A number of reforms that were due to come into effect on 1 April are now likely to be deferred in order to allow for more discussion and to provide more certainty, given that the Bill will not be passed before August 2009.
The measures to be deferred include:
Annex: Recommended application date changes
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Reforms
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Application date in current bill
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Recommended application date
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International tax changes
Active income exemption for CFCs, exemption for foreign dividends and associated base maintenance measures
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Income year 2009-10
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2009-10 income year only for balance dates on or after 30 June; 2010-11 income year for other taxpayers
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Associated persons provisions
Addressing deficiencies in the associated persons rules
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Land provisions (with exceptions) for land acquired on or after 1 April 2009. For those in the building trade, land on which improvements are begun on or after 1 April 2009.
Other provisions apply from the 2009-10 income year
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For land provisions (with exceptions) – land acquired on or after the date of the bill’s enactment. For those in the building trade, land on which improvements are begun on or after the date of the bill’s enactment
Other provisions – from 2010-11 income year
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Payroll giving
Voluntary payroll giving scheme to allow employees to donate to charities and receive an immediate tax benefit
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1 April 2009
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Three months after date of enactment
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KiwiSaver amendments
Remedial amendments
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Range from 1 July 2007 to date of assent
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The amendment to the KiwiSaver Act will have a date of assent application rather than 1 October 2008
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Portfolio investment entity rules
Remedial amendments
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1 April 2009 for rewrite provisions
Remedial amendments to apply from 1 October 2007 when KiwiSaver started
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Rewrite provisions to change to 1 April 2010
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