Section 139A amended (Late filing penalty for certain returns) Section 141JA amended (Application of Part 9 to non-filing tax payers) Section 143 amended (Absolute liability offences) Section 143A amended (Knowledge offences) Schedule 5 amended (Certain tax and rates) Income Tax Act 2007 Section CX 27 amended (Assistance with tax returns) Section RA 13 amended (Payment for terminal tax) Section RB 3 amended (Schedular income tax liability for filing taxpayers for passive income) Section RC 3 amended (Who is required to pay provisional tax?) Section RD 22 amended (Providing employment income information to Commissioner) Support Act 1991 Section 35 amended (Adjusted taxable income) Section 81 amended (Notification requirement of parents) Student Loan Scheme Act 2011 Section 34 amended (Repayment codes for New Zealand-based borrowers) Section 35 amended (Borrowers with “SL” repayment code must notify employers) Section 36 amended (Employer or PAYE intermediary must make standard deductions from salary or Section 57 amended (Consequences of exemption from standard deductions) Section 60 amended (Where exemption from standard deductions ceases to apply) Schedule 2 amended (Application of PAYE rules for purposes of section 70) Accident Compensation Act 2001 Schedule 4 amended (Deductions on account of earner levies) (Clause 42) Summary of proposed amendment Several amendments are proposed to enable Inland Revenue to simplify the administration of donation tax credits. The proposed changes are: Donation receipts would be able to be submitted during the year, and could be submitted electronically. Donation tax credits be able to be claimed as part of the income tax year-end process. resident
2016 tax return until 31 March 2017. Section RC 9(4)(c) of the Income Tax Act 2007 states that Kamekona does not need to pay provisional tax in three instalments. Section RC 9(10) then says that Kamekona can pay provisional tax in one instalment following the rules in section RC 14. Kamekona pays $200,000 in provisional tax on 7 May 2018 (the third instalment date) for the 2017 income year. For the 2017 income year Kemekona’s residual income tax actually works out to be $300,000. This amount should be apportioned over the three provisional tax instalment dates (Period 1 to Period 3) for the 2017 year and UOMI should be charged accordingly. At Period 1 and Period 2 UOMI should be calculated on $100,000 less the amount paid of zero from the respective payment dates through to Period 3 and then on $100,000 from Period 3 being the difference between the $300,000 residual income tax and the $200,000 paid. It is arguable the current wording of the legislation would only apportion the residual income tax to Kamekona at Period 3, although this was not the policy intent as UOMI is a use of money charge and the taxpayer had the use of those funds throughout the entire year. The amendment clarifies the policy intent. (Clauses 207–210) Summary of proposed amendment This amendment corrects some in the Income Tax Act 2007 which refer to repealed section 120K of the Tax Administration Act 1994. The amendment references those sections more generally to Part 7 of the Tax Administration Act 1994. Application date The proposed amendment will apply from 1 October 2007 – the date section 120K was repealed. There are no adverse implications that officials can see from this application date for taxpayers. Key features The following four sections in the Income Tax Act 2007 refer to section 120K of the Tax Administration Act 1994, which has been repealed: RM 16(3); RM 22(5); RM 25(3); and RM 31(3). The amendment references these sections to Part 7 of the Tax Administration Act 1994.
ownership of the land with the actual period of ownership of the associated person from whom they acquired the land. The intent is that the disposal would not be taxed if this combined period of ownership was 10 years or more. One interpretation is that the associated person’s relief rule can be applied to a series of sequential transfers of land between associated persons (a circle of association). This interpretation results in the 10-year period being determined from the first date the land was acquired within that circle of association. This interpretation is inconsistent with the policy intent and can result in under-taxation. The proposed amendment clarifies that the relief rule applies only to a combined ownership period of the vendor and the associated person from whom the vendor acquired the land. (Clause 199) Summary of proposed amendment The proposed amendment corrects an unintended legislative change in section RD 17 that potentially results in too much PAYE being withheld from an extra pay. Application date The proposed amendment will apply from the beginning of the 2008–09 income year. Key features The calculation of PAYE to be withheld from an pay (for example, a performance bonus) is determined by a calculation of an average rate of tax on an annualised amount of PAYE income payments based on: the amount of the extra pay; and all regular wages and salaries paid in the four weeks prior to the date of the extra pay. This annualised calculation is not intended to take into account any other amounts of extra pay that may have been made in that four week period. The rewrite of this provision into the Income Tax Act 2007 inadvertently includes all previous amounts of extra pay within that four week period when calculating the annualised amount. This inadvertent drafting change could result in too much PAYE being withheld. The proposed amendment restores the intended effect and confirms current practice.