Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Bill

  • enacted

Hon Todd McClay

Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Bill

Government Bill

7—3

Contents

Key
1Title
2Commencement
3Child Support Act 1991 amended
4Section 2 amended (Interpretation)
5Section 3A amended (Transitional and savings provisions relating to amendments to this Act)
6Section 4A amended (Overview of child support payable under formula assessment)
7Section 8 amended (Who may apply for formula assessment)
8Section 13 amended (Notification by Commissioner of application)
9New section 13A inserted (Cases where formula assessment to be refused)
13ACases where formula assessment to be refused
10Section 25 amended (When liability to pay child support ceases)
11Section 27 replaced (Election by receiving carer to end formula assessment)
27Election by receiving carer to end formula assessment
12Section 32 amended (Minimum annual rate of child support)
13Section 34 amended (Child support income amount)
14Section 35 amended (Adjusted taxable income)
15Section 35A amended (Living allowance)
16Section 39A amended (Commissioner may take overseas income into account)
17Section 40AA amended (Interpretation for purposes of sections 40 to 45)
18Section 40 amended (Estimated taxable income)
19Section 41 amended (Effect of election)
20Section 42 amended (Revocation of election and subsequent elections)
21Section 44 amended (End-of-year reconciliation)
22Section 44A amended (Determining income amount if no tax return filed)
23Section 45 repealed (Penalty if estimated income less than 80% of actual income)
24Section 51 amended (Exception in respect of child support voluntary agreement where formula assessment in force)
25Section 88 amended (Notice of assessment of formula assessment of child support)
26Section 88A amended (Details in notices of assessments)
27Section 89L amended (Application for determination)
28Section 90 amended (Objections to appealable decisions)
29Section 91 amended (Objections to assessments)
30Section 96C amended (Matters as to which Commissioner must be satisfied before making determination)
31Section 96D amended (Determinations that may be made)
32Section 96X amended (Commissioner to notify receiving carers and liable parent who is not subject parent)
33Section 96Y amended (Election by receiving carer or by liable parent who is not subject parent to become party or discontinue proceedings)
34Section 96Z amended (Written representations by parties)
35Section 96ZA amended (Procedure for making determination)
36Section 98 amended (Minimum liability in respect of child support)
37Section 99 amended (Declarations in respect of step-parents)
38Section 102 amended (Appeals against decisions of Commissioner)
39Section 103 amended (Appeals against assessments)
40Section 105 amended (Matters as to which court must be satisfied before making order)
41New sections 106A and 106B inserted
106AFurther provision on orders for re-establishment costs situations if income increases
106BFurther provision on orders for offsetting of liabilities situations
42Section 107 amended (Implementation of orders)
43Section 129 replaced (Right to choose payment method)
129Right to choose voluntary automatic deductions or other payment method
44Section 130 amended (Defaulters to pay child support by automatic deduction)
44ASection 135G amended (Discretionary relief for residual incremental penalty debt)
44BSection 135GA amended (Discretionary relief for residual penalty-only debt)
44CNew section 135JA inserted (Relief from incremental penalties unpaid before deduction plan made on or after 1 April 2016)
135JARelief from incremental penalties unpaid before deduction plan made on or after 1 April 2016
44DSection 135L amended (Writing-off of incremental penalties if non-compliance with arrangement)
44ESection 152B amended (Offsetting child support payments)
45Section 154 amended (Deduction notice)
46Section 158 amended (Life of deduction notices)
47Section 180 amended (Payee may uplift financial support debt)
48Section 240 amended (Secrecy)
49Section 276 amended (Transitional and savings provisions relating to amendments to Act)
50Schedule 1 amended
51Child Support Amendment Act 2013 amended
52Section 2 amended (Commencement)
53Section 37 and cross-heading above section 37 repealed
54Section 38 and cross-heading above section 38 repealed
55Section 43 amended (New section 135FA inserted)
56Section 44 amended (Discretionary relief for residual incremental penalty debt)
57Section 45 amended (New section 135GA inserted)
58Section 57 repealed (New section 152B inserted)
59Section 58 and cross-heading above section 58 repealed
60Section 59 amended (Payee may uplift financial support debt)
61Section 60 amended (New sections 180A to 180C inserted)
180DSections 180B and 180C to cover child support penalties
62Section 61 repealed (Direct payment to payee)
63Section 62 replaced (New section 276 substituted)
62Section 276 amended
64Section 63 amended (Schedule 1 amended)
11Insertion of sections 180A and 180C (Writing off of child support debt)
64ASection 70A of Social Security Act 1964 amended (Rates of benefits for sole parents may be reduced)
65Annual rates of income tax for 2015–16 tax year
66Income Tax Act 2007
67Section CD 18 amended (Dividend reduced if foreign tax paid on company’s income)
68Section CD 39 amended (Calculation of amount of dividend when property made available)
69Section CD 44 amended (Available capital distribution amount)
69BSection CE 1C amended (Exception: overseas accommodation)
70Section CE 1E amended (Exception: accommodation provided to ministers of religion)
71Section CF 3 amended (Withdrawals from foreign superannuation scheme)
72Section CG 7B amended (Disposals or applications after earlier deductions)
73New section CG 7C inserted (Disposal or rerecognition of derecognised non-depreciable assets)
CG 7CDisposal or rerecognition of derecognised non-depreciable assets
74Section CQ 2 amended (When attributed CFC income arises)
75Section CQ 5 amended (When FIF income arises)
75BSection CW 16B amended (Accommodation expenditure: out-of-town secondments and projects)
75CSection CW 42 amended (Charities: business income)
75DSection CW 42B amended (Community housing trusts and companies)
76Section CW 55BA replaced (Tertiary education institutions)
CW 55BATertiary education institutions and subsidiaries
77Section CX 48 repealed (Amounts remitted as condition of new start grant)
78Section CX 56C amended (Distributions to investors by listed PIEs)
79Section CZ 10 repealed (Transitional relief for calculation of attributed repatriation dividends: 2 July 1992)
79BSection CZ 27 amended (Prior bad debt deductions clawback)
80Section CZ 29 amended (Accommodation expenditure: Canterbury earthquake relief)
81New section CZ 33 inserted (Transitional exception for accommodation provided to ministers of religion)
CZ 33Transitional exception for accommodation provided to ministers of religion
82Section DA 5 repealed (Treatment of expenditure for commercial fit-out)
83New section DB 22B inserted (Amounts paid for commercial fit-out for building)
DB 22BAmounts paid for commercial fit-out for building
84Section DB 31 amended (Bad debts)
85Section DB 34 amended (Research or development)
86Section DB 35 amended (Some definitions)
87Section DB 37 amended (Expenses in application for patent)
87BSection DB 40B amended (Expenditure in unsuccessful development of software)
88Section DF 1 amended (Government grants to businesses)
89Section DG 4 amended (Meaning of private use for this subpart)
90Section DG 9 amended (Apportionment formula)
91Section DG 11 amended (Interest expenditure: close companies)
92Section DG 12 amended (Interest expenditure: group companies)
93Section DG 13 amended (Interest expenditure: corporate shareholders)
94Section DG 14 amended (Interest expenditure: non-corporate shareholders)
95Section DG 16 amended (Quarantined expenditure when asset activity negative)
96Section DN 6 amended (When FIF loss arises)
97Section DT 3 replaced (Acquisition of privileges and permits)
DT 3Acquisition of privileges and permits
98Section DT 8 replaced (Acquisition of certain petroleum mining assets)
DT 8Acquisition of certain petroleum mining assets
99New heading and section DV 26 inserted (Deduction for reinstatement of R&D tax losses)
DV 26Deduction for reinstatement of R&D tax losses
100Section DZ 4 amended (Expenditure on abandoned exploratory well before 16 December 1991)
101Section DZ 5 amended (Farm-out arrangements for petroleum mining before 16 December 1991)
102Section EC 31 amended (Enhanced production)
103Section EC 41 amended (Reduction: bloodstock not previously used for breeding in New Zealand other than as shuttle stallions)
104Section EE 16 amended (Amount resulting from standard calculation)
105New section EE 18B inserted (Cost: some depreciable intangible property)
EE 18BCost: some depreciable intangible property
106Section EE 18B amended (Cost: some depreciable intangible property)
107Section EE 19 amended (Cost: fixed life intangible property)
108Section EE 32 amended (Election in relation to certain depreciable property acquired on or after 1 April 2005)
109Section EE 33 amended (Annual rate for fixed life intangible property)
110Section EE 34 amended (Annual rate for patent granted in 2005–06 or later income year)
111New section EE 34B inserted (Annual rate for design registrations)
EE 34BAnnual rate for design registrations
112Section EE 44 amended (Application of sections EE 48 to EE 52)
113Section EE 57 amended (Base value in section EE 56 when none of sections EE 58, EE 59, and EZ 22(1) applies)
114Section EE 60 amended (Total deductions in section EE 56)
115Section EE 61 amended (Meaning of annual rate)
116Section EE 67 amended (Other definitions)
118Section EM 1 amended (Australian non-attributing shares and attributing FDR method interests)
119Section EM 6 amended (Income and expenditure for fair dividend rate hedge portions)
120Section EW 9 amended (Persons to whom financial arrangements rules apply)
121Section EW 15D amended (IFRS financial reporting method)
121BSection EW 15G amended (Modified fair value method)
122Section EW 33C amended (Consideration in foreign currency: some agreements for sale and purchase)
123Section EW 46 repealed (Consideration when debtor released as condition of new start grant)
124Section EX 16 amended (Income interests for certain purposes)
125Section EX 20B amended (Attributable CFC amount)
126Section EX 20C amended (Net attributable CFC income or loss)
127Section EX 21 amended (Attributable CFC amount and net attributable CFC income or loss: calculation rules)
128Section EX 21D amended (Non-attributing active CFC: default test)
129Section EX 21E amended (Non-attributing active CFC: test based on accounting standard)
130Section EX 24 amended (Companies moving to or from New Zealand)
131Section EX 25 amended (Change of CFC’s balance date)
132Section EX 31 amended (Exemption for ASX-listed Australian companies)
133New section EX 33 inserted (Exemption for Australian regulated superannuation savings)
EX 33Exemption for Australian regulated superannuation savings
134Section EX 35 amended (Exemption for interest in FIF resident in Australia)
135Section EX 44 amended (Five calculation methods)
136Section EX 50 amended (Attributable FIF income method)
137New section EX 52A inserted (Fair dividend rate method: use of different forms)
EX 52AFair dividend rate method: use of different forms
138Section EX 52 amended (Fair dividend rate method: usual method)
139Section EX 53 amended (Fair dividend rate method for unit-valuing funds and others by choice)
140Section EX 58 amended (Additional FIF income or loss if CFC owns FIF)
141Section EX 62 amended (Limits on changes of method)
142Section EX 63 amended (Consequences of changes in method)
143Section EX 72 amended (Commissioner’s default assessment power)
144Section EZ 5 amended (Reduction: bloodstock not previously used for breeding in New Zealand: pre-1 August 2006)
145New section EZ 32G inserted (Person deriving pension from foreign superannuation scheme and returning as income before 1 April 2014)
EZ 32GPerson deriving pension from foreign superannuation scheme and returning as income before 1 April 2014
146New section EZ 69B inserted (IFRS financial reporting method: equity or other comprehensive income)
EZ 69BIFRS financial reporting method: equity or other comprehensive income
147Section EZ 70 amended (Insurance for Canterbury earthquake damage of property: deemed sale and purchase)
148Section EZ 76 amended (Consideration for property or services: non-IFRS foreign ASAPs before 2014–15 income year)
149Section FB 1 replaced (What this subpart does)
FB 1When this subpart applies
149BNew section FB 1B inserted (Meaning of settlement of relationship property)
FB 1BMeaning of settlement of relationship property
149CSection FB 1B replaced (Meaning of settlement of relationship property)
FB 1BMeaning of settlement of relationship property and property
149DSection FB 1B amended (Meaning of settlement of relationship property and property)
149ENew section FB 1C inserted (Obligations for periods before and from transfer of property)
FB 1CObligations for periods before and from transfer of property
150Section FC 1 amended (What this subpart does)
151Section FC 4 replaced (Property transferred to charities or to close relatives and others)
FC 4Property transferred to charities or to close relatives and others
151BSection FC 4 amended (Property transferred to charities or to close relatives and others)
152Section FC 6 amended (Forestry assets transferred to close relatives)
153Section FE 1 amended (What this subpart does)
153BSection FE 2 amended (When this subpart applies)
154Section FE 4 amended (Some definitions)
155Section FE 12 amended (Calculation of debt percentages)
156Section FE 18 amended (Measurement of debts and assets of worldwide group)
157Section FE 28 amended (Identifying members of New Zealand group)
158Section FE 31D replaced (Worldwide group for entity with New Zealand parent depending on non-resident owning body)
FE 31DWorldwide group for entity controlled by non-resident owning body or trustee
159Section FO 12 amended (Financial arrangements: resident’s restricted amalgamation, companies in wholly-owned group)
160Section FO 13 amended (Financial arrangements: resident’s restricted amalgamation, calculation method unchanged)
161Section GB 8 repealed (Arrangements involving attributed repatriation from CFCs)
162Section GB 9 amended (Temporary disposals of direct control or income interests) 
163Section GB 11 amended (Temporary increases in totals for control interest categories)
164Section GB 13 amended (When combination of changes reduces income)
165New section GB 15BA inserted (CFC income or loss: arrangements for inclusion of CFC in test group)
GB 15BACFC income or loss: arrangements for inclusion of CFC in test group
166Section GB 27 amended (Attribution rule for income from personal services)
167Section HC 10 amended (Complying trusts)
168Section HC 27 amended (Who is a settlor?)
169Section HC 29 amended (Settlors’ liability to income tax)
170Section HC 33 amended (Choosing to satisfy income tax liability of trustee)
171Section HG 10 amended (Disposal of livestock)
172Section HM 42 amended (Exit calculation option)
173Section HM 43 amended (Quarterly calculation option)
174Section HM 44 amended (Provisional tax calculation option)
175Section HR 3 amended (Definitions for section HR 2: group investment funds)
176Section HR 8 amended (Transitional residents)
177Section HZ 4B amended (Qualifying companies: transition into partnership)
178Section HZ 4D amended (Qualifying companies: transition into sole traderships)
179Section IQ 1A amended (When this subpart applies)
180Section LA 7 amended (Remaining refundable credits: tax credits under social policy schemes)
181New section LB 4B inserted (Tax credit for R&D tax losses)
LB 4BTax credit for R&D tax losses
182Section LD 1 amended (Tax credits for charitable or other public benefit gifts)
183Section LD 3 amended (Meaning of charitable or other public benefit gift)
184Subpart LH repealed (Tax credits for expenditure on research and development)
185Heading after section LP 6 deleted (Supplementary dividend holding companies)
186Section LU 1 amended (Tax credits for mineral miners)
187Section MA 1 amended (What this Part does)
188Section MB 1 amended (Adjustments for calculation of family scheme income)
188BSection MB 4 amended (Family scheme income of major shareholders in close companies)
188CSection MB 7 amended (Family scheme income of settlor of trust)
188DSection MB 9 repealed (Family scheme income from deposits in main income equalisation accounts)
189Section MB 13 amended (Family scheme income from other payments)
190Section MC 5 amended (Third requirement: residence)
191Section MF 6 amended (Overpayment or underpayment of tax credit)
192New subpart MX inserted (Tax credits for R&D tax losses)
MX 1When subpart applies
MX 2Corporate eligibility criteria
MX 3Wage intensity criteria
MX 4R&D loss tax credits
MX 5Cancellation of R&D tax losses
MX 5BDeduction if increase in basic tax rate for company
MX 6Reinstatement of R&D tax losses and R&D repayment tax
193Section OB 1 amended (General rules for companies with imputation credit accounts)
194New section OB 47B inserted (Tax paid by recipients of R&D loss tax credits)
OB 47BTax paid by recipients of R&D loss tax credits
195Table O2 amended (Imputation debits)
196Section OP 27 amended (Consolidated ICA payment of schedular income tax)
197Section OP 50 amended (Consolidated ICA refund of schedular income tax)
198Table O19 amended (Imputation credits of consolidated imputation groups)
198BTable O20 amended (Imputation debits of consolidated imputation groups)
199Section RC 7 amended (Estimation method)
200Section RC 17 amended (When GST ratio must not be used)
201Section RC 18 amended (Changing calculation method)
202Section RD 27 amended (Determining fringe benefit values)
203Section RD 35 amended (Employment-related loans: value using market interest rates)
204Section RE 18B amended (Capital value increase under inflation-indexed instruments: RWT cap)
205Section RF 2 amended (Non-resident passive income)
206Section RM 10 amended (Using refund to satisfy tax liability)
207Section RP 17 amended (Tax pooling intermediaries)
208Section RP 17B amended (Tax pooling accounts and their use)
209Section RP 19 amended (Transfers from tax pooling accounts)
210Section RP 19B amended (Transfers for certain expected tax liabilities)
211New cross-heading inserted (Refunds for life insurers)
212New cross-heading (Tax pooling intermediaries) and section RZ 12 inserted (Adjustments to interest in requests made after commencement)
RZ 12Adjustments to interest in requests made after commencement
213Section YA 1 amended (Definitions)
214Section YC 10 amended (Shareholders holding less than 10% direct interests)
215Schedule 6 amended (Prescribed rates: PIE investments and retirement scheme contributions)
216Schedule 14 amended (Depreciable intangible property)
217New schedule 22 inserted (Proscribed R&D activities)
218Schedule 32 amended (Recipients of charitable or other public benefit gifts)
218BNew schedule 34 inserted (Community housing trusts and companies: income and assets of beneficiaries and clients)
219Amendments to certain sale-related terms and definitions
220Amendments to lists of defined terms
221Tax Administration Act 1994 amended
222Section 3 amended (Interpretation)
223Section 15E amended (Revocation of approval)
224Section 24O repealed (Certain information required from agricultural, horticultural, or viticultural employers)
225Section 33AA amended (Exceptions to requirement for return of income)
226Section 33A amended (Annual returns of income not required)
227Section 41 amended (Annual returns by persons who receive family assistance credit)
229Sections 68D, 68E, and 68F repealed
230New section 70C inserted (Statements in relation to R&D loss tax credits and R&D repayment tax)
70CStatements in relation to R&D loss tax credits and R&D repayment tax
231Section 80D amended (Commissioner must issue income statement)
232Section 80KV replaced (Statement of family scheme income)
80KVStatement of family scheme income
232BSection 81 amended (Officers to maintain secrecy)
233Section 81A amended (Disclosure of information under approved information sharing agreement)
234Section 89AB amended (Response periods)
235New section 89AC inserted (Response period when initiating notice filed late)
89ACResponse period when initiating notice filed late
236Section 89M amended (Disclosure notices)
237Section 92AAA repealed (Determination on cost of timber)
238New section 97C inserted (Assessment of R&D repayment tax)
97CAssessment of R&D repayment tax
239Section 113C repealed (Amended assessments for attributed repatriation dividends)
240Section 120B amended (Persons excluded)
241Section 138G amended (Effect of disclosure notice)
242Section 139AA amended (Non-electronic filing penalty)
243Section 139B amended (Late payment penalty)
244Section 141A amended (Not taking reasonable care)
245Section 177D repealed (Relief to taxpayers to whom new start grants payable)
246Section 183ABA amended (Remission in circumstances of emergency event)
247Section 185 amended (Payment out of Crown Bank Account)
247BSection 225D amended (Regulations: community housing trusts and companies)
248Goods and Services Tax Act 1985 amended
249Section 2 amended (Interpretation)
250Section 5 amended (Meaning of term supply)
251Section 10 amended (Value of supply of goods and services)
251BASection 20 amended (Calculation of tax payable)
251BSection 21B amended (Adjustments when person or partnership becomes registered after acquiring goods and services)
251CSection 21HB amended (Transitional rules relating related to treatment of dwellings)
251DNew section 21HC inserted (Transitional rules relating to members of unit title bodies corporate)
21HCTransitional rules relating to members of unit title bodies corporate
252Section 48A repealed (Relief from tax where new start grant made)
253Section 51 amended (Persons making supplies in course of taxable activity to be registered)
254Section 52 amended (Cancellation of registration)
255Income Tax Act 2004 amended
256New section CF 4 inserted (Person deriving pension from foreign superannuation scheme and returning as income before 1 April 2014)
CF 4Person deriving pension from foreign superannuation scheme and returning as income before 1 April 2014
257Section DB 23 amended (Bad debts)
257BSection HH 4 amended (Trustee income)
258Section NG 1 amended (Application of NRWT rules)
258BSection OB 1 amended (Definitions)
259Income Tax Act 1994 amended
260New section CC 5 inserted (Person deriving pension from foreign superannuation scheme and returning as income before 1 April 2014)
CC 5Person deriving pension from foreign superannuation scheme and returning as income before 1 April 2014
260BSection HH 4 amended (Trustee income)
261Section NG 1 amended (Application of NRWT rules)
261BSection OB 1 amended (Definitions)
261CIncome Tax Act 1976 amended
261DSection 226 amended (Interpretation)
261ESection 228 amended (Trustee income)
262Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 amended
263Section 2 amended (Commencement)
263BSection 32 amended (New section CW 42B inserted)
264Section 129 amended (New section HR 12 inserted)
265Section 144 amended (Section YA 1 amended)
265BSection 104 amended (Schedule 20 amended (Expenditure on farming, horticultural, aquacultural, and forestry improvements))
266Section 3 of the Finance Act (No 2) 1990 amended (Meaning of approved unit trust)
267Schedule to Goods and Services Tax (Grants and Subsidies) Order 1992 amended (Non-taxable grants and subsidies)
Legislative history

The Parliament of New Zealand enacts as follows: