Taxation (KiwiSaver, Student Loans, and Remedial Matters) Bill

  • enacted

Hon Stuart Nash

Taxation (KiwiSaver, Student Loans, and Remedial Matters) Bill

Government Bill

158—3

Contents

Key
1Title
2Commencement
Part 1
Amendments to KiwiSaver Act 2006
3KiwiSaver Act 2006
4Section 4 amended (Interpretation)
4BSection 17 amended (How to opt out)
5Section 18 amended (Extension of opt-out period)
5BSection 22 amended (Employees giving information to employers)
5CSection 23 replaced (Employers must give information to Commissioner)
23Employers must give information about new employees to Commissioner
5DSection 34 amended (Opting in by person 18 years or more)
5ESection 38 amended (Providers must give notice to Commissioner if they contract directly with members)
5FSection 39 amended (Commissioner must give notice to employer if provider gives notice that employee has opted in under section 38)
6Section 48 amended (Effect of employer choice of KiwiSaver scheme)
7Section 51 amended (Completion of allocation to default KiwiSaver scheme if person does not choose his or her own KiwiSaver scheme)
8Section 56 amended (Notification of transfers and requirement to transfer funds and information)
9Section 57 amended (Involuntary transfers)
10Section 59B amended (Initial back-dated validation)
11Section 59C amended (Confirmed back-dated validation)
12Section 59D amended (No confirmed backdated validation)
13New section 63B inserted (Information on salary or wages from which deductions are made)
63BInformation on salary or wages from which deductions are made
14Section 64 amended (Contribution rate)
15Section 69 replaced (Unremitted deductions made by employers)
69Unremitted deductions made by employers
16Section 71 amended (Time at which unexplained remittances deemed to be received)
17Section 73 amended (Deductions entered in and paid out of holding account)
18Section 74 amended (Other contributions entered in and paid out of holding account)
19Section 75 amended (Initial contributions stay in holding account for 3 months)
20Section 76 repealed (Employer contributions may stay in holding account until deducted contributions paid)
21Section 78 replaced (Treatment of unremitted deductions in holding account)
78Treatment of certain unremitted deductions and employer contributions in holding account
22Section 81 amended (Refund by provider of amounts paid in excess of required amount of contribution)
23Section 85 replaced (Time when contributions treated as received for interest purposes)
85Time when deductions and employer contributions treated as received for interest purposes
24Section 88 amended (How and when interest is paid on on-payments)
25Section 93 amended (Employer contributions paid via Commissioner)
26New sections 95B to 95D inserted
95BUnremitted employer contributions
95CUnexplained remittances of employer contributions
95DTime at which unexplained remittances of employer contributions deemed to be received
27Section 96 amended (What Commissioner must do with contributions received under this subpart)
28Section 98 repealed (Short payments by employers if not enough money remitted to Commissioner to cover all of employees’ deductions and employer contributions)
29Section 98A amended (Quantifying short payments for the purposes of Income Tax Act 2007 and Tax Administration Act 1994)
30Section 99 repealed (Short payments if not enough employer contribution remitted to cover all employees)
31Section 101 amended (Refunds of employer contribution by provider)
32New section 101AA inserted (What Commissioner must do with employer contribution refunded by provider)
101AAWhat Commissioner must do with employer contribution refunded by provider
32BSection 101C amended (Employee’s requirements)
32CSection 103 amended (How to apply for savings suspension)
33Section 104 amended (Granting of savings suspension)
33BSection 105 amended (Commissioner must give notice of grant of savings suspension)
33CSection 107 amended (Employers to whom savings suspension applies)
34Section 108 amended (Savings suspensions have 3-month minimum life)
35Section 112B amended (Non-deduction notices)
36New section 221B inserted (Commissioner may make certain assumptions)
221BCommissioner may make certain assumptions
37Section 226 amended (Crown contribution: kick-start contributions)
37BSection 228 amended (Regulations)
37CNew section 243 inserted (Protection from non-compliance: Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2019)
243Protection from non-compliance: Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2019
38Schedule 1 amended (KiwiSaver scheme rules)
Part 2
Amendments to Student Loan Scheme Act 2011
39Student Loan Scheme Act 2011
39BSection 4 amended (Interpretation)
39CSection 5 amended (Meaning of unpaid amount)
42Section 25 amended (Commissioner may treat certain borrowers as being physically in New Zealand)
43Section 26 amended (Method of making application and provision of evidence and information)
44Section 27 amended (Commissioner must notify borrower and specify period or conditions when granting application)
45New section 62A inserted (Commissioner may notify employers when loan balance close to zero)
62ACommissioner may notify employers when loan balance close to zero
45BSection 72 amended (Application of this subpart)
45CSection 74 amended (Notification of Schedule 3 adjustments)
46Section 106 amended (Meaning of repayment holiday)
47Cross-heading and section 107 amended
48Section 107B amended (Grant of repayment holiday)
49Section 108 amended (Duration of repayment holiday)
50Section 108A amended (Borrowers who have had, or are having, repayment holidays under Student Loan Scheme Act 1992)
51Section 110 amended (Repayment obligations of overseas-based borrowers)
51BSection 114 amended (Notification of Schedule 3 adjustments by New Zealand-based non-resident borrowers)
52Section 115 amended (Repayment obligations of borrowers who are overseas-based for part of tax year)
52BSection 144 amended (Power of Commissioner in relation to small amounts)
52CSection 146A amended (Commissioner may grant relief from penalties)
52DSection 161A and cross-heading repealed
53Section 176 amended (Challenge to decision concerning treating borrowers as being physically in New Zealand)
54Section 182A amended (Challenge to decision concerning repayment holiday)
54BSection 189 amended (Annual administration fee)
54CSection 191 amended (Limit on repayment obligation for pay period or tax year)
54DSection 194 amended (Order in which salary or wage deductions and payments offset against borrower’s consolidated loan balance)
54ESection 195 amended (Date on which salary or wage deductions and payments treated as being made and credited)
54ESection 195 amended (Date on which salary or wage deductions and payments treated as being made and credited)
54FSection 197 amended (Write-off of consolidated loan balance)
55Section 220 amended (Application, savings, and transitional provisions)
56Schedule 1 amended (Conditions to borrower being treated as being physically in New Zealand)
57Schedule 6 amended (Application, savings, and transitional provisions)
Part 3
Amendments to other enactments
Income Tax Act 2007
58Income Tax Act 2007
59Section BB 2 amended (Main obligations)
59BSection BC 7 amended (Income tax liability of person with schedular income)
60Section CB 16A amended (Main home exclusion for disposal within 5 years)
61Section CC 1 amended (Land)
61BSection CC 1B amended (Consideration for agreement to grant, renew, extend, or transfer leasehold estate or licence)
62Section CC 1B amended (Consideration relating to grant, renewal, extension, or transfer of leasehold estate or licence)
63Section CD 4 amended (Transfers of value generally)
64Section CD 5 amended (What is a transfer of value?)
65Section CD 6 amended (When is a transfer caused by a shareholding relationship)
66Section CD 27 amended (Property made available intra-group)
67Section CD 29C amended (Transfers to shareholders by ASX-listed Australian company of shares in subsidiary)
68Section CD 38 amended (General calculation rule for transfers of value)
69New section CE 7CB inserted (Meaning of market value)
CE 7CBMeaning of market value
70Section CW 26C amended (Meaning of exempt ESS)
71New section CW 26DB inserted (Meaning of market value)
CW 26DBMeaning of market value
72Section CW 38 amended (Public authorities)
73Section CW 38B amended (Public purpose Crown-controlled companies)
74Section CW 39 amended (Local authorities)
75Section CW 56 amended (Non-resident aircraft operators)
76Section CX 17 amended (Benefits provided to employees who are shareholders or investors)
77Section CX 22 amended (Benefits to non-executive directors)
77BSection CX 56 amended (Attributed income of certain investors in multi-rate PIEs)
77CSection CZ 35 amended (Amounts derived by Te Kōwhatu Tū Moana)
78Section EE 47 amended (Events for purposes of section EE 44)
78BSection EL 3 amended (Definitions for this subpart)
78CSection EL 4 amended (Allocation of deductions for loss-making residential rental properties)
78DSection EL 5 amended (When residential portfolios sold)
78ESection EL 7 amended (When property A sold)
78FSection EL 8 repealed (Treatment of previously transferred amounts on fully-taxed disposals)
78GSection EL 15 amended (Transfers between companies in wholly-owned groups)
78HSection EL 16 amended (Interests in residential land-rich entities)
78ISection EL 18 amended (Modifications when entities transparent)
78JSection EY 30 amended (Transitional adjustments: life risk)
78KSection FB 3A amended (Residential land)
79Section FC 1 amended (Disposals to which this subpart applies)
79BSection FC 2 amended (Transfer at market value)
80Section FE 5 amended (Thresholds for application of interest apportionment rules)
81Section FE 6 amended (Apportionment of interest by excess debt entity)
81BSection FE 16B amended (Total group non-debt liabilities)
81CSection FH 1 amended (Subpart implements OECD recommendations for domestic law)
81DSection FH 5 amended (Payments by New Zealand resident or New Zealand deducting branch producing deduction without income)
81ENew section FH 5B inserted (Exception: when payee group not allowed deductions for supplies as prerequisites for payer supplies)
FH 5BException: when payee group not allowed deductions for supplies as prerequisites for payer supplies
81EBSection FH 7 amended (Payments to person outside New Zealand producing deduction without income)
81FSection FH 14 amended (Irrevocable election by owner of hybrid entity)
82Section FM 8 amended (Transactions between group companies: income)
83Section GB 27 amended (Attribution rule for income from personal services)
84Section GB 29 amended (Attribution rule: calculation)
85Section GC 10 amended (Compensating arrangement: person receiving more than arm’s length amount)
85BSection GC 16 amended (Credit rating of borrower: other than insuring or lending person)
86Section HA 13 amended (Qualifying companies’ distributions)
87Section HC 2 amended (Obligations of joint trustees for calculating income and providing returns)
88Section HC 4 amended (Corpus of trust)
89Section HC 7 amended (Trustee income)
90Section HC 10 amended (Complying trusts)
90BSection HC 14 amended (Distributions from trusts)
91Section HC 15 amended (Taxable distributions from non-complying and foreign trusts)
92Section HC 16 amended (Ordering rule for distributions from non-complying and foreign trusts)
92BSection HC 25 amended (Foreign-sourced amounts: non-resident trustees)
93Section HC 26 amended (Foreign-sourced amounts: resident trustees)
94Section HC 27 amended (Who is a settlor?)
95Section HC 28 amended (Activities treated as those of settlor)
96New section HC 31B inserted (Value transfer by deferral, or non-exercise, of right to demand payment)
HC 31BValue transfer by deferral, or non-exercise, of right to demand payment
97Section HC 33 amended (Choosing to satisfy income tax liability of trustee)
97BSection HC 36 amended (Trusts and minor beneficiary rule)
98Section HM 3 amended (Foreign PIE equivalents)
98BSection HM 6 amended (Intended effects for multi-rate PIEs and investors)
98CNew section HM 36B inserted (Calculating PIE schedular income adjustments for natural person investors)
HM 36BCalculating PIE schedular income adjustments for natural person investors
98DSection HM 55D amended (Requirements for investors in foreign investment PIEs)
98ESection HM 56 amended (Prescribed investor rates: schedular rates)
99Section HM 60 amended (Notified investor rates)
99BNew section HM 60B inserted (Investor rates provided by Commissioner)
HM 60BInvestor rates provided by Commissioner
99CNew section HZ 11 inserted (Protection from non-compliance: Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2019)
HZ 11Protection from non-compliance: Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2019
100Section IQ 4 amended (Group companies using attributed CFC net losses)
101Section LA 5 amended (Treatment of remaining credits)
101BSection LA 6 amended (Remaining refundable credits: PAYE, RWT, and certain other items)
101CSection LD 3 amended (Meaning of charitable or other public benefit gift)
102Section LD 6 amended (When donation is paid to ineligible recipient)
103Section LJ 2 amended (Tax credits for foreign income tax)
104Section LO 2 amended (Beneficiaries of trusts)
104BSection LS 2 amended (Tax credits for investors in multi-rate PIEs)
105Section LY 1 amended (Research and development tax credits)
106Section LY 3 amended (When this subpart applies)
107Section LY 8 amended (Carry forward for remaining research and development tax credits)
107BSection LZ 13 amended (Part-year override of section LY 3(2)(b))
107CSection MF 6 amended (Overpayment or underpayment of tax credit)
107DSection MK 2 amended (Eligibility requirements)
108Section OK 19 amended (Maori authority credits attached to distributions)
109Section RC 5 amended (Methods for calculating provisional tax liability)
109BSection RC 9 amended (Provisional tax payable in instalments)
110Section RC 10 amended (Calculating amount of instalment under standard and estimation methods)
110BSection RC 13 amended (Paying 2 instalments for tax year)
110CSection RC 14 amended (Paying 1 instalment for tax year)
110DSection RC 20 amended (Calculating residual income tax in transitional years)
110ESection RC 29 amended (Residual income tax of consolidated groups)
110FSection RC 33 amended (Amalgamated companies: calculating residual income tax)
110GSection RC 35B amended (Treatment of overpaid provisional tax instalments calculated using AIM method)
110HSection RC 37 amended (Availability of early-payment discounts)
111Section RD 5 amended (Salary or wages)
111BSection RE 4 amended (Persons who have withholding obligations)
111CNew section RE 10C inserted (Obligations of custodial institutions in relation to certain payments of investment income)
RE 10CObligations of custodial institutions in relation to certain payments of investment income
111DSection RF 2 amended (Non-resident passive income)
111ESection RF 4 amended (Non-resident passive income received by agents and others)
111FSection RF 12 amended (Interest paid by approved issuers or transitional residents)
112Section RZ 16 amended (Treatment of certain refunds not paid within 4-year period: 1 April 2008 to 31 March 2013)
113Section YA 1 amended (Definitions)
113BNew section YD 3BA inserted (Country of residence of joint trustees)
YD 3BACountry of residence of joint trustees
113CSchedule 21 amended (Excluded activities for research and development activities tax credits)
113DSchedule 28 amended (Requirements for complying fund rules)
114Schedule 32 amended (Recipients of charitable or other public benefit gifts)
114BAmendments to Income Tax Act 2007 consequential to enactment of Kāinga Ora–Homes and Communities Act 2019
Tax Administration Act 1994
115Tax Administration Act 1994
115BSection 3 amended (Interpretation)
116Section 22 amended (Keeping of business and other records)
116BSection 22AA amended (Records to be kept by employers and PAYE intermediaries)
116CSection 22AAB amended (Records to be kept by payers of passive income)
116CBSection 22C amended (Outline of subpart)
116DSection 22D amended (Key terms)
116ESection 22H amended (Finalising accounts)
116FSection 25B amended (Investment income information: outline of provisions)
116GSection 25E amended (Who must provide investment income information to Commissioner)
116HNew section 25MB inserted (Information from custodial institutions)
25MBInformation from custodial institutions
116ISection 25O amended (Correction of errors in investment income information)
116JSection 32E amended (Applications for RWT-exempt status)
117Section 36BB amended (Electronic format for details required for tax pooling intermediaries)
117BSection 41 amended (Annual returns by persons who receive credit under family scheme)
117CSection 68CB amended (Research and development tax credits: general approval 2019–20 income year pilot)
117DSection 68CB amended (Research and development tax credits: general approval)
117ESection 68CC amended (Research and development tax credits: greater than $2 million approval)
118Section 78D amended (Evidential requirements for tax credits)
118BSection 80KLB amended (Recovery of excess tax credits)
118CSection 80KM repealed (Summary of instalments paid)
118DSection 89C amended (Notices of proposed adjustment required to be issued by Commissioner)
119Section 91EI amended (Withdrawal of a private ruling)
120New section 91ESB inserted (Withdrawal of a short-process ruling)
91ESBWithdrawal of a short-process ruling
121Section 91FJ amended (Withdrawal of a product ruling)
121BSection 106 amended (Assessment where default made in furnishing returns)
122Section 108 amended (Time bar for amendment of income tax assessment)
122BSection 113A amended (Correction of certain errors in subsequent returns)
123Section 113E amended (Amended assessments: research and development tax credits)
123BNew section 113F inserted (Amended assessments: election under section HC 33 to satisfy trustee liability)
113FAmended assessments: election under section HC 33 to satisfy trustee liability
123CSection 120C amended (Definitions)
124Section 120KB amended (Provisional tax instalments and due dates generally)
125Section 120KBB amended (Interest for most standard method and some estimation method provisional taxpayers)
125BNew section 120KF inserted (Tolerance for provisional tax instalments)
120KFTolerance for provisional tax instalments
126Section 120L amended (Meaning of unpaid tax and overpaid tax for provisional tax purposes)
126BSection 120LB repealed (Meaning of unpaid tax and overpaid tax for certain transferees under AIM method)
126CSection 124G amended (Refusal, removal, or disallowance of status of tax agents, representatives, and nominated persons)
126DSection 124ZH amended (Approved research providers)
127Section 124ZI amended (Certificates for research and development)
128Section 138E amended (Certain rights of challenge not conferred)
129Section 139B amended (Late payment penalty)
130Section 139C amended (Late payment penalty and provisional tax)
130BSection 141JA repealed (Application of Part 9 to non-filing taxpayers)
130CNew section 142AC inserted (New due date for payment of terminal tax by certain individuals)
142ACNew due date for payment of terminal tax by certain individuals
130DSection 143A amended (Knowledge offences)
130ESection 143D amended (Offences related to disclosure of certain information by persons other than revenue officers)
131Section 173L amended (Transfer of excess tax within taxpayer’s accounts)
131BSection 184A amended (Refund of tax paid in excess made by direct credit to bank account)
132Schedule 4 amended (Reporting of employment income information)
134Schedule 7 amended (Disclosure rules)
38Agencies for research and development
39Agencies for Australian wine producer rebate
135Schedule 8 amended (Reporting of income information by individuals and treatment of certain amounts)
Goods and Services Tax Act 1985
135BGoods and Services Tax Act 1985
135CSection 5 amended (Meaning of term supply)
135DSection 8 amended (Imposition of goods and services tax on supply)
135ESection 10B amended (Estimating value of goods in supply for treatment as distantly taxable goods)
135FSection 10C amended (Election by supplier that supplies of higher-value goods be supplies of distantly taxable goods)
135GSection 12 amended (Imposition of goods and services tax on imports)
135HSection 20H amended (Goods and services tax incurred in making financial services for raising funds)
135ISection 24 amended (Tax invoices)
135JSection 24BAB amended (Receipts for supplies)
135KSection 24BAC amended (Information for importation of goods including distantly taxable goods)
135LSection 60C amended (Electronic marketplaces)
135MSection 60D amended (Approved marketplaces)
135NSection 77 amended (New Zealand or foreign currency)
135OSection 85C amended (Certain contracts entered into before 1 December 2019)
Income Tax Act 2004
136Income Tax Act 2004
137Section CW 45 amended (Non-resident aircraft operators)
137BSection MD 1 amended (Refund of excess tax)
137BSection MD 1 amended (Refund of excess tax)
138Section MD 1C amended (Treatment of certain refunds not paid within 4-year period: 2005–06, 2006–07, and 2007–08 income years)
139Section OB 1 amended (Definitions)
Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019
140Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019
141Section 34 repealed (Section 36BB amended (Electronic format for details required for tax pooling intermediaries))
141BSection 362 amended (Section MD 1 amended (Refund of excess tax))
141BBSection 364 amended (New section MD 1C inserted (Treatment of certain refunds not paid within 4-year period: 2005–06, 2006–07, and 2007–08 income years))
141CSection 370 amended (Section MD 1 amended (Refund of excess tax))
142Section 375 amended (Regulation 2 amended (Interpretation))
142BSchedule 1 amended (New schedules 7 and 8 amended)
3Small amounts of tax payable
Other enactments
Income Tax Act 1994
143Section CB 14 amended (Exemption from tax of certain aircraft operators)
143BSection MD 1 amended (Refund of excess tax)
143BSection MD 1 amended (Refund of excess tax)
Income Tax Act 1976
144Section 64A amended (Exemption from tax of certain aircraft operators)
144BSection 409 amended (Refund of excess tax)
Taxation (Research and Development Tax Credits) Act 2019
145Section 46 amended (Section 138E amended (Certain rights of challenge not conferred))
Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018
146Section 332 repealed (Section 78D amended (Evidential requirements for tax credits))
Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019
146BSection 65 amended (Section EY 30 amended (Transitional adjustments: life risk))
146CSections repealed
Accident Compensation Act 2001
147Section 11 amended (Earnings as an employee: what it does not include)
Search and Surveillance Act 2012
147BSchedule amended (Powers in other enactments to which all or part of Part 4 of Search and Surveillance Act 2012 applies)
Serious Fraud Office Act 1990
147CSection 2 amended (Interpretation)
Privacy Act 1993
147DSchedule 3 amended (Information matching provisions)
Income Tax (Adverse Event Income Equalisation Scheme Rate of Interest) Regulations 1995
148Income Tax (Adverse Event Income Equalisation Scheme Rate of Interest) Regulations 1995 revoked
Schedule 1
New Part 5 inserted into Schedule 6 of Student Loan Scheme Act 2011
Schedule 2
Amendments to Income Tax Act 2007 consequential to enactment of Kāinga Ora–Homes and Communities Act 2019
Legislative history

The Parliament of New Zealand enacts as follows: