Taxation (Remedial Matters) Act 1999

1: Short Title
This Act may be cited as the Taxation (Remedial Matters) Act 1999.
1: Amendments to
Income Tax Act 1994 Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
2: Income Tax Act 1994 Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
3: Public and local authorities' exempt income
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
4: Meaning of term
dividends Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
5: Transfer of excepted financial arrangement within wholly-owned group
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
6: Relationship with rest of Act
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
7: Election to use spreading method
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
8: Consideration
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
9: Non-residents
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
10: Deduction to lessee under operating lease
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
11: Costs of acquiring any film or any right in any film
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
12: Cost of producing films
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
13: Arrangement for expenditure on film and sale of property
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
14: Lease of lease asset treated as sale
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
15: Termination of finance lease
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
16: Lessor's income
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
17: Adjustment required for consecutive or successive leases
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
18: Taxation of hire purchase agreements
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
19: Rule for dividends that represent recovery of share's purchase price
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
20: Rule for calculating group excess interest allocation amount
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
21: Rule for calculating individual excess interest allocation amount
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
22: Rules for applying surplus group excess interest allocation amount to increase income tax and dividend withholding payment
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
23: Cost of producing films
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
24: Cross-border arrangement between associated persons
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
25: New Subpart inserted
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
26: Taxation on election to become qualifying company
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
27: Rebate in respect of gifts of money
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
28: Allowance of credit of tax in end of year assessment
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
29: Credit of tax by instalments
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
30: Transitional rates for interim instalments during period 1 July 1997 to 30 June 1998
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
31: Transitional rates for interim instalments during period 1 January 1998 to 30 June 1998
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
32: Commissioner to deliver credit of tax by instalments
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
33: Conduit tax relief
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
34: Calculation of percentage of shareholders not resident
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
35: Provisional tax of consolidated group members
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
36: Debits arising to imputation credit account of group
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
37: Rule for calculating company's excess interest allocation percentage
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
38: Credits arising to group dividend withholding payment account
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
39: New section inserted
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
40: Company may elect to be a conduit tax relief company and maintain conduit tax relief account
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
41: Debits arising to conduit tax relief account
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
42: New sections added
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
43: Applications of tax codes specified in tax code declarations or tax code certificates
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
44: Cessation of transitional tax allowance for purposes of tax code
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
45: Employee using incorrect tax code
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
46: Non-resident withholding tax imposed
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
47: Non-resident withholding tax to be minimum tax in certain cases
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
48: Power of Commissioner to grant relief from or vary amount of deductions
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
49: Reduction in liability under conduit tax relief
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
50: Definitions
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
51: Voting interests
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
52: Market value interests
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
53: Defining when 2 persons are associated persons
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
54: Further definitions of associated persons
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
55: Schedule 18—State enterprises
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
56: Schedule 19—Basic tax deductions
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
2: Amendments to Tax Administration Act 1994
57: Tax Administration Act 1994
This Part amends the Tax Administration Act 1994
58: Interpretation
1: In section 3 tax paragraph (a)(xi)
xii: Is a tax prescribed in section 173D .
2: Subsection (1)
59: Shareholder dividend statement to be provided by company
1: In section 29(1) conduit tax relief amount conduit tax relief credit
2: After section 29(1)(i)
ia: When a conduit tax relief credit is attached to the dividend, the information required to be included in the shareholder dividend statement in accordance with section 30A .
3: Subsections (1) (2)
60: Statement to shareholder when conduit tax relief credit attached to dividend
1: Section 30A(a)
2: Subsection (1)
61: Annual income tax returns not required
1: Section 33A(1) (2)
1: A natural person is not required to furnish a return of income for an income year and will not receive an income statement from the Commissioner for the year if, in the year, the person—
a: Had annual gross income that was derived from—
i: Income from employment that is subject to the PAYE rules; or
ii: Interest or a dividend that is subject to the RWT rules; or
iii: Interest or a dividend that does not have a New Zealand source; and
b: Derives a total of $200 or less of—
i: Gross income that is subject to the PAYE rules in relation to which the person's obligations under those rules are not met; and
ii: Gross income that is subject to the PAYE rules and to a student loan repayment deduction under sections 19 and 20 of the Student Loan Scheme Act 1992
iii: Income from employment from which the earner premium is not deducted correctly; and
iv: Interest, excluding interest for which a RWT deduction certificate did not have to be prepared under section 25(7) Schedule 14, clause 1(b) of the Income Tax Act 1994
v: Income from employment being extra emoluments from which tax has been withheld at a rate other than that specified in Schedule 19, clause 8(b) of the Income Tax Act 1994
vi: Income from employment being secondary earnings from which tax has been withheld at a rate other than that specified in Schedule 19, clause (5A) of the Income Tax Act 1994
vii: Interest or dividends, if the person is required to pay financial support in the income year under the Child Support Act 1991
viii: Interest or dividends, if the person has an IRD loan balance (as defined in section 2 of the Student Loan Scheme Act 1992 section 2 of the Student Loan Scheme Act 1992
ix: Salary or wages from employment as an election day worker, if the worker has used the EDW
x: Interest or a dividend that—
A: Does not have a New Zealand source; and
B: Was subject to a withholding tax at source; and
c: Does not receive income from employment from which a tax deduction is made and the amount of the tax deduction is determined in whole or in part by a special tax code certificate issued under section NC 14 of the Income Tax Act 1994
d: Is not issued a family certificate of entitlement for any part of the income year; and
e: Does not have a spouse who is issued with a family certificate of entitlement for any part of the income year; and
f: Or the spouse of the natural person, is not paid by the chief executive of the department for the time being responsible for the administration of the Social Security Act 1964 Part KD section KD 2 of the Income Tax Act 1994
g: Is a person who in an income year has a nil IRD loan balance on the last day of the year.
2: Subsection (1)
a: Is a non-resident; or
b: Is a provisional taxpayer; or
c: Is not a cash basis person; or
d: Received a withholding payment; or
e: Received interest or a dividend that did not have a New Zealand source and from which a withholding tax was not deducted at source; or
f: Received interest or dividends that—
i: Total more than $200; and
ii: Did not have a New Zealand source; and
iii: Had a withholding tax deducted at source; or
g: Received beneficiary income; or
h: Received gross income as a private domestic worker; or
i: Is required under section 44
j: Made a net loss, other than a net loss under section LB 2(3) of the Income Tax Act 1994
k: Has an available net loss; or
l: Died; or
m: Held a certificate of exemption under section NF 9 of the Income Tax Act 1994
n: Leaves New Zealand and contacts the Commissioner for an assessment to determine their income tax liablity for the year; or
o: Is a person who the Commissioner considers should furnish a return of income.
2: In section 33A(5) person natural person
3: Subsections (1) (2)
62: Electronic filing exemption for new businesses
1: After section 36C
36CA:
1: An employer who begins business after 1 April 1999 and who is required to furnish an employer monthly schedule electronically may furnish an employer monthly schedule on the form prescribed by the Commissioner for the first six months of business.
2: The first six months of business begins on the date on which the employer begins business.
2: Subsection (1)
63: Returns to annual balance date
1: In section 38(1) section 33A section 33A(1) or (5)
2: Subsection (1)
64: Returns by person claiming housekeeper or charitable rebates
1: Section 41A(3) (4)
3: The sum of the qualifying payments under section KC 4 of the Income Tax Act 1994 section KC 5 of the Income Tax Act 1994
4: If subsection (3)
2: Section 41A(6)
6: A taxpayer with a standard balance date or an early balance date may apply for a refund for an income year only in the 6 months from 1 April to 30 September (both dates inclusive) next following the end of the taxpayer's income year. Late balance date taxpayers may apply for a refund for an income year only in the 6 months beginning on the first day of the taxpayer's next accounting year.
6A: Despite subsection (1), the Commissioner must not refund a rebate unless an application complies with subsections (2) and (3).
3: Subsections (1) (2)
65: Notification required that taxpayer not subject to this Part
1: In section 80B(1) or received interest or dividends interest or dividends
2: Subsection (1)
66: Natural person to request income statement
1: After section 80C(1)
1A: Subsection (1) .
2: Subsection (1)
67: Particulars to be included in income statement
1: Section 80E(1)
1: An income statement issued under this Part must contain the information specified in subsection (2)
2: After section 80E(2)(e)
ea: For a person to whom a certificate of entitlement has been issued under section KD 5 of the Income Tax Act 1994 .
3: After section 80E(2)
3: Information required under subsection (2)(ea)
4: Subsections (1) to (3)
68: Taxpayer obligations and assessment on receipt of income statement
1: After section 80F(6)
6A: Subsection (6)
a: The taxpayer receives an income statement due to incorrect information held by the Commissioner; and
b: Section 33A(1)
c: The taxpayer has not requested an income statement.
2: Subsection (1)
69: Income statement deemed return
1: In section 80G(2) Except in sections 37 and 38 Except in section 37
2: Subsection (1)
70: Instalments of and due dates for provisional tax
1: In section 120K(4A)(c) section MB 5(11) section MB 5A
2: Section 120K(4B)
4B: A provisional taxpayer to whom subsection (4)
a: Is not liable for use of money interest under section 120D section MB 5 or section MB 5A
b: Is not entitled to use of money interest under section 120D section MB 5 or section MB 5A
4BA: Subsection (4B) section 120K(4B)
3: Subsection (1)
4: Subsection (2)
71: New section inserted
1: After section 120P
120PA: Applying foreign investor tax credit to earlier income year
If a taxpayer sets off a foreign investor tax credit against its income tax liability for an earlier income year under section LE (4)(b) of the Income Tax Act 1994
2: Subsection (1)
72: Obligation to pay tax where competent objection lodged
1: After section 128(4)
5: Part VII
6: If the competent objection or challenge relates to the 1996-97 or an earlier income year, interest must be calculated on deferrable or non-deferrable tax on and after the date that the period of deferral starts.
2: Subsection (1)
73: Obligation to pay tax during challenge
1: After section 138I(3)
4: Part VII
5: If the challenge relates to the 1996-97 or an earlier income year, interest must be calculated on deferrable or non-deferrable tax on and after the date that the period of deferral starts.
2: Subsection (1)
74: Non-electronic filing penalty
1: Section 139AA(2)
2: An employer is liable to a non-electronic filing penalty if the employer furnishes the employer monthly schedule in a format that is not prescribed.
2: Subsection (1)
75: Refund of tax paid in excess made by direct credit to bank account
1: After section 184A(5)
6: This section applies to the direct crediting of a type of tax once an Order in Council has been promulgated specifying the date from which the type of tax may be refunded by direct credit .
2: Subsection (1)
76: Tax type that may be direct credited to bank account
1: After section 184A
184B: The Governor-General may, by Order in Council, specify the date from which a type of tax may be refunded by direct credit under section 184A
2: Subsection (1)
3: Amendments to Goods and Services Tax Act 1985
77: Goods and Services Tax Act 1985
This Part amends the Goods and Services Tax Act 1985
78: Meaning of term
financial services
1: In section 3(2) life insurance contract Life insurance contract Schedule 1, Part 5 of the Accident Insurance Act 1998 .
2: Subsection (1)
79: Value of supply of goods and services
1: After section 10(16)
16A: Subsection (16) section 11(2A)
2: After section 10(17)
17A: Subsection (17) section 11(2A)
3: Subsections (1) (2)
80: Zero-rating
1: Section 11(2)(d)
d: The services are physically performed outside New Zealand or are the arranging of services that are physically performed outside New Zealand; or .
2: After section 11(2)
2A: Subsection (2)(e)
a: The performance of the services is, or it is reasonably foreseeable at the time the agreement is entered into that the performance of the services will be, received in New Zealand by another person (person B), including—
i: An employee of person A; or
ii: If person A is a company, a director of the company; and
b: It is reasonably foreseeable, at the time the agreement is entered into, that person B will not receive the performance of the services in the course of making taxable or exempt supplies.
2B: For the purpose of subsection (2)(e) and (2)(fa) outside New Zealand
3: Subsections (1) (2)
4: Amendments to Estate and Gift Duties Act 1968
81: Estate and Gift Duties Act 1968
This Part amends the Estate and Gift Duties Act 1968
82: New section inserted
1: After section 75C
75D: Exemption for dispositions by raspberry industry entities
1: This section applies upon the making of regulations to dissolve the New Zealand Raspberry Marketing Council, the Raspberry Marketing Export Authority and the District Raspberry Marketing Committees established under the Raspberry Marketing Regulations 1979
2: In this section, current grower District Committee grower Raspberry Marketing Authorities (Dissolution) Regulations 1999
3: When the Raspberry Marketing Authorities (Dissolution) Regulations 1999
4: When the Cold Storage Nelson Limited shares owned by the Nelson Raspberry Marketing Committee vest in Rubus Investments Nelson Limited, the vesting does not constitute a dutiable gift to Rubus Investments Nelson Limited.
2: Subsection (1) Raspberry Marketing Authorities (Dissolution) Regulations 1999
5: Amendments to
Income Tax Act 1976
83: Income Tax Act 1976 This Part amends the Income Tax Act 1976
84: Interpretation
1: This section applies to definitions in section 2
2: In the definition of portable New Zealand superannuation section 17 section 17, 17B
3: In the definition of portable veteran's pension section 17 section 17, 17B
4: The definition of state-owned enterprise State enterprise Fourteenth Schedule .
5: Subsections (2) (3)
6: Subsection (4)
85: Defining when 2 persons are associated persons
1: After section 8(2)
3: This section does not apply to a company that is or was—
a: A State enterprise; or
b: A Crown research institute; or
c: A Crown health enterprise; or
d: A member of the same group of companies as a company that meets any of paragraphs (a) to (c).
2: Subsection (1)
3: Despite subsection (2) (1) section 8
86: Interpretation—Voting and market value interests
1: In section 8B special corporate entity paragraph (c)
c: Any State enterprise: .
2: Subsection (1)
87: Voting interests
1: In section 8C(3)(a)(ii)
a: State-owned enterprise State enterprise
b: (including a voting interest deemed to arise under paragraph (d) rights derived from those shares and options
2: Subsection (1)(a)
3: Subsection (1)(b)
88: Market value interests
1: In section 8D(3)(a)(ii)
a: State-owned enterprise State enterprise
b: (including a market value interest deemed to arise under paragraph (d) rights derived from those shares and options
2: Subsection (1)(a)
3: Subsection (1)(b)
89: Profits or gains from land transactions
1: After section 67(3)
3A: Subsections (2) and (3)
a: A State enterprise; or
b: A Crown research institute; or
c: A Crown health enterprise; or
d: A member of the same group of companies as a company that meets any of paragraphs (a) to (c)
2: Subsection (1)
3: Despite subsection (2) (1) section 67
90: Associated persons
1: After section 214E(2)
3: This section does not apply to a company that is or was—
a: A State enterprise; or
b: A Crown research institute; or
c: A Crown health enterprise; or
d: A member of the same group of companies as a company that meets any of paragraphs (a) to (c)
2: Subsection (1)
3: Despite subsection (2) (1) section 214E
91: Definition of term
associated persons
1: Section 245B subsection (1)
2: This section does not apply to a company that is or was—
a: A State enterprise; or
b: A Crown research institute; or
c: A Crown health enterprise; or
d: A member of the same group of companies as a company that meets any of paragraphs (a) to (c)
2: Subsection (1)
3: Despite subsection (2) (1) section 245B
92: Schedule 14
1: In Schedule 14 State-Owned Enterprises State Enterprises
2: Subsection (1)
6: Amendments to Taxation (Accrual Rules and Other Remedial Matters) Act 1999
93: Taxation (Accrual Rules and Other Remedial Matters) Act 1999
1: This Part amends the Taxation (Accrual Rules and Other Remedial Matters) Act 1999
2: Section 55(36)(b)
3: Section 59(1)(c)
4: Section 62(1)(h)
5: Sections 106 109
6: Subsections (2) to (5)