Hon Peter Dunne
Government Bill
227—3
As reported from the committee of the whole House
Key
1 Title
2 Commencement
Part 1Amendments to Income Tax Act 2007
3 Income Tax Act 2007
4 Elections to make bonus issue into dividend
5 Foreign investment fund income
6 Prevention of double taxation of share cancellation dividends
7 When attributed CFC income arises
8 When FIF income arises
9 Dividend derived from foreign company
10 Section CW 11 repealed
11 Dividends derived by qualifying companies
12 When attributed CFC loss arises
13 Ring-fencing cap on deduction
14 Foreign investment fund loss
15 When FIF loss arises
16 Ring-fencing cap on deduction: branch equivalent method
17 Section DX 3 repealed
18 Section EX 14 replaced
EX 14 Attribution: 10% threshold, not PIE
19 Attributable CFC amount
19B Net attributable CFC income or loss
19C Adjustment of fraction for excessively debt funded CFC
19D Relative debt-asset ratio for CFC
19E Attributable CFC amount and net attributable CFC income or loss: calculation rules
20 Non-attributing active CFCs
20B Applicable accounting standards for section EX 21E
21 Non-attributing active CFC: default test
22 Non-attributing active CFC: test based on accounting standard
23 CFC rules exemption
24 Section EX 35 replaced
EX 35 Exemption for interest in FIF resident in Australia
24B New resident's accrued superannuation entitlement exemption
25 Six calculation methods
26 Limits on choice of calculation methods
27 Default calculation method
28 Section EX 49 repealed
29 Branch equivalent method
30 Comparative value method
31 Fair dividend rate method: usual method
32 Fair dividend rate method for unit-valuing funds and others by choice
33 Additional FIF income or loss if CFC owns FIF
34 Codes: comparative value method, deemed rate of return method, fair dividend rate method, and cost method
35 Limits on changes of method
36 Consequences of changes in method
37 Migration of persons holding FIF interests
38 Changes in application of FIF exemptions
39 Entities emigrating from New Zealand
40 Entities ceasing to be FIFs
41 New section EX 67B inserted
EX 67B Revaluation of inherited interests in grey list companies
42 Change of FIF's balance date
43 Commissioner's default assessment power
44 What this subpart does
45 When this subpart applies
46 Interest apportionment for individuals
47 Thresholds for application of interest apportionment rules
48 New section FE 6B inserted
FE 6B Alternative apportionment of interest by some excess debt entities
49 New section FE 12B inserted
FE 12B Calculations for group for test and apportionment using interest-income ratio
49B Financial arrangements entered into with persons outside group
50 Consolidation of debts and assets
51 Total group assets
52 Banking group's New Zealand net equity
53 Identifying New Zealand parent
54 Identifying members of New Zealand group
55 Ownership interests in companies outside New Zealand group
56 CFCs in worldwide group for natural persons or trustees described in section FE 2(1)(g)
57 Identifying members of New Zealand banking group
58 New section FE 36B inserted
FE 36B Identifying members of New Zealand banking group: Crown-owned, no interest apportionment
59 Some general rules for treatment of consolidated groups
60 Eligibility rules
61 Resident's restricted amalgamations
62 FIF income or loss: arrangements for measurement day concessions
63 Section GB 40 repealed
64 Arrangements involving cancellation of conduit tax relief credits
65 Section GZ 2 is repealed
66 No CFC income interests or FIF direct income interests of 10% or more
67 Dividends derived by qualifying companies
67B Foreign-sourced amounts: non-resident trustees
68 Partnerships are transparent
69 Ring-fencing cap on attributed CFC net losses
70 Effect of attributed CFC net loss and FIF net loss from before first affected year
71 Ring-fencing cap on FIF net losses
72 Group companies using attributed CFC net losses
73 When attributed CFC net loss becomes FIF net loss
74 Credits from tax year before first affected year
75 Section LQ 5 repealed
76 Memorandum accounts
77 Credits
78 Debits
79 Opening balances of memorandum accounts
80 Shareholder continuity requirements for memorandum accounts
81 General treatment of credits and debits on resident's restricted amalgamation
82 When credits or debits due to amalgamating company but not recorded
83 Continuity of shareholding when group companies amalgamate
84 When credits or debits due to consolidated group but not recorded
85 Calculation of maximum permitted ratios
86 General rules for companies with imputation credit accounts
87 ICA payment of tax
88 ICA credit on resident's restricted amalgamation
89 ICA debit on resident's restricted amalgamation
90 FDPA refund of FDP
91 FDPA transfer to imputation credit account
92 Section OC 19 repealed
93 FDP credits attached to dividends
94 Subpart OD repealed
95 General rules for companies and other persons with branch equivalent tax accounts
96 Headings and sections OE 2 to OE 4 repealed
97 Treatment of attributed CFC income and FIF income in this subpart
98 Section OE 5 replaced
OE 5 Treatment of attributed CFC income and FIF income in this subpart
99 BETA payment of income tax on foreign income
100 Heading and section OE 6 repealed
101 BETA payment of income tax
102 Sections OE 7 and OE 8 repealed
102 Section OE 7 repealed
103 BETA refund of FDP
104 Sections OE 9 to OE 16B repealed
105 Table O7 repealed
106 Section OP 70 repealed
107 Headings and sections OP 78 to OP 80 repealed
108 Heading and sections OP 83 to OP 87 repealed
109 Sections OP 89 to OP 94 repealed
110 Heading, section OP 96, and tables O23 and O24 repealed
111 Headings and sections OP 97 and OP 98 repealed
112 Consolidated BETA payment of income tax on foreign income
113 Heading and section OP 100 repealed
114 Consolidated BETA payment of income tax
115 Sections OP 101 and OP 102 repealed
115 Section OP 101 repealed
116 Consolidated BETA refund of FDP
117 Sections OP 103 to OP 104B repealed
118 Heading and section OP 108B repealed
119 Table O25 repealed
120 Section OZ 16 repealed
121 Section OZ 17 repealed
122 Resident passive income
123 Certain dividends
124 When dividends fully imputed or fully credited
125 Non-cash dividends
125B Interest paid by approved issuers or transitional residents
126 Definitions
127 Demutualisation of insurers
128 Corporate reorganisations not affecting economic ownership
129 Residence of CTR company shareholders
130 Heading and sections YD 9 to YD 11 repealed
131 Schedule 25—Foreign investment funds
131B Schedule 31—Annualised equivalent amount for Part M
Part 2Amendments to Tax Administration Act 1994
132 Tax Administration Act 1994
133 Keeping of business and other records
134 Shareholder dividend statement to be provided by company
135 Section 30A repealed
136 New section 65B inserted
65B Information to be furnished with return by entity apportioning interest expenditure under section FE 6B
137 Section 68A repealed
138 Annual ICA return
139 Section 77 repealed
140 Determination on insurer as non-attributing active CFC
141 Remission for GST transitional taxable periods
Part 3Amendment to Stamp and Cheque Duties Act 1971
142 Section 86I replaced by new sections 86I and 86IB
86I Application of approved issuer levy and zero-rating
86IB Zero rate of approved issuer levy—requirements for securities
Legislative history
The Parliament of New Zealand enacts as follows: