Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Bill Commentary on the Bill Hon David Parker Minister of Revenue First published in September 2021 by Policy and Regulatory Stewardship, Inland Revenue, PO Box 2198, Wellington 6140. Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Bill – commentary on the Bill ISBN 978-1-98-857328-1 (Online) © Crown Copyright This work is licensed under the Creative Commons Attribution 4.0 International Licence. In essence, you are free to copy, distribute and adapt the work, as long as you attribute the work to the Crown and abide by the other licence terms. The Persistent URL for this document is https://purl.org/nzir-tp/2021-008 The document is available at https://taxpolicy.ird.govt.nz/publications/2021/2021-commentary-argrm-bill CONTENTS Annual rates for 2021–22................................................................................7 Annual setting of income tax rates................................................................................9 GST policy items............................................................................................11 Tax treatment of cryptoassets.....................................................................................13 Definition of cryptoasset.............................................................................................15 Excluding cryptoassets from GST..............................................................................16 Input credits for capital raising...................................................................................18 Excluding cryptoassets from the financial arrangements rules...................................19 Ability to agree an apportionment method with Inland Revenue...............................21 Disposal of assets with a mix of taxable and non-taxable use....................................22 Domestic transport services supplied as part of the international transport of goods...........................................................................................................................25 Other policy items..........................................................................................29 COVID-19 information sharing – removal of time limit............................................31 Offences relating to electronic sales suppression.......................................................32 Local authority taxation – dividends and deductions.................................................36 Fair dividend rate foreign currency hedges................................................................42 Use of tax pooling to satisfy a backdated tax liability................................................54 Overseas donee status – section YZ 5 and schedule 32..............................................55 GST remedials...............................................................................................59 Modernising information requirements for GST........................................................61 Secondhand goods input tax credit – associated persons supplies.............................72 GST input tax recovery for non-resident business......................................................74 Exports of goods that are delivered to a recipient’s vessel in New Zealand..............76 Ground leases paid via a unit title body corporate......................................................77 GST B2B compulsory zero-rating of land rules.........................................................78 GST – deduction notices for members of unincorporated bodies and persons who are no longer registered...............................................................................................80 GST groups.................................................................................................................82 Non-statutory boards...................................................................................................86 More flexibility for changing end date for taxable period..........................................87 Taxable supplies of goods not yet in physical possession..........................................90 Challenge rights – assessing time-barred GST returns...............................................91 Remedial amendments to the GST apportionment rules............................................92 Zero-rated supplies of going concerns...................................