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Inland Revenue

Tax Policy

Removal of duplicate provisions

No clause

Submission

(Matter raised by officials)

Section 147 of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 Act) amended schedule 20 of the Income Tax Act 2007 (which relates to expenditure on agricultural improvements).  This was intended to replace section 104 of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 Act) which had made the same amendment but with an incorrect application date.  However, the 2014 Act did not repeal the amending provision in the 2013 Act.

Likewise section 60 of the 2014 Act amended section DO 5 of the Income Tax Act 2007 (which relates to horticultural replacement planting) and was intended to replace section 33 of the 2013 Act which had made the same amendment but with an incorrect application date.  The 2014 Act did not repeal the amending provision in the 2013 Act.

Comment

Sections 33 and 104 of the 2013 Act are redundant as they were intended to be replaced by sections 60 and 147 of the 2014 Act.  Two identical provisions with different application dates should not be maintained, and therefore sections 33 and 104 of the 2013 Act should be repealed.

Recommendation

That the submission be accepted.