Taxation (Budget Measures) Bill (No. 2)

1. Title

This Act may be cited as the Taxation (Budget Measures) Act (No. 2) Act 2020.

2. Commencement

This Act comes into force after receiving the Royal Assent

Part 1 - Amendments to the Income Tax Act 2007

3. Principal Act amended

This Part amends the Income Tax Act 2007 (the principal Act).

4. Section CA 1 amended (Amounts that are income)

Replace subsection (2) with the following:

(2) An amount is also income of a person if it is their income under ordinary concepts, including income of a capital nature under subpart CI.

5. Section CB 1 amended (Amounts derived from business)

Replace subsection (2) with the following:

(2) Subsection (1) does not apply to an amount that is of a capital nature except where the income falls under subpart CI.

6. Section CB 6A repealed (Disposal within 2 years: bright-line test for residential land)

Section CB 6A is repealed.

7. Section CB 16A repealed (Main home exclusion for disposal within 2 years)

Section CB 16A is repealed.

8. New subpart CI inserted

Insert a new subpart CI following CH:

Subpart CI—Capital gains

CI 1. Amount of assessed capital gains

(1) Income described under this section shall be understood to be income of the person.

(2) Where a person holds an asset over a period of time, the capital gains shall be the income received upon sale which is the current net value of the asset less the net value of the asset upon acquisition.

(3) The net value of the asset upon acquisition shall be adjusted for inflation.

(3) However, income is not capital gains where that income would already be exempt or taxable under a provision in this Act outside of this subpart.

CI 2. Rate of capital gains

The rate of taxable income for capital gains shall, in all cases, be 0.15 on each dollar of capital gains.

9. Schedule 1 amended (Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe benefits)

In clause 2, substitute “taxable income” with “taxable income expensed against gifts, payments of dividends, or distribution of profits”.

Part 2 - Amendments to the Goods and Services Tax Act 1985

10. Principal Act amended

This Part amends the Goods and Services Tax Act 1985 (the principal Act).

11. Section 2 amended (Interpretation)

(1) In subsection (1) insert the following definitions in their appropriate alphabetical order:

entry value threshold means $1,000

estimated customs value, for an item of goods, means the value of the item determined by the supplier under section 10B for comparison with the entry value threshold

(2) Omit the definitions for “basic food items”, “food”, and “sanitary products” within subsection (1).

(3) In subsection (1), insert the following definition in its appropriate alphabetical order:

redeliverer, for a supply of goods and a recipient of the supply, means a person who, under an arrangement with the recipient, delivers the goods from outside New Zealand at a place in New Zealand or arranges or assists the delivery of the goods from outside New Zealand at a place in New Zealand and—

• (a) provides the use of an address outside New Zealand to which the goods are delivered:

• (b) arranges or assists the use of an address outside New Zealand to which the goods are delivered:

• (c) purchases the goods outside New Zealand as an agent of the recipient:

• (d) arranges or assists the purchase of the goods outside New Zealand.

12. New section 4B inserted (Meaning of distantly taxable goods)

After section 4, insert:

4B. Meaning of distantly taxable goods

(1) Distantly taxable goods means items of goods that—

• (a) are moveable personal property, other than choses in action; and

• (b) are not alcoholic beverages, or tobacco or tobacco products, that are exempt from regulations made under section 406(1) of the Customs and Excise Act 1996; and

• (c) are supplied by—

  • (i) a non-resident, and the goods are outside New Zealand at the time of the supply:

  • (ii) a person who is the supplier under section 60C or 60D, as an operator of a marketplace, and the underlying supplier of the goods is a non-resident:

  • (iii) a person who is the supplier of the goods under section 60E, as a redeliverer; and

• (d) are delivered at a place in New Zealand and the supplier or an underlying supplier makes, or arranges, or assists, the delivery; and

• (e) each have—

  • (i) an estimated customs value under section 10B equal to or less than the entry value threshold:

  • (ii) a supplier that has made an election under section 10C that is effective at the time of the supply.

  (2) If distantly taxable goods are part of a supply that also includes items of goods that do not meet the requirements of subsection (1)(a) to (e), the distantly taxable goods are treated as being a supply and the other items are treated as being a separate supply.

13. Section 5 amended (Meaning of term supply)

(1) In section 5(11G), words before paragraph (a), after “a supply of goods and services”, insert “by the redeemer of the token, stamp, or voucher”.

(2) Replace section 5(11G)(a) and (b) with:

• (a) if the supply is a supply of remote services or of distantly taxable goods; or

• (b) when a supply does not meet the requirements of paragraph (a), if—

  • (i) it is not practical to treat the issue or sale as a supply of goods and services; and

  • (ii) the supplier of the goods and services and the issuer or seller of the token, stamp, or voucher are, or could be, different persons, the issuer and the supplier, or the seller and the supplier, agree, or are parties to an agreement.

(3) In section 5(27), replace the words before paragraph (a) with—

(27) The Commissioner may treat a person resident in New Zealand who receives a supply as if they were making a supply of goods or services that is chargeable with tax under section 8(1) if—

• (aa) the supply is— > > * (i) a supply of distantly taxable goods to which section 8(3)(ab) applies, or that is supplied by a resident: > > * (ii) a supply of remote services to which section 8(3)(c) applies, or that is supplied by an agent under section 60(1AB) or by an operator of a marketplace under section 60C or 60D; and

(4) In section 5(27)(a),—

• (a) after “payment of tax”, insert “or of an amount on account of tax”:

• (b) delete “under section 8B(6)”.

(5) In section 5(27)(b), before “the services”, insert “the supply of the goods is made or”.

(6) In section 5(27)(b)(ii), replace “a service supplied in New Zealand; and” with “goods, or a service, supplied in New Zealand; or”.

(7) After section 5(27)(b)(ii), insert:

• (iii) a supply of distantly taxable goods having a value that is less than the cost of the goods, if the supplier meets the requirements of section 60G(1) relating to the treatment of the fact or information; and

(8) After section 5(27), insert:

(28) The Commissioner may treat a person who is a non-resident, and is the underlying supplier for a supply of distantly taxable goods made by the operator of a marketplace, as the supplier of the goods if—

• (a) the person has knowingly notified a fact or provided information that is altered, false, or misleading; and

• (b) after the date on which the supply of the goods is made, it is found that the notification or provision of information has caused the operator of the marketplace to return a deficient amount of output tax on the supply; and

• (c) the person’s behaviour described in paragraph (a) is a repeated occurrence or the amount of tax on the supply that was not collected by the marketplace operator is substantial.

14. Section 8 amended (Imposition of goods and services tax on supply)

(1) In section 8(3), replace paragraph (a) with:

• (a) the goods are in New Zealand at the time of the supply and are not distantly taxable goods to which paragraph (ab) applies; or

  • (ab) the goods are distantly taxable goods to which subsection (4E) does not apply; or

(2) Before section 8(5), insert:

(4E) Despite subsection (3), if a non-resident is the supplier of distantly taxable goods, to which subsection (3)(ab) would apply but for this subsection, to a registered person for the purposes of carrying on the registered person’s taxable activity, the goods are treated as being supplied outside New Zealand, except if subsection (4F) applies to the supply.

(4F) Subsection (4E) does not apply to treat goods as being supplied outside New Zealand if—

• (a) the non-resident supplier chooses that this subsection apply to the supply of the goods; and

• (b) at the time of the election, the non-resident supplier reasonably expects that more than 50% of the value of the supplies made by the non-resident supplier to persons in New Zealand during the period of 12 months from the election will be made to persons who are not registered persons; and

• (c) the value of the supply is less than or equal to $1,000.

15. New section 8BB inserted (Certain supplies by non-residents: determining whether recipient is registered person)

After section 8B, insert:

8BB. Certain supplies by non-residents: determining whether recipient is registered person

(1) A non-resident registered person (the supplier) that makes a supply to a person (the recipient) of distantly taxable goods to which section 8(3)(ab) applies and involving delivery at a place in New Zealand, or of remote services to which section 8(3)(c) applies, must not treat the supply as being made to a registered person for use in the course or furtherance of the registered person’s taxable activity if the recipient does not meet the requirements of this section.

(2) A recipient meets the requirements of this section if the recipient notifies the supplier that the recipient is a registered person or provides the supplier with the recipient’s registration number or New Zealand Business Number.

(3) The Commissioner may prescribe, as an alternative to the method in subsection (2), a method that a supplier may use to determine whether the supply is made to a registered person for use in the course or furtherance of the registered person’s taxable activity, or may agree with the supplier on the use of another method to determine whether the supply is made to a registered person for use in the course or furtherance of the registered person’s taxable activity.

(4) In prescribing or agreeing to the use of an alternative method under subsection (3), the Commissioner may take into account—

• (a) the nature of the supply, including, for example, whether the supply is of goods and services that are purchased only by a registered person in the course or furtherance of the registered person’s taxable activity:

• (b) the value of the supply, including, for example, whether the supply is of a value that would be expected to be received only by a registered person in the course or furtherance of the registered person’s taxable activity:

• (c) the terms and conditions related to the provision of the goods and services, including, for example, whether the supply is of goods and services that may be leased, licensed, or otherwise made available, for use by a registered person in the course or furtherance of the registered person’s taxable activity.

16. Section 10 amended (Value of supply of goods and services)

After section 10(7B), insert:

(7C) Where a redeliverer makes a supply of distantly taxable goods to a recipient under section 60E, the value of the supply is an amount equal to the consideration paid for the goods by the recipient.

(7D) Where an operator of a marketplace makes a supply of remote services or distantly taxable goods under section 60C or 60D to a recipient who accepts an offer by the operator of a reduction in the price of the supply to the recipient, the supply is made for the reduced price.

(7E) Where a person makes a supply of services to the recipient of a supply of goods that include distantly taxable goods, and the supply of services includes services (the related services) that relate to the distantly taxable goods, the consideration for the related services is part of the consideration for the supply of the distantly taxable goods if—

• (a) the consideration for the supply of the related services is determined by reference to the items included in the supply of distantly taxable goods; and

• (b) the supply of services is made or arranged or facilitated by the supplier or underlying supplier of the distantly taxable goods; and

• (c) the supply of related services is directly in connection with the distantly taxable goods or is of insurance of the goods; and

• (d) the supply of related services would be chargeable with tax at the rate of 0% in the absence of this subsection; and

• (e) the supply of related services and the supply of distantly taxable goods do not form a single supply.

17. New sections 10B and 10C inserted

After section 10, insert:

10B. Estimating value of goods in supply for treatment as distantly taxable goods

(1) The value of an item of goods is determined under this section for the purposes of determining, when a supply of the goods is made, whether the goods are distantly taxable goods.

(2) The value of an item of goods under this section is the consideration for the supply of the item reduced by the total amount included in that consideration for—

• (a) the cost of transport and insurance charges,— > > * (i) for goods that are imported into New Zealand, for the period beginning when the item leaves the country or territory from which the goods are supplied and ending when the item is delivered in New Zealand: > > * (ii) for goods that are not imported into New Zealand, for the period beginning when the item leaves its place of origin and ending when the item is delivered in New Zealand: >

• (b) tax charged on the item under section 8:

• (c) duty payable on the item under the Customs and Excise Act 2018.

(3) The supplier of an item of goods may use a reasonable estimate of the amount referred to in subsection (2), based on the information available to the supplier at the time of the supply.

10C. Election by supplier that supplies of higher-value goods be supplies of distantly taxable goods

(1) A person (the electing supplier) who is a non-resident, or is a supplier of goods under section 60C, 60D, or 60E, may make an election under this section for a taxable period (the initial period) beginning after the election if,—

• (a) the Commissioner has not, before the election, cancelled under subsection (5)(b) an election under this section by the electing supplier; and

• (b) the electing supplier notifies the Commissioner of the election before the initial period.

(2) The Commissioner may agree with an election under subsection (1) by an electing supplier who is a non-resident, or is an operator of a marketplace or a redeliverer, if,—

• (a) at the time of the election, there are reasonable grounds for believing that 75% or more of the total value of distantly taxable goods supplied by the electing supplier to places in New Zealand in the 12-month period beginning with the first day of the initial period will consist of items having an estimated customs value equal to or less than the entry value threshold:

• (b) for an electing supplier who does not meet the requirements of paragraph (a), the Commissioner considers that agreeing with the election will not result in a risk to the integrity of the tax system, taking into account—

  • (i) whether the electing supplier and associated persons have a good history of previous compliance with the requirements of taxation laws and the taxation laws of countries and territories outside New Zealand; and

  • (ii) the total value of items of goods, each having an estimated customs value greater than the entry value threshold, that the electing supplier sells in a period and are delivered at places in New Zealand; and

  • (iii) other considerations that the Commissioner considers to be relevant.

  (3) An election under this section to which the Commissioner agrees is effective for—

• (a) goods that meet the requirements of section 4B(1)(a) to (d) for distantly taxable goods; and

• (b) the initial period; and

• (c) later taxable periods beginning before a cancellation of the election under subsection (5).

(4) For a taxable period for which the election is effective under subsection (2), a supply by the electing supplier, after the election, of an item of goods having an estimated customs value greater than the entry value threshold is a supply of distantly taxable goods if the goods are delivered at a place in New Zealand.

(5) The Commissioner may cancel an election from a date after which the election would otherwise be effective—

• (a) by notifying the electing supplier of the date on which the election ends, if the electing supplier requests the cancellation:

• (b) if paragraph (a) does not apply, by—

  • (i) notifying the electing supplier of the date of the proposed cancellation and the reasons for the proposed cancellation; and

  • (ii) considering any arguments against the proposed cancellation that are provided by the electing supplier within 30 days from the date of notification, or within a shorter or longer period if the Commissioner considers that the period is appropriate in the circumstances; and

  • (iii) notifying the electing supplier of the date on which the election is cancelled.

18. Section 11 amended (Zero-rating of goods)

(1) In subsection (1)(j)(ii), before “the recipient”, insert “the goods are not distantly taxable goods and”.

(2) After subsection (1)(j), insert:

• (jb) the supply is of distantly taxable goods to which section 60(1C)(a) applies, being a supply from an underlying supplier to an operator of a marketplace; or

(3) In subsection (1), omit paragraphs (q) and (r).

(4) Omit subsection (8E).

(5) Omit subsection (8F).

19. Section 11A amended (Zero-rating of services)

After subsection (1C), insert:

(1D) Subsection (1)(a), (c), (cb), (d), and (f) do not apply to a supply, by a registered person who is a redeliverer and supplier under section 60E, of services in relation to a supply of distantly taxable goods that is charged with tax under section 8 at a rate of more than zero.

20. Section 12 amended (Imposition of goods and services tax on imports)

After subsection (1A), insert:

(1B) For the purposes of subsection (1), the value of distantly taxable goods does not include the amounts referred to in subsection (2)(a), (c), and (d) if a registered person before the importation includes tax under section 8 at a rate of more than zero in the price of a supply of the goods.

(1C) For the purposes of determining whether an item of goods in a consignment is goods to which subsection (1B) applies, the price, before the importation, of the supply of the item is treated as not including tax under section 8 at a rate of more than zero unless the information available to the New Zealand Customs Service at the time of the importation of the item—

• (a) sufficiently identifies the item and the registered person who includes the tax in the price of the supply of the item:

• (b) is information relating to the item that is acceptable to the Commissioner for the purposes of this subsection.

21. New section 12B inserted (Reimbursement of tax by supplier if recipient charged tax on both supply and importation)

After section 12, insert:

12B. Reimbursement of tax by supplier if recipient charged tax on both supply and importation

(1) This section applies if a registered person makes a supply of goods, that involves the importation of the goods into New Zealand and is treated as being a supply of distantly taxable goods charged with tax at a rate of more than zero, and receives consideration for the supply that includes an amount as tax charged under section 8 on the supply.

(2) The registered person must reimburse the recipient of the supply for the amount received as tax charged under section 8 if the supplier receives a request from the recipient and a declaration from the recipient, or other confirmation, that the amount of tax charged under section 12 on the importation was paid when the goods were imported.

22. New sections 24BAB and 24BAC inserted

After section 24BA, insert:

24BAB. Receipts for supplies

(1) A registered person who makes a supply of distantly taxable goods at a price that includes tax under section 8(1) at a rate of more than zero must provide to the recipient of the supply, at the time of the supply, a receipt for the goods in the supply and for other goods imported with the supply containing the particulars given by subsection (2) or alternative particulars acceptable to the Commissioner.

(2) The particulars required by this subsection to be included in a receipt are—

• (a) the name and registration number of the supplier:

• (b) the date of the supply:

• (c) the date upon which the receipt is issued:

• (d) a description of the goods supplied and the other goods imported:

• (e) the consideration for the goods, and the amount of tax included, which may be expressed in the currency of the consideration received by the supplier:

• (f) information indicating the items for which the amount of tax included is more than zero:

• (g) information indicating the items for which the amount of tax included is zero.

(3) A registered person who omits to issue a receipt for a supply as required by subsection (1) and is requested by the recipient of the supply to provide a receipt for the supply must provide the receipt within 10 working days after the request.

