Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022

1: Title
This Act is the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022.
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: Sections 47 51 53(1) and (3) 54(2) and (3) 77 97(1), (2), (4), (5), (6), (7), (8), (9), (10), and (11) 109 110 115 136 171(37), (41), and (42) 174
3: Sections 5(2) and (3) 6 50 96 113 171(10)
4: Section 8(2)
5: Section 80
6: Section 79
7: Section 65
8: Section 171(8) and (48)
9: Section 102
10: Sections 53(2) 135 153 163
11: Sections 22 164
12: Sections 8(1) 97(5)
13: Section 178(2)
14: Sections 105 106 114 171(31)
15: Sections 84 171(25) and (49)
16: Section 186
17: Sections 60 69 78 97 108 132 133 152 168 170 177 180(8) 191 204 213(3) and (4)
18: Section 180(5)
19: Sections 8(4) 25
20: Section 205
21: Sections 76 81 82 87 98 99 100 101 111 118 119 120 121 122 123 124 125 126 127 131 161 171(27) and (50) 189 195 196 197 232
22: Section 128
23: Section 178(3)
24: Section 134(2), (3), and (4)
25: Section 58
26: Section 227(1)﻿(a) and (4)
27: Section 116
28: Section 180(6)
29: Sections 48 49 59 61 62 63 64 66 70 71 72 73 74 75 103 112 171(2), (3), (4), (5), (6), (7), (9), (12), (14), (15)﻿(b), (17), (19), (20), (21), (22), (23), (24), (26), (28), (29), (32), (33), (34), (35), (36), (40), (43), (44), (45), (46), (47), and (51) 176 193
30: Sections 171(30) 256 267
31: Sections 134(1) 155 156 157 158 159 175 178(4) 188 242 243(1), (2), and (3)
32: Sections 247 248 249 250 263
33: Section 173
34: Sections 237 238 239 240 241
35: Section 226
36: Sections 194 269
37: Sections 52 55 56 57 68 86 88 89 90 91 92 93 94 95 104 107 147 148 151 154 160 171(15)﻿(a), (16), (18), and (38) 180(7) 190 192 211 212 213(1) 228 234 235 236 244
38: Sections 5(4) 12 19 21(1), (3), (4), and (9) 24 26(4) and (6) 27(4) and (6) 28 29 30 31(3), (6), (8), (9), (10), and (12) 32 33 34 36 37(6), (7), and (8) 38(2), (3), and (5) 39 40 42 43 44 219(2) and (7) 220(2), (3), and (5)
39: Section 231(2)
40: An Order in Council made under this section is secondary legislation ( see Part 3 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)﻿(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act.
1: Annual rates of income tax
3: Annual rates of income tax for 2021–22 tax year
Income tax imposed by section BB 1 schedule 1
2: Amendments to Goods and Services Tax Act 1985
4: Amendments to Goods and Services Tax Act 1985
This Part amends the Goods and Services Tax Act 1985 2022-03-30 Goods and Services Tax Act 1985 (except as sections as below) 2023-04-01 Goods and Services Tax Act 1985 See section 2(38): Excludes Sections 5(4), 12, 19, 21(1), (3), (4), and (9), 24, 26(4) and (6), 27(4) and (6), 28, 29, 30, 31(3), (6), (8), (9), (10), and (12), 32, 33, 34, 36, 37(6), (7), and (8), 38(2), (3), and (5), 39, 40, 42, 43, 44
5: Section 2 amended (Interpretation)
1: In section 2(1)
a: insert, in appropriate alphabetical order: GST group
b: insert, in appropriate alphabetical order: issuing member section 55 or 55B
c: insert, in appropriate alphabetical order: member supply
d: replace the definition of Pharmac Pharmac
e: replace the definition of Pharmac agreement Pharmac agreement
f: replace the definition of pharmaceutical pharmaceutical
g: replace the definition of supplier supplier
a: for a supply to which paragraph (b) does not apply, the person who makes the supply; or
b: for a supply that is subject to a provision in Part 9, the person who is treated by the provision as making the supply
h: insert, in appropriate alphabetical order: supplier group section 55B
2: In section 2(1)
a: insert, in appropriate alphabetical order: cryptoasset
a: a database that is secured cryptographically and contains ledgers, recording transactions and contracts involving digital representations of value, that are maintained in decentralised form and shared across different locations and persons; or
b: another application of the same technology performing an equivalent function
b: insert, in appropriate alphabetical order: cryptocurrency
c: insert, in appropriate alphabetical order: non-fungible token
d: replace the definition of services services
3: In section 2(1) goods money or money, cryptocurrency, or
4: In section 2(1)
a: in the definition of issuing member tax invoice, credit note, or debit note taxable supply information or supply correction information
b: insert, in appropriate alphabetical order: recipient details
a: the name of the recipient; and
b: one or more of the following items of information that are relevant
i: an address of a physical location for the person such as a mailing or billing address:
ii: a telephone number:
iii: an email address:
iv: a trading name other than the name of the recipient:
v: a New Zealand business number:
vi: a Uniform Resource Locator address for a web site
c: insert, in appropriate alphabetical order: supply correction information section 19E
d: in the definition of supplier group tax invoice, credit note, or debit note taxable supply information or supply correction information
e: insert, in appropriate alphabetical order: supply information
a: the name and registration number of the supplier; and
b: the date of the invoice or, where no invoice is issued, the time of supply
c: a description of the goods or services; and
d: the amount of the consideration for the supply
f: insert, in appropriate alphabetical order: taxable supply information section 19E
5: Subsection (4) applies for taxable periods starting on or after 1 April 2023. Section 5(4)﻿(b) amended 31 March 2023 section 215(1) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 5(4)﻿(e) amended 31 March 2023 section 215(2) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023
6: Section 3 amended (Meaning of term financial service)
1: In section 3(1)﻿(k)﻿(iii) money or cryptocurrency
2: After section 3(1)﻿(kaa), insert:
kaab: the provision or transfer of ownership of an option over cryptocurrency:
3: After section 3(1)﻿(l)
lb: arranging the provision, or transfer, of ownership of cryptocurrency:
7: Section 3A amended (Meaning of input tax)
1: After section 3A(2)﻿(a)
ab: the supply is not of goods that—
i: were acquired before 1 October 1986 by the registered person or by a person who, when acquiring the goods, is an associated person of the registered person; and
ii: have not been owned, on or after 1 October 1986, by a person who, at the time, is not the registered person and not an associated person of the registered person; and
2: Replace section 3A(3)﻿(a)﻿(i)
i: for goods received by the supplier from a person who, at the time of the receipt, is not an associated person, the tax fraction of the purchase price for the supplier; and
ib: for goods received by the supplier from a person who, at the time of the receipt, is an associated person, the tax fraction of the purchase price for the most recent acquisition of the supply by a person who, at the time of the acquisition, is an associated person from a person who, at the time of the acquisition, is not an associated person; and
3: Subsections (1) and (2) apply for a supply of secondhand goods—
a: made in a taxable period starting on or after the day on which the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022
b: made under an agreement entered after 8 September 2021 and paid for on or after the start of the first taxable period starting on or after the day on which the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022
8: Section 5 amended (Meaning of term supply)
1: In section 5(6AB) the Commission Fire and Emergency New Zealand
2: In section 5(6E)﻿(b)﻿(ii) paragraphs (c) and (d) paragraph (a)
3: In section 5(8A) member of the body corporate , other than as reimbursement for a payment by the body corporate of an amount that would, if not charged to the body corporate, be payable by the member for an exempt supply to the member,
4: Repeal section 5(18)
5: In section 5(23)
a: replace supply of goods taxable supply of goods
b: replace on the date of settlement on the date on which the error is found
9: Section 6 amended (Meaning of term taxable activity)
In section 6(3)﻿(c)﻿(iii) statutory
10: Section 11 amended (Zero-rating of goods)
Replace section 11(1)﻿(eb)﻿(i)
i: are supplied to a recipient; and
11: Section 11A amended (Zero-rating of services)
In section 11A(1)﻿(c) to the extent that the services are supplied by the same supplier as part of the supply of services to the extent that the services are part of a supply of services, relating to the same goods,
12: New section 12C inserted (Information for importation of goods including distantly taxable goods)
1: After section 12B
12C: Information for importation of goods including distantly taxable goods
A registered person who makes a supply of distantly taxable goods, on which tax at a rate greater than 0% is charged under section 8(1), must take reasonable steps to ensure that the New Zealand Customs Service has available, by the time of the importation of the goods,—
a: the name and registration number of the registered person:
b: information indicating the items included in the supply, or imported with the supply, for which the amount of tax included in the price of the supply is more than zero:
c: information indicating the items included in the supply, or imported with the supply, for which the amount of tax included in the price of the supply is zero:
d: information that is acceptable to the Commissioner in substitution for information referred to in paragraphs (a) to (c).
2: Subsection (1) applies for taxable periods starting on or after 1 April 2023.
13: Section 15 amended (Taxable periods)
1: In section 15(1) following or a period described in section 15E(2)
2: In section 15(5)﻿(a) last day of a month or is a period of approximately 12 months consisting of taxable periods approved for the person and described in section 15E(2)
3: Subsections (1) and (2) apply for taxable periods starting on or after the day on which this Act receives the Royal assent.
14: Section 15B amended (Taxable periods aligned with balance dates)
1: After section 15B(4)
4B: For the purposes of subsection (4), the GST cycle of a person with a taxable period described in section 15E(2)
2: Subsection (1) applies for taxable periods starting on or after the day on which this Act receives the Royal assent.
15: Section 15C amended (Changes in taxable periods)
1: In section 15C(1) 6-month period 6-month period, or to an equivalent period described in section 15E(2)
2: In section 15C(3) 2-month period 2-month period, or to an equivalent period described in section 15E(2)
3: In section 15C(3B) 1-month period 1-month period, or to an equivalent period described in section 15E(2)
4: In section 15C(3C) 2-month period 2-month period, or to an equivalent period described in section 15E(2)
5: Subsections (1), (2), (3), and (4) apply for taxable periods starting on or after the day on which this Act receives the Royal assent.
16: Section 15D amended (When change in taxable period takes effect)
1: In section 15D(1)﻿(a) is set to a period consisting of calendar months
2: After section 15D(1)﻿(a)
ab: applies under section 15C to change the basis on which the person’s taxable period is set to a period described in section 15E(2)
3: In section 15D(2) in taxable period under subsection (1)﻿(a) or (b)
4: After section 15D(2)
2B: A change in taxable period under subsection (1)﻿(ab) takes effect at—
a: the end of the taxable period in which the person applies; or
b: the end of a later taxable period nominated by the registered person and approved by the Commissioner.
5: After section 15D(3)
3B: A change in taxable period continues to have effect until—
a: the Commissioner withdraws approval for the basis on which the person’s taxable period is set because the Commissioner considers that the person does not have good commercial reasons for the basis:
b: the person chooses, or is required, to have the person’s taxable period set on a different basis.
6: Subsections (1), (2), (3), (4), and (5) apply for taxable periods starting on or after the day on which this Act receives the Royal assent.
17: Section 15E amended (Meaning of end of taxable period)
1: Replace section 15E(2)
2: Despite subsection (1), a registered person may apply under section 15C to the Commissioner for approval under section 15EB
a: equivalent to a 1-month period and has a last day that is an approved date of the month; or
b: equivalent to a 1-month period and has a last day that is an approved day of the fourth week in each taxable period; or
c: equivalent to a 2-month period and has a last day that is an approved date of the second month in each taxable period; or
d: equivalent to a 2-month period and has a last day that is an approved day of the eighth week in each taxable period; or
e: equivalent to a 6-month period and has a last day that is an approved date not more than 7 days before or after the last day of the sixth month in each taxable period; or
f: equivalent to a 6-month period and has a last day that is an approved day of the week not more than 7 days before or after the last day of the sixth month in each taxable period.
2B: If a registered person has a taxable period with an approved last day or date that is not the last day of the month, the approved day or date for each taxable period and the end of the month to which the day or date is treated as corresponding for the purposes of the Act are determined using the following rules:
a: if an approved day or date for a month is before or on the fifteenth day of the month, the approved day or date is treated as corresponding to the end of the preceding month; and
b: if an approved day or date for a month is after the fifteenth day of the month, the approved day or date is treated as corresponding to the end of the month; and
c: successive taxable periods end on successive approved days or dates, unless subsection (2C) applies.
2C: A taxable period that starts after an approved day (the change day
a: the change day is treated under subsection (2B) as corresponding to the end of the month of the change day; and
b: the first approved day after the change day is treated under subsection (2B) as corresponding to the end of the month of the change day.
2: Subsection (1) applies for taxable periods starting on or after the day on which this Act receives the Royal assent.
18: New section 15EB inserted (Approval of taxable period not consisting of whole calendar months)
1: After section 15E
15EB: Approval of taxable period not consisting of whole calendar months
1: The Commissioner may approve under section 15C an end date for the taxable period of a registered person that is not the last day of the month if the Commissioner is satisfied that there are good commercial reasons for the registered person’s chosen date.
2: The Commissioner may approve under section 15C a day of the week as the last day for the taxable period of a registered person if the Commissioner is satisfied that—
a: the use of the day requested would improve the alignment of the registered person’s taxable periods with the registered person’s accounting systems; and
b: if the registered person is requesting a last day that is not within 7 days of the end of the month, the registered person’s accounting systems do not allow the use of a last day within 7 days of the end of the month.
3: If a registered person receives approval under subsection (1) or (2) for a taxable period (the new period old period
a: the last old period for which the registered person makes a return must end on or before the day that precedes, by the length of a new period, the first day or date approved for the new period; and
b: the first new period for which the registered person makes a return begins after the end of the last old period referred to in paragraph (a).
2: Subsection (1) applies for taxable periods starting on or after the day on which this Act receives the Royal assent.
19: New cross-headings and sections 19E to 19Q inserted
1: After section 19D Records of supplies
19E: Definitions of types of record
1: Supply correction information
a: the name and the registration number of the supplier; and
b: information identifying the taxable supply information; and
c: the date of the supply correction information; and
d: the correction to the taxable supply information, including, if relevant, a correction to the amount of tax charged for the supply.
2: Taxable supply information
a: for a supply that is not referred to in paragraphs (d) to (g) and the consideration in money or money’s worth for the supply
i: the name and registration number of the supplier; and
ii: recipient details for the recipient; and
iii:
iv: the date of the invoice, or where no invoice is issued, the time of supply
v: a description of the goods or services; and
vi: if the amount of tax charged is the tax fraction of the consideration for the supply, the amount of the consideration for the supply and a statement that the amount includes a charge in respect of tax; and
vii: if subparagraph (vi) does not apply, the total amount of tax charged for the supply, the consideration for the supply excluding the tax, and the consideration for the supply including the tax:
b: for a supply that is not referred to in paragraphs (d) to (g) and the consideration in money or money’s worth for the supply exceeds $200 and does not exceed $1,000,—
i: the name and registration number of the supplier; and
ii: the date of the invoice or, where no invoice is issued, the time of supply; and
iii: a description of the goods or services; and
iv: if the amount of tax charged is the tax fraction of the consideration for the supply, the amount of the consideration for the supply and a statement that the amount includes a charge in respect of tax; and
v: if subparagraph (iv) does not apply, the total amount of tax charged for the supply, the consideration for the supply excluding the tax, and the consideration for the supply including the tax:
c: for a supply that is not referred to in paragraphs (d) to (g) and the consideration in money or money’s worth for the supply
d: for a supply referred to in section 19G
e: for a supply referred to in section 19H
f: for a supply referred to in section 19L
g: for a supply referred to in section 19M
19F: Records of supplies
1: A registered person who makes a supply of goods or services, or who receives a supply of goods or services for the purposes of carrying on a taxable activity, must have a record of the taxable supply information and supply correction information for the supply.
2: Despite subsection (1), a registered person is not required to keep a record of the GST registration number of the supplier if the amount of consideration for the supply is $200 or less.
19G: Records of imported supplies received by registered person
1: A registered person who receives a supply of goods or services that is treated by section 8(4B) as being made in New Zealand, or who is required to account for output tax under section 20(3JC), must meet the requirements of subsection (2) for a record of the supply.
2: The person must have a record of the supply showing—
a: the name and address of the supplier:
b: the date of the invoice or, where no invoice is issued, the time of supply:
c: a description of the goods or services supplied:
d: the consideration for the supply:
e:
f: the amount of the consideration for the supply that the registered person has treated as not affecting the value of the supply in reliance on section 10(15C)﻿(a):
g: the amount of the consideration for the supply that the registered person has treated as not affecting the value of the supply in reliance on section 10(15C)﻿(b).
19H: Records of secondhand goods received by registered person
1: This section applies when a registered person—
a: purchases a supply of secondhand goods, that is not a taxable supply, for more than $200; and
b: claims an input tax deduction in respect of the supply.
2: The person must have a record of the supply showing—
a: the name and address of the supplier; and
b: the date on which the secondhand goods were supplied; and
c: a description of the secondhand goods; and
d: the quantity or volume of the secondhand goods; and
e: the consideration for the supply.
3:
19I: Records of supplies to nominated recipients
A person who is nominated to receive a supply of goods under a contract to which section 60B(3), (4), and (6) apply, and to which the person is not a party, must have a record of the supply showing—
a: the name and address of the supplier; and
b: the date on which payment for the supply is made; and
c: a description of the goods; and
d: the consideration for the supply.
19J: Records of supplies by members of GST group or supplier group
Where taxable supply information or supply correction information has been issued in respect of a supply by an active member of a GST group under section 55(1AM) section 55B
a: the name of the active member or supplying member; and
b: the address of the active member or supplying member; and
c: the registration number of the active member or supplying member, if any. Supply information and supply correction information
19K: Taxable supply information: supplies by registered person
1: A registered person who makes a taxable supply to another registered person must provide the recipient with taxable supply information for the supply within 28 days of a request for the taxable supply information.
2: Subsection (1) is overridden by subsections (4), (7), and (10) and section 19L
3: A registered person who makes a taxable supply to a person other than a registered person must provide the recipient with taxable supply information for the supply within 28 days of a request for the taxable supply information.
4: A registered person who has a taxable supply from another registered person must provide the supplier with taxable supply information for the supply if—
a: the recipient and supplier agree that—
i: the supplier will not issue taxable supply information under subsection (1) for taxable supplies by the supplier to the recipient to which the agreement relates
ii: the recipient will issue taxable supply information, for each taxable supply by the supplier to the recipient to which the agreement relates
b: the recipient and supplier record the reasons for entering the agreement if the terms of the agreement are not part of the normal terms of business between the recipient and supplier; and
c: the Commissioner does not, before the supply, invalidate the agreement because the Commissioner considers that the recipient and the supplier have failed to comply with the agreement or with paragraph (b).
5: A registered person who provides taxable supply information under subsection (4) for a taxable supply must provide the supplier with taxable supply information for the supply within 28 days of the request for the taxable supply information, or by an alternative date agreed by the supplier and recipient.
6: If a supply of goods made under the exercise of a power is treated under section 5(2) as being a taxable supply of goods made by a person, the person who exercises the power must—
a: issue taxable supply information under subsection (1) or (3) for the person treated as being the supplier, as if the supplier were a registered person; and
b: if the supplier is not a registered person, include the supplier’s tax file number in the information instead of a registration number.
7: A supplier is not required to provide taxable supply information under subsection (1) or (3) for a taxable supply if subsection (8) does not apply and 1 or more of—
a: the amount of consideration for the supply does not exceed an amount (the threshold amount
b: the supplier is a non-resident supplier who makes a supply of distantly taxable goods to which section 8(3)﻿(ab) applies:
c: the supplier is a non-resident supplier who makes a supply of remote services to which section 8(3)﻿(c) applies.
8: A supplier is required to provide taxable supply information under subsection (1) or (3) for a taxable supply if section 8(4F) applies to treat the supply as being made in New Zealand.
9: A non-resident supplier who makes a supply of distantly taxable goods to which section 8(3)﻿(ab) applies or of remote services to which section 8(3)﻿(c) applies may choose to provide taxable supply information for the supply to a recipient of the supply if—
a: the supply is not of a contract of insurance; and
b: the supply of goods or services was incorrectly treated—
i: under section 8(4D) or (4E) as being made in New Zealand when the supply should have been treated as being made outside New Zealand; or
ii: under section 11A(1)﻿(x) as not being zero-rated when the supply should have been zero-rated; and
c: the value of the supply, in New Zealand currency as at the time of the supply, does not exceed $1,000; and
d: the recipient either or both—
i: notifies the supplier that the recipient is a registered person:
ii: provides the supplier with the registration number or New Zealand business number of the recipient.
10: Where the Commissioner is satisfied that there are or will be sufficient records available to establish the particulars of any supply or class of supplies, and that it would be impractical to require that taxable supply information be provided under this section, the Commissioner may determine that, for a supplier or a class of suppliers, subject to any conditions that the Commissioner may consider necessary,—
a: any 1 or more of the particulars specified in section 19E(2)
b: taxable supply information is not required to be provided.
19L: Taxable supply information: supplies by member of GST group or supplier group
1: Taxable supply information for a member supply made by an active member of a GST group under section 55
a: either—
i: the name and registration number of the supplier; or
ii: the name and registration number of the representative member of the GST group; and
b: the other information that would be required if the supplier were not a member of a GST group.
2: Taxable supply information for a member supply made by a supplying member of a supplier group under section 55B
a: either—
i: the name and registration number of the supplier; or
ii: the name and registration number of the issuing member for the supplier group; and
b: the other information that would be required if the supplier were not a member of a supplier group.
3: Taxable supply information for a member supply made by an active member of a GST group is treated as being provided by the issuing member for the GST group or by the representative member if the GST group does not have an issuing member.
4: Taxable supply information for a member supply made by a supplying member of a supplier group is treated as being provided by the issuing member for the supplier group.
19M: Taxable supply information: goods included in supplies of distantly taxable goods
1: A registered person who makes a supply of distantly taxable goods at a price that includes tax under section 8(1) at a rate of more than zero must provide to the recipient of the supply, at the time of the supply, information for the goods in the supply and for other goods imported with the supply that contains the particulars given by subsections (2) and (3) or alternative particulars acceptable to the Commissioner.
2: The taxable supply information required by subsection (1) is—
a: the taxable supply information that would be required if the goods supplied were not distantly taxable goods and not imported with distantly taxable goods:
b: the date upon which the receipt is issued:
c: information indicating the items for which the amount of tax included is more than zero:
d: information indicating the items for which the amount of tax included is zero.
3: The consideration for the goods may be expressed in the currency of the consideration received by the supplier.
4: A registered person who omits to issue taxable supply information for a supply as required by subsection (1) and is requested by the recipient of the supply to provide taxable supply information for the supply must provide the information within 10 working days after the request.
19N: Supply correction information
1: This section applies where a registered person has previously issued taxable supply information that includes an inaccuracy.
2: Where a registered person has provided to a person (the recipient
3: A registered person is not required to provide supply correction information under subsection (2) for a supply if—
a: the tax shown in the taxable supply information for the supply exceeds the tax charged on the supply; and
b: the excess arises as a result of the recipient’s accepting a discount offered by the supplier—
i: for prompt payment, and the terms of the prompt payment discount offer are stated in the taxable supply information; or
ii: by agreement, and, if the terms of the agreement are not part of the usual business terms between the recipient and the supplier, the terms of the agreement are recorded by the recipient and supplier.
4: A registered person is not required to provide supply correction information under subsection (2) for a supply because part of the consideration shown in the taxable supply information for the supply has been rebated under a Pharmac agreement to Pharmac, whether Pharmac is acting on its own account or as an agent for a public authority.
5: A registered person who has received a taxable supply from another registered person (the supplier
a: the registered person and the supplier agree that—
i: the supplier will not issue supply correction information under subsection (2) for taxable supplies by the supplier to the registered person to which the agreement relates; and
ii: the registered person will issue supply correction information, for each taxable supply by the supplier to the registered person to which the agreement relates; and
b: the registered person and the supplier record the reasons for entering the agreement if the terms of the agreement are not part of the normal terms of business between the registered person and the supplier; and
c: the Commissioner does not, before the supply correction information is issued, invalidate the agreement because the Commissioner considers that the registered person and the supplier have failed to comply with the agreement or with paragraph (b).
6: A supplier may issue supply correction information under subsection (2) to a recipient if—
a: the supply correction information relates to taxable supply information issued by the registered person for taxable supplies, or a class or classes of taxable supplies, made to the recipient, or to a class or classes of recipients that include the recipient; and
b: the supplier’s records show that the information provided to the recipient, in the supply correction information and the taxable supply information for the supply, includes the details required under subsection (2) for each supply to the recipient to which the supply correction information relates.
7: Supply correction information for a supply may not be issued under subsection (2) after whichever of the following is the date that is, or is the earlier of the dates that are, applicable to the supply:
a: if the supply is not described in paragraph (b), the date that is 4 years from the end of the taxable period in which the registered person provides the return for the taxable period in which the supply was made:
b: if the supply gives rise to an overpayment of tax that is described in section 45(1), (2), or (3) and the Commissioner is satisfied that the registered person took due care to avoid errors in the taxable supply information, the date that is 4 years from the end of the 4-year period referred to in the subsection that describes the overpayment:
c: if the supply was not zero-rated, because section 11(1)﻿(mb) was incorrectly applied to the supply, the date that is 7 years from the date of settlement of the transaction relating to the supply.
8: If a person claims to have lost supply correction information, the registered person who issued the information may provide a copy to the person.
9: Where the Commissioner is satisfied that there are or will be sufficient records available to establish the particulars of any supply or class of supplies, and that it would be impractical to require that supply correction information be provided under this section, the Commissioner may determine that, subject to any conditions that the Commissioner may consider necessary,—
a: any 1 or more of the particulars specified in section 19E(1)
b: supply correction information is not required to be provided.
19O: Treatment of fractional amounts of cent in information
1: For taxable supply information or supply correction information that is required to show an amount of tax consisting of a number of dollars and cents together with a fraction or part of a cent, the fraction or part of the cent,—
a: if less than or equal to half of a cent, may be disregarded:
b: if more than half of a cent, may be shown as being equal to 1 cent.
2: A registered person may apply subsection (1) to—
a: each individual amount of tax relating to a supply; or
b: a total of individual amounts of tax relating to a supply.
3: A registered person must consistently apply 1 of the alternative approaches given by subsection (2) for a taxable period in which the registered person relies on subsection (1).
19P: Commissioner may approve use of symbols, etc, on electronically transmitted information
1: The Commissioner may, for the purpose of facilitating the electronic transfer of supply information and supply correction information, approve the use of symbols, abbreviations, or other notations to represent any particulars required in taxable supply information or supply correction information that is transferred electronically.
2: An approval under subsection (1) may do 1 or more of the following:
a: apply generally, or to a registered person or class of registered persons specified by the Commissioner:
b: be limited to the cases and be subject to the conditions that the Commissioner thinks are appropriate:
c: be withdrawn or varied by the Commissioner at any time on the giving of such notice as is reasonable in the circumstances.
3: An approval under subsection (1) is secondary legislation ( see The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication The maker must publish it in accordance with the Legislation (Publication) Regulations 2021 LA19 s 74(1)﻿(aa) Presentation The Minister must present it to the House of Representatives LA19 s 114 Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act.
19Q: References to tax invoice, credit note, and debit note
1: A reference in a document to a tax invoice is to be read as including a reference to taxable supply information to the extent necessary to reflect sensibly the intent of the document.
2: A reference in a document to a credit note is to be read as including a reference to supply correction information to the extent necessary to reflect sensibly the intent of the document.
3: A reference in a document to a debit note is to be read as including a reference to supply correction information to the extent necessary to reflect sensibly the intent of the document.
4: A reference in a document to a buyer-created tax invoice is to be read as including a reference to taxable supply information as described in section 19K(4)
2: Subsection (1) applies for taxable periods starting on or after 1 April 2023. Section 19(1) amended 31 March 2023 section 216(1) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 19(1) amended 31 March 2023 section 216(2) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 19(1) amended 31 March 2023 section 216(3) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 19(1) amended 31 March 2023 section 216(4) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 19(1) amended 31 March 2023 section 216(5) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 19(1) amended 31 March 2023 section 216(6) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 19(1) amended 31 March 2023 section 216(7) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 19(1) amended 31 March 2023 section 216(8) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 19(1) amended 31 March 2023 section 216(9) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 19(1) amended 31 March 2023 section 216(10) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 19(1) amended 31 March 2023 section 216(11) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 19(1) amended 31 March 2023 section 216(12) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 19(1) amended 31 March 2023 section 216(13) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 19(1) amended 31 March 2023 section 216(14) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 19(1) amended 31 March 2023 section 216(15) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 19(1) amended 31 March 2023 section 216(16) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 19(1) amended 31 March 2023 section 216(17) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 19(1) amended 31 March 2023 section 216(18) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 19(1) amended 31 March 2023 section 216(19) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 19(1) amended 31 March 2023 section 216(20) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 19(1) amended 31 March 2023 section 216(21) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 19(1) amended 31 March 2023 section 216(22) Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023
20: New cross-heading above section 20 inserted
Before section 20 Calculation of tax payable: deductions, apportionment, other adjustments
21: Section 20 amended (Calculation of tax payable)
1:
2: In section 20(2)
a: in paragraph (a), replace section 75 section 19F
b: in paragraph (b), replace section 24(7) section 19H
3: In section 20(3)﻿(f)
a: replace paragraph (a) of, or the proviso to, subsection (2) section 19F
b: replace a tax invoice taxable supply information
4: In section 20(3)
a: paragraph (a)﻿(ii), replace a tax invoice taxable supply information
b: paragraph (b)﻿(i), replace a tax invoice taxable supply information
5: Replace section 20(3EB)﻿(b)﻿(i)
i: the registered person:
6: In section 20(3J) section 11(1)﻿(mb) section 11(1)﻿(m) or (mb)
7: Replace section 20(3J)﻿(a)﻿(iii)
iii: determine the amount that is the same proportion of the nominal GST component as the proportion of the use of the goods and services that is non-taxable use; and
iv: treat the amount determined under subparagraph (iii) as output tax, for attribution to a taxable period under subsection (4); and
8: Replace section 20(3L), (3LB), and (3LC)
3L: For the purposes of subsection (3), a registered person who is non-resident may deduct input tax as defined in section 3A(1)﻿(a) or (c) to the extent to which the registered person uses the goods or services for, or has the goods and services available for use in, making taxable supplies, treating all the supplies made by the person as if they were made and received in New Zealand.
3LB: For the purposes of subsection (3), a registered person who is non-resident may deduct input tax as defined in section 3A(1)﻿(b) if the deduction is not denied by subsection (3LC).
3LC: A registered person who is non-resident may not deduct input tax as defined in section 3A(1)﻿(b) if the imported goods are—
a: supplied to a person (the recipient
i: is not a registered person; or
ii: is a registered person and the supply is not for use in a taxable activity of the recipient; and
b: outside New Zealand at the time of supply.
9: In section 20(4C) a tax invoice taxable supply information
10: Subsection (1) applies for taxable periods starting on or after the day on which this Act receives the Royal assent.
11: Subsections (2), (3), and (4) apply for taxable periods starting on or after 1 April 2023. Section 21(1) repealed 31 March 2023 section 217 Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023
22: Section 20H amended (Goods and services tax incurred in making financial services for raising funds)
1: Replace section 20H(1)﻿(d)
d: the funding support services are—
i: the issue or allotment of an interest or right (a funding security
ii: the renewal of a funding security:
iii: the payment of an amount of interest, principal, or dividend for a funding security:
iv: the provision or variation of a guarantee of the performance of obligations in the issue, allotment, or renewal of a funding security; and
2: Subsection (1) applies for taxable periods starting on or after 1 April 2017.
23: Section 21 amended (Adjustments for apportioned supplies)
1: After section 21(2)﻿(ab)
ac: the person has made an adjustment under section 21FB for a change in use of the goods or services and has not changed the use of the goods or services since that change:
2: Replace section 21(4B)﻿(b)﻿(i)
i: the registered person:
24: Section 21B amended (Adjustments when person or partnership becomes registered after acquiring goods and services)
1: Replace section 21B(1)﻿(b)
b: at the time of registration or at a later time, the person or a partnership of which the person is a member (the registered user
2: In section 21B(2) The registered person may make an adjustment under section 20G, 21, or 21A if the registered user meets the requirements of subsection (3) for the supply, treating, as the first adjustment period, the period (the initial period
3: Replace section 21B(3)
3: A registered user meets the requirements of this subsection for a supply by—
a: having a record of the details of the supply required by either of—
i: section 19F
ii: section 19H
b: using a method that provides a fair and reasonable result in identifying the percentage actual use of the goods or services in the initial period referred to in subsection (2).
4: Subsections (1), (2), and (3) apply for taxable periods starting on or after 1 April 2023.
25: Section 21F amended (Treatment on disposal)
1: Repeal section 21F(2) and (3)
2: In section 21F(4) Subject to subsection (6), the person must make a final adjustment of an amount calculated using the formula—
3: Replace section 21F(6)
6: If the disposal is of land that the person uses in the course or furtherance of a taxable activity of developing land or dividing land into lots, the final adjustment given by subsection (4) must not exceed—
a: for a disposal of land that the person acquired as a zero-rated supply, the amount of output tax that is accounted for by the person under section 20(3J)﻿(a)﻿(iii), taking into account any later adjustments made under the apportionment rules in sections 21 to 21H; or
b: for a disposal to which paragraph (a) does not apply, the amount that, when added to any deduction already claimed, produces a total amount equal to the amount of the full input tax deduction on acquisition referred to in section 21D(2).
4: In section 21F(7) formulas in subsections (2) and (4) formula in subsection (4)
26: Section 24 amended and repealed (Tax invoices)
1: In section 24(1)﻿(b) clearly marked copy only
2: Replace section 24(2)
2: A registered person who has a taxable supply from another registered person must provide the supplier with a tax invoice for the supply if—
a: the recipient and supplier agree that—
i: the supplier will not issue a tax invoice under subsection (1) for taxable supplies by the supplier to the recipient; and
ii: the recipient will issue a tax invoice, for each taxable supply by the supplier to the recipient; and
b: the recipient and supplier record the agreement and the reasons for entering the agreement if the terms of the agreement are not part of the normal terms of business between the recipient and supplier; and
c: the Commissioner does not, before the supply, invalidate the agreement because the Commissioner considers that the recipient and the supplier have failed to comply with the agreement or with paragraph (b).
3: Repeal section 24(6)﻿(a)
4: Repeal section 24
5: Subsections (1), (2), and (3) apply for taxable periods starting on or after the day on which this Act receives the Royal assent.
6: Subsection (4) applies for taxable periods starting on or after 1 April 2023.
27: Section 24BA amended and repealed (Shared tax invoices)
1: In section 24BA(2) each the principal
2: In section 24BA(4) principal supplier
b: the issuing member of a GST group or supplier group for the purposes of section 55 or 55B
3: In section 24BA(4) shared invoice
b: are part of the same GST group or supplier group for the purposes of section 55 or 55B.
4: Repeal section 24BA
5: Subsections (1), (2), and (3) apply for taxable periods starting on or after the day on which this Act receives the Royal assent.
6: Subsection (4) applies for taxable periods starting on or after 1 April 2023.
28: Section 24BAB repealed (Receipts for supplies)
1: Repeal section 24BAB
2: Subsection (1) applies for taxable periods starting on or after 1 April 2023.
29: Section 24BAC repealed (Information for importation of goods including distantly taxable goods)
1: Repeal section 24BAC
2: Subsection (1) applies for taxable periods starting on or after 1 April 2023.
30: Section 24B repealed (Records to be kept by recipient of imported goods and services)
1: Repeal section 24B
2: Subsection (1) applies for taxable periods starting on or after 1 April 2023.
31: Section 25 amended (Credit and debit notices)
1: Replace the heading for section 25 Adjustments for inaccuracies
2: Replace section 25(1)
1: This section applies where, in relation to a supply of goods and services by a registered person, the registered person issues a tax invoice, credit note, or debit note, or makes a return for a taxable period, containing an inaccuracy that is or arises from 1 or more of—
a: a cancellation of the supply:
b: a return, to the supplier, of all or part of the supply:
c: an incorrect description of the supply:
d: an incorrect amount of consideration:
e: an incorrect place of supply:
f: an incorrect time of supply:
g: an incorrect rate of tax:
h: an incorrect amount of tax charged:
i: an incorrect description of the supplier or recipient of the supply.
3: Repeal section 25(1B)
4: In section 25(2) output tax as specified in subsection (1)﻿(e) output tax for a taxable period as a consequence of an inaccuracy referred to in subsection (1)
5: In section 25(3)
a: in the words before paragraph (a), replace as specified in subsection (1)﻿(d) containing an inaccuracy referred to in subsection (1)
b: after paragraph (b), insert:
bb: the inaccuracy does not affect the amount shown on the tax invoice as tax charged, the supplier shall provide the recipient with a credit note in the form referred to in paragraph (a), or a debit note in the form referred to in paragraph (b), containing particulars of the inaccuracy and a correction of the inaccuracy:
c: in paragraph (c), after the excess shown in a tax invoice of the tax charged or for the amount of the excess of the actual tax charged over the amount of tax shown in the tax invoice
d: in paragraph (d), delete the words after a copy
e: replace paragraph (e) with:
e: a supplier shall not be required to provide a recipient with a credit note under paragraph (a) where the amount of the excess referred to in that paragraph arises as a result of the recipient’s accepting a discount offered by the supplier—
i: for prompt payment, and the terms of the prompt payment discount offer are stated in the tax invoice; or
ii: by agreement, and, if the terms of the agreement are not part of the usual business terms between the recipient and the supplier, the terms of the agreement are recorded by the recipient and supplier:
6: Repeal section 25(3), (3A), (3B), and (3C)
7: Replace section 25(4) and (5)
4: If a registered person makes a deduction in a taxable period of input tax relating to a supply for which the person has a tax invoice and is then issued with a credit note or debit note showing, or otherwise knows, that the credit note or debit note includes an amount of output tax on the supply exceeding the correct amount, the amount of the excess tax is—
a: treated as being output tax charged on a taxable supply made by the registered person, to the extent that the input tax deducted relating to the supply exceeds the output tax properly charged on the supply; and
b: attributed to the taxable period in which the credit note or debit note is issued or the registered person becomes aware of the excess.
5: If a registered person makes a deduction in a taxable period of input tax relating to a supply for which the person has a tax invoice and is then issued with a credit note or debit note showing that the correct amount of output tax on the supply exceeds the amount included in the tax invoice, the amount of the excess tax is treated as being input tax that is a deduction under section 20(3) in the taxable period in which the credit note or debit note is issued, to the extent that the output tax properly charged on the supply exceeds the input tax deducted relating to the supply.
8: In section 25(4)
a: in the words before paragraph (a),—
i: replace a tax invoice taxable supply information
ii: replace a credit note or debit note supply correction information
iii: replace the credit note or debit note the supply correction information
b: in paragraph (b), replace credit note or debit note supply correction information
9: In section 25(5)
a: replace a tax invoice taxable supply information
b: replace a credit note or debit note supply correction information
c: replace the tax invoice the taxable supply information
d: replace the credit note or debit note the supply correction information
10: Repeal section 25(6) and (7)
11: Subsections (1), (2), (4), (5), and (7) apply for taxable periods starting on or after the day on which this Act receives the Royal assent.
12: Subsections (3), (6), (8), (9), and (10) apply for taxable periods starting on or after 1 April 2023.
32: Section 25AA amended (Consequences of change in contract for imported goods and services)
1: In section 25AA(1)﻿(a)﻿(v) a tax invoice taxable supply information
2: Subsection (1) applies for taxable periods starting on or after 1 April 2023.
33: Section 25AB amended (Consequences of change in contract for secondhand goods)
1: Replace section 25AB(1)﻿(a)
a: the supply is affected by 1 or more of—
i: a cancellation of the supply:
ii: a return, to the supplier, of all or part of the supply:
iii: an incorrect description of the supply:
iv: an incorrect rate of tax:
v: an incorrect amount of tax charged:
vi: a change to the previously agreed consideration for the supply; and
2: In section 25AB(1)﻿(d) a tax invoice or credit note taxable supply information or supply correction information
3: In section 25AB(2) the event referred to subsection (1)﻿(a) occurs the error in the amount of input tax is found
4: Subsections (1), (2), and (3) apply for taxable periods starting on or after 1 April 2023.
34: Section 25A repealed (Commissioner may approve use of symbols, etc, on electronically transmitted invoices, receipts, and credit and debit notes)
1: Repeal section 25A
2: Subsection (1) applies for taxable periods beginning on or after 1 April 2023.
35: Section 43 amended (Deduction of tax from payment due to defaulters)
1: After section 43(2)
2AA: If a person (the liable person defaulting person
2: In section 43(2A) subsection (1) subsection (2)
3: In section 43(4) revocation by the registered person revocation by the registered person or liable person
4: In section 43(5) to the registered person to the registered person or liable person
5: In section 43(5B) the registered person the registered person or liable person
6: In section 43(6)
a: replace any registered person a registered person or liable person
b: replace that registered person the registered person or liable person
7: In section 43(7) the registered person the person
8: In section 43(9) the registered person the registered person or liable person
36: Section 53 amended (Registered person to notify change of status)
1: In section 53(1)﻿(d) group GST group
2: In section 53(2) tax invoices and credit and debit notes taxable supply information and supply correction information
3: Subsections (1) and (2) apply for taxable periods starting on or after 1 April 2023.
37: Section 55 amended (Group of companies)
1: Replace the heading for section 55 GST groups
2: Before section 55(1)
1A: This section applies to companies meeting the eligibility requirements of subsection (1) or (8) and choosing to form a GST group.
1AB: The rules in the section are intended to ensure that, with exceptions, the Act treats the members of a GST group as if the members were—
a: as the GST group, a single company—
i: operating separately each activity that each member would operate in the absence of this section; and
ii: making or receiving each supply that each member, as part of an activity, would be treated in the absence of this section as making to, or receiving from, a person who is not a member; and
iii: acting through the representative member in making elections, giving information other than tax invoices, credit notes, or debit notes, keeping records, and making payments required by the Act; and
iv: acting through the issuing member, or the representative member if the GST group does not have an issuing member, in giving tax invoices, credit notes, or debit notes; and
b: as the GST group, sharing the responsibilities and liabilities under the Act of the single company; and
c: as individual members, sharing with the representative member some of the individual responsibilities and obligations under the Act arising for the representative member from each activity and supply that would be an activity and supply of the member in the absence of this section.
1AC: Subsections (1AD) to (1AI) apply to the members of a GST group—
a: except in relation to a supply of services that is treated by section 8(4B) as being made in New Zealand; and
b: unless a provision of the Act expressly provides otherwise.
1AD: An activity that would in the absence of this section be an activity of a member of the GST group is carried on by—
a: the representative member, as an activity of a registered person separate from other activities of the representative member; and
b: no member of the GST group other than the representative member.
1AE: A supply that would in the absence of this section be a supply made by a member of the GST group to a person—
a: is a supply made as a registered person by the representative member to the person, if the person is not a member of the GST group; or
b: is disregarded for the purposes of calculating the tax payable by the GST group for a taxable period, if the person is a member of the GST group, except if another provision requires otherwise.
1AF: A supply of goods and services that would in the absence of this section be made by a member of the GST group, and not be a taxable supply, is a supply by the representative member.
1AG: A supply of goods and services that would in the absence of this section be made to a member of the GST group, other than a supply that would in the absence of this section be a taxable supply by another member, is a supply to the representative member as a registered person.
1AH: If goods and services are acquired, or produced, or applied, by a member of a GST group (the new member
a: acquired, or produced, or applied, the goods and services at the time with a percentage intended use for making taxable supplies equal to the percentage intended use of the new member; and
b: made claims for input tax and adjustments of output tax, relating to the goods and services, when the same claims were made by the new member before becoming a member of the GST group.
1AI: Information provided to a member of the GST group under section 78F is provided to the representative member and information provided by a member of the GST group under section 78F is provided by the representative member.
1AJ: Subsections (1AK) to (8) apply to the members of a GST group unless a provision of the Act expressly provides otherwise or the context requires another result.
1AK: When part of the GST group, the members of the GST group have the same taxable period under sections 15 to 15E and the same accounting basis under section 19 or 19A.
1AL: The representative member is—
a: responsible for making elections of the GST group under the Act and making the returns, giving the information, subject to subsection (1AM), and keeping the records, required by the Act for the GST group; and
b: treated as paying tax paid by a member of the GST group; and
c: responsible for paying the tax payable by the members of the GST group, subject to subsection (1AO)﻿(a).
1AM: A GST group may choose that the tax invoice, credit note, or debit note, for a taxable supply that would in the absence of this section be made by a member (the active member
a: in the name of the active member, by the active member; or
b: in the name of the representative member, by—
i: the representative member; or
ii: a member (the issuing member
1AN: The representative member, and an issuing member or active member, of a GST group must meet the requirements of sections 24, 25, and 75
1AO: A person who is, or has been, a member of the GST group has the following responsibilities and liabilities:
a: joint and several liability with the other members of the GST group under subsections (1AP) and (1AQ) for all tax payable, and not paid, by the representative member for each taxable period, or part of a taxable period, in which the member is part of the GST group; and
b: the responsibilities and liabilities of a member of the GST group under the provisions of—
i: sections 24 and 25; and
ii: section 75, for the activities of the member while the member is part of the GST group; and
iii: Part 8 (Registration), if the person is a registered person when the person is a member of the GST group.
1AP: If a member (the leaving member
a: the assessment for the liability of the GST group is made after the later of—
i: the date on which the leaving member is treated as leaving the GST group:
ii: the date of the event that causes the leaving member to be treated as leaving the GST group; and
b: the amount assessed is more than an earlier assessment of the GST group for the taxable period or part of the taxable period; and
c: the Commissioner considers that the removal of the liability will not significantly prejudice the recovery, or likely recovery, of the amount of tax assessed for the taxable period or part of the taxable period; and
d: the Commissioner notifies the leaving member and the representative member that the requirements of paragraph (c) are met.
1AQ: The responsibilities under subsection (1AO) of a person who is, or has been a member of a GST group—
a: are unaffected by the person’s ceasing to be part of the GST group or by a representative member’s ceasing to exist; and
b: may be relieved by the Commissioner under subsection (1AP).
3: In section 55(1) group of companies GST group
4: Replace section 55(1)﻿(a)
a: at a time and under section IC 3 of the Income Tax Act 2007, the companies are a group of persons (the eligibility group
i: is a group of companies; or
ii: is part of a group of companies; or
iii: would be a group of companies but for 1 or more members being a multi-rate PIE or a look-through company; or
iv: would be a group of companies but for 1 or more members being a listed PIE; and
5: In section 55(1)﻿(b)
a: words before the subparagraphs, replace companies,— companies meet either or both of the following requirements:
b: replace subparagraph (ii) with:
ii: as the eligibility group and in a 12-month period that includes the time, make supplies to persons outside the eligibility group that are taxable supplies, or would be taxable supplies if made by a registered person, and that have a total value of at least 75% of the total value of the taxable supplies and other supplies made in that period by persons in the eligibility group to persons outside the eligibility group.
6: In section 55(1AB)﻿(a)﻿(iii) and (iv) tax invoices, credit notes, or debit notes taxable supply information or supply correction information
7: In section 55(1AM) tax invoice, credit note, or debit note taxable supply information or supply correction information
8: In section 55(1AN)
a: replace 24, 25, and 75 19J and 19L
b: replace tax invoices, credit notes, debit notes, and other records relating to supplies taxable supply information and supply correction information
9: In section 55(1B)
a: replace group of companies GST group
b: replace resulting group resulting GST group
10: In section 55(2) group of companies GST group
11: In section 55(3) by 2 or more companies
12: In section 55(4)
a: replace group of companies GST group
b: words after paragraph (d), after by the Commissioner or from the date required by subsection (4AA)
13: After section 55(4)
4AA: If the representative member applies under subsection (4) for a company to be a member of the GST group and the company is incorporated less than 12 months before the application and is eligible to be a member when it is incorporated, the Commissioner must grant the application from whichever date the representative member chooses of—
a: the date of the company’s incorporation:
b: the start of the taxable period following the date of the company’s incorporation.
14: In section 55(4A) group of companies GST group
15: In section 55(5) group of companies GST group
16: In section 55(6)
a: replace any group of companies a GST group
b: replace shall be deemed to be is
c: replace that group of companies the GST group
17: Repeal section 55(7) and (7B)
18: In section 55(8) the Commissioner may accept that the registered persons are a GST group, and subsections (2) to (6) apply to the group of registered persons as a GST group and to each of the registered persons as a member of the GST group.
19: Subsections (1), (3), (4), (5), (9), (10), (11), (12), (13), (14), (15), (16), (17), and (18) apply for taxable periods starting on or after the day on which this Act receives the Royal assent.
20: Subsection (2) applies for taxable periods starting on or after the day on which this Act receives the Royal assent and section 55(1AO), (1AP), and (1AQ)
21: Subsections (6), (7), and (8) apply for taxable periods starting on or after 1 April 2023.
38: New section 55B inserted (Supplier group and issuing member)
1: After section 55
55B: Supplier group and issuing member
1: Members of a group of 2 or more registered persons (the supplier group issuing member supplying member
2: The requirements of this subsection are met if—
a: the members of the supplier group agree that—
i: the issuing member must issue tax invoices, credit notes, and debit notes for each supply by a supplying member; and
ii: each member of the supplier group other than the issuing member must not issue tax invoices, credit notes, and debit notes for a supply by the member; and
b: the agreement includes the name, address, and registration number of each member of the supplier group; and
c: if the terms of the agreement differ from normal commercial terms agreed earlier between the members of the supplier group, each member of the supplier group records the circumstances taken into account by the member in entering the agreement; and
d: The Commissioner has not invalidated the agreement because the Commissioner considers that the members of the supplier group have failed to satisfy the requirements of the agreement and this section.
3: The issuing member of a supplier group is responsible for the obligations under this Act of a supplying member making a supply.
4: When the members of a supplier group agree to have, or to change, the issuing member for the supplier group, the issuing member must notify the Commissioner of the member’s role and provide the Commissioner with an undertaking to meet the obligations of an issuing member for the supplier group.
2: In section 55B(1) section 24BA(3) tax invoices, credit notes, and debit notes section 19J
3: In section 55B(2)﻿(a)﻿(i) and (ii) tax invoices, credit notes, and debit notes taxable supply information and supply correction information
4: Subsection (1) applies for taxable periods starting on or after the day on which this Act receives the Royal assent.
5: Subsections (2) and (3) apply for taxable periods starting on or after 1 April 2023.
39: Section 60 amended (Agents and auctioneers)
1: In section 60(1)
a: replace a tax invoice or a credit note or a debit note taxable supply information or supply correction information
b: replace that tax invoice or credit note or debit note the taxable supply information or supply correction information
2: In section 60(2)
a: replace with a tax invoice with taxable supply information
b: replace a tax invoice or a credit note or a debit note taxable supply information or supply correction information
3: In section 60(3) a tax invoice or a credit note or a debit note taxable supply information or supply correction information
4: Subsections (1), (2), and (3) apply for taxable periods starting on or after 1 April 2023.
40: Section 75 amended (Keeping of records)
1: In section 75(1) tax invoices, credit notes, debit notes taxable supply information, supply correction information
2: In section 75(2)﻿(a) tax invoices, credit notes, and debit notes taxable supply information and supply correction information
3: After section 75(4)
4B: A registered person is not required to keep a record of the GST registration number of the supplier if the amount of consideration for the supply is $200 or less.
4: Subsections (1), (2), and (3) apply for taxable periods starting on or after 1 April 2023. Section 40(3) replaced 31 March 2023 section 218 Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 Section 40(4) inserted 31 March 2023 section 218 Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023
41: Section 75B amended (General rules for giving information or communicating matters)
1: In section 75B(3) post, fax, or electronic means post, or electronic means
2: Subsection (1) applies for taxable periods starting on or after 1 April 2023.
42: Section 78AA amended (Exceptions to effect of increase of tax)
1: In section 78AA(11)﻿(b) a tax invoice taxable supply information
2: In section 78AA(12)
a: replace a tax invoice taxable supply information
b: paragraph (a), replace tax invoice taxable supply information
c: paragraph (b), replace a credit note or debit note supply correction information
3: Replace section 78AA(13)
13: If, in the absence of this subsection, the registered person would be required to provide supply correction information—
a: for an excess of tax charged in the taxable supply information for a supply,—
i: the registered person may provide replacement taxable supply information for the supply; and
ii: goods and services tax is charged on the supply under the replacement taxable supply information at the original rate:
b: for a deficiency of tax charged in the taxable supply information for a supply, the registered person may provide replacement taxable supply information for the supply.
4: Subsections (1), (2), and (3) apply for taxable periods starting on or after 1 April 2023.
43: Section 78B amended (Adjustments to tax payable for persons furnishing returns following change in rate of tax)
1: Replace section 78B(2A)﻿(f)﻿(i) to (iii)
i: taxable supply information or supply correction information has been provided in accordance with sections 19K to 19N
ii: section 19K(7) section 19N
iii: the registered person meets record-keeping requirements of section 19H
2: Subsection (1) applies for taxable periods starting on or after 1 April 2023.
44: Section 78BA amended (Adjustments to tax payable in relation to credit and debit notes following change in rate of tax)
1: In the heading to section 78BA credit and debit notes supply correction information
2: In section 78BA(1)
a: a debit note or credit note supply correction information
b: that debit note or credit note the supply correction information
c: the debit note or credit note the supply correction information
3: In section 78BA(2)
a: paragraph (c)﻿(i), replace a debit note or credit note supply correction information
b: paragraph (c)﻿(ii), replace tax invoice taxable supply information
c: words after paragraph (c)﻿(ii), replace that debit note or credit note the supply correction information
d: words after paragraph (c), replace the debit note or credit note or other notice the supply correction information or other information
4: Subsections (1), (2), and (3) apply for taxable periods starting on or after 1 April 2023.
45: Section 78G repealed (Railways vesting: zero-rating and timing of tax calculations and documents)
1: Repeal section 78G
2: Subsection (1) applies for taxable periods starting on or after the day on which this Act receives the Royal assent.
3: Amendments to Income Tax Act 2007
46: Amendments to Income Tax Act 2007
This Part amends the Income Tax Act 2007 2022-03-30 Income Tax Act 2007 (except as sections as below) 2022-04-01 Income Tax Act 2007 see section 2(37) Sections 52, 55, 56, 57, 68, 86, 88, 89, 90, 91, 92, 93, 94, 95, 104, 107, 147, 148, 151, 154, 160, 171(15)﻿(a), (16), (18), and (38)
47: Section BC 5 amended (Taxable income)
In section BC 5 tax loss
48: Section CB 6A replaced (Disposal within 10 years: Bright-line test for residential land)
1: Replace section CB 6A
CB 6A: Disposal within 10 years: Bright-line test for residential land
When this section applies: relationship with subject matter
1A: This section applies if none of sections CB 6 to CB 12 apply. Some definitions
1: In this section,—
a: 10-year test land bright-line acquisition dates
b: 5-year test land
i: the person acquires it no later than 12 months after the land becoming new build land
ii: the land’s bright-line disposal date is within 5 years of the earliest of any of the applicable dates ( bright-line acquisition dates
iii: at the time of its disposal or at the time the instrument to transfer the land to another person is registered as described in subsection (3)﻿(a), it meets the requirements of paragraph (a), (b), (d), (e), or (f) of the definition of new build land Income
2: Subject to quantification under subsection (8), an amount that a person derives from disposing of residential land is income of the person to the extent to which the amount is for residential land that is—
a: 10-year test land:
b: 5-year test land. Exception: death
2B: This section does not apply to an amount that an executor or administrator described in section FC 1(1)﻿(a) (Disposals to which this subpart applies), or a beneficiary described in section FC 1(1)﻿(b), derives from disposing of residential land that was transferred to them on the death of a person. Disposal
3: In the case where none of subsections (4) to (7C) are applicable, the bright-line acquisition date for the purposes of the definitions of 10-year test land 5-year test land
a: the date on which the instrument to transfer the land to the person was registered—
i: under the Land Transfer Act 2017; or
ii: under foreign laws of a similar nature to the Land Transfer Act 2017, if the land is outside New Zealand; or
b: the latest date on which the person acquires the estate or interest in the land, if an instrument to transfer the land to the person is not registered on or before the bright-line disposal date. Change of trustees: disposal
3B: For the purposes of subsection (3), and despite subsection (3)﻿(a), in the case of a transfer of land to a trustee of a trust from a trustee of the trust, the date on which the relevant instrument was registered is treated as—
a: the earliest date on which an instrument to transfer the land to a trustee of the trust was registered under the relevant law referred to in the subsection (the first date
b: the first date following the intervening transfer, if there has been an intervening transfer to a person who is not a trustee. Subdivision
4: In the case where the residential land results from the person subdividing other land (the undivided land 10-year test land 5-year test land
a: the date on which the instrument to transfer the undivided land to the person was registered—
i: under the Land Transfer Act 2017; or
ii: under foreign laws of a similar nature to the Land Transfer Act 2017, if the land is outside New Zealand; or
b: the latest date on which the person acquires the estate or interest in the undivided land, if the land is not registered as described in paragraph (a) at the bright-line date. Change of trustees: subdivision
4B: For the purposes of subsection (4), and despite subsection (4)﻿(a), in the case of a transfer of land to a trustee of a trust from a trustee of the trust, the date on which the relevant instrument was registered is treated as—
a: the earliest date on which an instrument to transfer the undivided land to a trustee of the trust was registered under the relevant law referred to in the subsection (the first undivided date
b: the first undivided date following the intervening transfer, if there has been an intervening transfer to a person who is not a trustee. Leases with perpetual right of renewal
5: In the case where the residential land is a freehold estate in residential land, acquired as the owner of a leasehold estate with a perpetual right of renewal, the bright-line acquisition date for the purposes of the definitions of 10-year test land 5-year test land Joint tenancy converted to tenancy in common
5B: In the case and to the extent to which the residential land is held as a tenant in common in a share equal to all joint owners, acquired subsequent to, and to the extent to which it was previously being held as a joint tenant nominally in the same share equal to the same joint owners, the bright-line acquisition date for the purposes of the definitions of 10-year test land 5-year test land Tenancy in common converted to joint tenancy
5C: In the case and to the extent to which the residential land is held as a joint tenant nominally in a share equal to all joint owners, acquired subsequent to, and to the extent to which it was previously being held as a tenant in common in the same share equal to the same joint owners, the bright-line acquisition date for the purposes of the definitions of 10-year test land 5-year test land Dividing from and merging with pre-existing land
5D: To the extent to which land ( land A pre-existing land pre-existing land Estate or interest acquired upon completion of land development or subdivision
6: In the case where the residential land is acquired as the result of the completion of a land development or subdivision, the bright-line acquisition date for the purposes of the definitions of 10-year test land 5-year test land Residential land transferred for certain family trusts
7: For residential land transferred to trustees or original settlors of certain family trusts, the bright-line acquisition date for the purposes of the definitions of 10-year test land 5-year test land section CB 6AB Residential land transferred to Maori authorities, or similar eligible persons, for certain family trusts
7B: For residential land transferred to Maori authorities, or similar eligible persons, for certain family trusts, the bright-line acquisition date for the purposes of the definitions of 10-year test land 5-year test land section CB 6AC Certain transfers of residential land included in settlement of claim under the Treaty of Waitangi
7C: For certain transfers of residential land included in settlement of claim under the Treaty of Waitangi 10-year test land 5-year test land section CB 6AE Quantification
8: Despite subsection (1), the amount of income that a person ( person A unadjusted income × (exempted non-predominant main home days × main home percentage + exempted predominant main home days) / total days. Definition of items in formula
9: The items in the formula are defined in subsections (10) to (11D), and subsection (11E) provides an exception. Unadjusted income
10: Unadjusted income Exempted non-predominant main home days
11: Exempted non-predominant main home days
a: days within the land’s bright-line period that the land has been used for a dwelling that was the main home for 1 or more main home persons:
b: days in a period that is equal to or shorter than the exempt main home period limit if, for the period, the land has not been used for a dwelling that was the main home for 1 or more main home persons, and—
i: the start of the period adjoins either a day described in paragraph (a) or the start of the land’s bright-line period; and
ii: the end of the period adjoins either a day described in paragraph (a) or the end of the land’s bright-line period; but
c: does not include any exempted predominant main home days. Main home percentage
11B: Main home percentage exempted non-predominant main home days Exempted predominant main home days
11C: Exempted predominant main home days section CB 16A Total days
11D: Total days Exception to quantification
11E: Subsection (8) does not apply if person A is described in section 16A(3) Relationship with subject matter
15: For the purposes of calculating a person’s net income in relation to the disposal of residential land for which they derive an amount of income under this section, sections FC 9B, FC 9C, and FC 9D bright-line acquisition date, bright-line date, bright-line period, dispose, estate, exempt main home period limit, exempted predominant main home day, interest, land, main home, mortgage, new build land, person, residential land, trustee, year
CB 6AB: Residential land transferred in relation to certain family trusts and other capacities
Transfer to trustee
1: If a trustee holds land on a rollover trust, then the bright-line acquisition date for the land, when the trustee disposes of it, is the bright-line acquisition date that the settlor had for the land before transfer to the trustee. The transfer to the trustee must be on or after 1 April 2022. Transfer to original settlor
2: If a person (an original settlor Transfer to or from different capacity, proportionality
3: For the purposes of applying subsections (1) and (2) for a person who is a settlor in the case of subsection (1) or an original settlor in the case of subsection (2), the person may have a capacity other than settlor or original settlor (for example: LTC owner). However, in the case of an original settlor, subsection (2) does not apply unless the land transferred back to them from the relevant trustee is—
a: the same land that they originally settled and all other original settlors also get back their land; or
b: in part the same land that they originally settled if that part and all other transfers back to other original settlors are in the same proportions as in the original settlement. Transfer to self
4: If a person transfers the same land to themselves in a different capacity, and there is no intervening transfer to a third party, then the bright-line acquisition date for the land when they dispose of it to a third party in that different capacity is the bright-line acquisition date that the person first had for the land. The transfer to the different capacity must be on or after 1 April 2022, and must not be to or from a person in their capacity of settlor, beneficiary, or trustee. Key term: rollover trust
5: Rollover trust
a: all relevant transfers to either trustees in the case of subsection (1) or to original settlors in the case of subsection (2) are either by people who are beneficiaries or to people who are beneficiaries, as applicable, 1 of whom is a principal settlor (for example: if the land is transferred to 2 people who are original settlors, then they must be beneficiaries of the trust, in addition to any other capacity they might have, and 1 of them must be a principal settlor); and
b: all principal settlors are beneficiaries of the trust; and
c: all principal settlors are close family associates; and
d: all beneficiaries are either close family beneficiaries, or trustees of another trust and at least 1 beneficiary of the other trust is a close family associate of a beneficiary of the relevant trust. Key term: close family beneficiary
6: Close family beneficiary
a: a principal settlor:
b: a close family associate of another beneficiary who is also a principal settlor:
c: a company in which a 50% or more voting interest, or a 50% or more market value interest if a market value circumstance exists, is owned by a beneficiary of the trust that is a close family associate of another beneficiary that does meet the principal settlor requirements for the trust:
d: a charity registered under the Charities Act 2005. Key term: close family associates
7: Two persons are close family associates
a: they are within 4 degrees of blood relationship:
b: they are married, in a civil union, or in a de facto relationship:
c: 1 person is within 4 degrees of blood relationship to the other person’s spouse, civil union partner, or de facto partner. Exception
8: This section does not apply for the transfer of shares in an LTC to or from a trustee.
CB 6AC: Residential land transferred in relation to certain Māori family trusts
Transfer to trustee
1: If a Māori trustee holds land on a Māori rollover trust, the bright-line acquisition date for the land, when the Māori trustee disposes of it, is the bright-line acquisition date that the settlor had for the land before transfer to the Māori trustee. The transfer to the trustee must be on or after 1 April 2022. Transfer to original settlor
2: If a person (an original settlor Transfer to or from different capacity, proportionality
3: For the purposes of applying subsections (1) and (2) for a person who is a settlor in the case of subsection (1) or an original settlor in the case of subsection (2), the person may have a capacity other than settlor or original settlor (for example: LTC owner), but in the case of an original settlor, subsection (2) does not apply unless the land transferred back to them from the relevant trustee is—
a: the same land that they originally settled and all other original settlors also get back their land; or
b: in part the same land that they originally settled if that part and all other transfers back to other original settlors are in the same proportions as in the original settlement. Key term: Māori rollover trust
4: Māori rollover trust
a: all relevant transfers to either trustees in the case of subsection (1) or to original settlors in the case of subsection (2) are either by people who are beneficiaries or to people who are beneficiaries, as applicable (for example: if the land is transferred to 2 people who are original settlors, then they must be beneficiaries of the trust, in addition to any other capacity they might have); and
b: all beneficiaries are—
i: members of the same iwi or hapu:
ii: descendants of the same tipuna; and
c: the land is subject to Te Ture Whenua Maori Act 1993. Key term: Māori trustee
5: Māori trustee
CB 6AE: Certain transfers of residential land included in settlement of claim under the Treaty of Waitangi
What this section applies to
1: This section applies to a transfer by a person (a transferor Treaty of Waitangi recipient (person A) recipient (person A) Sections CB 6A and CZ 39: bright-line acquisition date
2: For the purposes of sections CB 6A and CZ 39 bright-line acquisition date, dispose, disallowed residential property, Maori authority, residential land, trust, trustee
2: Subsection (1) applies to a person’s disposal of residential land, if the person acquires an estate or interest in the land on or after 27 March 2021. However, subsection (1) does not apply if the person makes an offer for the acquisition of the land, on or before 23 March 2021, that is irrevocable before 27 March 2021 and the person acquires an estate or interest in the land on or after 27 March 2021 as a result of that offer. Further, subsection (1) does not apply to—
a: a person’s disposal of a freehold estate in residential land that the person acquired as the owner of a leasehold estate with a perpetual right of renewal, if the person was granted the leasehold estate before 27 March 2021:
b: a person’s disposal of an estate or interest in residential land that the person acquired as the result of the completion of a land development or subdivision, if before 27 March 2021 the person entered into the agreement under which they acquired the estate or interest upon the completion of the land development or subdivision.
49: Section CB 16A amended (Main home exclusion for disposal within 10 years)
1: Replace section CB 16A(1) and (2) Main home exclusion
1: Section CB 6A person A exempt main home Key term: exempted predominant main home day
1B: Exempted predominant main home day
a: a day within the land’s bright-line period that the land has been used predominantly for a dwelling that was the main home for 1 or more main home persons:
b: a day in a period that is equal to or shorter than the exempt main home period limit, if, for the period, the land has not been used predominantly for a dwelling that was the main home for 1 or more main home persons, but—
i: the start of the period adjoins either a day described in paragraph (a) or the start of the land’s bright-line period; and
ii: the end of the period adjoins either a day described in paragraph (a) or the end of the land’s bright-line period. Key term: exempt main home period limit
1C: Exempt main home period limit Key term: main home person
1D: Main home person
a: person A:
b: a beneficiary of a trust, if person A is a trustee of the trust that owns the residential land disposed of, and—
i: a principal settlor of the trust does not have a main home; or
ii: if a principal settlor of the trust does have a main home, it is that main home that is being disposed of.
2: In section CB 16A(3)﻿(b) residential land described in subsection (2) exempt main homes described in subsection (1)
3: In section CB 16A(4) residential land described in subsection (2) exempt main homes described in subsection (1)
4: In section CB 16A(5)﻿(a) residential land described in subsection (2) an exempt main home described in subsection (1)
5: Repeal section CB 16A(6)
6: In section CB 16A exempt main home exempt main home period limit exempted predominant main home day main home person
7: Subsections (1), (2), (3), (4), (5), and (6) apply to a person’s disposal of residential land, if the person acquires an estate or interest in the land on or after 27 March 2021. However, subsections (1), (2), (3), (4), (5), and (6) do not apply if the person makes an offer for the acquisition of the land, on or before 23 March 2021, that is irrevocable before 27 March 2021 and the person acquires an estate or interest in the land on or after 27 March 2021 as a result of that offer. Further, subsections (1), (2), (3), (4), (5), and (6) do not apply to—
a: a person’s disposal of a freehold estate in residential land that the person acquired as the owner of a leasehold estate with a perpetual right of renewal, if the person was granted the leasehold estate before 27 March 2021:
b: a person’s disposal of an estate or interest in residential land that the person acquired as the result of the completion of a land development or subdivision, if before 27 March 2021 the person entered into the agreement under which they acquired the estate or interest upon the completion of the land development or subdivision.
50: Section CB 36 amended (Disposal of emissions units)
1: After section CB 36(8C) Cancellation of unit
8D: If a person cancels an emissions unit, the person is treated as selling the unit for an amount of zero.
2: Subsection (1) applies for a person and an income year beginning on or after 1 January 2009, except for an income year for which the person chooses to rely on a tax position taken before the date on which this Act receives the Royal assent.
51: Section CD 5 amended (What is a transfer of company value?)
In section CD 5(2)﻿(a) forgiven remitted
52: Section CD 38 amended (General calculation rule for transfers of company value)
1: Replace section CD 38(2)﻿(b)﻿(i)
i: is the market value of the money or money’s worth, if any, that the person provides to the company as consideration for the transfer. To the extent to which the person provides a loan that is cross-border related borrowing under section GC 6(3B) (Purpose and application of rules and nature of arrangements), the market value of the money or money’s worth that the person provides is determined using the interest rate for a loan made on the same terms, including credit rating, as used for the adjustment to the interest made in accordance with sections GC 6 to GC 18 (which relate to transfer pricing arrangements), if any; and
2: Subsection (1) applies for income years starting on or after 1 April 2022.
53: Section CD 43 amended (Available subscribed capital (ASC) amount)
1: In section CD 43(6B)﻿(a) forgiven remitted
2: Repeal section CD 43(6B)﻿(b)
3: In the heading to section CD 43(6D) forgiven remitted
54: Section CD 44 amended (Available capital distribution amount)
1: After section CD 44(7) Disposal of shares received in a share-for-share exchange
7B: A company that sells or transfers to a person that is not associated, for consideration, shares that are capital property, and the shares were received by the company in a share-for-share exchange to which section CD 43(9) and (10) (Available subscribed capital (ASC) amount) apply, has a capital gain amount, in addition to any other capital gain amount, equal to the subscriptions amount not included, because of the application of section CD 43(10), for the relevant issue of the company’s shares in the share-for-share exchange.
2: In the heading to section CD 44(8B) forgiven remitted
3: In section CD 44(8B) forgiven remitted
55: Section CW 10 amended (Dividend within New Zealand wholly-owned group)
1: In section CW 10(1)﻿(e) subsections (3) to (6) subsections (5) and (6)
2: Repeal section CW 10(3)
3: Subsections (1) and (2) apply for the 2022–23 and later income years.
56: New section CW 10B inserted (Dividends derived by council-controlled organisation holding companies)
1: After section CW 10
CW 10B: Dividends derived by council-controlled organisation holding companies
A dividend derived by a council-controlled organisation (the recipient payer
a: the payer is—
i: a council-controlled organisation; or
ii: a port company, a subsidiary of a port company, or an energy company that would be a council-controlled organisation in the absence of section 6(4) of the Local Government Act 2002; and
b: at the time the dividend is derived, 100% of the voting interests in the payer are held by—
i: 2 or more local authorities; or
ii: a combination of 1 or more Ministers of the Crown, on behalf of the Crown, and 1 or more local authorities; and
c: at the time the dividend is derived, a local authority holds 100% of the voting interests in the recipient. council-controlled organisation, dividend, exempt income, local authority, voting interest
2: Subsection (1) applies for the 2022–23 and later income years.
57: Section CW 39 amended (Local authorities)
1: Replace section CW 39(4)
4: Subsection (2) does not apply to an amount of income that—
a: is derived by a local authority from—
i: a council-controlled organisation linked by ownership or control to the local authority, other than a council-controlled organisation operating a hospital as a charitable activity on behalf of the local authority; or
ii: an organisation linked by ownership or control to the local authority that is a port company, a subsidiary of a port company, or an energy company and that would be a council-controlled organisation in the absence of section 6(4) of the Local Government Act 2002; and
b: is neither rates nor a dividend.
2: Subsection (1) applies for the 2022–23 and later income years.
58: Section CW 47 amended (TAB NZ and racing clubs)
After section CW 47(1)﻿(d)
e: the Racing Integrity Board:
f: Racing New Zealand.
59: New section CW 62C inserted (Income from foreign-currency loans used for disallowed residential property)
After section CW 62B
CW 62C: Income from foreign-currency loans used for disallowed residential property
An amount of income of a person under section CC 3(1) (Financial arrangements) is exempt income if the person—
a: derives the income from a financial arrangement that is a loan of foreign currency to the person; and
b: uses the loan proceeds for disallowed residential property; and
c: is denied by section DH 8(1) disallowed residential property, exempt income, financial arrangement, interest, income
60: Section CX 47 amended (Government grants to businesses)
1: After section CX 47(4) Another exclusion
5: This section does not apply to an RDTI transition support payment.
2: Subsection (1) applies for the 2019–20 and later income years.
61: Section CZ 39 amended (Disposal within 5 years: bright-line test for residential land: acquisition on or after 29 March 2018)
1: In section CZ 39(2)﻿(a) the date on which the date (the bright-line acquisition date
2: In section CZ 39(2)﻿(b) their date of acquisition their date of acquisition (the bright-line acquisition date
3: In section CZ 39(3)﻿(a) the date on which the date (the bright-line acquisition date
4: In section CZ 39(3)﻿(b) their date of acquisition their date of acquisition (the bright-line acquisition date
5: In section CZ 39(4) grant of the leasehold estate the date of the grant of the leasehold estate (the bright-line acquisition date
6: In section CZ 39(5) the person entering into the agreement the date of the person entering into the agreement (the bright-line acquisition date
7: After section CZ 39(5) Joint tenancy converted to tenancy in common
5B: Despite subsection (2), for residential land transferred in the case and to the extent to which the residential land is held as a tenant in common in a share equal to all joint owners, acquired subsequent to, and to the extent to which it was previously being held as a joint tenant nominally in the same share equal to the same joint owners, an amount that a person derives from disposing of the residential land is income of the person if the bright-line disposal date for the residential land is within 5 years of the date (the bright-line acquisition date Tenancy in common converted to joint tenancy
5C: Despite subsection (2), for residential land transferred in the case and to the extent to which the residential land is held as a joint tenant nominally in a share equal to all joint owners, acquired subsequent to, and to the extent to which it was previously being held as a tenant in common in the same share equal to the same joint owners, an amount that a person derives from disposing of the residential land is income of the person if the bright-line disposal date for the residential land is within 5 years of the date (the bright-line acquisition date Dividing from and merging with pre-existing land
5D: To the extent to which land ( land A pre-existing land pre-existing land
8: After section CZ 39(6) Residential land transferred for certain family trusts
6B: Despite subsections (2) to (5C), for residential land transferred, as described in section CB 6AB section CB 6AB Residential land transferred to Maori authorities, or similar eligible persons, for certain family trusts
6C: Despite subsections (2) to (5C), for residential land transferred, as described in section CB 6AC section CB 6AC Certain transfers of residential land included in settlement of claim under the Treaty of Waitangi
6D: Despite subsections (2) to (5C), for certain transfers of residential land, as described in section CB 6AE section CB 6AE
9: In section CZ 39 bright-line acquisition date
62: Section CZ 40 amended (Main home exclusion for bright-line: acquisition on or after 29 March 2018)
1: In section CZ 40(5) group of persons group of persons
2: In section CZ 40
a: insert group of persons
b: delete settlement
3: Subsections (1) and (2) apply to a person’s disposal of residential land, if the person acquires an estate or interest in the land on or after 27 March 2021. However, subsections (1) and (2) do not apply if the person makes an offer for the acquisition of the land, on or before 23 March 2021, that is irrevocable before 27 March 2021 and the person acquires an estate or interest in the land on or after 27 March 2021 as a result of that offer.
63: Section DB 7 amended (Interest: most companies need no nexus with income)
After section DB 7(6B) Relationship with subpart DH
6C: Subpart DH
64: Section DB 8 amended (Interest: money borrowed to acquire shares in group companies)
After section DB 8(6B) Relationship with subpart DH
6C: Subpart DH
65: Section DB 20B amended (Consideration for agreement to grant, renew, extend, or transfer leasehold estate or licence)
In section DB 20B depreciable intangible property
66: Section DB 23C amended (Revenue account property: cost of some residential land reduced)
1: In section DB 23C(1) section CB 6A(6) section CB 6A(8)
2: Replace section DB 23C(2) to (6) Excluded adjustment amount formula
2: The excluded adjustment amount for the purposes of subsection (1) is calculated using the following formula: cost × (exempted non-predominant main home days × main home percentage + exempted predominant main home days) / total days. Definition of items in formula
3: The items in the formula are defined in subsections (4) to (7). Cost
4: Cost Exempted non-predominant main home days
5: Exempted non-predominant main home days section CB 6A(11) Main home percentage
6: Main home percentage section CB 6A(11B) Exempted predominant main home days
7: Exempted predominant main home days section CB 6A(11C) Total days
8: Total days section CB 6A(11D)
67: Cross-heading above section DB 41 replaced
Replace the cross-heading above section DB 41 Corporate gifting
68: Section DB 41 amended (Charitable or other public benefit gifts by company)
1: After section DB 41(3) Exclusion
3B: This section does not apply to a local authority.
2: In section DB 41 local authority
3: Subsection (1) applies for the 2022–23 and later income years.
69: Section DF 1 amended (Government grants to businesses)
1: Replace section DF 1(1BA)
1BA: This section does not apply to the extent to which a payment described in subsection (1) is—
a: the payment of an R&D loss tax credit and the person’s expenditure is attributable to that payment:
b: an RDTI transition support payment and the person’s expenditure is attributable to that payment.
2: Subsection (1) applies for the 2019–20 and later income years.
70: Section DG 2 amended (Application of this subpart)
After section DG 2(3) Relationship with subpart DH
3B: A person is allowed a deduction for interest incurred for disallowed residential property to the extent to which the deduction is allowed under this subpart, and the deduction is not denied under subpart DH
71: Section DG 9 amended (Apportionment formula)
In section DG 9(1) sections DG 8 and DG 11 to DG 13 section DG 8
72: Section DG 10 amended (Interest expenditure rules)
1: After section DG 10(1) Relationship with subpart DH
1B: Despite this section and sections DG 11, DG 12, and DG 13, for the purposes of applying those sections,—
a: interest incurred in relation to disallowed residential property or to acquire an ownership interest in, or become a beneficiary of, an interposed residential property holder is ignored; and
b: the debt to which the interest described in paragraph (a) relates is ignored; and
c: a close company must, for an asset that is disallowed residential property, exclude from the asset value determined for the asset the lesser of—
i: the asset value that would be determined for the asset if this paragraph did not apply to the asset:
ii: the amount of the company’s debt under which the company incurs interest in relation to the asset.
2: In section DG 10 beneficiary disallowed residential property interposed residential property holder
73: Section DG 11 amended (Interest expenditure: close companies)
1: Replace section DG 11(1)﻿(b)
b: the company incurs interest expenditure for the income year that is not for disallowed residential property nor to acquire an ownership interest in, or become a beneficiary of, an interposed residential property holder.
2: In section DG 11 beneficiary disallowed residential property interposed residential property holder
74: Section DG 14 amended (Interest expenditure: non-corporate shareholders)
After section DG 14(3) Relationship with subpart DH
4: Despite subsections (1) and (2), the following are ignored for the purposes of applying this section:
a: interest, incurred by the person as shareholder in relation to shares of company A, for which a deduction is denied under section DH 8
b: the debt to which that interest relates multiplied by section DH 8(4)﻿(b)
75: New subpart DH inserted (Interest incurred in relation to certain land)
After subpart DG
DH: Interest incurred in relation to certain land
DH 1: Interest related to certain land
The purpose of this subpart is to deny a person a deduction for certain interest incurred in relation to certain land, despite any other provision in this Part. The provisions of this subpart override the general permission. In this subpart—
a: sections DH 2, DH 3, and DH 4
b: section DH 5 Section DH 6 interposed residential property percentage Section DH 7 grandparented residential interest
c: section DH 8
d: section DH 12 amount, deduction, general permission, interest, land
DH 2: When this subpart applies
This subpart applies to interest incurred on or after 1 October 2021. interest
DH 3: When this subpart applies: companies
This subpart applies to a company, if—
a: the company is a close company, and it is not an exempt Māori company:
b: the company is not a close company, and—
i: it is a residential land company; and
ii: it is not a member of a wholly-owned group:
c: the company is not a close company, and it is a residential land wholly-owned group member. company, close company, exempt Māori company, residential land company, residential land wholly-owned group member, wholly-owned group
DH 4: When this subpart does not apply: exemptions for new builds, development, social or emergency or transitional housing, and council housing
Exemption: new builds
1: This subpart does not apply to interest incurred by a person to the extent to which it is—
a: incurred in relation to new build land; and
b: incurred before the date that is 20 years after the earliest of the following dates for the new build land:
i: the date on which the code compliance certificate described in section DH 5(7)
ii: the date that, in the records of a local authority or building consent authority, the relevant conversion or remediation is recorded as having been completed section DH 5(7)﻿(d) and (e)
iii: the date that the relevant building work is entered into the records of a local authority or building consent authority as substantially completed section DH 5(7) Exemption: business relating to land under section CB 7
2: This subpart does not apply to interest incurred by a person to the extent to which it is incurred in relation to a business described in section CB 7 (Disposal: land acquired for purposes of business relating to land). Exemption: development, division, or building
3: This subpart does not apply to interest incurred by a person ( person A land Exemption: social, emergency, transitional, and support housing
4: This subpart does not apply to interest incurred by a person for land, to the extent to which the land is used by a registered community housing provider under the Public and Community Housing Management Act 1992, by a department listed in schedule 2, part 1 of the Public Service Act 2020, or by Kāinga Ora–Homes and Communities and its wholly-owned subsidiaries, solely for 1 or more of the following:
a: social housing, as defined in section 2 of the Public and Community Housing Management Act 1992:
b: temporary accommodation for people in need while they seek, or are assisted in finding, more permanent accommodation:
c: accommodation for people in need:
d: services connected with housing or accommodation described in paragraph (a), (b), or (c). Exemption: council housing
5: This subpart does not apply to interest incurred by a person for land, to the extent to which the land is used by a council-controlled organisation, as defined in section 6 of the Local Government Act 2002, or a local authority, solely for 1 or more of the following:
a: housing for people assessed by a local authority as being eligible for accommodation at less than market rental:
b: services connected with housing described in paragraph (a). Exemption: Kāinga Ora–Homes and Communities and wholly-owned subsidiaries
6: This subpart does not apply to Kāinga Ora–Homes and Communities and its wholly-owned subsidiaries. code compliance certificate, dwelling, interest, land, local authority, new build land
DH 5: Key terms
Code compliance certificate
1: Code compliance certificate Disallowed residential property
2: Disallowed residential property
a: means land in New Zealand to the extent to which—
i: it has a place configured as a residence or abode, whether or not it is used as a place of residence or abode, including any appurtenances belonging to or enjoyed with the place:
ii: the owner has an arrangement that relates to erecting a place there, configured as a residence or abode, whether or not that place is or is to be used as a place of residence or abode, including any appurtenances belonging to or enjoyed with the place:
iii: it is bare land that, under rules in the relevant operative district plan, may be used for erecting a place there, configured as a residence or abode, whether or not that place is or is to be used as a place of residence or abode, including any appurtenances belonging to or enjoyed with the place:
b: does not include land to the extent to which it is excepted residential land. Excepted residential land
3: Excepted residential land schedule 15 Exempt Māori company
4: Exempt Māori company
a: a company that is a Maori authority or eligible to be a Maori authority, if,—
i: in the case that the company is not a member of a wholly-owned group, it is not a residential land company:
ii: in the case that the company is a member of a wholly-owned group, it is not a residential land wholly-owned group member:
b: a company that is wholly-owned by a Maori authority or wholly-owned by a company or trust that is eligible to be a Maori authority, if—
i: the wholly-owned company is not a residential land wholly-owned group member:
ii: in the case that the company is wholly-owned by a trust, the wholly-owned company is not a residential land company. Grandparented transitional loans
5: Grandparented transitional loan
a: first drawn down upon before 27 March 2021 for disallowed residential property:
b: first drawn down upon on or after 27 March 2021 for acquiring disallowed residential property, if the person acquired an estate or interest in the property before 27 March 2021:
c: first drawn down upon on or after 27 March 2021 for acquiring disallowed residential property, if the acquisition of the property resulted from an offer that is—
i: made on or before 23 March 2021; and
ii: irrevocable before 27 March 2021:
d: in relation to disallowed residential property for which a previous owner (the original owner
i: every transfer of the property since the original owner acquired it meets the requirements in section FB 3A, FC 9, FC 9B(a) to (e), or FO 17
ii: the loan amounts are equal to or less than the amount of the original owner’s loan at the time the original owner transferred the property:
e: for re-financing, under a new loan facility,—
i: loan amounts described in paragraphs (a) to (d):
ii: loan amounts to which this paragraph, or paragraph (f), has previously applied:
f: for re-financing, under a new loan facility,—
i: loan amounts that would have been described in paragraphs (a) to (d) if it had been denominated in New Zealand dollars:
ii: loan amounts to which this paragraph, or paragraph (e), has previously applied. Interposed residential property holder
6: Interposed residential property holder
a: a close company for which the relevant person has voting interests or market value interests and the close company has, at the end of a quarter in the income year, an interposed residential property percentage of more than 10%:
b: a company that is not a close company for which the relevant person has voting interests or market value interests, and the company has, at any time in the income year, an interposed residential property percentage of more than 50%:
c: the trustees of a trust of which the relevant person is a direct or indirect beneficiary, if the relevant trust has, at any time in the income year, an interposed residential property percentage of more than 10%. New build land
7: New build land
a: means land to the extent to which it has a place that is configured as a self-contained residence or abode, if a code compliance certificate has been issued on or after 27 March 2020 evidencing that the place was added to the land or converted into a residence or abode; and
b: includes, for land described in paragraph (a), land exclusively used by residents of the place and also a reasonable proportion of shared areas of land, appurtenant to the place; and
c: includes land for which there is an agreement that a place that is configured as a self-contained residence or abode will be added to the land and a code compliance certificate will be issued on or after 27 March 2020 evidencing that the place was added to the land; and
d: includes land that has a place that was a hotel or motel, to the extent to which, by a conversion, it becomes places that are configured as self-contained residences or abodes, and the conversion is recorded in the records of a local authority or building consent authority as having been “completed” on or after 27 March 2020; and
e: includes land to the extent to which it has a place that is configured as a self-contained residence or abode, if the place was removed from the earthquake prone buildings register on or after 27 March 2020, and—
i: a code compliance certificate has been issued on or after 27 March 2020 evidencing that building work to remediate the place is complete:
ii: the completion of the building work to remediate the place is recorded in the records of a local authority or building consent authority as having been “completed” on or after 27 March 2020 and as having been verified by a suitably qualified engineer; and
f: includes land to the extent to which it has a place that is configured as a self-contained residence or abode, if the place was not previously weather-tight and a code compliance certificate has been issued on or after 27 March 2020 evidencing that at least 75% of the place’s cladding has been replaced. Residential land company
8: Residential land company (disqualified property + indirect disqualified property) ÷ total assets. Definition of items in formula
9: In the formula in subsection (8),—
a: disqualified property section DH 4(2) or (3)
b: indirect disqualified property
c: total assets Residential land wholly-owned group member
10: Residential land wholly-owned group member (disqualified property + indirect disqualified property) ÷ total assets. Definition of items in formula
11: In the formula in subsection (10),—
a: disqualified property section DH 4(2) or (3)
b: indirect disqualified property
c: total assets code compliance certificate, company, disallowed residential property, excepted residential land, exempt Māori company, grandparented transitional loan, income year, interposed residential property percentage, land, new build land, residential land company, residential land wholly-owned group member, trustee, wholly-owned group
DH 6: Interposed residential property percentage
Interposed residential property percentage
1: Interposed residential property percentage person disqualified assets ÷ total assets. Definition of items in formula
2: In the formula in subsection (1)—
a: disqualified assets
i: property described in section DH 4(1) to (3)
ii: for a close company, property that is subject to subpart DG (Expenditure related to use of certain assets):
b: total assets Special rule: interposed residential property holder
3: If the person is a company, the items disqualified assets total assets Further special rule
4: For the purposes of this section, section DH 8 interposed residential property holder close company, disallowed residential property, interposed residential property holder, market value interest, interposed residential property percentage, look-through company, voting interest
DH 7: Grandparented residential interest
Grandparented residential interest
1: Grandparented residential interest
a: interest for the loan’s principal to the extent to which the interest is incurred for disallowed residential property:
b: if the loan (the underlying loan notional loan principal Grandparented residential interest: loan portion when tracing cannot reasonably be determined: initial notional loan balance
2: For the purpose of subsection (1)﻿(b), the notional loan principal is calculated using the following formula, treating a negative amount as zero: outstanding borrowings − allowed property. Definition of items in formula
3: In the formula in subsection (2),—
a: outstanding borrowings allowed property
b: allowed property
i: the value of the person’s assets, determined as at 26 March 2021, that is not disallowed residential property, but ignoring assets that are not used in deriving assessable income; and
ii: to the extent to which the person’s assets are disallowed residential property described in section DH 4 Grandparented residential interest: repayments
4: A repayment of the underlying loan is applied against the notional loan principal to reduce it, to a minimum of zero, unless the source of the repayment is the disposal of allowed property described in subsection (3)﻿(b). If the source of the repayment is the disposal of allowed property, then only the amount of the repayment that is in excess of the 26 March 2021 value of the allowed property is applied against the notional loan principal to reduce it, to a minimum of zero. assessable income, disallowed residential property, grandparented transitional loan, interest, loan
DH 8: Deduction not allowed
Deduction denied
1: A person is denied a deduction for interest if and to the extent to which the interest is—
a: incurred for disallowed residential property, but excluding interest for a grandparented transitional loan:
b: grandparented residential interest:
c: incurred to acquire an ownership interest in, or become a beneficiary of, an interposed residential property holder:
d: incurred to refinance a loan, interest for which is described in paragraph (a) or (c). Denial limited: grandparented residential interest
2: The amount of the deduction denied for grandparented residential interest is limited to the following percentages for the following periods: A small table of periods and applicable percentages of interest denied. Period that grandparented residential interest is incurred Percentage denied 1 October 2021 to 31 March 2022 25% 1 April 2022 to 31 March 2023 25% 1 April 2023 to 31 March 2024 50% 1 April 2024 to 31 March 2025 75% On and after 1 April 2025 100% Denial limited using quarterly calculation periods: owners of interposed residential property holders
3: The amount of the deduction denied for interest (the interest interposed interest × quarterly interposed residential property percentage. Definition of items in formula
4: In the formula in subsection (3)—
a: interposed interest
b: quarterly interposed residential property percentage section DH 6 close company, disallowed residential property, deduction, grandparented residential interest, grandparented transitional loan, income year, interest, interposed residential property holder, interposed residential property percentage
DH 9: Exception to limited denial of deductions: loans denominated in foreign currencies
Despite section DH 8(2) and (3) section DH 8(1) deduction, interest, loan
DH 10: Limited denial of deductibility: simplified calculation of interest affected
Application of section
1: This section applies to a person who chooses to rely on the method of calculation it contains for calculating interest incurred under some loans and subject to limited denial of deductibility under this subpart. Purpose of section
2: This section is intended to simplify the calculation, for a loan that may be drawn down in several tranches, of the amount of interest incurred in the period (the affected interest period
a: described in section DH 8(1)
b: subject to limited denial of deductibility under section DH 8(2) Interest affected by limited denial of deductibility
3: For a period in the affected interest period, the amount of interest incurred under the loan that is affected by limited denial of deductibility under section DH 8(2) is the total amount of interest that can be attributed for instants in the period to the amount of the loan that is the lesser, for the instant in the period, of—
a: the amount (the initial loan balance
b: the amount (the affected loan balance Initial loan balance
4: The initial loan balance is the amount of the loan that is allocated to disallowed residential property for the date (the start date
a: the end of 26 March 2021, if paragraphs (b) and (c) don’t apply; or
b: the date on which the loan is drawn down, if the loan is a grandparented transitional loan under paragraph (b) or (c) of the definition of that term and is drawn down on or after 27 March 2021; or
c: the date on which the loan is drawn down if the acquisition of the property is described in section FC 9B(a) to (f) Affected loan balance
5: The affected loan balance is the amount of the loan that is a grandparented transitional loan at an instant (the balance time initial loan balance + (advances − repayments) − (unrelated advances − unrelated repayments). Definition of items in formula
6: In the formula in subsection (5)—
a: initial loan balance
b: advances
c: repayments
d: unrelated advances
e: unrelated repayments section DH 7(4) disallowed residential property, interest, loan
DH 11: Denied amounts: treatment upon disposal of disallowed residential property
Disposal subject to section CB 6A or CZ 39: denied amount included as cost
1: An amount that relates to disallowed residential property and is denied under section DH 8 Disposal not subject to section CB 6A or CZ 39: denied amount allocated under section EL 4 or EL 7
2: An amount that relates to disallowed residential property and is denied under section DH 8
a: is income under a section other than section CB 6A or CZ 39; and
b: is not income under section CB 6A or CZ 39. deduction, disallowed residential property, income, income year
DH 12: Valuation
Land not used in undertaking creating new build land
1: For the purposes of this subpart, a person’s land, excluding land described in section DH 4(2) and (3)
a: valued at its most recent capital value or annual value set by a local authority; or
b: if the land was acquired after the most recent local authority valuation, it is valued at its acquisition cost or, in the case of an associated person acquisition, its market value. Property used in undertaking
2: For the purposes of this subpart, to the extent to which subsection (1) does not apply for a person’s property, the property is—
a: valued using its tax book value; or
b: if the person prepares financial accounts according to relevant accounting standards or legislative standards, valued using the financial accounts’ valuation. associated person, land, local authority, market value
76: Section DT 1A amended (Ring-fenced allocations)
In section DT 1A(4) and IP 3 IP 3, and IP 3B
77: Section DV 18B amended (Cost base for shares when debt forgiven within economic group)
In the heading to section DV 18B forgiven remitted
78: Section EE 6 amended (What is depreciable property?)
In section EE 6 research and development activities research and development activity
79: Section EE 40 amended (Transfer of depreciable property on or after 24 September 1997)
1: In section EE 40(2) not applied. not applied, or if the rate for the item was not 0% in the case of a building with a rate of 0%.
2: In section EE 40(3) acquired it. acquired it, or would have been allowed a deduction if the rate for the item was not 0% in the case of a building with a rate of 0%.
3: Subsections (1) and (2) apply for the 2011–12 and later income years.
80: Section EE 44 amended (Application of sections EE 48 to EE 51)
In section EE 44(2)﻿(d) insurance or compensation
81: Section EE 47 amended (Events for purposes of section EE 44)
1: In the heading to section EE 47(4) or grandparented structure
2: In section EE 47(4)﻿(a) or grandparented structure
3: In section EE 47(4)﻿(b) or grandparented structure
4: Subsections (1), (2), and (3) apply for the 2020–21 and later income years.
82: Section EE 48 amended (Effect of disposal or event)
1: In section EE 48(3)﻿(a) or grandparented structure
2: Subsection (1) applies for the 2020–21 and later income years.
83: Section EH 2 replaced (Income Equalisation Reserve Account)
Replace section EH 2
EH 2: Deposits to be paid into Crown Bank Account
Every deposit a person makes with the Commissioner under a scheme referred to in section EH 1(2)—
a: is public money; and
b: must be paid into a Crown Bank Account. Commissioner, deposit, pay, person
84: Section EJ 10B amended (IFRS leases)
1: In section EJ 10B(6)
a: replace a deduction income
b: replace has income is allowed a deduction
2: Subsection (1) applies for income years starting on or after 1 January 2019.
85: Section EK 1 replaced (Environmental Restoration Funds Account)
Replace section EK 1
EK 1: Payment to Crown Bank Account
Every payment a person makes to the Commissioner under section EK 2—
a: is public money; and
b: must be paid into a Crown Bank Account. Commissioner, pay
86: Section EL 3 amended (Definitions for this subpart)
1: In section EL 3 residential income
ab: income which is the amount that the person derives under section CC 3 (Financial arrangements) for the income year in relation to a loan, denominated in a foreign currency, to the extent to which that loan relates to their residential portfolio:
2: Subsection (1) applies for the 2022–23 and later income years.
87: Section EL 14 amended (Continuity rules for companies)
In section EL 14 and IP 3 IP 3, and IP 3B
88: Section EM 1 amended (Australian non-attributing shares and attributing FDR method interests)
1: Replace section EM 1(2)﻿(c) and (d)
c: section EM 4
d: section EM 5
db: section EM 5B
2: In section EM 1(3) fair dividend rate hedge portions. fair dividend rate hedge portions. However, subpart EW determines a person’s income and expenditure for the portion of a hedge that is not a fair dividend rate hedge portion.
89: Section EM 3 amended (What hedges does this subpart apply to?)
1: After the heading to section EM 3 General rule
2: In section EM 3(d) into; and into or is acquired at its fair value; and
3: In section EM 3 Exception
2: Despite subsection (1), this subpart applies and a person’s hedge is an eligible hedge section EM 5(4) and (5)
a: is a contract to conditionally or unconditionally acquire or dispose of any currency in return for any other currency, or is a swap with legs denominated in any currency; and
b: meets the requirements of subsection (1)﻿(b) to (e); and
c: is entered into only to rebalance currency exposures for the person’s other eligible hedges.
90: Section EM 4 replaced (Irrevocable elections)
Replace section EM 4
EM 4: Elections
Elections
1: This subpart applies to a person’s eligible hedges, to the extent to which the hedges have fair dividend rate hedge portions as a result of an election under this section. The portion of a person’s eligible hedge that is not a fair dividend rate hedge portion does not give rise to income or expenditure under this subpart, despite any election under this section for the eligible hedge. To the extent to which this subpart does apply to calculate income and expenditure ( see Hedge-by-hedge: specific
2: A person may choose to use a hedge-by-hedge method under section EM 5 Hedge-by-hedge: general
3: A person may choose to use a hedge-by-hedge method under section EM 5 Specific: effect
4: An election under subsection (2) is irrevocable for the life of the relevant hedge, unless the person may choose and does choose, under subsection (6), to use the portfolio method. General: effect
5: An election under subsection (3) may be changed before the relevant hedge and any hedge of the hedge is first entered into or acquired by the person, but is irrevocable for the life of the relevant hedge, unless the person may choose and does choose, under subsection (6), to use the portfolio method. Portfolio
6: A person that uses a unit valuation period section EM 5B Portfolio: effect
7: An election under subsection (6) is irrevocable for 2 years unless the Commissioner notifies the person that the person may revoke earlier. An election applies for all eligible hedges post-election, but does not have to be made before a relevant hedge is entered into. Also, a new election under subsection (6) cannot be made until 12 months after the end of an old election under subsection (6), unless the Commissioner notifies the person that the person may make a new election earlier. Commissioner, eligible hedge, fair dividend rate hedge portion, income
91: Section EM 5 amended (Fair dividend rate hedge portions)
1: In the heading to section EM 5 portions portions: hedge-by-hedge methods
2: Replace section EM 5(1) Fair dividend rate hedge portions
1: This section calculates the maximum fair dividend rate hedge portions for a person’s eligible hedges on a hedge-by-hedge basis under an election provided by section EM 4
3: Repeal section EM 5(2)
4: Replace section EM 5(3) Choice of methods
3: A person may choose to use either the method in subsections (4) and (5), or the method in subsections (9) to (10D), to calculate the maximum or minimum, as the case may be, fair dividend rate hedge portions for all of the person’s eligible hedges when the relevant hedge is first entered into or acquired. They may not choose to use, for example, the method in subsections (4) and (5) for some hedges and the method in subsections (9) to (10D) for other hedges.
5: In section EM 5(4) formula method
6: In section EM 5(4) maximum maximum or minimum, as the case may be,
7: In section EM 5(4) first entered into first entered into or acquired
8: Replace section EM 5(5)﻿(a)
a: eligible currency assets
i: a person’s assets described in section EM 1(1)﻿(a) and (b) that are denominated in the same currency (the calculation currency
ii: if the person chooses and is a qualifying hedge fund, their interests in assets that are owned by a multi-rate PIE, described in section EM 1(1)﻿(a) and (b), and denominated in the calculation currency:
9: Repeal section EM 5(6) and (7)
10: Replace section EM 5(8)
8: If the amount calculated under subsection (4) or (9) is less than zero, then the maximum or minimum, as the case may be, fair dividend rate hedge portion for the relevant calculation hedge is zero.
11: Replace section EM 5(9) and (10) Second method
9: The maximum or minimum, as the case may be, fair dividend rate hedge portion for a person’s eligible hedge (the calculation hedge FDR gross amount × apportioned current hedge amount ÷ calculation hedge amount. Definition of items in formula
10: In the formula in subsection (9), all items are expressed in New Zealand currency, and—
a: FDR gross amount
b: apportioned current hedge amount
c: calculation hedge amount FDR gross amount
10B: For the purposes of subsection (10), the FDR gross amount
a: zero if the formula in this subsection does not calculate, when the hedge is first entered into or acquired, an amount; or
b: the lesser of 1 and the amount calculated using the following formula when the hedge is first entered into or acquired: (1.05 × eligible currency assets − FDR hedges amount) ÷ apportioned current hedge amount. Definition of items in FDR gross formula
10C: In the formula in subsection (10B)﻿(b), all items are expressed in New Zealand currency, and—
a: eligible currency assets
b: FDR hedges amount
c: apportioned current hedge amount Apportioned current hedge amount
10D: The apportioned current hedge amount
a: if the calculation hedge is not a hedge of a hedge, or is a hedge of a hedge and paragraph (b) does not apply, the amount is the lesser of the following amounts:
i: the amount of foreign currency hedged by the calculation hedge:
ii: the amount of foreign currency that is hedged by a person’s hedges including the calculation hedge less less
b: the negative of the amount of foreign currency that is hedged by a person’s FDR hedge portions excluding the calculation hedge, if—
i: the calculation hedge is a hedge of a hedge; and
ii: the amount of foreign currency that is hedged by a person’s FDR hedge portions excluding the calculation hedge plus equals
12: In section EM 5 non-eligible assets
92: New section EM 5B inserted (Fair dividend rate hedge portions: portfolio method)
After section EM 5
EM 5B: Fair dividend rate hedge portions: portfolio method
Fair dividend rate hedge portions
1: This section calculates the fair dividend rate hedge portions for a person’s eligible hedges on a portfolio basis under an election provided by section EM 4 Lowest amount
2: The fair dividend rate hedge portion is the lowest of the amounts described in subsections (4) and (6). Period calculation
3: The fair dividend rate hedge portion is applied for a period of 1 month or less, as chosen by the person, for all of their eligible hedges. The fair dividend rate hedge portion is calculated before the start of the elected period, and the elected period is irrevocable, and is applied for all of their eligible hedges post-election, for the income year. First formula
4: For the purposes of subsection (2), the amount is calculated using formula— 1 − (non-eligible assets ÷ portfolio hedges amount). Definition of items in formula
5: In the formula in subsection (4), all items are expressed in New Zealand currency, and—
a: non-eligible assets
b: portfolio hedges amount Second formula
6: For the purposes of subsection (2), the amount is calculated using the formula— (1.05 × eligible assets) ÷ portfolio hedges amount. Definition of items in formula
7: In the formula in subsection (6), all items are expressed in New Zealand currency, and—
a: eligible assets
b: portfolio hedges amount eligible hedge, fair dividend rate hedge portion, hedge, non-eligible assets, qualifying hedge fund
93: Section EM 6 amended (Income and expenditure for fair dividend rate hedge portions)
1: In section EM 6(2) FDR portions’ value (FDR portions’ value + period gain − period loss)
2: After section EM 6(3)﻿(a)
ab: period gain
ac: period loss
94: Section EM 7 amended (Quarterly test of fair dividend rate hedge portions)
1: Replace section EM 7(1)
1: A person must use the first formula, in subsection (2), on a day (the calculation day
2: In section EM 7(4) last day calculation day
3: After section EM 7(5) Relationship with subject matter
5B: This section overrides section EM 5 section EM 5B
4: In section EM 7(6) last day calculation day
95: Section EM 8 amended (Some definitions)
In section EM 8 investor interest non-eligible assets
a: means assets that are denominated in a foreign currency and not described in section EM 1(1)﻿(a) and (b); but
b: does not include—
i: cash assets totalling less than 5% of the total market value of a person’s assets described in section EM 1(1)﻿(a) and (b), or, at the election of the person, foreign cash assets that relate directly to assets described in section EM 1(1)﻿(a) and (b) and to FDR hedge portions:
ii: eligible hedges:
iii: New Zealand securities listed on a recognised exchange and denominated in a foreign currency to the extent to which the securities are unhedged as to foreign currency qualifying hedge fund
96: Section EW 5 amended (What is an excepted financial arrangement?)
1: After section EW 5(3) Cryptocurrency
3BA: A cryptocurrency is an excepted financial arrangement if the cryptocurrency does not meet the requirements of subsection (3BAB). Exception: cryptocurrency producing specified returns on purchase price
3BAB: A cryptocurrency is not an excepted financial arrangement if a consequence of ownership of the cryptocurrency is that the owner receives or is entitled to receive, during the period of ownership, amounts that are determined—
a: by reference to the quantity or value of the cryptocurrency; and
b: on a basis that is known by the owner in advance; and
c: not by reference to the profits of a business activity.
2: After section EW 5(13) Option over cryptocurrency
13B: An option to acquire or to dispose of cryptocurrency is an excepted financial arrangement.
97: Section EW 46C amended (Consideration when debt forgiven within economic group)
1: In the heading to section EW 46C forgiven remitted
2: In section EW 46C(1) forgiven remitted
3: Replace section EW 46C(1)﻿(a)
a: the creditor is a member of the same wholly-owned group of companies as the debtor and—
i: the debtor is a New Zealand resident company:
ii: the debtor carries on a business in New Zealand through a fixed establishment in New Zealand and the creditor or an associated person cannot deduct, under this Act or a taxation law of a country or territory outside New Zealand, an amount in relation to the remission against income:
4: In section EW 46C(2)﻿(a) forgiven remitted
5: In section EW 46C(2)﻿(ab) forgiveness remission
6: In section EW 46C(2)﻿(b)﻿(ii) the amount that the trust forgives the debtor the amount of the trust’s debt that is remitted for the debtor
7: In section EW 46C(2)﻿(b)﻿(ii) the amount that the single creditor group forgives the debtor the amount of the single creditor group’s debt that is remitted for the debtor
8: In section EW 46C(2)﻿(b)﻿(ii) forgiven remitted
9: In section EW 46C(4) the creditor forgives it it is remitted
10: In section EW 46C(5) the creditor forgives it it is remitted
11: In section EW 46C(6) proportional debt ratio forgiven remitted
12: Subsections (1), (2), (4), (5), (6), (7), (8), (9), (10), and (11) apply for a person for the 2008–09 and later income years, except for an income year before the 2015–16 income year for which the person takes a tax position in a return of income that is inconsistent with the amendments made by subsections (1), (2), (4), (5), (6), (7), (8), (9), (10), and (11).
98: Section EZ 23B amended (Property acquired after depreciable property affected by Canterbury earthquakes)
1: In section EZ 23B(7)﻿(d) , grandparented structure,
2: In section EZ 23B(10)﻿(b)﻿(i) or grandparented structure
3: In section EZ 23B(11B) or grandparented structures
4: In section EZ 23B grandparented structure
5: Subsections (1), (2), (3), and (4) apply for the 2020–21 and later income years.
99: Section EZ 23BB amended (Interest in property acquired after depreciable property affected by Canterbury earthquakes)
1: In section EZ 23BB(11)﻿(b)﻿(i) or grandparented structure
2: In section EZ 23BB grandparented structure
3: Subsections (1) and (2) apply for the 2020–21 and later income years.
100: Section EZ 23BC amended (Property acquired after depreciable property affected by Hurunui/Kaikōura earthquakes)
1: In section EZ 23BC(8)﻿(b) , grandparented structure,
2: In section EZ 23BC(11)﻿(b)﻿(i) or grandparented structure
3: In section EZ 23BC(11)﻿(b)﻿(iii) or grandparented structures
4: In section EZ 23BC(11)﻿(b)﻿(iv) or grandparented structures
5: In section EZ 23BC(11)﻿(b)﻿(vii) , grandparented structure,
6: In section EZ 23BC grandparented structure
7: Subsections (1), (2), (3), (4), (5), and (6) apply for the 2020–21 and later income years.
101: New section EZ 23BD inserted (Loss on disposal of grandparented structure)
1: After section EZ 23BC
EZ 23BD: Loss on disposal of grandparented structure
1: Despite section EE 48(3), subsection (2) of that section applies if the item is a grandparented structure.
2: In this section, grandparented structure
a: barns, including barns (drying):
b: carparks (buildings):
c: chemical works:
d: fertiliser works:
e: powder drying buildings:
f: site huts. grandparented structure
2: Subsection (1) applies for the 2020–21 and later income years.
102: Section EZ 73 amended (Insurance for Canterbury earthquake damage causing disposal: optional timing rule for income, deductions)
In section EZ 73 grandparented structure
103: Section FB 3A amended (Residential land)
In section FB 3A(3) CB 6A(1) to (5) and CZ 39(2) to (6) CB 6A
104: New cross-heading and sections FC 9B and FC 9C inserted
After section FC 9 Exceptions for residential land transferred to trustees of certain trusts or other entities
FC 9B: Residential land: certain transferors
For the purposes of calculating a person’s net income in relation to the disposal of residential land for which they derive an amount of income under section CB 6A or CZ 39
a: a person transferring land to a trustee (the recipient section CB 6AB(1)
b: a trustee transferring land to an original settlor (also a recipient section CB 6AB(2)
c: a person in a different capacity (also a recipient section CB 6AB(4)
d: a person transferring land to a Māori trustee (also recipient section CB 6AC(1)
e: a Māori trustee transferring land to an original settlor (also a recipient section CB 6AC(2)
f: a transferor transferring land to a recipient, described in section CB 6AE cost, dispose, income, net income, residential land
FC 9C: Residential land: certain recipients
For the purposes of calculating a person’s net income in relation to the disposal of residential land for which they derive an amount of income under section CB 6A or CZ 39 section FC 9B(a), (b), (c), (d), or (e) transferor acquire, cost, dispose, income, net income, residential land
FC 9D: Residential land: certain recipients of Treaty of Waitangi land
For the purposes of calculating a person’s ( person A’s section CB 6A or CZ 39 CB 6AE acquire, cost, dispose, income, net income, residential land
105: Section FH 11 amended (Residents, or non-residents with deducting branches, having expenditure funding overseas hybrid mismatches)
1: Replace section FH 11(1) When this section applies
1: This section applies for a person (the funder
a: a New Zealand resident who makes a payment (the original payment
b: a deducting branch in New Zealand of a non-resident, who is resident in a country or territory outside New Zealand that does not have legislation having the same effect as this subpart, and who makes a charge to the deducting branch that meets the requirements of subsection (1B). Requirements for denial of deduction for original payment or charge
1B: An original payment or a charge by a funder meets the requirements of this subsection if—
a: the original payment or charge provides funds for a payment (the funded payment payer payer jurisdiction payee payee jurisdiction
b: the funds are provided to the payer directly, or indirectly through a series of further transactions (the intermediate transaction chain
c: for each transaction in an intermediate transaction chain, each country or territory with tax laws that govern the transaction does not have legislation having the same effect as this subpart; and
d: a deduction for the original payment, or the charge, would be allowed for the funder in the absence of this section and sections FH 8 to FH 10; and
e: the original payment, or the charge, is made under a structured arrangement giving rise to the hybrid mismatch referred to in paragraph (f) or the funder and the payer, when the original payment is incurred or the charge is made, are members of a control group; and
f: the funded payment gives rise to a hybrid mismatch; and
g: the payee jurisdiction does not have hybrid mismatch legislation.
2: In section FH 11(2) The Subject to subsections (5) and (6), the
3: Replace section FH 11(4)
4: Under this subsection, the amount of the denial is the amount of the payment by the funder that can fairly and reasonably be treated as providing, directly or indirectly, funds for an amount of the funded payment that, if hybrid mismatch legislation were applied by the payer jurisdiction, would be disallowed as a deduction against income or equivalent tax relief.
4: Replace section FH 11(5) Tracing funding for funded payment, quantifying amount of deduction denied
5: Whether a payment or charge by a funder provides funds for a funded payment under subsection (1B)﻿(a) and, if so, the amount under subsection (4) that the funder is denied as a deduction, are determined consistently with the approaches described in chapter 8 of the hybrid mismatch report and chapter 5 of the branch mismatch report.
5: After section FH 11(5) Deduction allowed in later income year
6: A deduction (the denied deduction
a: the payer jurisdiction would allow a deduction in the later income year for the funded payment if hybrid mismatch legislation were applied by the payer jurisdiction; and
b: the denied deduction meets the requirements of section FH 12(8) to be carried forward to the later income year as a mismatch amount.
6: Subsections (1), (2), (4), and (5) apply for income years beginning on or after 1 July 2018.
7: Subsection (3) applies for a payment in an income year beginning on or after 1 January 2020.
8: Despite subsections (6) and (7), subsections (1), (2), (3), (4), and (5) do not apply to a person in relation to a tax position taken by the person—
a: for an income year beginning before the date on which this Act receives the Royal assent; and
b: relying on section FH 11 as it was before the amendments made by subsections (1), (2), (3), (4), and (5).
106: Section FH 15 amended (Definitions)
1: In section FH 15(1) hybrid mismatch hybrid mismatch payer jurisdiction
2: In section FH 15(1) hybrid mismatch legislation a provision this subpart or a provision
3: Subsections (1) and (2) apply for income years beginning on or after 1 July 2018. However, subsections (1) and (2) do not apply to a person in relation to a tax position taken by the person—
a: for an income year beginning before the date on which this Act receives the Royal assent; and
b: relying on the definitions of hybrid mismatch hybrid mismatch legislation
107: Section FM 8 amended (Transactions between group companies: income)
1: Replace section FM 8(3)﻿(d)
d: the amount of a dividend derived by a local authority.
2: Subsection (1) applies for the 2022–23 and later income years.
108: Section FM 15 amended (Amortising property and revenue account property)
1: After section FM 15(2) Acquisition by company B
2B: For the purposes of sections CB 6A and CZ 39
2: In section FM 15 bright-line acquisition date land
109: Section FO 2 amended (Amalgamation rules)
In section FO 2(b) CD 43(23) and (24) CD 43(24) and (25)
110: Section FO 21 amended (When amalgamating companies are parties to financial arrangements: economic groups)
In section FO 21(1)﻿(b) forgiven remitted
111: Section GB 3 amended (Arrangements for carrying forward loss balances: companies’ ownership)
In section GB 3(1)﻿(c) Continuity Ownership continuity
112: New cross-heading and sections GB 53B and GB 53C inserted
After section GB 53 Interest incurred in relation to certain land
GB 53B: Interposed residential property percentage: increases or decreases in value
When this section applies
1: This section applies when there is an increase or decrease in value that affects, or would affect the result of a calculation of a person’s interposed residential property percentage, defined in section DH 6
a: caused by an action or omission that has, or would have the purpose or effect of defeating the intent and application of subpart DH
b: produced by an arrangement that has a purpose or effect of defeating the intent and application of subpart DH Effect of increase or decrease
2: The effect of the increase or decrease in value on the calculation of a person’s interposed residential property percentage is ignored. arrangement, interposed residential property percentage
GB 53C: On-lending at lower rate
When this section applies
1: This section applies when, under an arrangement, a person borrows money and on-lends it to an associated person at a lower rate than that at which the person borrowed it, if—
a: the associated person, or a person associated with the associated person, owns disallowed residential property; and
b: the arrangement has a purpose or effect, not being a merely incidental purpose or effect, of defeating the intent and application of subpart DH Lower rate used
2: The amount of interest incurred by the person for the purposes of Part D arrangement, associated person, disallowed residential property, interest, money
113: Section GC 3B amended (Disposals of emissions units)
1: In section GC 3B(2)﻿(c)﻿(iii) transferee. transferee:
2: After section GC 3B(2)﻿(c)
d: the cancellation of the unit.
3: Subsections (1) and (2) apply for a person and an income year beginning on or after 1 January 2009, except for an income year for which the person chooses to rely on a tax position taken before the date on which this Act receives the Royal assent.
114: Section GC 18 amended (Loan features disregarded by rules for transfer pricing arrangements)
In section GC 18(4)﻿(b)﻿(ii) the amount of the borrowing the amount of the borrower’s cross-border related borrowing, including the borrowing,
115: Section HF 7 replaced (Taxable Maori authority distributions)
Replace section HF 7
HF 7: Taxable Maori authority distributions
A Maori authority distribution is a taxable Maori authority distribution
a: the source is income of the Maori authority that is—
i: derived by the Maori authority in the 2004–05 income year or a later income year; and
ii: not exempt income of the Maori authority; and
b: it is not a cash distribution made to a member in relation to a notional distribution for which the Maori authority has made an election under section OB 82 (When and how co-operative company makes election). exempt income, income, income year, Maori authority, member, taxable Maori authority distribution 2004 No 35 s HI 5(2), (3)
116: Section HR 3 amended (Definitions for section HR 2: group investment funds)
In section HR 3(6A)﻿(f) the Housing New Zealand Corporation Kāinga Ora–Homes and Communities
117: Section HR 9BA amended (Elections to treat debt funding special purpose vehicles as transparent)
Replace section HR 9BA(1)
1: An originator makes an election referred to in section HR 9 by—
a: after the formation of the debt funding special purpose vehicle and before the return of income referred to in paragraph (b), notifying the Commissioner that the originator chooses to have the liabilities and obligations referred to in section HR 9 that the debt funding special purpose vehicle would have in the absence of the election; or
b: in the originator’s first return of income filed after the first transfer of assets by the originator to the debt funding special purpose vehicle, returning income derived and expenditure incurred by the debt funding special purpose vehicle.
118: Section IA 5 amended (Restrictions on companies’ loss balances carried forward: continuity of ownership)
1: In section IA 5(4) IB 3 or IP 3 IB 3, IP 3, or IP 3B
2: Subsection (1) applies in relation to a breach of the requirements for continuity of ownership of section IA 5 if the breach occurs during the 2020–21 income year or a later income year.
119: Section IB 3 amended (When tax loss components of companies carried forward despite ownership continuity breach)
1: Replace section IB 3(3)﻿(b) and (c)
b: the company has had another ownership continuity breach—
i: since the later of the beginning of the earlier income year and the beginning of the 2020–21 income year; and
ii: in relation to which the requirements of subsection (2)﻿(b) and (c) for the carrying forward to the tax year of the tax loss component are not met:
c: the earlier income year is before the 2020–21 income year and the tax loss component could not be carried forward to the 2020–21 tax year in the absence of this subpart.
2: In section IB 3(5)﻿(a) carried on by the company that the company carried on immediately before the beginning of the business continuity period
3: In section IB 3(5)﻿(b) technology relating to a business activity that the company carried on immediately before the beginning of the business continuity period
4: Replace section IB 3(5)﻿(c)
c: caused by an increase in the scale of a business activity that the company carried on immediately before the beginning of the business continuity period, including as a result of the company entering a new market for a product or service that it produced or provided at that time:
5: After section IB 3(5) Exclusion: mining net losses
5B: This section does not apply to an amount referred to in section IA 7(7) (Restrictions relating to ring-fenced tax losses) that is treated by subsection (1B) of that section as if it were a tax loss component.
6: In section IB 3 amount
7: Subsections (1), (2), (3), (4), and (5) apply in relation to a breach of the requirements for continuity of ownership of section IA 5
120: Section IB 5 amended (When group companies treated as single company)
1: In section IB 5 Companies New Zealand resident companies
2: In section IB 5 New Zealand resident
3: Subsection (1) applies in relation to a breach of the requirements for continuity of ownership of section IA 5
121: Section ID 5 amended (Pre-consolidation losses on exit: part-year rule)
1: In section ID 5(2) section IP 3(3) (Continuity breach: tax loss components of companies carried forward) section IP 3(3) or IP 3B(3) (which relate to the carrying forward of tax losses for companies)
2: Subsection (1) applies for the 2020–21 and later income years.
122: Section IP 1 amended (When this subpart applies)
1: In section IP 1(1)
a: words before the paragraphs, replace either or both 1 or more of
b: paragraph (b), replace (a continuity breach (an ownership continuity breach
c: after paragraph (b), insert:
c: when a company to which section IB 3 (When tax loss components of companies carried forward despite ownership continuity breach) applies breaches, during an income year, the requirement of section IB 3(2)﻿(b) or (c) for the carrying forward of a tax loss component to the tax year that corresponds to the income year (a business continuity breach
2: In the heading to section IP 1(2) IA, IC, IA, IB, IC,
3: In section IP 1(2) IA, IC, IA, IB, IC,
4: In section IP 1 company income year tax loss component
5: Subsections (1), (2), and (3) apply for the 2020–21 and later income years.
123: Section IP 3 amended (Continuity breach: tax loss components of companies carried forward)
In the heading to section IP 3 Continuity Ownership continuity
124: New section IP 3B inserted (Business continuity breach: tax loss components of companies carried forward)
1: After section IP 3
IP 3B: Business continuity breach: tax loss components of companies carried forward
When this section applies
1: This section applies for the purposes of section IA 4 (Using loss balances carried forward to tax year) if a tax loss component of a company would have been carried forward under section IB 3 (When tax loss components of companies carried forward despite ownership continuity breach) to a tax year but for a breach or breaches, during the income year that corresponds to the tax year, of either or both of the requirements of section IB 3(2)﻿(b) and (c). Tax loss components for earlier income years
2: Despite the breach or breaches, the tax loss component is carried forward to the tax year to the extent to which—
a: the requirements of section IB 3(2)﻿(b) and (c) would be met if the relevant period described in section IB 4 (Business continuity period) included only part of the income year of the company that corresponds to the tax year; and
b: the company has net income for part of the corresponding income year; and
c: the company provides the Commissioner with adequate financial statements under section IP 6 calculating the amount of the company’s net income for the relevant part of the corresponding income year. Limit on tax loss components carried forward
3: The total tax loss components carried forward under subsection (2) must be no more than the amount calculated under subsection (2)﻿(b) and (c), although the amount may be increased if section IP 5 applies. amount, Commissioner, company, corresponding income year, income year, net income, tax loss component, tax year
2: Subsection (1) applies for the 2020–21 and later income years.
125: Section IP 4 amended (Breach in income year in which tax loss component arises)
1: In section IP 4(2)﻿(b) company A , or continuity of company A’s business activities,
2: Subsection (1) applies for the 2020–21 and later income years.
126: Section IP 5 amended (Breach in tax year in which loss balance is grouped)
1: In section IP 5(2)﻿(b) company A , or continuity of company A’s business activities,
2: Subsection (1) applies for the 2020–21 and later income years.
127: Section IP 6 amended (Financial statements required)
1: After section IP 6(1) Financial statements required from company: section IP 3B
1B: For the purposes of this subpart, a company must provide the Commissioner with adequate financial statements under section IP 3B(2)﻿(c)
2: Subsection (1) applies for the 2020–21 and later income years.
128: Section IZ 8 amended (Election to use net loss for 2019–20 or 2020–21 year as tax loss in preceding year)
In section IZ 8(12) Continuity Ownership continuity
129: Section LB 1B amended (Treatment of tax credits of certain companies with shareholders who are employees)
In section LB 1B(3) ICA refund of income tax ICA refund of tax or transfer from account
130: Section LT 1 amended (Tax credits for petroleum miners)
1: In section LT 1(1)﻿(a)﻿(ii) ); and ):
2: After section LT 1(1)﻿(a)﻿(ii)
iii: incurred expenditure in plugging and abandoning an exploratory well for which they are entitled to a deduction; and
3: In section LT 1(2) for an amount less than or equal to the amount (the current loss credit
4: In section LT 1(3)﻿(a) subsection (1)﻿(a)﻿(i) and (ii) subsection (1)﻿(a)﻿(i) to (iii)
5: Replace section LT 1(4) Maximum amounts
4: The amount of the credit must not be more than the lesser of—
a: the amount of total tax given by subsection (4B); and
b: the amount calculated using the formula— current loss credit – exploration abandonment excess. Total tax
4B: In subsection (4)﻿(a), total tax is the amount of income tax paid by,—
a: for a petroleum miner, the petroleum miner and any consolidated group of which they are a member on net income derived for all earlier tax years, calculated on a year-by-year basis and aggregated:
b: for a farm-in party, the farm-in party and any consolidated group of which they are a member on net income derived for all earlier tax years, calculated on a year-by-year basis and aggregated. Current loss credit
4C: In the formula in subsection (4)﻿(b), the item current loss credit Exploration abandonment excess
4D: In the formula in subsection (4)﻿(b), the item exploration abandonment excess
a: if the amount of the net loss described in subsection (1)﻿(c) is less than or equal to the total amount of the deductions described in subsection (1)﻿(a)﻿(i) and (ii), zero; or
b: if the amount of the net loss described in subsection (1)﻿(c) is equal to or exceeds the total amount of the deductions described in subsection (1)﻿(a)﻿(i) to (iii) and the amount described in subsection (1)﻿(a)﻿(iii) is greater than zero, the amount calculated by multiplying the amount referred to in subsection (1)﻿(a)﻿(iii) for the income year by the tax rate referred to in subsection (3)﻿(b) and subtracting the amount of income tax (the post-abandonment tax
i: for a petroleum miner, the petroleum miner and any consolidated group of which they are a member on net income derived for tax years beginning after drilling for the purposes of exploration ceased in the exploratory well, calculated on a year-by-year basis and aggregated:
ii: for a farm-in party, the farm-in party and any consolidated group of which they are a member on net income derived for tax years beginning after drilling for the purposes of exploration ceased in the exploratory well, calculated on a year-by-year basis and aggregated; or
c: if neither of paragraphs (a) and (b) applies, the amount calculated using the formula— (net loss - decommissioning deductions) × tax rate - post-abandonment tax. Definition of items in formula
4E: In the formula in subsection (4D)﻿(c),—
a: net loss
b: decommissioning deductions
c: tax rate
d: post-abandonment tax
6: In section LT 1(5) subsection (4)﻿(b) subsections (4B) and (4D)
7: In section LT 1(6) subsection (4) subsections (4B) and (4D)
8: In section LT 1(7)
a: replace subsections (4)﻿(b) subsections (4B), (4D),
b: replace the amount referred to in subsection (4)﻿(a) the current loss credit
131: Section LY 5 amended (Eligible research and development expenditure)
1: In section LY 5(1)﻿(a) ; but ; and
2: After section LY 5(1)﻿(a)
ab: includes expenditure or loss, described in schedule 21B, part A, to the extent to which the expenditure or loss is incurred on a supporting research and development activity conducted—
i: in the income year immediately before the income year that this subpart first applies for the core research and development activity to which the supporting activity relates:
ii: in the income year immediately after the income year that this subpart last applies for the core research and development activity to which the supporting activity relates; but
3: Subsections (1) and (2) apply for the 2020–21 and later income years.
132: Section LY 9 amended (Orders in Council)
In section LY 9 research and development tax credits research and development tax credit
133: Section LY 10 amended (Evaluation)
In section LY 10
a: replace research and development activities research and development activity
b: replace research and development tax credits research and development tax credit
134: Section MD 9 amended (Fifth requirement: earner)
1: In section MD 9(1)﻿(a) a full-time earner an earner
2: Replace section MD 9(4) Compensation payments for incapacities suffered between 1 January 2006 and 31 March 2006
4: A person meets the fifth requirement if—
a: they received a child tax credit for an entitlement period ending on 31 March 2006; and
b: between 1 January 2006 and 31 March 2006 (both dates inclusive), they or their spouse, civil union partner, or de facto partner suffered an incapacity due to personal injury by accident within the meaning of section 26 of the Accident Compensation Act 2001; and
c: weekly compensation within the meaning of section 6 of the Accident Compensation Act 2001 is being or will be paid for the incapacity; and
d: at the time of the incapacity, the person or their spouse, civil union partner, or de facto partner—
i: was deriving, as a full-time earner, income as set out in subsections (2) and (3), as those subsections were immediately before the amendment made by section 360(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009; and
ii: would have been eligible for the tax credit calculated using the formula in section MD 10, as that section was immediately before the amendments made by section 127(1) and (3) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012, had this Act come into force before the date of the incapacity.
3: In section MD 9(5) are normally a full-time earner as described in subsection (1)﻿(a) normally derive income as set out in subsections (2) and (3) as a full-time earner
4: In section MD 9 full-time earner
135: Section MX 3 amended (Wage intensity criteria)
1: In section MX 3(3)﻿(a)﻿(iv) section RD 3(3) or (4) (PAYE income payments) section RD 3B(3) or RD 3C(4) (which relate to income derived by shareholders who are employees)
2: In section MX 3(3)﻿(b)﻿(iv) section RD 3(3) or (4) section RD 3B(3) or RD 3C(4)
136: Section OA 9 amended (General treatment of credits and debits on resident’s restricted amalgamation)
In section OA 9(3) section OA 8(7)﻿(b) and (8) section OA 8(7) and (8)
137: Section OB 4 amended (ICA payment of tax)
1: Replace the heading to section OB 4 ICA payment of tax or transfer to account
2: Replace section OB 4(1)
1: An ICA company has an imputation credit for an amount of income tax or provisional tax paid or an amount of excess tax transferred under section 173L or 173M of the Tax Administration Act 1994 or section RC 32(5)﻿(b) (Wholly-owned groups of companies). Subsection (3) overrides this subsection.
3: In section OB 4(2) (payment of tax) (provisional tax or income tax paid), row 2B (transfer to ICA under section 173L or 173M of the Tax Administration Act 1994 or section RC 32(5)﻿(b)), row 2C (transfer to ICA under section 173L or 173M of the Tax Administration Act 1994 or section RC 32(5)﻿(b)), and row 2D (transfer to ICA under section 173L or 173M of the Tax Administration Act 1994 or section RC 32(5)﻿(b))
4: In section OB 4(4)﻿(a) paragraph (b) paragraph (c)
5: Replace section OB 4(4)﻿(b)
c: for an amount of excess tax transferred in a tax year (the transfer year
i: despite section 173L(2)﻿(a) to (bb) of that Act, the date of the request for the transfer if that date is in the transfer year; or
ii: despite section 173L(2)﻿(a) to (bb) of that Act, the date of the request for the transfer if that date is in the tax year following the transfer year and, at the end of the transfer year, the credit in the ICA from which the amount is transferred equals or exceeds the amount of all transfers from that account requested in the transfer year under section 173L or 173M of that Act or section RC 32(5)﻿(b), and the ICA to which the transfer is made is in credit; or
iii: the date referred to in the opening words of this paragraph, if the requirements of neither subparagraph (i) nor subparagraph (ii) are met.
138: Section OB 32 amended (ICA refund of income tax)
1: Replace the heading to section OB 32 ICA refund of tax or transfer from account
2: In section OB 32(1) paid to the company or the amount of a transfer of excess income tax or excess provisional tax under section 173L or 173M of the Tax Administration Act 1994 or section RC 32(5)﻿(b) (Wholly-owned groups of companies)
3: In section OB 32(3)﻿(a) (refund of income tax) , row 4B (transfer from ICA under section 173L or 173M of the Tax Administration Act 1994 or section RC 32(5)﻿(b)), row 4C (transfer from ICA under section 173L or 173M of the Tax Administration Act 1994 or section RC 32(5)﻿(b)), or row 4D (transfer from ICA under section 173L or 173M of the Tax Administration Act 1994 or section RC 32(5)﻿(b))
4: In section OB 32(4) debit that arises from a refund of income tax
5: Replace section OB 32(6)
6: The debit date for—
a: a refund of income tax is the day the refund is made; or
b: an amount of excess tax transferred in a tax year (the transfer year
i: despite section 173L(2)﻿(a) to (bb) of the Tax Administration Act 1994, the date of the request for the transfer if that date is in the transfer year; or
ii: despite section 173L(2)﻿(a) to (bb) of the Tax Administration Act 1994, the date of the request for the transfer if that date is in the tax year following the transfer year and, at the end of the transfer year, the credit in the ICA from which the amount is transferred equals or exceeds the amount of all transfers from that account requested in the transfer year under section 173L or 173M of that Act, and the ICA to which the transfer is made is in credit; or
iii: the date referred to in the opening words of this paragraph, if the requirements of neither subparagraph (i) nor subparagraph (ii) are met.
139: Table O1 amended (Table O1: imputation credits)
In table O1, replace row 2 with: This is a small table with 4 rows and 4 columns. It is inserted into table O1 as new rows replacing row 2. 2 Provisional tax or income tax paid day of payment section OB 4(4)﻿(a) 2B Transfer to ICA under section 173L or 173M of the Tax Administration Act 1994 or section RC 32(5)﻿(b) date of request for transfer section OB 4(4)﻿(c)﻿(i) 2C Transfer to ICA under section 173L or 173M of the Tax Administration Act 1994 or section RC 32(5)﻿(b) date of request for transfer section OB 4(4)﻿(c)﻿(ii) 2D Transfer to ICA under section 173L or 173M of the Tax Administration Act 1994 or section RC 32(5)﻿(b) date of transfer under section 173L, 173M, or RC 32(5)﻿(b) section OB 4(4)﻿(c)﻿(iii)
140: Table O2 amended (Table O2: imputation debits)
In table O2, replace row 4 with: This is a small table with 4 rows and 4 columns. It is inserted into table O2 as new rows replacing row 4. 4 Refund of income tax day of refund section OB 32(6)﻿(a) 4B Transfer from ICA under section 173L or 173M of the Tax Administration Act 1994 or section RC 32(5)﻿(b) date of request for transfer section OB 32(6)﻿(b)﻿(i) 4C Transfer from ICA under section 173L or 173M of the Tax Administration Act 1994 or section RC 32(5)﻿(b) date of request for transfer section OB 32(6)﻿(b)﻿(ii) 4D Transfer from ICA under section 173L or 173M of the Tax Administration Act 1994 or section RC 32(5)﻿(b) date of transfer under section 173L, 173M, or RC 32(5)﻿(b) section OB 32(6)﻿(b)﻿(iii)
141: Section OK 2 amended (MACA payment of tax)
1: Replace the heading to section OK 2 MACA payment of tax or transfer to account
2: In section OK 2(1) or provisional tax , or for an amount of excess tax transferred under section 173L of the Tax Administration Act 1994
3: In section OK 2(2) (payment of tax) (provisional tax and income tax paid), row 2B (transfer under section 173L of the Tax Administration Act 1994), row 2C (transfer under section 173L of the Tax Administration Act 1994), and row 2D (transfer under section 173L of the Tax Administration Act 1994)
4: Replace section OK 2(4)
4: The credit date is—
a: for a payment of income tax or provisional tax, the day on which the tax is paid; or
b: for an amount of excess tax transferred in a tax year (the transfer year
i: despite section 173L(2)﻿(a) to (bb) of that Act, the date of the request for the transfer, if that date is in the transfer year; or
ii: despite section 173L(2)﻿(a) to (bb) of that Act, the date of the request for the transfer, if that date is in the tax year following the transfer year and, at the end of the transfer year, the credit in the MACA from which the amount is transferred equals or exceeds the amount of all transfers from that account requested in the transfer year under section 173L or 173M of that Act or section RC 32(5)﻿(b), and the MACA to which the transfer is made is in credit; or
iii: the date of the transfer under section 173L of that Act, if the requirements of neither subparagraph (i) nor subparagraph (ii) are met.
142: Section OK 3 amended (MACA payment of tax to other Maori authorities)
1: Replace the heading to section OK 3 MACA transfer of excess tax from other Maori authorities
2: Replace section OK 3(1)
1: A Maori authority has a Maori authority credit for a transfer of excess tax from another Maori authority under section 173M of the Tax Administration Act 1994 or section RC 32(5)﻿(b) (Wholly-owned groups of companies).
3: In section OK 3(2) (payment of tax to another Maori authority) (transfer from another Maori authority under section 173M of the Tax Administration Act 1994 or section RC 32(5)﻿(b)), row 3B (transfer from another Maori authority under section 173M of the Tax Administration Act 1994 or section RC 32(5)﻿(b)), and row 3C (transfer from another Maori authority under section 173M of the Tax Administration Act 1994 or section RC 32(5)﻿(b))
4: Replace section OK 3(3)
4: The credit date for a transfer of excess tax in a tax year (the transfer year
a: despite section 173L(2)﻿(a) to (bb) of that Act, the date of the request for the transfer, if—
i: the date of that request is in the transfer year; or
ii: the date of that request is in the tax year following the transfer year and, at the end of the transfer year, the credit in the MACA from which the amount is transferred equals or exceeds the amount of all transfers from that account requested in the tax year under section 173L or 173M of that Act or section RC 32(5)﻿(b), and the MACA to which the transfer is made is in credit; or
b: the date of the transfer under section 173M of that Act or section RC 32(5)﻿(b), if the requirements of paragraph (a) are not met.
143: Section OK 11 amended (MACA allocation of provisional tax)
1: Replace the heading to section OK 11 MACA transfer of excess tax to other Maori authorities
2: Replace section OK 11(1)
1: A Maori authority has a Maori authority debit for a transfer of excess tax to another Maori authority under section 173M of the Tax Administration Act 1994 or section RC 32(5)﻿(b) (Wholly-owned groups of companies).
3: In section OK 11(2) (allocation of provisional tax) (transfer to another Maori authority under section 173M of the Tax Administration Act 1994 or section RC 32(5)﻿(b)), row 3B (transfer to another Maori authority under section 173M of the Tax Administration Act 1994) or section RC 32(5)﻿(b), and row 3C (transfer to another Maori authority under section 173M of the Tax Administration Act 1994 or section RC 32(5)﻿(b))
4: Replace section OK 11(3)
3: The debit date for a transfer of excess tax in a tax year (the transfer year
a: despite section 173L(2)﻿(a) to (bb) of that Act, the date of the request for the transfer if that date is in the transfer year; or
b: despite section 173L(2)﻿(a) to (bb) of that Act, the day on which the request for the transfer is made, if that date is in the tax year following the transfer year and, at the end of the transfer year, the credit in the MACA from which the amount is transferred equals or exceeds the amount of all transfers from that account requested in the tax year under section 173L or 173M of that Act or section RC 32(5)﻿(b), and the MACA to which the transfer is made is in credit; or
c: the day of the transfer under section 173M of that Act or section RC 32(5)﻿(b), if the requirements of neither paragraph (a) nor paragraph (b) are met.
144: Section OK 12 amended (MACA refund of income tax)
1: Replace the heading to section OK 12 MACA refund of income tax or transfer of excess tax to period or tax type
2: Replace section OK 12(1)
1: A Maori authority has a Maori authority debit for the amount of a refund of income tax paid to the Maori authority or for a transfer of excess tax to another period or tax type of the Maori authority under section 173L of the Tax Administration Act 1994.
3: In section OK 12(3) (refund of income tax) , row 4B (transfer from MACA under section 173L of the Tax Administration Act 1994), row 4C (transfer from MACA under section 173L of the Tax Administration Act 1994), and row 4D (transfer from MACA under section 173L of the Tax Administration Act 1994)
4: Replace section OK 12(6)
6: The debit date for—
a: a refund of income tax is the day the refund is made; or
b: an amount of excess tax transferred in a tax year (the transfer year
i: despite section 173L(2)﻿(a) to (bb) of that Act, the date of the request for the transfer, if that date is in the transfer year; or
ii: despite section 173L(2)﻿(a) to (bb) of that Act, the date of the request for the transfer, if that date is in the tax year following the transfer year and, at the end of the transfer year, the credit in the MACA from which the amount is transferred equals or exceeds the amount of all transfers from that account requested in the tax year under section 173L or 173M of that Act and section RC 32(5)﻿(b), and the MACA to which the transfer is made is in credit; or
iii: the date of the transfer under section 173L of that Act, if the requirements of neither subparagraph (i) nor subparagraph (ii) are met.
145: Table O17 amended (Table O17: Maori authority credits)
1: In table O17, replace row 2 with: This is a small table with 4 rows and 4 columns. It is inserted into table O17 as new rows replacing row 2. 2 Provisional tax and income tax paid day of payment section OK 2(4)﻿(a) 2B Transfer to MACA under section 173L of the Tax Administration Act 1994 date of request for transfer section OK 2(4)﻿(b)﻿(i) 2C Transfer to MACA under section 173L of the Tax Administration Act 1994 date of request for transfer section OK 2(4)﻿(b)﻿(ii) 2D Transfer to MACA under section 173L of the Tax Administration Act 1994 date under section 173L of transfer section OK 2(4)﻿(b)﻿(iii)
2: In table O17, replace row 3 with: This is a small table with 3 rows and 4 columns. It is inserted into table O17 as new rows replacing row 3. 3 Transfer to MACA under section 173M of the Tax Administration Act 1994 or section RC 32(5)﻿(b) date of request for transfer section OK 3(4)﻿(a)﻿(i) 3B Transfer to MACA under section 173M of the Tax Administration Act 1994 or section RC 32(5)﻿(b) date of request for transfer section OK 3(4)﻿(a)﻿(ii) 3C Transfer to MACA under section 173M of the Tax Administration Act 1994 or section RC 32(5)﻿(b) date under section 173M or RC 32(5)﻿(b) of  transfer section OK 3(4)﻿(b)
146: Table O18 amended (Table O18: Maori authority debits)
1: In table O18, replace row 3 with: This is a small table with 3 rows and 4 columns. It is inserted into table O18 as new rows replacing row 3. 3 Transfer from MACA under section 173M of the Tax Administration Act 1994 or section RC 32(5)﻿(b) date of request for transfer section OK 11(3)﻿(a) 3B Transfer from MACA under section 173M of the Tax Administration Act 1994 or section RC 32(5)﻿(b) date of request for transfer section OK 11(3)﻿(b) 3C Transfer from MACA under section 173M of the Tax Administration Act 1994 or section RC 32(5)﻿(b) date under section 173M or RC 32(5)﻿(b) of  transfer section OK 11(3)﻿(c)
2: In table O18, replace row 4 with: This is a small table with 4 rows and 4 columns. It is inserted into table O18 as new rows replacing row 4. 4 Refund of income tax day of refund section OK 12(6)﻿(a) 4B Transfer from MACA under section 173L of the Tax Administration Act 1994 date of request for transfer section OK 12(6)﻿(b)﻿(i) 4C Transfer from MACA under section 173L of the Tax Administration Act 1994 date of request for transfer section OK 12(6)﻿(b)﻿(ii) 4D Transfer from MACA under section 173L of the Tax Administration Act 1994 date under section 173L of transfer section OK 12(6)﻿(b)﻿(iii)
147: Section OP 12 amended (Consolidated ICA dividend derived with imputation credit)
1: In section OP 12(1) company that is not a local authority
2: In section OP 12 local authority
3: Subsection (1) applies for the 2022–23 and later income years.
148: Section OP 30 amended (Consolidated ICA refund of income tax)
1: In section OP 30(2)
a: paragraph (b), replace the debit. the debit; or
b: after paragraph (b), insert:
c: a refund of income tax or provisional tax paid to a local authority.
2: In section OP 30 local authority
3: Subsection (1) applies for the 2022–23 and later income years.
149: Section OP 31 amended (Consolidated ICA amount applied to pay other taxes)
1: Replace section OP 31(1)
1: A consolidated imputation group has an imputation debit for—
a: an amount of overpaid income tax applied to pay an amount due under the Inland Revenue Acts:
b: an increased amount of tax as described in section RP 17B(3) (Tax pooling accounts and their use) applied to pay an amount due under the Inland Revenue Acts other than income tax.
2: Subsection (1) applies for the 2008–09 and later income years. However subsection (1) does not apply if a person has taken a tax position ignoring this section before the start of the 2020–21 income year.
150: Section RC 35B amended (Treatment of overpaid provisional tax instalments calculated using AIM method)
In section RC 35B(2)﻿(b) ICA refund of income tax ICA refund of tax or transfer from account
151: Section RC 38 amended (Crediting income tax with early-payment discount)
1: In section RC 38(4)﻿(a) 6.7% the rate that is 2% greater than the Commissioner’s paying rate set by an Order in Council under section 120H of the Tax Administration Act 1994
2: Subsection (1) applies to the 2022–23 and later income years.
152: Section RC 40 amended (Some definitions)
1: In section RC 40 small-business person partnership or as the owner of a look-through company
2: Subsection (1) applies to the 2019–20 and later income years.
153: Section RD 5 amended (Salary or wages)
Replace section RD 5(1)﻿(c)﻿(iv)
iv: an amount of income described in section RD 3B(3):
ivb: an amount of income described in section RD 3C(4):
154: Section RD 45 replaced (Unclassified benefits)
1: Replace section RD 45
RD 45: Unclassified benefits
Liability limited
1: An employer is liable to pay FBT on an unclassified benefit only within the limits described in this section. Quarterly payment
2: When FBT is paid quarterly, an employer is liable for FBT on an unclassified benefit provided to an employee in a quarter only if—
a: the total taxable value of all unclassified benefits provided in the quarter to the employee by the employer, or by persons associated, at any time in the quarter, with the employer, is more than $300; or
b: the total taxable value of all unclassified benefits in the categories described in subsection (4) provided in the last 4 quarters including the current quarter, whether accounted for on a quarterly or an income year basis, is more than $22,500. Yearly payment
3: When FBT is paid on either an annual basis or an income year basis, except when subsection (5) applies, an employer is liable for FBT on unclassified benefits provided to an employee in the tax year or income year only if—
a: the total taxable value of all unclassified benefits provided in the tax year or income year to the employee by the employer, or by persons associated, at any time in the tax year or income year, with the employer, is more than $1,200; or
b: the total taxable value of all unclassified benefits in the categories described in subsection (4) provided in the tax year or income year is more than $22,500. Categories
4: The categories, for an employer, are—
a: unclassified benefits provided by the employer to their employees:
b: unclassified benefits provided by persons associated, at any time in the relevant period, with the employer to employees of the employer:
c: unclassified benefits provided by the employer to employees of persons associated, at any time in the relevant period, with the employer:
d: if the employer is a company, unclassified benefits provided by other companies that are part of the same group of companies as the employer, at any time in the relevant period, to employees of those other companies. Period longer or shorter than income year
5: When an employer accounts for FBT on an income year basis, and the period for which they have accounted under section RD 60 differs from an income year for the reasons described in subsection (6), an employer is liable for FBT on unclassified benefits provided in the period only if—
a: the total taxable value of all unclassified benefits provided in the period to an employee by the employer, or by persons associated, at any time in the quarter, with the employer, is more than the figure that is the same fraction or multiple of $1,200 as the number of days in the period is a fraction or multiple of 365; or
b: the total taxable value of all unclassified benefits in the categories described in subsection (4) provided in the period is more than the figure that is the same fraction or multiple of $22,500 as the number of days in the period is a fraction or multiple of 365. Reasons for difference
6: In subsection (5), the income year for which the employer has accounted may be longer or shorter than the normal income year because the employer has either—
a: started or ceased business during that income year; or
b: chosen, with the agreement of the Commissioner, to file a return under this subpart for the income year ending with the date of the annual balance of their accounts. associated person, balance date, business, Commissioner, company, employee, employer, FBT, group of companies, income year, pay, quarter, return of income, tax year, unclassified benefit
2: Subsection (1) applies for the 2022–23 and later income years.
155: Section RD 50 amended (Employer’s liability for attributed benefits)
1: Replace section RD 50(5) Further options
5: Instead of calculating FBT under subsections (2) and (4), an employer may choose to—
a: pay FBT, for each employee to whom they are required to attribute the value of a fringe benefit under sections RD 47 and RD 49, at the rate of 63.93% on the taxable value of the fringe benefits attributed to the employee; or
b: apply subsection (6). Requirements for employers who make election referred to in subsection (5)﻿(b)
6: An employer who makes an election under subsection (5) to apply this subsection must—
a: pay FBT at the rate of 49.25% on the taxable value of the fringe benefits attributed to the employee, for each employee to whom all of the following apply:
i: the employee is an employee to whom the employer is required to attribute the value of a fringe benefit under sections RD 47 and RD 49; and
ii: the taxable value of all fringe benefits for the employee, as determined under section RD 51, is $13,400 or less; and
iii: the cash pay of the employee, as determined under that section, is $160,000 or less; and
b: for each other employee to whom the employer is required to attribute the value of a fringe benefit under sections RD 47 and RD 49,—
i: pay FBT at the rate of 63.93% on the taxable value of the fringe benefits attributed to the employee, if subparagraph (ii) does not apply; or
ii: pay FBT at the rate of 49.25% on the taxable value of the fringe benefits attributed to the employee, if the employee’s all-inclusive pay, calculated using the formula in section RD 51(2), is less than $129,681 and the employer chooses 49.25%.
2: Subsection (1) applies for the 2021–22 and later income years.
156: Section RD 60 amended (Close company option)
1: In section RD 60(3)﻿(b) the total pay of each employee their FBT liability
2: Subsection (1) applies for the 2021–22 and later income years.
157: Section RD 61 amended (Small business option)
In section RD 61(3)﻿(b) the total pay of each employee their FBT liability
158: Section RD 63 amended (When employer stops employing staff)
In section RD 63(3) section RD 50(2) or RD 53(3) sections RD 50 and RD 53
159: Section RD 67 replaced (Calculating amounts of tax for employer’s superannuation cash contributions)
Replace section RD 67
RD 67: Calculating amounts of tax for employer’s superannuation cash contributions
The amount of tax for an employer’s superannuation cash contribution is—
a: the amount determined under schedule 1, part D, clause 1 (Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe benefits), unless paragraph (b) or (c) applies; or
b: 33% of the employer’s superannuation cash contribution, if the contribution is made by a person for the benefit of 1 or more of their past employees and paragraph (c) does not apply; or
c: 39% of the employer’s superannuation cash contribution, if an employer chooses 39% and the contribution is to a defined benefit fund. amount, amount of tax, defined benefit fund, employer, employer’s superannuation cash contribution
160: Section RE 2 amended (Resident passive income)
1: In section RE 2(5)﻿(a)﻿(i) either of sections CW 9 and CW 10 section CW 9, CW 10, or CW 10B
2: In section RE 2(5)﻿(a)﻿(ii) resident): resident); or
3: After section RE 2(5)﻿(a)﻿(ii)
iib: under section CW 39 (Local authorities):
4: In section RE 2(5)﻿(g) , other than a dividend referred to in section CW 10(3)
5: Subsections (1), (2), (3), and (4) apply for the 2022–23 and later income years.
161: Section RE 10C amended (Obligations of custodial institutions in relation to certain payments of investment income)
1: Replace section RE 10C(7)﻿(a)﻿(ii)
ii: a custodial institution that is not resident in New Zealand; and
2: After section RE 10C(7) When branches located in New Zealand
7B: For the purposes of subsection (7)﻿(a)﻿(ii), if the non-resident custodial institution has a branch located in New Zealand that receives a payment of investment income, the branch is treated as the person who must withhold the amount of tax for the payment under subsection (3).
3: Subsections (1) and (2) apply for the 2020–21 and later income years.
162: Section RE 21 amended (Basis of payment of RWT)
In section RE 21(3) they must pay they may pay
163: Section RF 12 amended (Interest paid by approved issuers or transitional residents)
1: In section RF 12(1)﻿(a)﻿(ii) a trust (a security trust
2: Replace section RF 12(1)﻿(a)﻿(iv)
iv: if the interest relates to related-party debt, is derived at a time when the person is not associated with the approved issuer other than as a beneficiary of a security trust, and the funding provided by the lender under the related-party debt does not meet the requirements in section RF 12H(1)﻿(a)﻿(ii), and the lender does not meet the requirements in section RF 12H(1)﻿(a)﻿(iii):
164: Section RM 1 amended (What this subpart does)
1: Repeal section RM 1(b)
2: In section RM 1 company foreign dividend
165: Section RM 2 amended (Refunds for overpaid tax)
1: After section RM 2(1) Provision of ancillary tax return treated as assessment
1BA: For the purposes of this section, the provision by a person of a return for an amount of an ancillary tax for a period is treated as the making of an assessment of the amount of the ancillary tax by the person.
2: In section RM 2 amount ancillary tax
3: Subsection (1) applies in relation to a return for an amount of an ancillary tax for a period regardless of whether the return was or is provided before, on, or after the date on which this Act receives the Royal assent.
166: Section RM 4 amended (Overpayment on amended assessment)
1: After section RM 4(1) Provision of ancillary tax return treated as assessment
1B: For the purposes of this section, the provision by a person of a return for an amount of an ancillary tax for a period is treated as the making of an assessment of the amount of the ancillary tax by the person.
2: In section RM 4 ancillary tax
3: Subsection (1) applies in relation to a return for an amount of an ancillary tax for a period regardless of whether the return was or is provided before, on, or after the date on which this Act receives the Royal assent.
167: Section RM 27 amended (Application when no credits arise)
In section RM 27 MACA payment of tax MACA payment of tax or transfer to account
168: Section RP 17 amended (Tax pooling intermediaries)
1: Replace section RP 17(1)
1: A person ( person A
2: Subsection (1) applies to the 2017–18 Section 168(2) amended 31 March 2023 section 219 Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023
169: Section RP 17B amended (Tax pooling accounts and their use)
1: After section RP 17B(2)﻿(e)
f: a new liability described in subsection (12).
2: Replace section RP 17B(4)﻿(a) and (b)
a: on a day that—
i: is, or is after, the first day of the person’s income year corresponding to the tax year; and
ii: is, or is before, the day that is 75 days after the person’s terminal tax date for the tax year, unless paragraph (b) or (c) applies:
b: on a day that—
i: is, or is after, the first day of the person’s income year corresponding to the tax year; and
ii: is, or is before, the day that is 76 days after the person’s terminal tax date for the tax year, if the person’s balance date falls at the end of October, November, or December, and the terminal tax date falls in a tax year that includes a 29 February:
3: Repeal section RP 17B(9)
4: Repeal section RP 17B(10)
5: Repeal section RP 17B(11)
6: After section RP 17B(8) When funds may be used to meet new liability for tax or interest
12: Subsection (13) applies when—
a: a person is liable for an increased amount of a tax in a category referred to in subsection (14), or of interest under Part 7 of the Tax Administration Act 1994 (the Part 7 interest
b: the liability referred to in paragraph (a) (the new liability
c: the person makes a voluntary disclosure of the new liability; and
d: the person notifies the Commissioner of the details of the new liability and the notification results in an assessment of the new liability or in an obligation to pay the new liability; and
e: the person makes the voluntary disclosure referred to in paragraph (c)—
i: within a reasonable time after the earliest time that the person or the person’s agent is aware of the person’s new liability; and
ii: before the date of the return referred to in paragraph (d); and
iii: before the person is notified, within the terms of section 141G(4) of the Tax Administration Act 1994, of a pending tax audit or investigation or that a tax audit or investigation has started. Commissioner’s discretion to allow use of funds to meet new liability
13: On application by the person, the Commissioner may notify the person that the person may use funds in a tax pooling account to meet the new liability, if the Commissioner is satisfied that the new liability did not arise as a result of a choice by the person not to comply with the person’s obligations under the Inland Revenue Acts or as a result of a failure by the person to take reasonable care to comply with those obligations. Categories of tax that may be included in new liability
14: The categories of tax that may be included in a new liability for the purposes of subsection (12) are—
a: ESCT:
b: FBT:
c: further income tax:
d: GST:
e: imputation penalty tax:
f: income tax:
g: NRWT:
h: PAYE:
i: RSCT:
j: RWT.
170: Section RP 19 amended (Transfers from tax pooling accounts)
1: Replace section RP 19(3)﻿(a)
a: for a transfer under section RP 17B(4)﻿(a) or (b), a date nominated that is no earlier than the first day of the relevant income year:
2: Subsection (1) applies to the 2017–18 Section 170(2) amended 31 March 2023 section 220 Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023
171: Section YA 1 amended (Definitions)
1: This section amends section YA 1
2: Insert, in appropriate alphabetical order: 5-year test land section CB 6A(1)
3: Insert, in appropriate alphabetical order: 10-year test land section CB 6A(1)
4: Insert, in appropriate alphabetical order: boarding establishment
a: at least 10 boarding rooms that are not self-contained; and
b: shared living facilities available, as appropriate, to all residents
5: Insert, in appropriate alphabetical order: bright-line acquisition date CB 6A to CB 6AE and CZ 39
6: In the definition of bright-line date bright-line date bright-line disposal date bright-line date
7: In the definition of bright-line period CB 6A(1) to (5) CB 6A(3) to (7C)
8: In the definition of capital contribution
a: in the words before the subparagraphs, before CG 8, CC 1B,
b: in subparagraph (iii), delete (Consideration relating to grant, renewal, extension, or transfer of leasehold estate or licence)
9: Insert, in appropriate alphabetical order: code compliance certificate section DH 5
10: Insert, in appropriate alphabetical order: cryptoasset
a: a database that is secured cryptographically and contains ledgers, recording transactions and contracts involving digital representations of value, that are maintained in decentralised form and shared across different locations and persons; or
b: another application of the same technology performing an equivalent function
11: Insert, in appropriate alphabetical order: cryptocurrency
12: Replace the definition of date of acquisition date of acquisition
13: In the definition of decommissioning
a: repeal paragraph (b)﻿(ii):
b: paragraph (d)﻿(i), delete , exploratory well,
14: Insert, in appropriate alphabetical order: disallowed residential property section DH 5
15: In the definition of dwelling
a: paragraph (b)﻿(ii), replace boardinghouse boarding establishment
b: paragraph (c), words before the subparagraphs, replace section CB 16A (Main home exclusion for disposal within 5 years) sections CB 16A and CZ 40 (which relate to main home exclusions for disposals of residential land within bright-line periods)
16: In the definition of election day worker
a: paragraph (a), replace a Deputy Returning Officer, poll clerk, an electoral official,
b: paragraph (c), replace the day on which the election or poll is held the days on which voting is held in New Zealand for the election or poll
17: Insert, in appropriate alphabetical order: employee accommodation
a: means property that the person, or a company in the same wholly-owned group of companies as the person, provides to their employees or other workers for accommodation in connection with their employment or service:
b: does not include accommodation provided to employees or other workers who are associated with the person, unless it is necessary for the person to provide the accommodation because of the nature or remoteness of a business carried on by them
18: In the definition of employer
19: Insert, in appropriate alphabetical order: excepted residential land section DH 5
20: Repeal the definition of excluded day
21: Insert, in appropriate alphabetical order: exempted predominant main home day section CB 16A(1B)
22: Insert, in appropriate alphabetical order: exempt main home section CB 16A(1)
23: Insert, in appropriate alphabetical order: exempt main home period limit section CB 16A(1C)
24: Insert, in appropriate alphabetical order: exempt Māori company section DH 5
25: In the definition of finance lease NZIAS 17 NZ IFRS 16
26: Insert, in appropriate alphabetical order: grandparented residential interest section DH 7
27: Insert, in appropriate alphabetical order: grandparented structure section EZ 23BD(2)
28: Insert, in appropriate alphabetical order: grandparented transitional loan section DH 5
29: Replace the definition of group of persons group of persons
a: includes 1 person:
b: is defined in section CB 16A(5) (Main home exclusion for disposal within 10 years) for the purposes of subsection (4) of that section:
c: is defined in section CZ 40(5) (Main home exclusion for bright-line: acquisition on or after 29 March 2018) for the purposes of subsection (4) of that section
30: Replace the definition of group of persons group of persons
a: includes 1 person:
b: is defined in section CB 16A(5) (Main home exclusion for disposal within 10 years) for the purposes of subsection (4) of that section:
c: is defined in section CB 16(5) (Residential exclusion from sections CB 6 to CB 11) for the purposes of subsection (4) of that section:
d: is defined in section CB 19(2C) (Business exclusion from sections CB 6 to CB 11) for the purposes of subsection (2B) of that section:
e: is defined in section CZ 40(5) (Main home exclusion for bright-line: acquisition on or after 29 March 2018) for the purposes of subsection (4) of that section
31: Insert, in appropriate alphabetical order: hybrid entity hybrid mismatch
32: Insert, in appropriate alphabetical order: interposed residential property holder section DH 5
33: Insert, in appropriate alphabetical order: interposed residential property percentage section DH 6
34: Insert, in appropriate alphabetical order: main home person section CB 16A(1D)
35: Insert, in appropriate alphabetical order: Māori excepted land
a: means—
i: Māori customary land, Māori freehold land, or Crown land reserved for Māori, or land set aside as a Māori reservation, as the relevant terms are defined in Te Ture Whenua Maori Act 1993:
ii: land provided as a residence to a shareholder or beneficiary of a Maori authority or of an entity eligible to become a Maori authority, to the extent to which the land is either owned in whole or in part, directly or indirectly by that Maori authority or entity ( owner A
iii: land, owned directly or indirectly by a Maori authority or an entity eligible to become a Maori authority, to the extent to which the land is from a Treaty of Waitangi settlement relating to that Maori authority or entity, including by exercising a right of first refusal under such a settlement:
b: does not include land described in paragraph (a)﻿(iii), if the land is held as lessee, and the lessee is not owned, directly or indirectly, by the relevant Maori authority or the relevant entity eligible to become a Maori authority
36: Insert, in appropriate alphabetical order: new build land section DH 5
37: In the definition of nominal share forgiven remitted
38: Insert, in appropriate alphabetical order: non-eligible assets section EM 8
39: Insert, in appropriate alphabetical order: non-fungible token
40: Replace the definition of principal settlor principal settlor
41: In the definition of proportional debt ratio forgiven remitted
42: In the definition of proportional ownership ratio forgiven remitted
43: In the definition of residential land may used may be used
44: Insert, in appropriate alphabetical order: residential land company section DH 5
45: Insert, in appropriate alphabetical order: residential land wholly-owned group member section DH 5
46: In the definition of settlement section CB 16A(3) (Main home exclusion for disposal within 5 years) section CB 16A(7) (Main home exclusion for disposal within 10 years)
47: Insert, in appropriate alphabetical order: student accommodation
a: means commercial boarding premises used to provide accommodation for students enrolled at a registered school, or premises described in section 5B of the Residential Tenancies Act 1986; and
b: includes premises described in section 5B of the Residential Tenancies Act 1986 even if they are used mainly for the accommodation of students, but not exclusively for the accommodation of students
48: Subsection (8) applies to an amount derived on or after 1 April 2015.
49: Subsection (25) applies for income years beginning on or after 1 January 2019.
50: Subsection (27) applies for the 2020–21 and later income years.
51: Subsection (43) applies—
a: for purposes of the rules related to the bright-line test for residential land, if the person acquires an estate or interest in the land on or after 27 March 2021. However, subsection (43) does not apply if the person makes an offer for the acquisition of the land, on or before 23 March 2021, that is irrevocable before 27 March 2021 and the person acquires an estate or interest in the land on or after 27 March 2021 as a result of that offer. Further, subsection (43) does not apply to—
i: a person’s disposal of a freehold estate in residential land that the person acquired as the owner of a leasehold estate with a perpetual right of renewal, if the person was granted the leasehold estate before 27 March 2021:
ii: a person’s disposal of an estate or interest in residential land that the person acquired as the result of the completion of a land development or subdivision, if before 27 March 2021 the person entered into the agreement under which they acquired the estate or interest upon the completion of the land development or subdivision:
b: for other purposes, for the 2021–22 and later income years.
52: Subsection (15)﻿(a) applies for the 2022–23 and later income years.
172: Section YA 4 amended (General rules for giving information or communicating matters)
In section YA 4(3) post, fax, or electronic means post, or electronic means
173: Section YC 13 amended (Corporate spin-outs)
1: In section YC 13(1)﻿(b) market value interest (the spun-out subsidiary interest
2: After section YC 13(1)﻿(d)
db: after the transfer or issue, the interest in the spun-out company is treated under section YC 10 as being held by a notional single person; and
3: In section YC 13(1)﻿(e) the voting interest or market value interest in the spun-out subsidiary the spun-out subsidiary interest
4: After section YC 13(1) Modified look-through rule for transitional ownership of spun-out company
1B: For the purposes of applying the continuity provisions to the ownership of the spun-out company from the date of the transfer or issue, if the original parent is treated, in the absence of this subsection, as holding an interest in the spun-out company (the spun-out company interest preceding ownership period
a: during the preceding ownership period; and
b: to the extent to which, immediately after the transfer or issue, a group of persons exists who hold common interests in the original parent and the spun-out company, calculated on the assumption that the only voting interests and market value interests in those companies are those treated as held by a notional single person under section YC 10.
5: Replace the heading for section YC 13(2) Modified look-through rule for transitional ownership of spun-out subsidiary
6: In section YC 13(2) the voting interest or market value interest in the spun-out subsidiary the spun-out subsidiary interest
7: In section YC 13(2)﻿(a) interest spun-out subsidiary interest
174: Section YE 1 amended (References to balance dates and years)
In section YE 1(6) 31 March 30 March
175: Section YZ 5 amended (New Zealand Memorial Museum Trust)
Replace section YZ 5(b)
b: ends on 31 March 2025.
176: New Schedule 15 inserted (Excepted residential land)
After Schedule 14 Schedule 1
177: Schedule 21B amended (Expenditure or loss for research and development tax credits)
1: In schedule 21B for the Callaghan Innovation project grant. for the Callaghan Innovation project grant. Nor does it include an amount related to an RDTI transition support payment.
2: Subsection (1) applies for the 2019–20 and later income years.
178: Schedule 32 amended (Recipients of charitable or other public benefit gifts)
1: This section amends schedule 32
2: Replace Child Rescue Charitable Trust Child Rescue Charitable Aid Trust
3: Replace UN Women National Committee Aotearoa New Zealand Incorporated UN Women Aotearoa New Zealand Incorporated
4: Insert, in appropriate alphabetical order:
a: Community Transformation Trust
b: Firefly Children's Home Charitable Trust
c: Hadassah Medical Relief Association of New Zealand
d: Hands Across the Water New Zealand Trust
e: Institute for Indian Mother and Child Aotearoa Charitable Trust
f: Medic to Medic
g: Missio Benevolent Society
h: Prabh Aasra Trust
i: Reemi Charitable Trust
j: Talalelei Life Futures Fund
k: YWAM Ships Aotearoa Limited
5: Delete—
a: Books for Cambodia Trust
b: Channel 2 Cyclone Aid for Samoa
c: Cyclone Ofa Relief Fund
d: Cyclone Val Relief Fund
e: Kyrgyzstan New Zealand Rural Trust
f: L Women of Africa Fund
g: The Band Aid Box
h: The Serious Road Trip Charitable Trust
i: The Sir Walter Nash Vietnam Appeal
6: Subsection (4) applies for a gift made to a person in the 2021–22 or later income year of the person.
4: Amendments to other enactments
Amendments to Tax Administration Act 1994
179: Amendments to Tax Administration Act 1994
Sections 180 to 232 Tax Administration Act 1994 2022-03-30 Tax Administration Act 1994 (except for sections as below) 2022-03-31 Tax Administration Act 1994 see section 2(36): section 194 2022-04-01 Tax Administration Act 1994 see section 2(37): sections 180(7), 190, 192, 211, 212, 213(1), 228 2023-04-01 Tax Administration Act 1994 see section 2(38): sections 219(2) and (7), and 220(2), (3), and (5) OIC Tax Administration Act 1994 see section 2(39): relates to section 231(2)
180: Section 3 amended (Interpretation)
1: This section amends section 3(1)
2: In the definition of civil penalty
cd: a penalty under section 141EE
3: Insert, in appropriate alphabetical order: electronic sales suppression tool
a: that can hide, conceal, modify, falsify, destroy, or prevent the creation of a record that—
i: a person is required under a tax law to make or keep; and
ii: is, or would be, created by a system that is or includes an electronic point of sale system; and
b: the use of which would lead to a reasonable conclusion that 1 of its principal functions is to facilitate the concealment, modification, falsification, destruction, or prevention of the creation of a record
4: In the definition of employment income information 80D, 108AB, 108B,
5: In the definition of proscribed question , other than in relation to the test of principal purpose of making taxable supplies as described in section 91CB(3)﻿(c)
6: In the definition of START tax type
gb: casino duty:
gc: lottery duty:
gd: totalisator duty:
7: Repeal the definition of START tax type
8: In the definition of tax shortfall section 46(6B) section 23K
181: Section 7AA amended (Authorisation to make payments under small business cashflow loan scheme)
In section 7AA(4) the person , or an associated person who receives the benefit of the payment other than as adequate consideration for a supply of goods or services,
182: Section 7AAB amended (Authorisation to make COVID-19 support payments)
In section 7AAB(7) the person , or an associated person who receives the benefit of the grant, other than as adequate consideration for a supply of goods or services
183: Section 14 amended (Modes of communication: general provisions)
In section 14(2) post, fax, or electronic means post, or electronic means
184: Section 14F amended (Giving information by personal delivery, post, fax, or electronic means)
1: In the heading to section 14F post, fax, or electronic means post, or electronic means
2: Repeal section 14F(3)﻿(b)
3: Repeal section 14F(8)
185: Section 14G amended (Contact addresses)
Repeal section 14G(1)﻿(d)
186: Section 16C amended (Key terms)
1: Replace section 16C(2)﻿(a)
a: in connection with a revenue law and for a purpose set out in section 16B(1):
2: In section 16C(3)﻿(a)
a: replace means revenue information that relates to the affairs of a person or entity means revenue information
b: in subparagraph (i), replace the person or entity a person or entity
3: After section 16C(3)﻿(b)
c: does not include information if the only person or entity that it identifies is the Commissioner or chief executive of the Inland Revenue Department, unless it relates to the application of the Inland Revenue Acts to the Inland Revenue Department as a taxpayer.
187: Section 17B amended (Commissioner may require information or production of documents)
In section 17B(4) this section, this section and section 17L,
188: Section 22D amended (Key terms)
1: After section 22D(3)﻿(iii)
iiib: a payment under the wage subsidy scheme defined in section 7AA(6):
iiic: a payment under the leave support scheme made by the Ministry of Social Development on behalf of the Crown in relation to leave taken as a consequence of COVID-19:
iiid: a payment under the short-term absence scheme made by the Ministry of Social Development on behalf of the Crown in relation to absence from work as a consequence of COVID-19:
2: Subsection (1) applies for the 2021–22 and later income years.
189: Section 25MB amended (Information from custodial institutions)
1: Replace section 25MB(8)﻿(a)﻿(ii)
ii: a custodial institution that is not resident in New Zealand; and
2: After section 25MB(8) When branches located in New Zealand
9: For the purposes of subsection (8)﻿(a)﻿(ii), if the non-resident custodial institution has a branch located in New Zealand that receives a payment of investment income, the branch is treated as the person who must provide investment income information relating to the payment under subsection (3).
3: Subsections (1) and (2) apply for the 2020–21 and later income years.
190: New section 25NB inserted (De minimis filing requirements for certain persons)
1: After section 25N
25NB: De minimis filing requirements for certain persons
When this section applies
1: This section applies when a person is required to withhold an amount of tax under—
a: section RE 21(3) of the Income Tax Act 2007:
b: section RF 13(2) of that Act:
c: section 86KA of the Stamp and Cheque Duties Act 1971. When this section does not apply
2: This section does not apply when a person withholds an amount of tax referred to in section RE 21(6) and (7) of the Income Tax Act 2007. Delivery of investment income information
3: Despite sections 25E, 25F, and 25H, the person may deliver the investment income information for the payment to the Commissioner—
a: in electronic form and by means of an electronic communication as prescribed by the Commissioner; and
b: for the period in the tax year from 1 April to 30 September, by 20th October after the end of the period; and
c: for the period in the tax year from 1 October to 31 March, by 20th April after the end of the period.
2: Subsection (1) applies for the 2022–23 and later income years.
191: New section 33F inserted (Research and development tax credits: extension of time for 2019–20 income year)
After section 33E
33F: Research and development tax credits: extension of time for 2019–20 income year
The time for a person to file a supplementary return under section 33E for the 2019–20 income year is extended to 31 August 2021, or such later date otherwise allowed by that section.
192: Section 43B amended (Non-active trusts may be excused from filing returns)
1: Replace the heading for section 43B Trustees of non-active trusts and administrators or executors of non-active estates may be excused from filing returns
2: Replace section 43B(1) and (2)
1: A person who is a trustee of a trust or an administrator or executor of an estate is not required to make a return of income for a tax year for the trust or estate if—
a: the trust or estate is non-active throughout the income year corresponding to the tax year; and
b: for a person who is a trustee, the trust is a complying trust under section HC 10 of the Income Tax Act 2007; and
c: the person has provided to the Commissioner, in a form approved by the Commissioner,—
i: a declaration that the trust or estate is non-active and that the person will notify the Commissioner if the trust or estate ceases to be non-active; and
ii: a statement of the matters required by the Commissioner.
2: For the purposes of this section, a trust or estate is non-active for a tax year if, throughout the income year corresponding to the tax year, the trustee of the trust or the administrator or executor of the estate—
a: has not derived any income; and
b: has no deductions; and
c: has not been a party to, or perpetuated, or continued with, transactions with assets of the trust or estate which, during the corresponding income year,—
i: give rise to income in any person’s hands; or
ii: give rise to fringe benefits to an employee or to a former employee.
3: In section 43B(3)
a: words before the paragraphs, replace trust trust or estate
b: paragraph (a),—
i: replace trustees persons
ii: replace trust trust or estate
c: paragraph (c), replace trust trust or estate
d: paragraph (d), replace trust trust or estate
4: In section 43B(4)
a: replace a trust a trust or estate
b: replace trustee of the trust trustee of the trust or administrator or executor of the estate
c: replace that the trust that the trust or estate
d: replace a non-active trust non-active
5: In section 43B(5) trustees of a non-active trust shall a person who is a trustee of a non-active trust or an executor or administrator of a non-active estate must
193: Section 54C amended (Information in relation to payment of RLWT)
1: In section 54C(1) within 10 years within 10 years or 5 years, as the case may be,
2: In section 54C(1)﻿(b) their date of acquisition of the land the latest date on which they acquire the estate or interest in the residential land
194: Section 59BA amended (Annual return for trusts)
1: Replace section 59BA(2)﻿(d)
d: the amount, and nature, of each distribution that—
i: is not a distribution, other than of money, that is minor and incidental to the activities of the trust; and
ii: is made by the trustee in the income year:
db: the name, date of birth, jurisdiction of tax residence, and tax file number or taxpayer identification number, of the beneficiary who receives a distribution referred to in paragraph (d):
2: Replace section 59BA(3)﻿(b)
b: the trust is a foreign trust:
3: Subsections (1) and (2) apply for the 2021–22 and later income years.
195: Section 68CB amended (Research and development tax credits: general approval)
1: In section 68CB(2) income year (the first income year income year (the first income year prior year
2: In section 68CB(2) the end of the first income year. the end of the first income year. For a prior year, the Commissioner may only approve supporting research and development activities described in section LY 5(1)﻿(ab)﻿(i)
3: After section 68CB(7)
7B: The Commissioner may vary an approval, upon application, to the extent to which the variation application relates solely to a supporting research and development activity for the income year immediately after the relevant income year, as provided by section LY 5(1)﻿(ab)﻿(ii)
7C: The Commissioner may vary an approval, upon application, to the extent to which the variation application relates solely to a supporting research and development activity for the 2019–20 income year, if the variation application meets the requirements of subsection (1)﻿(a) of this section, the variation applied for meets the requirements of subsection (4) of this section, and the application is made on or before 31 August 2022. If the Commissioner accepts the variation, then the Commissioner must notify the person in accordance with subsection (5) of this section.
196: Section 68CC amended (Research and development tax credits: greater than $2 million approval)
1: In section 68CC(3) income year (the first income year income year (the first income year prior year
2: In section 68CC(3) the end of the first income year ( application date the end of the first income year ( application date section LY 5(1)﻿(ab)﻿(i)
197: New section 68CF inserted (Research and development tax credits: extension of time for approvals)
1: After section 68CE
68CF: Research and development tax credits: extension of time for approvals
1: The time for a person to make an application, or an application to vary, in relation to an approval under sections 68CB and 68CC for the 2020–21 income year is extended to 31 August 2021, or such later date otherwise allowed by those sections.
2: The time for a person to make an application in relation to an approval under section 68CB
2: Subsection (1) applies for the 2020–21 and later income years.
198: Section 89B amended (Commissioner may issue notices of proposed adjustment)
Replace section 89B(4)﻿(b)﻿(ii)
ii: sections 108A and 108B; or
iii: sections 108AB and 108B,—
199: Section 89L (Application to High Court)
In section 89L(1)﻿(b)﻿(ii) section 108(2) or section 108A(3) section 108(2), 108AB(2), or 108A(3)
200: Section 89P amended (Challenge notice for taxpayer-initiated disputes)
Replace section 89P(2)
2: Despite subsection (1), the Commissioner is not required to issue a challenge notice—
a: to the extent to which the dispute has ended:
b: when—
i: the Commissioner has issued an amended assessment that reflects some but not all of the adjustments proposed by the disputant; and
ii: the disputant has a right of challenge under section 138B(2).
201: Section 108 amended (Time bar for amendment of income tax assessment)
After section 108(1C)﻿(a)﻿(i)
ib: provides a return for an amount required to be deducted under section 221 of the Accident Compensation Act 2001 for a period which, for the purposes of this section, is treated as the making of an assessment of the amount by the taxpayer:
202: New section 108AB inserted (Time bar for amending assessment of KiwiSaver contributions)
After section 108A
108AB: Time bar for amending assessment of KiwiSaver contributions
1: The Commissioner may not amend an assessment so as to increase an amount assessed when—
a: a taxpayer provides employment income information that includes—
i: an amount required to be deducted under Part 3, subpart 1 of the KiwiSaver Act 2006 which, for the purposes of this section, is treated as the making of an assessment of the amount by the taxpayer:
ii: an amount of KiwiSaver Act 2006 employer contributions payable which, for the purposes of this section, is treated as the making of an assessment of the amount by the taxpayer; and
b: 4 years have passed from the date on which the taxpayer provided the employment income information.
2: However, if the Commissioner is of the opinion that employment income information provided by a taxpayer is fraudulent or wilfully misleading, the Commissioner may amend the assessment at any time so as to increase its amount.
3: This section overrides every other provision of this Act, and any other rule or law, that limits the Commissioner’s right to amend assessments.
203: Section 108B amended (Extension of time bars)
1: In section 108B(3)﻿(f) provided. provided; and
2: After section 108B(3)﻿(f)
fb: the time bar occurring under section 108AB
204: Section 113 amended (Commissioner may at any time amend assessments)
1: In section 113(1) sections 89N and 113D section 89N
2: Subsection (1) applies for the 2019–20 and later income years.
205: Section 113A amended (Correction of certain errors in subsequent returns)
In section 113A(4)
a: words before the paragraphs, after assessment or return, as applicable,
b: replace paragraph (b) with:
b: 2% of the person’s—
i: output tax, in the case of an assessment of goods and services tax; or
ii: annual gross income, in any other case.
206: Section 120KE amended (Provisional tax and rules on use of money interest)
1: Replace section 120KE(1)﻿(a)
a: they are required to calculate instalments under the standard methods described in section RC 5(2) and (3) of the Income Tax Act 2007 or they have no obligation to pay provisional tax for the tax year under section RC 3(3) of that Act; and
2: Subsection (1) applies for the 2022–23 and later income years.
207: Section 120KF repealed (Tolerance for provisional tax instalments)
1: Repeal section 120KF
2: Subsection (1) applies for the 2022–23 and later income years.
208: Section 125 amended (Certain rights of objection not conferred)
In section 125(j)﻿(iv) 108A, 108B, 108A, 108AB, 108B,
209: Section 138E amended (Certain rights of challenge not conferred)
1: In section 138E(1)﻿(e)﻿(iv) 17F, 6E, 6F, 17F,
2: In section 138E(1)﻿(e)﻿(iv) 108A,
3: Subsection (2) applies for taxable periods starting on or after the day on which this Act receives the Royal assent.
210: Section 138P amended (Powers of hearing authority)
In section 138P(5) 108A, and 108B 108A, 108AB, and 108B
211: Section 139A amended (Late filing penalty for certain returns)
1: Repeal section 139A(10)
2: Subsection (1) applies for penalties imposed after 1 April 2022.
212: Section 139AA amended (Non-electronic filing penalty)
1: Repeal section 139AA(7)
2: Subsection (1) applies for penalties imposed after 1 April 2022.
213: Section 139B amended (Late payment penalty)
1: Repeal section 139B(1B)
2: After section 139B(2B)﻿(e)
f: an electronic sales suppression penalty under section 141EE
3: In section 139B(3B) section 24LC(3) or 157 section 157 or schedule 5, part C, clause 4(3)
4: In section 139B(5A) section 24LC(3) or 157 section 157 or schedule 5, part C, clause 4(3)
5: Subsection (1) applies for penalties imposed after 1 April 2022.
214: Section 141 amended (Tax shortfalls)
In section 141(2) section 141AA(1). sections 141AA(1) and 141EE(4).
215: New section 141EE inserted (Penalty for acquiring or possessing electronic sales suppression tools)
After section 141ED
141EE: Penalty for acquiring or possessing electronic sales suppression tools
1: This section applies to a person who—
a: is required by a tax law to make or keep records; and
b: knowingly acquires, or has possession or control of an electronic sales suppression tool (the suppression tool
c: has a purpose in relation to the suppression tool of evading the assessment or payment of tax under a tax law, whether by them or by another person.
2: This section does not apply when the person—
a: acquires a business whose operations include the use of the suppression tool or the right to use it; and
b: could not reasonably be expected to be aware of the existence of the suppression tool in the business; and
c: has not used the suppression tool in the business.
3: The person is liable to pay an electronic sales suppression penalty of $5,000.
4: For the purposes of the imposition of a penalty under subsection (3), a person to whom this section applies is liable to pay a single penalty for all related tax types and periods. A further penalty may be imposed for a later period of time for the continued possession or control of, or right to use, the suppression tool.
5: For the purposes of subsection (1)﻿(c), and without limiting the provision, a person is treated as meeting the purpose test if they have used the suppression tool to evade the assessment or payment of tax.
216: Section 141FB amended (Reduction of penalties for previous behaviour)
After section 141FB(5)
6: Despite subsection (1), no reduction in the amount payable is allowed when an electronic sales suppression penalty is imposed under section 141EE(3)
a: who is liable to a penalty under section 141E(1); and
b: whose use of an electronic sales suppression tool contributes to the evasion or similar act.
217: New section 141GB inserted (Reduction of electronic sales suppression penalties)
After section 141G
141GB: Reduction of electronic sales suppression penalties
1: This section applies when a person—
a: is liable to pay an electronic sales suppression penalty imposed under section 141EE
b: discloses to the Commissioner details relating to the acquisition, possession, control, or use of the electronic sales suppression tool.
2: The penalty payable by the person may be reduced if, in the Commissioner’s opinion, the person has made a full disclosure of all the details relating to the suppression tool.
3: The disclosure referred to in subsection (1) may be either—
a: a pre-notification disclosure made before the person is notified of a pending tax audit or investigation; or
b: a post-notification disclosure made after the person is notified of a pending tax audit or investigation, but before the Commissioner starts the audit or investigation.
4: The level by which the penalty is reduced under subsection (2) is,—
a: for pre-notification disclosure, 100%:
b: for post-notification disclosure, 40%.
5: Section 141G(4) and (5) apply for the purposes of subsection (3) in determining—
a: whether a person has been notified of a pending tax audit or investigation; and
b: the time at which an audit or investigation starts.
6: The Commissioner may specify the information required for a full disclosure and the form in which it must be provided.
218: Section 142B amended (Due date for shortfall penalties)
After section 142B(2)
3: A shortfall penalty that is an electronic sales suppression penalty under section 141EE
219: Section 143 amended (Absolute liability offences)
1: In the heading to section 143 offences and strict liability offences
2: In section 143(1)﻿(ba)
a: replace a tax invoice taxable supply information
b: replace section 24 section 19K or 19L
3: In section 143(1)﻿(c) 1985. 1985; or
4: After section 143(1)﻿(c)
d: claims, under section 20(3) of the Goods and Services Tax Act 1985, more than 1 amount of input tax for a taxable supply to the person, resulting in a total amount of input tax claimed by the person for the taxable supply that exceeds the output tax charged to the person for the taxable supply.
5: After section 143(2C)
2D: No person may be convicted of an offence against subsection (1)﻿(d) if the person proves that the person, either or both,—
a: took reasonable care when claiming the amounts of input tax:
b: corrected, under section 113A of the Tax Administration Act 1994, the amount claimed for input tax.
6: Subsections (3), (4), and (5) apply for taxable periods starting on or after the day on which this Act receives the Royal assent.
7: Subsection (2) applies for taxable periods starting on or after 1 April 2023.
220: Section 143A amended (Knowledge offences)
1: Repeal section 143A(1)﻿(f)
2: In section 143A(1)﻿(fb) section 24BAB(3) section 19M(4)
3: In section 143A(1)﻿(fc) section 24BAC section 12C
4: Subsection (1) applies for taxable periods starting on or after the day on which this Act receives the Royal assent.
5: Subsections (2) and (3) apply for taxable periods starting on or after 1 April 2023.
221: New sections 143BB and 143BC inserted
After section 143B
143BB: Manufacturing or supplying electronic sales suppression tools
1: A person commits an offence against this Act if they knowingly manufacture, develop, or publish an electronic sales suppression tool (the suppression tool section 141EE or 143BC
2: A person commits an offence against this Act if they—
a: knowingly supply, make available for use, or otherwise provide the suppression tool or a right to use the suppression tool to a person resident in New Zealand:
b: knowingly provide a service to a person resident in New Zealand that includes the use of the suppression tool.
3: A person who is convicted of an offence under subsection (1) or (2) is liable to a fine not exceeding $250,000.
143BC: Acquiring or possessing electronic sales suppression tools
1: A person commits an offence against this Act if they—
a: are required by a tax law to make or keep records; and
b: knowingly acquire, or have possession or control of an electronic sales suppression tool (the suppression tool
c: have a purpose in relation to the suppression tool of evading the assessment or payment of tax under a tax law, whether by them or by another person.
2: Subsection (1) does not apply when the person—
a: acquires a business whose operations include the use of the suppression tool or a right to use it; and
b: could not reasonably be expected to be aware of the existence of the suppression tool in the business; and
c: has not used the suppression tool in the business.
3: A person who is convicted of an offence under subsection (1) is liable to a fine not exceeding $50,000.
4: For the purposes of the imposition of a penalty under subsection (3), a person to whom this section applies is treated as committing a single offence in relation to all tax types and periods. A further penalty may be imposed for a later period of time for the continued possession or control of, or right to use, the suppression tool.
5: For the purposes of subsection (1)﻿(c), and without limiting the provision, a person is treated as meeting the purpose test if they have used the suppression tool to evade the assessment or payment of tax.
222: Section 143D amended (Offences related to disclosure of certain information by persons other than revenue officers)
After section 143D(1)﻿(a)
ab: a person who acquires, has access to, or is given the information as an officer, employee, or agent of an agency referred to in schedule 7, part C, clauses 20, 23, 23B, 24 to 29, 30, 31, 33, 34A, 35 to 38, 39B, 42, 44, 45, and 45B; or
223: Section 157A amended (Application of Parts 7 and 9 to defaulters)
After section 157A(1)﻿(a)﻿(i)
ib: section 12L of the Gaming Duties Act 1971; or
224: Section 173K amended (Application)
After section 173K(2)
3: Subsection (2) does not apply for Part O of the Income Tax Act 2007.
225: Section 183ABA amended (Remission in circumstances of emergency event)
Replace section 183ABA(1)﻿(a)
a: the taxpayer fails to make a payment required by a tax law (the required payment
ab: the failure is a consequence of an emergency event, declared in an Order in Council under this section, that significantly adversely affects the ability of the taxpayer to do either or both of—
i: make a reasonably accurate forecast, on 1 or more provisional tax instalment dates for a tax year, of the taxpayer’s residual income tax for the tax year:
ii: make the required payment on or before the due date for the required payment; and
226: Section 183ABAB amended (Remission of interest for taxpayers affected by COVID-19: general rules)
Replace section 183ABAB(4)
4: The time limit imposed by subsection (3)﻿(b) may be extended by Order in Council—
a: made on the recommendation of the Minister of Revenue; and
b: made before, or no more than 6 months after, the time limit (the previous time limit
c: extending the time limit by no more than 36 months from the previous time limit for—
i: all persons affected by the previous time limit; or
ii: a class or classes of persons affected by the previous time limit and described in the Order in Council.
227: Section 183ABAC amended (Remission of interest on terminal tax for 2020–21 tax year for provisional taxpayers affected by COVID-19)
1: In the heading to section 183ABAC
a: replace terminal tax residual income tax
b: replace 2020–2021 tax year 2020–2021 or 2021–2022 tax year
2: In section 183ABAC(1) 2020–21 tax year 2020–21 or 2021–22 tax year (the affected tax year
3: In section 183ABAC(1)﻿(a) and (b) 2020–21 tax year affected tax year
4: In section 183ABAC(1)﻿(c)﻿(i) terminal tax residual income tax
5: In section 183ABAC(1)﻿(c) and (d) 2020–21 tax year affected tax year
6: In section 183ABAC(2) between 31 March 2020 and the taxpayer’s terminal tax date for the 2020–21 tax year between the 31 March before the affected tax year and the taxpayer’s terminal tax date for the affected tax year
7: In section 183ABAC(3)﻿(b)
a: replace terminal tax residual income tax
b: replace 2020–21 tax year affected tax year
8: Subsections (1)﻿(b), (2), (3), (5), (6), and (7) apply for the 2020–21 and 2021–22 tax years.
228: Section 183C amended (Cancellation of interest)
1: Repeal section 183C(4B)﻿(b)
2: In section 183C(4B)﻿(c) the START tax type the tax assessed
3: In section 183C(4C) the START tax type the tax assessed
4: Repeal section 183C(4D)﻿(b)
5: In section 183C(4D)﻿(c) the START tax type the tax assessed
6: In section 183C(4E) the START tax type the tax assessed
7: Subsections (1), (2), and (3) apply for statements of account issued by the Commissioner after 1 April 2022.
229: Section 225 amended (Regulations)
1: Repeal section 225(1)﻿(c) and (d)
2: Repeal section 225(2)
230: Section 225AA repealed (Regulations: co-operative dairy and marketing companies)
Repeal section 225AA
231: Schedule 7 amended (Disclosure rules)
1: In schedule 7, part C, subpart 1, replace clause 23B(2) to (5)
2: Despite subclause (1), the Commissioner may disclose the information only if the Commissioner considers that—
a: the information is readily available; and
b: it is reasonable and practicable to disclose the information; and
c: it is not undesirable to disclose the information; and
d: the information is reasonably necessary for the purpose referred to in subclause (1).
2: Repeal schedule 7, part C, subpart 1, clause 36
3: Subsection (2) is repealed on 1 April 2025. 2025-04-01 Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 Section 231(3) repeals s 231(2) (which is to be brought into force by Order in Council)
232: Schedule 8 amended (Reporting of income information by individuals and treatment of certain amounts)
1: In schedule 8, part B, clause 2(2)﻿(a) section 25A section 26B
2: Replace schedule 8, part B, clause 2(3)﻿(c)﻿(i)
i: a schedular payment: Amendments to Child Support Act 1991
233: Amendments to Child Support Act 1991
Sections 234 to 244 Child Support Act 1991 2022-03-30 Child Support Act 1991 (except for sections as below) 2022-04-01 Child Support Act 1991 see section 2(37): sections 234, 235, 236, and 244
234: Section 40AA amended (Interpretation for purposes of sections 40 to 45)
In section 40AA election period
a: replace paragraph (b) with:
b: if notice of the election is given under section 40(1) during the child support year, the period in the child support year that starts on the first day of the month in which the notice is given and ends on the last day of the child support year; and
b: replace paragraph (c) (as inserted by the Child Support Amendment Act 2021
c: if notice of the election is given during or after the child support year under section 40(8), the period that—
i: starts on the later of the first day of that child support year and the first day of the month in which the formula assessment begins; and
ii: ends on the last day of that child support year
235: Section 40 amended (Estimated income)
1: After section 40(4)﻿(d)
da: notice of the election is given after the child support year to which it relates, and the person has made an earlier election for that child support year; or
2: In section 40(8) Child Support Amendment Act 2021 after the end of during or after
3: In section 40(9) Child Support Amendment Act 2021 the end of
236: Section 44 amended (End-of-year reconciliation)
In section 44(3D) Child Support Amendment Act 2021 reconciliation period
ia: if the notice of the election is given during or after the child support year under section 40(8), the later of the first day of the child support year and the first day of the month in which the formula assessment begins; or
237: Section 81A replaced (Amendments of assessments arising from living circumstances existing at time initial assessment made)
Replace section 81A
81A: Amendments of assessments arising from living circumstances existing at time when assessment begins
1: This section applies if—
a: the Commissioner made an assessment on the basis that certain living circumstances existed at the time when the assessment begins; and
b: the recipient of the assessment advises the Commissioner—
i: that those circumstances did not exist at that time; and
ii: of the relevant living circumstances that did exist at that time; and
c: section 82 does not apply.
2: The Commissioner may backdate any amendment made under section 87 to the time when the assessment begins if the recipient of the assessment advises the Commissioner within the period of 28 days beginning with the date of the notice of assessment.
3: The Commissioner may also backdate any amendment made under section 87 to the time when the assessment begins if the recipient of the assessment—
a: is a liable parent, and the backdating has the effect of increasing the amount of the parent’s child support liability:
b: is a receiving carer, and the backdating has the effect of decreasing the amount of child support payable in respect of that carer.
4: However, the Commissioner may only backdate any amendment made under section 87 to the time when the assessment begins if—
a: the recipient has provided to the Commissioner such supporting documentation as the Commissioner requires; and
b: the Commissioner is satisfied that—
i: the assessment was made on the basis that certain living circumstances existed at the time when the assessment begins that did not in fact exist at that time; and
ii: the relevant living circumstances advised by the recipient did exist at that time.
5: Otherwise, an amendment of the assessment under section 87 is effective only from the date on which the recipient advises the Commissioner.
238: Section 87A amended (Four-year time bar for amendment of certain assessments)
1: In section 87A(1)﻿(a) in which the assessment was given to which the assessment relates
2: In section 87A(3)﻿(c) paid , or is liable to pay,
3: In section 87A(3)﻿(f) notification). notification); or
4: After section 87A(3)﻿(f)
g: the Commissioner has made a determination under Part 6A in relation to an application under section 96B to which the 4-month time limit in section 96BA applies.
239: Section 88 amended (Notice of assessment of formula assessment of child support)
In section 88(3A) was made begins
240: Section 89H amended (Applications for exemptions under this subpart)
Replace section 89H(1)﻿(ca)
ca: in the case of an application for an exemption under section 89CA, include evidence, as reasonably required by the Commissioner, to satisfy the Commissioner that, during the period to which the application relates, the applicant—
i: has a long-term period of illness; and
ii: is unable to engage in paid work as a result of the long-term period of illness; and
241: Section 152B amended (Offsetting child support payments)
In section 152B(1) assessment or a voluntary agreement
242: Section 180D amended (Sections 180B and 180C to cover child support penalties)
1: Repeal section 180D(a) and (b)
2: Before section 180D(c)
ba: a penalty (as defined in section 135) imposed in relation to child support:
bb: a pre-2021 penalty (as defined in section 135) imposed in relation to child support:
243: Schedule 1 amended (Application, transitional, and savings provisions relating to amendments to Act made on or after 1 April 2015)
1: In Schedule 1, Part 4, clause 13 old Act
2: Repeal Schedule 1, Part 4, clause 14
3: In Schedule 1, Part 4, after clause 16
16A: Amendment to section 44 (End-of-year reconciliation)
1: The amendment to section 44 made by section 16 of the 2021 Amendment Act applies only in relation to child support in respect of child support years ending after commencement of section 16 of the 2021 Amendment Act.
2: The old section 44 continues to apply in relation to child support in respect of child support years ending before commencement of section 16 of the 2021 Amendment Act.
4: In Schedule 1
a: insert the Part set out in Schedule 2
b: make all necessary consequential amendments.
244: Schedule 3 amended (Expenditure on children)
In Schedule 3 , or the oldest 3, Amendments to KiwiSaver Act 2006
245: Amendments to KiwiSaver Act 2006
Sections 246 to 263 KiwiSaver Act 2006 2022-03-30 KiwiSaver Act 2006
246: Section 4 amended (Interpretation)
1: This section amends section 4(1)
2: Insert, in appropriate alphabetical order: assessment
3: In the definition of employer contribution
bb: if the employer knows that the employee has opted out, does not include an amount that would otherwise be an employer contribution; and
247: Section 59A amended (When this subpart applies)
After section 59A(b)
bb: the rule in section 33 allowing opt-in has been applied prior to 1 July 2019 to a person who, at the time, did not meet the requirements of section 33(a):
248: Section 59B amended (Initial back-dated validation)
1: In section 59B(2) the automatic enrolment rules, the automatic enrolment rules, the age requirement for the application of the opt-in rule in section 33,
2: In section 59B(2)﻿(b) section 59A(b)﻿(i), section 59A(b)﻿(i), (bb),
249: Section 59C amended (Confirmed back-dated validation)
1: In section 59C(1)﻿(a) section 59A(b)﻿(i), section 59A(b)﻿(i), or the opt-in rule in section 33 was applied to a person because of the mistake described in section 59A(bb),
2: Repeal section 59C(1)﻿(a)﻿(i)
3: In section 59C(2)﻿(b) section 59A(b)﻿(i). section 59A(b)﻿(i); and
c: in relation to whom no mistake described in section 59A(bb)
250: Section 59D amended (No confirmed back-dated validation)
In section 59D(1)﻿(a) section 59A(b)﻿(i), section 59A(b)﻿(i), or the opt-in rule in section 33 was applied to a person because of the mistake described in section 59A(bb),
251: Section 73 amended (Certain unremitted deductions and employer contributions entered in and paid out of holding account)
After section 73(1)
1B: For the purposes of subsection (1)﻿(a)﻿(ii), an amount of an employer contribution for an employee includes a contribution payable on or before 31 March 2020 that remains unpaid on 1 April 2020 in relation to which the relevant information referred to in subsection (1)﻿(b) and (c) has been provided to the Commissioner.
252: Section 78 amended (Treatment of certain unremitted deductions and employer contributions in holding account)
After section 78(3)﻿(a)
ab: for an employer contribution referred to in section 73(1B)
253: Section 80 amended (Refund by Commissioner of amounts paid in excess of required amount of deduction or if employee opts out)
After section 80(2)
3: This section is subject to section 91B
254: Section 81 amended (Refund by provider of amounts paid in excess of required amount of contribution or if member opts out)
After section 81(3)
4: This section is subject to section 91B
255: Section 81B amended (Residual refunds)
In section 81B
2: This section is subject to section 91B
256: Section 83 amended (Unclaimed money held by Commissioner)
Replace section 83(3)﻿(c)
c: as if the words “more than $100” in the words before the subparagraphs in section 4(3)﻿(a) of the Unclaimed Money Act 1971 were replaced with the words “1 cent or more”; and
257: Section 85 amended (Time when deductions and employer contributions treated as received for interest purposes)
1: Repeal section 85(1)
2: In section 85(2)
a: replace The amount is treated An amount referred to in section 73(1) is treated
b: after subsection (2)﻿(b), insert:
bb: for an employer contribution referred to in section 73(1B)
258: New cross-heading and section 91B inserted
After section 91 Time bar for refunding contributions
91B: Time bar for refunding contributions
1: A provider must not refund an amount of contribution paid to the provider by the Commissioner in respect of a member of that provider’s KiwiSaver scheme that is in excess of the amount that is required to be paid to the provider under the KiwiSaver scheme and this Act if—
a: the amount is—
i: an amount that was deducted from the member’s salary or wages; or
ii: an amount of employer contribution; and
b: the amount has arisen on an amended assessment; and
c: the 4-year period under section 108AB
d: the Commissioner has not requested the provider to refund the amount to the Commissioner.
2: The Commissioner must not refund an amount of contribution that is in excess of the amount that this Act requires to be deducted or paid if—
a: the amount is—
i: an amount that was deducted from a member’s salary or wages; or
ii: an amount of employer contribution; and
b: the amount has arisen on an amended assessment; and
c: the 4-year period under section 108AB
3: For the purposes of this section, the provision by a person of employment income information for an amount of a contribution for a payday is treated as the making of an assessment of the amount of the contribution by the person.
259: Section 100 amended (Refunds of employer contribution by Commissioner if employee opts out)
In section 100
2: This section is subject to section 91B
260: Section 101 amended (Refunds of employer contribution by provider)
After section 101(1B)
1C: This section is subject to section 91B
261: Section 101AA amended (What Commissioner must do with employer contribution refunded by provider)
After section 101AA(2)
3: This section is subject to section 91B
262: Section 114 amended (Refunds if employee loses, etc, savings suspension notice)
After section 114(3)
4: This section is subject to section 91B
263: Schedule 1 amended (KiwiSaver scheme rules)
In schedule 1, clause 4(6) grandparented member them. them; and
c: does not include a person who was of New Zealand superannuation qualification age before 1 July 2019. Amendments to Student Loan Scheme Act 2011
264: Amendments to Student Loan Scheme Act 2011
Sections 265 266 Student Loan Scheme Act 2011 2022-03-30 Student Loan Scheme Act 2011
265: Section 211 amended (Meaning of notify)
In section 211(1)
a: paragraph (a), replace post, or fax; or post; or
b: paragraph (d), replace electronic means (except a fax), if electronic means, if
266: Section 212 amended (Meaning of notify a person in writing)
In section 212(1)
a: paragraph (a), replace post, or fax; or post; or
b: paragraph (b), replace electronic means (except a fax), if electronic means, if Amendments to Unclaimed Money Act 1971
267: Amendments to Unclaimed Money Act 1971
1: This section amends the Unclaimed Money Act 1971
2: In section 8(5)﻿(c) the date on which this Act receives the Royal assent 30 March 2021
3: In section 8(5)﻿(c)﻿(ii) the date on which the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 receives the Royal assent 30 March 2021 2022-03-30 Unclaimed Money Act 1971 Amendments to Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020
268: Amendments to Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020
1: This section amends the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020
2: Repeal the following provisions:
a: section 2(37)
b: section 235
c: section 239(3) 2022-03-30 Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 Amendment to Child Support Amendment Act 2021
269: Amendment to Child Support Amendment Act 2021
1: This section amends the Child Support Amendment Act 2021
2: In section 15(2) taxable income income 2022-03-31 Child Support Amendment Act 2021 see section 2(36) Revocation of Co-operative Dairy Companies Income Tax Regulations 1955
270: Co-operative Dairy Companies Income Tax Regulations 1955 revoked
Revoke the Co-operative Dairy Companies Income Tax Regulations 1955 2022-03-30 Co-operative Dairy Companies Income Tax Regulations 1955 Revocation of Cooperative Milk Marketing Companies Income Tax Regulations 1960
271: Cooperative Milk Marketing Companies Income Tax Regulations 1960 revoked
Revoke the Cooperative Milk Marketing Companies Income Tax Regulations 1960 2022-03-30 Cooperative Milk Marketing Companies Income Tax Regulations 1960 Revocation of Cooperative Pig Marketing Companies Income Tax Regulations 1964
272: Cooperative Pig Marketing Companies Income Tax Regulations 1964 revoked
Revoke the Cooperative Pig Marketing Companies Income Tax Regulations 1964 2022-03-30 Cooperative Pig Marketing Companies Income Tax Regulations 1964