New legislation - 2006: Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 [2006 No 3]

Clarification of treaty override power

Section BH 1 Income Tax Act 2004

The amendment clarifies the override to section BH 1 of the Income Tax Act 2004 to provide double tax agreements (DTAs) enacted by Order in Council to override the Inland Revenue Acts, the Privacy Act 1993 and the Official Information Act 1982. The purpose of the amendment is to clarify which enactments are overridden by Orders in Council made pursuant to section BH 1.

Background

Overriding provisions allow regulations to be made which override all domestic legislation. In March 2002, the Regulations Review Committee recommended that, among other sections, section BH 1 of the Income Tax Act 1994 (the predecessor to the Income Tax Act 2004) be reviewed. The government agreed to review the section in its response to the report.

The amendment specifically identifies enactments that DTAs override, namely: the Inland Revenue Acts, the Privacy Act 1993 and the Official Information Act 1982.

Key features

The key amendment replaces the reference to "any enactment" in section BH 1(4) with a reference to "any other Inland Revenue Act, the Official Information Act 1982 or the Privacy Act 1993".

Application date

The amendment applies from the date of enactment, 3 April 2006.

Other pages in: Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 [2006 No 3]

• Temporary exemption from tax on foreign income for new migrants and certain returning New Zealanders
• Rewrite amendments
• Reimbursement for the use of a private motor vehicle
• Organisation approved for charitable donee status
• Resident withholding tax on dividends paid by non-resident companies
• Amendments to disputes rules
• Miscellaneous technical amendments
• GST on goods outside New Zealand at the time of supply
• GST and distributions from a trust made for no consideration between associated registered persons
• GST and international postage stamps
• GST and credit contracts legislation
• Bloodstock write-down rates
• Duty on racing
• GST on goods and services supplied to security holders
• Trans-Tasman imputation credit-streaming
• Regrassing and fertilising expenditure
• The addition of Spain to the grey list
• Unacceptable tax position
• Reverse takeovers and continuity rules
• Increase in the child tax rebate
• Income tax exemption for gaming machine income of gaming trusts
• Tax consequences of natural disasters
• Taxation of foreign hybrids and foreign tax credit rules
• Exemption for rights to benefit from employment-related foreign superannuation schemes
• New disclosure and recordkeeping rules for foreign trusts
• Treatment of distributions from cooperatives
• ACC attendant care payments
• Venture capital investment alongside the Venture Investment Fund
• Corporate migration
• Allocation of research and development tax deductions
• Taxation of share-lending transactions
• Fringe benefit tax
• Depreciation rates
• Aligning provisional tax payments with GST
• PAYE subsidy for small businesses

Date published: 23 Jun 2006

Back to top