Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019

Reprint as at 31 March 2020

Coat of Arms of New Zealand

Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019

Public Act
 
2019 No 33
Date of assent
 
26 June 2019
Commencement
 
see section 2
Note

Changes authorised by subpart 2 of Part 2 of the Legislation Act 2012 have been made in this official reprint.

Note 4 at the end of this reprint provides a list of the amendments incorporated.

This Act is administered by the Inland Revenue Department.

Contents

1Title
2Commencement
Part 1
Annual rates of income tax
3Annual rates of income tax for 2019–20 tax year
Part 2
Amendments to Goods and Services Tax Act 1985
4Goods and Services Tax Act 1985
5Section 2 amended (Interpretation)
6Section 2A amended (Meaning of associated persons)
7New section 4B inserted (Meaning of distantly taxable goods)
4BMeaning of distantly taxable goods
8Section 5 amended (Meaning of term supply)
9Section 5B amended (Supply of certain imported services)
10Section 8 amended (Imposition of goods and services tax on supply)
11Section 8B amended (Remote services: determining residence and status of recipients)
12New section 8BB inserted (Certain supplies by non-residents: determining whether recipient is registered person)
8BBCertain supplies by non-residents: determining whether recipient is registered person
13Section 10 amended (Value of supply of goods and services)
14New sections 10B and 10C inserted
10BEstimating value of goods in supply for treatment as distantly taxable goods
10CElection by supplier that supplies of higher-value goods be supplies of distantly taxable goods
15Section 11 amended (Zero-rating of goods)
16Section 11A amended (Zero-rating of services)
17Section 12 amended (Imposition of goods and services tax on imports)
18New section 12B inserted (Reimbursement of tax by supplier if recipient charged tax on both supply and importation)
12BReimbursement of tax by supplier if recipient charged tax on both supply and importation
19Section 14 amended (Exempt supplies)
20Section 15 amended (Taxable periods)
21Section 20 amended (Calculation of tax payable)
22Section 20G amended (Treatment of supplies of certain assets)
23Section 20H amended (Goods and services tax incurred in making financial services for raising funds)
24Section 21HB amended (Transitional rules related to treatment of dwellings)
25Section 24 amended (Tax invoices)
26New sections 24BAB and 24BAC inserted
24BABReceipts for supplies
24BACInformation for importation of goods including distantly taxable goods
27Section 24B amended (Records to be kept by recipient of imported services)
28Section 25 amended (Credit and debit notes)
29Section 25AA amended (Consequences of change in contract for imported services)
30Section 25A amended (Commissioner may approve use of symbols, etc, on electronically transmitted invoices and credit and debit notes)
31Section 26 amended (Bad debts)
32New section 26AA inserted (Marketplace operators: bad debts for amounts of tax)
26AAMarketplace operators: bad debts for amounts of tax
33Section 51 amended (Persons making supplies in course of taxable activity to be registered)
34Section 51B amended (Persons treated as registered)
35Section 56B amended (Branches and divisions in relation to certain imported services)
36Section 60 amended (Agents and auctioneers)
37Section 60C amended (Electronic marketplaces)
38Section 60D amended (Approved marketplaces)
39New sections 60E, 60F, and 60G inserted
60EWhen redeliverer is supplier of distantly taxable goods
60FOperator of marketplace or redeliverer making return based on faulty information
60GRequirements for treatment of information by operator of marketplace or redeliverer
40Section 75 amended (Keeping of records)
41Section 77 amended (New Zealand or foreign currency)
42New section 85C inserted (Certain contracts entered into before 1 December 2019)
85CCertain contracts entered into before 1 December 2019
Part 3
Amendments to other enactments
Amendments to Income Tax Act 2007
43Income Tax Act 2007 amended
44Section CB 16A amended (Main home exclusion for disposal within 5 years)
45Section CG 5B amended (Receipts from insurance, indemnity, or compensation for interruption or impairment of business activities)
46Section CV 9 repealed (Supplementary dividend holding companies)
47Section CW 33 amended (Allowances and benefits)
48Section CW 35 amended (Personal service rehabilitation payments)
49Heading after section CX 53 amended (Share-lending arrangements)
50New section CX 54B inserted (Transfers of emissions units under certain excepted financial arrangements)
CX 54BTransfers of emissions units under certain excepted financial arrangements
51Section CW 57 amended (Non-resident company involved in exploration and development activities)
52Section CX 60 amended (Intra-group transactions)
53Section CZ 35 repealed (Treatment of backdated payments for social rehabilitation: 2008–09 to 2017–18 income years)
54New section CZ 36 inserted (Treatment of backdated payments for social rehabilitation: 2008–09 to 2017–18 income years)
CZ 36Treatment of backdated payments for social rehabilitation: 2008–09 to 2017–18 income years
55Heading after section DB 15 amended (Share-lending arrangements)
56New section DB 17B inserted (Transfers of emissions units under certain excepted financial arrangements)
DB 17BTransfers of emissions units under certain excepted financial arrangements
57Section DB 18A repealed (Ring-fenced allocations: disposal of residential land within 5 years)
58Section DB 18AB repealed (Deduction cap: disposal of residential land within 5 years to associated persons)
59Section DE 4 amended (Default method for calculating proportion of business use)
60Section DV 18 amended (Statutory producer boards and co-operative companies)
61Section EH 1 amended (Income equalisation schemes)
62New subpart EL (Allocation of deductions for excess residential land expenditure)
Subpart EL—Allocation of deductions for excess residential land expenditure
Introductory provisions
EL 1Outline of subpart: general
EL 2Outline of subpart: specific provisions
EL 3Definitions for this subpart
Allocation rules for residential rental property
EL 4Allocation of deductions for loss-making residential rental properties
EL 5When residential portfolios sold
EL 6Choosing to apply rules on property-by-property basis
EL 7When property A sold
EL 8Treatment of previously transferred amounts on fully-taxed disposals
Exclusions from rules
EL 9Main home exclusion
EL 10Exclusion for land held on revenue account
EL 11Exclusion for property held by certain persons and entities
EL 12Exclusion for mixed-use assets
EL 13Exclusion for property provided as employee accommodation
Application of rules by certain entities
EL 14Continuity rules for companies
EL 15Transfers between companies in wholly-owned groups
Interposed entities
EL 16Interests in residential land-rich entities
EL 17Calculations for section EL 16
EL 18Modifications when entities transparent
EL 19Valuation of assets
Allocation rules for bright-line disposals of land
EL 20Allocation of deductions related to bright-line disposals of residential land
63Section EW 5 amended (What is an excepted financial arrangement?)
64New section EW 52B inserted (Excepted financial arrangements involving pre-1990 forest land emissions units)
EW 52BExcepted financial arrangements involving pre-1990 forest land emissions units
65Section EY 30 amended (Transitional adjustments: life risk)
66Section FE 4 amended (Some definitions)
67Section HC 27 amended (Who is a settlor?)
68Section LB 7 amended (Tax credits related to person service rehabilitation payments: providers)
69New section MB 12B inserted (Family scheme income from trusts, not being beneficiary income, and where recipient not settlor)
MB 12BFamily scheme income from trusts, not being beneficiary income, and where recipient not settlor
70Section MB 13 amended (Family scheme income from other payments)
71New section OB 78B inserted (Co-operative companies attaching imputation credits to cash distributions to groups)
OB 78BCo-operative companies attaching imputation credits to cash distributions to groups
72Section OB 82 amended (When and how co-operative company makes election)
73Section OZ 15 amended (Attaching imputation credits and notional distributions: modifying amounts)
74Section RD 7B replaced (Treatment of certain benefits under employee share schemes)
RD 7BTreatment of employee share schemes
75Section RD 64 amended (ESCT rules and their application)
76Section RE 21 amended (Basis for payment of RWT)
77Section RF 2C amended (Meaning of non-resident financial arrangement income)
78Section RM 2 amended (Refunds for overpaid tax)
79Section YA 1 amended (Definitions)
80Minor nomenclature-related amendments to Income Tax Act 2007
Amendments to Tax Administration Act 1994
81Tax Administration Act 1994 amended
82Section 3 amended (Interpretation)
83New subpart heading inserted (Subpart 2A—Commissioner and department)
84New section 5B inserted (Commissioner of Inland Revenue)
5BCommissioner of Inland Revenue
85Sections 6, 6A, and 6B replaced
Subpart 2B—Care and management of tax system
Responsibilities and duties
6Responsibility of Ministers and officials to protect integrity of tax system
6ACommissioner’s duty of care and management
6BDirections to Commissioner
Remedial powers
6CPowers to modify provisions of Inland Revenue Acts
6DModifications made by Order in Council
6EExemptions granted by Commissioner
6FConsultation on proposed modifications and exemptions
6GMeaning of obvious error
86New subpart heading inserted (Subpart 2C—Functions and powers of Commissioner)
87New subpart heading inserted (Subpart 2D—Modes of communication)
88Section 16C amended (Key terms)
89Section 17 amended (Information to be furnished on request of Commissioner)
90Section 17D amended (Warrants)
91Section 17E amended (Information or documents treated as in persons’ knowledge, possession, or control)
92Section 22 amended (Keeping of business and other records)
93Section 22A amended (Records required under subpart EW of Income Tax Act 2007)
94Section 22B amended (Further records required)
95Section 23C amended (Meaning of employment income information)
96Section 23F amended (Non-electronic group of employers)
97Section 26 amended (Records to be kept for RWT purposes)
98Section 32E amended (Applications for RWT exemption certificates)
99Section 48B amended (Reconciliation statement for retirement scheme contribution withholding tax)
100Section 91CB amended (Binding rulings on certain matters)
101Section 91EB amended (Application of a private ruling)
102Section 143A amended (Knowledge offences)
103Section 143C amended (Offences related to disclosure of sensitive revenue information by revenue officers)
104Section 185O amended (Application of Common Reporting Standard)
105Schedule 2 amended (Application of CRS standard)
106Schedule 7 amended (Disclosure rules)
Amendments to Child Support Act 1991
107Child Support Act 1991 amended
108Section 89Y amended (Application for exemption on grounds relating to sex offence)
109Section 89Z amended (Grant of exemption to victim of sex offence)
110Section 89ZA amended (Exemption is void if conviction quashed or finding is reversed or set aside)
111Section 89ZB amended (Commissioner must give effect to exemption and may take changes into account)
112Section 152A amended (Relief in case of exemption granted to liable person)
113Schedule 1 amended (Application, transitional, and savings provisions relating to amendments to Act made on or after 1 April 2015)
Amendments to Student Loan Scheme Act 2011
114Student Loan Scheme Act 2011 amended
115Section 4 amended (Interpretation) [Repealed]
116Section 22 amended (Meaning of New Zealand-based)
117Section 23 amended (Meaning of overseas-based)
118Section 73 amended (Meaning of adjusted net income, Schedule 3 adjustments, and related terms) [Repealed]
119Cross-heading above section 134 replaced
Loan interest charged for all overseas-based borrowers
120Section 134 amended (Loan interest charged for all borrowers)
121Section 135 amended (Loan interest calculated daily and charged and compounded annually)
122Section 137 repealed (Full interest write-off for New Zealand-based borrowers)
123New section 202A inserted (Treatment of schedular payments) [Repealed]
124Schedule 2 amended (Application of PAYE rules for purposes of section 70) [Repealed]
125Schedule 3 amended (Adjustments to net income for purposes of section 73, applying from 1 April 2014 for 2014–2015 and later tax years)
Amendments to Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019
126Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019
127Section 2 amended (Commencement)
128Section 244 amended (Section OP 22 amended (Consolidated ICA group company’s credit))
Amendments to Search and Surveillance Act 2012
129Schedule to Search and Surveillance Act 2012 amended (Powers in other enactments to which all or part of Part 4 of Search and Surveillance Act 2012 applies)
Amendments to Land Transfer Act 2017
130Land Transfer Act 2017
131Section 77 amended (Interpretation)
132Section 79 amended (Content of tax statement)
133Schedule 1 amended (Transitional, savings, and related provisions)
Part 2
Provision relating to the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019
14Six-month transitional period for existing agreements
Schedule 1
Minor nomenclature-related amendments to Income Tax Act 2007
Reprint notes

The Parliament of New Zealand enacts as follows: