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

  • not the latest version

Hon Peter Dunne

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

Government Bill

325—2

As reported from the Finance and Expenditure Committee

Contents

Commentary

Key

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12 Section CV 17 repealed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

16B Section CZ 23 repealed

16C New section CZ 25

17 New heading and section DB 40B inserted

17B Expenditure incurred by foreign investment PIEs

18 Some definitions

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

19B Deduction for general insurance outstanding claims reserve

20 Application of subpart

20B Valuation of excepted financial arrangements

21 Valuation of emissions units issued for zero price

21B New section ED 3

21C What this subpart does

21D Total deductions in section EE 56

21E Use of money interest payable by person

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24 Section EX 39 repealed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

25B Part-year tax calculations

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28 Section EZ 32 repealed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

29B Transfer at market value

29C Alternative apportionment of interest by some excess debt entities

30 Measurement dates

31 Banking group's equity threshold

32 Transactions between group companies: income

32B Benefits provided to employee's associates

33 Grandparenting requirement

33B Measuring effective interests

34 Look-through companies are transparent

35 Disposal of financial arrangements and certain excepted financial arrangements

35B Limitation on deductions by persons with interests in look-through companies

36 LTC elections

37 Taxable distributions from foreign trusts

37B Trustees' obligations

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

40B Foreign PIE equivalents

40C What is an investor class?

41 Optional look-through rule for PIEs

41 Section HM 6B replaced

42 Investment types

43 Income sources

43B Minimum number of investors

44 Same rights to all investment proceeds

45 Modified rules for foreign investment variable-rate PIEs

45B Ending of New Zealand residence

45C When foreign PIE equivalent no longer meets requirements

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

47 Attribution periods

47B Determining net amounts and taxable amounts

48 Treatment of certain provisions made by multi-rate PIEs

48B Determining amounts for notified foreign investors

49 Quarterly calculation option

49B NRWT 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

52B New section HM 55FB inserted

53 Prescribed investor rates for certain investors: 0%

54 Use of investor classes' losses

55 Use of land losses of investor classes

55B Qualifying companies: transition into partnership

55C Qualifying companies: transition into look-through companies

56 Restrictions relating to schedular income

57 Meaning of charitable or other public benefit gift

58 Repaid foreign tax: effect on income tax liability

58B Tax credits for supplementary dividends

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

66B General rules for companies with imputation credit accounts

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

74B Who is required to pay provisional tax?

74C Alternate rate option

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

84B Certain dividends

85 Non-cash dividends

86 Section RF 11B replaced

87 Section RM 5 repealed

87B Using refund to satisfy tax liability

88 Definitions

88B When sections YC 8 to YC 19 apply

89 Reverse takeovers

90 Corporate reorganisations not affecting economic ownership

90B New section YC 19B

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

95B Schedule 19—Expenditure in avoiding, remedying, or mitigating detrimental effects of discharge of contaminant

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

105B Shareholder dividend statement to be provided by company

105C Maori authority to give notice of amounts distributed

105D Returns of income

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

109B New section 33D inserted

110 Commissioner may approve furnishing of return information by electronic means

110B Returns to annual balance date

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

113B RWT withholding reconciliation statements

113C Return requirements for multi-rate PIEs

114 Part 3A repealed

114B Application

114C Notification required that taxpayer not subject to this Part

114D Requests for income statements

114E Commissioner must issue income statement

114F Taxpayer obligations and assessment on receipt of income statement

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

119B Taxpayer assessment of income tax

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

126B Persons excluded

127 Definitions

127B Late payment penalty

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

139B Zero-rating of goods

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

151B Keeping of records

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

153B Interpretation

153BB Employees giving information to employers

153BC When subpart does not apply

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

157B New section 112B inserted

158 Crown contribution

159 New section 238

159B Schedule 1—KiwiSaver scheme rules

Amendment to Child Support Act 1991

159C Notification requirements of liable parent

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

164 Some definitions

165 Application of this subpart

165B Use of money interest payable by person

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

Amendments to Tax Administration (Form of Warrant) Regulations 2003

182 Tax Administration (Form of Warrant) Regulations 2003

183 Schedule 2—Form of warrant

Income Tax (Refund of Excess Tax) Order 2003

184 Income Tax (Refund of Excess Tax) Order 2003 revoked

Legislative history


The Parliament of New Zealand enacts as follows: