Legislation enacted, some changes apply from 27 March

Several amendments in the Taxation (Beneficiary Income of Minors, Services-related Payments and Remedial Matters) Bill take effect from the date of enactment, 27 March, when the new legislation received Royal assent. The main provisions applying from that date relate to services-related payments, changes to the approved issuer levy rules, international tax remedial changes, and a further remedial amendment. For details see Changes Effective from 27 March 2001.

Changes effective from 27 March 2001: Taxation (Beneficiary Income of Minors, Services-related Payments and Remedial Matters) Bill

Services-related payments

Restrictive covenant payments, except for those relating to sale of a business, and exit inducement payments.

Approved issuer levy (AIL)

Amendments that:

Apply the compliance and penalty legislation to late payments of AIL, instead of imposing non-resident withholding tax.
Allow taxpayers with annual AIL liabilities of less that $500 to make payments six-monthly instead of monthly.

International tax - remedial issues

Clarifying amendments that:

Correctly allocate imputation credits between resident and non-resident partners when shares are owned by a partnership.
Ensure that the correct rate of non-resident withholding tax is paid for conduit tax relief credited non-cash dividends.

Further remedial amendment

That clarifies the period for which taxpayers who receive both a notice of assessment and a statement of account from Inland Revenue are eligible for a cancellation of use-of-money interest.