Taxation (Remedial Provisions) Act 1996

1: Short Title
This Act may be cited as the Taxation (Remedial Provisions) Act 1996.
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Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004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Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004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: Certain pensions, benefits, and other compensation exempt
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004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Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004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: Exclusion from term dividends
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
6: Meaning of fringe benefit
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
7: Election whether fringe benefit or dividend
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
8: Expenditure incurred by superannuation funds
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
9: New sections added
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
10: Disposition of depreciable property
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
11: Election to treat short term trade credit as financial arrangement
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
12: Rules for calculating New Zealand group debt percentage
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
13: Mode of elections
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
14: Benefit given to associated person of employee
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
15: Cross-border arrangements between associated persons
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
16: Definition of specified exemption
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
17: Low income rebate
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004 Section Coming into Force on 1 April 1997 This heading was repealed 2 September 1996 34(1) Taxation (Tax Credits, Trading Stock, and Other Remedial Matters) Act 1998
18: Low income rebate
Subsection (3) amended 2 September 1996 34(2) Taxation (Tax Credits, Trading Stock, and Other Remedial Matters) Act 1998 by substituting the expression 1998 1997 Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004 Section Coming into Force on 1 April 1998 This heading was repealed 2 September 1996 34(3) Taxation (Tax Credits, Trading Stock, and Other Remedial Matters) Act 1998
19: Low income rebate
Subsection (3) amended 2 September 1996 34(4) Taxation (Tax Credits, Trading Stock, and Other Remedial Matters) Act 1998 by substituting the expression 1999 1998 Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
20: Special rules for holding companies
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
21: Limits on refunds of tax
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
22: Refund of income tax not to exceed amount of credit balance
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
23: Debits arising to imputation credit account
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
24: Consequential changes
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
25: Non-resident withholding tax imposed
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
26: Non-resident withholding tax on dividends not paid in money
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
27: Liability to make deduction in respect of foreign withholding payment dividend
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
28: Refund for overpayment and to company in loss
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
29: Dividend withholding payments and consolidated groups
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
30: Definitions
Subsection (1)(j) (k) repealed 12 October 2001 77 New Zealand Superannuation Act 2001 Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
31: References to income year in particular provisions
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
32: References to particular regimes in former Act, etc
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
2: Amendments to Income Tax Act 1976
33: Income Tax Act 1976
The Income Tax Act 1976 section YB 3 of the Income Tax Act 1994
34: Interpretation
1: In section 2
a: The following is added after the definition of petroleum mining company Portable guaranteed retirement income section 17 or section 19 of the Social Welfare (Transitional Provisions) Act 1990 :
b: The following is added after the definition of portable guaranteed retirement income Portable national superannuation section 17 or section 19 of the Social Welfare (Transitional Provisions) Act 1990 :
c: In the definition of portable New Zealand superannuation or section 19 section 17
d: In the definition of portable veteran's pension or section 19 section 17
e: In the definition of lease , and for the purposes of sections 107A, 108 to 108O, 111, 113A and 117 created
2: Subsection (1)(a) and (d) are deemed to have come into force on 1 April 1990.
3: Subsection (1)(b) is deemed to have come into force on 1 April 1992.
4: Subsection (1)(c) is deemed to have come into force on 1 April 1994.
5: Subsection (1)(e) is deemed to apply to the tax on the income derived in the 1993–94 or 1994–95 income years.
35: Annual depreciation deduction
1: After section 108(1)
1A: For the purposes of sections 107A, 108 to 108O, 111, 113A, and 117 of this Act
a: The lessee incurs expenditure in erecting the fixture or making the improvement during that period; and
b: The fixture or improvement is the property of the lessor.
1B: For the purposes of sections 107A, 108 to 108O, 111, 113A, and 117 of this Act
a: The lessor is deemed not to own the fixture or improvement for the period during which the land is leased to the lessee; and
b: The lessor is deemed not to own the fixture or improvement after that period except where the lessor incurs a cost in respect of it at the end of that period.
1C: For the purposes of subsection (1B)
1D: For the purposes of sections 107A, 108 to 108O, 111, 113A, and 117
a: The transferee pays an amount to the lessee in respect of a fixture or improvement erected by the lessee or a preceding lessee; and
b: That fixture or improvement has been depreciated by the lessee,— the transferee is deemed to own the fixture or improvement.
1E: For the purposes of sections 107A, 108 to 108O, 111, 113A, and 117 of this Act
a: The purchaser enters into an unconditional contract to purchase the property; and
b: The contract is subject to the Sale of Goods Act 1908
c: Title to the property does not pass until the purchase price is paid in full; and
d: The purchaser takes possession of the property before title to that property passes.
1F: Where subsection (1E)
a: The purchaser enters into the contract; and
b: The purchaser takes possession of the property— until title to the property passes to the purchaser or the property is repossessed by the vendor.
1G: Subsection (1E) and subsection (1F) .
2: Section 108(1B) of the Income Tax Act 1976
3: Subject to subsection (2), this section is deemed to apply to the tax on income derived in the 1993–94 or 1994–95 income year.
36: Gain or loss from disposition of depreciable property
1: After section 117(10)(a)(vi)
vii: Cessation of deemed ownership of a fixture or improvement to which section 108(1A) .
2: After section 117(8)
8A: Where a purchaser has purchased depreciable property to which section 108(1E) of this Act
8B: In subsection (8A) net amount paid .
3: This section is deemed to apply with respect to the tax on income derived in the 1993–94 or 1994–95 income year.
37: Deductions where superannuation fund invests in another fund
1: After section 228(2C)
2D: Where the first superannuation fund has incurred expenditure of the type referred to in subsection (2C) subsection (2C)(d)
2E: If the balance of assessable income of the second superannuation fund in that later income year extends, in whole or in part, to the expenditure referred to in subsection (2D)
2F: If the balance of the assessable income of the second superannuation fund is not sufficient in that later income year for all of the expenditure referred to in subsection (2D) remaining expenditure
2G: If expenditure incurred in one or more income years is carried forward under subsection (2D) or subsection (2F)
2H: Subsection (2C)(d) and (e) subsection (2E) or (2F)
2I: Subsections (2D), (2E), (2F), (2G) and (2H)
a: The first superannuation fund has funds invested in all or some of the second superannuation fund when the first superannuation fund incurs expenditure of the type referred to in subsection (2C)
b: The first superannuation fund continues to have funds invested in all or some of the second superannuation fund when the expenditure of the first superannuation fund is deducted from the assessable income of the second superannuation fund. .
2: This section is deemed to have come into force on 1 April 1990.
38: Definition of specified exemption
1: In section 336E(1)(d) to a married person under clause 1(d) of the First Schedule to the Social Welfare (Transitional Provisions) Act 1990 rate payable
2: In section 336BA(1)(c) to a married person under clause 1(d) of the First Schedule to the Social Welfare (Transitional Provisions) Act 1990 rate payable
3: Subsection (1) is deemed to apply to income years commencing on or after 1 April 1992.
4: Subsection (2) is deemed to apply to the income year commencing on 1 April 1991.
3: Amendments to Tax Administration Act 1994
39: Tax Administration Act 1994
The Tax Administration Act 1994
40: Commencement
1: This Part, except section 41
2: Section 41
41: Records of specified charitable, benevolent, philanthropic, or cultural bodies
Section 32
32:
1: All gift-exempt bodies must keep in New Zealand sufficient records in the English language to enable the Commissioner to determine both the sources of donations made to them and the application, within New Zealand or within a country or territory outside New Zealand, of their funds.
2: Notwithstanding subsection (1), the Commissioner, in writing, may authorise a gift-exempt body to keep those records in a language other than English if the gift-exempt body applies in writing to the Commissioner for the authorisation. .
42: Certain rights of objection not conferred
In section 125
a: In paragraph (d), section CB 5(g) section CB 5(1)(g)
b: Paragraph (j)(iii) is replaced by:
iii: Any of sections CF 6, HK 7, HK 11, HK 18, HK 24, HK 26, IB 1, LC 1 to LC 3, LC 7, LC 13 to LC 15, MD 1, and OB 2 of the Income Tax Act 1994 sections 33, 89, and 184 of the Tax Administration Act 1994 :
c: In paragraph (j)(iv), 106 to 111 106, 107, 109 to 111
43: Commissioner and Department
Section 228
228: The person who, on 1 April 1995, holds office as Commissioner of Inland Revenue is deemed to have been appointed Commissioner of Inland Revenue under section 6A .
44: Consequential changes
1: In section 81(1)(b) or a Deputy Commissioner, or a Regional Controller, or a District Commissioner, or an officer of the Department,
2: Wherever they occur in section 110(1) a Regional Controller or a District Commissioner Regional Controller or District Commissioner an officer of the Department
3: Wherever they occur in section 118 a District Commissioner District Commissioner an officer of the Department
4: Wherever it occurs in section 229(4) a Deputy Commissioner of Inland Revenue an officer of the Department
5: In section 229(6) a District Commissioner of Inland Revenue an officer of the Department
4: Amendment to Student Loan Scheme Act 1992
45: Part to be read with Student Loan Scheme Act 1992
1: This Part of this Act shall be read together with and deemed part of the Student Loan Scheme Act 1992
2: This Part comes into force on the day on which this Act receives the Royal assent.
46: Special deduction rates
Section 21
1: If a borrower wishes to vary the standard deduction rate, the borrower may apply by notice in writing to the Commissioner for the issue of a special repayment deduction rate certificate that takes into account the greater of—
a: The borrower's estimated repayment obligation for the income year; or
b: Some other amount required by the borrower. .
5: Amendments to Goods and Services Tax Amendment Act (No 2) 1995
47: Goods and Services Tax Amendment Act (No 2) 1995
The Goods and Services Tax Amendment Act (No 2) 1995
48: Interpretation
1: Section 2(5) section 2(1)
5: Subsection (2) of this section does not apply where—
a: There is a supply by way of sale under an unconditional contract entered into before 21 June 1995 or a conditional contract entered into before 21 June 1995 that became unconditional before that date; and
b: No return was furnished on or before 21 June 1995 for the taxable period in which payment for the supply was made. .
2: This section is deemed to have come into force on 21 June 1995.
49: Meaning of term supply
1: Section 3(3) section 5
3: Notwithstanding subsection (2)(b)(i) of this section, this section does not apply where—
a: There is a supply by way of sale under an unconditional contract entered into before 11 August 1995 or a conditional contract entered into before 11 August 1995 that became unconditional before that date; and
b: No return was furnished on or before 11 August 1995 for the taxable period in which payment was made. .
2: This section is deemed to have come into force on 11 August 1995.
6: Amendments to Goods and Services Tax Act 1985
Part 6 repealed 1 April 2005 YA 2 Income Tax Act 2004
50: Goods and Services Tax Act 1985
Part 6 repealed 1 April 2005 YA 2 Income Tax Act 2004
51: District Commissioner
Part 6 repealed 1 April 2005 YA 2 Income Tax Act 2004
52: Meaning of term supply
Part 6 repealed 1 April 2005 YA 2 Income Tax Act 2004
53: Imposition of goods and services tax on imports
Part 6 repealed 1 April 2005 YA 2 Income Tax Act 2004
54: Consequentials
Part 6 repealed 1 April 2005 YA 2 Income Tax Act 2004
7: Consequential amendments to Taxation (Core Provisions) Act 1996
55: Taxation (Core Provisions) Act 1996
The Taxation (Core Provisions) Act 1996
56: Commencement
This Part comes into force on 1 April 1997.
57: Expenditure incurred by superannuation funds
In section 100 DI 3(2)(d) does not exceed the following amount: does not exceed the following amount (referred to in this section as the deduction balance
58: Expenditure incurred by superannuation funds
In section 100 section DI 3(2)
3: Where the first superannuation fund has incurred expenditure of the type referred to in subsection (2) and the deduction balance in the income year in which the expenditure is incurred does not exceed the expenditure incurred, the expenditure not so deducted by the second superannuation fund in that year may be carried forward by the first superannuation fund to the succeeding income year.
4: If the deduction balance in the succeeding income year extends, in whole or in part, to the expenditure carried forward under subsection (3), the expenditure may, at the election of the first superannuation fund, be treated as if it were expenditure incurred by the second superannuation fund in gaining or producing gross income in that later income year to the extent of the deduction balance.
5: When the deduction balance in a succeeding income year is less than the expenditure carried forward under subsection (3), the expenditure not deducted (in this subsection referred to as the remaining expenditure
6: When the deduction balance extends, in whole or in part, to the remaining expenditure, the remaining expenditure (or the extent to which the deduction balance extends in the succeeding income year) may at the election of the first superannuation fund be treated as if it is expenditure incurred by the second superannuation fund in gaining or producing gross income in the income year to which the election refers.
7: If expenditure incurred in one or more income years is carried forward under subsection (3) or subsection (5) and an election is made by the first superannuation fund in a later income year to treat that expenditure in the manner referred to in that subsection, the expenditure must be deducted sequentially in accordance with the income years in which that expenditure was incurred by the first superannuation fund.
8: Subsection (2)(d) and (e) apply if the first superannuation fund makes an election under subsection (4), (5), or (6).
9: Subsections (3) to (8)
a: The first superannuation fund has funds invested in all or part of the second superannuation fund when the first superannuation fund incurs expenditure of the type referred to in subsection (2); and
b: The first superannuation fund has at all times between the time referred to in paragraph (a) and the time when the expenditure of the first superannuation fund is deducted from the gross income of the second superannuation fund its funds invested in whole or in part in the second superannuation fund. .
59: Non-resident withholding tax imposed
In section 375, section NG 2(1)(a)
a: At the rate of 30% of so much of that non-resident withholding income that consists of dividends, other than investment society dividends or supplementary dividends payable as a result of Part LE .
60: Definitions
In Schedule 1, paragraph (a)(i) of the definition of expenditure on account of an employee
i: The whole or part of a payment that is exempt income under section CB 12(1)(a) or (2) .