Minor drafting points

Clauses 22, 60, 123(9), 123(32) and 155

Submission

(Ernst & Young)

• Clause 60 – The new paragraph to be inserted in section EW 15D(2) should be labelled (ae), rather than (ad) as proposed, as the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Act (122-2) already inserted paras (ac) and (ad).
• Clause 123(32) – We suggest the proposed new definition of “ownership interest” also needs to recognise amendments inserted by the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Measures) Act 2013 and earlier in relation to corporate reorganisations and reverse takeovers. In particular we note section YC 18B modifies the general tested by ignoring “excluded preference shares”.
• Clause 155 – Under the proposed replacement of section 177A of the Tax Administration Act, illness of a taxpayer or dependant would seem to be relevant only if it occurs after the application is made for relief. Is that intended or appropriate? We suggest the wording be revised.

Comment

Officials acknowledge the minor drafting points raised by the submitter and have referred these points to the bill drafters for their consideration.

Recommendation

That the submission be noted.