Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Bill

Hon David Parker

Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Bill

Government Bill

65—1

Contents

Explanatory note
1Title
2Commencement
3Annual rates of income tax for 2021–22 tax year
4Amendments to Goods and Services Tax Act 1985
5Section 2 amended (Interpretation)
6Section 3A amended (Meaning of input tax)
7Section 5 amended (Meaning of term supply)
8Section 6 amended (Meaning of term taxable activity)
9New section 8AA inserted (Organisation of Act’s provisions)
8AAOrganisation of Act’s provisions
10Section 11 amended (Zero-rating of goods)
11Section 11A amended (Zero-rating of services)
12New section 12C inserted (Information for importation of goods including distantly taxable goods)
12CInformation for importation of goods including distantly taxable goods
13Section 15 amended (Taxable periods)
14Section 15B amended (Taxable periods aligned with balance dates)
15Section 15C amended (Changes in taxable periods)
16Section 15D amended (When change in taxable period takes effect)
17Section 15E amended (Meaning of end of taxable period)
18New section 15EB inserted (Approval of taxable period not consisting of whole calendar months)
15EBApproval of taxable period not consisting of whole calendar months
19New cross-headings and sections 19E to 19P inserted
19ERecords of taxable supplies made by registered person
19FRecords of taxable supplies received by registered person
19GRecords of imported supplies received by registered person
19HRecords of secondhand goods received by registered person
19IRecords of supplies to nominated recipients
19JRecords of supplies by members of GST group or supplier group
19KTaxable supply information: supplies by registered person
19LTaxable supply information: supplies by member of GST group or supplier group
19MTaxable supply information: goods included in supplies of distantly taxable goods
19NSupply correction information
19OTreatment of fractional amounts of cent in information
19PCommissioner may approve use of symbols, etc, on electronically transmitted information
20New cross-heading above section 20 inserted
21Section 20 amended (Calculation of tax payable)
22Section 20H amended (Goods and services tax incurred in making financial services for raising funds)
23Section 21 amended (Adjustments for apportioned supplies)
24Section 21B amended (Adjustments when person or partnership becomes registered after acquiring goods and services)
25Section 21F amended (Treatment on disposal)
26Section 24 repealed (Tax invoices)
27Section 24BA repealed (Shared tax invoices)
28Section 24BAB repealed (Receipts for supplies)
29Section 24BAC repealed (Information for importation of goods including distantly taxable goods)
30Section 24B repealed (Records to be kept by recipient of imported goods and services)
31Section 25 amended (Credit and debit notices)
32Section 25AA amended (Consequences of change in contract for imported goods and services)
33Section 25AB amended (Consequences of change in contract for secondhand goods)
34Section 25A repealed (Commissioner may approve use of symbols, etc, on electronically transmitted invoices, receipts, and credit and debit notes)
35Section 43 amended (Deduction of tax from payment due to defaulters)
36Section 53 amended (Registered person to notify change of status)
37Section 55 amended (Group of companies)
38New section 55B inserted (Supplier group and issuing member)
55BSupplier group and issuing member
39Section 60 amended (Agents and auctioneers)
40Section 75 amended (Keeping of records)
41Section 75B amended (General rules for giving information or communicating matters)
42Section 78AA amended (Exceptions to effect of increase of tax)
43Section 78B amended (Adjustments to tax payable for persons furnishing returns following change in rate of tax)
44Section 78BA amended (Adjustments to tax payable in relation to credit and debit notes following change in rate of tax)
45Section 78G repealed (Railways vesting: zero-rating and timing of tax calculations and documents)
46Amendments to Income Tax Act 2007
47Section BC 5 amended (Taxable income)
48Section CB 6A amended (Disposal within 10 years: bright-line test for residential land)
49Section CB 16A amended (Main home exclusion for disposal within 10 years)
50Section CD 5 amended (What is a transfer of company value?)
51Section CD 39 amended (Calculation of amount of dividend when property made available)
52Section CD 43 amended (Available subscribed capital (ASC) amount)
53Section CD 44 amended (Available capital distribution amount)
54Section CW 10 amended (Dividend within New Zealand wholly-owned group)
55Section CW 39 amended (Local authorities)
56Section CX 47 amended (Government grants to businesses)
57Section CZ 40 amended (Main home exclusion for bright-line: acquisition on or after 29 March 2018)
58Section DB 8 amended (Interest: money borrowed to acquire shares in group companies)
59New section DB 9B inserted (Interest incurred on money borrowed by local authorities and lent to council-controlled organisations)
DB 9BInterest incurred on money borrowed by local authorities and lent to council-controlled organisations
60Section DB 11 amended (Negative base price adjustment)
61Section DB 20B amended (Consideration for agreement to grant, renew, extend, or transfer leasehold estate or licence)
62Cross-heading above section DB 41 replaced
63Section DB 41 amended (Charitable or other public benefit gifts by company)
64Section DF 1 amended (Government grants to businesses)
65Section DV 18B amended (Cost base for shares when debt forgiven within economic group)
66Section EE 6 amended (What is depreciable property?)
67Section EE 40 amended (Transfer of depreciable property on or after 24 September 1997)
68Section EE 44 amended (Application of sections EE 48 to EE 51)
69Section EJ 10B amended (IFRS leases)
70Section EL 3 amended (Definitions for this subpart)
71Section EM 1 amended (Australian non-attributing shares and attributing FDR method interests)
72Section EM 3 amended (What hedges does this subpart apply to?)
73Section EM 4 replaced (Irrevocable elections)
EM 4Elections
74Section EM 5 amended (Fair dividend rate hedge portions)
75New section EM 5B inserted (Fair dividend rate hedge portions: portfolio method)
EM 5BFair dividend rate hedge portions: portfolio method
76Section EM 6 amended (Income and expenditure for fair dividend rate hedge portions)
77Section EM 7 amended (Quarterly test of fair dividend rate hedge portions)
78Section EM 8 amended (Some definitions)
79Section EW 5 amended (What is an excepted financial arrangement?)
80Section EW 46C amended (Consideration when debt forgiven within economic group)
81Section FH 11 amended (Residents, or non-residents with deducting branches, having expenditure funding overseas hybrid mismatches)
82Section FH 15 amended (Definitions)
83Section FM 8 amended (Transactions between group companies: income)
84Section FO 2 amended (Amalgamation rules)
85Section FO 21 amended (When amalgamating companies are parties to financial arrangements: economic groups)
86Section GC 18 amended (Loan features disregarded by rules for transfer pricing arrangements)
87Section HF 7 replaced (Taxable Maori authority distributions)
HF 7Taxable Maori authority distributions
88Section HR 3 amended (Definitions for section HR 2: group investment funds)
89Section HR 9BA amended (Elections to treat debt funding special purpose vehicles as transparent)
90Section LB 1B amended (Treatment of tax credits of certain companies with shareholders who are employees)
91Section LE 2 amended (Use of remaining credits by companies and trustees)
92Section LY 5 amended (Eligible research and development expenditure)
93Section LY 9 amended (Orders in Council)
94Section LY 10 amended (Evaluation)
95Section MD 9 amended (Fifth requirement: earner)
96Section MX 3 amended (Wage intensity criteria)
97Section OA 9 amended (General treatment of credits and debits on resident’s restricted amalgamation)
98Section OB 4 amended (ICA payment of tax)
99Section OB 32 amended (ICA refund of income tax)
100Table O1 amended (Table O1: imputation credits)
101Table O2 amended (Table O2: imputation debits)
102Section OK 2 amended (MACA payment of tax)
103Section OK 3 amended (MACA payment of tax to other Maori authorities)
104Section OK 11 amended (MACA allocation of provisional tax)
105Section OK 12 amended (MACA refund of income tax)
106Table O17 amended (Table O17: Maori authority credits)
107Table O18 amended (Table O18: Maori authority debits)
108Section OP 12 amended (Consolidated ICA dividend derived with imputation credit)
109Section OP 30 amended (Consolidated ICA refund of income tax)
110Section RC 35B amended (Treatment of overpaid provisional tax instalments calculated using AIM method)
111Section RC 38 amended (Crediting income tax with early-payment discount)
112Section RC 40 amended (Some definitions)
113Section RD 5 amended (Salary or wages)
114Section RD 45 replaced (Unclassified benefits)
RD 45Unclassified benefits
115Section RD 67 replaced (Calculating amounts of tax for employer’s superannuation cash contributions)
RD 67Calculating amounts of tax for employer’s superannuation cash contributions
116Section RE 2 amended (Resident passive income)
117Section RE 10C amended (Obligations of custodial institutions in relation to certain payments of investment income)
118Section RE 21 amended (Basis of payment of RWT)
119Section RF 12 amended (Interest paid by approved issuers or transitional residents)
120Section RM 1 amended (What this subpart does)
121Section RM 2 amended (Refunds for overpaid tax)
122Section RM 4 amended (Overpayment on amended assessment)
123Section RM 27 amended (Application when no credits arise)
124Section RP 17 amended (Tax pooling intermediaries)
125Section RP 17B amended (Tax pooling accounts and their use)
126Section RP 19 amended (Transfers from tax pooling accounts)
127Section YA 1 amended (Definitions)
128Section YA 4 amended (General rules for giving information or communicating matters)
129Section YC 13 amended (Corporate spin-outs)
130Section YE 1 amended (References to balance dates and years)
131Section YZ 5 amended (New Zealand Memorial Museum Trust)
132Schedule 21B amended (Expenditure or loss for research and development tax credits)
133Schedule 32 amended (Recipients of charitable or other public benefit gifts)
134Amendments to Tax Administration Act 1994
135Section 3 amended (Interpretation)
136Section 14 amended (Modes of communication: general provisions)
137Section 14F amended (Giving information by personal delivery, post, fax, or electronic means)
138Section 14G amended (Contact addresses)
139Section 16C amended (Key terms)
140Section 25MB amended (Information from custodial institutions)
141New section 25NB inserted (De minimis filing requirements for certain persons)
25NBDe minimis filing requirements for certain persons
142New section 33F inserted (Research and development tax credits: extension of time for 2019–20 income year)
33FResearch and development tax credits: extension of time for 2019–20 income year
143Section 43B amended (Non-active trusts may be excused from filing returns)
144Section 68CB amended (Research and development tax credits: general approval)
145New section 68CF inserted (Research and development tax credits: extension of time for approvals for 2020–21 income year)
68CFResearch and development tax credits: extension of time for approvals for 2020–21 income year
146Section 89B amended (Commissioner may issue notices of proposed adjustment)
147Section 89L (Application to High Court)
148Section 89P amended (Challenge notice for taxpayer-initiated disputes)
149Section 108 amended (Time bar for amendment of income tax assessment)
150New section 108AB inserted (Time bar for amending assessment of KiwiSaver contributions)
108ABTime bar for amending assessment of KiwiSaver contributions
151Section 108B amended (Extension of time bars)
152Section 113 amended (Commissioner may at any time amend assessments)
153Section 113A amended (Correction of certain errors in subsequent returns)
154Section 125 amended (Certain rights of objection not conferred)
155Section 138E amended (Certain rights of challenge not conferred)
156Section 138P amended (Powers of hearing authority)
157Section 139A amended (Late filing penalty for certain returns)
158Section 139AA amended (Non-electronic filing penalty)
159Section 139B amended (Late payment penalty)
160New section 141EE inserted (Penalty for acquiring or possessing electronic sales suppression tools)
141EEPenalty for acquiring or possessing electronic sales suppression tools
161Section 141FB amended (Reduction of penalties for previous behaviour)
162New section 141GB inserted (Reduction of electronic sales suppression penalties)
141GBReduction of electronic sales suppression penalties
163Section 143 amended (Absolute liability offences)
164Section 143A amended (Knowledge offences)
165New sections 143BB and 143BC inserted
143BBManufacturing or supplying electronic sales suppression tools
143BCAcquiring or possessing electronic sales suppression tools
166Section 143D amended (Offences related to disclosure of certain information by persons other than revenue officers)
167Section 157A amended (Application of Parts 7 and 9 to defaulters)
168Section 173K amended (Application)
169Section 183ABAB amended (Remission of interest for taxpayers affected by COVID-19: general rules)
170Section 183C amended (Cancellation of interest)
171Section 225 amended (Regulations)
172Section 225AA repealed (Regulations: co-operative dairy and marketing companies)
173Schedule 7 amended (Disclosure rules)
174Schedule 8 amended (Reporting of income information by individuals and treatment of certain amounts)
175Amendments to Child Support Act 1991
176Section 40AA amended (Interpretation for purposes of sections 40 to 45)
177Section 40 amended (Estimated income)
178Section 44 amended (End-of-year reconciliation)
179Section 81A replaced (Amendments of assessments arising from living circumstances existing at time initial assessment made)
81AAmendments of assessments arising from living circumstances existing at time when assessment begins
180Section 87A amended (Four-year time bar for amendment of certain assessments)
181Section 88 amended (Notice of assessment of formula assessment of child support)
182Section 89H amended (Applications for exemptions under this subpart)
183Section 152B amended (Offsetting child support payments)
184Section 180D amended (Sections 180B and 180C to cover child support penalties)
185Schedule 1 amended (Application, transitional, and savings provisions relating to amendments to Act made on or after 1 April 2015)
186Schedule 3 amended (Expenditure on children)
187Amendments to KiwiSaver Act 2006
188Section 4 amended (Interpretation)
189Section 80 amended (Refund by Commissioner of amounts paid in excess of required amount of deduction or if employee opts out)
190Section 81 amended (Refund by provider of amounts paid in excess of required amount of contribution or if member opts out)
191Section 81B amended (Residual refunds)
192Section 83 amended (Unclaimed money held by Commissioner)
193New cross-heading and section 91B inserted
91BTime bar for refunding contributions
194Section 100 amended (Refunds of employer contribution by Commissioner if employee opts out)
195Section 101 amended (Refunds of employer contribution by provider)
196Section 101AA amended (What Commissioner must do with employer contribution refunded by provider)
197Section 114 amended (Refunds if employee loses, etc, savings suspension notice)
198Amendments to Student Loan Scheme Act 2011
199Section 211 amended (Meaning of notify)
200Section 212 amended (Meaning of notify a person in writing)
201Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 amended
202Co-operative Dairy Companies Income Tax Regulations 1955 revoked
203Cooperative Milk Marketing Companies Income Tax Regulations 1960 revoked
204Cooperative Pig Marketing Companies Income Tax Regulations 1964 revoked

The Parliament of New Zealand enacts as follows: