Taxation (Tax Administration and Remedial Matters) Bill

  • enacted

Hon Peter Dunne

Taxation (Tax Administration and Remedial Matters) Bill

Government Bill


As reported from the Finance and Expenditure Committee




1 Title

2 Commencement

Part 1
Amendments to Income Tax Act 2007

3 Income Tax Act 2007

3B Available capital distribution amount

3C Attributed income of investors in multi-rate PIEs

4 Dividend within New Zealand wholly-owned group

4B Attributed income of certain investors in multi-rate PIEs

4C Distributions to investors in multi-rate PIEs

5 Taxes, other than GST, and penalties

6 New section DB 3B

6B New section DB 4B

6C Cost of revenue account property

6D New section DB 54B

7 Disposal of petroleum mining asset to associate

7B Association rebates

7C New section DZ 19

7D Valuation under herd scheme

7E Use of money interest payable by Commissioner

7F Use of money interest payable by person

7G Section EF 6 repealed

8 What is included when spreading methods used

9 IFRS financial reporting method

10 When calculation of base price adjustment required

10B Base price adjustment formula

10C Consideration when party changes from fair value method

10D Attributable CFC amount

10E Net attributable CFC income or loss

10F Non-attributing active CFC: test based on accounting standards

10G Limits on choice of calculation methods

11 Fair dividend rate method: usual method

12 Fair dividend rate method and cost method: when periods affected by share reorganisations

12B Additional FIF income or loss if CFC owns FIF

12C New section EZ 32C

13 Apportionment of interest by excess debt entity

14 Calculation of debt percentages

14B Leases for inadequate rent

15 Further eligibility requirements relating to investments

15B Portfolio entity tax liability and tax credits of portfolio tax rate entity for period

15C Outline of subpart and relationship with other Parts

15D What is a portfolio investment entity?

15E What is an investor class?

15F Intended effects for multi-rate PIEs and investors

15G New section HM 6B

15H Requirements

15I Residence in New Zealand

15J Investment types

16 Income sources

16B Maximum shareholdings in investments

16C Minimum number of investors

16D New section HM 19B

16E New section HM 19C

16F Exceptions for certain investors

16G When entity no longer meets investment or investor requirements

16H Rules for multi-rate PIEs

16I Rules for and treatment of investors in multi-rate PIEs

16J Proxies for PIE investors

16K New section HM 35C

17 Calculating amounts attributed to investors

18 When superannuation fund investor has conditional entitlement

18B Options for calculation and payment of tax

18C Provisional tax calculation option

18D New section HM 44B

18E Voluntary payments

18F Calculation of tax liability or tax credit of multi-rate PIEs

18G Use of foreign tax credits by PIEs

18H Use of tax credits other than foreign tax credits by PIEs

18I New heading and sections HM 55C to HM 55H

Special rules for foreign investment PIEs

19 Prescribed investor rates: schedular rates

20 New section HM 57B

20B Notified investor rates

20C Certain exiting investors zero-rated

20D Use of investor classes' losses

20E Use of land losses of investor classes

20F New section HM 71B

20G When elections take effect

21 New section HR 4B inserted

22 Common ownership: group of companies

22B Breach in income year in which tax loss component arises

22C New section IQ 1A inserted and amended

22D General treatment

22E Ring-fencing cap on attributed CFC net losses

22F Attributed CFC net loss from tax year before first affected year

22G Ring-fencing cap on FIF net losses

22H Group companies using attributed CFC net losses

22I Section IQ 5 repealed

23 What this subpart does

24 Calculation of New Zealand tax

24B Repaid foreign tax: effect on income tax liability

24C Repaid foreign tax: effect on FDP liability

24D Tax credits relating to attributed CFC income

24E Tax credits for multi-rate PIEs

24F Tax credits for investors in multi-rate PIEs

24G Family scheme income from amounts derived by dependent children

25 Third requirement: residence

25B Fifth requirement: full-time earner

25C Meaning of employment for this subpart

26 Payment of tax credits

27 ICA payment of tax

28 Reduction of further income tax

28B Co-operative companies' notional distributions that are dividends

29 BETA payment of income tax

30 Section OE 8 repealed

30B New section OK 6B

30C Table O17: Maori authority credits

31 Consolidated BETA payment of income tax

32 Section OP 102 repealed

32B ASCA lost excess available subscribed capital

32C Salary or wages

32D Tax pooling intermediaries

33 Tax pooling accounts and their use

34 Transfers from tax pooling accounts

35 New section RP 19B inserted

35B Refusals to transfer amounts

36 Definitions

37 No look-through rule for companies in certain cases

38 Directors' knowledge of failure to meet requirements of continuity provision

39 New section YD 3B

39B New section YZ 3

40 Schedule 1—Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe benefits

40B Schedule 6—Prescribed rates: PIE investments and retirement scheme contributions

41 Schedule 32––Recipients of charitable or other public benefit gifts

41B Schedule 39—Items for purposes of definition of special excluded depreciable property

41C Minor textual amendments to Income Tax Act 2007

Part 2
Amendments to Tax Administration Act 1994

42 Tax Administration Act 1994

43 Interpretation

44 Commissioner may access premises to obtain information

45 Power to remove and copy documents

46 Power to remove and retain documents for inspection

47 Information to be furnished on request of Commissioner

48 Court orders for production of information or return

49 Inquiry by Commissioner

50 Privilege for confidential communication between legal practitioners and their clients

51 No requirement to disclose tax advice document

52 Treatment of book or document

53 Claim that book or document is tax advice document

54 Book or document or part of book or document included in tax advice document

55 Person must disclose tax contextual information from tax advice document

56 Challenge to claim that book or document is tax advice document

57 Information requisitions in relation to offshore payments

57B New section 28D

57C Notification requirements for PIEs

57D Notification requirements for multi-rate PIEs

57E Effect of giving notice of entitlement

58 Officers to maintain secrecy

59 New section 81BA inserted

60 Other persons to maintain secrecy

61 Further secrecy requirements

62 Notices of proposed adjustment required to be issued by Commissioner

63 Section 89E repealed

63B Deemed acceptance

63C Where Commissioner accepts adjustment proposed by disputant

64 Late actions deemed to occur within response period

65 Application to High Court

65 Application to High Court

66 Disclosure notices

67 Completing the disputes process

67B New section 89P

68 Time bar for amendment of income tax assessment

69 Time bar for amending GST assessment

70 When disputant entitled to challenge assessment

71 Certain rights of challenge not conferred

72 Effect of disclosure notice: exclusion of evidence

73 Proceedings may be transferred to different hearing authorities

74 Section 138O repealed

75 Absolute liability offences

76 Knowledge offences

77 Evasion or similar offence

78 Evidence in proceedings for failure to furnish returns or information

79 Deduction of tax from payments due to defaulters

79B Procedure in District Court where defendant absent from New Zealand

79C New section 184AA

80 New section 226C added

Part 3
Remedial matters and abolition of gift duty

Amendments to Income Tax Act 2004

81 Income Tax Act 2004

82 Taxes, other than GST, and penalties

83 New section DB 3B

84 Disposal of petroleum mining asset to associate

84B Valuation under herd scheme

85 What is included when spreading methods used

85B IFRS method

85C Base price adjustment formula

85D Consideration when change from fair value method under IFRS method

86 Further eligibility requirements relating to investments

86B Portfolio entity tax liability and rebates of portfolio tax rate entity for period

86C Credits arising to Maori authority credit account

87 Modifications to measurement of voting and market value interests in case of continuity provisions

87B New section YA 5C

87C Schedule 22A—Identified policy changes

Amendment to New Zealand Superannuation and Retirement Income Act 2001

88 Section 76 of New Zealand Superannuation and Retirement Income Act 2001 repealed

Amendments to KiwiSaver Act 2006

88B Section 4 of KiwiSaver Act 2006 amended

89 New section 81B of KiwiSaver Act 2006 inserted

Amendments to Taxation Review Authorities Act 1994

90 Taxation Review Authorities Act 1994

91 General jurisdiction of Authorities

92 Section 13B repealed

93 An Authority to be a commission of inquiry

93B Evidence in proceedings before an authority

94 Challenges appealed to High Court

Amendments to Income Tax Act 1994

95 Income Tax Act 1994

96 Certain deductions not allowed

97 New section DB 2

Amendments to Taxation Review Authorities Regulations 1998

98 Taxation Review Authorities Regulations 1998

99 Interpretation

100 Application of District Court Rules 1992

101 Proceedings generally

102 Form

103 Notice of defence

104 Interlocutory applications

105 Part 3 revoked

106 Requirement for directions hearings

107 Time for directions hearing

108 Schedule

Amendment to Goods and Services Tax Act 1985

109A Goods and Services Tax Act 1985

109 Interpretation

109 Interpretation

109B Meaning of term supply

109C Value of supply of goods and services

109D Zero-rating of goods

109E Adjustments when person becomes registered after acquiring goods and services

109F Treatment on disposal

109G New section 21HB

109H Group of companies

109I Keeping of records

109J Liability in relation to supplies of land

Abolition of gift duty

110 Estate and Gift Duties Act 1968

Minor textual amendments to Income Tax Act 2007

Legislative history

The Parliament of New Zealand enacts as follows: