Taxation (Relief, Refunds and Miscellaneous Provisions) Act 2002

1: Title
This Act is the Taxation (Relief, Refunds and Miscellaneous Provisions) Act 2002.
2: Commencement
This Act comes into force on the date 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Income Tax Act 1994 Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
3: Income Tax Act 1994 Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004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: Exempt income—interest
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
5: New
section CB 3A Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
6: Exempt income—dividends
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
7: New
section CD 3A Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
8: Exclusions from term dividends
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
9: New
section CF 7A Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
10: Calculation and attribution of controlled foreign company repatriation
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
11: Branch equivalent income calculation
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
12: Use of alternative methods
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
13: Section CJ 6 Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
14: Section CJ 7 Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
15: Exception for withdrawal when member ceases employment
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
16: Certain deductions not allowed—superannuation contributions, bonuses, retiring allowances, etc
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
17: Pensions payable to former employees
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
18: Retiring allowances payable to employees
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
19: New
sections DF 8A and DF 8B Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
20: New
sections DF 10 and DF 11 Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
21: New
section DJ 22 Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
22: Section DM 6 Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
23: Accounting for goods and services tax
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
24: New
section EE 2A Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
25: Cost of trading stock other than excepted financial arrangements
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
26: Requirement to value closing stock consistently
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
27: Accrual expenditure
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
28: New
section EF 1A Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
29: Forgiveness of debt
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
30: Base price adjustment—exceptions
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
31: Forgiveness of debt
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
32: Valuation of bloodstock
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
33: Pensions
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
34: Rules for calculating New Zealand group debt percentage
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
35: Rules for calculating worldwide group debt percentage
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
36: Rules for determining consolidated foreign attributed income group debt percentage
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
37: Treatment of various settlements
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
38: Definitions of guardian, minor and relative
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
39: Trustee income
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
40: Agent to make returns and be assessed as principal
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
41: Liability of principal not affected
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
42: Rents, royalties, or interest derived by Maori trustee and not distributed
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
43: Rebate in certain cases for housekeeper
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
44: Rebate for gifts of money
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
45: Determination of net income
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
46: Calculation of family tax credit
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
47: 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
48: New
section LC 14A Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
49: Dividends from grey list companies
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
50: Election to be a provisional taxpayer
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
51: Refund of overpaid provisional tax
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
52: Section heading to
section MC 1 Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
53: Refund of excess tax
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
54: Limits on refunds of tax
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
55: New
section MD 2A Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
56: Credits arising to imputation credit account
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
57: Special debits arising to imputation credit account of unit trust or group investment fund
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
58: New subpart MJ inserted
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
59: Employer's liability for fringe benefit tax
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
60: Election to pay fringe benefit tax per quarter
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
61: Multi-rate calculation for attributed fringe benefits
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
62: Refunds of deductions
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
63: Non-resident withholding tax deducted in error
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
64: Liability to make deduction in respect of foreign withholding payment dividend
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
65: Reduction in liability under conduit tax relief
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
66: Definitions
Subsection (30) amended 17 October 2002 171 Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 by substituting the expression section 13(3) section 10(3) Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
67: Modifications to measurement of voting and market value interests in case of continuity provisions
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
68: New
section OD 5B Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
69: Further definitions of associated persons
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
70: Section OE 6 Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
71: References to particular regimes in former Act, etc
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
2: Amendments to Tax Administration Act 1994
72: Tax Administration Act 1994
This Part amends the Tax Administration Act 1994
73: Interpretation
1: This section amends section 3(1)
2: In the definition of abusive tax position and section 177C Part IX
3: After the definition of family certificate of entitlement family trust section 173M(5)
4: After the definition of original return date outstanding tax sections 139BA, 176, 177, 177A, 177B and 177C
5: After the definition of reject relative section 173M(5)
6: The definition of separated person
7: In the definition of tax
a: after paragraph (c)
ca: for the purpose of Part XB
i: financial support, as defined in section 2(1) of the Child Support Act 1991
ii: a repayment obligation, as defined in section 2 of the Student Loan Scheme Act 1992
iii: a rebate referred to in section 41A .
b: in paragraph (d) and 177 , 177, and 177A to 177D
8: Subsections (2) (4) (7)(b) 1 December 2002
9: Subsections (3) (5) (7)(a)
10: Subsection (6) 1 December 2002 Subsections (8) and (10) amended 17 October 2002 172 Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 by substituting the expression 1 December 2002 1 July 2002
74: Resident withholding tax deduction certificates
1: In section 25(1) in such form as the Commissioner may approve and containing that contains
2: Section 25(6)
6: A resident withholding tax deduction certificate must include the following:
a: a statement as to whether the resident withholding income is interest or specified dividends:
b: the date on which the deduction was made, or if there is more than one deduction, the year in which the deductions were made:
c: the amounts of resident withholding tax income and resident withholding tax deductions:
d: the resident withholding tax rate applied to the resident withholding tax income.
3: In section 25(7)(a) 25(7)(b) $20 $50
4: In section 25(10)(d) business. business; or
e: is sent electronically to the recipient or to a person authorised to act on behalf of the recipient and the recipient or the authorised person agree to receiving the certificate this way.
5: Subsections (1) (2) (4)
6: Subsection (3)
75: Annual returns of income not required
1: In section 33A(1)(a) subparagraph (i)
a: had gross income that was derived only from—.
2: At the end of section 33A(1)(a)(iii) and or
iv: a source or sources other than those listed in subparagraphs (i) to (iii)
3: Section 33A(2)(d)
d: received a withholding payment, not being an amount or proportion of a withholding payment in respect of which the Commissioner has made a determination under regulation 7 of the Income Tax (Withholding Payments) Regulations 1979
4: Section 33A(2)(l)
5: Subsection (1)
6: Subsection (2)
7: Subsection (3)
8: Subsection (4)
76: Returns by person claiming housekeeper or charitable rebates
1: After section 41A(5)
6: A taxpayer with a standard balance date or an early balance date may apply for a refund for an income year after 1 April next following the end of the taxpayer's income year. Late balance date taxpayers may apply for a refund for an income year on or after the first day of the taxpayer's next accounting year.
2: In section 41A(6AA) The Despite subsection (6)
3: Subsections (1) (2)
77: Income tax returns and assessments by executors or administrators
1: Section 43(4)
4: The executor or administrator of a deceased taxpayer must request the Commissioner to issue an income statement if the taxpayer would have been a person to whom section 33A(5)
5: The executor or administrator of a deceased taxpayer may request the Commissioner to issue an income statement if the taxpayer would have been a person to whom section 33A(1)
2: Subsection (1)
78: Resident withholding tax deduction reconciliation statements
1: Section 51(2)
2: The Commissioner may require the following information in relation to a deduction of resident withholding tax:
a: the full name, address and tax file number of the person (the payer
b: the full name and last known address of the recipient unless, after making reasonable inquiries, the payer is unable to obtain those details; and
c: the tax file number of the recipient, if known to the payer; and
d: whether the resident withholding income is interest or specified dividends; and
e: the date on which the deduction was made or, if there is more than one deduction, the year in which the deductions were made; and
f: the amounts of resident withholding tax income and resident withholding tax deductions; and
g: the resident withholding tax rate applied to the resident withholding tax income; and
h: further information that the Commissioner considers relevant.
2A: If the person has paid interest or specified dividends to another person (the recipient) and has not deducted resident withholding tax because the recipient holds a valid certificate of exemption, the Commissioner may require the following information:
a: the full name and last known address of the recipient; and
b: the total interest or specified dividends paid to the recipient; and
c: the recipient's tax file number, except if the recipient is, at the time of payment, a person to whom any of paragraphs (a) to (d) of section NF 9(1) of the Income Tax Act 1994
d: further information that the Commissioner considers relevant.
2B: Information that may be required under subsection (2) or subsection (2A)
2: In section 51(3) or subsection (2A) subsection (2)
3: Subsections (1) (2)
79: Disclosure of trust particulars
1: Section 59(3)
3: The trustee of every trust must in every case make a return of all income derived by the trustee as trustee of the trust, and each return is treated as being separate and distinct from any return made by the trustee in respect of another trust or in the trustee's own right.
2: Subsection (1)
80: Disclosure of interest in foreign investment fund
1: In section 61 foreign company or in
2: Subsection (1)
81: Annual imputation return
1: After section 69(1)(f)
fa: where the company is a qualifying unit trust or a group investment fund that derives category A income—
i: the opening and closing balances of the trust's or fund's supplementary available subscribed capital account for the imputation year:
ii: the amount and source of all credits and debits that have arisen in the trust's or fund's supplementary available subscribed capital account in accordance with sections MJ 5 and MJ 6 of the Income Tax Act 1994
2: Subsection (1)
82: Content and notification of a public ruling
1: Section 91DA(1)(e)
e: either—
i: the period or income year for which the ruling applies; or
ii: in the case of a ruling issued for an indefinite period, the date or income year from which the ruling applies.
2: Subsection (1)
83: Application of a public ruling
1: Section 91DC(1)(b) 91DC(1)(c)
b: for an arrangement that is specified in the ruling; and
c: for an arrangement that is entered into either—
i: during the period or income year for which the ruling applies; or
ii: in the case of a ruling issued for an indefinite period, on or after the date, or on or after the first day of the income year, from which the ruling applies; and
d: either—
i: for the period or income year specified in the ruling; or
ii: in the case of a ruling issued for an indefinite period, for an indefinite period.
2: Subsection (1)
84: Withdrawal of a public ruling
1: Section 91DE(4)
4: If the Commissioner withdraws a public ruling, the ruling does not apply to an arrangement entered into after the date of withdrawal.
4A: If the Commissioner withdraws a public ruling, the ruling continues to apply—
a: to an arrangement to which it previously applied that was entered into before the date of withdrawal; and
b: either—
i: for the remainder of the period or income year specified in the ruling; or
ii: in the case of a ruling issued for an indefinite period, for 3 years after the date stated in the notice of withdrawal.
2: Section 91DE(5)(c)
c: either—
i: the original period or income year for which the ruling applied; or
ii: in the case of a ruling issued for an indefinite period, the original date or income year from which the ruling applied; and.
3: Subsections (1) (2)
85: Instalments of and due dates for provisional tax
1: In section 120K(4)(b) $30,000 $35,000
2: Subsection (1)
86: Certain rights of objection not conferred
1: In section 125(j)(iii)
a: IB 1,
b: 92A 89,
2: In section 125(j)(iv) 177A to 177D, 176, 177,
3: Subsection (1)
4: Subsection (2) 1 December 2002 Subsection (4) amended 17 October 2002 173 Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 by substituting the expression 1 December 2002 1 July 2002
87: Certain rights of challenge not conferred
1: In section 138E(1)(e)(iii)
a: IB 1,
b: 92A, 89,
2: In section 138E(1)(e)(iv) 177A to 177D, 176, 177,
3: Subsection (1)
4: Subsection (2) 1 December 2002 Subsection (4) amended 17 October 2002 174 Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 by substituting the expression 1 December 2002 1 July 2002
88: Late payment penalty
1: In section 139B(2B) , or section (2) section 51(1) of the Taxation (Beneficiary Income of Minors, Services-Related Payments and Remedial Matters) Act 2001 this subsection
2: In section 139B(3B)(a) and complies with all of their obligations under the instalment arrangement
3: In section 139B(3B)(b) and has received the tax deducted in accordance with the requirements of a notice issued as a result of the Commissioner exercising those powers subsection (2A)(a)
4: Section 139B(3B)
3B: The part of an initial late payment penalty imposed under subsection (2A)(b) section 157 of this Act section 43 of the Goods and Services Tax Act 1985 subsection (2A)(a)
5: In section 139B(5A)(b) and has received the tax deducted in accordance with the requirements of a notice issued as a result of the Commissioner exercising those powers tax law
6: Section 139B(5A)
5A: An incremental late payment penalty is not to be added if, for a month during which the tax to pay remains unpaid, the Commissioner has exercised powers available under section 157 of this Act section 43 of the Goods and Services Tax Act 1985
7: In section 139B(6) and section 139BA this section
8: Subsections (1) (3)
9: Subsections (2) (5)
10: Subsections (4) (6) (7) 1 December 2002 Subsection (10) amended 17 October 2002 175 Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 by substituting the expression 1 December 2002 1 July 2002
89: New section 139BA inserted
1: After section 139B
139BA: Imposition of late payment penalties when financial relief sought
1: If a taxpayer has outstanding tax and contacts the Commissioner seeking financial relief before the due date, the Commissioner must impose the late payment penalty under section 139B(2A)(a) section 139B(2A)(b)
2: If a taxpayer has outstanding tax and contacts the Commissioner seeking financial relief on or after the due date, the Commissioner must not impose an incremental late payment penalty on unpaid tax on and after the date of the request.
3: Subsections (1) (2)
a: the date that the Commissioner makes a decision not to give financial relief; and
b: the last day of the response period allowed by section 177(3)
4: If an instalment arrangement is entered into, an incremental late payment penalty is not to be added if, for a month during which the tax to pay remains unpaid, the taxpayer complies with all of their obligations under the arrangement.
5: If an instalment arrangement is cancelled on the basis of false or misleading information provided by the taxpayer, the Commissioner must impose those late payment penalties not imposed as if the instalment arrangement had not been entered into.
6: If financial relief is not given, the Commissioner must impose those late payment penalties not imposed as if the request for financial relief had not been made.
2: Subsection (1)
90: Abusive tax position
1: In section 141D(7) and section 177C this Part
2: Subsection (1)
91: New Part XB inserted
1: After Part XA
XB: Transfers of excess tax
173K: Application
1: This Part applies if tax has been paid in excess of the amount properly payable—
a: to the extent that the tax paid in excess by or on behalf of a taxpayer is refundable and after the date the tax was paid, and before it is transferred under this Part, has not been applied to satisfy a tax liability or other amount due:
b: to allow the Commissioner to transfer all or part of the excess at the taxpayer's request.
2: For the purpose of the Inland Revenue Acts—
a: tax transferred by the transferor is treated as a refund to the transferor on the date of transfer; and
b: tax transferred to the transferee is treated as tax paid by the transferee on the date of transfer, except for the purpose of imposing a shortfall penalty under Part IX Transfer rules
173L: Transfer of excess tax within taxpayer's accounts
1: A taxpayer or their agent may request that the Commissioner transfer all or part of the excess to another period or another tax type of the taxpayer.
2: The taxpayer may choose the date on which all or part of the excess is transferred, being—
a: in the case of a GST refund, a day after the end of the taxable period in which the refund arose:
b: in the case of tax deducted on the taxpayer's behalf, a day after the end of the accounting year in which the deduction occurred:
c: in any other case, a date that occurs on or after the date the excess tax is paid.
3: Despite subsection (2)(b)
173M: Transfer of excess tax to another taxpayer
1: A taxpayer or their agent may request that the Commissioner transfer all or part of the excess to another taxpayer.
2: A request may be made for a transfer between a taxpayer and—
a: a company in the same group of companies; or
b: a shareholder employee of the taxpayer; or
c: a company in which the taxpayer is a shareholder employee; or
d: a partner in the same partnership; or
e: a relative; or
f: a trustee of a family trust of which the taxpayer is a beneficiary; or
g: another taxpayer not listed in paragraphs (a) to (f)
3: A taxpayer, being a trustee of a family trust, may request a transfer to a beneficiary of the trust.
4: The taxpayer may choose the date on which all or part of the excess is transferred, being—
a: if subsection (2)(a) to (2)(f) or subsection (3) section 173L
b: if subsection (2)(g)
i: a date that occurs on or after the date of the request; and
ii: a date that occurs after the date that the relevant return is filed for the period in which the excess arose.
5: In this section— family trust
a: a natural person for whom the settlor has natural love and affection; or
b: an organisation or a trust whose income is exempt under section CB 4(1)(c) or CB 4(1)(e) of the Income Tax Act 1994
c: a natural person that satisfies paragraph (a) paragraph (b) relative means
6: For the purpose of the relative
a: persons are connected by blood relationship if one is the child of the other:
b: persons are connected by marriage if one person is married to the other or the persons are in a de facto relationship:
c: persons are connected by adoption if one has been adopted as the child of the other.
7: For the purpose of subsection (6)(b) de facto relationship section 2D of the Property (Relationships) Act 1976 this Act section 2D(1) and 2D(4) of that Act the Tax Administration Act 1994
173N: Transfer of excess tax—rebates
Despite sections 173L and 173M section 41A
a: a date that occurs on or after the date of the request; and
b: a date that occurs after the date on which the taxpayer applies for a refund under section 41A
173O: Transfer of excess tax if no date specified by taxpayer
1: If a taxpayer or their agent requests a transfer under this Part but does not choose the date on which the excess is transferred, the Commissioner may transfer the excess on a date on which the Commissioner considers appropriate.
2: Even if the Commissioner transfers the excess on a date on which the Commissioner considers appropriate, the taxpayer or their agent may subsequently choose a date allowed by sections 173L and 173M Application of transfer rules to excess provisional tax
173P: Transfer of excess provisional tax if provisional tax paid is more than taxpayer's provisional tax liability, determined before assessment
1: This section applies in respect of excess provisional tax if—
a: a taxpayer or their agent requests a transfer allowed by section 173L, section 173M(2)(a) to 173M(2)(f), or section 173M(3)
b: on the date that the Commissioner actions the request, the taxpayer has paid more provisional tax for an income year than the provisional tax payable by that date; and
c: the request is actioned before an assessment is made under Part VI
2: The excess provisional tax that may be transferred on a particular date ( date A provisional tax paid - refunds - provisional tax liability where—
provisional tax paid: is the provisional tax paid for an income year on or before date A, including:
a: voluntary payments made under section MB 6 of the Income Tax Act 1994
b: tax transferred to the taxpayer:
refunds: are the refunds of the provisional tax that are paid to the taxpayer on or before date A, including transfers by the taxpayer or offsets by the Commissioner against unpaid tax:
provisional tax liability: is the provisional tax payable by date A.
3: The Commissioner must not transfer an amount on date A if, as a result, the taxpayer would not satisfy their provisional tax liability in respect of the income year on a date ( date B
173Q: Transfer of excess provisional tax if taxpayer estimates or revises estimate of residual income tax, determined before assessment
1: This section applies in respect of excess provisional tax if—
a: a taxpayer or their agent requests a transfer allowed by section 173L, section 173M(2)(a) to 173M(2)(f), or section 173M(3)
b: on the date that the Commissioner actions the request, the taxpayer—
i: has paid provisional tax for an income year based on an estimate of their residual income tax and, as a result of a revised estimate for the year, the taxpayer has paid more provisional tax than the revised estimate for the year; or
ii: pays provisional tax for an income year in accordance with section MB 2(1)(a) or section MB 2(1)(b) of the Income Tax Act 1994
c: the request is actioned before an assessment is made under Part VI
2: The excess provisional tax that may be transferred on a particular date ( date A provisional tax paid - refunds - estimated RIT where—
provisional tax paid: is the provisional tax paid for an income year on or before date A, including:
a: voluntary payments made under section MB 6 of the Income Tax Act 1994
b: tax transferred to the taxpayer:
refunds: are the refunds of the provisional tax that are paid to the taxpayer on or before date A, including transfers by the taxpayer or offsets by the Commissioner against unpaid tax:
estimated RIT: is the taxpayer's estimated residual income tax or revised estimated residual income tax that would be due by date A for the purpose of calculating interest under Part VII section 120K(4)
3: The Commissioner must not transfer an amount on date A if, as a result,—
a: a taxpayer to whom subsection (1)(b)(i) date B Part VII section 120K(4)
b: a taxpayer to whom subsection (1)(b)(ii) date B Part VII section 120K(4)
4: The amount that may be transferred under subsection (2)
a: if subsection (1)(b)(i)
b: If subsection (1)(b)(ii)
173R: Transfer of excess tax if provisional tax is more than taxpayer's residual income tax, determined after assessment
1: This section applies in respect of excess tax if—
a: a taxpayer or their agent requests a transfer allowed by section 173L, section 173M(2)(a) to 173M(2)(f), or section 173M(3)
b: on the date that the Commissioner actions the request, the taxpayer has paid more provisional tax than the taxpayer's residual income tax for an income year.
2: The excess provisional tax that may be transferred on a particular date ( date A provisional tax paid - refunds - residual income tax where—
provisional tax paid: is the provisional tax paid for the income year on or before date A, including:
a: voluntary payments made under section MB 6 of the Income Tax Act 1994
b: tax transferred to the taxpayer:
refunds: are the refunds of the provisional tax that are paid to the taxpayer on or before date A, including transfers by the taxpayer or offsets by the Commissioner against unpaid tax:
residual income tax: is the taxpayer's residual income tax that would be due by date A for the purpose of calculating interest under Part VII section 120K(4)
3: The Commissioner must not transfer an amount on date A if, as a result, the taxpayer would be liable to pay interest on unpaid tax under Part VII Part IX date B
4: The amount that may be transferred under subsection (2) Miscellaneous
173S: Transfers of interest on overpaid tax
1: If the Commissioner is liable to pay interest to a taxpayer under Part VII
2: The Commissioner may only transfer the interest on the date that it would have been payable under Part VII
173T: Application of excess tax if taxpayer has unsatisfied tax liability
If a taxpayer has excess tax and the Commissioner applies all or part of the excess in satisfaction of tax or another amount due, the taxpayer or their agent may request the Commissioner to apply all or part of the excess on a date allowed by section 173L
173U: Transfers of excess financial support
Despite sections 173L and 173M section 2(1) of the Child Support Act 1991
2: Subsection (1)
a: tax paid in excess, being tax on income derived in the 2002-03 and subsequent income years:
b: tax paid in excess, if—
i: the excess arises from an assessment made on or after 1 April 2002 and before the date that this Act receives the Royal assent; and
ii: the taxpayer notifies the Commissioner that Part XB Tax Administration Act 1994
c: tax paid in excess, if the excess arises from an assessment made on or after the date that this Act receives the Royal assent:
d: tax deducted on behalf of another taxpayer and paid on or after 1 April 2002:
e: a dividend withholding payment paid on or after 1 April 2002:
f: an application for a refund made under section 41A Tax Administration Act 1994
g: goods and services tax paid in excess, being goods and services tax payable on supplies made in taxable periods beginning on or after 1 April 2002:
h: gift duty, cheque duty, totalisator duty, lottery duty, gaming machine duty or casino duty paid in excess, being duty paid on or after 1 April 2002.
92: Sections 176 and 177 replaced
1: Sections 176 177
176: Recovery of tax by Commissioner
1: The Commissioner must maximise the recovery of outstanding tax from a taxpayer.
2: Despite subsection (1)
a: recovery is an inefficient use of the Commissioner's resources; or
b: recovery would place a taxpayer, being a natural person, in serious hardship.
177: Taxpayer may apply for financial relief
1: A taxpayer, or a person on a taxpayer's behalf, applies for financial relief by either—
a: making a claim stating why recovery of outstanding tax would place the taxpayer in serious hardship; or
b: requesting to enter into an instalment arrangement with the Commissioner by telephone or in writing.
2: The Commissioner may require a taxpayer, or a person on a taxpayer's behalf, to apply for financial relief under subsection (1)(a)
3: Upon receiving a request, the Commissioner may—
a: accept the taxpayer's request; or
b: seek further information from the taxpayer; or
c: make a counter offer; or
d: decline the taxpayer's request.
4: A taxpayer has 20 working days, or a longer period allowed by the Commissioner, to provide the information sought or to respond to a counter offer.
5: If the Commissioner receives information or a response from a taxpayer outside the time period allowed under subsection (4)
177A: Definition of serious hardship
1: In this section and sections 176, 177, 177B and 177C serious hardship
a: includes significant financial difficulties that arise because of—
i: the taxpayer's inability to meet minimum living expenses according to normal community standards; or
ii: the cost of medical treatment for an illness or injury of the taxpayer or the taxpayer's dependant; or
iii: a serious illness suffered by the taxpayer or the taxpayer's dependant; or
iv: the cost of education for the taxpayer's dependant; and
b: does not include significant financial difficulties that arise because—
i: the taxpayer is obligated to pay tax; or
ii: the taxpayer may become bankrupt; or
iii: the taxpayer's, or the taxpayer's dependant's, social activities and entertainment may be limited; or
iv: the taxpayer is unable to afford goods or services that are expensive or of a high quality or standard according to normal community standards.
2: The Commissioner may take into account whether the recovery of outstanding tax would place—
a: a shareholder who owns, or 2 shareholders who jointly own, 50% or more of the shares in a company in serious hardship; or
b: a shareholder-employee of a close company in serious hardship.
3: For the purpose of subsection (2) close company paragraph (a) close company section OB 1 of the Income Tax Act 1994
177B: Instalment arrangements
1: The Commissioner must not enter into an instalment arrangement with a taxpayer to the extent that the arrangement would place the taxpayer in serious hardship.
2: The Commissioner may decline to enter into an instalment arrangement if—
a: to do so would not maximise the recovery of outstanding tax from the taxpayer; or
b: the Commissioner considers that the taxpayer is in a position to pay all of the outstanding tax immediately; or
c: the taxpayer is being frivolous or vexatious; or
d: the taxpayer has not met their obligations under a previous instalment arrangement.
3: A taxpayer may renegotiate an instalment arrangement at any time.
4: The Commissioner may renegotiate an instalment arrangement at any time after the end of 2 years from the date on which the instalment arrangement was entered.
5: The renegotiation of an instalment arrangement is treated as if it were a new request for financial relief.
6: The Commissioner may cancel an instalment arrangement if—
a: it was entered into on the basis of false or misleading information provided by the taxpayer; or
b: the taxpayer is not meeting their obligations under the arrangement.
177C: Write-off of tax by Commissioner
1: The Commissioner may write off outstanding tax that cannot be recovered.
2: The Commissioner must write off outstanding tax that cannot be recovered in the following situations:
a: bankruptcy:
b: liquidation:
c: a taxpayer's estate has been distributed.
3: Despite subsection (1)
4: Despite subsection (2)
5: If the Commissioner writes off outstanding tax for a taxpayer who has a net loss, the Commissioner must extinguish all or part of the taxpayer's net loss, by dividing the amount written off by 33% and reducing the net loss by that amount.
6: For the purpose of subsection (5)
7: The Commissioner may reverse a write-off if—
a: outstanding tax is written off on the grounds of serious hardship, and the taxpayer for whom the debt was written off—
i: declares bankruptcy within a year of the outstanding tax being written off; or
ii: is subject to bankruptcy proceedings brought by a creditor within a year of the outstanding tax being written off; or
b: outstanding tax is written off on the grounds of serious hardship, and the taxpayer for whom the debt was written off is a company which, within a year of the outstanding tax being written off, is, or is in the course of being, liquidated; or
c: the outstanding tax was written off due to false or misleading information provided by the taxpayer.
8: If the Commissioner enters into an instalment arrangement that provides for some outstanding tax to be written off, the Commissioner may not reverse the write-off even if, during the term of the instalment arrangement, the taxpayer does not meet the instalment arrangement's terms.
177CA: Proof of debt
1: This section applies if—
a: a taxpayer has entered into an instalment arrangement with the Commissioner; and
b: the taxpayer is a person who has become bankrupt, or a company which is in the course of being liquidated.
2: Any amount outstanding under the instalment arrangement must be included in the Department's proof of debt.
2: Subsection (1)
3: Subsection (2)
a: to tax that is outstanding on and after 1 December 2002 and subject to an instalment arrangement that is entered into before 1 December 2002; or
b: if the Commissioner has advised the taxpayer, in writing before 1 December 2002, that the outstanding tax has been written off.
4: Subsection (3)(b) 1 December 2002 1 December 2002 Subsection (4) amended 17 October 2002 176 Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 by substituting the expression 1 December 2002 1 July 2002
93: New section 177D inserted
1: After section 177CA section 92
177D: Relief to taxpayers to whom new start grants payable
1: This section applies to a taxpayer to whom a new start grant is payable.
2: The Commissioner must grant relief—
a: to the taxpayer, or to a person or an entity associated with the taxpayer, to the extent that the Commissioner thinks it appropriate having regard to the matters referred to in section EZ 9(3) of the Income Tax Act 1994
b: from the payment of unpaid tax that relates to an income tax liability that would have arisen if the taxpayer's only gross income were derived from—
i: the farming business for which the new start grant was paid; or
ii: land used in carrying on the farming business; or
iii: the sale of the farm.
3: If a new start grant is paid to a taxpayer in respect of an adverse event, the Commissioner must grant additional relief—
a: to the taxpayer; and
b: from the payment of unpaid tax deductions or amounts owing to the Commissioner under the PAYE rules if the unpaid tax deductions or amounts owing relate to source deduction payments made in respect of the farming business for which the new start grant was paid.
2: Subsection (1)
94: New section 183AB inserted
1: After section 183A
183AB: Cancellation of late payment penalties imposed before 1 April 2002
1: The Commissioner must cancel a taxpayer's liability to pay—
a: 60% of an initial late payment penalty; or
b: an incremental late payment penalty.
2: The Commissioner must cancel a taxpayer's liability under subsection (1)
a: the tax to pay in respect of which the taxpayer would otherwise have had the liability is—
i: tax payable in one or more payments under an arrangement with the Commissioner; or
ii: tax in respect of which deductions are to be made and paid to the Commissioner under section 157 of this Act section 43 of the Goods and Services Tax Act 1985
b: the taxpayer complies with the taxpayer's obligations under the arrangement; and
c: the liability would otherwise have arisen after—
i: the arrangement was entered into; or
ii: the Commissioner exercised powers available to the Commissioner under section 157 of this Act section 43 of the Goods and Services Tax Act 1985
2: Subsection (1)
3: Amendments to other Inland Revenue Acts
Amendments to Goods and Services Tax Act 1985
95: Goods and Services Tax Act 1985
Sections 96 to 106 Goods and Services Tax Act 1985
96: Interpretation
1: In section 2 warranty
2: Subsection (1)
97: Meaning of input tax
1: After section 3A(4)
4A: For the purpose of subsections (1) and (2)
2: Subsection (1)
98: Meaning of term supply
1: After section 5(19)
20: A supply of services to which section 11A(1)(ma)
21: If goods and services are provided under warranty, the supply of the goods and services is treated as a supply of services for the purpose of section 11A(1)(ma)
2: Subsection (1)
99: Value of supply of goods and services
1: In section 10(12)(f) section 5(8)(c)(iii) section 5(8)(b)(iii)
2: In section 10(12)(g) section 5(8)(c)(iv) section 5(8)(b)(iv)
3: Subsections (1) (2)
100: Zero-rating of services
1: After section 11A(1)(m)
ma: the services relate to goods under warranty to the extent that the services are—
i: provided under the warranty; and
ii: supplied for consideration that is given by a warrantor who is not resident in New Zealand, not a registered person and who is outside New Zealand at the time the services are performed; and
iii: in respect of goods that were subject to tax under section 12(1) .
2: In section 11A(3) and (1)(l) , (1)(l) and (1)(ma)
3: Subsections (1) (2)
101: Exempt supplies
1: Section 14(3)
3: Penalty or default interest, or a charge in the nature of penalty or default interest, imposed under a contract for the supply of goods and services or an enactment (other than under section 132 of the Rating Powers Act 1988
2: Subsection (1)
102: Deductions from output tax for goods and services applied for making taxable supplies
1: Section 21F(3)
2: Subsection (1)
103: Timing of deduction under section 21F
1: After section 21G(1)
1A: Despite subsection (1) section 21F(1) section 21F(1)
2: Subsection (1)
104: Application to make single deduction under section 21F
1: In section 21H(3)(b) 21F(1) 21G(1)
2: In section 21H(3)(e)(i) section 21G this section
3: Subsections (1) (2)
105: Payment of tax relating to fringe benefits
1: In section 23A subsection (2)
2: Payment of the tax on the taxable value of the fringe benefit is treated as a payment of fringe benefit tax for the purposes of filing the fringe benefit return and Parts IVA, VI, VII, IX, X and XI of the Tax Administration Act 1994
2: Subsection (1)
a: on and after 31 May 2002, for an employer who pays fringe benefit tax on a quarterly or an annual basis; and
b: by the terminal tax date for the 2000-01 income year, for an employer who pays fringe benefit tax on an income year basis, and to subsequent fringe benefit tax returns required to be filed on an income year basis.
106: Commissioner's right to withhold payments
1: In section 46(6) paragraphs (b) (c) in accordance with that person's, or their agent's, request under section 173T of the Tax Administration Act 1994 set off
2: Subsection (1) Amendment to Estate and Gift Duties Act 1968
107: Estate and Gift Duties Act 1968
Section 108 Estate and Gift Duties Act 1968
108: Exemption for certain dispositions of relationship property
1: In section 75A(6) 95(5) 95
2: Subsection (1) Amendment to Student Loan Scheme Act 1992
109: Student Loan Scheme Act 1992
Section 110 Student Loan Scheme Act 1992
110: PAYE rules of Income Tax Act 1994 to apply to repayment deductions
1: Section 25(2) Student Loan Scheme Act 1992
a: omitting the expression IC 1, IC 2, IC 3 BC 2
b: omitting the expression NC 17, and OB 4 and NC 17
2: Subsection (1) Amendment to Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001
111: Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001
Section 112 Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001
112: Value of supply of goods and services
1: In section 239(1) before its replacement by section 90 of the Taxation (GST and Miscellaneous Provisions) Act 2000
2: Subsection (1)