Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010

1: Title
This Act is the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010.
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 195(2)
3: Section 198
4: Section 192
5: Sections 199 202 207(1) and (3) 208 211(1) and (3)
6: Sections 200 201 207(2)
7: Sections 66 131 134 135 170 204 205 206
8: Sections 197 203
9: Sections 5 10 11 17 25 26 27 30 31 36 37 38 42 52 53 54 55 57 58 59 60 61 62 63 64 65 75 81 82 83 84 86 87 89 90 92 95 97 98 99 100 105 106 107 108 112 116 117(2), (4), (5), (8), (10), (23), (28), and (33) 118 119 121(1), (2), and (4) 127 128 130(1) to (3) 136 138 145 195(5) 211(2) and (4)
10: Section 195(4)
11: Section 56
12: Sections 6(1), (2), (3), and (5)(b) 20 21 28(1) and (5)(b) 117(9), (18), (22), and (24)
13: Section 117(12)
14: Sections 43 44 103 104 109 110 149(1)
15: Sections 178 179 180
16: Section 14
17: Sections 23 32 to 35 117(11) and (14) 126(3)
18: Sections 101 102
19: Sections 7 8 9 19 24 67 70 72(3) and (4) 73 74 80 91 93 113 115 117(13), (15), (19), (20), (21), (29), and (34) 120 121(3) 122 123 124 126(6) 129 130(4) and (5) 137 186
20: Sections 76 77 78 79 117(6), (25), and (31)
21: Sections 6(4) and (5)(a) 18 22 28(2), (3), (4), and (5)(a) 29 45 46 47 48 49 50 85 117(7), (26), and (35) 189(3) 191
22: Sections 39 to 41 51
23: Sections 69 71 72(1) and (2) 111
24: Sections 12 16 68 88 96 114 117(16), (27), (30), and (32) 132 133 173
25: Sections 13 94 117(3) and (17) 176(1) and (3) 183 184 188 189(1), (2), (4), and (5)
1: Annual rates of income tax
3: Annual rates of income tax for 2010–11 tax year
Income tax imposed by section BB 1 schedule 1
2: Amendments to Income Tax Act 2007
4: Income Tax Act 2007
Sections 5 to 124 amend the Income Tax Act 2007 2010-09-07 Income Tax Act 2007 all provisions commencing on 7 September 2010 and all treated as coming into force earlier (so, lots of them) 2010-09-26 Income Tax Act 2007 Sections 39 to 41 and 51 2010-10-01 Income Tax Act 2007 Sections 69, 71, 72(1) and (2) and 111 2011-04-01 Income Tax Act 2007 sections 12, 16, 68, 88, 96, 114, 117(16), (27), (30) and (32) come into force on the first day of the second month after the month in which the Governments of Australia and New Zealand exchange notes, as provided by clause 21 of the Arrangement between them on trans-Tasman retirement savings portability 2013-07-01 Income Tax Act 2007 Sections 13, 94, 117(3) and (17)
5: Amounts derived by mutual associations
1: Section CB 33(2) Income: other income provisions
2: If the association derives from the transaction an amount that would, in the absence of this subsection, be income under a provision in this Part but for the mutual character of the transaction, the amount is income of the association.
2: Subsection (1) applies for the 2008–09 and later income years.
6: Disposal of emissions units
1: After section CB 36(4) Surrender of unit: under forest sink covenant
4B: The person is treated as selling the unit for an amount of zero if the person transfers the emissions unit to the Crown under a forest sink covenant under section 67Y of the Forests Act 1949.
2: Section CB 36(6) Surrender of post-1989 forest land emissions unit or forest sink emissions unit: for other purposes
6: The person is treated as selling a post-1989 forest land emissions unit or forest sink emissions unit for an amount equal to the unit's market value if the person surrenders the emissions unit other than—
a: for emissions in relation to post-1989 forest land:
b: by a transfer to the Crown under a forest sink covenant under section 67Y of the Forests Act 1949.
3: The heading to section CB 36(9) Excluded income: pre-1990 forest land emissions unit
4: After section CB 36(9) Excluded income: fishing quota emissions unit
10: Section CX 51C (Disposal of fishing quota emissions units) applies to the disposal to another person of a fishing quota emissions unit.
5: In section CB 36
a: fishing quota emissions unit
b: forest sink emissions unit
7: Distribution excluded from being dividend
In section CD 2 section CD 34 section CD 34B
8: Section CD 34 repealed
Section CD 34
9: New section CD 34B inserted
Before section CD 35
CD 34B: Distributions to members of co-operative companies
What this section applies to
1: This section applies to a distribution by a co-operative company, or by a company (a subsidiary
a: the distribution is made after the Commissioner has received, from the co-operative company, an election in writing to apply this section; and
b: the election has not been revoked. General rule: co-operative company distributions not dividends
2: If the requirements in subsection (4) are met, a distribution by a co-operative company, or by a subsidiary, to a member of the co-operative company is not a dividend, to the extent to which the distribution is for their––
a: transaction shares:
b: projected transactions shareholding:
c: limited non-transaction shares. Exception: distributions for excess shareholdings
3: Subsection (2)(c) is ignored,––
a: for a distribution to a member, if the member holds shares in the co-operative company that—
i: are not transaction shares, are not their projected transactions shareholding, and are not limited non-transaction shares; and
ii: may entitle members to enter trading transactions:
b: for all distributions to all members, if the constitution of the co-operative company permits any member to hold shares that––
i: are not transaction shares, are not their projected transaction shareholding, and are not limited non-transaction shares; and
ii: may entitle members to enter trading transactions. Requirements
4: For the purposes of subsection (2), the requirements are––
a: the co-operative company is resident in New Zealand for the period to which the distribution relates; and
b: the company making the distribution is resident in New Zealand for the period to which the distribution relates; and
c: the co-operative company believes on reasonable grounds that the member at the time of the distribution––
i: is resident in New Zealand:
ii: has a fixed establishment in New Zealand. Meaning of transaction shares
5: In this section, transaction shares Meaning of limited non-transaction shares
6: In this section, limited non-transaction shares
a: 20% of the member's transaction shares on the date of entitlement for the distribution under section 125 of the Companies Act 1993:
b: 20% of the member's projected transactions shareholding on the date of entitlement for the distribution under section 125 of that Act. Meaning of projected transactions shareholding
7: In this section, projected transactions shareholding Meaning of trading transactions
8: In this section, trading transactions
a: the sale and purchase of trading stock of the vendor that is not intangible property; and
b: not subject to section CB 2 (Amounts received on disposal of business assets that include trading stock). Companies Act 1993
9: The 20 working day rule for fixing a date in section 125(2) of the Companies Act 1993 does not apply to members' entitlements to receive distributions that are for transaction shares, projected transaction shareholdings, limited non-transaction shares, or shares described in subsection (3), if––
a: the co-operative company or the subsidiary, as the case may be, has given a copy of the election described in subsection (1) to the Registrar of Companies before the relevant distributions are paid; and
b: for the purposes of section 125(1) of the Companies Act 1993, the co-operative company or the subsidiary, as the case may be, fixes a date in relation to members' entitlements to receive distributions before the entitlements arise, and that date is within the year or period to which the distributions relate. Commissioner, company, co-operative company, dividend, limited non-transaction shares, projected transaction shareholding, resident in New Zealand, share, trading stock, trading transactions, transaction shares .
10: Available subscribed capital (ASC) amount
1: In section CD 43(9)(b) IC 3(3) and (4) IC 3(3) to (5)
2: Subsection (1) applies for the 2008–09 and later income years.
11: Income for general insurance outstanding claims reserve
In section CR 4
a: premium
b: general insurance contract
12: Subpart CS repealed
Subpart CS
13: New section CW 29B inserted
After section CW 29
CW 29B: Amounts from Australian complying superannuation schemes reinvested in KiwiSaver schemes
An amount of income derived in an income year by a natural person from an Australian complying superannuation scheme is exempt income if, in the income year, it is contributed to a KiwiSaver scheme. amount, Australian complying superannuation scheme, exempt income, income, income year, KiwiSaver scheme .
14: Non-resident company involved in exploration and development activities
Section CW 57(1)(b)
b: ends on 31 December 2014.
15: Voluntary activities
1: In section CW 62B(5) and schedule 4, part B (Rates of tax for schedular payments),
2: Subsection (1) applies for the 2009–10 and later income years.
16: Employment-related loans
1: Section CX 10(2)(c)
2: In section CX 10 superannuation fund
17: Benefits provided to employees who are shareholders or investors
1: In section CX 17(4)(a) shareholder: shareholder; and
2: Subsection (1)—
a: applies for the 2008–09 and later income years, except if paragraph (b) applies:
b: does not apply for a person and an income year in relation to a tax position taken for the income year by the person—
i: in the period from 1 April 2008 to the date of the Royal assent of this Act; and
ii: in a return of income, an FBT return, or a GST return filed before the date of the Royal assent of this Act; and
iii: relying upon section CX 17(4)
18: New section CX 51C inserted
After section CX 51B
CX 51C: Disposal of fishing quota emissions units
Who this section applies to
1: This section applies to a person who disposes of a fishing quota emissions unit other than by surrender. Excluded income: disposal
2: An amount of income that the person derives from the disposal is excluded income if, at the time of the disposal, the person would not derive income, other than exempt income or excluded income, from a disposal of the individual transferable quota to which the emissions unit relates. amount, emissions unit, excluded income, exempt income, fishing quota emissions unit .
19: Available capital distribution amount
In section CZ 9B(2)(c) not on the liquidation of the company on the liquidation of the company
20: Acquisition of emissions units
Section DB 60(1)
1: This section applies when an emissions unit is transferred to a person for a price of zero—
a: under section 64, or Part 4, subpart 2, of the Climate Change Response Act 2002:
b: in relation to a forest sink covenant under section 67Y of the Forests Act 1949 entered by the person.
21: Liabilities for emissions
1: Section DB 60B(1)
1: This section applies when a person incurs a liability—
a: under the Climate Change Response Act 2002 for emissions relating to post-1989 forest land or pre-1990 forest land:
b: to transfer emissions units to the Crown under a forest sink covenant under section 67Y of the Forests Act 1949 entered by the person.
2: In section DB 60B emissions unit
22: Section DB 61 replaced
Section DB 61
DB 61: Surrender of certain emissions units for post-1989 forest land emissions
When this section applies
1: This section applies when a person surrenders a pre-1990 forest land emissions unit or fishing quota emissions unit to meet a liability under the Climate Change Response Act 2002 to surrender units in relation to post-1989 forest land. Treated as disposal and reacquisition
2: The person is treated as having disposed of the emissions unit to an unrelated person and as having then reacquired it, in each case immediately before the surrender and for an amount equal to the unit's market value at the time. amount, emissions unit, fishing quota emissions unit, pre-1990 forest land emissions unit, surrender .
23: Film production expenditure
1: In section DS 2(4)
a: in paragraph (a), government screen production payment large budget film grant
b: in paragraph (b), government screen production payment large budget film grant
2: In section DS 2
a: government screen production payment
b: large budget film grant
24: Distribution to member of co-operative company, excluded from being dividend
1: In section DV 11(1) section CD 34 (Distribution to member of co-operative company based on member's transactions) CD 34B (Distributions to members of co-operative companies)
2: In section DV 11(2) section CD 34 section CD 34B
3: In section DV 11(3) for which the distribution is made to which the distribution relates
25: Association rebates
1: Section DV 19(1)
1: This section applies when an association—
a: enters into a mutual transaction; and
b: in relation to the transaction, pays an association rebate to a member.
2: Section DV 19(3)
3: The deduction is allowed in the income year corresponding to the accounting year for which the association rebate is paid.
3: In section DV 19 accounting year
4: Subsections (1) to (3) apply for the 2008–09 and later income years.
26: Deduction for general insurance outstanding claims reserve
In section DW 4
a: pay
b: general insurance contract
27: Apportionment on disposal of business assets that include trading stock
1: In section EB 24(1) This section also applies if a person disposes of an interest in trading stock together with other assets of a business or an interest in those other assets, whether or not the disposal of the partial interest is to another person.
2: Subsection (1)—
a: applies for the 2008–09 and later income years, except if paragraph (b) applies:
b: does not apply for a person and an income year in relation to a tax position taken by the person—
i: in a return of income filed before 28 October 2009; and
ii: relating to an apportionment of an amount on a disposal of trading stock and other assets; and
iii: relying on section EB 24(1)
28: Valuation of excepted financial arrangements
1: After section ED 1(5B)(b)
bb: forest sink emissions units: .
2: After section ED 1(5B)(c)
cb: fishing quota emissions units, if the holder of the units would derive income, other than exempt income and excluded income, from a disposal of the individual transferable quota to which the units relate: .
3: After section ED 1(5B)(d)
db: fishing quota emissions units, if the holder of the units would derive no income, other than exempt income and excluded income, from a disposal of the individual transferable quota to which the units relate: .
4: Section ED 1(5C)
5C: Despite subsection (5B), for the purposes of subsection (5),—
a: emissions units described in paragraphs (a) to (cb) may be pooled together:
b: emissions units described in paragraphs (d) and (db) may be pooled together.
5: In section ED 1
a: fishing quota emissions unit
b: forest sink emissions unit
29: Valuation of emissions units issued for zero price
1: After section ED 1B(1)(e)
eb: are not fishing quota emissions units; and .
