Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017

Coat of Arms of New Zealand

Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017

Public Act
 
2017 No 3
Date of assent
 
21 February 2017
Commencement
 
see section 2

Contents

1Title
2Commencement
3Income Tax Act 2007 amended
4Section BH 1 amended (Double tax agreements)
5Section HC 11 amended (Foreign trusts)
6Section HC 26 amended (Foreign-sourced amounts: resident trustees)
7Section YA 1 amended (Definitions)
8Tax Administration Act 1994 amended
9Section 3 amended (Interpretation)
10Section 22 amended (Keeping of business and other records)
11Section 59B replaced (Disclosure of foreign trust particulars)
59BForeign trust with resident foreign trustee: registration and disclosure
59CTime limits for registration and disclosure of changes
59DAnnual return for foreign trust
59EFees: regulations and exemption
12Section 81 amended (Officers to maintain secrecy)
13Section 89C amended (Notices of proposed adjustment required to be issued by Commissioner)
14New heading and sections 91AAU to 91AAW inserted
91AAUParticipating jurisdictions for CRS applied standard
91AAVSuspension of reportable jurisdictions for CRS applied standard
91AAWNon-reporting financial institutions and excluded accounts for CRS applied standard
15Section 94A amended (Assessment of shortfall penalties)
16New section 94C inserted (Assessment of penalties under sections 142H and 142I)
94CAssessment of penalties under sections 142H and 142I
17New sections 142H and 142I inserted
142HFailures of financial institutions to meet requirements under Part 11B and CRS applied standard
142IFailures to meet requirements under Part 11B to provide information, including self-certifications
18Section 143 amended (Absolute liability offences)
19Section 143A amended (Knowledge offences)
20Section 185E amended (Purpose)
21New heading inserted after section 185E
22Section 185F amended (Permitted choices in relation to foreign account information-sharing agreements)
23Section 185G amended (Obligations related to foreign account information-sharing agreements: registration)
24Section 185H amended (Obligations related to foreign account information-sharing agreements: due diligence)
25Section 185I amended (Obligations related to foreign account information-sharing agreements: information for NZ competent authority)
26Section 185J amended (Obligations related to foreign account information-sharing agreements: information for third parties)
27Section 185L repealed (Foreign account information-sharing agreements: anti-avoidance)
28New headings and sections 185N to 185R inserted
185NRequirements for financial institution
185OApplication of Common Reporting Standard
185PRequirements for persons to provide information to financial institution
185QRequirements and penalties for entities that are not persons
185RForeign account information-sharing agreements: anti-avoidance
29New sections 226D and 226E inserted
226DReportable jurisdictions for CRS standard and Part 11B
226EApplication of changes to CRS standard
30New schedule 2 inserted (Application of CRS standard)
31Income Tax Act 2007 amended
32Section LA 6 amended (Remaining refundable credits: PAYE, RWT, and certain other items)
33Section RA 14 amended (Payment dates for provisional tax)
34Section RC 1 amended (What this subpart does)
35Section RC 5 amended (Methods for calculating provisional tax liability)
36New section RC 7B inserted (AIM method)
RC 7BAIM method
37Section RC 9 amended (Provisional tax payable in instalments)
38Table R1 amended (Summary of instalment dates and calculation methods for provisional tax)
39New section RC 10B inserted (Calculating amount of instalment for periods using AIM method)
RC 10BCalculating amount of instalment for periods using AIM method
40Section RC 24 amended (Calculating instalments in transitional years: GST ratio method)
41New section RM 6B inserted (Refunds for overpaid AIM method instalments)
RM 6BRefunds for overpaid AIM method instalments
42RM 13 amended (Limits on refunds for ICA companies)
43Section RP 17 amended (Tax pooling intermediaries)
44Section RP 17B amended (Tax pooling accounts and their use)
45Section RP 19B amended (Transfers for certain expected tax liabilities)
46Section YA 1 amended (Definitions)
47Schedule 3 amended (Payment of provisional tax and terminal tax)
48Tax Administration Act 1994 amended
49Section 3 amended (Interpretation)
50New heading and sections 15U to 15Z inserted
15UApproval of approved AIM providers
15VRevocation of approval of AIM providers: Commissioner
15WRevocation of approval of AIM providers: provider
15XPublication of approval, revocation, etc
15YAIM method: approval of large business AIM-capable system
15ZAIM method: approval of person over $5,000,000
51New sections 45 and 45B inserted
45AIM method information: taxpayers
45BAIM method information: approved AIM providers
52New heading and sections 91AAX to 91AAZ inserted
91AAXAccounting and rate determinations relating to AIM method
91AAYClass of taxpayers that must not use AIM method
91AAZAIM method information
53Section 119 amended (Commissioner may determine amount of provisional tax)
54New section 120KBC inserted (Interest for AIM method provisional taxpayers)
120KBCInterest for AIM method provisional taxpayers
55Section 120KC amended (Residual income tax of new provisional taxpayer)
56Section 120KE amended (Provisional tax and rules on use of money interest)
57New section 120LB inserted (Meaning of unpaid tax and overpaid tax for tax credit transferees under AIM method)
120LBMeaning of unpaid tax and overpaid tax for tax credit transferees under AIM method
58New section 120VB inserted (Interest on overpaid AIM method provisional tax)
120VBInterest on overpaid AIM method provisional tax
59Section 141 amended (Tax shortfalls)
60Section 141B amended (Unacceptable tax position)
61Income Tax Act 2007 amended
62Section CB 6A amended (Disposal within 2 years: bright-line test for residential land)
63Section CB 15B amended (When land acquired)
64Section CB 15B amended (When land acquired)
65Section CD 32 amended (Employee benefits)
66Section CE 2 amended (Value and timing of benefits under share purchase agreements)
67Section CX 6 amended (Private use of motor vehicle)
68Section CX 17 amended (Benefits provided to employees who are shareholders or investors)
69Section DB 7 amended (Interest: most companies need no nexus with income)
70Section DB 8 amended (Interest: money borrowed to acquire shares in group companies)
71New section DB 18AA inserted (Square metre rate method)
DB 18AASquare metre rate method
72Section DE 1 amended (What this subpart does)
73Section DE 2 amended (Deductions for business use)
74New section DE 2B inserted (Election to use kilometre rate method or costs method)
DE 2BElection to use kilometre rate method or costs method
75Section DE 3 amended (Methods for calculating proportion of business use)
76Section DE 4 amended (Default method for calculating proportion of business use)
77Heading and section DE 12 replaced
DE 12Kilometre rate method
78Section DF 4 amended (Payments for social rehabilitation)
79Section EA 4 amended (Deferred payment of employment income)
80Section EE 49 amended (Amount of depreciation recovery income when item partly used for business)
81Section HD 3 amended (Agent’s duties and liabilities)
82Section LB 7 amended (Tax credits related to personal service rehabilitation payments: providers)
83Section LB 8 amended (Tax credits related to personal service rehabilitation payments: payers)
84Section MD 9 amended (Fifth requirement: full-time earner)
85Table R1 amended (Summary of instalment dates and calculation methods for provisional tax)
86Section RD 3 amended (PAYE income payments)
87Section RD 6 amended (Certain benefits and payments)
88Section RD 7B amended (Treatment of certain benefits under employee share agreements)
89Section RD 8 amended (Schedular payments)
90Section RD 10 amended (Amounts of tax for PAYE income payments)
91New section RD 10B inserted (Amounts of tax for schedular payments)
RD 10BAmounts of tax for schedular payments
92Section RD 18 repealed (Schedular payments without notification)
93Section RD 60 amended (Close company option)
94Section RD 61 amended (Small business option)
95Section RL 1 amended (Residential land withholding tax)
96Section RL 2 amended (Vendors: who must pay, and how?)
97Section RL 4 amended (How much RLWT?)
98Section YA 1 amended (Definitions)
99Schedule 4 amended (Rates of tax for schedular payments)
100Tax Administration Act 1994 amended
101Section 3 amended (Interpretation)
102Section 24G amended (Use of incorrect tax codes)
103Section 24L amended (Schedular notification)
104New sections 24LB and 24LC inserted
24LBSchedular tax rate elected by payee
24LCSchedular tax rate prescribed by Commissioner
105Section 24M amended (Exemption certificates for schedular payments)
106Section 32H amended (Providing RWT exemption certificate when person meets requirements)
107Section 32I amended (Providing RWT exemption certificate to person who does not meet requirements)
108Section 35 amended (Power of Commissioner to prescribe forms)
109Section 54E amended (RLWT certificate of exemption)
110Section 81 amended (Officers to maintain secrecy)
111New sections 85M and 85N inserted
85MDisclosure of information relating to some offences to the Registrar of Companies
85NDisclosure of information to approved credit reporting agencies
112Section 113A amended (Correction of minor errors in subsequent returns)
113Section 120C amended (Definitions)
114Section 120KB amended (Provisional tax instalments and due dates generally)
115New section 120KBB inserted (Interest for most standard method and some estimation method provisional taxpayers)
120KBBInterest for most standard method and some estimation method provisional taxpayers
116Section 120KE amended (Provisional tax and rules on use of money interest)
117New section 120VC inserted (Interest on some provisional tax)
120VCInterest on some provisional tax
118Section 138E amended (Certain rights of challenge not conferred)
119Section 139B amended (Late payment penalty)
120Section 139B amended (Late payment penalty)
121Section 139BA amended (Imposition of late payment penalties when financial relief sought)
122Section 139C amended (Late payment penalty and provisional tax)
123Section 142A amended (New due date for payment of tax that is not a penalty)
124Section 142B amended (Due date for shortfall penalties)
125Section 173L amended (Transfer of excess tax within taxpayer’s accounts)
126Section 173M amended (Transfer of excess tax to another taxpayer)
127Section 173S amended (Transfers of interest on overpaid tax)
128Section 183C amended (Cancellation of interest)
129New section 227B (Regulations providing for transitional exemptions and other matters)
227BRegulations providing for transitional exemptions and other matters
130Student Loan Scheme Act 2011 amended
131Section 25 amended (Commissioner may treat certain borrowers as being physically in New Zealand)
132Section 27E amended (Commissioner may remove entity’s listing as charity)
133Schedule 1 amended (Conditions to borrower being treated as being physically in New Zealand)
1Definitions
9ACondition to government-funded full-time overseas study application
9BCondition to government-funded overseas internship application
Legislative history
Administrative information

The Parliament of New Zealand enacts as follows: