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

Hon Stuart Nash

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

Government Bill

114—3

Contents

Key
1Title
2Commencement
3Annual rates of income tax for 2019–20 tax year
4Goods and Services Tax Act 1985
5Section 2 amended (Interpretation)
5BSection 2A amended (Meaning of associated persons)
6New section 4B inserted (Meaning of distantly taxable goods)
4BMeaning of distantly taxable goods
7Section 5 amended (Meaning of term supply)
8Section 5B amended (Supply of certain imported services)
9Section 8 amended (Imposition of goods and services tax on supply)
10Section 8B amended (Remote services: determining residence and status of recipients)
11New 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
12Section 10 amended (Value of supply of goods and services)
13New 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
14Section 11 amended (Zero-rating of goods)
15Section 11A amended (Zero-rating of services)
16Section 12 amended (Imposition of goods and services tax on imports)
17New 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
17BSection 14 amended (Exempt supplies)
18Section 15 amended (Taxable periods)
19Section 20 amended (Calculation of tax payable)
20Section 20G amended (Treatment of supplies of certain assets)
21Section 20H amended (Goods and services tax incurred in making financial services for raising funds)
22Section 21HB amended (Transitional rules related to treatment of dwellings)
23Section 24 amended (Tax invoices)
24New sections 24BAB and 24BAC inserted
24BABReceipts for supplies
24BACInformation for importation of goods including distantly taxable goods
25Section 24B amended (Records to be kept by recipient of imported services)
26Section 25 amended (Credit and debit notes)
27Section 25AA amended (Consequences of change in contract for imported services)
28Section 25A amended (Commissioner may approve use of symbols, etc, on electronically transmitted invoices and credit and debit notes)
29Section 26 amended (Bad debts)
30New section 26AA inserted (Marketplace operators: bad debts for amounts of tax)
26AAMarketplace operators: bad debts for amounts of tax
31Section 51 amended (Persons making supplies in course of taxable activity to be registered)
32Section 51B amended (Persons treated as registered)
33Section 56B amended (Branches and divisions in relation to certain imported services)
34Section 60 amended (Agents and auctioneers)
35Section 60C amended (Electronic marketplaces)
36Section 60D amended (Approved marketplaces)
37New 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
38Section 75 amended (Keeping of records)
39Section 77 amended (New Zealand or foreign currency)
39BNew section 85C inserted (Certain contracts entered into before 1 December 2019)
85CCertain contracts entered into before 1 December 2019
40Income Tax Act 2007 amended
41Section CB 16A amended (Main home exclusion for disposal within 5 years)
41BSection CE 2 amended (Benefits under employee share schemes)
42Section CG 5B amended (Receipts from insurance, indemnity, or compensation for interruption or impairment of business activities)
43Section CV 9 repealed (Supplementary dividend holding companies)
43BSection CW 33 amended (Allowances and benefits)
43CSection CW 35 amended (Personal service rehabilitation payments)
44Heading after section CX 53 amended (Share-lending arrangements)
45New section CX 54B inserted (Transfers of emissions units under certain excepted financial arrangements)
CX 54BTransfers of emissions units under certain excepted financial arrangements
45BSection CW 57 amended (Non-resident company involved in exploration and development activities)
46Section CX 60 amended (Intra-group transactions)
46BSection CZ 35 repealed (Treatment of backdated payments for social rehabilitation: 2008–09 to 2017–18 income years)
46CNew 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
47Heading after section DB 15 amended (Share-lending arrangements)
48New section DB 17B inserted (Transfers of emissions units under certain excepted financial arrangements)
DB 17BTransfers of emissions units under certain excepted financial arrangements
48BSection DB 18A repealed (Ring-fenced allocations: disposal of residential land within 5 years)
48CSection DB 18AB repealed (Deduction cap: disposal of residential land within 5 years to associated persons)
50Section DE 4 amended (Default method for calculating proportion of business use)
51Section DV 18 amended (Statutory producer boards and co-operative companies)
51BSection EH 1 amended (Income equalisation schemes)
51CNew subpart EL (Allocation of deductions for excess residential land expenditure)
EL 1Outline of subpart: general
EL 2Outline of subpart: specific provisions
EL 3Definitions for this subpart
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
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
EL 14Continuity rules for companies
EL 15Transfers between companies in wholly-owned groups
EL 16Interests in residential land-rich entities
EL 17Calculations for section EL 16
EL 18Modifications when entities transparent
EL 19Valuation of assets
EL 20Allocation of deductions related to bright-line disposals of residential land
52Section EW 5 amended (What is an excepted financial arrangement?)
53New 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
54Section EY 30 amended (Transitional adjustments: life risk)
55Section FE 4 amended (Some definitions)
56Section HC 27 amended (Who is a settlor?)
56BSection LB 7 amended (Tax credits related to person service rehabilitation payments: providers)
57New 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
57BSection MB 13 amended (Family scheme income from other payments)
58New 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
59Section OB 82 amended (When and how co-operative company makes election)
60Section OZ 15 amended (Attaching imputation credits and notional distributions: modifying amounts)
61Section RD 7B replaced (Treatment of certain benefits under employee share agreements schemes)
RD 7BTreatment of employee share schemes
61BSection RD 64 amended (ESCT rules and their application)
62Section RE 21 amended (Basis for payment of RWT)
63Section RF 2B amended (Non-resident financial arrangement income: outline and concepts)
64Section RF 2C amended (Meaning of non-resident financial arrangement income)
64BSection RM 2 amended (Refunds for overpaid tax)
65Section YA 1 amended (Definitions)
66Minor nomenclature-related amendments to Income Tax Act 2007
67Tax Administration Act 1994 amended
67BSection 3 amended (Interpretation)
67CNew subpart heading inserted (Subpart 2A—Commissioner and department)
67DNew section 5B inserted (Commissioner of Inland Revenue)
5BCommissioner of Inland Revenue
67ESections 6, 6A, and 6B replaced
6Responsibility of Ministers and officials to protect integrity of tax system
6ACommissioner’s duty of care and management
6BDirections to Commissioner
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
67FNew subpart heading inserted (Subpart 2C—Functions and powers of Commissioner)
67GNew subpart heading inserted (Subpart 2D—Modes of communication)
67HSection 16C amended (Key terms)
67ISection 17 amended (Information to be furnished on request of Commissioner)
67JSection 17D amended (Warrants)
67KSection 17E amended (Information or documents treated as in persons’ knowledge, possession, or control)
68Section 22 amended (Keeping of business and other records)
69Section 22A amended (Records required under subpart EW of Income Tax Act 2007)
70Section 22B amended (Further records required)
70BSection 23C amended (Meaning of employment income information)
70CSection 23F amended (Non-electronic group of employers)
71Section 26 amended (Records to be kept for RWT purposes)
71BSection 32E amended (Applications for RWT exemption certificates)
71CSection 48B amended (Reconciliation statement for retirement scheme contribution withholding tax)
71DSection 91CB amended (Binding rulings on certain matters)
71ESection 91EB amended (Application of a private ruling)
72Section 143A amended (Knowledge offences)
72BSection 143C amended (Offences related to disclosure of sensitive revenue information by revenue officers)
73Section 185O amended (Application of Common Reporting Standard)
74Schedule 2 amended (Application of CRS standard)
74BSchedule 7 amended (Disclosure rules)
75Child Support Act 1991 amended
76Section 89Y amended (Application for exemption on grounds relating to sex offence)
77Section 89Z amended (Grant of exemption to victim of sex offence)
78Section 89ZA amended (Exemption is void if conviction quashed or finding is reversed or set aside)
79Section 89ZB amended (Commissioner must give effect to exemption and may take changes into account)
80Section 152A amended (Relief in case of exemption granted to liable person)
81Schedule 1 amended (Application, transitional, and savings provisions relating to amendments to Act made on or after 1 April 2015)
82Student Loan Scheme Act 2011 amended
83Section 4 amended (Interpretation)
84Section 22 amended (Meaning of New Zealand-based)
85Section 23 amended (Meaning of overseas-based)
86Section 73 amended (Meaning of adjusted net income, Schedule 3 adjustments, and related terms)
87Cross-heading above section 134 replaced
88Section 134 amended (Loan interest charged for all borrowers)
89Section 135 amended (Loan interest calculated daily and charged and compounded annually)
90Section 137 repealed (Full interest write-off for New Zealand-based borrowers)
91New section 202A inserted (Treatment of schedular payments)
202ATreatment of schedular payments
92Schedule 2 amended (Application of PAYE rules for purposes of section 70)
93Schedule 3 amended (Adjustments to net income for purposes of section 73, applying from 1 April 2014 for 2014–2015 and later tax years)
94Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019
95Section 2 amended (Commencement)
96Section 244 amended (Section OP 22 amended (Consolidated ICA group company’s credit))
97Schedule 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)
98Land Transfer Act 2017
99Section 77 amended (Interpretation)
100Section 79 amended (Content of tax statement)
101Schedule 1 amended (Transitional, savings, and related provisions)
14Six-month transitional period for existing agreements
Legislative history

The Parliament of New Zealand enacts as follows: