Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003

1: Title
This Act is the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003.
2: Commencement
1: This Act comes into force on the day on which it receives the Royal assent, except as provided in this section.
2: Section 142
3: Sections 59(2) 62(2)
4: Section 104
5: Sections 60(1) 63(1)
6: Section 124
7: Sections 46(2) 131 138
8: Section 16(a)
9: Section 16(b)
10: Sections 121 122
11: Sections 23 95(20) 95(33) 107(1) to (3) 129 130 135 136 172
12: Sections 19 36 to 38 41 to 43(1) 44 45 46(3) 47 to 58 79 87 92 95(1) 95(3) 95(7) 95(8) 95(12) to (15) 95(26) 95(28) 95(31) 95(34) 96 99(1) 106 109 to 112 114 128 132
13: Sections 146(5) 146(6) 150(2)
14: Section 174(2) to (4)
15: Sections 43(2) 88
16: Section 174(1)
17: Sections 69 to 76
18: Sections 77(3) 80 to 83 100(2) and (3)
19: Sections 140(2) 141 143(2) 145 146(2) 146(3) 147 148 149(5) 149(6) 149(8) 154(2) 155 156 157(1) 158 160 164(1) to (3) 164(6) 165
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Income Tax Act 1994 Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
3: Income Tax Act 1994 Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004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: Non-profit bodies' and charities' exempt income
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
5: Certain pensions, benefits, and other compensation exempt
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
6: Other exempt income
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004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Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004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: Persons not required to calculate attributed foreign income and loss
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
9: Attribution of income and losses using branch equivalent method
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
10: New
section CG 7B Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
11: Meaning of fringe benefit
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
12: Value of fringe benefit
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
13: Government grants to businesses
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
14: Expenditure by group investment fund
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
15: Limitation of deduction for certain film expenditure to amount at risk
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
16: Year in which non-competitive levies and premiums under
Accident Insurance Act 1998 Injury Prevention, Rehabilitation, and Compensation Act 2001 Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
17: Cost of producing films
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
18: New subpart S inserted into Part E
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
19: New subpart DB inserted into Part F
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
20: Group investment funds
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
21: Gross income assessable to beneficiaries
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
22: Trustee income
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
23: Consequences of change in entity status for purpose of Maori authority rules
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
24: No offset in calculating some schedular income tax liabilities
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
25: Net loss offset between group companies
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
26: Rebate for gifts of money
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
27: Calculation of Part KD credit
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
28: Calculation of family tax credit
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
29: Rates for interim instalments for period ending on or after 1 July 1998
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
30: New
section KD 7B Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
31: Foreign tax credits—controlled foreign companies
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
32: Tax deductions to be credited against tax assessed
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
33: Underlying foreign tax credits generally, and interpretation
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
34: Refund of overpaid provisional tax
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
35: Payments to be set off within wholly-owned group
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
36: Tax pooling account
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
37: Transfers from tax pooling account
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
38: Section MBB 9 replaced
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
39: Refund of excess tax
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
40: Limits on refunds of tax
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
41: Application of income tax or dividend withholding payments not refunded
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
42: New
section MD 5 Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
43: New
sections ME 1B and 1C Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
44: Credits arising to imputation credit account
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
45: Debits arising to imputation credit account
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
46: Further tax payable where end of year debit balance, or when company ceases to be imputation credit account company
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
47: Heading replaced
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
48: Consolidated group to maintain separate imputation credit account
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
49: Credits arising to imputation credit account of group
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
50: Debits arising to imputation credit account of group
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
51: Debiting and crediting between consolidated group and individual companies
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
52: Application of specific imputation provisions to consolidated groups
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
53: Credits and debits arising to policyholder credit account of company
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
54: Use of credit balance to credit against company's policyholder base income tax liability, or transfer of credit balance to company's imputation credit account
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
55: Determinations by Commissioner as to credits and debits arising to policyholder credit account
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
56: Credits and debits arising to group policyholder credit account
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
57: Application of policyholder credit account provisions to consolidated group, etc
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
58: Debits and credits arising to imputation credit account or policyholder credit account on amalgamation
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
59: Credits and debits arising to branch equivalent tax account of company
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
60: Credits and debits arising to branch equivalent tax account of company
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
61: Use of credit to reduce dividend withholding payment or use of debit to satisfy income tax liability
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
62: Debits and credits arising to group branch equivalent tax account
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
63: Debits and credits arising to group branch equivalent tax account
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
64: Use of consolidated group credit to reduce dividend withholding payment, or use of group or individual debit to satisfy income tax liability
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
65: Credits arising to dividend withholding payment account
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
66: Further dividend withholding payment payable by company
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
67: Credits arising to group dividend withholding payment account
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
68: Debiting and crediting between group and individual dividend withholding payment accounts
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
69: Purpose
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
70: Accreditation requirements of PAYE intermediaries
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
71: Approval by Commissioner of employer arrangements with PAYE intermediary
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
72: Responsibilities and status under PAYE rules of employer in arrangement with PAYE intermediary
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
73: Responsibilities and status under PAYE rules of PAYE intermediary in arrangement with employer
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
74: Operation of trust account
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
75: Section NBB 7 replaced
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
76: Termination of employer arrangements with PAYE intermediary
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
77: Applications of tax codes specified in tax code declarations or tax code certificates
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
78: Applications of other provisions to amounts payable under PAYE rules
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
79: Definition of cash remuneration
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
80: Specified superannuation contribution withholding tax imposed
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
81: Employee election that specified superannuation contributions be subject to higher rate of specified superannuation contribution withholding tax
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
82: New
section NE 2AB Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
83: Section NE 3 Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
84: Payment period
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
85: Failure to deduct tax
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
86: Section NE 6 Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
87: Application of RWT rules
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
88: Deduction of resident withholding tax
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
89: Refunds of deductions
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
90: Certificates of exemption
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
91: Non-resident withholding tax deducted in error
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
92: Amount of dividend withholding payment to be deducted
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
93: Payment and recovery of dividend withholding payment, etc
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
94: Application of specific dividend withholding payment provisions to consolidated groups
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
95: Definitions
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
96: Meaning of source deduction payment—shareholder employees of close companies
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
97: Modifications to measurement of voting and market value of interests in case of continuity provisions
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
98: Determination of residence of company
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
99: References to particular regimes in former Act, etc
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
100: Schedule 1 Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
101: Schedule 12 section KD 5(6) Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
2: Amendments to
Tax Administration Act 1994
102: Tax Administration Act 1994 This Part amends the Tax Administration Act 1994
103: Interpretation
1: In section 3(1) to which the property is subject registration Act to which the property is subject
2: In section 3(1) specified dividends standard-cost household service section 91AA .
104: Giving of notices
1: After section 14(1)(b)
bb: sent to the person by post addressed to the person at a place given by the person as an address for communications in writing; or .
2: In section 14(1)(d) business. business; or
e: sent to that other person by post addressed to the person or that other person at a place given by that other person as an address for communications in writing.
105: Information to be furnished on request of Commissioner
1: Section 17(1B)
1B: For the purpose of subsection (1)
a: the New Zealand resident controls, directly or indirectly, a non-resident; and
b: the information or book or document is in the knowledge, possession or control of the non-resident.
2: In section 17(1C)
a: and sections 143(2) and 143A(2) subsection (1B)
b: held by paragraph (a)(i) in the knowledge, possession or control of
106: Shareholder dividend statement to be provided by company
After section 29(1)
1B: An Australian imputation credit account company must use, in a shareholder dividend statement, the term New Zealand imputation credit subsection (1)(g)
107: Annual returns of income not required
1: After section 33A(1)(a)(iii)
iiib: a taxable Maori authority distribution; or .
2: Section 33A(1)(a)(iv) section 90(1) Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003
3: In section 33A(1)(a)(iv) section 75(2) Taxation (Relief, Refunds and Miscellaneous Provisions) Act 2002 subparagraphs (i) to (iii) subparagraphs (i) to (iiib)
4: After section 33A(2)(c)
cb: received a total of more than $200 of gross income that included—
i: 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
ii: interest or a dividend that did not have a New Zealand source and from which a withholding tax was not deducted at source:
iii: beneficiary income; or .
5: Section 33A(2)(d) (e) (g)
6: Section 33A(2)(h)
7: Subsections (1) to (3)
8: Subsections (4) (5)
9: Subsection (6)
108: New
section 33B After section 33A
33B: Return not required for certain scheduler gross income
A natural person who derives scheduler gross income in an income year from providing a standard-cost household service is not required to furnish a return of income for the scheduler gross income if the person's scheduler income tax liability for the income year in respect of the scheduler gross income is zero and is calculated using no figure for an allowable deduction incurred by the taxpayer in providing the standard-cost household service that is not—
a: a figure that has been determined by the Commissioner under section 91AA of the Tax Administration Act 1994
b: calculated using a method that has been determined by the Commissioner under section 91AA of the Tax Administration Act 1994
109: Non-active companies may be excused from filing returns
1: In section 43A(4) that is resident in New Zealand A company
2: In section 43A(5) that is resident in New Zealand A company
110: Employer to furnish statement of specified superannuation contribution withholding tax
1: In section 47(1) or PAYE intermediary Every employer
2: In section 47(1)(a) or PAYE intermediary where the employer
3: In section 47(1)(b) or PAYE intermediary where the employer
4: In section 47(1)(c) or PAYE intermediary where the employer
5: Subsections (1) to (4)
111: Company dividend statement when imputation credit account company declares dividend
After section 67(1)(e)
eb: if the dividend was paid in Australian currency by an Australian imputation credit account company, the exchange rate between the New Zealand dollar and the Australian dollar that was used to calculate the imputation ratio: .
112: Annual imputation return
1: In section 69(1) paragraph (a) An imputation credit account company must furnish to the Commissioner an annual imputation return in the prescribed form for each imputation year, showing— .
2: After section 69(1)
1B: The annual imputation return required by subsection (1)
a: the last day of the July that next follows the imputation year, if the imputation credit account company is an Australian imputation credit account company that is not required to file a return of income for the income year that corresponds to the imputation year:
b: the last day on which the imputation credit account company is permitted by section 37
113: Imputation return to be furnished where Commissioner so requires or where company ceases to be an imputation credit account company
1: The heading to section 70 Imputation return to be furnished if: required by Commissioner; requirement for imputation credit account ceases; or balance retrospectively reduced to debit or to less than refund
2: After section 70(2)
2B: An imputation credit account company or consolidated imputation group that is affected by a refund or transfer relating to an amount in a tax pooling account, and occurring after the end of an imputation year, must furnish to the Commissioner a revised return for the imputation year within 2 calendar months of the date of the refund or transfer if, as a result of the application of section ME 5(2)(ec) or ME 12(2)(db) of the Income Tax Act 1994
a: a debit balance:
b: a balance that is less than the amount of a refund that the company would anticipate receiving but for section MD 2 of the Income Tax Act 1994
114: Annual imputation return to be furnished in respect of consolidated groups
1: In the heading to section 74 consolidated groups consolidated imputation group
2: The words before paragraph (a)
1: A nominated company for a consolidated imputation group must, subject to subsection (2) sections 69 and 70 .
3: In section 74(b) consolidated group ceasing to exist consolidated imputation group—
i: ceasing to be a consolidated imputation group; or
ii: ceasing to be an imputation group and becoming a consolidated group that is a consolidated imputation group; or
iii: ceasing to be a consolidated group that is a consolidated imputation group and becoming an imputation group .
4: In section 74(c) consolidated groups a consolidated imputation group
5: The following is added to section 74
2: The nominated company for a resident imputation subgroup is not required to furnish an annual imputation return under section 69 section ME 14(3)
115: Commissioner must issue income statement
1: Section 80D(1)
1: For each income year, the Commissioner must issue an income statement to a person who the Commissioner considers—
a: derived in the income year gross income that was—
i: income from employment:
ii: interest:
iii: dividends; and
b: did not derive in the income year any gross income that is not referred to in paragraph (a)
c: is a person—
i: to whom section 33A(1)
ii: to whom section 33A(1)
iii: to whom section 33A(1) section NC 16 of the Income Tax Act 1994
2: Subsection (1)
116: Income statement deemed assessment
1: Section 80H(2)
2: In section 80H(3) or (5) or (6)
3: Subsection (2)
117: Officers to maintain secrecy
1: After section 81(4)(e)
eb: communicating to a person who is an employee of the Department of Internal Affairs or the Ministry of Health information that—
i: the person is authorised by the Department or Ministry to receive; and
ii: the Commissioner considers is not undesirable to disclose and is essential to enable the person to carry out any duty lawfully conferred on the person relating to the determination of the problem gambling levy rate: .
2: Section 81(4)(n) section 23(2) Taxation (Simplification and Other Remedial Matters) Act 1998
o: communicating, for the purpose of section 82A Social Security Act 1964 Social Security Act 1964
3: After section 81(4)(o) subsection (2)
p: communicating, for the purpose of section 85F
118: New
section 85F
1: After section 85E
85F: Disclosure of information for verification of large budget screen production grant entitlement
1: The purpose of this section is to facilitate the exchange of information between the Commissioner and the Commission for the purpose of providing to the Commission information which the chief executive considers necessary to enable the Commission to determine the entitlement of a company to a large budget screen production grant.
2: For the purposes of subsection (1)
a: particulars relating to the amount of expenditure incurred in relation to a film that is the subject of an application for a large budget screen production grant:
b: particulars relating to the amount of expenditure incurred in New Zealand in relation to a film that is the subject of an application for a large budget screen production grant:
c: the Commissioner's opinion as to the accuracy of any information provided by an applicant in relation to the application for a large budget screen production grant:
3: In this section— chief executive section 13(1) of the New Zealand Film Commission Act 1978 Commission section 3 of the New Zealand Film Commission Act 1978 company section OB 1 of the Income Tax Act 1994 large budget screen production grant section OB 1 of the Income Tax Act 1994
4: If any of the information specified in subsection (2) Part 3 of this Act
2: Subsection (1)
119: Further secrecy requirements
1: In section 87(5)(c) information. information; or
2: After section 87(5)(c)
d: being a person who is an officer, employee, or agent of the New Zealand Film Commission responsible for the administration of the large budget screen production grant scheme and is authorised to receive information provided under section 85F
3: Subsections (1) (2)
120: New
section 91AA After section 91
91AA: Determinations in relation to standard-cost household service
1: For the purpose of the Inland Revenue Acts, the Commissioner may determine that a service is a standard-cost house hold service if—
a: the activity of providing the service is carried on by taxpayers who are natural persons; and
b: the activity of providing the service requires the use of each taxpayer's domestic accommodation in activities that commonly occur in a family household; and
c: the Commissioner considers that the determination would result in a significant reduction in compliance costs for providers of the service without inappropriate—
i: risk to the revenue of the Crown:
ii: demands on the resources of the Commissioner as a result of the administrative and enforcement duties that would be associated with the determination:
iii: inaccuracy, for a significant number of providers, of any determination by the Commissioner of the costs of providing the service.
2: For the purpose of calculating the income tax liability of natural persons who derive gross income in an income year from a standard-cost household service, the Commissioner may determine for the income year and the standard-cost household service—
a: requirements for the exemption under section CB 9(h)
b: a figure for a cost or costs that for the purpose of this Act may be treated as being incurred by a taxpayer in deriving exempt income from providing the standard cost household service:
c: a method that a taxpayer may use to calculate a figure for a cost or costs that for the purpose of this Act may be treated as being incurred by a taxpayer in deriving exempt income from providing the standard-cost household service:
d: a figure for a cost or costs that for the purpose of this Act may be treated as being incurred by a taxpayer in deriving gross income from providing the standard-cost household service:
e: a method that a taxpayer may use to calculate a figure for a cost or costs that for the purpose of this Act may be treated as being incurred by the taxpayer in deriving gross income from providing the standard-cost household service:
f: requirements for the application of a determination under paragraphs (a) to (e)
3: A taxpayer who in an income year derives gross income from providing a standard-cost household service may, in calculating the taxpayer's income tax liability for the income year, elect to use a figure for a cost or costs or a method of calculating such a figure that the Commissioner has determined under subsection (2)
4: A taxpayer who makes an election under subsection (3)
5: If the Commissioner is satisfied that a determination that is made under this section should be varied or rescinded, or restricted or extended in scope, the Commissioner may make a fresh determination that varies, rescinds, restricts or extends that determination.
6: A determination that is made by the Commissioner under this section must be published in the Gazette
7: A determination that is made by the Commissioner under this section may apply for income years that are specified in the determination.
121: Commissioner to make private rulings on request
In section 91E(4)(j) generally accepted accounting principle generally accepted accounting practice
122: Commissioner may make product rulings
In section 91F(4)(h) generally accepted accounting principle generally accepted accounting practice
123: Assessment of qualifying company election tax and late payment penalty
1: In section 94(2) paragraph (a) additional tax late payment penalty
2: Subsection (1)
124: Assessment of non-resident withholding tax
In section 100(2) on objection in proceedings challenging the assessment
125: Assessment where default made in furnishing returns
1: In section 106(1B) this subsection subsection (1A)
2: Section 106(1B)
1B: Tax assessed under subsection (1A) section 89D
3: Subsection (1)
4: Subsection (2)
126: Definitions
1: In section 120C(1) paragraph (b)(iii) interest period has overpaid tax of $50 or more is required by section MD 1(1A) of the Income Tax Act 1994
2: Subsection (1)
a: are issued on or after 15 May 2003; and
b: relate to the 2002-03 or a subsequent income year.
127: Certain rights of objection not conferred
In section 125(d) CB 5(1)(g) and (i) CB 5(1)(g)
128: Late filing penalties
1: In section 139A(1) the annual imputation return required to be furnished under section 69(1) and (1B)(a) the reconciliation statement
2: Section 139A(2)(a)
a: the taxpayer does not complete and provide on time—
i: an annual tax return:
ii: an annual imputation return required to be furnished under section 69(1) and (1B)(a)
iii: a reconciliation statement:
iv: an employer monthly schedule; and .
3: In section 139A(4) a an annual imputation return or
4: In section 139A(5) annual imputation return or employer monthly schedule
129: Promoter penalties
1: In section 141EB(4)(b) taken the tax position that the arrangement produced taken a tax position under which the arrangement is treated as producing
2: Subsection (1)
130: Reduction of penalties for previous behaviour
Section 141FB(2)(b)(i)
131: New
section 141FC
1: After section 141FB
141FC: Loss attributing qualifying companies-reduction of shortfall penalties
1: This section applies if, as a consequence of the attribution of a net loss for an income year by a loss attributing qualifying company to a shareholder of the company and the subsequent disallowance of one or more deductions, shortfall penalties are imposed on the company and a shareholder of the company.
2: If a loss attributing qualifying company to which this section applies pays in full the amount of a shortfall penalty referred to in subsection (1)
a: the amount of the shortfall penalty imposed on the shareholder, before the application of this section; and
b: the amount given by the following formula: where—
a: is the amount of the shortfall penalty imposed on the company:
b: is the amount of the net loss that was attributed to the shareholder by the company:
c: is the amount of the net loss for the income year that was attributed to shareholders by the company.
2: Subsection (1)
132: Due date for payment of late filing penalty
In section 142(1)(c) reconciliation statement. reconciliation statement; or
d: for an annual imputation return required to be furnished under section 69(1) and (1B)(a)
133: Absolute liability offences
Section 143(2)
2: No person may be convicted of an offence against subsection (1)(b)
a: the person did not have the information in the person's knowledge, possession or control; and
b: no non-resident, who under section 17(1C)
134: Knowledge offences
Section 143A(2)
2: No person may be convicted of an offence against subsection (1)(b)
a: the person did not have the information in the person's knowledge, possession or control; and
b: no non-resident, who under section 17(1C)
135: Recovery of excess tax credits allowed
In section 165A(2) of the Income Tax Act 1994 sections LC 3, LC 4(11) and LD 1(6)
136: Recovery of tax deductions from employers or PAYE intermediaries
1: After section 167(2)
2B: This section applies to a person instead of an employer if—
a: the person is acting as a PAYE intermediary for the employer in relation to an employee and a pay period; and
b: the employer, for the pay period, has—
i: paid to the person the salary or wages relating to the employee as required by section NBB 4(1)(b) of the Income Tax Act 1994
ii: provided the information required by the person as required by section NBB 4(1)(d) of the Income Tax Act 1994
2C: For the purpose of applying this section to a person acting as a PAYE intermediary, a reference to an employer person acting as a PAYE intermediary
2: Section 167(3) (4) section 142(2) Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003
3: Subsections (1) (2)
137: Unpaid tax deductions, etc, to constitute charge on employer's property
1: Section 169(3) to (5)
3: Despite section 23(b) of the Personal Property Securities Act 1999
4: Particulars recorded under subsection (3)
4B: If a mortgage that affects the same property is registered before the registration of the charge under this section and money secured by the mortgage is advanced after the registration of the charge under this section, the charge has priority over the mortgage in respect of that money.
5: On the satisfaction of a registered charge, the Commissioner must release the charge in the manner required by the Act under which it was registered, with such modifications as may be necessary, and without being required to pay a fee.
2: In section 169(9) and the order shall be subject to stamp duty accordingly;
3: Section 169(11)
11: In this section, registration Act, in relation to any property, includes—
a: the Statutory Land Charges Registration Act 1928
b: the Personal Property Securities Act 1999
138: New
section 181C After section 181B
181C: Remission of late payment penalties and interest incurred due to obligation to pay further income tax
1: This section applies to a company that is liable—
a: under section ME 9(1) of the Income Tax Act 1994
b: under section 139B
2: The Commissioner must remit any interest under section 120D subsection (1)(b)
3: Amendments to other Acts
Amendments to Goods and Services Tax Act 1985
139: Goods and Services Tax Act 1985 Sections 140 to 169 Goods and Services Tax Act 1985
140: Interpretation
1: This section amends section 2(1)
2: In the definition of goods or money , money or a product that is transmitted by a non-resident to a resident by means of a wire, cable, radio, optical or other electromagnetic system or by means of a similar technical system
3: After the definition of non-profit body non-resident .
141: Meaning of associated persons
After section 2A(1)(b)
bb: a person, or a branch or division of the person that is treated as a separate person under section 56B section 56B .
142: Meaning of term financial services
In section 3(3)(c) (as defined in section 2(1) of the Companies Amendment Act 1964 (as defined in section 121A of the Land Transfer Act 1952
143: Meaning of input tax
1: Section 3A(2)(b)(i)
i: is a non-resident; and .
2: Section 3A(2)(c)
c: the goods are acquired for the principal purpose of making taxable supplies and—
i: the taxable supplies are not charged with tax at the rate of 0% under section 11
ii: the taxable supplies are charged with tax at the rate of 0% under section 11A(1)(q) or (r)
144: Meaning of term supply
1: After section 5(7)
7B: For the purposes of this Act, a local authority is treated as supplying goods and services to a person if the local authority requires a contribution from the person as—
a: a financial contribution that is a condition of a resource consent under the Resource Management Act 1991
b: a development contribution under the Local Government Act 2002
7C: For the purposes of this Act, a person who makes a contribution to a local authority is treated as supplying goods and services to the local authority to the extent that the contribution consists of land and is—
a: a financial contribution that is a condition of a resource consent under the Resource Management Act 1991
b: a development contribution under the Local Government Act 2002
2: Subsection (1) Resource Management Act 1991
a: the requirement for the contribution is imposed on or after the day on which this Act receives the Royal assent:
b: the requirement for the contribution is imposed on or after 1 October 1991, and before the day on which this Act receives the Royal assent, and the local authority treated—
i: the contribution as being made in relation to a taxable supply; and
ii: the taxable supply as being charged with tax at a rate other than 0%.
3: Subsection (1) Local Government Act 2002
145: New
section 5B After section 5
5B: Supply of certain imported services
For the purpose of the definition of output tax and sections 8(1), 15, 15A, 19A, 20(4), 20B, 25AA, 51, 52, 57, 75, 76(6), 78B, 78BA and 78C section 8(4B) .
146: Imposition of goods and services tax on supply
1: In section 8(2) (3) (4) not resident in New Zealand a non-resident
2: After section 8(4)
4B: Despite subsection (2) subsections (3)(b) and (4)
a: the services are supplied by a non-resident to a resident; and
b: the recipient of the supply—
i: does not, in the 12-month period that ends with the month in which the supply of the services is made, make supplies of which at least 95% in total value are taxable supplies; and
ii: does not at the time of the supply have reasonable grounds for believing that the recipient of the supply will, in the 12-month period that begins with the month in which the supply of the services is made, make supplies of which at least 95% in total value are taxable supplies; and
c: the supply would be a taxable supply if made in New Zealand by a registered person in the course or furtherance of a taxable activity carried on by the registered person.
4C: An allocation of costs by a non-resident to a resident is treated as being a supply of services that satisfies section 8(4B)(a) and (c)
3: In section 8(5) Subsections (3) and (4) Subsections (3), (4) and (4B)
4: In section 8(6) not resident in New Zealand a non-resident
5: In section 8(8) a telecommunications supplier who is not resident in New Zealand a non-resident
6: Section 8(9)
9: For the purposes of subsection (6) and section 11AB
a: is identified by the supplier of the services as being—
i: the person who controls the commencement of the supply:
ii: the person who pays for the services:
iii: the person who contracts for the supply; and
b: if more than 1 person satisfies paragraph (a)
147: Time of supply
In section 9(2)(a)(iii) performed: performed, unless subparagraph (iv)
iv: in the case of a supply of services that is treated by section 8(4B) .
148: Value of supply of goods and services
1: In section 10(3) subsections (3A) subsections (3A), (3B), (3C), (3D)
2: Section 10(3A)
3A: Subsection (3)
a: the recipient acquired the supply for the principal purpose of making taxable supplies; and
b: the recipient is entitled to make a deduction under section 20(3)
i: the amount of the deduction were determined under section 3A(3)(e) section 3A(3)(a)
ii: there were consideration for the supply:
iii: the supplier were a registered person who had complied with the requirements of the Act; and
c: the supply is not a supply of financial services to which subsection (3B)
3B: If a supply of financial services is charged with tax at a rate of 0% under section 11A(1)(q) or (r) section 20C
a: subsection (3)
b: the consideration for the supply is treated as being the open market value of the supply if—
i: the supply is made by a person for consideration that is more than the open market value of the supply; and
ii: the supplier and the recipient are associated persons.
3C: Subsection (3) section 8(4B)
a: the amount of the consideration for the supply is a deduction under the Income Tax Act 1994
b: the amount of the consideration for the supply would have been a deduction under the Income Tax Act 1994
3D: Subsection (3) section 8(4B)
a: the recipient of the supply is a branch or division that is treated by section 56B
b: the amount of the consideration for the supply would have been a deduction under the Income Tax Act 1994
i: the branch or division were entitled to deductions under the Income Tax Act 1994
ii: the branch or division had given any consideration for the supply.
3E: The value of a supply of services that is treated by section 8(4B)
3: After section 10(15B)
15C: If a non-resident makes a supply of services to a resident who is a member of the same group of companies under section IG 1 of the Income Tax Act 1994 section 56B sections 5B and 8(4B)
a: the amount of the consideration for the supply that represents salary or wages paid to an employee of—
i: the non-resident:
ii: a company that is in a wholly-owned group with the non-resident under section IG 1 of the Income Tax Act 1994
b: the amount of the consideration for the supply that represents interest incurred by—
i: the non-resident:
ii: a company that is in a wholly-owned group with the non-resident under section IG 1 of the Income Tax Act 1994
149: Zero-rating of services
1: After section 11A(1)(c)
cb: the services, including ancillary activities such as loading, unloading, handling and storing, are the transport of household goods from a place in New Zealand to another place in New Zealand, if—
i: the services are supplied to a person who, at the time of the supply, is non-resident and outside New Zealand; and
ii: the goods are entered for home consumption under the Customs and Excise Act 1996
iii: the arrangement for the supply of the services is made before the goods are entered; and
iv: the services are reasonably expected to be completed within the period of 28 days that begins on the date of entry of the goods; or .
2: In section 11A(1)(d) paragraphs (a) to (c) paragraphs (a) to (cb)
3: In section 11A(1)(k) (1) (ma)(ii) not resident in New Zealand a non-resident
4: Section 11A(1)(m)
m: the services are supplied—
i: directly in connection with goods, the supply of which was subject to any one of section 11(1)(a) to (e)
ii: to a recipient who, when the services are performed, is a non-resident and outside New Zealand; or .
5: In section 11A(1)(p) New Zealand. New Zealand; or
q: the services are financial services that are supplied in respect of a taxable period, by a registered person who has made an election under section 20F paragraph (r)
i: a 12-month period that includes the taxable period; or
ii: a period acceptable to the Commissioner; or
r: the services are financial services that are supplied in respect of a taxable period, by a registered person who has made an election under section 20F section IG 1 of the Income Tax Act 1994
i: the members of the group make supplies of goods and services to persons who are not members of the group in respect of—
A: a 12-month period that includes the taxable period; or
B: a period acceptable to the Commissioner; and
ii: not less than 75% of the total value of the supplies referred to in subparagraph (i) paragraph (q)
6: After section 11A(1)
1B: Subsection (1)(j) section 8(4B)
a: the time and place at which the services are physically performed; and
b: no other time or place.
7: In section 11A(2) (4) not resident in New Zealand a non-resident
8: After section 11A(4)
5: The availability of a deduction under subsection (1)(q) and (r) section 20E
9: Subsections (1) (2)
150: Zero-rating of telecommunications services
1: In section 11AB(a) resident in New Zealand who is a resident
2: In section 11AB(b) person outside New Zealand person
151: Zero-rating of supply by territorial authority
1: In the heading to section 11B supply by territorial authority some supplies by territorial authorities, some supplies involving contributions to local authorities
2: After section 11B(1)
1B: If a supply under section 5(7B) section 8
1C: If a supply under section 5(7C) section 8
3: Subsection (2)
152: Exempt supplies
1: Section 14(3)
3: An amount is treated as being consideration for an exempt supply if it is—
a: penalty or default interest, or a charge in the nature of penalty or default interest, that is imposed—
i: under a contract for the supply of goods and services:
ii: under an enactment:
b: a penalty imposed on unpaid rates under the Local Government (Rating) Act 2002
c: a postponement fee, or a part of a postponement fee, that is imposed under section 88 of the Local Government (Rating) Act 2002
2: Subsection (1)
153: Other returns
In section 18 and 19 of this Act and 19B
154: Calculation of tax payable
1: In the words before section 20(2)(a) and no deduction calculated under section 25(2)(b) or (5) input tax
2: In section 20(2)(c) relates: relates; or
d: the supply is a supply of services that is treated by section 5B .
3: In section 20(3)(a)
a: in the words before subparagraph (i) amount of input tax— amount of the following:
b: in subparagraph (i) input tax in relation to
c: in subparagraph (ia) input tax in relation to
d: in subparagraph (ii) input tax invoiced or paid
e: subparagraph (iii)
iii: any amount calculated in accordance with any one of sections 25(2)(b), 25(5), 25AA(2)(b) or 25AA(3)(b) .
4: In section 20(3)(b)
a: in the words before subparagraph (i) amount of input tax— amount of the following:
b: in subparagraph (i) input tax in relation to
c: in subparagraph (ii) input tax paid
d: in subparagraph (iii) input tax in relation to
e: subparagraph (iv)
iv: any amount calculated in accordance with any one of sections 25(2)(b), 25(5), 25AA(2)(b) or 25AA(3)(b)
5: In paragraphs (iii) (iva) not resident in New Zealand a non-resident
6: In section 20(3)(g) period: period; and
h: any amount calculated in accordance with section 20C
i: any amount calculated in accordance with section 26 .
7: In section 20(4)(b)
a: in subparagraph (i) or 25(4); or 25(4) and is not treated by section 8(4B)
ib: to the extent that payment for the supply has been made during the taxable period, if the supply is a supply of services that is treated as being made in New Zealand by section 8(4B) sections 9(1), 9(3)(a), 9(3)(aa), 9(6), 9(8), 25AA(2)(a) or 25AA(3)(a)
b: subparagraph (ii)
ii: if the supply of goods and services is made during the taxable period by the registered person and neither of subparagraphs (i) and (ib)
155: New
sections 20C to 20F After section 20B
20C: Goods and services tax incurred in making certain supplies of financial services
Subject to this section, a registered person who has made an election under section 20F direct supplier section 20(3)(h) where—
a: is the total amount that the registered person would be able to deduct under section 20(3) section 20(3)(h)
b: is the total value of exempt supplies of financial services by the registered person to the direct supplier in respect of the taxable period:
c: is the total value of supplies by the registered person in respect of the taxable period:
d: is the total value of taxable supplies by the direct supplier in respect of the taxable period, determined under section 20D
e: is the total value of supplies by the direct supplier in respect of the taxable period, determined under section 20D
20D: Determining availability of deduction under
section 20C If a person makes a return that includes a figure for a deduction under section 20C section 20C
20E: Determining supplies charged at 0% under
section 11A(1)(q) and (r) If a person makes a return that includes a figure for the value of supplies charged with tax at a rate of 0% under section 11A(1)(q) and (r) section 11A(1)(q) and (r)
a: on the basis of the statistics of the supplies made by the other person; or
b: using a method that is approved by the Commissioner.
20F: Election that
sections 11A(1)(q) and (r) and 20C
1: A registered person may give written notice to the Commissioner of an election that the registered person be subject to sections 11A(1)(q) and (r) and 20C
2: An election under subsection (1)
a: applies for the taxable period in which the Commissioner receives the notice and for subsequent taxable periods until the election is cancelled:
b: is cancelled from the end of the taxable period—
i: in which the registered person ceases to have a taxable activity, if subparagraphs (ii) and (iii)
ii: that is nominated in a written notice of cancellation that the Commissioner receives from the registered person, if the notice of cancellation nominates a taxable period after which the cancellation is to be effective; or
iii: in which the Commissioner receives from the registered person a written notice of cancellation, if the notice of cancellation does not nominate a taxable period after which the cancellation is to be effective.
156: Timing of deduction under
section 21F
1: In section 21G(1A) and subject to subsection (1B) Despite subsection (1)
2: After section 21G(1A)
1B: Subsection (1A) section 21E
157: Application to make single deduction under
section 21F
1: Section 21H(2)
2: Subsection (1)
a: cost less than $18,000:
b: are applied for a different purpose as a consequence of a change in this Act.
2: In section 21H(3)(d) section 21 section 21(1)
3: Subsection (2)
158: New
section 24B After section 24
24B: Records to be kept by recipient of imported services
A registered person who receives a supply of services that is treated by section 8(4B)
a: the name and address of the supplier:
b: the date on which, or the period during which, the supply was received:
c: a description of the services supplied:
d: the consideration for the supply:
e: the time by which payment of the consideration for the supply is required:
f: the amount of the consideration for the supply that the registered person has treated as not affecting the value of the supply in reliance on section 10(15C)(a)
g: the amount of the consideration for the supply that the registered person has treated as not affecting the value of the supply in reliance on section 10(15C)(b)
159: Credit and debit notes
1: In section 25(2)(b) deduction of input tax deduction
2: In section 25(5) deduction of input tax pursuant to deduction under
160: New
section 25AA After section 25
25AA: Consequences of change in contract for imported services
1: Despite section 25 sections 5B and 8(4B)
a: any one of the following is satisfied:
i: the supply of services has been cancelled:
ii: the nature of the supply of services has been fundamentally varied or altered:
iii: the previously agreed consideration for the supply of services has been altered, whether due to the offer of a discount or otherwise:
iv: the services or part of the services supplied have been returned to the non-resident; and
b: an incorrect return has been made for the taxable period for which output tax on the supply is attributable.
2: A person who has accounted for an incorrect amount of output tax must make an adjustment to the calculation of tax payable in the return for the taxable period in which it becomes apparent that the amount of output tax was incorrect, and if the output tax properly charged on the supply is—
a: more than the output tax actually accounted for by the person, the amount of the excess is treated as being tax charged in relation to a taxable supply made by the person:
b: less than the output tax actually accounted for by the person, the amount of the deficiency is a deduction under section 20(3)
3: A person who has accounted for an incorrect amount of deductions must make an adjustment to the calculation of tax payable in the return for the taxable period in which it becomes apparent that the amount of deductions was incorrect, and if the deduction properly resulting from the supply is—
a: less than the deduction actually claimed by the person, the amount of the deficiency is treated as being tax charged in relation to a taxable supply made by the person:
b: more than the deduction actually claimed by the person, the amount of the excess is a deduction under section 20(3)
161: Commissioner's right to withhold payments
1: Section 46(6) to (9)
6: If, but for this subsection, a registered person would be entitled to an amount as a refund under section 19C(8) or 20(5) or 45 Tax Administration Act 1994 Part 7 of the Tax Administration Act 1994 section 173T of the Tax Administration Act 1994
a: tax that is payable by the person:
b: an amount that is payable by the person under another Inland Revenue Act.
7: If, but for this subsection, a person who is a specified agent of an incapacitated person, as those terms are defined in section 58(1) section 20(3) section 58(1C)
a: tax that is payable by the incapacitated person:
b: an amount that is payable by the incapacitated person under another Inland Revenue Act.
2: Subsection (1)
162: Persons making supplies in course of taxable activity to be registered
In section 51(1)(e) not resident in New Zealand non-residents
163: Cancellation of registration
1: In section 52(2) in writing by notice in writing or by telephone
2: In section 52(3) notify the Commissioner of that fact inform the Commissioner of that fact by notice in writing or by telephone
3: Section 52(4)
4: Any information provided by a registered person to the Commissioner under subsection (3)
164: Group of companies
1: In section 55(7) Where any companies Subject to subsection (7B)
2: In section 55(7)(d) by or to by
3: After section 55(7)(da)
dab: subject to paragraph (c) .
4: In section 55(7)(db)
a: acquired or produced or applied by any member
b: subsequently
c: first-mentioned acquisition or production or
5: In section 55(7)(dc) subsequently
6: After section 55(7)
7B: Subsection (7) paragraphs (b) and (e) to (h) section 8(4B)
165: New
section 56B After section 56
56B: Branches and divisions in relation to certain imported services
1: This section applies to a supply of services that is treated by section 8(4B)
2: If a person carries on activities both inside and outside New Zealand through branches or divisions—
a: each branch or division is treated as being a separate person; and
b: a branch or division inside New Zealand is treated as being a resident; and
c: a branch or division outside New Zealand is treated as being a non-resident; and
d: an activity earned on by a branch or division is treated as being carried on separately by the branch or division.
3: For the purpose of this section, a head office of a company is a branch or division of the company.
4: This section applies whether or not a branch or division of the person is registered under section 56
166: Personal representative, liquidator, receiver, etc
1: In section 58(1C) section 46(8) section 46(7)
2: Subsection (1)
167: Agents and auctioneers
1: In section 60(6)(a) (7)(a) not resident in New Zealand a non-resident
2: In section 60(7)(b) resident in New Zealand a resident
168: Effect of imposition or alteration of tax
After section 78(5)
6: This section does not apply to a supply of services that is treated by section 8(4B)
169: New
section 84B After section 84
84B: Supplies of services made before insertion of
section 8(4B)
1: This section applies to a supply of services that is treated by section 8(4B)
a: the supply has a time of performance under section 84(1) to (1B) section 146(2) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003
i: the supply would, but for this section, be treated by section 9 or sections 21 to 21H
ii: the value of the supply is ascertainable; or
b: the supply has a time of performance under section 84(1) to (1B) section 146(2) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 section 9 or sections 21 to 21H
2: A supply of services that satisfies subsection (1)(a) section 9 or sections 21 to 21H
3: A supply of services that satisfies subsection (1)(b)
a: section 9 or sections 21 to 21H section 8
b: the date on which section 146(2) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 section 20
4: A payment that is in respect of a supply that satisfies subsection (1)(b) section 146(2) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 section 20(3)(b)(i) and (4)(b)(i) Amendment to Personal Property Securities Act 1999
170: Personal Property Securities Act 1999 Section 171 Personal Property Securities Act 1999
171: When Act does not apply
In section 23(b) (other than section 169 of the Tax Administration Act 1994 sections 169 and 184 of the Child Support Act 1991 Act Amendment to Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 This heading was repealed 1 April 2005 YA 2 Income Tax Act 2004
172: Definitions
Section 172 repealed 1 April 2005 YA 2 Income Tax Act 2004 Amendments to Gaming Duties Act 1971
173: Interpretation
1: In the definition of special investments in section 3 Gaming Duties Act 1971 section 69(1) Racing Act 2003 (excluding GST) total amount
2: Subsection (1) sections 4(3)(b) 4(4)(a) (b) Gaming Duties Act 1971
174: Totalisator duty
1: In section 4(2) Gaming Duties Act 1971 8/9 x (amounts - refunds - winning dividends - fractions)
2: In section 4(3) Gaming Duties Act 1971 (excluding GST) total of all amounts
3: In section 4(3)(a) Gaming Duties Act 1971 including GST excluding GST
4: In section 4(3)(b) Gaming Duties Act 1971 (excluding GST, if any) dividends Amendment to Gambling Act 2003
175: Schedule 9 In Schedule 9 Gambling Act 2003 section 3 Gaming Duties Act 1971 lottery section 4(1) of the Gambling Act 2003 .