2: In section ED 1B fishing quota emissions unit
30: Economic rate for plant, equipment, or building, with high residual value
1: Section EE 30(3)(b)
b: rounds the figure up or down to the nearest rate specified in schedule 11, column 1 (New banded rates of depreciation); and .
2: Subsection (1) applies for the 2008–09 and later income years.
31: Total deductions in section EE 56
1: After section EE 60(3) Treatment of mothballed assets
3B: Subsection (3)(b) does not apply in relation to an amount of depreciation loss for an item that has been withdrawn from use in deriving assessable income or carrying on a business for the purpose of deriving assessable income. However, this exclusion does not apply to an amount of depreciation loss for which the person has a deduction under section EE 39.
2: Subsection (1) applies for the 2008–09 and later income years.
32: Expenditure incurred in acquiring film rights in feature films
1: In section EJ 4(1)(b) government screen production payment large budget film grant
2: In section EJ 4
a: government screen production payment
b: large budget film grant
33: Expenditure incurred in acquiring film rights in films other than feature films
1: In section EJ 5(1)(b) government screen production payment large budget film grant
2: In section EJ 5
a: government screen production payment
b: large budget film grant
34: Film production expenditure for New Zealand films having no government screen production payment
1: In the heading to section EJ 7 government screen production payment large budget film grant
2: In section EJ 7(1)(a) government screen production payment large budget film grant
3: In section EJ 7
a: government screen production payment
b: large budget film grant
35: Film production expenditure for other films having no government screen production payment
1: In the heading to section EJ 8 government screen production payment large budget film grant
2: In section EJ 8(1)(a) government screen production payment large budget film grant
3: In section EJ 8
a: government screen production payment
b: large budget film grant
36: Determination alternatives
In section EW 15E(1)(c)(ii) fair value method. fair value method; or
iii: is treated under IFRSs by the person as a hedge of something that is not a financial arrangement.
37: Expected value method
In section EW 15F(1)(c)(ii) fair value method; and fair value method; or
iii: is treated under IFRSs by the person as a hedge of something that is not a financial arrangement; and .
38: Modified fair value method
In section EW 15G(1)(c)(ii) fair value method; and fair value method; or
iii: is treated under IFRSs by the person as a hedge of something that is not a financial arrangement; and .
39: Change of spreading method
After section EW 26(7) Modification
8: Section EZ 52C (Change of spreading method: Determination G22 Determination G22A
40: Spreading method adjustment formula
After section EW 27(8) Modification
9: Section EZ 52C (Change of spreading method: Determination G22 Determination G22A
41: Base price adjustment formula
In section EW 31(8) EW 48 EW 48, or EZ 52D
42: Meaning of controlled foreign company
1: Section EX 1(1)(b)(i)
i: the person's control interest is less than or equal to a control interest in the same category held by another person; and .
2: Subsection (1)—
a: applies for the 2008–09 and later income years, except if paragraph (b) applies:
b: does not apply for a person in relation to a tax position taken by the person—
i: before 19 November 2009; and
ii: relying on the provision amended by this section as it was immediately before the amendment made by this section.
43: Attributable CFC amount
1: In section EX 20B(11)(b)(i) market circumstance market value circumstance
2: Subsection (1) applies for income years beginning on or after 1 July 2009.
44: Non-attributing active CFC: default test
In section EX 21D(7) item attributable item attributable
45: Part-year tax calculations
1: In the heading to section EY 5(3) First year part-year Part-year
2: In section EY 5(4) The transferee's relevant opening part-year reserve amounts under sections EY 23 to EY 27 equal the transferor's relevant closing part-year reserve amounts The transferee's relevant opening part-year reserve amounts under sections EY 23 to EY 27 equal the transferor's relevant closing part-year reserve amounts, and if the life reinsurance associated with a class of policies is not assigned by the transferor to the transferee, those reserve amounts are calculated without subtracting relevant life reinsurance amounts
3: Section EY 5(6) and (7) Part-year calculations: end of transitional adjustments
6: If, for a life insurance policy, the transitional adjustment under section EY 30(7) is calculated for part of an income year, because section EY 30 ceases to apply to the policy before the end of the income year, the life insurer does part-year tax calculations for the policy for the income year, as described in subsection (2), but the income year is divided by the day that section EY 30 ceases to apply. The effect of the part-year calculations is described in subsection (3).
4: Subsections (1) to (3) apply––
a: on and after 1 July 2010, except if paragraph (b) applies:
b: for an income year that includes 1 July 2010 and later income years, if the life insurer chooses to apply the new life insurance rules in the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009
46: Outstanding claims reserving amount: non-participation policies not annuities
1: In section EY 24(2)(a)(ii) the amount of the life insurer's outstanding claims reserve under subsections (3) and (4) for the class of policies, calculated at the beginning of the current year, but excluding the amount that would be the outstanding claims reserve for the class of policies, using subsections (3) and (4) with necessary modifications, calculated at the end of the prior year, but including
2: Subsection (1) applies––
a: on and after 1 July 2010, except if paragraph (b) applies:
b: for an income year that includes 1 July 2010 and later income years, if the life insurer chooses to apply the new life insurance rules in the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009
47: Premium smoothing reserving amount: non-participation policies not annuities
1: In section EY 25(2)(a)(ii) the amount of the life insurer's premium smoothing reserve calculated under the principles in subsection (3) for the class of policies, calculated at the beginning of the current year the amount that would be the premium smoothing reserve for the class of policies, using the principles in subsection (3) with necessary modifications, calculated at the end of the prior year
2: Subsection (1) applies––
a: on and after 1 July 2010, except if paragraph (b) applies:
b: for an income year that includes 1 July 2010 and later income years, if the life insurer chooses to apply the new life insurance rules in the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009
48: Unearned premium reserving amount: non-participation policies not annuities
1: In section EY 26(2)(a)(ii) the amount of the life insurer's unearned premium reserve under subsection (3) for the class of policies, calculated at the beginning of the current year the amount that would be the unearned premium reserve for the class of policies, using subsection (3) with necessary modifications, calculated at the end of the prior year
2: Subsection (1) applies––
a: on and after 1 July 2010, except if paragraph (b) applies:
b: for an income year that includes 1 July 2010 and later income years, if the life insurer chooses to apply the new life insurance rules in the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009
49: Capital guarantee reserving amount: non-participation policies not annuities
1: In section EY 27(2)(a)(ii) the amount of the life insurer's capital guarantee reserve under subsection (3) for the class of policies, calculated at the beginning of the current year the amount that would be the capital guarantee reserve for the class of policies, using subsection (3) with necessary modifications, calculated at the end of the income year before the current year
2: Subsection (1) applies––
a: on and after 1 July 2010, except if paragraph (b) applies:
b: for an income year that includes 1 July 2010 and later income years, if the life insurer chooses to apply the new life insurance rules in the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009
50: Transitional adjustments: life risk
1: After section EY 30(1) Separation of products into separate policies for purposes of transitional adjustment
1B: If a life insurance policy is comprised of 2 or more life insurance product types that are capable of being sold separately, and the life insurance cover amounts for each product type are separately identified in the policy, then each of the product types may be treated as a separate life insurance policy for the purposes of this section.
2: In section EY 30(2) a group life master policy, credit card repayment insurance, and an workplace group policy a multiple life policy through which the life insurer can look to the individual lives covered, credit card repayment insurance, and a workplace group policy
3: Section EY 30(2)(c)
c: the amount of life insurance cover at the finish of a cover review period, or at the finish of any shorter period, if the life insurer chooses to measure within the cover review period, has not increased by more than the greater of 10% and the percentage change in the consumer price index for the relevant period, as compared to the amount of life insurance cover at the beginning of the relevant cover review period; and
d: no new or replacement individual life is covered for a period beginning after the grandparenting start day.
4: In section EY 30(3)
a: the heading is replaced by Multiple life policies
b: group life master policy multiple life policy through which the life insurer can look to the individual lives covered
c: in paragraph (b), subsection (5)(a) subsection (5)(a) or (b)
5: Section EY 30(3)(e)
e: to the extent to which, looking through to the individual lives covered, the amount of life insurance cover at the finish of a cover review period, or at the finish of any shorter period, if the life insurer chooses to measure within the cover review period, has not increased by more than the greater of 10% and the percentage change in the consumer price index for the relevant period, as compared to the amount of life insurance cover at the beginning of the relevant cover review period.
6: In section EY 30(4) an workplace group policy a workplace group policy
7: In section EY 30(5)(b) and the premium does not go up in the period (the continuous rate period and for which the premium does not go up in that period (the continuous rate period
8: After section EY 30(5) When this section does not apply: life insurance cover increase for whole cover review period
5B: This section does not apply for a policy for the whole of an income year if a cover review period finishes in the year and, for that cover review period, there has been an increase in the amount of life insurance cover as described in subsection (2)(c) or (3)(e) and the life insurer has not made an election for measuring within the cover review period under those subsections. When this section does not apply: continuity
5C: This section does not apply for a policy for any period after this section has ceased to apply for the policy.
9: In section EY 30(7) For the income year, a life insurer has an amount of shareholder base allowable deduction calculated for a class of policies using the formula A life insurer has an amount of shareholder base allowable deduction for a policy calculated using the following formula, to the extent to which this section applies for the relevant income year for the policy
10: In section EY 30(8)(a) income year for the policies income year or part of the income year, as applicable, for the policy
11: In section EY 30(8)(b) income year income year or part of the income year, as applicable, for the policy,
12: In section EY 30(8)(c) income year income year or part of the income year, as applicable, for the policy
13: In section EY 30(11) credit card. credit card, or life reinsurance to the extent to which it reinsures such a life insurance policy.
14: Section EY 30(14) Meaning of multiple life policy
14: Multiple life policy
a: means a life insurance policy with multiple individuals' life insurance cover grouped under it, if the group of individuals is identified in the policy:
b: does not include—
i: a workplace group policy:
ii: credit card repayment insurance:
iii: life reinsurance to the extent to which it reinsures a workplace group policy or credit card repayment insurance.
15: Section EY 30(15)
15: Workplace group policy
a: the individuals under the policy are—
i: a group that includes, or consists of, a class of employees of an employer or group of employers, and may include 1 or more of the employers or directors of the employers, and the policy is sponsored by the employers or by the trustees of a superannuation scheme:
ii: members of a union registered under the Employment Relations Act 2000 or members of an industry association, and the union or association is the sponsor of the policy:
iii: the spouses, civil union partners, and de facto partners of employees or members described in subparagraphs (i) and (ii); and
b: in the case of the sponsor being the employer,—
i: the employer is required to offer an employee who is a member of the relevant class the opportunity to join the life insurance policy; and
ii: the life insurer and the employer have entered an agreement about who pays the premium.
16: In section EY 30 pay
17: Subsections (1) to (15) apply––
a: on and after 1 July 2010, except if paragraph (b) applies:
b: for an income year that includes 1 July 2010 and later income years, if the life insurer chooses to apply the new life insurance rules in the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009
51: New sections EZ 52C and EZ 52D
After section EZ 52B
EZ 52C: Change of spreading method:
Determination G22 Determination G22A How and when this section applies
1: This section does not alter or affect a person's tax position in relation to Determination G22: Optional convertible notes denominated in New Zealand dollars convertible at the option of the holder Determination G22 Determination G22
a: Determination G22A: Optional convertible notes denominated in New Zealand dollars Determination G22 Determination G22A
b: Determination G22A
i: section 90AE of the Tax Administration Act 1994 stops applying; or
ii: Determination G22A Spreading method adjustment
2: Despite sections EW 26 and EW 27 (which relate to changes of spreading method), the person must not calculate a spreading method adjustment under section EW 27 for the change of spreading method, for the financial arrangement, from Determination G22 Determination G22A Part years under Determinations instead of spreading method adjustment
3: In the income year in which subsection (2) applies, for the financial arrangement, Determination G22 Determination G22A Determination G22A Determination G22 amount, assessment, financial arrangement, spreading method
EZ 52D: Base price adjustment: financial arrangements to which
Determination G22 Determination G22A How and when this section applies
1: This section does not alter or affect a person's tax position in relation to Determination G22 Determination G22 Determination G22
a: section EZ 52C applied; and
b: Determination G22A Consideration adjustment
2: For the financial arrangement, the consideration referred to in section EW 31(7) (Base price adjustment formula) is adjusted in accordance with subsections (3) to (6). Issuer
3: If the person is the issuer of the financial arrangement, an amount calculated under subsections (5) and (6) is added to all consideration that has been paid, and all consideration that is or will be payable, by the issuer for or under the financial arrangement. Holder
4: If the person is a holder of the financial arrangement, an amount, referrable to the person's holding, calculated under subsections (5) and (6) is added to all consideration that has been paid, and all consideration that is or will be payable, to the holder for or under the financial arrangement. Calculation
5: For the purposes of subsections (3) and (4) the amount is calculated using the following formula: X − Z. Definition of items in formula
6: In the formula,––
a: X s Determination G22
b: Z s Determination G22 amount, consideration, financial arrangement .
52: Expenditure when deduction would be denied to consolidated group
1: In section FM 12(2) borrowed from a person that is part of the consolidated group borrowed from a person that is not part of the consolidated group
2: Subsection (1) applies for the 2008–09 and later income years.
53: Close company remuneration to shareholders, directors, or relatives
1: In section GB 25(3)(b) management management or administration
2: Subsection (1) applies for the 2008–09 and later income years.
54: Disposals of trading stock at below market value
1: Section GC 1
GC 1: Disposals of trading stock at below market value
When this section applies
1: This section applies when a person disposes of trading stock for—
a: no consideration:
b: an amount that is less than the market value of the trading stock at the time of disposal. Market value consideration
2: The person is treated as deriving an amount equal to the market value of the trading stock at the time of disposal. Market value expenditure
3: If the person disposes of the trading stock to another person, an amount equal to the market value of the trading stock at the time of disposal is treated as expenditure incurred by the other person in acquiring the trading stock. Shares in trading stock
4: In this section, trading stock Exclusions
5: This section does not apply to a disposal of trading stock—
a: under a relationship agreement:
b: by the person to another person who is not associated with them, for use by the other person in a farming, agricultural, or fishing business that is affected by a self-assessed adverse event:
c: under a share-lending arrangement, by a share user to a share supplier or by a share supplier to a share user. amount, associated person, business, relationship agreement, self-assessed adverse event, share, share-lending arrangement, share supplier, share user, trading stock .
2: Subsection (1)—
a: applies for the 2008–09 and later income years, except if paragraph (b) applies:
b: does not apply for a person and an income year in relation to a tax position taken by the person—
i: in a return of income filed before 28 October 2009; and
ii: relating to a disposal of trading stock; and
iii: relying on section GC 1
55: Disposals of timber rights or standing timber
1: In section GC 2(3) Section GC 1(3) Section GC 1(4)
2: Subsection (1) applies for the 2008–09 and later income years.
56: New section GC 3B inserted
After section GC 3
GC 3B: Disposals of emissions units
When section GC 1 applies
1: Section GC 1 applies to a disposal of an emissions unit as if the emissions unit were trading stock. Exclusions
2: Section GC 1 does not apply to a disposal of an emissions unit if the disposal is—
a: the surrender of the unit under the Climate Change Response Act 2002:
b: the transfer of the unit to the Crown under a forest sink covenant under section 67Y of the Forests Act 1949:
c: the transfer of a forest land emissions unit—
i: from the person (the transferor
ii: to a person (the transferee
iii: as required by a provision of the forestry rights agreement relating to the allocation of income or emissions units between the transferor and the transferee. disposal, emissions unit, trading stock .
57: What this subpart does
1: Section HA 1(1)(a)
a: to have a distribution of profits to shareholders imputed or, to the extent not imputed, distributed as exempt income; and .
2: In section HA 1 exempt income
3: Subsection (1) applies for the 2008–09 and later income years.
58: Corporate requirements
1: In section HA 6(2)(c) HA 11(4) HA 11B(1)
2: Subsection (1) applies for the 2008–09 and later income years.
59: When requirements no longer met
1: In section HA 11 When requirements no longer met: qualifying companies
2: Section HA 11(4)
3: Subsection (2) applies for the 2008–09 and later income years.
60: New section HA 11B inserted
1: After section HA 11
HA 11B: When requirements no longer met: LAQCs
When status lost
1: If a company is an LAQC in an income year, but does not meet the requirements of sections HA 1(3) and HA 5 to HA 10 for the next income year, its status as a qualifying company is treated as ended from the start of that next income year. Regaining status
2: The company may become a qualifying company again if it subsequently meets the requirements set out in sections HA 5 to HA 9. company, income year, LAQC, qualifying company .
2: Subsection (1) applies for the 2008–09 and later income years.
61: Treatment of tax losses other than certain foreign losses
1: Section HA 24(5) Treatment of losses incurred before company has LAQC status
5: Despite subsection (2), a company that has a tax loss component arising in an income year in which it is a qualifying company but before it acquires LAQC status, may include the amount in a loss balance (the pre-LAQC loss balance Using pre-LAQC loss balance
5B: For the tax year referred to in subsection (1), a pre-LAQC loss balance carried forward from the previous tax year is used in the following order:
a: first, the LAQC must use the amount under section IA 4 (Using loss balances carried forward to tax year); and
b: secondly, for a remaining unused amount of the loss balance, the LAQC may choose to use the amount under section IA 3 (Using tax losses in tax year); and
c: thirdly, for a remaining unused amount of the loss balance, the LAQC must include the amount in the company's loss balance under section IA 3(4) at the end of the tax year. Continuity requirements and ordering rules
5C: The uses referred to in subsection (5B) are subject to the continuity requirements set out in section IA 5 (Restrictions on companies' loss balances carried forward) and the ordering rules set out in section IA 9 (Ordering rules).
2: In section HA 24 company qualifying company tax loss component
3: Subsection (1) applies for the 2008–09 and later income years.
62: Attribution when balance dates differ
1: Section HA 26(2)
2: Despite section 38 of the Tax Administration Act 1994, the LAQC may choose to treat the amount of the shareholder's tax loss as having been incurred on the first day of the next income year.
2: Subsection (1) applies for the 2008–09 and later income years.
63: Trustees' obligations
1: Section HC 24(2)(a)
a: have a tax credit under subparts LC and LD (which relate to tax credits for natural persons and for certain gifts): .
2: Subsection (1) applies for the 2008–09 and later income years.
64: Effect of failure to meet eligibility requirements for entities
1: Section HL 4(2) Failure to meet other requirements
2: An entity ceases under this section to be eligible to be a portfolio investment entity if it fails in either of the circumstances set out in subsection (3) and the entity's failure—
a: is significant and would not have occurred but for an event or circumstance within the control of the entity:
b: is repeated on the last day of the quarter following the quarter referred to in subsection (3)(a) and ending more than 3 months before the announcement referred to in subsection (3)(a)(ii) and (b)(ii). Particular circumstances
3: The circumstances are that either—
a: the portfolio investor class of the entity fails to meet a requirement under section HL 6 or HL 9 on the last day of a quarter—
i: beginning 6 months or more after the date on which the portfolio investor class is formed; and
ii: ending more than 3 months before an announcement by the entity to its investors that the portfolio investor class is winding up within 12 months of the announcement; or
b: the entity fails to meet a requirement under section HL 10 on the last day of a quarter—
i: beginning 6 months or more after the date on which the entity becomes a portfolio investment entity; and
ii: ending more than 3 months before an announcement by the entity to its investors that the entity is winding up within 12 months of the announcement.
2: Subsection (1) applies for the 2008–09 and later income years.
65: Investor interest size requirement
1: In section HL 9(2) investor membership requirement investor interest size requirement
2: Subsection (1) applies for the 2008–09 and later income years.
66: Treatment of portfolio class taxable loss and portfolio class land loss for tax year
1: Section HL 32(3)(a)(i)
i: are an investment of the type listed in subsection (4); and .
2: After section HL 32(3) Investment types
4: For the purposes of subsection (3)(a)(i), the investment must be—
a: an investment in land:
b: an investment in a portfolio land company that is resident in New Zealand:
c: an investment in a non-resident portfolio land company in which the portfolio investor class has a voting interest of more than 20%.
3: In section HL 32 non-resident resident in New Zealand voting interest
4: Subsections (1) and (2) apply for the 2008–09 and later income years.
67: When entity no longer meets investment or investor requirements
1: In section HM 25(3)(b) the first quarter ends more than 3 months the first quarter ends within 3 months
2: Subsection (1) applies for the 2010–11 and later income years.
68: When income cannot be attributed
1: Section HM 37(3)
2: In section HM 37 investor interest
69: New section HM 42B
After section HM 42
HM 42B: Part-year tax calculations for PIEs under the exit calculation option for the 2010–11 tax year
When this section applies
1: This section applies to a PIE for the 2010–11 tax year if section HM 42 applies to the PIE for that year and the PIE chooses to apply this section by filing a return under section 57B(5) or (7) of the Tax Administration Act 1994 in accordance with this section. Part-year tax calculations: description
2: For calculating their income tax liability for the 2010–11 tax year, the PIE treats references to an income year or a tax year as if they are references to 2 separate tax years and corresponding income years within that tax year, divided by 1 October 2010 ( for example Part-year tax calculations: effect
3: The part-year calculations may give rise to income and deductions for the income year and they do create part-year tax return obligations, except that the requirement for returns under section 57B(7)(a) of the Tax Administration Act 1994 and for notice in relation to investors or proxies under section 31C(4) of that Act can be met by sending returns or notices on a full-year or part-year basis. The 2 part-year calculations create 2 income tax liabilities for 2 part-years. Foreign tax credits: special rule
4: Despite subsections (2) and (3), tax credits under subpart LJ (Tax credits for foreign income tax) may be used in accordance with section HM 51 in either part-year, if they are attributable to the first part-year. deduction, income, income tax liability, income year, notified investor rate, PIE, tax credit, tax year .
70: Use of tax credits other than foreign tax credits by PIEs
1: In section HM 53(2) section HM 52 section HM 51
2: Subsection (1) applies for the 2010–11 and later income years.
71: Transition of rate for certain investors
1: In section HM 58(1) 21% 19.5%, 21%
2: In section HM 58(2)(b) 21% 19.5% or 21%
72: Notified investor rates
1: In section HM 60(3)
a: in the first sentence, in every period for the income year in the period
b: in the third sentence, must apply the notified investor rate that would have applied ignoring the Taxation (Budget Measures) Act 2010 may apply a notified investor rate corresponding to the most recent notified investor rate, ignoring the Taxation (Budget Measures) Act 2010 ( for example
2: After section HM 60(3) Exception
3B: Subsection (3) does not apply if the PIE has made a voluntary payment of tax under section HM 45 that is intended to satisfy its income tax liability for the period in relation to the investor unless the rate last notified applies to the voluntary payment.
3: In section HM 60(4) sections CX 56 and CX 56B (which relate to attributed income of and distributions to certain investors in multi-rate PIEs) section CX 56 (Attributed income of certain investors in multi-rate PIEs)
4: Subsection (3) applies for the 2010–11 and later income years.
73: Use of land losses of investor classes
1: Section HM 65(3)(a)
a: are an investment of the type listed in subsection (4); and .
2: After section HM 65(3) Investment types
4: For the purposes of subsection (3)(a), the investment must be—
a: an investment in land:
b: an investment in a land investment company that is resident in New Zealand:
c: an investment in a non-resident land investment company in which the investor class has a voting interest of more than 20%.
3: In section HM 65 non-resident resident in New Zealand voting interest
4: Subsections (1) and (2) apply for the 2010–11 and later income years.
74: When formation losses carried forward are 5% or more of formation investment value: 3-year spread
1: Section HM 69(5)
5: After the end of the period of 3 years referred to in subsection (1), any residual formation loss may be allocated to an attribution period when a calculation is made under section HM 35(5) of the taxable amount for an investor class.
2: Subsection (1) applies for the 2010–11 and later income years.
75: Transitional residents
1: In section HR 8(2)(b) section YD 1(2) and (3) section YD 1(2) or (3)
2: In section HR 8(3)(b)(ii) section YD 1(2) and (3) section YD 1(2) or (3)
76: Cross-heading replaced
In the cross-heading after section HR 8 RMBS Financial institution
77: RMBS special purpose vehicles
1: In the heading to section HR 9, RMBS Financial institution
2: In section HR 9
a: registered bank financial institution
b: RMBS financial institution
c: RMBS financial institution
3: In section HR 9
a: registered bank financial institution
b: RMBS financial institution
4: In section HR 9
a: registered bank RMBS special purpose vehicle
b: financial institution financial institution special purpose vehicle
78: New section HR 9B inserted
After section HR 9
HR 9B: Bankruptcy-remote property during application of section HR 9
Despite section HR 9, property that a financial institution holds because of the application of section HR 9 cannot be attached, charged, disposed of, or otherwise used in the payment of its tax debt, except to the extent that––
a: such tax debt—
i: does not relate to income tax or provisional tax; and
ii: would have been the relevant financial institution special purpose vehicle's tax debt in the absence of section HR 9:
b: such property could have been attached, charged, disposed of, or otherwise used in payment of the tax debt in the absence of section HR 9. dispose, financial institution, financial institution special purpose vehicle, income tax, provisional tax, tax .
79: What happens when vehicle stops being RMBS special purpose vehicle?
1: In section HR 10 RMBS financial institution
2: In section HR 10(1)
a: in the words before the paragraphs, RMBS financial institution
b: in paragraphs (a) and (c), registered bank financial institution
c: in paragraphs (a), (b), (c) and (d), RMBS financial institution
3: In section HR 10(3) registered bank financial institution
4: Section HR 10(4)
4: In this section, unwind
a: guarantees and residential mortgage backed securities, as the case may be, described in the definition of financial institution special purpose vehicle
b: interests described in the definition of financial institution special purpose vehicle
c: the vehicle is terminated, by liquidation or otherwise.
5: In section HR 10
a: registered bank RMBS special purpose vehicle
b: financial institution financial institution special purpose vehicle
80: Transitional provisions for PIE rules
1: In section HZ 5(3)(b) section 292(2) of this Act section 292(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009
2: Subsection (1) applies for the 2010–11 and later income years.
81: Restrictions relating to ring-fenced tax losses
1: Section IA 7(2)
2: The general rules do not apply in relation to a loss-attributing qualifying company (LAQC) to an amount that would have been a loss balance carried forward under section IA 3(4) if section HA 21 (Loss balances not carried forward) did not exist. The provisions that deal generally with these losses are sections HA 24 to HA 27. But this subsection does not apply to a pre-LAQC loss balance dealt with under section HA 24(5) to (5C) (Treatment of tax losses other than certain foreign losses).
2: Subsection (1) applies for the 2008–09 and later income years.
82: Common ownership: group of companies
1: Section IC 3(3) and (4) Measuring common voting interests
3: In subsection (1)(a), a person's common voting interest in the relevant companies at a particular time is the percentage of their voting interests under section YC 2 (Voting interests) in each of the companies at the time. Measuring common market value interests
4: In subsection (1)(b), a person's common market value interest in the relevant companies at a particular time is the percentage of their market value interests under section YC 3 (Market value interests) in each of the companies at the time. Common interest percentages
5: For the purposes of this section, in measuring a person's common voting interest or common market value interest in 2 or more companies at a particular time,—
a: for percentages that are the same in relation to each company, the person's percentage interest at the time:
b: for percentages that differ as between the companies, the lowest percentage interest in each company at the time.
2: Subsection (1) applies for the 2008–09 and later income years.
83: Bad debts or decline of value of shares
1: Section IC 12(1)
1: This section applies to companies that are part of a group of companies in a tax year when—
a: a company ( company C
i: under section DB 31 (Bad debts) for a loan to another company in the group:
ii: for a decline in the value of shares in another company in the group; and
b: a company ( company A
i: for expenditure funded by the loan referred to in paragraph (a)(i) or by the issue to company A of the shares referred to in paragraph (a)(ii); and
ii: taken into account in calculating company A's tax loss for the 1993–94 tax year or a later tax year.
2: Section IC 12(2) Limitation on loss grouping
2: The amount of company A's tax loss cannot be made available to another company in the group to use except to the extent to which the amount of the tax loss is more than the total amount of the deductions referred to in subsection (1)(a). To that extent, company A may choose to make the excess amount available to a group company to use under section IA 3(2) and IA 5 (which relate to using and carrying forward tax losses) if the requirements for grouping tax losses are met.
3: In section IC 12 loan
4: Subsections (1) and (2) apply for the 2008–09 and later income years.
84: Breach in tax year in which loss balance is grouped
1: Section IP 5(2)(a)
a: the amount of company A's loss balance carried forward to the tax year in which the breach occurred is not more than the amount of—
i: company B's net income for the common span, if no company in the group other than company B has net income for the common span of more than zero; or
ii: the total of the amounts of net income for the common span of companies in the group; and .
2: Subsection (1) applies for the 2008–09 and later income years.
85: Treatment of remaining credits
In section LA 5(4) section LE 2 section LE 2, LE 2B,
86: Child's income
1: In section LC 3(1) a person a person other than an absentee
2: In section LC 3 absentee
3: Subsection (1) applies for the 2008–09 and later income years.
87: Tax credits for housekeeping
1: In section LC 6(1) A person A person, other than an absentee,
2: In section LC 6 absentee
3: Subsection (1) applies for the 2008–09 and later income years.
88: Tax credits for supplementary dividends
1: In section LP 2(2) 24/53 54/119
2: Subsection (1)
89: Limitation on deductions
1: In section LP 10(1) that is allocated to a tax year for a tax year
2: The formula in section LP 10(1) company's income − total credits + supplementary dividends tax rate.
3: In section LP 10(2)
a: in paragraph (b), company's total credits total credits
b: in paragraph (c), supplementary amount supplementary dividends
4: Subsections (2) and (3)—
a: apply for the 2008–09 and later income years, except if paragraph (b) applies:
b: do not apply for a person and an income year after the 2007–08 income year in relation to a tax position for the income year taken by the person—
i: before 19 November 2009; and
ii: relying on the provision amended by this section as it was immediately before the amendment made by this section.
90: Tax credits for certain investors in portfolio tax rate entities
1: In section LS 2(2) income tax paid income tax liability satisfied
2: In section LS 2 pay
3: Subsection (1) applies for the 2008–09 and later income years.
91: Tax credits for investors in multi-rate PIEs
1: In section LS 2(2) income tax paid income tax liability satisfied
2: In section LS 2 pay
3: Subsection (1) applies for the 2010–11 and later income years.
92: Tax credits for certain zero-rated portfolio investors
1: In section LS 3(2) income tax paid income tax liability satisfied
2: Subsection (1) applies for the 2008–09 and later income years.
93: Tax credits for zero-rated investors
1: In section LS 3(2) income tax paid income tax liability satisfied
2: Subsection (1) applies for the 2010–11 and later income years.
94: Treatment of tax credits on permanent emigration
1: In the heading to section MK 8 permanent emigration permanent emigration other than to Australia
2: In section MK 8(1) from New Zealand from New Zealand to a place other than Australia
3: In section MK 8(1) or an equivalent provision for a KiwiSaver scheme or under a provision equivalent to that one for a complying superannuation fund
95: ICA transfer from tax pooling account
1: Section OB 6(1)
1: An ICA company has an imputation credit for an amount representing an entitlement to funds held in a tax pooling account if the intermediary transfers the entitlement from another person to the company.
2: Section OB 6(3)
3: The credit date is,—
a: for an entitlement to funds that are transferred by the intermediary from the tax pooling account to the company's tax account with the Commissioner, the credit date under section RP 19 (Transfers from tax pooling accounts) for the amount transferred; or
b: for an entitlement to funds that are refunded by the intermediary from the tax pooling account to the company, the date of the refund; or
c: for an entitlement that is transferred by the intermediary from the company to another person, the date of the transfer.
3: Subsections (1) and (2) apply for the 2008–09 and later income years.
96: ICA attribution for personal services
In section OB 16(1) 42.86 38.89
97: ICA refund of income tax
1: In section OB 32(2)(b) less than less than or equal to
2: Subsection (1) applies for the 2008–09 and later income years.
98: ICA refund from tax pooling account
1: Section OB 34(1)
1: This section applies for an ICA company when—
a: the company has an entitlement to an amount in a tax pooling account and has an imputation credit for the entitlement under—
i: section OB 5 (table O1: imputation credits, row 3 (deposit in tax pooling account)); or
ii: section OB 6 (table O1: imputation credits, row 4 (transfer from tax pooling account)); and
b: the intermediary refunds the amount from the tax pooling account to the company.
2: In section OB 34(4)(b) refund or transfer refund
3: In section OB 34(5) refund or transfer refund
4: In section OB 34 tax pooling account
5: Subsections (1) to (3) apply for the 2008–09 and later income years.
99: ICA transfer within tax pooling account
1: Section OB 35(1)
1: This section applies for an ICA company when—
a: the company has an entitlement to an amount in a tax pooling account and has an imputation credit for the entitlement under—
i: section OB 5 (table O1: imputation credits, row 3 (deposit in tax pooling account)); or
ii: section OB 6 (table O1: imputation credits, row 4 (transfer from tax pooling account)); and
b: the intermediary transfers the entitlement from the company to another person.
2: In section OB 35(5) refund transfer
3: Subsections (1) and (2) apply for the 2008–09 and later income years.
100: Imputation additional tax on leaving wholly-owned group
1: After section OB 71(1) Sources of liability
1B: Company A is liable for imputation additional tax under—
a: subsection (2), if the company has a debit balance in the imputation credit account when the ultimate owner of the company changes:
b: subsection (4), if the company has an amount of excess entitlement under subsection (5) when the ultimate owner of the company changes.
2: The heading to section OB 71(2) Liability arising from debit balance
3: Section OB 71(4) Liability arising from excess entitlement
4: Company A is liable for an amount of imputation additional tax equal to the amount of the excess entitlement described in subsection (5) reduced, to no less than zero, by the amount of any payment that Company A—
a: made as provisional tax or income tax; and
b: chooses to treat as having been paid by company B.
4: In section OB 71(6) subsection (2) subsections (2) and (4)
101: Imputation additional tax on joining wholly-owned group
1: In section OB 72(1)(a) ; or :
2: Section OB 72(5)
5: The company is liable for an amount of imputation additional tax, equal to the excess entitlement determined under subsection (6), if a group of people hold common voting interests in the new group that exceed by 67% or more the common voting interests in the former group that are held by the same people immediately before the company joins the new group. Possible liability under section OB 72B
5B: The company is liable for an amount of imputation additional tax given by section OB 72B(8) if the requirements of that provision are met.
3: Section OB 72(6)(a) to (c)
a: zero, if the credit balance of the company's imputation credit account at the time is equal to or more than the amount (the total refundable amount
i: the amount in the tax pooling account provided by or for the benefit of the company that is more than the company's liability to pay income tax or provisional tax at the time:
ii: the amount of the refund to which the company is entitled under sections RM 2 and RM 4 to RM 6 (which relate to refunds of excess tax), other than an amount affected by a restriction under section OB 72B(5); or
b: the total refundable amount, if there is no credit balance in the company's imputation credit account at the time; or
c: the excess of the total refundable amount over the credit balance in the company's imputation credit account at the time, if paragraph (b) does not apply.
102: New section OB 72B inserted
After section OB 72
OB 72B: Limit on using entitlement to refund after joining wholly-owned group
When this section applies
1: This section applies when—
a: an ICA company joins a wholly-owned group of companies (the new group former group
b: the ICA company is not liable for imputation additional tax under section OB 72(5). Restricted refund amount for company and new group
2: Subsections (3) to (8) apply to an amount (the restricted refund amount refund amount – ICA credit balance. Definition of items in formula
3: In the formula,—
a: refund amount
i: the amount in the tax pooling account provided by or for the benefit of the ICA company that is more than the company's liability to pay income tax or provisional tax at the time:
ii: the amount of the refund to which the ICA company is entitled under sections RM 2 and RM 4 to RM 6 (which relate to refunds of excess tax) other than an amount affected by a restriction under subsection (5) for the company and another group:
b: ICA credit balance Payment to Commissioner
4: If the restricted refund amount is greater than the amount referred to in subsection (3)(a)(ii), the ICA company must pay to the Commissioner an amount equal to the excess and the Commissioner must hold the amount with the balance of the restricted refund amount as if the excess were a refund to which the company were entitled under section RM 2 (Refunds for overpaid tax). Use of restricted refund amount
5: The Commissioner must hold the restricted refund amount for the ICA company and the new group subject to the restriction that the amount—
a: may be refunded for an imputation credit only if the ICA company satisfies the Commissioner that the credit—
i: arises from taxation paid by the ICA company or by a company that is in the same wholly-owned group as the ICA company and was in the former group immediately before the ICA company joined the new group:
ii: is attached to a dividend received in relation to a shareholding by the ICA company or by a company that is in the same wholly-owned group as the ICA company and was in the former group immediately before the ICA company joined the new group and had the shareholding then; and
b: may be used to satisfy a tax liability of—
i: the ICA company:
ii: a company that is in the same wholly-owned group as the ICA company (the member Restriction additional to other requirements
6: The restriction imposed by subsection (5) on the use of a restricted refund amount is in addition to the requirements under other provisions of the Act for a refund or the satisfaction of a tax liability from an amount to which the ICA company is entitled under sections RM 2 and RM 4 to RM 6. Reducing restricted refund amount
7: The restricted refund amount for the ICA company and a group is reduced by the amount of—
a: a refund permitted under subsection (5)(a) relating to the restricted refund amount:
b: a satisfaction of a tax liability permitted by subsection (5)(b) relating to the restricted refund amount:
c: a payment of imputation additional tax under subsection (8) relating to the restricted refund amount:
d: a payment of imputation additional tax under section OB 71(4) relating to the restricted refund amount. Liability for imputation additional tax
8: The ICA company is liable for an amount of imputation additional tax equal to the restricted refund amount for the company and a wholly-owned group of companies (the old group
a: in the wholly-owned group of companies to which the company belonged immediately before the company joined the old group; and
b: that were held by the same people immediately before the company joined the old group. Commissioner, common voting interest, company, dividend, ICA company, imputation additional tax, imputation credit, income tax, provisional tax, tax pooling account, wholly-owned group of companies .
103: New heading and section OE 11B inserted
1: After section OE 11 Treatment of debits from conduit relief
OE 11B: Company with debit balance, including debits from conduit relief, in some income years
When this section applies
1: This section applies when a BETA company, in an income year beginning on or after 1 July 2009 (an affected year
a: in its branch equivalent tax account; and
b: that includes an amount (the CTR-relief amount
i: relate to branch equivalent tax debits in the branch equivalent tax account that each arose under section OE 12 in relation to a foreign dividend; and
ii: equal, for each branch equivalent tax debit, the reduction under section RG 7 (Reduction of payments for conduit tax relief) of the company's liability to pay FDP to the Commissioner for the foreign dividend. Use of CTR-relief amount
2: The BETA company may not choose under section OE 7 to apply the CTR-relief amount to satisfy an income tax liability except by an election—
a: relating to attributed CFC income that the company allocates to an income year beginning before 1 July 2009; and
b: made before the earlier of—
i: the first election under section OE 7 relating to attributed CFC income that the company allocates to an affected year:
ii: the end of the first affected year. Determination of CTR-relief amount
3: The CTR-relief amount in a branch equivalent tax account is found by—
a: treating a branch equivalent tax debit that arises partly from a reduction of FDP under section RG 7 and partly from a payment of FDP as being 2 debits, one equal to the reduction of FDP and the other equal to the amount of the payment of FDP; and
b: if a branch equivalent tax credit arises before the first affected year other than from an election relating to attributed CFC income allocated to an affected year or arises in an affected year from an election meeting the requirements of the exception to subsection (2), treating the credit as—
i: reducing branch equivalent tax debits in the order in which the debits arise; and
ii: for branch equivalent tax debits arising at the same time and not reduced to zero by the credit, reducing each debit in proportion to the contribution of the debit to the total of the debits; and
c: if the treatment of a branch equivalent tax credit is not given by paragraph (b), treating the credit as—
i: reducing branch equivalent tax debits arising from the payment of FDP in the order in which the debits arise; and
ii: after all branch equivalent tax debits arising from the payment of FDP are reduced to zero, reducing debits arising from a reduction of FDP under section RG 7 in the order in which the debits arise; and
iii: for branch equivalent tax debits subject to the same subparagraph and arising at the same time and not reduced to zero by the credit, reducing each debit in proportion to the contribution of the debit to the total of the debits; and
d: counting an amount of a branch equivalent tax credit only once in the reduction of some or all of a branch equivalent tax debit. attributed CFC income, BETA company, branch equivalent tax account, branch equivalent tax credit, branch equivalent tax debit, Commissioner, company, FDP, foreign dividend, income tax liability, income year .
2: Subsection (1) applies for income years beginning on or after 1 July 2009.
104: Heading and section OE 16B repealed
The heading before section OE 16B
105: When credits and debits arise only in consolidated imputation group accounts
In section OP 5(4)(d) transfer to tax pooling account transfer within tax pooling account
106: Consolidated ICA transfer from tax pooling account
1: Section OP 9(1)
1: A consolidated imputation group has an imputation credit for an amount representing an entitlement to funds held in a tax pooling account if the intermediary transfers the entitlement from another person to the group.
2: Section OP 9(3), other than the heading, is replaced by the following:
3: The credit date is,—
a: for an entitlement to funds that are transferred by the intermediary from the tax pooling account to the group's tax account with the Commissioner, the credit date under section RP 19 (Transfers from tax pooling accounts) for the amount transferred; or
b: for an entitlement to funds that are refunded by the intermediary from the tax pooling account to the group, the date of the refund; or
c: for an entitlement that is transferred by the intermediary from the group to another person, the date of the transfer.
3: Subsections (1) and (2) apply for the 2008–09 and later income years.
107: Consolidated ICA refund from tax pooling account
1: Section OP 32(1)
1: This section applies for a consolidated imputation group when—
a: the group has an entitlement to an amount in a tax pooling account and has an imputation credit for the entitlement under sections OP 8 and OP 9; and
b: the intermediary refunds the amount from the tax pooling account to the group.
2: Subsection (1) applies for the 2008–09 and later income years.
108: Consolidated ICA transfer to tax pooling account
1: The heading to section OP 33 Consolidated ICA transfer within tax pooling account
2: Section OP 33(1)
1: This section applies for a consolidated imputation group when—
a: the group has an entitlement to an amount in a tax pooling account and has an imputation credit for the entitlement under sections OP 8 and OP 9; and
b: the intermediary transfers the entitlement from the group to another person.
3: In section OP 33(4)(b) refund transfer
4: Subsections (2) and (3) apply for the 2008–09 and later income years.
109: New heading and section OP 104B inserted
1: After section OP 104 Treatment by consolidated BETA groups of BETA debits from conduit relief
OP 104B: Consolidated BETA group with debit balance, including debits from conduit relief, in certain income years
When this section applies
1: This section applies when a consolidated BETA group, in an income year beginning on or after 1 July 2009 (an affected year
a: in its branch equivalent tax account; and
b: that includes an amount (the CTR-relief amount
i: relate to branch equivalent tax debits in the branch equivalent tax account that each arose under section OP 105 in relation to a foreign dividend; and
ii: equal, for each branch equivalent tax debit, the reduction under section RG 7 (Reduction of payments for conduit tax relief) of a company's liability to pay FDP to the Commissioner for the foreign dividend. Use of CTR-relief amount
2: The consolidated BETA group may not choose under section OP 101 to apply the CTR-relief amount to satisfy an income tax liability except by an election—
a: relating to attributed CFC income that the consolidated BETA group allocates to an income year beginning before 1 July 2009; and
b: made before the earlier of—
i: the first election under section OP 101 relating to attributed CFC income that the group allocates to an affected year:
ii: the end of the first affected year. Determination of CTR-relief amount
3: The CTR-relief amount in a branch equivalent tax account is found by—
a: treating a branch equivalent tax debit that arises partly from a reduction of FDP under section RG 7 and partly from a payment of FDP as being 2 debits, one equal to the reduction of FDP and the other equal to the amount of the payment of FDP; and
b: if a branch equivalent tax credit arises before the first affected year other than from an election relating to attributed CFC income allocated to an affected year or arises in an affected year from an election meeting the requirements of the exception to subsection (2), treating the credit as—
i: reducing branch equivalent tax debits in the order in which the debits arise; and
ii: for branch equivalent tax debits arising at the same time and not reduced to zero by the credit, reducing each debit in proportion to the contribution of the debit to the total of the debits; and
c: if the treatment of a branch equivalent tax credit is not given by paragraph (b), treating the credit as—
i: reducing branch equivalent tax debits arising from the payment of FDP in the order in which the debits arise; and
ii: after all branch equivalent tax debits arising from the payment of FDP are reduced to zero, reducing debits arising from a reduction of FDP under section RG 7 in the order in which the debits arise; and
iii: for branch equivalent tax debits subject to the same subparagraph and arising at the same time and not reduced to zero by the credit, reducing each debit in proportion to the contribution of the debit to the total of the debits; and
d: counting an amount of a branch equivalent tax credit only once in the reduction of some or all of a branch equivalent tax debit. attributed CFC income, branch equivalent tax account, branch equivalent tax credit, branch equivalent tax debit, Commissioner, company, consolidated BETA group, FDP, foreign dividend, income tax liability, income year .
2: Subsection (1) applies for income years beginning on or after 1 July 2009.
110: Heading and section OP 108B repealed
The heading before section OP 108B
111: Tax credits for non-resident investors
1: In section OZ 12(2) 24/53 54/119
2: In section OZ 12(3) 24/53 54/119
112: Payment dates for terminal tax
1: In section RA 13(2)(a)(i) subsection (3) subsection (4)
2: Subsection (1) applies for the 2008–09 and later income years.
113: Alternate rate option
In section RD 59(3)(b) 49% 49.25%
114: Heading and section RD 72 repealed
The heading before section RD 72
115: Interest
1: In section RE 12(5) income year tax year
2: Section RE 12(5)(a)
a: the payment of resident passive income that consists of interest is made in the 2010–11 tax year to—
i: a portfolio investment entity; or
ii: a company that is not a trustee or a Maori authority; and .
3: In section RE 12 Maori authority trustee
116: Payments made by RWT proxies
1: In section RE 18(2)(a) schedule 1, part D, clause 2 schedule 1, part D, clause 3
2: Subsection (1) applies for the 2008–09 and later income years.
117: Definitions
1: This section amends section YA 1
2: In the definition of amount of tax means includes
3: After the definition of Australian approved deposit fund Australian complying superannuation scheme .
4: In the definition of charitable or other public benefit gift for the purposes of sections LD 1 to LD 3 (which relate to tax credits for charitable or other public benefit gifts)
5: In the definition of child between a man and a woman
6: After the definition of financial assistance financial institution financial institution special purpose vehicle
a: derives no exempt income; and
b: has all of its financial arrangements that are its assets treated as a financial institution's financial arrangements for financial reporting purposes, but ignoring any current account balance that is incidental to the company's or trustees' sole purpose described in paragraph (e); and
c: receives only funds that are–––
i: in respect of financial arrangements described in paragraph (b):
ii: incidental to the company's or trustees' sole purpose described in paragraph (e); and
d: either––
i: operates to guarantee liabilities of the financial institution or of a company, incorporated in and resident in New Zealand, that is a member of a wholly-owned group of companies which includes the financial institution; or
ii: operates in respect of the company's or trustees' issue of residential mortgage backed securities; and
e: has interests in financial arrangements only for the sole purpose of carrying out the company's or trustees' operations described in paragraph (d)(i) or (ii); and
f: has financial statements that are prepared using IFRSs and are audited .
7: After the definition of fishing business fishing quota emissions unit
a: transferred, under an allocation plan made under section 74 of the Climate Change Response Act 2002, to a person as an owner of individual transferable quota as defined in section 2 of the Fisheries Act 1996; and
b: held continuously by the person since the issue .
8: In the definition of foreign non-dividend income dividends dividends; and
c: not FIF income calculated under the fair dividend rate method .
9: The definition of forest land emissions unit forest land emissions unit forest sink emissions unit .
10: The definition of general insurance contract
11: The definition of government screen production payment
12: In the definition of honorarium and schedule 4, part B (Rates of tax for schedular payments)
13: In the definition of land investment company portfolio investment entity: portfolio investment entity; and
14: After the definition of LAQC large budget film grant
a: is in the nature of a large budget screen production grant or post-production digital and visual effects grant; and
b: is made in relation to a film or television production; and
c: is authorised by the New Zealand Film Commission in relation to a company that—
i: is resident in New Zealand:
ii: has a permanent establishment in New Zealand .
15: After the definition of limited attribution company limited non-transaction shares .
16: In the definition of member
17: In the definition of member credit contribution
iv: a superannuation contribution that was transferred from an Australian complying superannuation scheme and contributed to a KiwiSaver scheme: .
18: In the definition of non-Kyoto greenhouse gas unit human induced human-induced
19: The definition of post-1989 forest land emissions unit post-1989 forest land emissions unit
a: to the person and held continuously by the person from the transfer:
b: to another person (the recipient
i: transferred by the recipient to the person, under a provision of the forestry rights agreement relating to the allocation of income or emissions units between the recipient and the person; and
ii: held continuously by the person from the transfer by the recipient .
20: The definition of pre-1990 forest land emissions unit pre-1990 forest land emissions unit
a: to the person and held continuously by the person from the transfer:
b: to another person (the appointee
i: transferred by the appointee to the person, as a future owner of the pre-1990 forest land at the time of the transfer to the appointee; and
ii: held continuously by the person from the transfer by the appointee:
c: to another person (the recipient
i: transferred by the recipient to the person, under a provision of the forestry rights agreement relating to the allocation of income or emissions units between the recipient and the person; and
ii: held continuously by the person from the transfer by the recipient .
21: After the definition of profit-sharing arrangement projected transactions shareholding .
22: In the definition of replacement forest land emissions unit
a: paragraph (a) is replaced by the following:
a: the person has previously disposed of a post-1989 forest land emissions unit or forest sink emissions unit other than by—
i: surrender under the Climate Change Response Act 2002:
ii: transfer to the Crown under a forest sink covenant under section 67Y of the Forests Act 1949; and :
b: in paragraph (b), post-1989 forest land emissions unit post-1989 forest land emissions unit or forest sink emissions unit
23: In the definition of revenue account property property that would produce income for the person if they disposed of it property for which an amount derived by the person from its disposal would be income
24: In the definition of revenue account property if disposed of if disposed of for valuable consideration
25: The definition of RMBS special purpose vehicle
26: In the definition of savings product policy portion of a policyholder's premiums some or all of a policyholder's premiums relating to life risk
27: The definition of significant financial hardship
28: In the definition of trading stock
a: in paragraph (b), EB 24 (Apportionment on disposal of business assets that include trading stock), CG 6 (Receipts from insurance, indemnity, or compensation for trading stock),
b: in paragraph (c), GC 1(3) GC 1(4)
29: After the definition of trading stock trading transactions transaction shares .
30: In the definition of trust rules
31: In the definition of unwind RMBS financial institution
32: The definition of withdrawal
33: Subsections (2), (5), (8), (23), and (28) apply for the 2008–09 and later income years.
34: Subsection (13) applies for the 2010–11 and later income years.
35: Subsection (26) applies––
a: on and after 1 July 2010, except if paragraph (b) applies:
b: for an income year that includes 1 July 2010 and later income years, if the life insurer chooses to apply the new life insurance rules in the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 in a return of income for the tax year corresponding to the first relevant income year.
118: General rules for currency conversion
1: After section YF 1(3) General conversion rates and calculation methods approved by Commissioner
5: Despite subsection (2), the amount may be converted into New Zealand currency by applying a rate—
a: set by the Commissioner for general use for the purposes of this section:
b: calculated using a method approved by the Commissioner for general use for the purposes of this section. Specific conversion rates and calculation methods approved by Commissioner
6: Despite subsection (2), a person may convert the amount into New Zealand currency by applying a rate—
a: approved by the Commissioner for use in the circumstances of the person:
b: calculated using a method approved by the Commissioner for use in the circumstances of the person.
2: Subsection (1) applies for the 2008–09 and later income years.
119: New section YF 2 added
1: After section YF 1
YF 2: Other rules for currency conversion: approved alternatives
When this section applies
1: This section applies when—
a: a provision other than section YF 1 provides a rate or method for currency conversion; and
b: for the purposes of the provision, a person is required to convert an amount expressed in a currency other than New Zealand currency. Representative rates
2: The Commissioner may set a representative conversion rate that the person may use, instead of the rate or method referred to in subsection (1)(a), in converting the amount into New Zealand currency. amount, Commissioner, New Zealand .
2: Subsection (1) applies for the 2008–09 and later income years.
120: Schedule 1—Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe benefits
1: In schedule 1, part D, table 2 schedule 1, part 1
2: Schedule 1, part D, clause 4
4: Interest: most companies
The payment rate for a payment of resident passive income that consists of interest is set out in table 3 if the recipient of the payment is a company that is not a trustee or a Maori authority. However, this restriction does not apply if the trustee is a portfolio investment entity.
3: Schedule 1, part D, table 3 schedule 1, part 2
121: Schedule 4––Rates of tax for schedular payments
1: In the heading to schedule 4, part B or honoraria honoraria, and other payments
2: After schedule 4, part B, clause 1
1B: A payment has a 0.33 rate of tax for each dollar of the payment, if it is for work or services performed by––
a: a local government elected representative:
b: an official of a community organisation, society, or club:
c: a chair or member of a committee, board, or council:
d: an official, chair, or member of a body or organisation similar to one described in paragraph (b) or (c).
3: In schedule 4, part C cultivation contract work cultivation contract work—
a: means work or services provided under a contract or arrangement—
i: for the supply of labour, or substantially for the supply of labour; and
ii: on or in connection with land that is used or intended to be used for the cultivation of fruit crops, vegetables, orchards, or vineyards:
b: excludes work or services provided by—
i: a post-harvest facility:
ii: a management entity under a formal management agreement under which the entity is responsible for payment for the work or services provided .
4: Subsection (2) applies to a payment for work and services made in the 2008–09 and later income years, other than a payment––
a: for work or services performed before the day that this Act receives the Royal assent; and
b: from which the payer is not obliged to withhold an amount of tax, ignoring subsection (2).
122: Schedule 6—Prescribed rates: PIE investments and retirement scheme contributions
Schedule 6 schedule 2
123: Schedule 29—Portfolio investment entities: listed investors
1: After schedule 29
9: A community trust.
2: Schedule 29
3: Subsections (1) and (2) apply for the 2010–11 and later income years.
124: Schedule 32—Recipients of charitable or other public benefit gifts
1: In schedule 32 Cure Kids Cyclone Ofa Relief Fund
2: Subsection (1) applies for the 2010–11 and later tax years.
3: Amendments to Tax Administration Act 1994
125: Tax Administration Act 1994
Sections 126 to 174 Tax Administration Act 1994 2010-09-07 Tax Administration Act 1994 all provisions commencing on 7 September 2010 and some are treated as coming into force earlier 2011-04-01 Tax Administration Act 1994 sections 132, 133, and 173
126: Interpretation
1: This section amends section 3(1)
2: After the definition of Commissioner-set instalment date Commissioner's official opinion
a: means, for a taxpayer,––
i: an opinion of the Commissioner concerning the tax affairs of the taxpayer, given by the Commissioner, either orally or in writing, after all information relevant to forming the opinion has been provided to the Commissioner, if that information is correct:
ii: a finalised official statement of the Commissioner, in writing, if it specifically applies to the taxpayer's situation:
b: does not include a private binding ruling .
3: After the definition of government agency government screen production payment
a: is in the nature of a large budget screen production grant, post-production digital and visual effects grant, or New Zealand screen production incentive; and
b: is authorised by the New Zealand Film Commission in relation to a company that—
i: is resident in New Zealand:
ii: has a permanent establishment in New Zealand .
4: After the definition of proceedings promoter .
5: After the definition of proposed adjustment proscribed question
a: whether a fact is correct or exists:
b: what is a person’s purpose or intention, for the purpose of any provision of the Income Tax Act 2007 that expressly refers to a person's purpose or intention:
c: what is the value of a thing:
d: what is commercially acceptable practice, for the purposes of any provision of that Act that expressly refers to commercially acceptable practice .
6: After the definition of RWT exemption certificate RWT rate .
127: Exemption certificates for schedular payments
1: Section 24M(5)
5: A person must not alter an exemption certificate.
6: A person must not use an exemption certificate that is not in force, or has been altered, to cause a person to refrain from withholding an amount of tax from a schedular payment.
2: Subsection (1) applies for the 2008–09 and later income years.
128: Special tax rate certificates for schedular payments
1: Section 24N(5)
5: A person must not alter a special tax rate certificate.
6: A person must not use a special tax rate certificate that is not in force, or has been altered, to cause a person to refrain from withholding an amount of tax from a schedular payment.
2: Subsection (1) applies for the 2008–09 and later income years.
129: Use of inconsistent RWT rates
1: Section 25A(1)
1: This section applies when the Commissioner considers that a person who receives a payment of resident passive income consisting of interest has had tax withheld at an RWT rate that is inconsistent with their marginal tax rate.
2: Subsection (1) applies for the 2010–11 income year.
130: RWT withholding certificates
1: In section 25(6)(a) applies: applies; and
2: In section 25(6)(b) withheld: withheld; and
3: In section 25(6)(c) withheld: withheld; and
4: Section 25(6)(d)
d: the rate for the resident passive income—
i: found by dividing the total amount of RWT withheld by the amount of resident passive income:
ii: at which RWT would have been withheld if the resident passive income had been paid or derived at the end of the relevant tax year:
iii: at which RWT was withheld during the relevant tax year, together with, if more than 1 RWT rate applied for the resident passive income, the amount to which each rate applied and the amount withheld at each rate.
5: Subsection (4) applies for the 2010–11 and later tax years.
131: Portfolio tax rate entity to give statement to investors and request information
In section 31B(2B)(a), portfolio exit period portfolio investor exit period
132: Section 32B repealed
Section 32B
133: Section 32C repealed
Section 32C
134: Particulars furnished in electronic format
In section 36C(1) sections 35, 36, 36A, 36B, 36BB, or 36BC section 35, 36, 36A, 36AB, 36B, 36BB, or 36BC
135: General requirements for returns
In section 40(2)(a) either sections 36, 36A, or 36B section 35, 36, 36A, 36AB, 36B, 36BB, 36BC, or 36E
136: Returns by persons with tax credits for housekeeping payments and charitable or other public benefit gifts
1: In section 41A(5)(a) section LC 7 section LC 6
2: Subsection (1) applies for the 2008–09 and later income years.
137: RWT withholding reconciliation statements
1: Section 51(2)(g)
2: Subsection (1) applies for the 2010–11 and later tax years.
138: Disclosure of interest payments when no requirement to withhold RWT
1: In section 52(a) for which RWT is required for which RWT is not required
2: Subsection (1) applies for the 2008–09 and later income years.
139: Determinations in relation to financial arrangements
In section 90(7)
a: in the Gazette
b: determination or notice, determination or notice, in a publication chosen by the Commissioner and
140: Notification of determinations and notices
In section 90AD(1)
a: in the Gazette
b: determination or notice is made determination or notice is made, in a publication chosen by the Commissioner
141: Determinations in relation to apportionment of interest costs
In section 90A(7)
a: in the Gazette
b: determination or notice, determination or notice, in a publication chosen by the Commissioner and
142: Determinations in relation to standard-cost household service
In section 91AA(6)
a: in the Gazette
b: making of the determination making of the determination, in a publication chosen by the Commissioner
143: Determinations relating to types and diminishing values of listed horticultural plants
In section 91AAB(6) the Gazette a publication chosen by the Commissioner
144: Publication and revocation of determinations relating to livestock
1: In section 91AAE(1)
a: in the Gazette
b: the Commissioner the Commissioner, in a publication chosen by the Commissioner
2: In section 91AAE(2) in the Gazette
145: Commissioner may decline to issue special rate or provisional rate
1: Section 91AAH(2)(a)
a: the difference between the economic rate already applicable to the item and an appropriate special rate would be less than 50% of the difference between the already applicable economic rate and the next higher or lower rate, as applicable, in—
i: schedule 11 of the Income Tax Act 2007, if the item is acquired on or after 1 April 2005; or
ii: schedule 12 of that Act, if the item is acquired before 1 April 2005; or .
2: Section 91AAH(3)(ab)
ab: if a default rate applies to the item, the difference between the default rate and the provisional rate would be less than 50% of the difference between the default rate and the next higher or lower rate, as applicable, in—
i: schedule 11 of the Income Tax Act 2007, if the item is acquired on or after 1 April 2005; or
ii: schedule 12 of that Act, if the item is acquired before 1 April 2005; or .
3: Subsections (1) and (2) apply for the 2008–09 and later income years.
146: Notice of setting of economic rate
In section 91AAK the Gazette a publication chosen by the Commissioner
147: Applications for determinations
In section 91AAM(4) the Gazette a publication chosen by the Commissioner
148: Determinations on rates for diminishing value of environmental expenditure
In section 91AAN(9) the Gazette a publication chosen by the Commissioner
149: Determination on type of interest in FIF and use of fair dividend rate method
1: In section 91AAO(2)(b)(i) fixed-return foreign equity fixed-rate foreign equity
2: In section 91AAO(5)(a)
a: in the Gazette
b: date of the determination date of the determination, in a publication chosen by the Commissioner
150: Determination on insurer as non-attributing active CFC
In section 91AAQ(8) the Gazette a publication chosen by the Commissioner
151: Determination relating to eligible relocation expenses
In section 91AAR(6) the Gazette a publication chosen by the Commissioner
152: Content and notification of a public ruling
In section 91DA(2) the Gazette a publication chosen by the Commissioner
153: Withdrawal of a public ruling
In section 91DE(2) the Gazette a publication chosen by the Commissioner
154: Commissioner to make private rulings on request
1: In section 91E(3)(b) matter on which the ruling is sought is arrangement on which the ruling is sought, or a separately identifiable part of that arrangement, is substantially the same as an arrangement which is
2: In section 91E(4)(a) questions of fact a proscribed question
3: Section 91E(4)(ga)
ga: the application is for a ruling in respect of a tax type or a separately identifiable issue, for an arrangement, that is the subject of a notice of proposed adjustment for the arrangement; or .
4: In section 91E(4)(j) or to form an opinion as to a commercially acceptable practice
155: Effect of a private ruling
1: In section 91EA(1)(a) an arrangement an arrangement and a tax type for an arrangement
2: In section 91EA(1)(b) taxation law taxation law for the tax type
3: In section 91EA(1) the person and the arrangement the person, the tax type, and the arrangement
156: Application of a private ruling
1: In section 91EB(1) taxation law taxation law for a tax type
2: In section 91EB(2) an arrangement if a tax type for an arrangement, to the extent to which, in relation to the tax type
157: Assumptions in making a private ruling
After section 91EF(2)
3: The Commissioner may make assumptions about the answer to a proscribed question, and making those assumptions is treated as not determining the proscribed question for the purposes of section 91E(4)(a).
158: Content and notification of a private ruling
After section 91EH(1)
1B: The Commissioner may stipulate conditions about the answer to a proscribed question, and stipulating those conditions is treated as not determining the proscribed question for the purposes of section 91E(4)(a).
159: New section 91EJ inserted
After section 91EI
91EJ: Treatment of information
1: Information supplied to the Commissioner by the applicant for a private ruling is the factual basis on which the Commissioner makes a private ruling.
2: Despite subsection (1), the Commissioner,—
a: as part of the process of making a private ruling, may, but does not have to, inquire into the correctness or existence of the facts contained in the information supplied before making the private ruling:
b: is not stopped by the process of making the private ruling or by the use of the information as the basis of the private ruling from denying, outside the process of making the ruling or subsequent to making the ruling, the correctness or existence of the facts contained in the information supplied.
160: Commissioner may make product rulings
1: Section 91F(3)(b)
b: the arrangement on which the ruling is sought, or a separately identifiable part of that arrangement, is substantially the same as an arrangement which is subject to an objection, challenge, or appeal, whether in relation to the applicant or any other person; or
bb: the applicant is a promoter who, in the Commissioner's opinion, did not comply with section 91FD in relation to an earlier binding ruling application; or .
2: In section 91F(4)(a) questions of fact a proscribed question
3: In section 91F(4)(h) or to form an opinion as to a commercially acceptable practice
161: Effect of a product ruling
1: In section 91FA(1)(a) an arrangement an arrangement and a tax type for an arrangement
2: In section 91FA(1)(b) taxation law taxation law for the tax type
3: In section 91FA(1) the arrangement the person, the tax type, and the arrangement
162: Application of a product ruling
1: In section 91FB(1) taxation law taxation law for a tax type
2: In section 91FB(2) an arrangement if a tax type for an arrangement, to the extent to which, in relation to the tax type
163: Applying for a product ruling
In section 91FC(1A) proposed arrangement proposed arrangement or a promoter of the proposed arrangement
164: Disclosure requirements
After section 91FD(1)(b)
bb: if the person making the application is the promoter of the arrangement, make a statutory declaration that paragraph (b) has been complied with and that all relevant facts are correct.
165: Assumptions in making a product ruling
After section 91FF(2)
3: The Commissioner may make assumptions about the answer to a proscribed question, and making those assumptions is treated as not determining the proscribed question for the purposes of section 91F(4)(a).
166: Content and notification of a product ruling
1: After section 91FH(1)
1B: The Commissioner may stipulate conditions about the answer to a proscribed question, and stipulating those conditions is treated as not determining the proscribed question for the purposes of section 91F(4)(a).
2: In section 91FH(4)(a) the Gazette a publication chosen by the Commissioner
3: In section 91FH(5)(a) the Gazette a publication chosen by the Commissioner
167: Withdrawal of a product ruling
In section 91FJ(2) the Gazette a publication chosen by the Commissioner
168: New section 91FK inserted
After section 91FJ
91FK: Treatment of information
1: Information supplied to the Commissioner by the applicant for a product ruling is the basis on which the Commissioner makes a product ruling.
2: Despite subsection (1), the Commissioner,—
a: as part of the process of making a product ruling, may, but does not have to, inquire into the existence or correctness of facts contained in the information supplied before making the product ruling:
b: is not stopped by the process of making the product ruling or by the use of the information as the basis of the product ruling from inquiring, outside the process of making the ruling or subsequent to making the ruling, into the existence or correctness of facts contained in the information supplied.
169: New section 120W inserted
After section 120V
120W: Commissioner's official opinions
1: A taxpayer that, but for this section, is liable to pay interest on unpaid tax to the Commissioner, is not liable to pay that interest to the extent to which it arises because they relied on a Commissioner's official opinion.
2: Subsection (1) applies if the relevant Commissioner's official opinion was given by the Commissioner on or after the day on which the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 receives the Royal assent.
170: Transitional imputation penalty tax payable in some circumstances
Section 140BB(1C)
1C: For the purposes of subsection (1), the company must include in its ICA balance the ICA credits and debits for transactions occurring after the end of the company's 2007–08 income year to the extent to which those credits and debits relate to memorandum account debits, credits, and balances dealt with, arising, or calculated using an old company tax rate, but excluding any amount taken into account under subsection (1B).
171: Unacceptable tax position
1: After section 141B(1C)
1D: A taxpayer does not take an unacceptable tax position to the extent to which they have taken their position because they have relied on a Commissioner's official opinion.
2: Subsection (1) applies if the relevant Commissioner's official opinion was given by the Commissioner on or after the day on which this Act receives the Royal assent.
172: Definition of promoter
In section 141EC(1) section 141EB sections 91FC, 91FD, and 141EB
173: Section 165AA repealed
Section 165AA
174: Remission for GST transitional taxable periods
In section 183AA(4)(b) 31 December 2010. 31 December 2010:
c: a GST taxable period for which the taxpayer is required to make a return that includes an adjustment under section 78B of the Goods and Services Tax Act 1985 because of the change in the rate of goods and services tax on 1 October 2010.
4: Amendments to KiwiSaver Act 2006
175: KiwiSaver Act 2006
Sections 176 to 189 KiwiSaver Act 2006 2010-09-07 KiwiSaver Act 2006 all provisions except as noted. Section 186 comes into effect on 7 September but is effective from 1 April 2010. come into force on the first day of the second month after the month in which the Governments of Australia and New Zealand exchange notes, as provided by clause 21 of the Arrangement between them on trans-Tasman retirement savings portability 2013-07-01 KiwiSaver Act 2006 Sections 176(1) and (3), 183, 184, 188, and 189(1), (2), (4) and (5)
176: Interpretation
1: In section 4 address Australian complying superannuation scheme .
2: In section 4 gross salary or wages guardian .
3: In section 4 member's accumulation
ab: an amount that was transferred from an Australian complying superannuation scheme and contributed to a KiwiSaver scheme; and .
177: Employees must give information to employers
1: In the heading before section 22 people who start new employment employees and employers
2: In the heading to section 22 must give giving
3: After section 22(2)
3: A person who is in temporary employment and who is a member of a KiwiSaver scheme may give their temporary employer a KiwiSaver deduction notice.
178: Eligibility to be exempt employer
1: In section 25(1)(b) the day after the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 receives the Royal assent 7 October 2009
2: Section 25(1)(bb)
179: How to apply to be exempt employer
1: Section 29(1)
(1): A person may make an application to the Government Actuary for approval of an employer (the current employer
a: an application (the old application
b: as a result of the Government Actuary's consideration of that old application under section 30 an employer was approved as an exempt employer; and
c: either that exempt employer is the current employer, or the current employer is a succeeding employer for that exempt employer.
2: After section 29(2)
3: In this section succeeding employer
a: an employer who succeeds the exempt employer due to a merger or acquisition of the exempt employer; and
b: another employer who succeeds a succeeding employer for the exempt employer due to a merger or acquisition of that succeeding employer.
180: How applications to be exempt employer must be dealt with
In section 30(1) receiving an application under section 29 and the documents required receiving an application that may be made under section 29(1) and the documents required under section 29(2)
181: How to opt in
1: In the heading to section 34 How to opt in Opting in by person 18 years or more
2: In section 34(1) A person who A person who is 18 years or more and who
182: Opting in by persons under 18
Section 35
1: A person who is less than 18 years may only opt in in accordance with this section.
2: A person who is less than 16 years may opt in if all their guardians contract directly with a provider, in the name of the person. If the provider accepts the person, then the person is treated as––
a: contracting directly with the provider; and
b: 18 years for the purposes of the Minors' Contracts Act 1969; and
c: opting in under section 34(1)(a).
3: A person who is 16 or 17 years old with a guardian may opt in if the person and 1 of their guardians jointly contract directly with a provider, in the name of the person. If the provider accepts the person, then the person is treated as––
a: contracting directly with the provider; and
b: 18 years for the purposes of the Minors' Contracts Act 1969; and
c: opting in under section 34(1)(a).
4: A person who is 16 or 17 years old with no guardian may opt in if the person contracts directly with a provider. If the provider accepts the person, then the person is treated as––
a: 18 years for the purposes of the Minors' Contracts Act 1969:
b: opting in under section 34(1)(a).
183: Initial back-dated validation
In section 59B(2)(b)(iii) the member's accumulation the amount of the member's accumulation, less the amount that was transferred from an Australian complying superannuation scheme
184: What happens when initial back-dated validation ends, with no confirmed back-dated validation?
1: In section 59D(2)(a)(i) and when they were received , when they were received, and (if available) who they were paid by
2: Section 59D(2)(b)
b: pay the amount of the member's accumulation, less the amount that was transferred from an Australian complying superannuation scheme, for the person to the Commissioner, if the provider has not already done so; and
c: pay the amount that was transferred from an Australian complying superannuation scheme (the transferor scheme
i: the transferor scheme; or
ii: an Australian complying superannuation scheme chosen by the person; or
iii: an Australian complying superannuation scheme chosen by the Commissioner, if the person does not choose one and it is not appropriate to pay to the transferor scheme.
3: After section 59D(3)(a)(iii)
iv: the amount that was transferred from an Australian complying superannuation scheme: .
4: In section 59D(3)(c) paragraph (a)(i) to (iii) paragraph (a)(i) to (iv)
5: In section 59D(4) subsection (3)(a)(i) and (ii) subsection (3)(a)(i) to (iv)
185: PAYE rules apply to deductions
In section 67(3)(a) to RD 11 , RD 10
186: Interest rate
1: In section 86(1) lowest tax rate part A, table 1, row 1, column 3 part D, table 2, row 7, column 3
2: Subsection (1) applies for the 2010–11 and later tax years.
187: Application of other provisions of Superannuation Schemes Act 1989
After section 122(5)(a)
ab: the requirement in section 17(1)(a) is treated as met in respect of a member, if––
i: the member has consented, in writing, to receive a world wide web uniform resource locator for access to an electronic copy of the annual report (the annual report URL
ii: the provider gives the annual report URL to the member within 6 months of the close of the relevant financial year; and .
188: Regulations relating to mortgage diversion facility
After section 229(2)(j)
jb: an amount that was transferred from an Australian complying superannuation scheme may not be diverted: .
189: Schedule 1––KiwiSaver scheme rules
1: After schedule 1, clause 4
4B: Amounts from Australian complying superannuation schemes
A member may withdraw the amount that was transferred from an Australian complying superannuation scheme (disregarding any positive or negative returns for the purpose of calculating that amount), if the member is 60 years or more and the member's retirement (as that term is defined in regulation 6.01(7) of the Superannuation Industry (Supervision) Regulations 1994 (Aust), with necessary modification for KiwiSaver scheme trustees (in the case of a restricted KiwiSaver scheme) or the manager (in the case of any other KiwiSaver scheme)
2: Schedule 1, clause 8(4)
4: A member may not make a withdrawal under this clause of more than an amount equal to the member's accumulation, at the time of the withdrawal, less the total of the following 2 amounts:
a: the amount of the Crown contribution (disregarding any positive or negative returns for the purpose of calculating the amount of the Crown contribution):
b: the amount that was transferred from an Australian complying superannuation scheme (disregarding any positive or negative returns for the purpose of calculating that amount).
3: In schedule 1, clause 8(6) , a leasehold estate,
4: In schedule 1, clause 14(1) and (2)
1: Subject to clause 14B, a member may, on application to the trustees (in the case of a restricted KiwiSaver scheme) or the manager (in the case of any other KiwiSaver scheme)
a: the amount of the Crown contribution arising from a tax credit under section MK 1 of the Income Tax Act 2007 (disregarding any positive or negative returns for the purpose of calculating the amount of the Crown contribution):
b: the amount that was transferred from an Australian complying superannuation scheme (disregarding any positive or negative returns for the purpose of calculating that amount).
2: Subject to clause 14B, a member may, on application to the trustees (in the case of a restricted KiwiSaver scheme) or the manager (in the case of any other KiwiSaver scheme) trustees or the manager (as the case may be)
a: the amount of the Crown contribution arising from a tax credit under section MK 1 of the Income Tax Act 2007 (disregarding any positive or negative returns for the purpose of calculating the amount of the Crown contribution):
b: the amount that was transferred from an Australian complying superannuation scheme (disregarding any positive or negative returns for the purpose of calculating that amount).
5: After schedule 1, clause 14
14B: Exceptions to clause 14 for Australian permanent emigration
1: For a KiwiSaver scheme (but not for a complying superannuation fund) a member may not withdraw any amount, or have the trustees or the manager (as the case may be)
2: At any time after the member's permanent emigration to Australia, a member may, on application to the trustees (in the case of a restricted KiwiSaver scheme) or the manager (in the case of any other KiwiSaver scheme) trustees or the manager (as the case may be)
3: As soon as practicable after receiving a satisfactory application, the trustees or the manager (as the case may be)
4: An application under subclause (2) must be in the form required by the trustees or the manager (as the case may be)
a: a completed statutory declaration in respect of the member to the effect that the member has permanently emigrated to Australia; and
b: proof to the satisfaction of the trustees or the manager (as the case may be)
i: of the member's departure from New Zealand ( see
ii: that the member has resided at an Australian address at some time following the member's departure from New Zealand.
5: The trustees or the manager (as the case may be) Section 189(1) amended 1 May 2011 section 56 KiwiSaver Amendment Act 2011 Section 189(4) amended 1 May 2011 section 56 KiwiSaver Amendment Act 2011 Section 189(4) amended 1 May 2011 section 56 KiwiSaver Amendment Act 2011 Section 189(5) new clause 14B(1) amended 1 May 2011 section 56 KiwiSaver Amendment Act 2011 Section 189(5) new clause 14B(2) amended 1 May 2011 section 56 KiwiSaver Amendment Act 2011 Section 189(5) new clause 14B(3) amended 1 May 2011 section 56 KiwiSaver Amendment Act 2011 Section 189(5) new clause 14B(4) amended 1 May 2011 section 56 KiwiSaver Amendment Act 2011 Section 189(5) new clause 14B(4)(b) amended 1 May 2011 section 56 KiwiSaver Amendment Act 2011 Section 189(5) new clause 14B(5) amended 1 May 2011 section 56 KiwiSaver Amendment Act 2011
5: Amendments to other Acts and regulations
Goods and Services Tax Act 1985
190: Goods and Services Tax Act 1985
Sections 191 to 194 Goods and Services Tax Act 1985 2010-09-07 Goods and Services Tax Act 1985 all come into effect on 7 September 2010 but section 192 is effective from 1 January 2005
191: Zero-rating of services
1: Section 11A(1)(s)
s: the services are an emissions unit and the supply is the transfer of the emissions unit, other than a transfer by the Crown under—
i: an agreement relating to a project to reduce emissions:
ii: a negotiated greenhouse agreement, to a person because the person exceeds the milestone targets under the agreement.
2: Section 11A(1)(v)
192: Goods and services tax incurred in making certain supplies of financial services
1: In section 20C
c: is the total value of exempt supplies of financial services by the registered person in respect of the taxable period: .
2: Subsection (1) applies for taxable periods beginning on or after 1 January 2005.
193: New section 78AA inserted
After section 78
78AA: Exceptions to effect of increase of tax
1: For the purposes of this section,—
a: rate change day
b: original rate
2: Despite section 8(1), subsection (3) applies to an insurer who is deemed under section 5(13B) to receive a recovered amount as consideration for a supply—
a: to the extent that the insurer, before the rate change day, accepts the claim to which the recovery relates and—
i: pays the claim:
ii: agrees the recovered amount unconditionally; and
b: if the amount recovered is received by the insurer on or after the rate change day; and
c: if the insurer elects that subsection (3) apply to the recovery by treating the recovery in that way in a return provided to the Commissioner.
3: The deemed supply by the insurer is charged with tax at the original rate.
4: Despite section 8(1), subsection (5) applies to a supply of goods that are personal property by a registered person under an agreement if—
a: section 9(3)(a) applies to the supply; and
b: the recipient of the supply makes periodic payments to the registered person during the term of the agreement; and
c: part of the amount payable to the registered person under the agreement is consideration for a supply that is the provision of credit under a credit contract; and
d: if the agreement were to end early, the amount of tax imposed by section 8 on the supply of the goods would be calculated on the basis that a periodic payment included an amount of payment for the supply referred to in paragraph (c) that decreased for each successive periodic payment; and
e: the term of the agreement—
i: begins before the rate change day; and
ii: ends on or after the rate change day; and
iii: is less than or equal to 5 years; and
f: the registered person elects that subsection (5) apply to supplies made under the agreement by treating each supply in that way in a return provided to the Commissioner; and
g: within 30 days after the rate change day, the registered person gives notice to the recipient of the supplies, if the recipient is a registered person, that payments by the recipient made after the rate change day include goods and services tax charged at the original rate.
5: Each successive supply under the agreement that is deemed to take place after the rate change day is charged with tax at the original rate.
6: Despite section 5(5), subsection (7) applies to a supply of goods under an agreement that is a layby sale to which the Layby Sales Act 1971 applies if—
a: the agreement is made before the day on which the increase in the rate of tax is announced; and
b: after the rate change day, the goods are delivered to the buyer and the property in the goods is transferred to the buyer; and
c: the registered person elects that subsection (7) apply to supplies made under the agreement by treating each supply in that way in a return provided to the Commissioner.
7: Goods and services tax is charged on the supply of the goods under the agreement (the agreed supply
a: a supply on the day before the rate change day, for which the consideration is the payment for the agreed supply that the registered person receives before the rate change day; and
b: a supply on the day that the agreed supply would have occurred in the absence of this subsection, for which the consideration is the payment for the agreed supply that the registered person receives on or after the rate change day.
8: Subsection (9) applies to a supply of goods or services if—
a: the invoice for the supply is dated before the rate change day; and
b: the invoice is issued—
i: on or before the second Monday after the rate change day; and
ii: consistently with the registered person's practice of issuing invoices for such supplies; and
c: payment for the supply is due on or before the day that is 60 days after the date of the invoice; and
d: the registered person elects that subsection (9) apply to the supply by treating the supply in that way in a return provided to the Commissioner.
9: The supply is treated as being made on the day of the date of the invoice, despite section 9(3)(a) if that provision would otherwise apply.
10: Despite section 9(1), (2)(a), and (3), subsection (11) applies to a supply by a registered person under an agreement if—
a: section 9(3)(a) would apply to the supply in the absence of this subsection; and
b: the term of the agreement begins before the rate change day and ends after the rate change day; and
c: under the agreement, the consideration for a supply is set or reviewed for periods of 396 days or less during the term of the agreement; and
d: the registered person elects that subsection (11) apply to supplies made under the agreement during a period in which the day before the rate change day occurs (the rate change period
e: within 30 days after the rate change day, the registered person gives notice to the recipient of the supplies, if the recipient is a registered person, that payments made after the rate change day by the recipient for supplies made in the rate change period include goods and services tax charged at the original rate.
11: If this subsection applies to a supply for a rate change period and, in the absence of this subsection, the supply would be made on or after the rate change day,—
a: the supply is treated as being made on the day before the rate change day; and
b: the registered person is treated as issuing a tax invoice as required by section 24 for the supply on the day before the rate change day.
12: Despite sections 25(3) and (3C) and 143A(1)(f), subsection (13) applies to a supply by a registered person who has provided a tax invoice in relation to the supply if—
a: the rate change day occurs after the registered person provides the tax invoice for the supply; and
b: in the absence of this subsection and subsection (13), the registered person would be required to provide after the rate change day a credit note or debit note for the supply; and
c: the registered person elects that subsection (13) apply to the supply by including on that basis the supply in a return provided to the Commissioner.
13: If, in the absence of this subsection, the registered person would be required to provide a—
a: credit note for a supply,—
i: the registered person may provide a replacement tax invoice for the supply; and
ii: goods and services tax is charged on the supply under that invoice at the original rate:
b: debit note for a supply, the registered person may provide a replacement tax invoice for the supply.
14: Despite section 5(13)(a), a supply of services under section 5(13) by a registered person who receives a payment under a contract of insurance on or after the rate change day is treated as being made on the day before the rate change day if—
a: the payment is made before the rate change day; and
b: the registered person receives the payment on or before the second Monday after the rate change day.
194: Adjustments to tax payable for persons furnishing returns on payments basis following change in rate of tax
1: In the heading to section 78B, on payments basis
2: Before section 78B(2A)(aa)(i)
ia: any supply that is made by the registered person as a private training establishment granted registration by the Qualifications Authority under section 236 of the Education Act 1989 and for which consideration is held in trust on the day before that date, if the registered person includes such supplies in the form referred to in subsection (2); or .
3: Section 78B(2A)(b)
b: in relation to a person who, as at the date on which the new rate of tax comes into force, is required to account for tax payable on an invoice basis,—
i: any supply made by the registered person as a private training establishment granted registration by the Qualifications Authority under section 236 of the Education Act 1989 and for which consideration is held in trust on the day before that date, if the registered person includes such supplies in the form referred to in subsection (2); or
ii: any supply made to the registered person that is a supply of secondhand goods to which section 3A(1)(c) applies,— .
4: Section 78B(2A)(e)
e: the supply is not charged with tax at—
i: the rate of zero percent; or
ii: a rate that is unaffected by the change to section 8; and .
5: After section 78B(2A)
2B: For the purposes of this section, a taxable supply made by a registered person on or after the date on which the new rate of tax comes into force is treated as being made before that date if—
a: the registered person makes the supply as a private training establishment granted registration by the Qualifications Authority under section 236 of the Education Act 1989; and
b: the consideration for the supply is held in trust on the day before that date; and
c: the registered person includes such supplies in the form referred to in subsection (2). Estate and Gift Duties Act 1968
195: Exemption for gifts to charities and certain bodies
1: This section amends the Estate and Gift Duties Act 1968
2: Before section 73(2)(a)
aa: any gift required by an order of a court under the Law Reform (Testamentary Promises) Act 1949 or the Family Protection Act 1955: .
3: After section 73(2)(jc)
jd: any gift to an organisation that is—
i: part of the State Services as defined in section 2 of the State Sector Act 1988; and
ii: not an educational institution; and
iii: not carried on for the private pecuniary profit of any individual: .
4: After section 73(2)(ka)
kb: any gift to an organisation that is a local authority, or a council-controlled organisation as defined in section 6 of the Local Government Act 2002, or a subsidiary of such a council-controlled organisation and is not carried on for the private pecuniary profit of any individual: .
5: In section 73(2)(n) that trust. that trust:
o: any gift to an organisation that is a donee organisation as defined in section YA 1 of the Income Tax Act 2007. 2010-09-07 Estate and Gift Duties Act 1968 section 195(2) is effective from 24 May 1999. Section 195(4) is effective from 1 July 2008. Section 195(5) is effective from 1 April 2008. Income Tax Act 2004
196: Income Tax Act 2004
Sections 197 to 208 Income Tax Act 2004 2010-09-07 Income Tax Act 2004 Section 198 is effective from 21 December 2004. Sections 200, 201, and 207(2) is effective from 1 April 2007. Sections 204, 205, and 206 are effective from 1 October 2007. Sections 196 and 203 are effective from 19 December 2007.
197: Foreign investment fund income
Section CD 26(1) Amount not dividend
1: An amount paid by a company to a person is not a dividend if,—
a: at the time the person derives the amount, the person's interest in the company is an attributing interest or would have been an attributing interest if the company had not been liquidated; and
b: the person calculates their FIF income or loss in relation to the interest and the period in which the amount is paid under—
i: the comparative value method:
ii: the deemed rate of return method:
iii: the cost method:
iv: the fair dividend rate method.
198: Benefits provided to employees who are shareholders or investors
1: In section CX 16(4)(a) shareholder: shareholder; and
2: Subsection (1)—
a: applies for the 2005–06 and later income years, except if paragraph (b) applies:
b: does not apply for a person or an income year in relation to a tax position taken by the person for their 2005–06 or later income year—
i: in the period from 12 December 2004 to the date of the Royal assent of this Act; and
ii: relating to a return of income, an FBT return, or a GST return filed before the date of the Royal assent of this Act; and
iii: relying upon section CX 16(4) as it was before the amendment made by subsection (1).
199: Total deductions in section EE 47
1: After section EE 51(3) Treatment of mothballed assets
3B: Subsection (3)(b) does not apply in relation to an amount of depreciation loss for an item that has been withdrawn from use in deriving assessable income or carrying on a business for the purpose of deriving assessable income. However, this exclusion does not apply to an amount of depreciation loss for which the person has a deduction under section EE 32.
2: Subsection (1) applies for the 2005–06 and later income years.
200: Determination alternatives to IFRS
1: In section EW 15D(1)(d)(ii) fair value method. fair value method; or
iii: is treated under IFRSs by the person as a hedge of something that is not a financial arrangement.
2: Subsection (1) applies for—
a: the 2007–08 and later income years, except if paragraph (b) or (c) applies; or
b: the first income year for which the person adopts IFRSs for the purposes of financial reporting and later income years, if that first income year is before the 2007–08 income year and the person chooses to apply the IFRS taxpayer method in a return of income for that first year; or
c: the 2008–09 and later income years, if a person's 2008–09 income year starts before 1 January 2008 and the person has not adopted IFRSs for the purposes of financial reporting before 1 January 2007.
201: Expected value method and equity-free fair value method
1: In section EW 15E(1)(c)(ii) fair value method; and fair value method; or
iii: is treated under IFRSs by the person as a hedge of something that is not a financial arrangement; and .
2: Subsection (1) applies for—
a: the 2007–08 and later income years, except if paragraph (b) or (c) applies; or
b: the first income year for which the person adopts IFRSs for the purposes of financial reporting and later income years, if that first income year is before the 2007–08 income year and the person chooses to apply the IFRS taxpayer method in a return of income for that first year; or
c: the 2008–09 and later income years, if a person's 2008–09 income year starts before 1 January 2008 and the person has not adopted IFRSs for the purposes of financial reporting before 1 January 2007.
202: Meaning of CFC
1: Section EX 1(1)(b)(i)
i: the person's control interest is less than or equal to a control interest in the same category held by another person; and .
2: Subsection (1)—
a: applies for the 2005–06 and later income years, except if paragraph (b) applies:
b: does not apply for a person in relation to a tax position taken by the person—
i: before 19 November 2009; and
ii: relying on the provision amended by this section as it was immediately before the amendment made by this section.
203: Codes: comparative value method, deemed rate of return method, fair dividend rate method, and cost method
Section EX 47(1)(c)
c: the fair dividend rate method: .
204: Treatment of portfolio class taxable loss and portfolio class land loss for tax year
1: Section HL 30(3)(a)(i)
i: are an investment of the type listed in subsection (4); and .
2: After section HL 30(3) Investment types
4: For the purposes of subsection (3)(a)(i), the investment must be—
a: an investment in land:
b: an investment in a portfolio land company that is resident in New Zealand:
c: an investment in a non-resident portfolio land company in which the portfolio investor class has a voting interest of more than 20%.
205: Credit for investor for tax paid by entity if portfolio investor allocated income not excluded income
In section LD 10(2) income tax paid income tax liability satisfied
206: Credit for zero-rated portfolio investor for tax paid by entity in relation to portfolio investor allocated income
In section LD 10B(2) income tax paid income tax liability satisfied
207: Definitions
1: In section OB 1 revenue account property property that would produce income for the person if they disposed of it property for which an amount derived by the person from its disposal would be income
2: In section OB 1 fair value method 15B 15C
3: Subsection (1) applies for the 2005–06 and later income years.
208: Schedule 22A—Identified policy changes
1: In schedule 22A CW 31(3) The amounts excepted from the exemption are amounts that a public authority receives as trustee.
2: Subsection (1) applies for the 2005–06 and later income years. Taxation (Budget Measures) Act 2010
209: Section 4 repealed
Section 4 2010-09-07 Taxation (Budget Measures) Act 2010
210: Alternate rate option
In section 68(2)(b) 49% 49.25% 2010-09-07 Taxation (Budget Measures) Act 2010 Local Government Act 2002
211: Schedule 9—Council-controlled organisations and transfer of undertakings
1: In the Local Government Act 2002, schedule 9, clause 6(3) sections EG 17(1) sections EE 33(1) to (3)
2: In the Local Government Act 2002, schedule 9, clause 6(3) sections EE 33(1) to (3) sections EE 40(1) to (3)
3: Subsection (1) applies for the 2005–06 and later income years.
4: Subsection (2) applies for the 2008–09 and later income years. 2010-09-07 Local Government Act 2002 sections 211(1) and (3) are effective from 1 April 2005. Sections 211(2) and (4) are effective from 1 April 2008. Tax Administration (Binding Rulings) Regulations 1999
212: Waiver of fees
In the Tax Administration (Binding Rulings) Regulations 1999, regulation 6
6: Waiver of fees
1: The Commissioner may waive all or part of a fee payable under these regulations if the Commissioner considers it is fair and reasonable in the circumstances to do so, having regard to the nature of the issue that is the subject of the application, the level of skill and experience required in the consideration of the application, and any other relevant factors.
2: Subclause (1) applies if a person's application for the relevant binding ruling was received by the Commissioner on or after the day on which the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 receives the Royal assent. 2010-09-07 Tax Administration (Binding Rulings) Regulations 1999
213: Fees inclusive of goods and services tax
In the Tax Administration (Binding Rulings) Regulations 1999, regulation 7
7: Goods and services tax
1: The fees prescribed by these regulations include goods and services tax. However, for a supply that is zero-rated under the Goods and Services Tax Act 1985, the amount of a fee prescribed by these regulations is reduced by an amount equal to the tax fraction of the fee under that Act.
2: Subclause (1) applies if a person's application for the relevant binding ruling was received by the Commissioner on or after the day on which the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 receives the Royal assent. 2010-09-07 Tax Administration (Binding Rulings) Regulations 1999