Taxation (Remedial Provisions) Act 1997

1: Short Title
This Act may be cited as the Taxation (Remedial Provisions) Act 1997.
1: Amendments to Income Tax Act 1994
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
2: Income Tax Act 1994
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
3: Double tax agreements
Section BH 1
BH 1: Double tax agreements
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
4: Certain pensions, benefits, and other compensation exempt
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
5: Certain compensation, benefits, and other payments are gross income
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
6: Meaning of term
dividends Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
7: Branch equivalent income calculation
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
8: Meaning of
fringe benefit Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
9: Interpretation of fringe benefit tax rules
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
10: Patent expenses
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
11: Expenditure on scientific research
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
12: Formula for calculating depreciation deduction
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
13: Fixed life intangible property
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
14: Annual depreciation rate for fixed life intangible property
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
15: Depreciation of depreciable property that can no longer be used
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
16: Election that property not be depreciable
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
17: Transfer of depreciable property between associated persons
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
18: Disposition of depreciable property
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
19: Sums received from sale of patent rights
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
20: Sums received from sale of patent rights
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
21: Sums received from sale of patent rights
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
22: Depreciation deduction for assets acquired by taxpayer from associated person before a certain date
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
23: Assignments or settlements of income
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
24: Depreciable property
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
25: Cross-border arrangement between associated persons
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
26: Dividends from qualifying company
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
27: Loss attributing qualifying companies
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
28: Minority shareholders in loss attributing qualifying companies
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
29: Revocation of loss attribution elections
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
30: Loss carry forward and grouping by consolidated group and consolidated group members
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
31: Loss carry forward and grouping by consolidated group and consolidated group members
Subsection (1) amended 23 September 1997 57(2) Taxation (Remedial Provisions) Act 1998 by substituting the expression 30 28 Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
32: Losses may be used to pay penalties
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
33: Low income rebate
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
34: Rebate in respect of gifts of money
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
35: Commissioner to deliver credit of tax by instalments
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
36: Credit of tax for imputation credit
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
37: Credit of tax for imputation credit
Subsection (1) amended 23 September 1997 57(3) Taxation (Remedial Provisions) Act 1998 by substituting the expression 36 33 Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
38: Credit of tax for imputation credit
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
39: Credits in respect of tax paid in a country or territory outside New Zealand
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
40: Dividend paid without deduction in full of foreign tax
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
41: Underlying foreign tax credits
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
42: Amount of provisional tax payable
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
43: Election to be a provisional taxpayer
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
44: Estimated provisional tax
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
45: Provisional tax payable in instalments
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
46: Amount of provisional tax instalments in transitional year
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
47: Assessment and payment of terminal tax
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
48: Payment of tax
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
49: Payment of tax deductions to Commissioner
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
50: Bond, etc, in lieu of tax deductions in case of certain non-resident employees
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
51: Specified superannuation contribution withholding tax payment date
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
52: Requirement for agents or trustees to make resident withholding tax deductions on receipt of payments
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
53: Non-resident withholding tax imposed
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
54: Non-resident withholding tax on dividends not paid in money
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
55: Definitions
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
56: Meaning of source deduction payment-shareholder-employees of close companies
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
57: Meaning of qualifying company
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
58: Modifications to measurement of voting and market interests
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
59: Further definition of associated persons
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
60: Source of dividends
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
61: Amendments to Schedule 1 Part A
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
62: Schedule replaced
Section 62 repealed 36(2) Taxation (Remedial Provisions) Act 1998
63: Schedule 17—depreciable intangible property
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
64: Schedule 18 (State-Owned Enterprises)
Part 1 repealed 1 April 2005 YA 2 Income Tax Act 2004
2: Amendments to Tax Administration Act 1994
65: Tax Administration Act 1994
The Tax Administration Act 1994
66: Application
1: Sections 67 68(1) 68(2) 68(4) 68(5) 69 71 82 84 85 86 88 90 92 93 94 95 96 97 101 105 106
a: Tax on taxable income in the 1997-98 or subsequent income years; and
b: Supplies made in taxable periods commencing on or after 1 April 1997; and
c: Gifts made on or after 1 April 1997; and
d: Races run, lotteries drawn, dutiable games played by means of a gaming machine and casino wins to which the Gaming Duties Act 1971
e: Instruments of conveyance executed, bills of exchange made, drawn or prepaid under sections 81 82 83 Stamp and Cheque Duties Act 1971
2: Sections 73 74(1) 77 78
3: Sections 68(3) 68(6) 80 83 98 102
4: Section 87
67: Interpretation
In section 3(1) accounting period Acceptable interpretation sections 141A and 141C of this Act .
68: Interpretation
1: In section 3(1) civil penalty Civil penalty
a: A late filing penalty; or
b: A late payment penalty; or
c: A shortfall penalty. .
2: In section 3(1) late payment penalty Late payment penalty
a: A civil penalty imposed under section 139B
b: For the purposes of sections 157, 183A, 183B, and 183D
i: Additional tax imposed on unpaid tax under section 139 of the Tax Administration Act 1994
ii: Additional tax imposed on any tax remaining unpaid under section 41 of the Goods and Services Tax Act 1985
iii: Interest on gift duty imposed under section 84 of the Estate and Gift Duties Act 1968
iv: A penalty imposed in relation to unpaid stamp duty under section 58 of the Stamp and Cheque Duties Act 1971 section 86E
A: An instrument of conveyance executed; and
B: A bill of exchange made, drawn, or prepaid under sections 81 to 83 of that Act
C: A liable transaction entered into— before 1 April 1997:
v: Interest on unpaid totalisator duty under section 8 of the Gaming Duties Act 1971 section 4 of the Gaming Duties Act 1971
vi: Interest on unpaid racing duty under section 12 of the Gaming Duties Act 1971
vii: Interest on unpaid gaming machine duty under section 12F of the Gaming Duties Act 1971
viii: Interest on unpaid casino duty under section 12Q of the Gaming Duties Act 1971 .
3: In section 3(1) tax position
k: The estimation of the provisional tax payable. .
4: In section 3(1) tax shortfall Tax shortfall
a: A taxpayer's tax position for the return period; and
b: The correct tax position for that period,— when the taxpayer's tax position results in too little tax paid or payable by the taxpayer or another person or overstates a tax benefit, credit, or advantage of any type or description whatever by or benefiting (as the case may be) the taxpayer or another person .
5: In section 3(1) taxpayer's tax position Taxpayer's tax position
a: Unless paragraph (b)
i: A tax return; or
ii: A due date:
b: If—
i: The tax is income tax; and
ii: The taxpayer alters a tax position taken in a return before the earlier of—
A: The issue of an assessment in respect of the tax; and
B: The due date for payment of the tax— the tax position the taxpayer takes in the last amended tax return received by the Commissioner before the issue of the assessment or before the due date, whichever applies: .
6: In section 3(1) underestimation penalty
69: Construction of certain provisions
1: In section 4A(2)(c) or paragraph (b) paragraph (a)
2: In section 4A(2)(d) or paragraph (b) paragraph (a)
3: Section 4A(4)
4: Where a taxpayer required to provide a return under any of sections NC 15, NF 4, NG 11, and NH 3 of the Income Tax Act 1994
a: Furnishes a return that shows a liability to pay tax under that section; and
b: The tax is required to be paid by a due date for a return period; and
c: The liability shown in the return is greater than the tax that the taxpayer paid by the due date— the taxpayer's tax position in respect of the due date is the tax paid and not the amount of tax shown as payable in the tax return. .
70: Dates by which annual returns to be furnished
Section 37(3) in that behalf made in writing
71: Officers to maintain secrecy
After section 81(6)
7: In this section tax or duty taxes or duties tax and duty Child Support Act 1991 Student Loan Scheme Act 1992 .
72: Secrecy obligations not to prevent disclosure in arrangements for relief from double taxation and exchange of information
Section 88
88: Notwithstanding any obligation of secrecy imposed by any enactment, the Commissioner may disclose such information as is required to be disclosed under a double tax agreement to a person authorised to receive such information under the law of the territory in relation to which the double tax agreement has been made. .
73: Determinations in relation to apportionment of interest costs
1: Section 90A(4) (5)
2: Subsection (1)
74: Taxation laws in respect of which binding rulings may be made
1: In section 91C(1)(e)(v) or section EL 9(3)
2: After section 91C(1)(e)(v)
vi: Section EL 9(3) of the Income Tax Act 1994 .
3: In section 91C(1)(e) subparagraph (i)
iA: Section 90A of this Act Subpart FG of the Income Tax Act 1994 .
4: Subsection (3)
75: Commissioner to make private rulings on request
1: In section 91E(3)(b) , challenge, objection
2: Subsection (1)
3: Section 91E(4)(d)(ii)
ii: Is being dealt with, or in the Commissioner's opinion should be dealt with, by one or both competent authorities of the parties to a double tax agreement; or .
4: Subsection (3)
76: Commissioner may make product rulings
1: In section 91F(3)(b) , challenge, objection
2: Subsection (1)
3: Section 91F(4)(d)
d: The matter on which the ruling is sought is being dealt with, or in the Commissioner's opinion should be dealt with, by one or both competent authorities of the parties to a double tax agreement; or .
4: Subsection (3)
77: Assessment of further income tax
Section 101(3)
3: An assessment made under this section shall be subject to challenge in the same manner as an assessment of income tax and Part VIIIA of this Act income tax tax section ME 9 of the Income Tax Act 1994 .
78: Time bar for amendment of assessments
1: After section 107
107A:
1: When any person has made returns and has been assessed for income tax for any year, it shall not be lawful for the Commissioner to alter the assessment so as to increase its amount after the expiration of 4 years from the end of the year in which the notice of original assessment was issued.
2: Notwithstanding subsection (1)
3: Subsections (1) and (2) section 108 of this Act .
2: Subsection (1)
79: Transitional provision affecting assessments
1: After section 109
109A: A notice of assessment issued on or after 1 April 1995 and relating to return periods before that date shall be deemed to have been made under the Tax Administration Act 1994 .
2: Subsection (1)
80: Commissioner may determine amount of provisional tax
1: Section 119(1)(d)
d: The Commissioner considers that any estimate of residual income tax furnished by a taxpayer pursuant to section MB 3 of the Income Tax Act 1994
i: At the time the estimate was furnished; or
ii: On any instalment date. .
2: Section 119(2)(a)
3: Section 119(3)
3: An amount of provisional tax determined by the Commissioner under subsection (1) .
81: Commissioner determination of provisional tax
Section 119(2)(b)
b: The Commissioner considers, by reason of any of sections HK 26(2), HK 26(3), LC 1, LC 4, and LC 5 of the Income Tax Act 1994 .
82: Purpose of specific provisions
In section 120J sections 120K to 120U sections 120K to 120V
83: Instalments of and due dates for provisional tax
1: Section 120K(1)
120K:
1: Except where this section requires otherwise, in an income year, other than a transitional year, the income tax liability of a provisional taxpayer is due and payable in equal instalments on each of the 3 instalment dates of the income year. .
2: In section 120K(3) , other than in a transitional year, The income tax liability of a new provisional taxpayer
3: Section 120K(4)
4: The income tax liability of a provisional taxpayer who is a natural person, other than in that person's capacity as trustee, with residual income tax not exceeding $30,000 for that income year and—
a: Has not provided an estimate of the person's residual income tax under section MB 3 of the Income Tax Act 1994
b: Has not, at any time during the income year, held a valid certificate of exemption issued under section NF 9(12) of the Income Tax Act 1994 is due and payable in one instalment on the taxpayer's terminal tax date.
4A: In a transitional year, the income tax liability of a provisional taxpayer, other than a natural person to whom subsection (4)
a: On the instalment date or dates determined in accordance with section MB 5A of the Income Tax Act 1994
b: Subject to paragraph (c) paragraph (a) 4 x i m where—
i: is the income tax liability for the transitional year; and
m: is the number of months in the transitional year:
c: The amount payable on a final instalment date is determined in accordance with section MB 5(11) of the Income Tax Act 1994 paragraph (b)
4B: For the purposes of this Part, the income tax liability of a provisional taxpayer who is a natural person and to whom sections 120K(1) or 120K(4)
4C: Notwithstanding section 59(3), subsection (4B) .
4: In section 120K(5) person incorrectly assumed to be a provisional taxpayer
84: Variation to definition of date interest starts
Section 120O
120O: The definition of date interest starts the later of the following days subparagraph (ii) paragraph (b)
a: A payment required by sections NC 15(1)(b) or NC 15(1)(i) of the Income Tax Act 1994
b: A payment required by sections NC 15(1)(c) or NC 15(1)(i) of the Income Tax Act 1994
c: A payment required by section NF 4 of the Income Tax Act 1994
d: A payment required by section NG 11 of the Income Tax Act 1994
e: A payment required by section NH 3 of the Income Tax Act 1994 .
85: Amount in nature of interest to be added to fringe benefit tax paid on annual income year basis
After section 120S(3)
4: In calculating interest on overpaid fringe benefit tax under this section, date interest starts the later of the following days subparagraph (ii) paragraph (b) .
86: Interest on excess deductions of resident withholding tax
After section 120U
120V: If the Commissioner is required to make a refund of excess resident withholding tax under section NF 7 of the Income Tax Act 1994 section 120D(3) .
87: Certain rights of challenge not conferred
1: Section 138E(1)(e)(iii)
iii: Any of sections CF 6, HK 7, HK 11, HK 18, HK 24, HK 26, IB 1, LC 1 to LC 3, LC 7, LC 13 to LC 15, MD 1, and OB 2 of the Income Tax Act 1994 sections 33, 89, 139 (insofar as it applies to unpaid tax for periods before 1 April 1997) and 184 of the Tax Administration Act 1994 .
2: Section 138E(1) paragraph (e)(iv) 108,
88: Challenging civil penalties
Section 138L(2)(b)
b: The percentage applicable to the civil penalty: .
89: Late filing penalties
After section 139A(4)
5: Not less than 30 days before imposing a late filing penalty, the Commissioner must—
a: Send written notice to a taxpayer that a late filing penalty may be imposed if a return specified in the notice is not filed; or
b: Publicly notify that a late filing penalty may be imposed on taxpayers who omit to file the required return. .
90: Underestimation penalty where income tax underestimated as at final instalment date
1: Section 140A(1) applicable
2: Section 140A(2)
2: When the income tax is reassessed for an income year, the amount of an underestimation penalty imposed for that year shall not be increased beyond the amount of any underestimation penalty previously imposed for that year. .
91: Underestimation penalty where income tax underestimated as at final instalment date
1: Section 140A
2: Subsection (1)
92: Tax shortfalls
1: Section 141(3)
3: A separate tax shortfall calculation is required—
a: For each return period; and
b: For each tax type; and
c: For each tax position taken by a taxpayer. .
2: Section 141(5)
5: If, in a return period—
a: A taxpayer is liable to pay one or more shortfall penalties in respect of the same tax type; and
b: The taxpayer's liability to the tax is overstated in one or more respects— the tax shortfall for a tax type shall be calculated by—
c: Setting off the tax effects of the overstatements against the understatement, in the case of one tax shortfall; and
d: Setting off the tax effects of the overstatements pro-rated against the understatements, in the case of more than one tax shortfall. .
3: In section 141(9) If If, in the application of subsection (6)
4: After section 141(13)
14: For the purposes of determining the amount of a tax shortfall in relation to an instalment date and a provisional taxpayer, the tax shortfall shall be the difference between—
a: The lesser of—
i: The amount of provisional tax payable on the instalment date if an estimate had not applied at that instalment date; and
ii: The amount that would have been payable on that instalment date if the taxpayer's provisional tax payable for the income year had been the taxpayer's residual income tax liability for the income year; and
b: The amount of provisional tax payable on that instalment date as determined by the estimate applying as at that instalment date. .
5: Subsection (5)
93: Not taking reasonable care
1: In section 141A(1) the taxpayer's tax position a taxpayer's tax position
2: Section 141A(3)
3: A taxpayer who, in taking a taxpayer's tax position, has used an acceptable interpretation of the tax law is also a taxpayer who has taken reasonable care in taking the taxpayer's tax position. .
94: Unacceptable interpretation
1: Section 141B(1)
141B:
1: In relation to a tax position taken by a taxpayer, an unacceptable interpretation—
a: Is an interpretation or an interpretation of an application of a tax law; and
b: Viewed objectively, that interpretation or application fails to meet the standard of being about as likely as not to be correct. .
2: In section 141B(3) on time
3: In section 141B(3)(a) , in the case of income tax, before
4: Section 141B(3)(b)(i)(A)
A: The net loss of a taxpayer in respect of the return period, ascertained in accordance with the provisions of the Income Tax Act 1994
95: Gross carelessness
1: In section 141C(1) the taxpayer's tax position a taxpayer's tax position
2: After section 141C(3)
4: A taxpayer who, in taking a taxpayer's tax position, has used an acceptable interpretation of tax law is also a taxpayer who has not been grossly careless in taking the taxpayer's tax position. .
96: Commissioner to determine portions in which shortfall penalty payable by taxpayer and officers of taxpayer
Section 141F
141F:
1: If—
a: A taxpayer is required to make or account for a deduction or withholding of tax under a tax law; and
b: An officer of the taxpayer fails to make a deduction or withholding of tax under a tax law or applies or permits to be applied the amount of the deduction or withholding of tax other than in payment to the Commissioner,— one shortfall penalty, calculated in accordance with this Part, may be imposed in respect of each tax position taken by the taxpayer.
2: If the Commissioner determines that a shortfall penalty is required to be imposed, the Commissioner may determine the portion that each of the taxpayer and the officers is to be liable for that penalty having regard to—
a: The acts or omissions of the taxpayer and the officers; and
b: Whether those acts or omissions were reasonable in the circumstances of the case. .
97: New due date for payment of tax that is not a penalty
Section 142A(1)(b)
b: A taxpayer's liability to pay tax on a due date is increased beyond the amount of tax the taxpayer calculated as payable in a return furnished in relation to the due date. .
98: Due dates for payment of imputation penalty tax and dividend withholding penalty tax
Section 142E(3)
99: Deduction of tax from payments due to defaulters
1: Section 157(1)
157:
1: Where a taxpayer has made default in the payment to the Commissioner of any income tax (or a part of any income tax) or any interest under Part VII
a: Deduct or extract, in one sum, from any amount that is, or becomes, an amount payable in relation to the taxpayer such sum as is equal to the lesser of—
i: The amount that, according to the notice, is required to be deducted or extracted:
ii: The amount that, at the time at which the deduction or extraction is required to be made in compliance with the notice, is the amount payable in relation to the taxpayer:
b: Subject to subsection (3)
i: The amount that, at the time at which the deduction or extraction is required to be made in compliance with the notice, is the amount required to be so deducted or extracted:
ii: The amount that, at the time at which, according to the notice, the amount of the instalment is required to be deducted or extracted, is the amount payable,— and require that person to pay to the Commissioner, within such time as is specified in the notice, every sum so deducted or extracted, to the credit of,—
c: To the extent that that sum is in respect of or in relation to income tax (or any part of any income tax) or any interest under Part VII
d: To the extent that that sum is in respect of or in relation to the whole or any part of a tax deduction or interest payable to the Commissioner or a civil penalty, an account maintained by the Commissioner in relation to that tax deduction or that interest or that civil penalty.
1A: A notice of amount to be deducted or extracted issued under subsection (1)
1B: The daily amount of interest notified under subsection (1A) .
2: In section 157(10) income tax
a: Income tax payable under the Income Tax Act 1994 Income Tax Act 1976 .
3: Subsection (1)
4: Subsection (2)
100: Power of the Commissioner in relation to small amounts of refunds or tax payable
In section 174(1)(a) $5 $20
101: Relief in cases of serious hardship
After section 176(6)
7: In this section, tax income tax section OB 6(1)(a) of the Income Tax Act 1994 .
102: Remission of underestimation penalty tax
Section 178
103: Relief from additional tax incurred due to default in payment of tax
1: Section 182 section 60 Tax Administration Amendment Act (No 2) 1996
2: Notwithstanding subsection (1) section 182
104: Amendment to application date
1: Sections 183A to 183D
183A: Remission for reasonable cause
1: The Commissioner may remit a late filing penalty or a late payment penalty or an imputation penalty tax imposed under section 140B section 140C
a: The Commissioner is satisfied that the late filing or late payment was caused by an event or circumstance beyond the control of the taxpayer that provides the taxpayer with a reasonable justification or excuse for not providing the tax return or paying the tax on time; and
b: The taxpayer files the required tax return or pays the unpaid tax as soon as practicable.
2: Without limiting the Commissioner's discretion under subsection (1)
a: An accident or a disaster; or
b: Illness or emotional or mental distress.
3: An event or circumstance does not include—
a: An act or omission of an agent of a taxpayer, unless the Commissioner is satisfied that the act or omission was caused by an event or circumstance beyond the control of the agent—
i: That could not have been anticipated; and
ii: The effect of which could not have been avoided by compliance with accepted standards of business organisation and professional conduct; or
b: A taxpayer's financial position.
183B: Cancellation of late payment penalties under instalment arrangement
1: The Commissioner must cancel a taxpayer's liability to pay—
a: 60% of an initial late payment penalty; or
b: An incremental late payment penalty.
2: The Commissioner must cancel a taxpayer's liability under subsection (1)
a: The tax to pay in respect of which the taxpayer would otherwise have had the liability is—
i: Tax payable in 2 or more instalments under an arrangement with the Commissioner; or
ii: Tax in respect of which deductions are to be made and paid to the Commissioner under section 157 of this Act section 43 of the Goods and Services Tax Act 1985
b: The taxpayer complies with the taxpayer's obligations under the arrangement; and
c: The liability would otherwise have arisen after—
i: The arrangement was entered into; or
ii: The Commissioner exercised powers available to the Commissioner under section 157 of this Act section 43 of the Goods and Services Tax Act 1985
183C: Cancellation of interest
1: Subject to subsection (3) Part VII
a: The Commissioner issues the taxpayer with a notice of assessment; and
b: The tax assessed in the notice, together with any interest payable under Part VII
2: Where a taxpayer challenges an assessment by commencing proceedings under Part VIIIA Part VII
a: The Commissioner issues the taxpayer with a notice of assessment; and
b: The non-deferrable tax in relation to the tax assessed in the notice, together with any interest payable under Part VII
3: Where—
a: The Commissioner issues a notice of assessment to a taxpayer before the original due date for payment of the tax to which the assessment relates; and
b: The tax assessed in the notice, together with any interest payable under Part VII the Commissioner shall cancel the taxpayer's liability to pay interest under Part VII
4: Where—
a: The Commissioner issues a statement of account to a taxpayer after the original due date for payment of tax to which the statement of account relates; and
b: The tax referred to in the statement of account, together with any interest payable under Part VII the Commissioner shall cancel the taxpayer's liability to pay interest under Part VII
5: When the 30th day referred to in subsection (3) subsection (4) Part VII
183D: Remission consistent with collection of highest net revenue over time
1: The Commissioner may remit—
a: A late filing penalty; and
b: A late payment penalty; and
c: Interest under Part VII payable by a taxpayer if the Commissioner is satisfied that the remission is consistent with the Commissioner's duty to collect over time the highest net revenue that is practicable within the law.
2: In the application of this section, the Commissioner must have regard to the importance of the late payment penalty, the late filing penalty, and interest under Part VII
3: The Commissioner must not consider a taxpayer's financial position when applying this section. .
2: Subsection (1) section 183C(4) (5)
105: Small amounts of penalties and interest not to be charged
After section 183F(b)
ba: A taxpayer is not liable to pay a late payment penalty or interest under Part VII .
106: Remission on written application
Section 183H
183H: A taxpayer seeking the remission of an amount or of a liability to pay an amount of interest or tax must—
a: Write to the Commissioner requesting that the amount of tax or interest liability be remitted; and
b: Produce such information as the Commissioner requires in relation to the request. .
107: Refund of tax paid on income subsequently exempted by Order in Council
Section 184
184: If a double tax agreement exempts from tax any income derived before the date of the Order in Council that gives effect to the double tax agreement, and the Commissioner is satisfied tax has been paid in relation to that income, and written application is made by or on behalf of the taxpayer at any time within 4 years after the date of the Order in Council, then notwithstanding anything in section MD 1 of the Income Tax Act 1994 .
3: Amendments to Goods and Services Tax Act 1985
108: Goods and Services Tax Act 1985
The Goods and Services Tax Act 1985
109: Interpretation
Section 2(1) Tax file number section OB 1 of the Income Tax Act 1994 .
110: Change in registered person's taxable period
1: Section 15A(1)(b)
b: Following notification by the registered person under paragraph (c) or paragraph (ca) of section 53(1) of this Act .
2: Section 15A(5)(b)
b: That person has not, before the last day of the person's immediately subsequent taxable period, notified the Commissioner of a change of status pursuant to section 53(1)(ca) .
111: Requirements for accounting on payments basis
In section 19A(2) paragraph (a)
2: Where the Commissioner is satisfied (whether by a notification given by the registered person under section 53(1)(cb) of this Act paragraphs (a) to (c) of subsection (1) of this section .
112: Tax file number
Section 24(2B)
2B: In any case where subsection (2A) of this section paragraph (b) of subsections (3) and (4) of this section .
113: Assessment of tax
1: After section 27(1)(c)
ca: Any person who breaches a tax obligation (as defined in the Tax Administration Act 1994 .
2: Section 27(2)
2: Subject to sections 108A and 108B and Part IVA of the Tax Administration Act 1994 .
3: Section 5(1)(c) Goods and Services Tax Amendment Act 1996
4: Subsections (1) (2)
114: Deduction of tax from payment due to defaulters
1: After section 43(2)
2A: A notice of amount to be deducted or extracted issued under subsection (1)
2B: The daily amount of interest notified under subsection (2A) .
2: Subsection (1)
115: Group of companies
Section 55(5)(a)
a: That member or the representative member of that group of companies notifies the Commissioner of that cessation pursuant to section 53(1)(d) of this Act .
4: Amendments to Income Tax Act 1976
116: Income Tax Act 1976
The Income Tax Act 1976
117: Gain or loss on disposal of depreciable property
1: Section 117
6A: Where property of a taxpayer is irreparably damaged, the consideration derived by the taxpayer on the disposition of the property is the amount of any insurance proceeds or indemnity payment or other consideration received in relation to that event, and subsection (7) .
2: Subsection (1) section 117(7) of the Income Tax Act 1976
118: Dividends from qualifying company
1: After section 393M(1)
1A: For the avoidance of doubt, a dividend that is paid by a qualifying company to any trustee shareholder, and that is, or that becomes, beneficiary income of a beneficiary resident in New Zealand, is exempt income of the beneficiary to the same extent as if the beneficiary were the shareholder referred to in section 393M(1)(a) .
2: Subsection (1)
5: Amendments to various other Acts
119: Estate and Gift Duties Act 1968
1: This section amends the Estate and Gift Duties Act 1968 the principal Act
2: In section 95 1st day of October 1996 1st day of April 1997
3: Subsection (2)
120: Gaming Duties Act 1971
1: This section amends the Gaming Duties Act 1971 the principal Act
2: Section 3 Officer of the Department Tax Administration Act 1994 .
3: In section 12H(2)
a: The words a District Commissioner an officer of the Department
b: District Commissioner an officer of the Department
4: After section 12L(1)
1A: A notice of amount to be deducted or extracted issued under subsection (1)
1B: The daily amount of interest notified under subsection (1A) .
121: Tax Administration Amendment Act (No 2) 1996
1: Section 24(2)(b) Tax Administration Amendment Act (No 2) 1996
2: Subsection (1)
122: Taxation Review Authorities Act 1994
1: This section amends the Taxation Review Authorities Act 1994 the principal Act
2: In section 17(2C) subsection (1) subsection (2A)
3: In section 30(2)
d: Prescribing the fees to be paid in respect of the filing of any proceedings brought under this Act. .
123: Taxation (Income Tax Rates) Act 1997
1: This section amends the Taxation (Income Tax Rates) Act 1997 the principal Act
2: In section 16(1) 51(1) and (2) 51(1)
3: After section 16(1)
1A: In section 51(2) (as substituted by section 37(2) of this Act .
4: This section is deemed to come into force on 14 May 1997.
6: Remedial amendments arising from Taxation (Core Provisions) Act 1996
Substantive amendments to Income Tax Act 1994
124: Income Tax Act 1994
Sections 124 142 repealed 1 April 2005 YA 2 Income Tax Act 2004
125: Treatment of net loss
Sections 124 142 repealed 1 April 2005 YA 2 Income Tax Act 2004
126: Other exempt income
Sections 124 142 repealed 1 April 2005 YA 2 Income Tax Act 2004
127: Exempt income—dividends
Sections 124 142 repealed 1 April 2005 YA 2 Income Tax Act 2004
128: Meaning of fringe benefit
Sections 124 142 repealed 1 April 2005 YA 2 Income Tax Act 2004
129: Cost of minerals, timber, or flax
Sections 124 142 repealed 1 April 2005 YA 2 Income Tax Act 2004
130: New Subpart EQ inserted
Sections 124 142 repealed 1 April 2005 YA 2 Income Tax Act 2004
131: Interpretation
Sections 124 142 repealed 1 April 2005 YA 2 Income Tax Act 2004
132: Tax in respect of Maori authorities with 20 or fewer beneficiaries
Sections 124 142 repealed 1 April 2005 YA 2 Income Tax Act 2004
133: New Subpart ID inserted
Sections 124 142 repealed 1 April 2005 YA 2 Income Tax Act 2004
134: Specified activity net losses
Sections 124 142 repealed 1 April 2005 YA 2 Income Tax Act 2004
135: Offsetting supplementary dividend against net income
Sections 124 142 repealed 1 April 2005 YA 2 Income Tax Act 2004
136: Policyholder net losses
Sections 124 142 repealed 1 April 2005 YA 2 Income Tax Act 2004
137: Credit of tax for imputation credit
Sections 124 142 repealed 1 April 2005 YA 2 Income Tax Act 2004
138: New Zealand income tax liability on foreign source income
Sections 124 142 repealed 1 April 2005 YA 2 Income Tax Act 2004
139: Credits arising to imputation credit account
Sections 124 142 repealed 1 April 2005 YA 2 Income Tax Act 2004
140: Definitions
Sections 124 142 repealed 1 April 2005 YA 2 Income Tax Act 2004
141: Various amendments to Income Tax Act 1994
Sections 124 142 repealed 1 April 2005 YA 2 Income Tax Act 2004 Amendments—Aids to interpretation in Income Tax Act 1994
142: Aids to interpretation
Sections 124 142 repealed 1 April 2005 YA 2 Income Tax Act 2004 Amendments to Tax Administration Act 1994
143: Replacing sections in Tax Administration Act 1994
1: This section amends the Tax Administration Act 1994
2: Sections 138J 138K
138J: Waiver of payment or security
The Commissioner may waive any requirement under section 138I
a: The payment of the tax (or the provision of security) before the end of the relevant period of deferral will unduly prejudice a taxpayer's business or personal circumstances; and
b: There is no risk to the revenue in waiving the payment (or the provision of security) until after the challenge is determined.
138K: Determination of challenge not to affect other matters
The determination of a challenge by a hearing authority under this Part—
a: Relates solely to the matter that is the subject of the disputable decision being challenged; and
b: Does not affect the right of the Commissioner to make a disputable decision relating to a different matter and to amend the disputable decision being challenged in any way rendered necessary by the later disputable decision. .
3: Section 473 of the Taxation (Core Provisions) Act 1996
4: Subsection (2)
144: Various amendments to Tax Administration Act 1994
1: In section 120R(a) loss net loss
2: Section 120P
2: If gross income of a taxpayer is allocated to an income year under subsection (1)(b) .
3: Section 120R(2)
4: Subsections (1) to (3)