Taxation (KiwiSaver, Student Loans, and Remedial Matters) Bill

Hon Stuart Nash

Taxation (KiwiSaver, Student Loans, and Remedial Matters) Bill

Government Bill

158—1

Contents

Explanatory note
1Title
2Commencement
3KiwiSaver Act 2006
4Section 4 amended (Interpretation)
5Section 18 amended (Extension of opt-out period)
6Section 48 amended (Effect of employer choice of KiwiSaver scheme)
7Section 51 amended (Completion of allocation to default KiwiSaver scheme if person does not choose his or her own KiwiSaver scheme)
8Section 56 amended (Notification of transfers and requirement to transfer funds and information)
9Section 57 amended (Involuntary transfers)
10Section 59B amended (Initial back-dated validation)
11Section 59C amended (Confirmed back-dated validation)
12Section 59D amended (No confirmed backdated validation)
13New section 63B inserted (Information on salary or wages from which deductions are made)
63BInformation on salary or wages from which deductions are made
14Section 64 amended (Contribution rate)
15Section 69 replaced (Unremitted deductions made by employers)
69Unremitted deductions made by employers
16Section 71 amended (Time at which unexplained remittances deemed to be received)
17Section 73 amended (Deductions entered in and paid out of holding account)
18Section 74 amended (Other contributions entered in and paid out of holding account)
19Section 75 amended (Initial contributions stay in holding account for 3 months)
20Section 76 repealed (Employer contributions may stay in holding account until deducted contributions paid)
21Section 78 replaced (Treatment of unremitted deductions in holding account)
78Treatment of certain unremitted deductions and employer contributions in holding account
22Section 81 amended (Refund by provider of amounts paid in excess of required amount of contribution)
23Section 85 replaced (Time when contributions treated as received for interest purposes)
85Time when deductions and employer contributions treated as received for interest purposes
24Section 88 amended (How and when interest is paid on on-payments)
25Section 93 amended (Employer contributions paid via Commissioner)
26New sections 95B to 95D inserted
95BUnremitted employer contributions
95CUnexplained remittances of employer contributions
95DTime at which unexplained remittances of employer contributions deemed to be received
27Section 96 amended (What Commissioner must do with contributions received under this subpart)
28Section 98 repealed (Short payments by employers if not enough money remitted to Commissioner to cover all of employees’ deductions and employer contributions)
29Section 98A amended (Quantifying short payments for the purposes of Income Tax Act 2007 and Tax Administration Act 1994)
30Section 99 repealed (Short payments if not enough employer contribution remitted to cover all employees)
31Section 101 amended (Refunds of employer contribution by provider)
32New section 101AA inserted (What Commissioner must do with employer contribution refunded by provider)
101AAWhat Commissioner must do with employer contribution refunded by provider
33Section 104 amended (Granting of savings suspension)
34Section 108 amended (Savings suspensions have 3-month minimum life)
35Section 112B amended (Non-deduction notices)
36New section 221B inserted (Commissioner may make certain assumptions)
221BCommissioner may make certain assumptions
37Section 226 amended (Crown contribution: kick-start contributions)
38Schedule 1 amended (KiwiSaver scheme rules)
39Student Loan Scheme Act 2011
40Section 22 amended (Meaning of New Zealand-based)
41Section 23 amended (Meaning of overseas-based)
42Section 25 amended (Commissioner may treat certain borrowers as being physically in New Zealand)
43Section 26 amended (Method of making application and provision of evidence and information)
44Section 27 amended (Commissioner must notify borrower and specify period or conditions when granting application)
45New section 62A inserted (Commissioner may notify employers when loan balance close to zero)
62ACommissioner may notify employers when loan balance close to zero
46Section 106 amended (Meaning of repayment holiday)
47Cross-heading and section 107 amended
48Section 107B amended (Grant of repayment holiday)
49Section 108 amended (Duration of repayment holiday)
50Section 108A amended (Borrowers who have had, or are having, repayment holidays under Student Loan Scheme Act 1992)
51Section 110 amended (Repayment obligations of overseas-based borrowers)
52Section 115 amended (Repayment obligations of borrowers who are overseas-based for part of tax year)
53Section 176 amended (Challenge to decision concerning treating borrowers as being physically in New Zealand)
54Section 182A amended (Challenge to decision concerning repayment holiday)
55Section 220 amended (Application, savings, and transitional provisions)
56Schedule 1 amended (Conditions to borrower being treated as being physically in New Zealand)
57Schedule 6 amended (Application, savings, and transitional provisions)
58Income Tax Act 2007
59Section BB 2 amended (Main obligations)
60Section CB 16A amended (Main home exclusion for disposal within 5 years)
61Section CC 1 amended (Land)
62Section CC 1B amended (Consideration relating to grant, renewal, extension, or transfer of leasehold estate or licence)
63Section CD 4 amended (Transfers of value generally)
64Section CD 5 amended (What is a transfer of value?)
65Section CD 6 amended (When is a transfer caused by a shareholding relationship)
66Section CD 27 amended (Property made available intra-group)
67Section CD 29C amended (Transfers to shareholders by ASX-listed Australian company of shares in subsidiary)
68Section CD 38 amended (General calculation rule for transfers of value)
69New section CE 7CB inserted (Meaning of market value)
CE 7CBMeaning of market value
70Section CW 26C amended (Meaning of exempt ESS)
71New section CW 26DB inserted (Meaning of market value)
CW 26DBMeaning of market value
72Section CW 38 amended (Public authorities)
73Section CW 38B amended (Public purpose Crown-controlled companies)
74Section CW 39 amended (Local authorities)
75Section CW 56 amended (Non-resident aircraft operators)
76Section CX 17 amended (Benefits provided to employees who are shareholders or investors)
77Section CX 22 amended (Benefits to non-executive directors)
78Section EE 47 amended (Events for purposes of section EE 44)
79Section FC 1 amended (Disposals to which this subpart applies)
80Section FE 5 amended (Thresholds for application of interest apportionment rules)
81Section FE 6 amended (Apportionment of interest by excess debt entity)
82Section FM 8 amended (Transactions between group companies: income)
83Section GB 27 amended (Attribution rule for income from personal services)
84Section GB 29 amended (Attribution rule: calculation)
85Section GC 10 amended (Compensating arrangement: person receiving more than arm’s length amount)
86Section HA 13 amended (Qualifying companies’ distributions)
87Section HC 2 amended (Obligations of joint trustees for calculating income and providing returns)
88Section HC 4 amended (Corpus of trust)
89Section HC 7 amended (Trustee income)
90Section HC 10 amended (Complying trusts)
91Section HC 15 amended (Taxable distributions from non-complying and foreign trusts)
92Section HC 16 amended (Ordering rule for distributions from non-complying and foreign trusts)
93Section HC 26 amended (Foreign-sourced amounts: resident trustees)
94Section HC 27 amended (Who is a settlor?)
95Section HC 28 amended (Activities treated as those of settlor)
96New section HC 31B inserted (Value transfer by deferral, or non-exercise, of right to demand payment)
HC 31BValue transfer by deferral, or non-exercise, of right to demand payment
97Section HC 33 amended (Choosing to satisfy income tax liability of trustee)
98Section HM 3 amended (Foreign PIE equivalents)
99Section HM 60 amended (Notified investor rates)
100Section IQ 4 amended (Group companies using attributed CFC net losses)
101Section LA 5 amended (Treatment of remaining credits)
102Section LD 6 amended (When donation is paid to ineligible recipient)
103Section LJ 2 amended (Tax credits for foreign income tax)
104Section LO 2 amended (Beneficiaries of trusts)
105Section LY 1 amended (Research and development tax credits)
106Section LY 3 amended (When this subpart applies)
107Section LY 8 amended (Carry forward for remaining research and development tax credits)
108Section OK 19 amended (Maori authority credits attached to distributions)
109Section RC 5 amended (Methods for calculating provisional tax liability)
110Section RC 10 amended (Calculating amount of instalment under standard and estimation methods)
111Section RD 5 amended (Salary or wages)
112Section RZ 16 amended (Treatment of certain refunds not paid within 4-year period: 1 April 2008 to 31 March 2013)
113Section YA 1 amended (Definitions)
114Schedule 32 amended (Recipients of charitable or other public benefit gifts)
115Tax Administration Act 1994
116Section 22 amended (Keeping of business and other records)
117Section 36BB amended (Electronic format for details required for tax pooling intermediaries)
118Section 78D amended (Evidential requirements for tax credits)
119Section 91EI amended (Withdrawal of a private ruling)
120New section 91ESB inserted (Withdrawal of a short-process ruling)
91ESBWithdrawal of a short-process ruling
121Section 91FJ amended (Withdrawal of a product ruling)
122Section 108 amended (Time bar for amendment of income tax assessment)
123Section 113E amended (Amended assessments: research and development tax credits)
124Section 120KB amended (Provisional tax instalments and due dates generally)
125Section 120KBB amended (Interest for most standard method and some estimation method provisional taxpayers)
126Section 120L amended (Meaning of unpaid tax and overpaid tax for provisional tax purposes)
127Section 124ZI amended (Certificates for research and development)
128Section 138E amended (Certain rights of challenge not conferred)
129Section 139B amended (Late payment penalty)
130Section 139C amended (Late payment penalty and provisional tax)
131Section 173L amended (Transfer of excess tax within taxpayer’s accounts)
132Schedule 4 amended (Reporting of employment income information)
133Schedule 5 amended (Certain tax codes and rates)
134Schedule 7 amended (Disclosure rules)
135Schedule 8 amended (Reporting of income information by individuals and treatment of certain amounts)
136Income Tax Act 2004
137Section CW 45 amended (Non-resident aircraft operators)
138Section MD 1C amended (Treatment of certain refunds not paid within 4-year period: 2005–06, 2006–07, and 2007–08 income years)
139Section OB 1 amended (Definitions)
140Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019
141Section 34 repealed (Section 36BB amended (Electronic format for details required for tax pooling intermediaries))
142Section 375 amended (Regulation 2 amended (Interpretation))
143Section CB 14 amended (Exemption from tax of certain aircraft operators)
144Section 64A amended (Exemption from tax of certain aircraft operators)
145Section 46 amended (Section 138E amended (Certain rights of challenge not conferred))
146Section 332 repealed (Section 78D amended (Evidential requirements for tax credits))
147Section 11 amended (Earnings as an employee: what it does not include)
148Income Tax (Adverse Event Income Equalisation Scheme Rate of Interest) Regulations 1995 revoked

The Parliament of New Zealand enacts as follows: