Taxation (International Investment and Remedial Matters) Bill

  • enacted

Hon Peter Dunne

Taxation (International Investment and Remedial Matters) Bill

Government Bill


As reported from the committee of the whole House



1 Title

2 Commencement

Part 1
Amendments 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10 Section CW 11 repealed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17 Section DX 3 repealed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

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

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28 Section EX 49 repealed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

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

49 New section FE 12B inserted

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

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

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 2
Amendments 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

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 3
Amendment to Stamp and Cheque Duties Act 1971

142 Section 86I replaced by new sections 86I and 86IB

Legislative history

The Parliament of New Zealand enacts as follows: