Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009

1: Title
This Act is the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009
2: Commencement
1: This Act comes into force on the day after the date on which it receives the Royal assent, except as provided in this section.
2: Sections 102 118(20) New Zealand Superannuation and Retirement Income Amendment Act 2009
3: Section 164
4: Sections 149 150 151 152 153 155 157 158 160 161 162(2), (5), (6), (7), (8), and (9) 163 schedule 2
5: Sections 146 162(3)
6: Section 159 schedule 2
7: Section 154
8: Section 162(4)
9: Section 156
10: Sections 4 6 7 10 11 12 13 14 15 16 17 18 20 26 29 31 40 41 42 44 45 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 80(1) 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 104(1) 105 106 107 110 111 112 113 116 117 118 121 122(1) 123(1) 125 126 135 139 schedule 1
11: Sections 19 30 43 schedule 1, row 21
12: Sections 23 24 25 27 28 schedule 1, row 18
13: Sections 147 165
14: Sections 166 167
15: Sections 74 75 76
16: Sections 78(1) 114 115 118(21) schedule 1, row 35
17: Sections 8 9 21 22 39 46 47 48 49 50 51 52 83 103 104(2) 108 109 118 120 122 123(2) and (3), 124 130 131 132 133 134 schedule 1, rows 24 to 26
18: Sections 32 33 34 35 36 37 38 118 schedule 1, row 19
19: Sections 77 78 118(35) 119 122(3 schedule 1, row 37
20: Sections 73 78 79 80(2) 81 82 118(30) and (40), schedule 1, row 36
1: Amendments to Income Tax Act 2007
3: Income Tax Act 2007
Sections 4 to 126 2009-12-07 Income Tax Act 2007 For all retrospective provisions (“as at date” is the assent date, not the in force date— COG 16.20) 2009-12-08 Income Tax Act 2007 in force on day that New Zealand Superannuation and Retirement Income Amendment Act 2009 comes into force (SR 2009/362) 2010-01-05 Income Tax Act 2007 sections 102 and 118(20) of this Act (see s 2(2) 2010-01-07 Income Tax Act 2007 2010-02-01 Income Tax Act 2007 2010-04-01 Income Tax Act 2007 2010-07-01 Income Tax Act 2007 2011-04-01 Income Tax Act 2007 2013-04-01 Income Tax Act 2007
4: Flowchart B2: Calculating and satisfying income tax liabilities
In flowchart B2: Calculating and satisfying income tax liabilities, Part 1 Part I
5: Double tax agreements
After section BH 1(6) Reference to unrelated persons
7: A reference in a double tax agreement to 2 persons being unrelated is to be read, if possible, as a reference to 2 persons being not associated.
6: Available capital distribution amount
In section CD 44(11) subsection (12) subsections (7)(c) and (12)
7: Benefits, pensions, compensation, and government grants
In section CF 1(2)(a) and (b) or refunded to, to or refunded to,
8: Attributed income of certain investors in multi-rate PIEs
1: In section CX 56(2)(b) an investor rate of 19.5% under section HM 58 (Optional investor rates for trustees: 30%, 19.5%) a prescribed investor rate referred to in schedule 6, table 1, row 5 or 7
2: Subsection (1)
9: Available capital distribution amount: 1988 to 2010
1: After section CZ 9B(5), the following is added: Relationship with section CD 44
6: Section CD 44(7)(c) (Available capital distribution amount) overrides this section.
2: Subsection (1)
10: Goods and services tax
In section DB 2(2) section 21 or 21I(1) to 21I(3) section 21 or 21I(1) to (3)
11: Research or development
1: Section DB 34(2)
2: Subsection (1) applies to a person who recognises the expenditure as an expense for financial reporting purposes—
a: under paragraph 5.1 or 5.2 of the old reporting standard or because paragraph 5.4 of that standard applies; or
b: under paragraph 68(a) of the new reporting standard applying, for the purposes of that paragraph, paragraphs 54 to 67 of that standard.
2: Section DB 34(4)(b)
b: would be required, if the expenditure were material, to recognise it for financial reporting purposes—
i: under paragraph 5.1 or 5.2 of the old reporting standard or because paragraph 5.4 of that standard applies; or
ii: under paragraph 68(a) of the new reporting standard applying, for the purposes of that paragraph, paragraphs 54 to 67 of that standard.
3: Subsections (1) and (2)
12: Some definitions
In section DB 35(1) reporting standard new reporting standard old reporting standard .
13: Criteria for approval of share purchase schemes: when period of restriction ends
In section DC 14(4) other than one described other than a reason described
14: Cost of acquiring timber or right to take timber: other cases
1: In section DP 10(5) acquired the timber of the total of acquired the timber for the total of
2: Subsection (1)
15: Section DP 11 replaced
1: Section DP 11
DP 11: Cost of timber
When this section applies
1: This section applies when a person—
a: derives an amount on the disposal of timber and the amount is income of the person under section CB 24 (Disposal of timber or right to take timber) or CB 25 (Disposal of land with standing timber); and
b: has incurred expenditure in relation to the timber that is a cost of timber. Deduction
2: The person is allowed a deduction for the amount that is a cost of timber. Timing of deduction
3: The deduction is allocated—
a: for timber harvested from the land before the time of disposal, to the income year in which the timber first becomes trading stock of the person; or
b: otherwise, by section EA 2 (Other revenue account property). Meaning of timber
4: In this section, timber
a: the creation or grant of a right to take timber:
b: the grant of a licence or an easement in relation to timber:
c: the creation of a forestry right as defined in section 2 of the Forestry Rights Registration Act 1983, other than a right in favour of the proprietor in relation to establishing, maintaining, and harvesting timber. Link with subpart DA
5: This section supplements the general permission and overrides the capital limitation. The other general limitations still apply. amount, capital limitation, cost of timber, deduction, dispose, general permission, income year, timber, trading stock .
2: Subsection (1)
16: Acquiring film rights
1: Section DS 1(2)
2: This section does not apply to expenditure that a person incurs in acquiring a film right if—
a: the person operates a television station, a television network, or a cable television system, and the film right is acquired mainly to enable the film to be broadcast in New Zealand; or
b: the film is intended to be shown as an advertisement; or
c: the expenditure is film production expenditure; or
d: section DS 2B applies to the expenditure.
2: Subsection (1)
17: Mining exploration expenditure or mining development expenditure on acquisition of asset
1: In section DU 2(2)(a) other than one described other than a case described
2: Subsection (1)
18: Meaning of income from forestry
1: Section EH 34(1)
1: Income from forestry
a: means income derived from either or both of the sales described in subsection (2) in the circumstances described in subsection (3):
b: includes PFSI forestry income.
2: Subsection (1)
19: Determination alternatives
1: In section EW 15E(2)(e) paragraphs (a) to (d) paragraphs (aa) to (d)
2: Subsection (1)
20: Consistency of use of IFRS method
In section EW 25B(3) However, those sections do not apply if the change—
a: is from the fair value method; and
b: relates to a financial arrangement that is not subject to a creditor workout.
21: Consideration when debt sold at discount to associate of debtor
In section EW 43(1) under the 1988 version provisions
22: Income and deduction when debt sold at discount to associate of debtor
In section EW 49(1) under the 1988 version provisions
23: Attributable CFC amount
1: In section EX 20B(4) Arrangement
2: In section EX 20B(4)(b)(iii) to the extent that the income to the extent to which the income
3: Section EX 20B(11)(b)
b: the CFC is a network operator under the Telecommunications (Interception Capability) Act 2004 (a network operator
i: a group of persons has, for the whole of the CFC's accounting period, voting interests and, if a market circumstance exists, market value interests, of more than 50% in the CFC; and
ii: the group of persons also has, for the whole of the CFC's accounting period, voting interests and, if a market value circumstance exists, market value interests, of more than 50% in a network operator; and .
4: Subsections (1) to (3)
24: Net attributable CFC income or loss
1: In section EX 20C(6)(c)(ii) arrangement income arrangement
2: Subsection (1)
25: Adjustment of fraction for excessively debt funded CFC
1: In section EX 20D(7)(b)(ii) arrangement income arrangement
2: Subsection (1)
26: Attributable CFC amount and net attributable CFC income or loss
1: In section EX 21(26) the amount actuarially determined to be the part of the CFC's net income or loss the amount actuarially determined to be part of the CFC's profit or loss
2: Subsection (1)
27: Non-attributing active CFC: default test
1: In section EX 21D(7)(b) not exceeding the included amount, that not exceeding the included amount, to which
2: Subsection (1)
28: Non-attributing active CFC: test based on accounting standard
1: In section EX 21E(7)(g)(iii) to the extent that the income to the extent to which the income
2: In section EX 21E(9)(d) not exceeding the included amount, that not exceeding the included amount, to which
3: In section EX 21E(10)(d)(iii) to the extent that the gain to the extent to which the gain
4: Subsections (1) to (3)
29: Exemption for Australian unit trusts with adequate turnover or distributions
1: In section EX 32(1)(f) section 15T section 15N
2: Subsection (1)
30: Limits on choice of calculation methods
In section EX 46(10)(c)(i) and (cb)(i) fixed-rate shares fixed-rate foreign equities
31: Accounting profits method
1: Section EX 49(6)
6: For an income interest that the person has held for more than 12 months, the person may follow a simplified calculation process by choosing to be treated as holding, at all times in the income year, the same interest, including zero interest, that they held at the end of the income year. The person makes the election by completing their return of income accordingly for the relevant income year.
2: Subsection (1) subsection (1) section EX 49(6)
32: Policyholder base income: non-participation policies
1: In section EY 15(5) in respect of a policy relating to a policy
2: Subsection (1)
33: Policyholder base income: profit participation policies
1: In section EY 17(2)(b)(i) shareholders shareholder's retained earnings
2: In section EY 17(2)(b)(ii) shareholders shareholder's retained earnings
3: In section EY 17(2)(d) in respect of participation policies in relation to profit participation policies
4: In section EY 17(3)(a) policyholder unvested liabilities the value of assets supporting the life insurer's policyholder unvested liabilities
5: Subsections (1) to (4)
a: on and after 1 July 2010, unless paragraph (b)
b: for an income year that includes 1 July 2010 and later income years, if the life insurer chooses to apply the new life insurance rules in the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009
34: Policyholder base allowable deductions: profit participation policies
1: In section EY 18(b) base. base; and
c: the item net transfers
2: Subsection (1)
a: on and after 1 July 2010, unless paragraph (b)
b: for an income year that includes 1 July 2010 and later income years, if the life insurer chooses to apply the new life insurance rules in the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009
35: Shareholder base income: non-participation policies
1: In section EY 19(2) in respect of a policy relating to a policy
2: Subsection (1)
36: Shareholder base income: profit participation policies
1: In section EY 21(2)(b)(i) shareholders shareholder's retained earnings
2: In section EY 21(2)(b)(ii) shareholders shareholder's retained earnings
3: In section EY 21(2)(d) in respect of profit participation policies in relation to profit participation policies
4: Subsections (1) to (3)
a: on and after 1 July 2010, unless paragraph (b)
b: for an income year that includes 1 July 2010 and later income years, if the life insurer chooses to apply the new life insurance rules in the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009
37: Shareholder base allowable deductions: profit participation policies
1: In section EY 22(b) base. base; and
c: the item net transfers
2: Subsection (1)
a: on and after 1 July 2010, unless paragraph (b)
b: for an income year that includes 1 July 2010 and later income years, if the life insurer chooses to apply the new life insurance rules in the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009
38: Transitional adjustments: life risk
1: In section EY 30(2) employer sponsored workplace
2: In section EY 30(3)(b) requirements of requirements for the period described in
3: In the heading to section EY 30(4) employer sponsored workplace
4: In section EY 30(4) employer sponsored workplace
5: Section EY 30(4)(b)
b: the policy, if it is a credit card repayment insurance, meets the requirements for the period described in subsection (5)(c), or, if it is a workplace group policy, meets the requirements for the period described in subsection (5)(d) .
6: In section EY 30(5) For the purposes of subsections (2)(b), (3)(b), and (4)(b), this section applies to a policy to the extent to which, for the following relevant period, it is described by the following relevant requirements The following are the requirements and periods for the purposes of subsections (2)(b), (3)(b), and (4)(b), for a policy
7: In section EY 30(5)(c)(ii) day. day:
d: for a life insurance policy for which the premium may vary each year, the period that starts on the grandparenting start day and ends on the earlier of the following:
i: the day that the policy expires:
ii: the day that is before the 3 years anniversary of the grandparenting start day.
8: Section EY 30(11) Meaning of credit card repayment insurance
11: Credit card repayment insurance
9: Section EY 30(12)
10: In section EY 30(14) employer sponsored workplace
11: After section EY 30(14) Meaning of workplace group policy
15: Workplace group policy
a: the group of individuals is a class of employees of an employer, and the employer is the sponsor of the policy, or are members of a union registered under the Employment Relations Act 2000, and the trade union is the sponsor of the policy; and
b: the general public is excluded; and
c: where the sponsor is the employer, joining the life insurance policy is compulsory for the relevant class of employees, and the employer must pay the premiums.
12: Subsections (1) to (11)
a: on and after 1 July 2010, unless paragraph (b)
b: for an income year that includes 1 July 2010 and later income years, if the life insurer chooses to apply the new life insurance rules in the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009
39: Policyholder income formula: PILF adjustment
1: In section EY 43C(2) invested directly invested indirectly
2: In section EY 43C(2) treated as investing directly in a multi-rate PIE treated as investing indirectly in a multi-rate PIE
3: Subsections (1) and (2)
40: Consistency of use of IFRS method:
Determination G3 In section EZ 52B(2)(a) ; and or an alternative to Determination G3 section EW 15E(2)(e)
41: Attribution rule for income from personal services
1: After section GB 27(4) Cancellation of notional imputation credits
5: For the purposes of subsection (4), to the extent to which the dividend paid by the company would have had an imputation credit attached that arose under section OB 16 sections HA 14 to HA 19
2: Subsection (1)
42: Loss balances not carried forward
In section HA 21 subparts IA IQ subparts IA (General rules for tax losses) and IQ (Attributed controlled foreign company net losses and foreign investment fund net losses)
43: Beneficiary income
1: Section HC 6(1)(b)
b: it is paid to a beneficiary of the trust in the income year or by the date after the end of the income year referred to in subsection (1B)
2: After section HC 6(1) Date by which income must be allocated
1B: The date referred to in subsection (1)(b)
a: a date that falls within 6 months of the end of the income year; or
b: the earlier of—
i: the date on which the trustee files the return of income for the income year; or
ii: the date by which the trustee must file a return for the income year under section 37
3: Section HC 6(3) Deriving beneficiary income in same year
3: When an amount derived by a trustee in an income year is also beneficiary income, the beneficiary is treated as having derived the income in the same tax year as that corresponding to the trustee's income year.
4: Subsections (1) to (3)
44: Who is a settlor?
1: After section HC 27(3) Employee share purchase agreements
3B: Despite subsection (2), an employer is not a settlor for the purposes of the trust rules in relation to a payment made by them to the trustee of an employee share purchase agreement if—
a: some or all of the payment is used by the trustee to acquire shares under the terms of the employee share purchase agreement; and
b: an amount that is less than or equal to the payment used by the trustee would be income of an employee under section CE 1(d)
2: Subsection (1) subsection (1)
a: in the period that starts on the first day of the 2008–09 income year and ends on the date of Royal assent of this Act; and
b: in relation to a payment to an employee share purchase agreement in consideration of a valid salary sacrifice made by the employee; and
c: relying upon paragraph (a)(i) of the definition of settlor Income Tax Act 2004 settlor corpus foreign trust settlement
45: Unlisted company choosing to become portfolio listed company
1: After section HL 12(2) Extension in certain cases
3: Despite subsection (2), a company that makes an election under subsection (1) does not stop being a portfolio listed company from the last day of the period of 2 years from the date on which the election takes effect if—
a: the company has met the requirements of subsection (1)(b) and (c) before 2 July 2009; and
b: a period of 4 years from the date on which the election takes effect has not expired. Further extension granted by Commissioner
4: Despite subsections (2) and (3)
2: Subsection (1)
46: Minimum number of investors
1: In section HM 14(3), Subsection (4) and sections Sections
2: Subsection (1)
47: Maximum investors' interests
1: In section HM 15(2), Sections HM 21(2) to (4), HM 22, and HM 22B Sections HM 21(2) to (4) and HM 22
2: Subsection (1)
48: Requirements for listed PIEs: unlisted companies
1: After section HM 18(2), the following is added: Extension of period for listing
3: Despite subsection (2), a company does not lose PIE status at the end of the 2-year period if—
a: the company has met the requirements of subsection (1)(b) and (c) before 2 July 2009; and
b: a period of 4 years from the date on which the election takes effect has not expired. Further extension granted by Commissioner
4: Despite subsections (2) and (3)
2: Subsection (1)
49: Sections HM 56 to HM 59 replaced
1: Sections HM 56 to HM 59 are replaced by the following:
HM 56: Prescribed investor rates: schedular rates
The prescribed investor rate of an investor in a multi-rate PIE is determined under schedule 6, table 1 investor, multi-rate PIE, prescribed investor rate
HM 57: Prescribed investor rates for certain investors: 0%
An investor (a zero-rated investor
a: a company:
b: an organisation or trust with income that is exempt income under section CW 41 CW 42
c: a proxy acting under section HM 33:
d: an exiting investor referred to in section HM 61:
e: a PIE or superannuation fund, other than a trustee who chooses a rate under schedule 6, table 1, row 3 or 5
f: a person who derives income as a trustee and does not choose a rate under schedule 6, table 1, row 3, 5, or 7 company, exempt income, investor, multi-rate PIE, PIE, prescribed investor rate, resident in New Zealand, superannuation fund, trustee
HM 58: Transitional rate for certain investors
When this section applies
1: This section applies to a multi-rate PIE in relation to an income year that starts on or after 1 April 2010 and a person who—
a: is an investor in the PIE; and
b: has a notified investor rate of 19.5% on the last day of the preceding income year. Rate applying
2: The person's notified investor rate for income years that start on or after 1 April 2010 is treated as 21%. Exception: new notified rate
3: Subsection (2) income year, multi-rate PIE, notified investor rate, notify .
2: Subsection (1)
50: Notified rates
1: In section HM 60, the section heading is replaced by Notified investor rates
2: In section HM 60(1),––
a: HM 56 to HM 59 HM 56 to HM 58
b: for a period for a period (the notified investor rate
3: In section HM 60(4),––
a: in the heading, HM 56 to HM 59 HM 56 to HM 58
b: notifies an investor rate advises a notified investor rate
c: HM 56 to HM 59 HM 56 to HM 58
4: Section HM 60(5), other than the heading, is replaced by the following:
5: The Commissioner may notify a PIE to disregard an investor's notified investor rate if the Commissioner considers the rate is incorrect. The notification must include a rate for the investor that the Commissioner considers appropriate.
5: In section HM 60(6), not notify a multi-rate PIE of their investor rate not advise a multi-rate PIE of their notified investor rate
6: Subsections (1) to (5)
51: Certain exiting investors zero-rated
1: In section HM 61, applying to an investor applying to an investor for a quarter
2: Subsection (1)
52: When elections take effect
1: Section HM 72(2)(b) is replaced by the following:
b: an event or situation arises that means the entity would lose PIE status under any of sections HM 24 to HM 28 because the requirements of sections HM 11 to HM 16 were not met in each quarter of the 12-month period.
2: Subsection (1)
53: New section HZ 7 added
After section HZ 6
HZ 7: Saving of binding rulings relating to settlements on trusts
When, and extent to which, this section applies
1: This section applies when, and to the extent to which,—
a: before the commencement of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009
i: an applicant has applied for a binding ruling on an arrangement that is entered into, or that the applicant seriously contemplates will be entered into, before the commencement of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009
ii: a binding ruling is issued; and
b: the binding ruling is about a provision of the Income Tax Act 2004
c: the binding ruling—
i: is made before or after the commencement of this Act and continues to exist at the commencement of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009
ii: is made in relation to a provision of the Income Tax Act 2004
d: in the absence of this section, the commencement of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 Ruling about new law
2: The binding ruling continues to exist despite the intended change referred to in subsection (1)(c)(ii) 2009 No confirmation rulings
3: To the extent to which a binding ruling continued by subsection (2) 2009
a: the new law applies to the arrangement or to the person and the arrangement; or
b: this subsection applies to the arrangement or to the person and the arrangement. arrangement, binding ruling, Commissioner, settlement .
54: Tax losses
1: In section IA 2(2)
a: carried forward to carried forward under section IA 3(4) to
b: subtracted subtracted under section IA 4(1)(a)
2: Section IA 2(4)(b)
b: a person whose imputation credits are included in their annual gross income for the tax year: the amount of converted imputation credits arising under section LE 2 (Use of remaining credits by companies and trustees) for the tax year: .
3: In section IA 2(4)(c) section LP 10 section LP 10(3)
4: In section IA 2(4)(d) treated as a tax loss component of company A: the payment referred to in section OB 69(5) converted into a tax loss component of company A: the amount calculated under section OB 69(7)
5: In section IA 2(4)(e) corresponding income year tax year
6: In section IA 2(4)(f) IQ 3 IQ 3(3)
7: In section IA 2(4)(g) corresponding income year tax year
8: Section IA 2(6)
9: Section IA 2(7)
7: For the purposes of this subpart, a tax loss component
a: means an amount included in a tax loss for the tax year under subsection (3) or (4):
b: includes—
i: an unused amount of a net loss or an amount treated as a net loss or as an available net loss of a person arising before the 2008–09 tax year which the person was entitled to have carried forward under section IE 1 (Net losses may be offset against future net income) of the Income Tax Act 2004 to that tax year:
ii: an amount included in a company's loss balance at the end of the tax year to which sections IZ 4 to IZ 6 (which relate to tax losses for tax years before 1992) apply, or other amounts in relation to which modified continuity rules apply.
10: Subsections (1) to (9)
55: Using tax losses in tax year
1: The heading to section IA 3(5) Relationship with other provisions in this subpart
2: In section IA 3(5) Sections IA 5 to IA 8 Sections IA 5, IA 8, and IA 10
3: Subsections (1) and (2)
56: Using loss balances carried forward to tax year
1: In section IA 4(1)(b) remaining loss balance remaining loss balance carried forward under section IA 2(2)
2: Section IA 4(2) Relationship with other provisions in this subpart
2: Sections IA 5 IA 8 to IA 10
3: Subsections (1) and (2)
57: Restrictions on companies' loss balances carried forward
1: Section IA 5(1)
1: A company's tax loss component is carried forward in a loss balance only if the minimum continuity requirements of subsections (2) and (3) are met. The tax loss component includes an unused tax loss component carried forward from an earlier income year.
2: Section IA 5(4)
4: If a tax loss component cannot be carried forward because the requirements of subsections (2) and (3) are not met, the company may apply section IP 3 (Continuity breach: tax loss components of companies carried forward) to determine whether some or all of the tax loss component is carried forward in a loss balance.
3: In section IA 5(6)
a: in the definition of minimum market value interest for a person and a period for a person and a continuity period
b: in the definition of minimum voting interest for a person and a period for a person and a continuity period
4: Subsections (1) to (3)
58: Restrictions on companies grouping tax losses
1: In section IA 6(1) may use may use under section IA 3(2)
2: Subsection (1)
59: Restrictions relating to ring-fenced losses
1: After section IA 7(1) Treatment as tax loss component
1B: For the purposes of the application of sections IA 5, IA 6, IA 9, and IA 10, a ring-fenced tax loss under this section is treated as if it were a tax loss component.
2: Section IA 7(2)
2: The general rules do not apply in relation to a loss-attributing qualifying company (LAQC) to an amount that would have been a loss balance carried forward under section IA 3(4) in the absence of sections HA 21 and HA 24(5) (which relate to the treatment of losses by LAQCs). The provisions that deal with these losses are sections HA 24 to HA 27.
3: In section IA 7(6) surplus surplus amount
4: Subsections (1) to (3)
60: General treatment
1: In section IQ 1(1) subpart IA (General rules for tax losses) sections IA 5, IA 9, and IA 10 (which relate to the continuity rules, the use of losses, and adjustments)
2: Subsection (1)
61: New section IQ 1B inserted
1: After section IQ 1
IQ 1B: Losses carried forward to tax year
An attributed CFC net loss or a FIF net loss or both may be carried forward to a tax year. Section IA 5 (Restrictions on companies' loss balances carried forward) applies for the purposes of this subpart as if the net loss were a tax loss component. attributed CFC net loss, FIF net loss, tax loss component, tax year .
2: Subsection (1)
62: Ring-fencing cap on attributed CFC net losses
1: In section IQ 2(1)(a) in relation to a CFC resident in the country in which the loss arose in relation to a CFC resident in the same country in which the CFC that had the loss was resident at the time the loss arose
2: In section IQ 2(1)(b) in relation to a FIF resident in the country in which the loss arose in relation to a FIF resident in the same country in which the CFC that had the loss was resident at the time the loss arose
3: In section IQ 2(2)(b) the tax loss the attributed CFC net loss carried forward
4: Subsections (1) to (3)
63: Ring-fencing cap on FIF net losses
1: In section IQ 3(1)(a) in relation to a CFC resident in the country in which the loss arose in relation to a CFC resident in the same country in which the CFC that had the loss was resident at the time the loss arose
2: In section IQ 3(1)(b) in relation to a FIF resident in the country in which the loss arose in relation to a CFC resident in the same country in which the CFC that had the loss was resident at the time the loss arose
3: Subsections (1) and (2)
64: Group companies using attributed CFC net losses
1: In section IQ 4(1)(a) sections IA 4, IA 5, and IA 7 (which relate to the general use of tax losses) section IQ 1B
2: In section IQ 4(1)(b) section IC 5 (Company B using company A's tax loss) section IQ 2
3: In section IQ 4(2) net loss. net loss, and the part-year grouping rules in subpart IP (Meeting requirements for part-years) do not apply.
4: In section IQ 4(3)
a: Section IQ 2 applies to the attributed CFC net loss, but is supplemented as follows: If company A cannot use the maximum amount referred to in section IQ 2 before the excess is converted into a tax loss component under section IQ 2(3), company A may use the amount in the following way:
b: in paragraph (a), the tax loss the attributed CFC net loss together with any amount carried forward
c: in paragraph (b)(ii), IQ 2 this section
5: Subsections (1) to (4)
65: Pre-consolidation losses: general treatment
1: In section IQ 6(1) section ID 2 (Pre-consolidation losses: general treatment) section IQ 1B
2: Subsection (1)
66: When group membership lacking in loss period
1: In section IQ 7(1)
a: in paragraph (a), section ID 2(2) (Pre-consolidation losses: general treatment) section IQ 6
b: in paragraph (b), the earlier tax year the earlier tax year in which the net loss arose
2: In section IQ 7(2)
a: in paragraph (a),—
i: ring-fenced tax loss ring-fenced tax loss referred to in subsection (1)
ii: sections IA 3 to IA 5 (which relate to the general use of tax losses), and
b: in paragraph (b),—
i: ring-fenced tax loss ring-fenced tax loss referred to in subsection (1)
ii: section IC 5, and
3: Subsections (1) and (2)
67: When group membership lacking in tax year of use
1: In section IQ 8(1) section ID 2(2) (Pre-consolidation losses: general treatment) section IQ 6
2: In section IQ 8(2)(a) ring-fenced tax loss ring-fenced tax loss referred to in section IQ 7(1)
3: Subsections (1) and (2)
68: General treatment of mining companies' tax losses
1: In section IS 1 General treatment of mining companies' net losses
2: In section IS 1(2) tax loss net mining loss
3: After section IS 1(2) Meaning of net mining loss
3: For the purposes of this subpart, a net mining loss
4: Subsections (1) to (3)
69: Treatment of tax losses resulting from certain expenditure
1: In section IS 2 Treatment of net losses resulting from certain expenditure
2: In section IS 2(1)(a) tax loss net mining loss
3: In section IS 2(1)(b) a loss balance an amount of net mining loss
4: In section IS 2(2) loss balance net mining loss
5: In section IS 2(4) loss balance net mining loss
6: After section IS 2(4) Use against other income
5: The company may subtract the amount of the net mining loss from its net income that is not attributable to the mining permit area but only after meeting for the whole of the continuity period the requirements set out in sections GB 3 (Arrangements for carrying forward loss balances: companies) and IA 5 (Restrictions on companies' loss balances carried forward). For the purposes of applying section IA 5, the net mining loss is treated as if it were a tax loss component.
7: Subsections (1) to (6)
70: Holding companies' tax losses
1: In section IS 3(1)(a) loss balance net mining loss
2: Subsection (1)
71: Petroleum miners' tax losses
1: Section IS 5(2)
2: The petroleum miner's tax loss is reduced by the amount of the deduction, but only to the extent of the amount of the tax loss. For the reduction in their tax loss, the petroleum miner is allowed a deduction in an earlier tax year for an amount that is equal to the amount of the reduction. The deduction is allocated under section EJ 14 (Spreading deduction backwards).
2: Subsection (1)
72: Life insurers' policyholder net losses
1: Section IT 1(1) Amounts available
1: In calculating their policyholder base income tax liability for a tax year, a life insurer may use an amount of a policyholder net loss carried forward from an earlier tax year. The policyholder net loss includes an unused policyholder net loss determined under the Income Tax Act 2004 or the Income Tax Act 1994. Loss carried forward
1B: If a life insurer has a balance of a policyholder net loss remaining for a tax year after the uses described in this section, the balance, including all unused amounts from earlier tax years, is carried forward to the next tax year as a policyholder net loss carried forward. Treatment as tax loss component
1C: For the purposes of the application of section IA 10 (Amended assessments), a policyholder net loss under this section is treated as if it were a tax loss component.
2: After section IT 1(2) Restrictions on use
2B: A life insurer must not use a policyholder net loss to reduce a net loss of another life insurer in a tax year except as described in subsection (3).
3: Subsections (1) and (2)
73: Subpart IV repealed
1: Subpart IV
2: Subsection (1)
74: Tax credits for payroll donations
Section LD 4(7)(c)
75: When donation is paid to ineligible recipient
In section LD 6(3)(a), the credit is included in the credit is removed from
76: When donation returned to person
In section LD 7(3)(a), the credit is included in the credit is removed from
77: What this subpart does
Section LP 1(2)
78: Tax credits for supplementary dividends
1: Section LP 2(1)(a)
a: a non-resident, if––
i: the non-resident has less than a 10% direct voting interest in the company; and
ii: the post-treaty tax rate for the dividend and the related supplementary dividend is 15% or more; or .
2: Section LP 2(1)(b)
3: In section LP 2(2) For the year of payment For the tax year corresponding to the income year in which the company pays the dividend
4: Section LP 2(4)
5: Section LP 2(5)
6: Subsection (4)
79: Section LP 7 repealed
1: Section LP 7
2: Subsection (1)
80: Relationship with exempt income rules
1: In section LP 8(2) attached credit + dividend tax rate.
2: Section LP 8
3: Subsection (2)
81: Section LP 9 repealed
1: Section LP 9
2: Subsection (1)
82: Section LP 10 repealed
1: Section LP 10
2: Subsection (1)
83: Tax credits for investors in multi-rate PIEs
1: In section LS 2(1)(b)(ii) 19.5% the rate set out in schedule 6, table 1, row 5 or 7
2: Subsection (1)
84: Adjustments for calculation of family scheme income
1: After section MB 1(5B) Amounts of depreciation loss on sale of building
5C: For the purposes of subsection (1), in relation to a building from the sale of which the person derives assessable income, an amount of depreciation loss allowed in the 2002–03 or earlier income year is not included in family scheme income. However, this subsection does not apply to an amount of depreciation loss of a business that under section MB 4 is treated as having no net income for the purposes of calculating family scheme income.
2: Subsection (1)
85: Calculation of maximum permitted ratios
1: Section OA 18(3)
3: In the formula, tax rate
a: for subsection (1)(a) to (e), the basic rate of income tax set out in schedule 1, part A, clause 2 (Basic tax rates: income tax, ESCT, RSCT, RWT and attributed fringe benefits) for the income year in which the dividend is paid:
b: for subsection (1)(f), the basic rate of income tax set out in schedule 1, part A, clause 7 for the income year in which the distribution is paid.
2: Subsection (1)
86: ICA payment of tax
Section OB 4(3)(c)
c: income tax paid by a life insurer to satisfy its policyholder base income tax liability; or .
87: ICA debit for loss of shareholder continuity
1: In section OB 41(1) before the date on at the time at
2: Section OB 41(3) When debit arises
3: The debit arises at the time shareholder continuity is lost.
3: Subsections (1) and (2)
88: Table O2: imputation debits
In table O2, row 14, column 3, day time
89: FDPA debit for loss of shareholder continuity
1: In section OC 24(1) before the date on at the time at
2: Section OC 24(3) When debit arises
3: The debit arises at the time shareholder continuity is lost.
3: Subsections (1) and (2)
90: Table O4: FDP debits
In table O4, row 13, column 3, day time
91: BETA credit for loss of shareholder continuity
1: In section OE 10(1) before the date on at the time at
2: Section OE 10(3) is replaced by the following: When credit arises
3: The credit arises at the time shareholder continuity is lost.
3: Subsections (1) and (2)
92: Table O7: branch equivalent tax credits
In table O7, row 5, column 3, day time
93: MACA debit for loss of shareholder continuity
1: In section OK 15(1) before the date on at the time at
2: Section OK 15(3) When debit arises
3: The debit arises at the time shareholder continuity is lost.
3: Subsections (1) and (2)
94: Table O18: Maori authority debits
In table O18, row 7, column 3, day time
95: Consolidated ICA debit for loss of shareholder continuity
1: In section OP 42(1) before the date on at the time at
2: Section OP 42(3) When debit arises
3: The debit arises at the time shareholder continuity is lost.
3: Subsections (1) and (2)
96: Table O20: imputation debits of consolidated imputation groups
In table O20, row 16, column 3, day time
97: Consolidated FDPA debit for loss of shareholder continuity
1: In section OP 73(1) before the date on at the time at
2: Section OP 73(3) When debit arises
3: The debit arises at the time shareholder continuity is lost.
3: Subsections (1) and (2)
98: Table O22: FDP debits of consolidated FDP groups
In table O22, row 11, column 3, day time
99: Consolidated BETA credit for loss of shareholder continuity
1: In section OP 104(1) before the date on at the time at
2: Section OP 104(3) When credit arises
3: The credit arises at the time shareholder continuity is lost.
3: Subsections (1) and (2)
100: Table O25: branch equivalent tax credits of consolidated BETA groups
In table O25, row 5, column 3, day time
101: Amounts treated as income tax
1: In section RA 2 NC 2(1) NC 20(1)
2: Subsection (1)
102: Salary or wages
Section RD 5(6)(b)
b: an income-tested benefit:
bb: a veteran's pension, other than a veteran's pension paid under section 74J(2)(b) of the War Pensions Act 1954:
bc: New Zealand superannuation, other than New Zealand superannuation paid under section 26(2)(b) of the New Zealand Superannuation and Retirement Income Act 2001:
bd: a living alone payment: .
103: Amounts of tax for PAYE income payments
1: Section RD 10(2)(a)
a: for an employee whose taxable income for the income year is expected to be not more than $48,000, the rate set out in schedule 2, part B, table 1, row 2; or
b: for an employee whose taxable income for the income year is expected to be not more than $70,000, the rate set out in schedule 2, part B, table 1, row 3; or
c: for other employees, the rate set out in schedule 2, part B, table 1, row 4.
2: After section RD 10(2), the following is inserted: Relationship with section RD 17
2B: Despite subsection (2), a person must not choose a rate set out in schedule 2, part B, table 1 that is lower than the rate that would apply to the amount of extra pay under section RD 17.
3: Subsections (1) and (2)
104: Payment of extra pay with other PAYE income payments
1: Section RD 17(1) When this section applies
1: This section applies when a person pays an amount of extra pay to an employee who also receives a PAYE income payment from the person, regardless of whether the extra pay is paid with or separately from a PAYE income payment. The amount of tax for the extra pay is based on the sum of—
a: the amount of the extra pay; and
b: the annualised value of all PAYE income payments made to the employee in the period that starts 4 weeks before the date of the payment of the extra pay and ends on the date of that payment. Calculating annualised value
1B: For the purposes of calculating the amount that is the annualised value referred to in subsection (1)(b) subsection (1)(a)
2: Section RD 17(2) Rates applying
2: For the sum of the amounts referred to in subsection (1) schedule 2, part B, table 1
a: if the sum of the amounts is $14,000 or less, the amount determined by applying row 1:
b: if the sum of the amounts is more than $14,000 but not more than $48,000, the amount determined by applying row 2:
c: if the sum of the amounts is more than $48,000 but not more than $70,000, the amount determined by applying row 3:
d: if the sum of the amounts is more than $70,000, the amount determined by applying row 4. When secondary tax codes apply
3: Despite subsection (2) section 24B(3)(bb), schedule 2, part B, table 1 extra pay + annualised amount + low threshold amount. Definition of items in formula
4: In the formula,—
a: extra pay
b: annualised amount subsections (1)(b) and (1B)
c: low threshold amount
i: for secondary code SB, $0:
ii: for secondary code S, $14,001:
iii: for secondary code SH, $48,001:
iv: for secondary code ST, $70,001.
3: Subsection (1)
4: Subsection (2)
105: RWT rules and their application
1: In section RE 1(1)(c) sections 15T sections 15N
2: Subsection (1)
106: Resident passive income
1: After section RE 2(5)(i)
j: a dividend treated as derived by a person under section GB 1(3) (Arrangements involving dividend stripping).
2: Subsection (1)
107: New section RE 10B inserted
1: After section RE 10
RE 10B: Amounts withheld from distributions to holders of FIF attributing interests
When this section applies
1: This section applies when—
a: a distribution is made to a holder of an attributing interest in a FIF; and
b: section CD 36 (Foreign investment fund income) or EX 59(2) (Codes: comparative value method, deemed rate of return method, fair dividend rate method, and cost method) applies to the distribution; and
c: an amount is withheld by the payer from the distribution because the payer has treated the distribution as resident passive income subject to the RWT rules. Treatment of amount
2: The amount withheld is treated as—
a: RWT for the purposes of this subpart and subpart LA (General rules for tax credits), and sections LB 3 (Tax credits for resident withholding tax), and RM 1 to RM 10 (which relate to refunds); and
b: tax paid in excess for the purposes of Part 10B of the Tax Administration Act 1994. Treatment of distribution
3: The distribution is treated as resident passive income for the purposes of the sections listed in subsection (2) Refunds
4: Subsection (2) section RM 8(4) or (5) amount of tax, attributing interest, FIF, pay, resident passive income, RWT, tax .
2: Subsection (1)
108: Interest
1: After section RE 12(4) Modification for companies and portfolio investment entities for 2010–11 income year
5: Despite subsection (3)(a), the amount of tax that the person must withhold and pay may, if the person chooses, be calculated under subsection (3) using a tax rate
a: the payment of resident passive income that consists of interest is made to a company or a portfolio investment entity in the 2010–11 income year; and
b: the tax rate under subsection (3)(a) would be 0.33 in the absence of this subsection.
2: Subsection (1)
109: Choosing higher rates
1: The heading to section RE 19 Choosing other rates
2: Subsection (1)
110: When payment treated as non-resident passive income
1: Section RE 22(1)(a)
a: a person ( person A person B .
2: Subsection (1)
111: NRWT rules and their application
1: After section RF 1(2) What this section does not apply to
3: This section does not apply to an amount referred to in section CC 1(2)(a) to (d) (Land) to which section CC 9 (Royalties) applies. Exception: certain income from land
4: Despite subsection (3)
a: the exploitation of, or right to exploit, plant material or a naturally occurring material or mineral arising in or on the land:
b: the removal of, or right to remove, plant material or a naturally occurring material or mineral arising in or on the land.
2: Subsection (1)
112: Obligation to withhold amounts of tax for non-resident passive income
1: In section RF 3 Withholding amount of tax .
2: In section RF 3 Exclusion
2: Despite subsection (1), no obligation to withhold NRWT arises in relation to an amount treated as a dividend under section GB 1(3) (Arrangements involving dividend stripping).
3: Subsections (1) and (2)
113: When amounts of tax not withheld or partly withheld
1: After section RF 6(1) When amount treated as dividend
1B: A person who derives non-resident passive income that is a dividend under section GB 1(3) (Arrangements involving dividend stripping) is treated as a filing taxpayer.
2: Subsection (1)
114: When dividends fully imputed or fully credited
In section RF 9(1) and RF 10 , RF 10, and RF 11B
115: New section RF 11B
After section RF 11
RF 11B: Certain dividends paid to certain non-residents
The rate of NRWT payable on a payment of non-resident passive income is 0% to the extent to which the payment is a fully imputed dividend paid to a non-resident by a company, if––
a: the non-resident has a 10% or more direct voting interest in the company:
b: the non-resident has less than a 10% direct voting interest in the company and, but for this section, the post-treaty tax rate for the dividend is less than 15%. company, direct voting interest, dividend, non-resident, non-resident passive income, NRWT, pay, post-treaty tax rate .
116: Interest paid by approved issuers or transitional residents
In section RF 12(3) in respect of a registered security in relation to a registered security
117: Overpaid RWT or NRWT
1: After section RM 8(2) When subsections (4) and (5) apply
3: Subsections (4) and (5)
a: a holder of an attributing interest in a FIF receives a distribution from which an amount of tax for resident passive income has been withheld; and
b: section CD 36 (Foreign investment fund income) applies to the distribution. Certain FIF income: application by holder
4: The holder may apply for a refund if—
a: they apply before the next 31 March after the date on which the amount was withheld, with supporting information to show that the threshold referred to in section CQ 5(1)(d) (When FIF income arises) has been exceeded for their corresponding income year; and
b: the person making the distribution has not—
i: paid them a refund of the amount; or
ii: applied themselves under subsection (5)
c: they notify the person making the distribution of their application under this subsection. Certain FIF income: application by payer
5: The person making the distribution may apply for a refund if—
a: they apply before the next 31 March after the date on which the amount was withheld, with supporting information to show the payment has been made to the holder without any subtraction permitted by section RA 12(5) and (6) (Adjustment to correct errors: certain excess amounts); and
b: the holder has not applied for a refund under subsection (4)
c: they provide, in relation to the amount,—
i: a statement that they will not include particulars in an RWT withholding reconciliation statement made under section 51 of the Tax Administration Act 1994; and
ii: the disclosure information required by section 52 of that Act. Use of refund
6: An amount of a refund paid under subsection (4) or (5)
2: Subsection (1)
118: Definitions
1: This section amends section YA 1
2: The definition of cost of timber cost of timber sections DP 11
a: means the amount of expenditure incurred by a person in relation to timber—
i: before harvest, for a disposal of harvested timber:
ii: before the disposal of the timber or the relevant right, for a disposal of standing timber or a disposal of a right to take timber, or another right referred to in section DP 11(4)
b: includes, for section DP 11
i: expenditure on planning, planting, and growing the timber:
ii: expenditure incurred in relation to the rights listed in section DP 11(4)
c: excludes—
i: expenditure for which a deduction is allowed under a provision of this Act other than section DP 11
ii: expenditure to which section DB 46 (Avoiding, remedying, or mitigating effects of discharge of contaminant) applies:
iii: an amount allowed as a deduction under section DQ 4 (Environmental restoration accounts scheme) .
3: The definition of creditor workout creditor workout
a: a compromise, as that term is defined in section 227 of the Companies Act 1993, in writing that, for the parties to the financial arrangement, is binding under Part 14, 15, or 15A of that Act, or is otherwise legally binding, to the extent to which the compromise does not cancel all of a debt:
b: a suspension in part of the repayment of any deposit, the payment of any debt, or the discharge of any obligation, under section 44 of the Corporations (Investigation and Management) Act 1989 .
4: In the definition of dividend
f: in sections FM 30, GB 38, OP 58, and OP 64 to OP 68 (which relate to consolidated groups), subpart OE (Branch equivalent tax accounts (BETA)), subpart OJ (Policyholder credit accounts (PCA)), in the FDP rules and the imputation rules, and in the definitions of benchmark dividend combined imputation and FDP ratio company dividend statement excess credit amount FDP credit FDP ratio imputation credit imputation ratio pay shareholder dividend statement .
5: In the definition of employer monthly schedule row 2 row 3
6: The definition of employer sponsored group policy
7: In the definition of fixed-rate share
f: in section FA 2B (Stapled debt securities), and the definitions of proportional-stapling company stapled debt security
i: a share described in paragraph (a):
ii: a share that would be a share described in paragraph (a) but for a dividend or a variation in the rate of dividend that may occur when the share is converted into another share (the other share paragraph (g)
iii: a share for which the dividend payable is the equivalent of the payment of interest for money lent, having regard to the factors set out in paragraph (h)
g: for the purposes of paragraph (f)(ii)
i: a change in value of the other share occurs in a period that starts no more than 30 days before the share is converted and ends when the share is converted, and the period was a term or condition of the share when the share was first issued:
ii: a term or condition of the share that existed when the share was first issued, and the term or condition sets the gain at a fixed percentage equal to 5% or a lesser percentage of the amount subscribed for the share:
h: for the purposes of paragraph (f)(iii)
i: whether or not the share is redeemable:
ii: any security provided to the shareholder, including put or call options over the share or any amount payable determined by reference to the amount of dividend payable:
iii: the variability or lack of variability of the dividend payable .
8: After the definition of forestry assets forestry business .
9: In the definition of lease paragraph (e) paragraph (f)
10: In the definition of lease paragraph (c) paragraph (d)
11: In the definition of lessee
a: in paragraph (a), paragraph (b) paragraph (c)
b: in paragraph (b), paragraph (c) paragraph (d)
12: In the definition of lessor
a: in paragraph (a), paragraph (b) paragraph (c)
b: in paragraph (b), paragraph (c) paragraph (d)
13: The definition of loss balance loss balance
a: means the sum of all tax loss components—
i: arising in the tax year and included in the tax loss for the tax year under section IA 2(3) and (4) (Tax losses), to the extent not used under section IA 3(1) to (3) or IA 4(1)(a) (which relate to the first use and to particular losses):
ii: arising in an earlier tax year and carried forward under section IA 3(4) to the tax year, to the extent not used under section IA 3(1) to (3) or IA 4(1)(a):
b: does not include a tax loss component included in a company's loss balance at the end of the tax year if the requirements of section IA 5 (Restrictions on companies' loss balances carried forward), as modified by sections IZ 4 to IZ 6 (which relate to tax losses for tax years before 1992), have not been met .
14: After the definition of net loss net mining loss section IS 1(3) .
15: After the definition of new personal tax rate person new reporting standard section DB 35 section DB 34 .
16: After the definition of old financial arrangements rules old reporting standard section DB 35 section DB 34 .
17: After the definition of petroleum-related depreciable property PFSI forestry business PFSI forestry income
a: relating to a forest sink covenant entered into by the person; and
b: derived by the person from—
i: receiving an emissions unit under the covenant; or
ii: entering into a transaction in relation to an emissions unit received under the covenant .
18: In the definition of PIE rules ring-fenced losses ring-fenced tax losses
19: After the definition of policyholder base income policyholder unvested liabilities .
20: The definitions of portable New Zealand superannuation portable veteran's pension portable New Zealand superannuation
a: section 26(2)(a) of the New Zealand Superannuation and Retirement Income Act 2001, or under section 26(2)(b) where the superannuitant is residing in a country to which section 26(1)(a) of that Act applies; or
b: section 31 of the New Zealand Superannuation and Retirement Income Act 2001; or
c: section 19 of the Social Welfare (Transitional Provisions) Act 1990 portable veteran's pension
a: section 74J(2)(a) of the War Pensions Act 1954, or under section 74J(2)(b) where the pensioner is residing in a country to which section 74J(1)(a) of that Act applies; or
b: section 74O of the War Pensions Act 1954; or
c: section 19 of the Social Welfare (Transitional Provisions) Act 1990 .
21: After the definition of post-1989 forest land emissions unit post-treaty tax rate .
22: In the definition of prescribed investor rate under sections HM 56 to HM 59 (which relate to the default and other tax rates for investors) set out in schedule 6, table 1
23: In the definition of relative
a: in paragraph (a), in the words before the subparagraphs, except in section HC 36 (Trusts and minor beneficiary rule) for the purposes of only this Act, other than in section HC 36 (Trusts and minor beneficiary rule)
b: in paragraph (b), that section only that section
c: after paragraph (b), the following is added:
c: for the purposes of the definition of relative
i: being within the fourth degree of blood relationship to the other:
ii: being in a marriage, civil union, or de facto relationship with the other:
iii: being in a marriage, civil union, or de facto relationship with a person who is within the fourth degree of blood relationship to the other:
iv: being adopted as a child of the other or as a child of a person who is within the third degree of relationship to the other:
v: being the trustee of a trust under which a relative of the other person has benefited or is eligible to benefit .
24: The definition of reporting standard
25: The definition of retirement scheme prescribed rate retirement scheme prescribed rate schedule 6, table 2 .
26: In the definition of RMBS special purpose vehicle
a: in the introductory words, HR 9 HR 9 (RMBS special purpose vehicles are transparent)
b: in paragraph (c), is in respect of relates to
27: In the definition of RWT proxy section 15T section 15N
28: The definition of savings product policy savings product policy
a: is greater than zero; and
b: does not arise wholly from the payback of a portion of a policyholder's premiums .
29: In the definition of share purchase agreement employment income) employment income) and HC 27(3B)
30: The definition of supplementary dividend holding company
31: The definition of tax loss tax loss .
32: In the definition of taxable distribution section HC 15(2) section HC 15
33: The definition of timber timber
a: is defined in section DP 11(4)
b: includes standing timber in—
i: section DP 11
ii: section EB 24 (Apportionment on disposal of business assets that include trading stock):
iii: section FB 6 (Timber or right to take timber):
iv: section GC 1 (Disposals of trading stock at below market value):
v: the definition of dispose
vi: the definition of right to take timber
vii: the definition of trading stock .
34: After the definition of working day workplace group policy section EY 30 .
35: The definition of year of payment
36: In the definition of zero-rated investor HM 59 HM 57
37: Subsections (2), (3), (4), (7), (8), (9), (10), (11), (12), (13), (14), (17), (27), (29), (31), (32), and (33)
38: Subsections (5), (18), (22), (25), and (36)
39: Subsections (6), (19), (28), and (34)
a: on and after 1 July 2010, unless paragraph (b)
b: for an income year that includes 1 July 2010 and later income years, if the life insurer chooses to apply the new life insurance rules in the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 in a return of income for the tax year corresponding to the first relevant income year.
40: Subsection (30)
119: What this subpart does
Section YB 1(8)
120: Tripartite relationship
In section YB 14(1) YB 13 YB 12
121: Transparency of nominees
1: After section YB 21(2) Nominal settlements
3: A person making a nominal settlement at the request of another person is treated for the purposes of this Act as a nominee in relation to the settlement.
2: Subsection (1)
122: Schedule 1—Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe benefits
1: In schedule 1, part D, clauses 3 to 6 passive resident income resident passive income
2: Schedule 1, part D Table 2 Row Conditions Payment rate 1 The payer of the interest has not been supplied with the tax file number of the person who is paid the interest. 0.380 2 For a person who opens a new account after 31 March 2010 the payer of the interest— (a) has been supplied with the tax file number of the person; and (b) has not received a payment rate election from the person. 0.380 3 For a person who chooses the payment rate of 0.380, the payer of the interest— (a) has been supplied with the tax file number of the person; and (b) has received a payment rate election from the person. 0.380 4 For a person who chooses the payment rate of 0.330, the payer of the interest— (a) has been supplied with the tax file number of the person; and (b) has received a payment rate election from the person. 0.330 5 For a person in relation to whom RWT is withheld at the payment rate of 0.195 before 1 April 2010, the payer of the interest— (a) has been supplied with the tax file number of the person; and (b) has not received a payment rate election from the person. 0.210 6 For a person who chooses the payment rate of 0.210, the payer of the interest— (a) has been supplied with the tax file number of the person; and (b) has received a payment rate election from the person. 0.210 7 For a person other than a trustee who chooses the payment rate of 0.125 and has a reasonable expectation at the time of the election that their income for the income year will be $14,000 or less, the payer of the interest— (a) has been supplied with the tax file number of the person; and (b) has received a payment rate election from the person. 0.125 8 For a person— (a) who— (i) receives interest as a trustee of a testamentary trust to which section HC 37 applies; and (ii) chooses the payment rate of 0.125; and (b) in relation to whom, the payer of the interest— (i) has been supplied with the tax file number of the person; and (ii) has received a payment rate election from the person. 0.125 How to use this table Find the applicable condition in the second column, in order to find the relevant rate to apply, in the third column.
3: In schedule 1, part D 0.33 0.30
4: In schedule 1, part D 0.39 0.38
5: In schedule 1, part D
a: in row 1, 0.39 0.38
b: in row 2, 0.390 0.380
6: Schedule 1, part D Table 5 Row Conditions Payment rate 1 The person responsible for withholding RSCT— (a) has been notified under section 28C of the Tax Administration Act 1994 that 12.5 cents in the dollar is the person's retirement scheme prescribed rate; and (b) has been supplied with the tax file number of the person. 0.125 2 The person is a non-resident and a distribution of no more than $200 is made to them by a retirement scheme contributor that is a Maori authority. 0.125 3 The person responsible for withholding RSCT— (a) has been notified under section 28C of the Tax Administration Act 1994 that 21 cents in the dollar is equal to or greater than the person's retirement scheme prescribed rate; and (b) has been supplied with the tax file number of the person. 0.210 4 The person responsible for withholding RSCT— (a) has been notified under section 28C of the Tax Administration Act 1994 that 33 cents in the dollar is equal to or greater than the person's retirement scheme prescribed rate; and (b) has been supplied with the tax file number of the person. 0.330 5 When none of rows 1 to 4 apply. 0.380 How to use this table Find the applicable condition in the second column, in order to find the relevant rate to apply, in the third column.
7: Subsection (1)
8: Subsections (2), (4), (5), and (6)
9: Subsection (3)
123: Schedule 2—Basic tax rates for PAYE income payments
1: In schedule 2, part A, clause 2 total payment × weekly PAYE table amount. weekly portion of the payment
2: After schedule 2, part A “9 “SB” tax code If an employee has notified their employer that the employee's tax code is “SB” under section 24B(3)(bb)
3: Schedule 2, part B Table 1 Row Condition Payment rate 1 Section RD 17(2)(a) 0.125 2 Section RD 10(2)(a) RD 17(2)(b) 0.210 3 Section RD 10(2)(b) RD 17(2)(c) 0.330 4 Section RD 10(2)(c) RD 17(2)(d) 0.380 How to use this table Find the applicable condition in the second column, in order to find the relevant rate to apply, in the third column.
4: Subsection (1)
5: Subsections (2) and (3)
124: New schedule 6 inserted
1: After schedule 5
“Schedule 6: ss CX 50B, HM 56 Prescribed rates: PIE investments and retirement scheme contributions
1: PIE investments
The prescribed investor rate for a person who is an investor in a multi-rate PIE is set out in table 1 Table 1 Row Conditions Prescribed rate 1 For a natural person who is resident in New Zealand and who, in each of the 2 income years before the relevant tax year, derives— (a) $48,000 or more in taxable income: (b) $70,000 or more in the sum of their taxable income and attributed PIE income after subtracting any attributed PIE loss. 0.300 2 For a non-resident person who notifies this rate for the relevant tax year. 0.300 3 For a person who— (a) is resident in New Zealand and who derives income for the relevant tax year as a trustee of a trust other than a trust with income that is exempt income under section CW 41 or CW 42; and (b) notifies this rate for the relevant tax year. 0.300 4 For a natural person who is resident in New Zealand and is not a person described in row 1 (a) between $14,000 and $48,000 in taxable income; and (b) $70,000 or less in the sum of their taxable income and attributed PIE income after subtracting any attributable PIE loss. 0.210 5 For a person who— (a) is resident in New Zealand and derives income for the relevant tax year as a trustee of a trust other than a trust with income that is exempt income under section CW 41 or CW 42; and (b) notifies this rate for the relevant tax year. 0.210 6 For a natural person who is resident in New Zealand and is not a person described in row 1 or 4 (a) $14,000 or less in taxable income; and (b) $48,000 or less in the sum of the taxable income and attributed PIE income after subtracting any attributable PIE loss. 0.125 7 For a person who— (a) is resident in New Zealand and derives income for the relevant tax year as a trustee of a testamentary trust to which section HC 37 applies other than a trust with income that is exempt income under section CW 41 or CW 42; and (b) notifies this rate for the relevant tax year. 0.125 8 For a person who is a zero-rated investor. 0.000 How to use this table Find the applicable condition in the second column, in order to find the relevant rate to apply, in the third column.
2: Retirement scheme contributions
The retirement scheme prescribed rate for a person in relation to a retirement scheme contribution made for them is set out in table 2 Table 2 Row Conditions Prescribed rate 1 For a person other than a person described in any of rows 2 to 7 0.380 2 For a person who, in either of the 2 income years before the income year in which the contribution is made, derives more than $48,000 but not more than $70,000 in taxable income. 0.330 3 For a person who is not a person described in row 2 0.210 4 For a person who is not a person described in row 2 or 3 0.125 5 For a non-resident person to whom a distribution of no more than $200 is made by a retirement scheme contributor that is a Maori authority. 0.125 6 For a non-resident person who supplies a retirement scheme contributor that is a Maori authority with a notice under section 28C of the Tax Administration Act 1994. 0.125 7 For a non-resident person in relation to a contribution that consists of non-resident passive income. 0.000 How to use this table Find the applicable condition in the second column, in order to find the relevant rate to apply, in the third column.
2: Subsection (1)
125: Schedule 51—Identified changes in legislation
1: In schedule 51 GB 1 Section GB 1(3) is clarified to confirm that the amount of the dividend derived is part of the consideration for the shares.
2: In schedule 51, after the entry for GB 42(2)(d), the following is inserted: HC 27(2) The definition of settlor
3: Subsections (1) and (2)
126: Lists of defined terms in Income Tax Act 2007
The lists of defined terms in the sections of the Income Tax Act 2007 listed in schedule 1
2: Amendments to Tax Administration Act 1994
127: Tax Administration Act 1994
Sections 128 to 143 2009-12-07 Tax Administration Act 1994 For all retrospective provisions (“date as at” is the assent date, not in force date (see COG 16.20) 2009-12-08 Tax Administration Act 1994 2010-04-01 Tax Administration Act 1994
128: Interpretation
In section 3(1) contested tax
129: Giving of notices by Commissioner
Section 14(7)
7: The Commissioner may give the notice to the addressee by an electronic means of communication unless there are reasonable grounds to suppose that the notice will not be received by the addressee. This subsection overrides the consent provisions of the Electronic Transactions Act 2002.
130: PAYE tax codes
1: After section 24B(3)(b)
bb: “SB” for secondary employment earnings for an employee whose annual income is not more than $14,000: .
2: Subsection (1)
131: Section 24C replaced
1: Section 24C
24C: Tax code for payment that includes income-tested benefits
An employee who receives a PAYE income payment of an income-tested benefit and a PAYE income payment that does not consist of an income-tested benefit may choose, for their non-benefit income, a tax code set out in section 24B(3)(bb)
2: Subsection (1)
132: New heading and new section 25A
1: Before section 25 RWT rates, certificates, and records
25A: Use of inconsistent RWT rates
1: This section applies when the Commissioner considers that a person who receives a payment of resident passive income consisting of interest has chosen in relation to the payment an RWT rate that is inconsistent with their marginal tax rate.
2: The Commissioner may notify the payer of the interest of the inconsistent rate and provide the payer with the RWT rate for the person.
3: The payer must use the RWT rate provided by the Commissioner in relation to the person as soon as reasonably practicable after the date of notification. However, if the person subsequently notifies the payer of a different RWT rate, the payer must apply the rate notified by the person.
2: Subsection (1)
133: Person advising retirement savings scheme of retirement scheme prescribed rate
1: In section 28C 39% 38%
2: Subsection (1)
134: Annual returns of income not required
1: In section 33A(1)(b)(iv)
AAA: schedule 1, part D, table 2, row 5 or 6 of the Income Tax Act 2007 if that person's annual gross income is more than $14,000 but not more than $48,000; or .
2: In section 33A(1)(b)(iv)(A) row 3 row 4
3: In section 33A(1)(b)(iv)(B) row 4 or 5 row 1, 2, or 3
4: In section 33A(1)(b)(v)
AAA: schedule 2, part B, row 2 of the Income Tax Act 2007 if that person's annual gross income is more than $14,000 but not more than $48,000; or .
5: In section 33A(1)(b)(v)(A) row 2 row 3
6: In section 33A(1)(b)(v)(B) row 3 row 4
7: In section 33A(1)(b)(vi)
AAA: schedule 2, part A, clause 4 of the Income Tax Act 2007 if that person's annual gross income is more than $14,000 but not more than $48,000; or .
8: In section 33A(5) must may
9: Subsections (1), (2), (3), (4), (5), (6), and (7)
10: Subsection (8)
135: Certificates about trees
1: In section 44C(3) schedule 20, part A, item 8 schedule 20, part A, item 9
2: Subsection (1)
136: Section 80C replaced
1: Section 80C
80C: Requests for income statements
A person to whom section 33A(1) applies may, at any time after the end of the person's tax year, request the issue of an income statement relating to that year.
2: Subsection (1)
137: Commissioner must issue income statement
1: Section 80D(1)(c)(i)
2: In section 80D(2) to a person at any time to a person, or require a person to apply for an income statement, at any time
3: Subsection (1)
138: Statement of family scheme income
1: Section 80KV(2)
2: The person must, in the time within which they are required to file their return of income for the tax year, give the Commissioner a complete statement of their family scheme income for the tax year, including the family scheme income of their spouse, civil union partner, or de facto partner, as applicable.
2: Subsection (1)
139: Taxation laws in respect of which binding rulings may be made
1: In section 91C(1)(e) on an application to which section YA 4(1)(a)(i) of the Income Tax Act 2004 applies,
2: In section 91C(1)(eb) on an application to which section ZA 4(1)(a)(i) of the Income Tax Act 2007 applies,
140: New section 113A inserted
After section 113
113A: Correction of minor errors in subsequent returns
1: This section applies for the purposes of this Act and the Goods and Services Tax Act 1985 when—
a: a person has provided a return in which the assessment of their liability for income tax, fringe benefit tax, or goods and services tax contains 1 or more minor errors; and
b: the error was caused by a clear mistake, simple oversight, or mistaken understanding on the person's part; and
c: for a single return, the total discrepancy in the assessment that is caused by the error is $500 or less.
2: The Commissioner may allow the person to correct the error in the next return that is due after the discovery of the error.
3: For the purposes of subsection (1)(c)
141: Certain rights of challenge not conferred
In section 138E(1)(e)(iv) 120U, 120U, 138I(2B),
142: Definitions
In section 173B contested tax
143: Limitations on assistance in recovery
Section 173G(1)
1: The Commissioner may assist in recovering an amount of unpaid tax only if—
a: payment of the amount is enforceable under the laws of the state of the applicant requesting assistance under a tax recovery agreement; and
b: the amount is owed by a person who cannot, under the laws of the state of the applicant, prevent collection of the amount.
1B: The circumstances in which the Commissioner may provide assistance under this section include the following in relation to the amount of unpaid tax:
a: the period within which the person may exercise a right to contest the assessment has expired:
b: the person has withdrawn an objection in relation to the amount:
c: the person has waived a right to contest the assessment:
d: the person is required to pay some or all of the amount, regardless of any right to contest the assessment:
e: the person is otherwise unable, under the laws of the state of the applicant, to prevent collection of the amount.
1C: For the purposes of this section and section 173E(2)(a), the amount referred to in subsection (1)
3: Amendments to Goods and Services Tax Act 1985
144: Goods and Services Tax Act 1985
Sections 145 to 147 Goods and Services Tax Act 1985 2009-12-07 Goods and Services Tax Act 1985 for all retrospective dates (“Date as at” is the assent date, not the in force date— see COG 16.20) 2009-12-08 Goods and Services Tax Act 1985
145: Meaning of associated persons
1: Section 2A(1)(f)
f: a trustee of a trust and a person who has benefited or is eligible to benefit under the trust, except if, in relation to a supply of goods and services,—
i: the trustee is a charitable or non-profit body with wholly or principally charitable, benevolent, philanthropic, or cultural purposes and the supply is made in carrying out these purposes; or
ii: the person is a charitable or non-profit body with wholly or principally charitable, benevolent, philanthropic, or cultural purposes and the supply enables them to carry out these purposes: .
2: Section 2A(1)(h) is replaced by the following:
h: a trustee of a trust and a trustee of another trust if the same person is a settlor of both trusts, except if, in relation to a supply of goods and services,—
i: either trustee is a charitable or non-profit body with wholly or principally charitable, benevolent, philanthropic, or cultural purposes; and
ii: the supply is made in, or enables, the carrying out of the charitable, benevolent, philanthropic, or cultural purposes: .
146: Imposition of goods and services tax on supply
After section 8(2)
2B: To the extent to which a supply of services consists of the facilitation of inbound tour operations, the supply is chargeable with tax under subsection (1), and section 11A does not apply to that part of the supply.
2C: Despite subsection (2B), the part of the supply that consists of the facilitation of inbound tour operations is charged at the rate of 0% if—
a: a registered person supplies the services in the period from 1 July 2007 to 30 June 2008 (the transitional period
b: the consideration for the supply is an amount quantified—
i: on the basis of the person's gross margin attributable to the facilitation of inbound tour operations; or
ii: by other means that the Commissioner is able to verify.
2D: For the purposes of subsection (2C)(b), the amount of the consideration must be—
a: calculated for each of the person's taxable periods that fall in the transitional period:
b: for any days in the person's taxable period that fall outside the transitional period, apportioned on a pro rata basis.
2E: If a registered person has supplied services in the transitional period by way of the facilitation of inbound tour operations and tax was paid under this section in relation to the services, the person is entitled to a refund of the amount of tax paid. They must apply for the refund in writing within the period that starts on the date of Royal assent of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 and ends 6 months after that date.
2F: For the purposes of subsections (2B) and (2C), services that consist of the facilitation of inbound tour operations means the services that a registered person provides in packaging 1 or more domestic tourism products and services in New Zealand and selling them outside New Zealand to a non-resident person. The tourism products and services may include accommodation, meals, transport, and other activities.
147: Meaning of term supply
After section 5(6AB)
6AC: For the purposes of this Act, a levy that is paid under the Waste Minimisation Act 2008 is treated as being consideration for a supply of services in the course or furtherance of a taxable activity. For the purposes of this subsection, the payment of the levy includes, and is for, the following transactions:
a: a payment made by a waste disposal facility user to a waste disposal facility operator; and
b: a payment made by a waste disposal facility operator to the Secretary for the Ministry for the Environment; and
c: a payment made by the Secretary to a funding recipient or territorial authority to fund waste minimisation activities in the community as described in section 30 of the Waste Minimisation Act 2008.
4: Amendments to Income Tax Act 2004
148: Income Tax Act 2004
Sections 149 to 163 Income Tax Act 2004 2009-12-07 Income Tax Act 2004
149: Available capital distribution amount
In section CD 33(11) subsection (12) subsections (7)(c) and (12)
150: Meaning of expenditure on account of an employee
In section CE 5(3)(bb) meals) meals and certain other allowances)
151: Expenditure on account, and reimbursement, of employees
In section CW 13(4) section CW 13B (Relocation payments) or section CW 13C (Payments for overtime meals) section CW 13B or CW 13C
152: Research or development
1: Section DB 26(2)
2: Subsection (1) applies to a person who recognises the expenditure as an expense for financial reporting purposes,—
a: under paragraph 5.1 or 5.2 of the old reporting standard or because paragraph 5.4 of that standard applies; or
b: under paragraph 68(a) of the new reporting standard applying, for the purposes of that paragraph, paragraphs 54 to 67 of that standard.
2: Section DB 26(4)(b) is replaced by the following:
b: would be required, if the expenditure were material, to recognise it for financial reporting purposes—
i: under paragraph 5.1 or 5.2 of the old reporting standard or because paragraph 5.4 of that standard applies; or
ii: under paragraph 68(a) of the new reporting standard applying, for the purposes of that paragraph, paragraphs 54 to 67 of that standard.
3: Subsections (1) and (2)
153: Some definitions
In section DB 27(1) reporting standard new reporting standard old reporting standard .
154: Gifts of money by company
Section DB 32(3)
3: The deduction for the total of all gifts made in an income year is limited to 5% of the amount that would be the company's net income in the corresponding tax year in the absence of this section.
155: Section DP 10 replaced
1: Section DP 10
DP 10: Cost of timber
When this section applies
1: This section applies when a person—
a: derives an amount on the disposal of timber and the amount is income of the person under section CB 22 (Disposal of timber or right to take timber) or CB 23 (Disposal of land with standing timber); and
b: has incurred expenditure in relation to the timber that is a cost of timber. Deduction
2: The person is allowed a deduction for the amount that is a cost of timber. Timing of deduction
3: The deduction is allocated—
a: for timber harvested from the land before the time of disposal, to the income year in which the timber first becomes trading stock of the person; or
b: otherwise, by section EA 2 (Other revenue account property). Meaning of timber
4: In this section, timber
a: the creation or grant of a right to take timber:
b: the grant of a licence or an easement in relation to timber:
c: the creation of a forestry right as defined in section 2 of the Forestry Rights Registration Act 1983, other than a right in favour of the proprietor in relation to establishing, maintaining, and harvesting timber. Link with subpart DA
5: This section supplements the general permission and overrides the capital limitation. The other general limitations still apply. amount, business, capital limitation, cost of timber, deduction, dispose, general permission, income year, timber, trading stock .
2: Subsection (1)
156: Ring-fenced allocations
In section DT 1A(4) in respect of the excess for the excess
157: Branch equivalent income or loss: calculation rules
1: In section EX 21(26) the amount actuarially determined to be the part of the CFC's net income or loss the amount actuarially determined to be part of the CFC's profit or loss
2: Subsection (1)
158: Accounting profits method
1: Section EX 42(5)
5: For an income interest that the person has held for more than 12 months, the person may follow a simplified calculation process by choosing to be treated as holding, at all times in the income year, the same interest, including zero interest, that they held at the end of the income year. The person makes the election by completing their return of income accordingly for the relevant income year.
2: Subsection (1) subsection (1) section EX 42(5)
159: Unlisted company may choose to become portfolio listed company
After section HL 11B(2) Extension in certain cases
3: Despite subsection (2), a company that makes an election under subsection (1) does not stop being a portfolio listed company from the last day of the period of 2 years from the date on which the election takes effect if—
a: the company has met the requirements of subsection (1)(b) and (c) before 2 July 2009; and
b: a period of 4 years from the date on which the election takes effect has not expired. Further extension granted by Commissioner
4: Despite subsections (2) and (3)
160: Credits arising to imputation credit account
In section ME 4(1)(a)(ii) to which section EY 47 applies
161: New section NF 2E inserted
1: After section NF 2D
NF 2E: Amounts withheld from distributions to holders of FIF attributing interests
1: This section applies when—
a: a distribution is made to a holder of an attributing interest in a FIF; and
b: section CD 26 or EX 47(2) applies to the distribution; and
c: an amount is deducted from the distribution because the payer has treated the distribution as resident withholding income subject to the RWT rules.
2: The amount deducted is treated as—
a: RWT for the purposes of this subpart and subpart MD and section LD 3; and
b: tax paid in excess for the purposes of Part 10B of the Tax Administration Act 1994.
3: The distribution is treated as resident withholding income for the purposes of the provisions listed in subsection (2)
4: Subsection (2)
2: Subsection (1)
162: Definitions
1: This section amends section OB 1
2: The definition of cost of timber cost of timber DP 10
a: means the amount of expenditure incurred by a person in relation to timber—
i: before harvest, for a disposal of harvested timber:
ii: before the disposal of the timber or the relevant right, for a disposal of standing timber or a disposal of a right to take timber, or another right referred to in section DP 10(4)
b: includes, for section DP 10
i: expenditure on planning, planting, and growing the timber:
ii: expenditure incurred in relation to the rights listed in section DP 10(4)
c: excludes—
i: expenditure for which a deduction is allowed under a provision of this Act other than section DP 10
ii: expenditure to which section DB 37 (Avoiding, remedying, or mitigating effects of discharge of contaminant) applies:
iii: an amount allowed as a deduction under section DQ 4 (Environmental restoration accounts scheme) .
3: In the definition of creditable membership
b: includes, for a person,—
i: the period described in paragraph (c)
ii: the days in the month in which securities are first allotted by the KiwiSaver scheme or complying superannuation fund in relation to the person:
iii: for the period beginning on 1 July 2007 and ending on the day on which securities are first allotted by the KiwiSaver scheme for the person, the days in the month that the KiwiSaver scheme receives a valid application for membership from the person and any remaining days in that period, if the person makes contributions in relation to the KiwiSaver scheme before 1 November 2007:
c: the period referred to in paragraph (b)(i)
i: the first day of the month in which contributions are first received by the Commissioner for the person:
ii: the first day of the month in which KiwiSaver contributions are first deducted for the person:
iii: the day that the Commissioner nominates following a request by the person when, due to matters beyond the control of the person, the first deduction of KiwiSaver contributions was delayed .
4: In the definition of fixed rate share
f: in section FC 2B (Stapled debt securities), and the definitions of proportional-stapling company stapled debt security
i: a share described in paragraph (a):
ii: a share that would be a share described in paragraph (a) but for a dividend or a variation in the rate of dividend that may occur when the share is converted into another share (the other share paragraph (g)
iii: a share for which the dividend payable is the equivalent of the payment of interest for money lent, having regard to the factors set out in paragraph (h)
g: for the purposes of paragraph (f)(ii)
i: a change in value of the other share occurs in a period that starts no more than 30 days before the share is converted and ends when the share is converted, and the period was a term or condition of the share when the share was first issued:
ii: a term or condition of the share that existed when the share was first issued, and the term or condition sets the gain at a fixed percentage equal to 5% or a lesser percentage of the amount subscribed for the share:
h: for the purposes of paragraph (f)(iii)
i: whether or not the share is redeemable:
ii: any security provided to the shareholder, including put or call options over the share or any amount payable determined by reference to the amount of dividend payable:
iii: the variability or lack of variability of the dividend payable .
5: After the definition of forester forestry business .
6: After the definition of new provisional taxpayer new reporting standard section DB 27 section DB 26 .
7: After the definition of old financial arrangements rules old reporting standard section DB 27 section DB 26 .
8: The definition of overtime overtime .
9: The definition of timber timber
a: is defined in section DP 10(4)
b: includes standing timber in—
i: section DP 10
ii: section FB 4 (Income derived from disposal of trading stock together with other assets of business):
iii: section FF 7 (Disposal of timber under relationship agreement):
iv: section GD 1 (Sale or other disposal of trading stock for inadequate consideration):
v: section GD 2 (Distribution of trading stock to shareholders of company):
vi: the definition of dispose
vii: the definition of right to take timber
viii: the definition of trading stock .
10: Subsections (2), (5), and (9)
163: Lists of defined terms in Income Tax Act 2004
The lists of defined terms in the sections of the Income Tax Act 2004 listed in schedule 2
5: Amendments to other Acts
Amendment to Income Tax Act 1994
164: Credits arising to imputation credit account
In section ME 4(1)(a)(ii) of the Income Tax Act 1994 to which section CM 16 applies 2009-12-07 Income Tax Act 1994 Amendment to Maori Trustee Amendment Act 2009
165: Taxes and duties
In section 29(3) section 31(1) of the Tax Administration Act 1994 section 3(1) of the Tax Administration Act 1994 2009-12-07 Maori Trustee Amendment Act 2009 Amendments to Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009
166: Section CX 55 replaced
In section 63(2)(b)(i) paragraph (b) subparagraph (ii) 2009-12-07 Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009
167: Gifts of money by company
Section 757 2009-12-07 Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 Amendment to Student Loan Scheme Act 1992
168: Commissioner to assess borrower's repayment obligation
1: Section 15(1)
1: The Commissioner must make an assessment of the amount, if any, of a borrower's repayment obligation for a tax year as soon as practicable after the end of the tax year.
2: Subsection (1) 2009-12-08 Student Loan Scheme Act 1992