Taxation (Business Tax, Exchange of Information, and Remedial Matters) Bill

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Hon Michael Woodhouse

Taxation (Business Tax, Exchange of Information, and Remedial Matters) Bill

Government Bill

149—1

Contents

Explanatory note
1Title
2Commencement
Part 1
Exchange of information
Subpart 1—Amendments to Income Tax Act 2007
3Income Tax Act 2007 amended
4Section BH 1 amended (Double tax agreements)
5Section HC 26 amended (Foreign-sourced amounts: resident trustees)
6Section YA 1 amended (Definitions)
Subpart 2—Amendments to Tax Administration Act 1994
7Tax Administration Act 1994 amended
8Section 3 amended (Interpretation)
9Section 22 amended (Keeping of business and other records)
10Section 59B replaced (Disclosure of foreign trust particulars)
59BForeign trust with resident trustee: registration and disclosure
59CTime limits for registration and disclosure of changes
59DAnnual return for foreign trust
59EFees: regulations
11Section 81 amended (Officers to maintain secrecy)
12New heading and sections 91AAU to 91AAW inserted
Determinations relating to foreign account information-sharing agreements
91AAUParticipating jurisdictions for CRS applied standard
91AAVSuspension of reportable jurisdictions for CRS applied standard
91AAWNon-reporting financial institutions and excluded accounts for CRS applied standard
13New sections 142H and 142I inserted
142HFailures of financial institutions to meet requirements under Part 11B and CRS applied standard
142IFailures to meet requirements under Part 11B to provide information or self-certifications
14Section 143 amended (Absolute liability offences)
15Section 143A amended (Knowledge offences)
16Section 185E amended (Purpose)
17New heading inserted after section 185E
18Section 185F amended (Permitted choices in relation to foreign account information-sharing agreements)
19Section 185G amended (Obligations related to foreign account information-sharing agreements: registration)
20Section 185H amended (Obligations related to foreign account information-sharing agreements: due diligence)
21Section 185I amended (Obligations related to foreign account information-sharing agreements: information for NZ competent authority)
22Section 185J amended (Obligations related to foreign account information-sharing agreements: information for third parties)
23Section 185L repealed (Foreign account information-sharing agreements: anti-avoidance)
24New headings and sections 185N to 185R inserted
Multilateral convention and CRS standard
185NRequirements for financial institution
185OApplication of Common Reporting Standard
Foreign account information-sharing agreements generally
185PRequirements for persons to provide information to financial institution
185QRequirements and penalties for entities that are not persons
185RForeign account information-sharing agreements: anti-avoidance
25New section 226D inserted (Reportable jurisdictions for CRS standard and Part 11B)
226DReportable jurisdictions for CRS standard and Part 11B
26New schedule 2 inserted (Application of CRS standard)
Part 2
Business tax: AIM provisional tax method
Subpart 1—Amendments to Income Tax Act 2007
27Income Tax Act 2007 amended
28Section LA 6 amended (Remaining refundable credits: PAYE, RWT, and certain other items)
29Section RA 14 amended (Payment dates for provisional tax)
30Section RC 1 amended (What this subpart does)
31Section RC 5 amended (Methods for calculating provisional tax liability)
32New section RC 7B inserted (AIM method)
RC 7BAIM method
33Section RC 9 amended (Provisional tax payable in instalments)
34New section RC 10B inserted (Calculating amount of instalment for periods using AIM method)
RC 10BCalculating amount of instalment for periods using AIM method
35Section RC 24 amended (Calculating instalments in transitional years: GST ratio method)
36New section RM 6B inserted (Refunds for overpaid AIM method instalments)
RM 6BRefunds for overpaid AIM method instalments
37Section RP 17 amended (Tax pooling intermediaries)
38Section RP 17B amended (Tax pooling accounts and their use)
39Section RP 19B amended (Transfers for certain expected tax liabilities)
40Section YA 1 amended (Definitions)
41Schedule 3 amended (Payment of provisional tax and terminal tax)
Subpart 2—Amendments to Tax Administration Act 1994
42Tax Administration Act 1994 amended
43Section 3 amended (Interpretation)
44New heading and sections 15U to 15X inserted
Approved AIM providers
15UApproval of approved AIM providers
15VRevocation of approval of AIM providers: Commissioner
15WRevocation of approval of AIM providers: provider
15XPublication of approval, revocation, etc
45New sections 45, 45B, 45C, and 45D inserted
45AIM method information: taxpayers
45BAIM method information: approved AIM providers
45CAIM method: approval of large business AIM-capable system
45DAIM method: approval of person over $5,000,000
46New heading and sections 91AAX and 91AAY inserted
Determinations relating to AIM method
91AAXAccounting determinations relating to AIM method
91AAYClass of taxpayers that must not use AIM method
47Section 119 amended (Commissioner may determine amount of provisional tax)
48New section 120KBC inserted (Interest for AIM method provisional taxpayers)
120KBCInterest for AIM method provisional taxpayers
49Section 120KC amended (Residual income tax of new provisional taxpayer)
50Section 120KE amended (Provisional tax and rules on use of money interest)
51New section 120LB inserted (Meaning of unpaid tax and overpaid tax for tax credit transferees under AIM method)
120LBMeaning of unpaid tax and overpaid tax for tax credit transferees under AIM method
52New section 120VB inserted (Interest on overpaid AIM method provisional tax)
120VBInterest on overpaid AIM method provisional tax
53Section 141 amended (Tax shortfalls)
54Section 141B amended (Unacceptable tax position)
Part 3
Business tax and remedial matters
Subpart 1—Amendments to Income Tax Act 2007
55Income Tax Act 2007 amended
56Section CD 32 amended (Employee benefits)
57Section CE 2 amended (Value and timing of benefits under share purchase agreements)
58Section CX 6 amended (Private use of motor vehicle)
59Section CX 17 amended (Benefits provided to employees who are shareholders or investors)
60Section DB 7 amended (Interest: most companies need no nexus with income)
61Section DB 8 amended (Interest: money borrowed to acquire shares in group companies)
62New section DB 18AA inserted (Square metre rate method)
DB 18AASquare metre rate method
63Section DE 1 amended (What this subpart does)
64Section DE 2 amended (Deductions for business use)
65New section DE 2B inserted (Election to use kilometre rate method or costs method)
DE 2BElection to use kilometre rate method or costs method
66Section DE 3 amended (Methods for calculating proportion of business use)
67Section DE 4 amended (Default method for calculating proportion of business use)
68Heading and section DE 12 replaced
Kilometre rates
DE 12Kilometre rate method
69Section DF 4 amended (Payments for social rehabilitation)
70Section EA 4 amended (Deferred payment of employment income)
71Section EE 49 amended (Amount of depreciation recovery income when item partly used for business)
72Section LA 6 amended (Remaining refundable credits: PAYE, RWT, and certain other items)
73Section LB 2 replaced (Tax credits for provisional tax payments)
LB 2Tax credits for provisional tax payments
74Section LB 7 amended (Tax credits related to personal service rehabilitation payments: providers)
75Section LB 8 amended (Tax credits related to personal service rehabilitation payments: payers)
76Section MD 9 amended (Fifth requirement: full-time earner)
77New section OB 33B inserted (ICA transfer of provisional tax credit)
OB 33BICA transfer of provisional tax credit
78Table O2 amended (Imputation debits)
79Section RC 3 amended (Who is required to pay provisional tax?)
80Section RC 5 amended (Methods for calculating provisional tax liability)
81Table R1 amended (Summary of instalment dates and calculation methods for provisional tax)
82Section RC 10 amended (Calculating amount of instalment under standard and estimation methods)
83Section RD 3 amended (PAYE income payments)
84Section RD 6 amended (Certain benefits and payments)
85Section RD 7B amended (Treatment of certain benefits under employee share agreements)
86Section RD 8 amended (Schedular payments)
87Section RD 10 amended (Amounts of tax for PAYE income payments)
88New section RD 10B inserted (Amounts of tax for schedular payments)
RD 10BAmounts of tax for schedular payments
89Section RD 18 repealed (Schedular payments without notification)
90Section RD 60 amended (Close company option)
91Section RD 61 amended (Small business option)
92Section YA 1 amended (Definitions)
93Schedule 4 amended (Rates of tax for schedular payments)
Subpart 2—Amendments to Tax Administration Act 1994
94Tax Administration Act 1994 amended
95Section 3 amended (Interpretation)
96New heading and new section 15Y inserted
Provisional tax attribution
15YProvisional tax attributor
97Section 24G amended (Use of incorrect tax codes)
98Section 24L amended (Schedular notification)
99New sections 24LB and 24LC inserted
24LBSchedular tax rate elected by payee
24LCSchedular tax rate prescribed by Commissioner
100Section 24M amended (Exemption certificates for schedular payments)
101Section 32H amended (Providing RWT exemption certificate when person meets requirements)
102New section 45E inserted (Provisional tax attribution reconciliation statement)
45EProvisional tax attribution reconciliation statement
103Section 81 amended (Officers to maintain secrecy)
104New sections 85M and 85N inserted
85MDisclosure of information relating to some offences to the Registrar of Companies
85NDisclosure of information to approved credit reporting agencies
105Section 113A amended (Correction of minor errors in subsequent returns)
106Section 120C amended (Definitions)
107Section 120C amended (Definitions)
108Section 120KB amended (Provisional tax instalments and due dates generally)
109New section 120KBB inserted (Interest for most standard method provisional taxpayers)
120KBBInterest for most standard method provisional taxpayers
110Section 120KE amended (Provisional tax and rules on use of money interest)
111Section 120L amended (Meaning of unpaid tax and overpaid tax for provisional tax purposes)
112Section 138E amended (Certain rights of challenge not conferred)
113Section 139B amended (Late payment penalty)
114Section 139B amended (Late payment penalty)
115Section 139BA amended (Imposition of late payment penalties when financial relief sought)
116Section 139C amended (Late payment penalty and provisional tax)
117Section 142A amended (New due date for payment of tax that is not a penalty)
118Section 142B amended (Due date for shortfall penalties)
119Section 173L amended (Transfer of excess tax within taxpayer’s accounts)
120Section 173M amended (Transfer of excess tax to another taxpayer)
Subpart 3—Amendment to other enactment
121Section 27E of Student Loan Scheme Act 2011 amended (Commissioner may remove entity’s listing as charity)
Schedule 1
New schedule 2 inserted

The Parliament of New Zealand enacts as follows: