Hon Peter Dunne
Government Bill
233—2
As reported from the Finance and Expenditure Committee
Commentary
1 Title
2 Commencement
Part 1Amendments to Income Tax Act 2007
3 Income Tax Act 2007
4 Income tax liability of person with schedular income
5 Withholding liabilities
6 Other obligations
7 Disposal: land used for landfill, if notice of election
8 Section CB 26 replaced
CB 26 Disposal of certain shares by portfolio investment entities
8B Section CB 27 repealed
9 New heading and section CB 36 added
Emissions units under Climate Change Response Act 2002
CB 36 Disposal of emissions units
9 Heading and section CB 36 replaced
9B New section CC 8B inserted
CC 8B Certain commercial bills: non-resident holders
10 Transfers of value generally
10B What is a transfer of value?
11 When is a transfer caused by a shareholding relationship?
12 Returns of capital: off-market share cancellations
12B Treasury stock acquisitions
13 Property made available intra-group
14 Employee benefits
15 Foreign investment fund income
16 New section CD 36B inserted
17 Available subscribed capital (ASC) amount
18 Available capital distribution amount
18B Heading and sections CD 45 to CD 52 repealed
19 Prevention of double taxation of share cancellation dividends
20 Amounts derived in connection with employment
21 Meaning of expenditure on account of an employee
22 Benefits, pensions, compensation, and government grants
23 New subpart CO inserted
Subpart CO—Income from voluntary activities
CO 1 Income from voluntary activities
24 Section CP 1 replaced
CP 1 Attributed income of investors in multi-rate PIEs
25 When attributed CFC income arises
26 When FIF income arises
26B Section CQ 7 repealed
27 Heading to subpart CR replaced
28 Sections CR 1 and CR 2 replaced
CR 1 Policyholder base income of life insurer
CR 2 Shareholder base gross income of life insurer
CR 2 Shareholder base income of life insurer
29 New section CR 4 added
CR 4 Income for general insurance outstanding claims reserve
29B Withdrawals
29C Exclusions of withdrawals of various kinds
29D Exclusion of withdrawal on partial retirement
29E Exclusion of withdrawal when member ends employment
30 Section CV 10 repealed
31 New section CW 3B inserted
CW 3B Pre-1990 forest land emissions units
31 Section CW 3B repealed
32 Section CW 9 replaced
CW 9 Dividend derived from foreign company
32 Dividend derived by company from overseas
33 Proceeds of share disposal by qualifying foreign equity investor
33B Dividends paid by qualifying companies
34 Expenditure on account, and reimbursement, of employees
35 New sections CW 17B and CW 17C inserted
CW 17B Relocation payments
CW 17C Payments for overtime meals
CW 17C Payments for overtime meals and certain other allowances
36 Section CW 37 repealed
37 Local and regional promotion bodies
38 Charities: business income
38B New section CW 59C inserted
CW 59C Life reinsurance outside New Zealand
39 New section CW 62B inserted
CW 62B Voluntary activities
40 Meaning of fringe benefit
40B Contributions to superannuation schemes
41 Section CX 18 replaced
42 Benefits provided instead of allowances
43 Section CX 28 replaced
CX 28 Accommodation
44 Section CX 39 repealed
45 Government grants to businesses
45B Section CX 48B repealed
46 New heading and section CX 48C inserted
Government funding of film and television
CX 48C Government funding additional to government screen production payments
47 New heading and section CX 48D inserted
Research and development
CX 48D Tax credits for expenditure on research and development
48 New heading and section CX 51B inserted
CX 51B Issue of emissions units
CX 51B Disposal of pre-1990 forest land emissions units
49 Proceeds from certain disposals by portfolio investment entities or New Zealand Superannuation Fund
50 Section CX 55 replaced
CX 55 Proceeds from disposal of investment shares
50B Portfolio investor allocated income and distributions of income by portfolio investment entities
51 Section CX 56 replaced
CX 56 Attributed income of certain investors in multi-rate PIEs
CX 56B Distributions to investors in multi-rate PIEs
CX 56C Distributions to investors by listed PIEs
52 Section CX 57 replaced
CX 57 Credits for investment fees
52B New section CZ 9B inserted
CZ 9B Available capital distribution amount: 1988 to 2010
52C Determining tax liabilities
53 Interest: not capital expenditure
54 Interest: most companies need no nexus with income
55 Interest: money borrowed to acquire shares in group companies
55B New section DB 10B inserted
DB 10B Interest or expenditure connected to stapled debt security
56 Cost of revenue account property
56B Charitable or other public benefit gifts by company
57 Property misappropriated by employees or service providers
57B Portfolio investment entities: zero-rated portfolio investors and allocated losses
58 Section DB 53 replaced
DB 53 Attributed PIE losses of certain investors
59 Section DB 54 replaced
DB 54 Treatment of credits for investment fees
60 Expenditure incurred in deriving exempt dividend
61 New heading and section DB 60 added
DB 60 Acquisition of emissions units
61 Heading and section DB 60 replaced
Emissions units and liabilities under Climate Change Response Act 2002
61B New section DB 61 added
DB 61 Liabilities for emissions
61C Contributions to employees' superannuation schemes
61D Criteria for approval of share purchase schemes: before period of restriction ends
61E Employment-related activities
61F Interpretation: reimbursement and apportionment
62 Heading to subpart DF
63 Government grants to businesses
64 Payments for social rehabilitation
65 New section DF 5 added
DF 5 Government funding additional to government screen production payments
66 When attributed CFC loss arises
67 When FIF loss arises
67B Section DO 11B repealed
67C Forestry business on land bought from the Crown, Maori owners, or holding company: no deduction
68 Sections DR 1 to DR 3 replaced
DR 1 Policyholder base gross expenditure or loss of life insurer
DR 2 Shareholder base gross expenditure or loss of life insurer
DR 1 Policyholder base allowable deduction of life insurer
DR 2 Shareholder base income of life insurer
DR 3 Life reinsurance outside New Zealand
DR 4 Life insurers' claims reserves
69 Film production expenditure
70 Meaning of film reimbursement scheme
71 New section DT 1A inserted
DT 1A Ring-fenced allocations
72 Arrangement for petroleum exploration expenditure and sale of property
73 Petroleum development expenditure
74 Disposal of petroleum mining asset to associate
75 Amount written off by holding company
76 Transfer of expenditure to master fund
77 Carry forward of expenditure
77B New section DV 4B inserted and replaced
DV 4B Carry forward of expenditure by member funds investing in portfolio investment entities
78 Investment funds: transfer of expenditure to master funds
78B Formula for calculating maximum deduction
78C Carry forward of expenditure
78D Maori authorities: donations
79 New section DW 4 added
DW 4 Deduction for general insurance outstanding claims reserve
80 Section DX 2 repealed
80B Prepayments
81 Meaning of trading stock
82 Low-turnover valuation
83 Valuing closing stock under $5000
83B New heading and section EC 26B inserted
Partnerships: cost price and national standard cost scheme
EC 26B Entering partners' cost base
84 Valuation of excepted financial arrangements
85 New section ED 1B inserted
ED 1B Valuation of emissions units issued for no consideration
ED 1B Valuation of emissions units issued for zero price
85B Pool method: calculating amount of depreciation
86 Economic rate for plant, equipment, or building, with high residual value
87 Annual rate for item acquired in person's 1995–96 or later income year
87B Meaning of adjusted tax value
87C Employer's superannuation contribution tax
88 Section EG 3 repealed
89 Expenditure incurred in acquiring film rights in feature films
90 Expenditure incurred in acquiring film rights in films other than feature films
91 Film production expenditure for New Zealand films having no large budget screen production grant
92 Film production expenditure for other films having no large budget screen production grant
93 Section EJ 12 replaced
EJ 12 Petroleum development expenditure: default allocation rule
EJ 12B Petroleum development expenditure: reserve depletion method
94 Relinquishing petroleum mining permit
95 New sections EJ 13B and EJ 13C inserted
EJ 13B Dry well drilled
EJ 13C Well not producing
96 Disposal of petroleum mining asset
97 Sections EJ 19 and EJ 20 replaced
EJ 20 Meaning of petroleum mining development
98 What is an excepted financial arrangement?
99 When use of spreading method not required
99B What spreading methods do
99C Applying IFRSs to financial arrangements
100 IFRS financial reporting method
101 Determination alternatives
102 Expected value method
103 Modified fair value method
103B Mandatory use of some determinations
104 Mandatory use of yield to maturity method for some arrangements
105 Straight-line method
105B New section EW 21 inserted
EW 21 Financial reporting method
105C Default method
105D Failure to use method for financial reporting purposes
106 Consistency of use of straight-line method and market valuation method
106B Consistency of use of IFRS method
107 Change of spreading method
108 When calculation of base price adjustment required
108B Base price adjustment formula
109 Section EW 54 replaced
EW 54 Meaning of cash basis person
110 Section EW 56 repealed
111 Thresholds
112 Financial arrangements, income, and expenditure relevant to criteria
113 Section EW 59 replaced
EW 59 Exclusion by Commissioner
114 Trustee of deceased's estate
115 Meaning of controlled foreign company
115B Direct control interests
115C Direct income interests
116 Associates and 10% threshold
116B New section EX 18A inserted
EX 18A Scheme for finding person's attributed CFC income or loss
117 Formula for calculating attributed CFC income or loss
118 Taxable distribution from non-complying trust
Attributable CFC amount and net attributable CFC income or loss
EX 20B Attributable CFC amount
EX 20C Net attributable CFC income or loss
EX 20D Adjustment of fraction for excessively debt funded CFC
119 New heading and sections EX 20B to EX 20E inserted
EX 20E Relative debt-asset ratio for CFC
120 Attributable CFC amount
121 Heading repealed
122 Branch equivalent income or loss: calculation rules
123 New heading and sections EX 21B to EX 21E inserted
Non-attributing active CFCs
EX 21B Non-attributing active CFCs
Tests for non-attributing active CFCs
EX 21C Applicable accounting standards for section EX 21E
EX 21D Non-attributing active CFC: default test
EX 21E Non-attributing active CFC: test based on accounting standard
124 Heading and section EX 22 replaced
Non-attributing Australian CFCs
EX 22 Non-attributing Australian CFCs
125 Section EX 23 repealed
126 Change of CFC's balance date
127 Attributing interests in FIFs
127B Direct income interests in FIFs
128 Exemption for ASX-listed Australian companies
128B Exemption for Australian unit trusts with adequate turnover or distributions
129 CFC rules exemption
130 Grey list company owning New Zealand venture capital company: 10-year exemption
131 Exemption for employee share purchase scheme of grey list company
132 Limits on choice of calculation methods
133 Section EX 47 replaced
EX 47 Method required for certain non-ordinary shares
133B Branch equivalent method
134 Comparative value method
135 Fair dividend rate method: usual method
136 Fair dividend rate method for unit-valuing funds and others by choice
137 Cost method
138 Additional FIF income or loss if CFC owns FIF
139 Codes: comparative value method, deemed rate of return method, fair dividend rate method, and cost method
139B Limits on changes of method
139C Changes in application of FIF exemptions
139D New section EX 66B inserted
EX 66B Entities ceasing to be FIFs
140 Sections EY 1 to EY 5 replaced
EY 1 What this subpart does
EY 2 Policyholder base
EY 3 Shareholder base
EY 4 Apportionment of income of particular source or nature, and of tax credits
EY 5 Part-year tax calculations
141 Section EY 6 replaced
EY 6 Actuarial advice and guidance
141B Meaning of claim
141C Superannuation schemes providing life insurance
142 Meaning of life reinsurance
143 Section EY 15 to EY 47 replaced
Policyholder base
Non-participation policies
EY 15 Policyholder base income: non-participation policies
EY 16 Policyholder base gross expenditure or loss: non-participation policies
Profit participation policies
EY 17 Policyholder base gross income: profit participation policies
EY 18 Policyholder base gross expenditure or loss: profit participation policies
Shareholder base
EY 19 Shareholder base gross income: non-participation policies
EY 20 Shareholder base gross expenditure or loss: non-participation policies
EY 21 Shareholder base gross income: profit participation policies
EY 22 Shareholder base gross expenditure or loss: profit participation policies
Reserves: non-participation policies
EY 23 Reserving amounts for life insurers: non-participation policies
EY 24 Outstanding claims reserving amount: non-participation policies not annuities
EY 25 Premium smoothing reserving amount: non-participation policies not annuities
EY 26 Unearned premium reserving amount: non-participation policies not annuities
EY 27 Capital guarantee reserving amount: non-participation policies not annuities
Shareholder base other profit: profit participation policies
EY 28 Shareholder base other profit: profit participation policies
Transitional adjustments and annuities
EY 29 Transitional adjustments: life risk
EY 30 Annuities
143 Sections EY 15 to EY 47 replaced
EY 16 Policyholder base allowable deductions: non-participation policies
EY 17 Policyholder base income: profit participation policies
EY 18 Policyholder base allowable deductions: profit participation policies
EY 19 Shareholder base income: non-participation policies
EY 20 Shareholder base allowable deductions: non-participation policies
EY 21 Shareholder base income: profit participation policies
EY 22 Shareholder base allowable deductions: profit participation policies
Non-participation policies: reserves
EY 28 Shareholder base other profit: profit participation policies that are existing business
EY 29 Shareholder base other profit: profit participation policies that are new business
EY 30 Transitional adjustments: life risk
EY 31 Annuities
144 Policyholder income formula: FDR adjustment
145 Policyholder income formula: PILF adjustment
146 Non-resident life insurers with life insurance policies in New Zealand
147 Section EZ 31 repealed
148 Section EZ 32B repealed
148B Income and expenditure where financial arrangement redeemed or disposed of
148C New section EZ 52B added
EZ 52B Consistency of use of IFRS method: Determination G3 and 2009–10 income year
149 New headings and sections EZ 53 to EZ 62 added
Life insurance transitional adjustment: expected death strain
Expected death strain formulas
EZ 53 How expected death strain is calculated
EZ 54 Expected death strain formulas
EZ 55 Expected death strain formulas: option when more than 1 life insured
EZ 56 Expected death strain formula (life): when annuity payable on death
EZ 57 Expected death strain formulas: when annuity payable on survival to date or age specified in policy
EZ 58 Expected death strain formula (life): when partial reinsurance exists
Actuarial reserves
EZ 59 Meaning of actuarial reserves
EZ 60 Actuarial reserves: calculation
Entry to new life insurance regime: transitional and miscellaneous provisions
EZ 61 Allowance for cancelled amount: spreading
EZ 62 Reinsurance transition: life financial reinsurance may be life reinsurance
150 New heading and sections EZ 61 to EZ 63 added
Transitional and other miscellaneous provisions relating to entry into new life insurance regime
EZ 61 Disposal and re-acquisition upon entry
EZ 62 Allowance for cancelled amount: spreading
EZ 63 Reinsurance transition: life financial reinsurance may be life reinsurance
150 New section EZ 63 inserted
EZ 63 Disposal and acquisition upon entry
151 Recharacterisation of certain debentures
151B New section FA 2B inserted
FA 2B Stapled debt securities
151C Financial arrangements rules
152 What this subpart does
153 Transfer at market value
153B Property transferred to charities or to close relatives and others
154 What this subpart does
155 When this subpart applies
156 Section FE 3 replaced
FE 3 Interest apportionment for individuals
157 Some definitions
158 Thresholds for application of interest apportionment rules
159 Apportionment of interest by excess debt entity
160 Calculation of debt percentages
161 Financial arrangements entered into with persons outside group
162 Consolidation of debts and assets
163 Total group debt
164 Total group assets
165 Measurement of debts and assets of worldwide group
166 Banking group's New Zealand net equity
167 New Zealand group for excess debt entity that is a company
168 Identifying New Zealand parent
169 Section FE 28 replaced
FE 28 Identifying members of New Zealand group
170 Section FE 29 replaced
FE 29 Combining New Zealand groups owned by natural persons and trustees
171 Ownership interests in companies outside New Zealand group
172 Worldwide group for corporate excess debt entity
173 New sections FE 31B and FE 31C inserted
FE 31B Worldwide group for excess debt outbound companies
FE 31C CFCs in worldwide group for natural persons or trustees described in section FE 2(1)(g)
174 Section FE 32 replaced
FE 32 Joint venture parties
174B Identifying members of New Zealand banking group
175 Subpart FF repealed
176 Consolidation rules
177 Some general rules for treatment of consolidated groups
178 Heading and sections FM 24 to FM 26 repealed
178B Eligibility rules
179 Imputation rules
179B Trans-Tasman imputation groups and resident imputation subgroups
179C Amortising property
180 Treatment of interest payable under debentures issued before certain date
180B New sections GB 15B and GB 15C inserted
GB 15B Supplies affecting default test for non-attributing active CFC
GB 15C Arrangements related to accounting test for non-attributing active CFC
181 Attribution rule for income from personal services
182 Interpretation of terms used in section GB 27
183 Benefits provided to employee's associates
184 Section GB 39 repealed
185 Arrangements involving money not at risk
186 Defined terms for sections GB 45 and GB 46
186B Disposals of trading stock at below market value
187 New section GC 4B inserted
187 Section GC 4B repealed
188 Leases for inadequate rent
189 Insufficient amount receivable by person
190 Compensating arrangement: person receiving more than arm's length amount
191 Requests for matching treatment
192 Section GC 12 replaced
GC 12 Effect on person's withholding obligations
193 New section GZ 2 inserted
GZ 2 Arrangements involving cancellation of conduit tax relief credits
194 Shareholding requirements
195 New section HA 8B inserted
HA 8B No CFC income interests or FIF direct income interests of 10% or more
195B Limit on foreign non-dividend income
195C When requirements no longer met
195D Dividends paid by qualifying companies
196 Fully imputed distributions
197 Section HA 16 replaced
HA 16 Dividends paid by qualifying companies to trustee shareholders
198 Credit accounts and dividend statements
199 Calculating qualifying company election tax
200 Corpus of trust
200B Trustee income
201 Taxable distributions from non-complying and foreign trusts
201B Distributions from community trusts
202 Who is a settlor?
202B Liability of trustee as agent
202C Beneficiary income of minors
203 Trusts and minor beneficiary rule
203B Companies issuing debentures
203C General provisions relating to disposals
203D Disposal upon final dissolution
HG 4 Disposal upon final dissolution
203E Disposal of partner's interests
203F Disposal of trading stock
203G Disposal of depreciable property
203H Disposal of financial arrangements and certain excepted financial arrangements
203I Disposal of short-term agreements for the sale and purchase of property or services
203J Section HG 10 replaced
HG 10 Disposal of livestock
204 Limitation on deductions by partners in limited partnerships
204B Scheme of subpart
205 Eligibility requirements for entities
206 Effect of failure to meet eligibility requirements for entities
206B Meaning of investor and portfolio investor class
207 Investor membership requirement
207B Investor return adjustment requirement: portfolio tax rate entity
208 Investor interest size requirement
209 Further eligibility requirements relating to investments
210 Unlisted company choosing to become portfolio listed company
211 Becoming portfolio investment entity
211B Treatment of income from interest when entitlement conditional or lacking
212 Portfolio class taxable income and portfolio class taxable loss for portfolio allocation period
213 Credits received by portfolio tax rate entity or portfolio investor proxy
213B Portfolio entity formation loss
214 Subpart HL replaced by subpart HM
Subpart HM—Portfolio investment entities
Introductory provisions
HM 1 Outline of subpart and relationship with other Parts
HM 2 What is a portfolio investment entity?
HM 3 Foreign PIE equivalents
HM 4 Who is an investor?
HM 5 What is an investor class?
HM 6 Intended effects for multi-rate PIEs and investors
Entry rules
HM 7 Requirements
Requirements
HM 8 Residence in New Zealand
HM 9 Collective schemes
HM 10 Exclusion: life insurance business
HM 11 Investment types
HM 12 Income sources
HM 13 Maximum shareholdings in investments
HM 14 Minimum number of investors
HM 15 Maximum investors’ interests
HM 16 Associates combined
HM 17 Same rights to all investment proceeds
HM 18 Requirements for listed PIEs: unlisted companies
HM 19 Requirements for listed PIEs: fully crediting distributions
HM 20 Re-entering as PIE: 5-year rule
Exceptions
HM 21 Exceptions for certain investors
HM 22 Exceptions for certain funds
HM 23 Exceptions for foreign PIE equivalents
Exit rules
HM 24 Ending of New Zealand residence
HM 25 When entity no longer meets investment or investor requirements
HM 26 Starting life insurance business
HM 27 When multi-rate PIE no longer meets investor interest adjustment requirements
HM 28 When listed PIE no longer meets crediting requirement
HM 29 Choosing to cancel status
HM 30 When foreign PIE equivalent no longer meets requirements
Rules for multi-rate PIEs
HM 31 Rules for multi-rate PIEs
HM 32 Rules for and treatment of investors in multi-rate PIEs
HM 33 Proxies for PIE investors
Attributing income to investors
HM 34 Attribution periods
HM 35 Determining net amounts and taxable amounts
HM 36 Calculating amounts attributed to investors
HM 37 When income cannot be attributed
HM 38 When superannuation fund investor has conditional entitlement
HM 39 New investors in existing investor classes
HM 40 Deductions for attributed PIE losses for zero-rated and exiting investors
Calculating and paying tax liability
HM 41 Options for calculation and payment of tax
HM 42 Exit calculation option
HM 43 Quarterly calculation option
HM 44 Provisional tax calculation option
HM 45 Voluntary payments
HM 46 Calculation process
HM 47 Calculation of tax liability or tax credit of multi-rate PIEs
Adjusting investors’ interests
HM 48 Adjustments to investors’ interests or to distributions
Using tax credits
HM 49 Tax credits: when sections HM 50 to HM 55 apply
HM 50 Attributing credits to investors
HM 51 Use of foreign tax credits by PIEs
HM 52 Use of foreign tax credits by zero-rated and certain exiting investors
HM 53 Use of tax credits other than foreign tax credits by PIEs
HM 54 Use of tax credits other than foreign tax credits by investors
HM 55 Tax credits for losses
Prescribed and notified rates for investors in multi-rate PIEs
HM 56 Prescribed investor rates for investors, default and optional: 30%
HM 56 Prescribed investor rates for investors generally
HM 57 Prescribed investor rates for certain natural person investors: 19.5%
HM 57B Optional investor rates for trustees: 30%, 19.5%
HM 58 Prescribed investor rates for certain investors: 0%
HM 59 Notified rates
HM 60 Certain exiting investors zero-rated
Exit levels and periods
HM 61 Exit levels for investors
HM 62 Exit periods
Treatment of losses by PIEs
Losses of certain multi-rate PIEs
HM 63 Use of investor classes’ losses
HM 64 Use of land losses of investor classes
Formation losses
HM 65 Formation losses carried forward to tax year
HM 66 Formation losses carried forward to first quarter
HM 67 When formation losses carried forward are less than 5% of formation investment value
HM 68 When formation losses carried forward are 5% or more of formation investment value: 3 year spread
HM 69 Maximum amount of formation losses allocated by multi-rate PIEs to investor classes
Elections and consequences
HM 70 Choosing to become PIE
HM 71 When elections take effect
HM 72 Transition: provisional tax
HM 73 Transition: entities with non-standard income years
HM 74 Transition: treatment of shares held in certain companies
HM 75 Transition: FDPA companies
214B Transitional residents
214C New sections HZ 5 and HZ 6 added
HZ 5 Transitional provisions for PIE rules
HZ 6 Saving of binding rules relating to portfolio investment entities
215 Tax losses
216 Restrictions relating to ring-fenced tax losses
217 Restrictions relating to schedular income
218 Common ownership: group of companies
219 New section IC 13 added
IC 13 Variation of requirements for development companies in Niue
219B Pre-consolidation losses: use by group companies
219C When this subpart applies
220 Ring-fencing cap on attributed CFC net losses
220B New section IQ 2B inserted
IQ 2B Attributed CFC net loss from tax year before first affected year
220C Ring-fencing cap on FIF net losses
221 Group companies using attributed CFC net losses
221B Group companies using FIF net losses
222 Subpart IT replaced
Subpart IT—Cancellation of life insurer's losses
IT 1 Cancellation of life insurer's policyholder net losses
IT 2 Cancellation of life insurer's tax loss when allowed into policyholder base
223 Remaining refundable credits: PAYE, RWT, and certain other items
224 Remaining refundable credits: tax credits for families
225 New section LA 8B inserted
LA 8B General rules particular to life insurers
226 Use of tax credits
227 Section LB 1 replaced
LB 1 Tax credits for PAYE income payments
228 Tax credits for resident withholding tax
228B Tax credits for families
229 Tax credits related to personal service rehabilitation payments: providers
230 Tax credits related to personal service rehabilitation payments: payers
230B Tax credits for transitional circumstances
231 Tax credits for housekeeping
232 Subpart LD heading replaced
233 New heading inserted
234 Tax credits for charitable or other public benefit gifts
235 Exclusions
236 New heading and sections LD 4 to LD 7 added
Payroll donations
LD 4 Tax credits for payroll donations
LD 5 When tax credit incorrectly calculated
LD 5 Calculating amount of tax credit and filing particulars
LD 6 When donation is paid to ineligible recipient
LD 7 When donation returned to person
LD 8 Meaning and ranking of payroll donation
237 Tax credits for imputation credits
238 Use of remaining credits by companies and trustees
239 New section LE 2B inserted
LE 2B Use of remaining credits by life insurer on policyholder base
240 Use of remaining credits by others
241 Tax credits for FDP credits
242 Subpart LH–Tax credits for expenditure on research and development
243 Who this subpart applies to
244 Tax credits relating to expenditure on research and development
245 Requirements
245B Adjustments to eligible expenditure
247 New section LH 14B inserted
LH 14B Recovery of overpaid tax credit
248 What this subpart does
249 Tax credits for foreign income tax
249B Section LJ 3 replaced
LJ 3 Meaning of foreign income tax
249C Calculation of New Zealand tax
250 Repaid foreign tax
250 Section LJ 7 replaced by new sections LJ 7 and LJ 8
LJ 7 Repaid foreign tax: effect on income tax liability
LJ 8 Repaid foreign tax: effect on FDP liability
251 Tax credits relating to attributed CFC income
252 Calculation of amount of credit
253 New section LK 5B inserted
LK 5B Credits from tax year before first affected year
254 Subpart LL repealed
254B Use of remaining credits
254C Continuity rules for carrying credits forward
255 Sections LQ 1 to LQ 4 repealed
255B Tax credits for certain investors in portfolio tax rate entities
256 Subpart LS replaced
Subpart LS—Tax credits for multi-rate PIEs and investors
LS 1 Tax credits for multi-rate PIEs
LS 2 Tax credits for investors in multi-rate PIEs
LS 3 Tax credits for zero-rated investors
LS 4 Tax credits for certain exiting investors
256B Meaning of full-time earner for family scheme
256C Some definitions for family scheme
257 Adjustments for calculation of family scheme income
257B Family scheme income of major shareholders in close companies
257C What this subpart does
257D Third requirement: residence
257E When person does not qualify
257F Continuing requirements
257G Principal caregiver
257H Second requirement: principal care
257I Third requirement: residence
257J Fifth requirement: full-time earner
257K Calculation of in-work tax credit
257L Meaning of employment for this subpart
257M Meaning of net family scheme income
257N Recovery of overpaid tax credit
257O Section MF 6 replaced
MF 6 Overpayment or underpayment of tax credit
258 Tax credits for superannuation contributions
259 Eligibility requirements
260B When short payment and unpaid compulsory employer contributions found after tax credit used
261 Employees opting out
262 What this subpart does
263 Section ML 2 replaced
ML 2 Tax credit for redundancy payments
263B New section MZ 3 added
MZ 3 Exclusions from determination of family scheme income
264 Memorandum accounts
265 Credits
266 Debits
267 Opening balances of memorandum accounts
268 Shareholder continuity requirements for memorandum accounts
269 Section OA 12 repealed
270 Calculation of maximum permitted ratios
271 General rules for companies with imputation credit accounts
271B Australian companies with imputation credit accounts
272 New section OB 3B inserted
OB 3B General rule for life insurer's policyholder base
273 ICA payment of tax
274 ICA resident withholding tax withheld
275 New section OB 9B inserted
OB 9B ICA company allocated imputation credit with income from PTRE
276 Section OB 9B replaced
OB 9B ICA attributed PIE income with imputation credit
277 Section OB 11 repealed
278 Section OB 17 repealed
278B ICA transfer to master fund
279 ICA refund of income tax
280 ICA amount applied to pay other taxes
281 ICA refund from tax pooling account
282 ICA transfer within tax pooling account
283 New section OB 35B inserted
OB 35B ICA debit for transfer from tax pooling account for policyholder base liability
284 ICA refund of tax credit
284B ICA transfer for net foreign attributed income
285 Section OB 47 replaced
OB 47 Debit for policyholder base imputation credits
285B ICA benchmark dividend rules
285C Imputation additional tax on leaving wholly-owned group
286 Table O1: imputation credits
287 Table O2: imputation debits
288 General rules for companies with FDP accounts
289 New section OC 2B inserted
OC 2B General rule for life insurer's policyholder base
290 When company chooses to stop being FDPA company
291 When company emigrates
292 Section OC 6 repealed
293 Section OC 8 repealed
294 Section OC 9 repealed
295 Section OC 10 repealed
296 FDPA refund of tax credit
297 Section OC 20 replaced
OC 20 Debit for policyholder base FDP credits
298 Section OC 23 repealed
299 Heading before section OC 30 replaced
300 Payment of further FDP for closing debit balance
301 Payment of further FDP when company no longer New Zealand resident
302 Reduction of further FDP
303 Section OC 33 replaced
OC 33 Income tax paid satisfying liability for further income tax
304 Section OC 34 replaced
OC 34 Further income tax paid satisfying liability for income tax
305 Heading and sections OC 35 to OC 39 repealed
306 Table O3: FDP credits
307 Table O4: FDP debits
308 General rules for companies with CTR accounts
308B Choosing to become CTR company
308C When company stops being CTR company
309 Section OD 5 repealed
310 Section OD 8 repealed
311 Section OD 11 repealed
311B CTRA increase in resident shareholding
312 Section OD 23 repealed
313 Section OD 24 repealed
314 Table O5: conduit tax relief credits
315 Table O6: conduit tax relief debits
316 Branch equivalent tax accounts of companies
317 Section OE 6 repealed
318 BETA payment of income tax
319 Heading and sections OE 12 to OE 16 repealed
319 Heading and sections OE 12 and OE 13 repealed
319B Sections OE 14 to OE 16 repealed
320 New heading and section OE 16B inserted
Debit if credit balance at beginning of first affected tax year
OE 16B Company with credit balance at beginning of first affected tax year
321 Table O7: branch equivalent tax credits
322 Table O8 repealed
323 General rules for companies with ASC accounts
324 Subpart OJ repealed
325 MACA payment of tax
326 MACA refund of income tax
327 MACA payment of other taxes
328 New section OK 14B inserted
OK 14B MACA refund of tax credit
329 Table O18: Maori authority debits
330 When credits and debits arise only in consolidated imputation group accounts
330B Provisions applying to consolidated imputation groups
331 Consolidated ICA payment of tax
332 Section OP 14 repealed
333 Consolidated ICA resident withholding tax withheld
334 Section OP 20 repealed
335 Section OP 21 repealed
336 Consolidated ICA refund of income tax
337 Consolidated ICA amount applied to pay other taxes
338 New section OP 33B inserted
OP 33B Consolidated ICA debit for transfer from tax pooling account for policyholder base liability
339 Consolidated ICA refund of tax credit
340 Section OP 38 repealed
340B Consolidated ICA transfer to policyholder credit account
341 Section OP 44 replaced
OP 44 Consolidated ICA debit for policyholder base imputation credits
342 Table O19: imputation credits of consolidated imputation groups
343 Table O20: imputation debits of consolidated imputation groups
344 When credits and debits arise only in consolidated FDP group accounts
345 Section OP 56 repealed
346 Section OP 57 repealed
347 Section OP 61 repealed
348 Section OP 62 repealed
349 Consolidated FDPA refund of tax credit
350 Section OP 70 repealed
351 Section OP 74 replaced
OP 74 Consolidated FDPA debit for policyholder base FDP credits
352 Table O21: FDP credits of consolidated FDP groups
353 Table O22: FDP debits of consolidated FDP groups
353B CTR accounts of consolidated groups
354 When credits and debits arise only in CTR group accounts
355 Section OP 81 repealed
356 Section OP 82 repealed
357 Section OP 88 repealed
358 Section OP 95 repealed
359 Table O23: conduit tax relief credits of consolidated groups
360 Table O24: conduit tax relief debits of consolidated groups
361 Section OP 99 repealed
362 Section OP 100 repealed
363 Consolidated BETA payment of income tax
364 Heading and sections OP 105 to OP 108 repealed
365 New heading and section OP 108B inserted
OP 108B Consolidated BETA group with credit balance at beginning of first affected tax year
366 Table O25: branch equivalent tax credits of consolidated BETA groups
367 Table O26 repealed
368 Headings and sections OP 109 to OP 116 repealed
369 Tables O27 and O28 repealed
370 ASCA lost excess available subscribed capital
371 Modifying ratios for imputation credits and FDP credits
372 New section OZ 18 added
OZ 18 Credit-back of PCA balance
373 What this Part does
373B Tax obligations for employment-related taxes
374 Withholding and payment obligations for passive income
375 When obligations not met
376 Payment dates for interim and other tax payments
376B Amalgamation of companies
376C Regulations
377 Application of other provisions for purposes of ESCT rules and NRWT rules
377B Payment of terminal tax
377C Schedular income tax liability for filing taxpayers for non-resident passive income
378 Who is required to pay provisional tax?
378B Attribution rule for income from personal services
379 PAYE rules and their application
379B PAYE income payments
380 Salary or wages
381 Certain benefits and payments
382 Schedular payments
382B Reduction in certain circumstances
383 Multiple payments of salary or wages
383B Advance payments of salary or wages
384 New section RD 13B inserted
RD 13B Adjustments for payroll donations
384B Payments of extra pay with other PAYE income payments
385 Schedular payments without notification
386 Schedular payments to non-resident entertainers
387 PAYE income payment forms for amounts of tax paid to Commissioner
388 Calculation of all-inclusive pay
388B Value of and payments towards fringe benefits
389 Close company option
390 Small business option
390B Employer's superannuation contributions
390C Calculating amounts of tax for employer's superannuation contributions
390D Choosing to have amount treated as salary or wages
390E Choosing different rates for employer's superannuation contributions
390F Calculating amounts on failure to withhold
390G Amounts of tax treated as paid to and received by superannuation funds
390H Resident passive income
390I Obligation to withhold RWT
391 Persons who have withholding obligations
392 Agents' or trustees' obligations in relation to certain dividends
392B Notification by companies
392C Interest
393 Non-resident passive income
393B Certain dividends
393C When dividends fully imputed or fully credited
394 Non-cash dividends
395 Dividends paid to companies under control of non-residents
395B Section RF 12 replaced by sections RF 12 to RF 12C
RF 12 Interest paid by approved issuers or transitional residents
RF 12B Interest derived jointly with residents
RF 12C Amount derived from non-resident life insurer becoming resident
395C Credit balance in branch equivalent tax account
395D Using loss balances
395E Reduction of payments for conduit tax relief
396 Subpart RG repealed
397 Retirement scheme contributors
398 What this subpart does
399 Refunds for overpaid tax
400 Overpayment on income statements
401 Using refund to satisfy tax liability
401B Operation of PAYE intermediaries' trust accounts
401C General responsibility of employers
402 Information required from employers
402B Employer's superannuation contributions
402C General responsibilities of PAYE intermediaries
403 Collection, payment, and information requirements
404 Tax pooling intermediaries
405 New section RP 17B inserted
RP 17B Tax pooling accounts and their use
406 Deposits in tax pooling accounts
407 Transfers from tax pooling accounts
407B Standard method: 2008–09 and 2009–10 income years
407C GST ratio method: 2008–09 and 2009–10 income years
408 Definitions
409 Meaning of income tax varied
410 Treatment of qualifying company election tax, FBT, FDP penalty tax, imputation penalty tax, and withdrawal tax
411 Two companies with common control
412 Two companies with common control: 1988 version provisions
413 Some definitions
414 Table, heading, and sections YB 1 to YB 20 replaced
Associated persons
YB 1 What this subpart does
YB 2 Two companies
YB 3 Company and person other than company
YB 4 Two relatives
YB 5 Person and trustee for relative
YB 6 Trustee and beneficiary
YB 7 Two trustees with common settlor
YB 8 Trustee and settlor
YB 9 Settlor and beneficiary
YB 10 Who is a settlor?
YB 11 Trustee and person with power of appointment or removal
YB 12 Partnership and partner
YB 13 Partnership and associate of partner
YB 14 Tripartite relationship
YB 15 Exceptions for employee trusts
YB 16 Exceptions for certain trusts and charitable organisations
414B Transparency of nominees
414C Heading for subpart YC
415 Section YC 1 repealed
415 Heading and section YC 1 repealed
415B Look-through rule for corporate shareholders
415C Disregarding certain securities
415D Reverse takeovers
416 New section YC 18B inserted
YC 18B Corporate reorganisations not affecting economic ownership
417 Residence of natural persons
417B Country of residence of foreign companies
418 Classes of income treated as having New Zealand source
419 Apportionment of income derived partly in New Zealand
420 General rules for currency conversion
420B New section YZ 2 inserted
YZ 2 Saving of effect of section 394L(4A) of Income Tax Act 1976
421 Schedule 1—Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe benefits
422 Schedule 2—Basic tax rates for PAYE income payments
422B Schedule 4—Rates of tax for schedular payments
422C Schedule 5—Fringe benefit values for motor vehicles
423 Schedule 13—Depreciable land improvements
423B Schedule 20—Expenditure on farming, horticultural, aquacultural, and forestry improvements
424 Schedule 21—Expenditure and activities related to research and development
425 Schedule 24—International tax rules: grey list countries
425B Schedule 25—Foreign investment funds
426 Schedule 27—Countries and types of income with unrecognised tax
426B Schedule 28––Requirements for complying fund rules
426C New schedule 29—Portfolio investment entities: excepted investors
427 Schedule 32—Recipients of charitable or other public benefit gifts
428 Schedule 49—Enactments amended
429 Schedule 50—Amendments to Tax Administration Act 1994
429B Schedule 51–Identified changes in legislation
430 Schedule 52—Comparative tables of old and rewritten provisions
431 Consequential amendments: associated person and list of defined terms
Part 2Amendments to Tax Administration Act 1994
432 Tax Administration Act 1994
433 Interpretation
434 Construction of certain provisions
435 New Part 2B
Part 2BIntermediaries for PAYE, provisional tax, and resident passive income
PAYE intermediaries
15C PAYE intermediaries and listed PAYE intermediaries
15D Application for approval as PAYE intermediary
15E Revocation of approval
15F Fitness of applicants
15G Application for approval as listed PAYE intermediary
15H Grounds for revocation of listing
15I Procedure for revocation of listing
15J Employers’ arrangements with PAYE intermediaries
15K Privacy requirements
15L Amended monthly schedules
15M Subsidy claim forms
Tax pooling intermediaries
15N Establishing tax pooling accounts
15O Role of Commissioner
15P Applications to establish tax pooling accounts
15Q Fitness of applicants
15R Requirements for applications to establish tax pooling accounts
15S Winding up tax pooling accounts
RWT proxies
15T RWT proxies
435 Part 2B replaced
15N RWT proxies
15O Establishing tax pooling accounts
15P Role of Commissioner
15Q Applications to establish tax pooling accounts
15R Fitness of applicants
15S Requirements for applications to establish tax pooling accounts
15T Winding up tax pooling accounts
436 Information to be furnished on request of Commissioner
437 No requirement to disclose tax advice document
438 Treatment of book or document
439 Claim that book or document is tax advice document
440 Person must disclose tax contextual information from tax advice document
441 Challenge to claim that book or document is tax advice document
442 Keeping of business and other records
443 Records to be kept by employer or PAYE intermediary
444 PAYE tax codes
445 Special tax code certificates
446 Variation of requirements
447 New heading and section 24Q inserted
24Q Transfer of payroll donations by employers
448 Section 28B replaced
28B Notification of investors’ tax rates
449 Portfolio tax rate entity to give statement to investors and request information
450 Section 31B replaced
31B Notification requirements for PIEs
31C Notification requirements for multi-rate PIEs
450B Records to be provided by employer who contributes to superannuation fund
450C Certification requirements for withdrawals subject to section CS 1 of Income Tax Act 2007
451 Applications for RWT exemption certificates
452 Section 32N repealed
452 Heading and section 32N repealed
453 Returns of income
454 Annual returns of income not required
455 Electronic format of employer monthly schedule and PAYE payment form
456 Section 36AB replaced
36AB Electronic return requirements for multi-rate PIEs
457 Returns to annual balance date
458 Returns by persons with tax credits for housekeeping payments and charitable or other public benefit gifts
459 Return by person claiming rebate on redundancy payment
460 Portfolio tax rate entities and portfolio investor proxies to make returns, file annual reconciliation statement
461 Section 57B replaced
57B Return requirements for multi-rate PIEs
462 Disclosure of trust particulars
463 Disclosure of interest in foreign company or foreign investment fund
464 Section 66 repealed
465 Tax credit relating to KiwiSaver and complying superannuation fund members: member credit form
466 Statements in relation to research and development tax credits: single persons
467 Section 68E replaced
68E Statements in relation to research and development tax credits: internal software development groups
467B New section 68F inserted
68F Requirements for statements in relation to research and development tax credits
468 Section 78E repealed
469 Section 78F repealed
469B New section 80KLB inserted
80KLB Recovery of excess tax credits
469C Effect of extra instalment on entitlement to tax credit
470 Officers to maintain secrecy
471 Disclosure of information for verification of large budget screen production grant entitlement
472 Disclosure of information in relation to Working for Families tax credits
473 Further secrecy requirements
474 New section 89AB inserted
89AB Response periods
475 Taxpayers and others with standing may issue notices of proposed adjustment
476 Taxpayer may issue notice of proposed adjustment for taxpayer assessment
477 Completing the disputes process
478 Determination on economic rate
479 Determination on special rates and provisional rates
480 Commissioner may decline to issue special rate or provisional rate
481 Notice of setting of economic rate
482 Applications for determinations
483 Determination on type of interest in FIF and use of fair dividend rate method
484 New heading and section 91AAQ inserted
Determinations relating to non-attributing active CFCs
91AAQ Determination on insurer as non-attributing active CFC
485 New heading and section 91AAR inserted
Determinations relating to relocation payments
91AAR Determination relating to eligible relocation expenses
485B Assessment of shortfall penalties
486 Section 102 repealed
487 Section 103 repealed
488 Section 103A repealed
489 Section 104 repealed
490 Time bar for amendment of income tax assessment
490B Extension of time bars
491 Amended assessments for research and development tax credits
492 Definitions
493 Section 120EA repealed
493B Provisional tax instalments in transitional years
494 Instalments of and due dates for provisional tax
495 Where provisional tax paid by company does not count as overpaid tax
496 Variation to definition of date interest starts
496B Interest paid on deposits in tax pooling accounts
497 Section 120R repealed
498 Certain rights of objection not conferred
498B Certain rights of challenge not conferred
498C Non-electronic filing penalty
498D Late payment penalty
499 Imposition of late payment penalties when financial relief sought
499B Imputation penalty tax payable in some circumstances
500 Section 140C repealed
500B FDP penalty tax payable in some circumstances
501 Section 140CA repealed
502 Tax shortfalls
502B Unacceptable tax position
503 Abusive tax position
504 Evasion or similar act
504B Not paying employer monthly schedule amount
504C Limitation on reduction of shortfall penalty
504D New date for payment of tax that is not a penalty
505 Due dates for payment of imputation penalty tax, FDP penalty tax, and underestimation penalty tax
506 Knowledge offences
507 Evasion or similar offence
507B Recovery of civil penalties
508 Taxes that may be recovered
509 Transfer of excess tax within taxpayer's accounts
510 Transfer of excess tax to another taxpayer
511 Instalment arrangements
512 Section 181 repealed
513 Section 183 repealed
514 Remission for reasonable cause
514B Small amounts of penalties and interest not to be charged
515 Remission on application
516 Payments into, and out of, Listed PAYE Intermediary Bank Account
517 Power to make interim payments of WFF tax credit
Part 3Amendments to Goods and Services Tax Act 1985
518 Goods and Services Tax Act 1985
519 Interpretation
520 Meaning of term supply
520B Supply of certain imported services
521 Time of supply
522 Value of supply of goods and services
523 Zero-rating of goods
524 Zero-rating of services
525 New section 11C inserted
11C Treatment of supplies by operators of loyalty programmes
526 Taxable periods
526B Fringe benefits and entertainment expenses
527 Persons making supplies in course of taxable activity to be registered
528 Group of companies
Part 4Amendments to KiwiSaver Act 2006
529 KiwiSaver Act 2006
530 Interpretation
531 Section 13 repealed
531B Other situations when automatic enrolment rules do not apply
532 Eligibility to be exempt employer
532B Involuntary transfers
533 What happens when initial back-dated validation ends, with no confirmed back-dated validation?
533B Contribution rate
534 How and when interest is paid on refunds
535 Refunds of employer contribution by Commissioner if employee opts out
536 General
537 Compulsory employer contribution amount: general rule
538 New sections 101FB and 101FC inserted
101FB Grace periods: employers
101FC De minimis: other contributions
101FC De minimis: other contributions and hybrid schemes amount
539 Rules: providers
539B Terms relating to members' tax credits implied into trust deed
539C Terms relating to lump sum payments by complying superannuation funds
540 Crown contribution
541 Regulations relating to mortgage diversion facility
541B Schedule 1––KiwiSaver scheme rules
9 Withdrawal on death
Part 5Amendments to Income Tax Act 2004
542 Income Tax Act 2004
542B New section CC 8B inserted
542C What is a transfer of value?
542D Returns of capital: off-market share cancellations
542E Treasury stock acquisitions
543 Foreign investment fund income
543B Available subscribed capital amount
544 Amounts derived in connection with employment
545 Meaning of expenditure on account of an employee
545B Benefits, pensions, compensation, and government grants
546 New section CR 3 added
CR 3 Income for general insurance outstanding claims reserve
546B Section CW 3B repealed
547 Expenditure on account, and reimbursement, of employees
548 New sections CW 13B and CW 13C inserted
CW 13B Relocation payments
CW 13C Payments for overtime meals
CW 13C Payments for overtime meals and certain other allowances
548B Local and regional promotion bodies
549 Benefits provided instead of allowances
549B Section CX 24 replaced
CX 24 Accommodation
549C Government grants to businesses
549D New heading inserted
549E New section CX 44G inserted
CX 44G Disposal of pre-1990 forest land units
549F Determining tax liabilities
549G New section DB 8B inserted
DB 8B Interest or expenditure connected to stapled debt security
549H Cost of revenue account property
550 Gifts of money by company
550B New section DB 46B inserted
DB 46B Liabilities for emissions
550C Criteria for approval of share purchase schemes: before period of restriction ends
550D Employment-related activities
550E Interpretation: reimbursement and apportionment
550F Forestry business on land bought from the Crown, Maori owners, or holding company: no deduction
551 New section DT 1A inserted
552 Arrangement for petroleum exploration expenditure and sale of property
553 Petroleum development expenditure
554 Disposal of petroleum mining asset to associate
554B Amount written off by holding company
555 New section DW 3 added
DW 3 Deduction for general insurance outstanding claims reserve
555B Prepayments
555C Pool method: calculating amount of depreciation
556 Economic rate for plant, equipment, or building, with high residual value
557 Annual rate for item acquired in person's 1995–96 or later income year
557B Meaning of adjusted tax value
558 Section EJ 11 replaced
EJ 11 Petroleum development expenditure: default allocation rule
EJ 11B Petroleum development expenditure: reserve depletion method
559 Relinquishing petroleum permit
560 New sections EJ 12B and EJ 12C inserted
EJ 12B Dry well drilled
EJ 12C Well not producing
561 Disposal of petroleum mining asset
562 Sections EJ 17 and EJ 18 replaced
EJ 18 Meaning of petroleum mining development
562B What spreading methods do
563 IFRS taxpayer method
564 IFRS method
565 Determination alternatives to IFRS
566 Expected value method and equity-free fair value method
566B New section EW 21 inserted
566C Default method
566D Failure to use method for financial reporting purposes
567 Change of spreading method
568 When calculation of base price adjustment required
568B Base price adjustment formula
568C Direct control interests
568D Direct income interests
568E Direct income interests in FIFs
569 Exemptions: direct income interests in FIF in grey list country
570 Use of particular calculation methods required
571 Comparative value method
572 Fair dividend rate method: usual method
573 Fair dividend rate method: method for unit valuers and persons valuing interests daily
574 Cost method
575 Codes: comparative value method, deemed rate of return method, fair dividend rate method, and cost method
576 Measurement of cost
577 Transitional rule for IFRS financial reporting method
578 New sections EZ 51 and EZ 52 added
EZ 51 Transitional rule for financial reporting method
EZ 52 Transitional rule for changes from the fair value method
578B Floating rate of interest on debentures
578C Interest on debentures issued in substitution for shares
578D New section FC 2B inserted
FC 2B Stapled debt securities
578E Rules for calculating New Zealand group debt percentage
578F New Zealand net equity of New Zealand banking group
579 Section GC 14EB repealed
580 Dividends from qualifying company
580B Modification of agency provisions in respect of income from company debentures
581 Effect of failure to meet eligibility requirements for entities
582 Investor membership requirement
583 Investor interest size requirement
584 Further eligibility requirements relating to investments
585 Unlisted company may choose to become portfolio listed company
586 Becoming portfolio investment entity
587 Credits received by portfolio tax rate entity or portfolio investor proxy
588 Determination of amount of credit in certain cases
589 Credit of tax for imputation credit
590 Credit of tax for dividend withholding payment credit in hands of shareholder
591 Credits in respect of dividends to non-resident investors
592 Special rules for holding companies
592B Credits arising to imputation credit account
593 Allocation rules for imputation credits
594 Amount of imputation credit to be attached to cash distribution
595 Notional distribution deemed to be dividend
596 Amount of imputation credit to be attached to cash distribution
597 Notional distribution deemed to be dividend or taxable Maori authority distribution
598 Branch equivalent tax account of company
599 Credits and debits arising to branch equivalent tax account of company
600 Debits and credits arising to group branch equivalent tax account
601 Use of consolidated group credit to reduce dividend withholding payment, or use of group or individual debit to satisfy income tax liability
602 Allocation rules for dividend withholding payment credits
603 Dividend with both imputation credit and dividend withholding payment credit attached
604 Conduit tax relief account
605 Credits arising to conduit tax relief account
606 Debits arising to conduit tax relief account
607 Consolidated group conduit tax relief account
608 Credits arising to group conduit tax relief account
609 Debits arising to group conduit tax relief account
610 Retirement scheme contributors
611 Application of RWT rules
612 Resident withholding tax deductions from dividends deemed to be dividend withholding payment credits
613 Definitions
614 Schedule 16—Depreciable land improvements
Part 6Amendments to other Acts and regulations
Income Tax Act 1994
615 Income Tax Act 1994 amended
616 Exempt income—employee allowances and expenditure on account of employee
617 Meaning of “fringe benefit”
“fringe benefit”
617B Accrual expenditure
618 Special and provisional economic rates
618B Use of consolidated group credit to reduce dividend withholding payment, or use of group or individual debit to satisfy income tax liability
619 Definitions
619B Schedule 6A—Specified types of entertainment
620 Schedule 16—Depreciable land improvements
Income Tax Act 1976
621 Special and provisional economic rates
622 Schedule 21–Depreciable land improvements
Estate and Gift Duties Act 1968
622B Interpretation
Stamp and Cheque Duties Act 1971
622C Interpretation
Taxation Review Authorities Act 1994
622D Hearing of objections by an Authority
Taxation (Business Taxation and Remedial Matters) Act 2007
623 Use of consolidated group credit to reduce dividend withholding payment or use of group or individual debit to satisfy income tax liability
Acts referring to associated person
624 Consequential amendments to other Acts: associated person
Companies Act 1993
624B Schedule 7—Preferential claims
Insolvency Act 2006
624C Priority of payments to preferential creditors
Income Tax (Depreciation Determinations) Regulations 1993
625 Income Tax (Depreciation Determinations) Regulations 1993
Goods and Services Tax (Grants and Subsidies) Order 1992
626 Schedule—Non-taxable grants and subsidies
KiwiSaver Regulations 2006
627 KiwiSaver Regulations 2006 amended
628 What member of KiwiSaver scheme must do next to participate in mortgage diversion facility
629 What scheme provider must do to participate in mortgage diversion facility
Schedule 1 Consequential amendments to lists of defined terms: associated person
Schedule 2 Consequential amendments to other Acts: associated person
Legislative history
The Parliament of New Zealand enacts as follows: