Taxation (Annual Rates, Returns Filing, and Remedial Matters) Bill

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Hon Peter Dunne

Taxation (Annual Rates, Returns Filing, and Remedial Matters) Bill

Government Bill

325—1

Contents

Explanatory note

1  Title

2  Commencement

Part 1
Annual rates of income tax

3  Annual rates of income tax for 2012–13 tax year

Part 2
Amendments to Income Tax Act 2007

4  Income Tax Act 2007

5  Films

6  Bonus issues in lieu of dividend

7  New section CD 7B

8  Elections to make bonus issue into dividend

9  New section CD 23B

10  Available subscribed capital (ASC) amount

11  Meaning of expenditure on account of an employee

12  Section CV 17 repealed

13  Dividends paid by qualifying companies

14  Expenditure on account, and reimbursement, of employees

15  Assistance with tax returns

16  Proceeds from disposal of investment shares

17  New heading and section DB 40B inserted

Unsuccessful software development

18  Some definitions

19  Non-resident general insurers, shippers, and film renters

20  Application of subpart

21  Valuation of emissions units issued for zero price

22  Spreading forward of deductions for repairs to fishing boats

23  Exemption for ASX-listed Australian companies

24  Section EX 39 repealed

25  Measurement of cost

26  Shareholder base other profit: profit participation policies that are existing business

27  Transitional adjustments: life risk

28  Section EZ 32 repealed

29  Disposal and acquisition upon entry

30  Measurement dates

31  Banking group's equity threshold

32  Transactions between group companies: income

33  Grandparenting requirement

34  Look-through companies are transparent

35  Disposal of financial arrangements and certain excepted financial arrangements

36  LTC elections

37  Taxable distributions from foreign trusts

38  Foreign-sourced amounts: non-resident trustees

39  Limitation on deductions by partners in limited partnerships

40  Portfolio entity tax liability and tax credits of portfolio tax rate entity for period

41  Optional look-through rule for PIEs

42  Investment types

43  Income sources

44  Same rights to all investment proceeds

45  Modified rules for foreign investment variable-rate PIEs

46  Rules for and treatment of investors in multi-rate PIEs

47  Attribution periods

48  Treatment of certain provisions made by multi-rate PIEs

49  Quarterly calculation option

50  Attributing credits to investors

51  Use of foreign tax credits by PIEs

52  Use of tax credits other than foreign tax credits by PIEs

53  Prescribed investor rates for certain investors: 0%

54  Use of investor classes' losses

55  Use of land losses of investor classes

56  Restrictions relating to schedular income

57  Meaning of charitable or other public benefit gift

58  Repaid foreign tax: effect on income tax liability

59  Meaning of full-time earner for family scheme

60  Adjustments for calculation of family scheme income

61  Treatment of distributions from superannuation schemes

62  Family scheme income from other payments

63  Third requirement: residence

64  Third requirement: residence

65  Fifth requirement: full-time earner

66  Calculation of in-work tax credit

67  ICA payment of tax

68  ICA payment of schedular income tax

69  Payment of further income tax for closing debit balance

70  Payment of further income tax when company no longer New Zealand resident

71  BETA payment of income tax

72  Consolidated ICA payment of schedular income tax

73  Consolidated BETA payment of income tax

74  Payment dates for terminal tax

75  ESCT rules and their application

76  Employer's superannuation cash contributions

77  Calculating amounts of tax for employer's superannuation cash contributions

78  Section RD 67 replaced

79  Choosing different rates for employer's superannuation cash contributions

80  Calculating amounts of tax on failure to withhold

81  Amounts of tax treated as paid to and received by superannuation funds

82  Non-cash dividends other than bonus issues in lieu

83  Bonus issues in lieu

84  Non-resident passive income

85  Non-cash dividends

86  Section RF 11B replaced

87  Section RM 5 repealed

88  Definitions

89  Reverse takeovers

90  Corporate reorganisations not affecting economic ownership

91  Apportionment of income from sea transport

92  Section YD 7 repealed

93  Apportionment of premiums derived by non-resident general insurers

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

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

96  Schedule 28—Requirements for complying fund rules

97  Schedule 29—Portfolio investment entities: listed investors

98  Schedule 32—Recipients of charitable or other public benefit gifts

Part 3
Amendments to Tax Administration Act 1994

99  Tax Administration Act 1994

100  Interpretation

101  Construction of certain provisions

102  Taxpayer's tax obligations

103  Keeping of business and other records

104  Keeping of returns where information transmitted electronically

105  RWT withholding certificates

106  New section 33AA inserted

107  Annual returns of income not required

108  Section 33A repealed

109  Return not required for certain providers of personal services

110  Commissioner may approve furnishing of return information by electronic means

111  Annual returns by persons who receive family assistance credit

112  Income tax returns and assessments by executors or administrators

113  ESCT statements provided by employers

114  Part 3A repealed

115  Summary of instalments paid

116  Notices of proposed adjustment required to be issued by Commissioner

117  Taxpayers and others with standing may issue notices of proposed adjustment

118  Commissioner to make private rulings on request

119  Disclosure requirements

120  Section 92AA repealed

121  New section 92AC

122  Assessment of ESCT

123  Assessment where default made in furnishing returns

124  Time bar for amendment of income tax assessment

125  Evidence of returns and assessments

126  Commissioner to give notice of assessment to taxpayer

127  Definitions

128  Section 141JA repealed

129  Absolute liability offences

130  Knowledge offences

131  Taxpayer may apply for financial relief

132  Write-off of tax by Commissioner

133  Secure credit or debit card payment and fees

Part 4
Amendments to Goods and Services Tax Act 1985

134  Goods and Services Tax Act 1985

135  Interpretation

136  Meaning of input tax

137  Meaning of term supply

138  Imposition of goods and services tax on supply

139  Time of supply

140  Accounting basis

141  Calculation of tax payable

142  Goods and services tax incurred relating to determination of liability to tax

143  Adjustments for apportioned supplies

144  When adjustments required

145  Adjustments when person becomes registered after acquiring goods and services

146  Concurrent uses of land

147  Definitions and requirements for apportioned supplies and adjustment periods

148  Transitional accounting rules

149  Tax invoices

150  Group of companies

151  Nominated recipients of supplies

152  Liability in relation to supplies of land

Part 5
Amendments to other Acts and regulations

Amendments to KiwiSaver Act 2006

153  KiwiSaver Act 2006

154  Contribution rate

155  Treatment of unremitted deductions in holding account

156  How and when interest is paid on on-payments

157  Compulsory employer contribution amount: general rule

158  Crown contribution

159  New section 238

Amendments to Income Tax Act 2004

160  Income Tax Act 2004

161  Meaning of expenditure on account of an employee

162  Expenditure on account, and reimbursement, of employees

163  New heading and section DB 31B inserted

Unsuccessful software development

164  Some definitions

165  Application of this subpart

166  Spreading forward of deductions for repairs to fishing boats

167  Portfolio entity tax liability and rebates of portfolio tax rate entity for period

168  Definitions

Amendments to Income Tax Act 1994

169  Income Tax Act 1994

170  Certain repairs to fishing boats

Amendments to Income Tax (Depreciation Determinations) Regulations 1993

171  Income Tax (Depreciation Determinations) Regulations 1993

172  Fees

173  Payment of fees

174  Regulation 11 replaced

175  Regulation 12 revoked

Amendments to Income Tax (Determinations) Regulations 1987

176  Income Tax (Determinations) Regulations 1987

177  Publication of determinations

178  Regulation 13 replaced

Amendments to Tax Administration (Binding Rulings) Regulations 1999

179  Tax Administration (Binding Rulings) Regulations 1999

180  Fees

181  Regulation 7 revoked


The Parliament of New Zealand enacts as follows: