of an instalment date and a taxpayer to whom section MB 5 of the Income Tax Act 1994
i: the amount calculated as payable under section MB 5
ii: the amount calculated as payable under section MB 5 section MB 2, or sections MB 2AA or MB 2AB
aa: in respect of an instalment date and a taxpayer to whom section MB 5A of the Income Tax Act 1994
i: the amount calculated as payable under section MB 5A
ii: the amount calculated as payable under section MB 5A section MB 5A(5) and MB 5A(7)
2: Subsection (1)
74: Tax shortfalls
1: In section 141(7)(c) section OD 8 section OD 8(1)
2: Subsection (1)
75: Absolute liability offences
1: After section 143(1)(b)
ba: does not provide a tax invoice as required by section 24 of the Goods and Services Tax Act 1985
2: Subsection (1)
76: Relief in cases of serious hardship
1: Section 176(6) 176(7)
2: Subsection (1)
77: Discretion to grant relief from income tax or fringe benefit tax in cases of financial hardship
1: In section 177(1) in writing
2: After section 177(1)
1A: An application for relief by way of remission must be in writing.
3: Subsections (1) (2)
78: Section 177 replaced
1: Section 177
177: Discretion to grant relief in cases of financial hardship
1: A taxpayer, or a person on a taxpayer's behalf, may apply for relief if the taxpayer—
a: is, or is likely to become, liable for payment of tax; and
b: is at the time of applying, in financial difficulties.
2: An application for relief by way of remission must be in writing.
3: If subsection (1)
a: remitting all or part of the tax; or
b: entering into an arrangement with the taxpayer for the payment of all or part of the tax in one or more payments; or
c: applying both paragraphs (a) and (b)
4: The Commissioner may, if the Commissioner thinks fit, issue an amended assessment to give effect to any action taken under subsection (3)
5: The Commissioner may cancel all or part of the relief granted under this section if—
a: the Commissioner has reason to believe that the information provided by the taxpayer to enable the Commissioner to apply this section is misleading in any respect such that the Commissioner considers that it was inappropriate for all or part of the relief to have been granted; or
b: the Commissioner receives further information relating to the taxpayer's affairs, as they were on the date on which relief was granted, such that the Commissioner considers that it was inappropriate for all or part of the relief to have been granted.
6: If subsection (5)
7: A Commissioner's decision to grant or cancel relief may not be objected to or challenged.
2: Subsection (1)
79: Cancellation of interest
1: In section 183C(4) 183C(5) 15th 30th
2: Subsection (1)
80: Refund of tax paid in excess made by direct credit to bank account
1: Section 184A(5)
5: In this section, tax
a: an amount defined as tax in section 3(1)(a)
b: a refund allowed under section 41A
c: the approved issuer levy, as defined in section 86F of the Stamp and Cheque Duties Act 1971
d: cheque duty, as provided for in section 77 of the Stamp and Cheque Duties Act 1971
e: financial support, as defined in section 2 of the Child Support Act 1991
f: a repayment obligation, as defined in section 2 of the Student Loan Scheme Act 1992
2: Subsection (1) Subsection (2) substituted 10 October 2000 76(3) Taxation (Beneficiary Income of Minors, Services-Related Payments and Remedial Matters) Act 2001
3: Amendments to Goods and Services Tax Act 1985
81: Goods and Services Tax Act 1985
This Part amends the Goods and Services Tax Act 1985
82: Interpretation
1: This section amends section 2
2: In subsection (1) associated persons sections 12 and 13 section 12
3: The definitions of associated persons input tax
4: The definition of due date due date section 19C(1) or 23(1)
5: After the definition of local authority member
6: After the definition of output tax partnership Partnership Act 1908
7: In the definition of resident (b)
b: a person who is an unincorporated body is deemed to be resident in New Zealand if the body has its centre of administrative management in New Zealand.
8: The definition of taxable supply taxable supply section 8 section 11, 11A or 11B
9: After the definition of unconditional gift unincorporated body
10: Subsection (2)
11: Subsection (3)
12: Subsections (4) to (9)
83: New section 2A inserted
1: After section 2
2A: Meaning of associated persons
1: In this Act, associated persons
a: two companies if a group of persons—
i: has voting interests in each of those companies of 50% or more when added together; or
ii: has market value interests in each of those companies of 50% or more when added together and a market value circumstance exists in respect of either company; or
iii: has control of each of those companies by any other means whatsoever:
b: a company and a person other than a company if the person has—
i: a voting interest in the company of 25% or more; or
ii: a market value interest in the company of 25% or more and a market value circumstance exists in respect of the company:
c: two persons who are relatives:
d: a partnership and a partner in the partnership:
e: a partnership and a person if the person is associated with a partner in the partnership:
f: a trustee of a trust and a person who has benefited or is eligible to benefit under the trust, except if, in relation to a supply of goods and services—
i: the trustee is a charitable or non-profit body with wholly or principally charitable, benevolent, philanthropic or cultural purposes; and
ii: the supply is made in carrying out these purposes:
g: a trustee of a trust and a settlor of the trust:
h: a trustee of a trust and a trustee of another trust if the same person is a settlor of both trusts:
i: a person (person A) and another person (person B) if—
i: person B is associated with a third person (person C) under any one of paragraphs (a) to (h)
ii: person C is associated with person A under any one of paragraphs (a) to (h)
2: For the purpose of subsection (1)(a) group of persons section OB 1 of the Income Tax Act 1994
3: For the purpose of subsection (1)(a) and (1)(b)
a: market value circumstance section OB 1 of the Income Tax Act 1994 this Act paragraph (a)(v) the Goods and Services Tax Act 1985
b: market value interest paragraph (a) of the definition of market value interest
c: voting interest paragraph (a) of the definition of voting interest
4: For the purpose of subsection (1)(a) and (1)(b) associated persons subsection (1)(c) to (1)(i)
5: For the purpose of subsection (1)(c) relative
6: In subsection (5)
a: persons are connected by blood relationship if they are within the second degree of relationship:
b: persons are connected by marriage if—
i: one person is married to the other or to a person who is connected by blood relationship to the other; or
ii: the persons are in a relationship in the nature of marriage:
c: persons are connected by adoption if one has been adopted as the child of the other or as a child of a person who is within the first degree of relationship to the other.
7: For the purpose of subsection (1)(g) and (1)(h) settlor section OB 1 of the Income Tax Act 1994
8: Subsection (1)(i) subsection (1)(c)
2: Subsection (1)
84: Meaning of term financial services
1: Section 3(1)(k)
k: the provision or assignment of a futures contract through a defined market or at arm's length if—
i: the contract does not provide for the delivery of a commodity; or
ii: the contract provides for the delivery of a commodity and the supply of the commodity is an exempt supply; or
iii: the contract provides for the delivery of money:
kaa: the provision of a financial option: .
2: Section 3(4)
4: Despite this section, financial services
a: the assignment or other transfer of a right to receive payment in relation to a taxable supply if, as a result of the assignment or transfer, output tax for the supply would not be or become attributable to a taxable period for the purpose of section 20(4)
b: debt collection services provided by a person other than the creditor whose debt is being collected.
3: Subsections (1) (2)
85: New section 3A inserted
1: After section 3
3A: Meaning of input tax
1: Input tax
a: tax charged under section 8(1)
b: tax levied under section 12(1) of this Act Customs and Excise Act 1996
c: an amount determined under subsection (3) subsection (2)
2: In the case of a supply by way of sale to a registered person of secondhand goods situated in New Zealand, the amount of input tax is determined under subsection (3) if—
a: the supply is not a taxable supply; and
b: the goods are not supplied by a supplier who—
i: is not resident in New Zealand; and
ii: has previously supplied the goods to a registered person who has entered them for home consumption under the Customs and Excise Act 1996
c: the goods are acquired for the principal purpose of making taxable supplies.
3: The amount of input tax is—
a: if the supplier and the recipient are associated persons, the lesser of—
i: the tax included in the original cost of the goods to the supplier; and
ii: the tax fraction of the purchase price; and
iii: the tax fraction of the open market value of the supply; or
b: if the supplier and the recipient are associated persons and the supplier is deemed to have made a supply of the goods under section 5(3) section 10(7A)
i: the tax fraction of the open market value of the deemed supply under section 5(3)
ii: the tax fraction of the purchase price; and
iii: the tax fraction of the open market value of the supply; or
c: if the supplier and the recipient are associated persons and the supplier is deemed to have made a supply of the goods under section 5(3) section 10(8)
i: the tax fraction of the valuation under section 10(8) section 5(3)
ii: the tax fraction of the purchase price; and
iii: the tax fraction of the open market value of the supply; or
d: if the supplier and the recipient are not associated persons and the supply is not the only matter to which the consideration relates, the lesser of—
i: the tax fraction of the purchase price; and
ii: the tax fraction of the open market value of the supply; or
e: in all other cases, the tax fraction of the consideration in money for the supply.
4: For the purpose of subsection (1)(b) applied
a: the delivery or the arranging of the delivery of the goods to a person in New Zealand; or
b: the making of the delivery of the goods to a person in New Zealand more easily achieved.
5: For the purpose of subsection (3) tax fraction
2: Subsection (1)
86: Meaning of term supply
1: Section 5(3A)
2: In the proviso to section 5(7)(a) 533,
3: Section 5(7)(b)
b: the Chatham Islands Council is treated as supplying goods and services to a person if an amount of council dues, as defined in section 2 of the Chatham Islands Council Act 1995
4: After section 5(11C)
11D: Subsections (11E) to (11I)
11E: The issue of a token, stamp or voucher is treated as a supply of goods and services.
11F: The redemption of a token, stamp or voucher is not treated as a supply of goods and services.
11G: Despite subsection (11F)
a: it is not practical to treat the issue as a supply of goods and services; and
b: the issuer of the token, stamp or voucher and the supplier of the goods or services that are specified in the token, stamp or voucher agree.
11H: Subsection (11G)
11I: Subsection (11G)
a: a postage stamp, as defined in section 2(1) of the Postal Services Act 1998
b: a token, stamp or voucher that gives the recipient the right to receive services described in section 11A(2)
5: In section 5(13)
13: For the purpose of this Act, except for subsection (13B) and section 20(3)
a: on the day the registered person receives the payment; and
b: in the course or furtherance of the registered person's taxable activity: .
6: In the proviso to section 5(13) indemnity
7:
8: Section 5(13B)(b)
b: a deduction under section 20(3)(d)
9: Section 5(14)
14: If a supply is charged with tax under section 8 section 11, 11A or 11B
10: In section 5(17) section 21(5) of this Act section 21F
11: Subsection (1)
12: Subsections (2) (4) to (10)
13: Subsection (3) Subsection (7) repealed 10 October 2000 76(4) Taxation (Beneficiary Income of Minors, Services-Related Payments and Remedial Matters) Act 2001
87: Meaning of term taxable activity
1: Section 6(2)
2: Anything done in connection with the beginning or ending, including a premature ending, of a taxable activity is treated as being carried out in the course or furtherance of the taxable activity.
2: Subsection (1)
88: Time of supply
1: After section 9(2)
2A: Despite subsection (1) section 5(11G)
2B: If section 5(11H)
2: In section 9(6) section 21(2) of this Act section 21C
3: After section 9(7)
8: Despite subsection (1) section 5(7)(a)
a: the date on which an instalment notice is issued if the instalment notice requires payment of an instalment by a particular date:
b: the date on which payment is required by the instalment notice:
c: the date on which payment is received.
4: Subsections (1) to (3)
89: Value of supply of goods and services
1: Section 10(3)
3: Subject to subsections (3A) and (8)
a: the supply is made by a person for no consideration or for a consideration that is less than the open market value of the supply; and
b: the supplier and the recipient are associated persons; and
c: the supply is not a fringe benefit that the supplier has, or is deemed to have, provided or granted under the FBT rules of the Income Tax Act 1994
2: In section 10(3A)
a: registered person person
b: paragraph (b)
b: either—
i: is entitled to make a deduction under section 20(3) section 3A(3)(a)
ii: would have been entitled to make a deduction under section 20(3) section 3A(3)(a)
3: In section 10(4) the proviso to section 11(1) of this Act section 11(3)
4: Section 10(5)
5: Despite subsection (2)
5A: In subsection (5) credit contract cash price Credit Contracts Act 1981
5: In section 10(7) section 21(3) of this Act section 21I(1)
6: After section 10(7)
7A: If goods and services are deemed to be supplied by a person under section 5(3)
7: In section 10(8) or section 21(1) of this Act and the goods and services were acquired before 1 October 1986 or, where goods and services are treated as being supplied under section 21
8: In section 10(15A) Notwithstanding anything in subsection (16) or subsection (17) of this section If
9: Section 10(16) 10(16A) 10(17) 10(17A) 10(20)
10: Subsections (1) to (8)
11: Subsection (9)
90: Section 11 replaced
1: Section 11
11: Zero-rating of goods
1: A supply of goods that is chargeable with tax under section 8
a: the supplier has entered the goods for export under the Customs and Excise Act 1996
b: the goods have been deemed to be entered for export under the Customs and Excise Act 1996
c: the supplier has satisfied the Commissioner that the goods have been exported by the supplier to a place outside New Zealand; or
d: subject to subsection (4) Customs and Excise Act 1996
e: subject to subsection (4) Customs and Excise Act 1996
f: goods that would otherwise have been exported are destroyed, die or cease to exist in circumstances beyond the control of either the supplier or the recipient; or
g: subject to subsection (6) section 12 of the Customs and Excise Act 1996
i: the supplier has been licensed by the Chief Executive of the New Zealand Customs Service to operate a sealed bag system; and
ii: the goods are supplied in accordance with the sealed bag system; and
iii: the goods are entered, or are deemed to be entered, for export under the Customs and Excise Act 1996
h: the goods and services are supplied—
i: by a supplier who is licensed under section 12 of the Customs and Excise Act 1996
ii: within an area licensed under section 12 of the Customs and Excise Act 1996
iii: to either—
A: an inbound air traveller; or
B: an outbound air traveller who picks up the goods upon returning to New Zealand; or
i: subject to subsection (7)
j: the goods are not situated in New Zealand at the time of supply and are not to be entered into New Zealand for home consumption under the Customs and Excise Act 1996
k: the goods have been supplied in the course of repairing, renovating, modifying or treating goods to which section 11A(1)(h) or 11A(1)(i)
i: are wrought into, affixed to, attached to or otherwise form part of those other goods; or
ii: are consumable goods that become unusable or worthless as a direct result of being used in the repair, renovation, modification or treatment process; or
l: the goods have been supplied for use as stores for consumption outside New Zealand on an aircraft going to a destination outside New Zealand or on a fishing ship going outside New Zealand fisheries waters or on a foreign-going ship; or
m: the supply to a registered person of a taxable activity, or part of a taxable activity, that is a going concern at the time of the supply, if—
i: the supply is agreed by the supplier and the recipient, in writing, to be the supply of a going concern; and
ii: the supplier and the recipient intend that the supply is of a taxable activity, or part of a taxable activity, that is capable of being carried on as a going concern by the recipient; or
n: the supply of new fine metal, being the first supply of the new fine metal after its refining, by the refiner to a dealer in fine metal, for the purpose of supplying the fine metal for use as an investment item.
2: For the purpose of subsection (1)(n)
3: Subsection (1)(a) to (1)(l)
a: the registered person, or another person associated with the registered person, has deducted, under section 20(3) section 3A(1)(c)
b: the goods have been or will be reimported into New Zealand by the supplier.
4: If subsection (1)(d) or (1)(e) subsection (5) section 8 subsection (1)(d) and (1)(e) subsection (1)(a), (1)(b) and subsection (5)
5: The Commissioner may extend the 28-day period before a supply of goods is charged with tax at the rate specified in section 8
a: circumstances beyond the control of the supplier and the recipient have prevented, or will prevent, the export of the goods within 28 days beginning on the day of the time of supply; or
b: due to the nature of the supply, it is not practicable for the supplier to export the goods, or a class of the goods, within 28 days beginning on the day of the time of supply.
6: If subsection (1)(g) subsection (1)(g) section 8
7: Subsection (1)(i)
a: the boat or aircraft is exported within 60 days beginning on the date on which the recipient or the recipient's agent takes physical possession of it, or within a longer period as the Commissioner may allow under subsection (8)
b: the vendor or the purchaser provides the Commissioner with such documentation and undertakings as the Commissioner may require in relation to—
i: records of the sale of the supply; and
ii: limitations on dealings in and the uses to which the boat or aircraft will be put before export; and
iii: the proposed and actual date of export.
8: The Commissioner may extend the 60-day period if the Commissioner is satisfied, upon the written application of the supplier, that circumstances beyond the control of the supplier and the recipient have prevented, or will prevent, the export of the boat or aircraft within the period.
9: For the purpose of this section— aircraft section 2 of the Civil Aviation Act 1990 fishing ship section 2 of the Maritime Transport Act 1994 foreign-going ship pleasure craft fishing ship section 2 of the Maritime Transport Act 1994 New Zealand fisheries waters section 2 of the Fisheries Act 1996 sealed bag system
a: is licensed to operate an export warehouse; and
b: may, with the authorisation of the Chief Executive of the New Zealand Customs Service, and subject to any conditions that the Chief Executive may specify, supply goods in a sealed bag to individuals intending to travel overseas within 5 days beginning on the day of the time of supply; and
c: must provide evidence that the goods have been exported from New Zealand within 5 days beginning on the day of the time of supply, and if conditions have been specified by the Chief Executive of the New Zealand Customs Service, in accordance with those conditions.
11A: Zero-rating of services
1: A supply of services that is chargeable with tax under section 8
a: the services, not being ancillary transport activities such as loading, unloading and handling, are the transport of passengers or goods—
i: from a place outside New Zealand to another place outside New Zealand; or
ii: from a place in New Zealand to a place outside New Zealand; or
iii: from a place outside New Zealand to a place in New Zealand; or
b: the services are the transport of passengers from a place in New Zealand to another place in New Zealand to the extent that the transport is by aircraft section 2 of the Civil Aviation Act 1990 international carriage Air Act 1967
c: the services, including ancillary transport activities such as loading, unloading and handling, are the transport of goods from a place in New Zealand to another place in New Zealand to the extent that the services are supplied by the same supplier as part of the supply of services to which paragraph (a)(ii) or (a)(iii)
d: the services are the insuring, or the arranging of the insurance, or the arranging of the transport of passengers or goods to which any one of paragraphs (a) to (c)
e: the services are supplied directly in connection with land situated outside New Zealand or any improvement to the land; or
f: the services are supplied directly in connection with moveable personal property, other than choses in action, situated outside New Zealand when the services are performed; or
g: the services are supplied to overseas postal organisations for the delivery in New Zealand of postal articles mailed outside New Zealand; or
h: the services are supplied directly in connection with goods supplied from outside New Zealand and whose destination is outside New Zealand, including stores for craft, only if the goods are not removed from the ship or aircraft in which they arrived while the ship or aircraft is in New Zealand; or
i: the services are supplied directly in connection with goods referred to in section 116 of the Customs and Excise Act 1996
j: the services are physically performed outside New Zealand or are the arranging of services that are physically performed outside New Zealand; or
k: subject to subsection (2)
i: supplied directly in connection with—
A: land situated in New Zealand or any improvement to the land; or
B: moveable personal property, other than choses in action or goods to which paragraph (h) or (i)
ii: the acceptance of an obligation to refrain from carrying on a taxable activity, to the extent that the activity would have occurred within New Zealand; or
l: subject to subsection (2)
m: the services are supplied directly in connection with goods to which any one of section 11(1)(a) to 11(1)(e)
n: subject to subsection (4)
i: the filing, prosecution, granting, maintenance, transfer, assignment, licensing or enforcement of intellectual property rights, including patents, designs, trade marks, copyrights, plant variety rights, know-how, confidential information, trade secrets or similar rights; or
ii: other services in respect of rights listed in subparagraph (i)
o: the services are the acceptance of an obligation to refrain from pursuing or exercising in whole or in part rights listed in paragraph (n)
p: the services are the acceptance of an obligation to refrain from carrying on a taxable activity if the activity would have occurred outside New Zealand.
2: Subsection (1)(k) and (1)(l)
a: the performance of the services is, or it is reasonably foreseeable at the time the agreement is entered into that the performance of the services will be, received in New Zealand by another person (person B), including—
i: an employee of person A; or
ii: if person A is a company, a director of the company; and
b: it is reasonably foreseeable, at the time the agreement is entered into, that person B will not receive the performance of the services in the course of making taxable or exempt supplies.
3: For the purpose of subsection (1)(k) and (1)(l), and subsection (1)(n) subsection (4)(b) outside New Zealand
4: Subsection (1)(n)
a: the rights are for use outside New Zealand; or
b: the services are supplied to a person who is not resident in New Zealand and who is outside New Zealand when the services are performed.
11B: Zero-rating of supply by territorial authority
1: A supply of services that is chargeable with tax under section 8 section 198 of the Local Government Act 1974
2: For the purpose of subsection (1) territorial authority section 2 of the Local Government Act 1974 local authorities petroleum tax Part XI of the Local Government Act 1974
2: Subsection (1)
91: Imposition of goods and services tax on imports
1: In section 12(4)(a) Part VIII sections 106, 107, 108, 110, 112, 113, 114 Part VIII sections 107, 108, 109, 111, 112, 113, 114, 115, 117, 118
2: In the proviso to section 12(4)(c) if the person is entitled to make an input tax deduction under section 20(3) taxable activity
3: Section 12(4)(e) 12(4)(f)
e: reference numbers 40, 45, 70, 75, 80, 81 and 82 of Part II of the First Schedule of the Tariff Act 1988
i: the goods are entitled to be entered under any of these reference numbers; or
ii: the goods are entitled to be entered duty free under Part I of the First Schedule of the Tariff Act 1988 Part I of the First Schedule of the Tariff Act 1988
4: Subsection (1)
5: Subsections (2) (3)
92: Exempt supplies
1: In section 14(a)(i) subparagraph paragraph
2: In section 14(a)(i) section 11(2) of this Act section 11A
3: After section 14(ca)
cb: the supply of property by way of lease that is to be used for the principal purpose of accommodation in a dwelling by any person, other than a registered person in the course or furtherance of a taxable activity: .
4: In section 14(e) section 11(1) section 11
5: In section 14 subsections (2) (3)
2: A supplier and a recipient may agree, in writing, that a supply under subsection (1)(cb)
a: the lease was entered into before 16 May 2000; and
b: the supplier has, before 16 May 2000, treated a supply under the lease as being a taxable supply.
3: Penalty or default interest imposed under a contract for the supply of goods and services is treated as being consideration for an exempt supply.
6: Subsection (1)
7: Subsections (2) to (5)
93: Taxable periods
1: In section 15(6)(a) Any cessation of any ending of, including a premature ending of
2: Subsection (1)
94: Change in registered person's taxable period
1: After section 15A(1)
1AA: The Commissioner may, on written application by a registered person who falls within any one of categories A, B or D, direct that the registered person be placed within category C after considering the following factors:
a: the person's history of filing and paying tax:
b: the person's record keeping practices:
c: whether the person has been placed within category C before:
d: the nature and volume of the person's taxable supplies.
2: Subsection (1)
95: Accounting basis
1: Section 19(1)
1: Subject to sections 19A to 19D
2: Subsection (1)
96: Requirements for accounting on payments basis
1: Section 19A(1)(a)(ii)
ii: a local authority specified in an Order in Council made under section 19AB
2: In section 19A(1)(b)(i) $1,000,000 $1,300,000
3: In section 19A(3)(a) Any cessation of any ending of, including a premature ending of
4: Subsection (1)
5: Subsection (2)
6: Subsection (3)
97: New section 19AB inserted
1: After section 19A
19AB: Local authorities accounting on payments basis on and after 1 July 2001
The Governor-General may, by Order in Council, specify—
a: a local authority that may continue to account for tax payable on a payments basis under section 19
b: the period for which the local authority may continue to account for tax payable on a payments basis under section 19
2: Subsection (1)
98: New section 19D inserted
1: After section 19C
19D: Invoice basis for supplies over $225,000
1: A registered person who makes a supply of goods and services for a consideration of more than $225,000 must account for tax payable on an invoice basis for that supply.
2: Subsection (1) short term agreement for the sale and purchase of property or services section OB 1 of the Income Tax Act 1994 93 days 1 year
3: For the purpose of subsection (1)
a: the person has made more than one supply and the sum of the consideration for each supply is more than $225,000 irrespective of whether each supply is one to which subsection (2)
b: the Commissioner considers that the person made more than one supply to avoid the application of subsection (1)
2: Subsection (1)
99: Calculation of tax payable
1: In section 20(3)(a)(i) 20(3)(a)(ia) paragraph (c) of the definition of the term input tax section 3A(1)(c) of the input tax
2: In section 20(3)(d) indemnify
3: In subparagraph (iii) section 11 of this Act section 11, 11A or 11B
4: After section 20(3)(d)
db: an amount equal to the tax fraction of the payment of a recovered amount to which section 5(13B)
5: After subparagraph (iv)
iva: does not apply if the payment is made to a person who, on the date the payment is made, is not a registered person and is not resident in New Zealand: .
6: In section 20(3)(e) section 21(5) of this Act sections 21E, 21F, 21G and 21H
7: Section 20(3)(ea) 20(3A) 20(3AB) 20(3B)
8: Section 20(4)
4: For the purpose of subsection (3)
a: in the case of a registered person who is required to account for tax payable on an invoice or a hybrid basis under section 19
b: in the case of a registered person who is required to account for tax payable on a payments basis under section 19
i: to the extent that payment for the supply has been received during the taxable period, if the supply is a supply of goods and services which is deemed to take place under any one of sections 9(1), 9(3)(a), 9(3)(aa), 9(6), 9(8), 25(2)(a), or 25(4)
ii: if the supply of goods and services is made or deemed to be made during the taxable period by the registered person, unless the supply is one to which subparagraph (i)
9: In section 20(5) of this section and section 83(2) of this Act
10: Subsections (1) to (6) (8) (9)
11: Subsection (7)
100: Section 21 replaced
1: Section 21
21: Supplies of goods and services other than for making taxable supplies
1: Subject to section 5(3)
a: the person acquires or produces the goods and services for the principal purpose of making taxable supplies but applies the goods and services for a purpose other than that of making taxable supplies; or
b: the person applies the goods and services for the principal purpose of making taxable supplies and also applies the goods and services for a purpose other than that of making taxable supplies; or
c: the person acquires or produces goods and services before 1 October 1986 for the principal purpose of making supplies that would have been taxable supplies if they had made on or after 1 October 1986 but applies the goods and services for a purpose other than that of making taxable supplies on or after 1 October 1986; or
d: the person acquires or produces goods and services before 1 October 1986 and applies the goods and services both for a purpose of making supplies that would have been taxable supplies if they had been made on or after 1 October 1986 and for another purpose before 1 October 1986 but applies the goods and services for the purpose other than that of making taxable supplies on and after 1 October 1986.
2: Subsection (1)(c)
3: Subsection (1)
a: to a supply of services provided by an employee on and after 1 October 1986:
b: if the goods and services were acquired before 1 October 1986 and are no longer used for the principal purpose of making taxable supplies because of a legislative amendment.
4: Subsection (1)
a: $90,000; or
b: 5% of the total consideration for all taxable and exempt supplies to be made in the 12-month period.
5: If a person is required to account for tax payable on a payments basis under section 19
a: to the extent that payment for the supply is expected to be received during the period, if the supply would be deemed to take place under any one of sections 9(1), 9(3)(a), 9(3)(aa), 9(6), 25(2)(a) or 25(4)
b: as if the supply would be made or deemed to have been made during the period by the person had the supply been charged with tax under section 8 paragraph (a)
21A: Methods of allocating between taxable and other supplies
1: A registered person must determine the extent to which goods and services are applied for the purpose of making supplies other than taxable supplies according to:
a: actual use; or
b: an alternative method approved by the Commissioner if the method results in allocated amounts that are fair and reasonable.
2: A registered person must determine the extent to which goods and services are applied for the purpose of making exempt supplies by either applying subsection (1) Total value of exempt supplies for taxable period —————————————————————— Total value of all supplies for taxable period.
21B: Methods of allocation for replacement goods and services
1: If a person applies section 21C(1)(a)
2: A person must allocate the amount on the date of acquisition or production.
3: If a person applies section 21C(1)(a)
a: on the date of acquisition, allocate an amount to supplies other than taxable supplies provisionally; and
b: 12 months after the date of purchase or acquisition, recalculate the provisional allocation if it differs from the actual use of the goods and services over the 12-month period.
21C: Attribution of output tax
1: A registered person to whom section 21(1)
a: in the first taxable period in which goods and services are applied for a purpose other than that of making taxable supplies; or
b: in each taxable period in which goods and services are applied for a purpose other than that of making taxable supplies; or
c: in each year in which goods and services are applied for a purpose other than that of making taxable supplies.
2: A registered person who applies subsection (1)(a)
3: If subsection (1)(a) or (1)(c)
4: A person may change the time the person attributes output tax only with the Commissioner's approval.
21D: Attribution of output tax in contemplation of sale of goods and services
Despite section 21(1)
a: the goods or services are sold after the person has attributed output tax at the time specified in section 21C(1)(a)
b: the Commissioner considers that the person applied the goods or services for a purpose other than that of making taxable supplies and attributed output tax under section 21C(1)(a)
21E: Application of
section 21F
1: Section 21F
a: a person acquires goods and services on or after 1 October 1986 for the principal purpose other than that of making taxable supplies; and
b: the goods and services are applied in a taxable period for a purpose of making taxable supplies either by the person or, if the person is a member of a partnership, by the partnership; and
c: either subsection (2) or subsection (3)
2: This subsection applies if—
a: tax has been charged under section 8(1)
b: tax has been levied under section 12(1) Customs and Excise Act 1996
3: This subsection applies if—
a: the goods are secondhand goods that are supplied to the person by way of sale and the goods—
i: have always been situated in New Zealand; or
ii: have had tax levied on them under section 12(1) of the Customs and Excise Act 1996
b: the supply is not a taxable supply; and
c: the person has not supplied the goods to another registered person who has entered them for home consumption under the Customs and Excise Act 1996
4: For the purpose of subsection (1)(a)
a: sections 21 and 21I
b: section 5(3)
21F: Deductions from output tax for goods and services applied for making taxable supplies
1: For the purpose of this Act, the goods and services referred to in section 21E section 20(3)
a: the cost of the goods and services, including any tax charged or input tax deduction claimed for the goods and services; and
b: the open market value of the supply of the goods and services.
2: Subsection (1)
3: If subsection (1)
21G: Timing of deduction under
section 21F
1: A person to whom section 21F
a: in each taxable period in which goods and services are applied for a purpose of making taxable supplies; or
b: in each year in which goods and services are applied for a purpose of making taxable supplies.
2: If a person makes a deduction at the time allowed by subsection (1)(b) section 21F
3: A person may change the time at which the person makes a deduction only with the Commissioner's approval.
21H: Application to make single deduction under section 21F
1: Despite section 21G(1) section 21F
2: Subsection (1)
3: When determining whether to allow a person to make a single deduction, the Commissioner must take the following factors into account:
a: the nature of the goods or services:
b: whether it is practical to require a deduction at either of the times specified in section 21F(1)
c: whether the person has previously made an attribution under section 21C(1)(a)
d: whether the person has previously made a single adjustment under section 21
e: whether the person has previously made a single deduction under either—
i: section 21G
ii: section 21(5)
4: If the Commissioner allows the person to make a single deduction and the goods and services are subsequently applied for a purpose other than that of making taxable supplies, the person must apply section 21C(1)(a)
21I: Fringe benefits and entertainment expenses
1: If a registered person has or is deemed to have provided or granted a fringe benefit to another person under the FBT rules of the Income Tax Act 1994
2: Subsection (1)
a: the other person paid an amount for the receipt or enjoyment of the fringe benefit; or
b: the fringe benefit arose by virtue of an exempt supply under section 14
c: the fringe benefit arose by virtue of a supply that is charged with tax at the rate of 0% under section 11, 11A, or 11B
d: the fringe benefit is, or is deemed to be, provided or granted by a registered person in the course of making exempt supplies.
3: Despite sections 9 and 21C sections ND 9, ND 10, ND 11, ND 13 or ND 14 of the Income Tax Act 1994
4: If section DG 1 of the Income Tax Act 1994 entertainment section DG 1
a: the registered person is treated as having supplied entertainment for a consideration in money equal to the amount of the allowable deduction prevented by section DG 1; and
b: the time of the supply is treated as being the earlier of—
i: the date on which the person furnishes a return of income under section 37 of the Tax Administration Act 1994
ii: the date by which the person must furnish a return of income under section 37 of the Tax Administration Act 1994
5: For the purpose of subsection (4) section CB 12 of the Income Tax Act 1994
2: Subsection (1) sections 21E 21F(1)
3: New sections 21E 21F(1) section 20(3) Goods and Services Tax Act 1985 Part 4A Tax Administration Act 1994
a: has not been notified of the claim, other than by way of inclusion in the registered person's return, and on this basis has not queried the claim in writing before 16 May 2000; or
b: has not queried the claim in writing before 16 May 2000 but has agreed in writing to the claim before 16 May 2000; or
c: has queried or considered the claim in writing before 16 May 2000 but has agreed in writing to the claim before 16 May 2000.
101: Payment of tax
1: Section 23(2)
2: Subsection (1)
102: Tax invoices
1: In section 24(4) $200 $1,000
2: In the proviso to section 24(4) section 11 of this Act section 11, 11A or 11B
3: Subsection (1)
4: Subsection (2)
103: Bad debts
1: The second proviso to section 26(1)
2: After section 26(1)
1AA: Subsection (1)
1AB: A registered person who is required to account for tax payable on a payments basis under either section 19 or section 19A sections 9(2)(b), 9(3)(b) and 26A
3: Subsection (1)
4: Subsection (2)
104: New section 26A inserted
1: After section 26
26A: Factored debts
A registered person who sells a debt to a third party must pay tax on the remaining book value of the debt on the date that the debt is sold if the registered person accounts for tax payable on a payments basis.
2: Subsection (1)
105: Assessment of tax
1: Section 27(1)(ea)
2: Subsection (1)
106: Recovery of tax
1: In section 42(2)(a) an individual an individual, whether or not a member of an unincorporated body
2:
3:
4: Subsections (1) to (3) Subsections (2) (3) repealed 10 October 2000 76(4) Taxation (Beneficiary Income of Minors, Services-Related Payments and Remedial Matters) Act 2001
107: Commissioner's right to withhold payments
1: After section 46(6)
7: Subsection (8) incapacitated person section 58(1)
a: not paid tax in respect of a taxable period; or
b: not paid, in whole or in part, an amount required by any other Inland Revenue Act.
8: The Commissioner may set off, against the unpaid tax or unpaid amount, any deduction allowed under section 20(3) section 58(1C)
9: Any amount set off under subsection (8)
2: Subsection (1)
108: Relief from tax where new start grant made in respect of drought relief
1: In section 48A(2)(c)(ii) 48A(3)(b)(i) (including its termination) , including its ending, whether premature or otherwise
2: Subsection (1)
109: Persons making supplies in course of taxable activity to be registered
1: In section 51(1)(a) $30,000 $40,000
2: In section 51(1)(c) Any cessation of any ending of, including a premature ending of
3: Subsection (1)
4: Subsection (2)
110: Group of companies
1: After section 55(4)
4A: The appointment of a specified agent section 58(1)
2: In section 55(7)(dc) section 21(5) of this Act section 21E
3: Subsections (1) (2)
111: Unincorporated bodies
1: Section 57(1)
2: In section 57(2) a body an unincorporated body
3: In section 57(2)(e) subsection (3) of this section subsections (3) to (3B)
4: Section 57(3)
3: Despite this section, a member is jointly and severally liable with other members for all tax payable by the unincorporated body during the taxable periods, or part of taxable periods as the case may be, the person is a member of the body, even if the person is no longer a member of the body.
3A: When an individual member dies, the member's estate is severally liable in due course of administration for tax payable by the unincorporated body to the extent that it remains unpaid, whether or not the individual was a member on the date of their death.
3B: For the purpose of subsections (3) and (3A)
5: In section 57(4) a body an unincorporated body
6: In section 57(5) 57(6) any body an unincorporated body
7: In section 57(6) subsection (3) of this section subsections (3) to (3B)
8: Subsection (1)
9: Subsections (2) to (7)
112: Personal representative, liquidator, receiver, etc
1: In section 58(1)
a: In this section, In this section and sections 46 and 55
b: in the definition of agency period (b)
b: the date on which there is no longer a person acting as a specified agent in relation to the incapacitated person.
2: Section 58(1A)
1A: Despite sections 5(2) and 60
1B: If a person becomes a specified agent and has been appointed to carry on part of the incapacitated person's taxable activity only, subsection (1A)
1C: Subject to section 46(8) section 20(3)
1D: A specified agent is not personally liable for any liabilities incurred under this Act by the incapacitated person on or before the date the agency period starts.
3: Subsections (1) (2)
113: Agents and auctioneers
1: In section 60(6) section 11 of this Act section 11, 11A or 11B
2: After section 60(6)
7: Despite subsection (1) section 12(1)
a: the principal is not resident in New Zealand and is not a registered person; and
b: the agent is resident in New Zealand and is a registered person at the time the goods are imported; and
c: the principal and agent agree that the supply was made by the agent and not by the principal.
3: Subsections (1) (2)
114: Section 61 replaced
1: Section 61
61: Liability for tax payable by company left with insufficient assets
Section HK 11 of the Income Tax Act 1994 income tax tax goods and services tax
2: Subsection (1)
115: Company amalgamations
1: In section 61A(2)(f) section 21 of this Act sections 21 to 21H
2: In section 61A(4)(b) subsection (3B) or subsection (4) of section 21 of this Act section 21I(3) or 21I(4)
3: Subsections (1) (2)
116: Section 76 replaced
1: Section 76
76: Avoidance
1: A tax avoidance arrangement entered into by a person is void against the Commissioner for tax purposes.
2: A tax avoidance arrangement is one that directly or indirectly—
a: has tax avoidance as its purpose or effect; or
b: has tax avoidance as one of its purposes or effects, whether or not another purpose or effect relates to ordinary business or family dealings, if the purpose or effect is not merely incidental.
3: If a tax avoidance arrangement is void against the Commissioner, the Commissioner may adjust the amount of tax payable by, or the amount of tax refundable to, a registered person affected by the arrangement, whether or not the registered person is a party to the arrangement, in the manner the Commissioner considers appropriate to counteract any tax advantage obtained by the registered person from or under the arrangement.
4: For the purpose of subsection (3)
a: a person who is not a registered person and who is a party to or has participated in an arrangement as being a registered person:
b: a supply of goods and services, whether or not a taxable supply, that is affected by or is part of an arrangement as being made to or by a registered person:
c: a supply of goods and services as occurring in a taxable period that, but for an arrangement affected by this section, would have occurred in the taxable period in which the supply was made:
d: a supply of goods and services as having been made, or consideration for the supply as having been given, at open market value.
5: Subsection (6)
a: a person (person A) enters into an arrangement on or after 22 August 1985 whereby a taxable activity formerly carried on by person A is carried on, in whole or in part, by another person (person B) or other persons; and
b: either—
i: person A and person B are associated persons; or
ii: person A and the other persons are associated persons.
6: For the purpose of sections 15(3), 15(4), 19A(1) and 51(1)
7: The Commissioner may, having regard to the circumstances of the case and if the Commissioner considers it equitable to do so, determine that subsection (6)
8: For the purpose of this section— arrangement tax avoidance
a: a reduction in the liability of a registered person to pay tax:
b: a postponement in the liability of a registered person to pay tax:
c: an increase in the entitlement of a registered person to a refund of tax:
d: an earlier entitlement of a registered person to a refund of tax:
e: a reduction in the total consideration payable by a person for a supply of goods and services.
2: Subsection (1)
117: Adjustments to tax payable for persons furnishing returns on payments basis following change in rate of tax
1: In section 78B(2A)(a)(iii) 78B(2A)(aa)(ii) 78B(2A)(b) paragraph (c) of the definition of the term input tax section 3A(1)(c)
2: Subsection (1)
118: Change in accounting basis coinciding with or occurring after change in rate of tax
1: In section 78C(2)(a)(i) paragraph (c) of the definition of the term input tax section 3A(1)(c) of the input tax
2: Subsection (1)
119: Alteration of agreed price in relation to supply mistakenly believed to be of a going concern
1: In section 78E section 11(1)(c) of this Act section 11(1)(m)
2: Subsection (1)
120: Registration of persons liable to be registered on 1 October 1986
1: Section 82
2: Subsection (1)
121: Deduction for sales tax
1: Section 83
2: Subsection (1)
122: Supplies prior to 1 October 1986
1: In section 84(3) section 21 of this Act sections 21 to 21H
2: Subsection (1)
4: Amendments to
Income Tax Act 1976
123: Income Tax Act 1976 This Part amends the Income Tax Act 1976
124: Exclusions from term dividends
1: After section 4A(1)(i)
iaa: any amount distributed by a group investment fund to a trustee company on behalf of, or as agent for, an investor in the fund that relates to management fees to which section 211A applies: .
2: Subsection (1)
125: Non-market dispositions
1: Section 64J(3)
3: A financial arrangement is treated as having been sold and purchased or transferred and realised at its market price on the date of its sale or transfer if the sale or transfer, including a transfer by way of distribution to shareholders, is not for consideration in money or is for a consideration that is less than the market price or true value of the financial arrangement.
4: If there is no market price, the financial arrangement is treated as having been sold and realised at the price the Commissioner determines.
5: The market price, or price, of a financial arrangement is the market price, or price, for both seller and purchaser or transferor and transferee.
2: Subsection (1) section 64B of the Income Tax Act 1976
3: Despite subsection (2) subsection (1)
126: New
section 199A
1: After section 199
199A: Application of
section 199
1: This section applies in respect of distributions made by the New Zealand Dairy Board, established under the Dairy Board Act 1961
2: For the purpose of section 199(1), in paragraph (a) of the definition of rebate a distribution of profits of the association a distribution from the association
2: Subsection (1)
127: Group investment funds
1: In section 211A(1)
a: the following is inserted after the definition of investor management fees :
b: the following is inserted after the definition of protected amount trustee company section 2 of the Trustee Companies Act 1967
2: After section 211A(3)
3A: The trustees of a group investment fund may elect to deduct expenditure incurred in paying management fees to a trustee company on behalf of, or as agent for, its investors.
3B: The trustees of the fund are treated as having incurred the expenditure on the date on which an investor incurs the management fee.
3C: A trustee makes an election by deducting expenditure in their return of income.
3D: An election to deduct expenditure is irrevocable.
3E: The expenditure allowed as a deduction to the trustees of the fund is treated as not having been incurred by the investor.
3: Subsections (1) (2)
128: Interpretation
1: In section 226(1), in the definition of beneficiary income but does not include gross income derived by a trustee of the trust in any income year during which the trust is a superannuation fund or any management fees to which section 211A
2: Subsection (1)
129: Schedule 14
1: In Schedule 14 Housing New Zealand Limited Housing Corporation of New Zealand
2: Subsection (1)
5: Amendments to Estate and Gift Duties Act 1968
130: Estate and Gift Duties Act 1968
This Part amends the Estate and Gift Duties Act 1968
131: New sections 75BA to 75BC inserted
1: After section 75B
75BA: Exemption for gifts of financial arrangements under accrual rules in
Income Tax Act 1994
1: In this section—
a: accrual rules section OB 1 of the Income Tax Act 1994
b: financial arrangement section EH 22 of the Income Tax Act 1994
2: If section EH 49(1) of the Income Tax Act 1994
75BB: Exemption for gifts of financial arrangements under accruals rules in
Income Tax Act 1994
1: In this section, accruals rules financial arrangement section EH 14 of the Income Tax Act 1994
2: If section EH 16(3) of the Income Tax Act 1994
75BC: Exemption for gifts of financial arrangements under accruals rules in
Income Tax Act 1976
1: In this section, financial arrangement section 64B of the Income Tax Act 1976
2: If section 64J(3) of the Income Tax Act 1976
2: In subsection (1)
a: new section 75BA
b: new section 75BB section EZ 45 Income Tax Act 2004
c: new section 75BC section 64B of the Income Tax Act 1976 Subsection (2)(b) amended 1 April 2005 YA 2 Income Tax Act 2004 by substituting the words section EZ 45 of the Income Tax Act 2004 section EH 14 of the Income Tax Act 1994