24BAC. Information for importation of goods including distantly taxable goods

A registered person who makes a supply of distantly taxable goods must take reasonable steps to ensure that the New Zealand Customs Service has available, by the time of the importation of the goods,—

• (a) the name and registration number of the registered person:

• (b) information indicating the items included in the supply, or imported with the supply, for which the amount of tax included in the price of the supply is more than zero:

• (c) information indicating the items included in the supply, or imported with the supply, for which the amount of tax included in the price of the supply is zero:

• (d) information that is acceptable to the Commissioner in substitution for information referred to in paragraphs (a) to (c).

23. Section 60C amended (Electronic marketplaces)

(1) In section 60C(1)(a), replace “supply of remote services” with “supply of goods or a supply of remote services”.

(2) Delete section 60C(1)(b).

(3) Replace section 60C(1)(c) with:

• (c) the supply is of services made to a person resident in New Zealand or of goods made to a person involving delivery at a place in New Zealand.

(4) Replace section 60C(2) with:

(2) The operator of the marketplace is treated as making, in the course of furtherance of a taxable activity, a supply to a person (the recipient) of—

• (a) remote services if the recipient is resident in New Zealand:

• (b) items of goods, meeting the requirements of section 4B(1)(a) to (d) for distantly taxable goods, for which—

  • (i) the underlying supplier of the goods is a non-resident; and

  • (ii) the operator or the underlying supplier makes or arranges or assists the delivery of the supply to the recipient at a place in New Zealand; and

  • (iii) each item has an estimated customs value under section 10B equal to or less than the entry value threshold, if the operator has not made an election under section 10C that is effective at the time of the supply.

  (2B) Subsection (2) does not apply to a supply if—

• (a) the documentation provided to the recipient identifies the supply as made by the underlying supplier and not the marketplace; and

• (b) the underlying supplier and the operator of the marketplace have agreed that the supplier is liable for the payment of tax; and

• (c) the marketplace does not—

  • (i) authorise the charge for the supply to the recipient:

  • (ii) make or authorise the delivery of the supply to the recipient:

  • (iii) directly or indirectly set a term or condition under which the supply is made.

(2C) Subsection (2) does not apply to a supply of goods if—

• (a) the underlying supplier of the goods is a non-resident that has a branch in New Zealand; and

• (b) the operator of the marketplace treats the underlying supplier as a New Zealand resident in relation to the supply; and

• (c) in treating the underlying supplier as a New Zealand resident, the operator of the marketplace meets the requirements of section 60G(1) for information held by the operator relating to the residence of the underlying supplier.

(5) In section 60C(3), replace “supply of remote services” with “supply of goods or supply of remote services”.

24. Section 60D amended (Approved marketplaces)

(1) In section 60D(1)(a), replace “supply of remote services” with “supply of goods by a non-resident person or a supply of remote services,”.

(2) Delete section 60D(1)(b).

(3) Replace section 60D(1)(c) with:

• (c) the supply is of services made to a person resident in New Zealand or of goods made to a person involving delivery at a place in New Zealand.

(4) Replace section 60D(2) with:

(2) The operator of the marketplace is treated as making, in the course of furtherance of a taxable activity, a supply to a person (the recipient) of remote services or distantly taxable goods if—

• (a) the Commissioner, in the exercise of a discretion, approves an application under this subsection by the operator of the marketplace; and

• (b) for a supply of remote services, the recipient is resident in New Zealand; and

• (c) for a supply of goods meeting the requirements of section 4B(1)(a) to (d) for distantly taxable goods,—

  • (i) the underlying supplier of the goods is a non-resident; and

  • (ii) the operator or the underlying supplier makes or arranges or assists the delivery of the goods to the recipient at a place in New Zealand; and

  • (iii) the supply is of items of goods for which each item has an estimated customs value under section 10B equal to or less than the entry value threshold, if the operator has not made an election under section 10C that is effective at the time of the supply.

(5) In section 60D(3)(a), words before subparagraph (i), after “recipient of”, insert “the supply of goods or”.

25. New sections 60E, 60F, and 60G inserted

After section 60D, insert:

60E. When redeliverer is supplier of distantly taxable goods

(1) For a supply of goods to a recipient, a redeliverer of the goods is the supplier of the goods if—

• (a) no operator of an electronic marketplace is the supplier under section 60C(2) and (3); and

• (b) no operator of a marketplace is the supplier under section 60D(2) and (3); and

• (c) no seller or underlying supplier of the goods makes or arranges or assists the delivery of the supply to the recipient at a place in New Zealand; and

• (d) the supply meets the requirements for being a supply of distantly taxable goods when treated as being made by the redeliverer.

(2) If, in relation to a single supply of distantly taxable goods to a recipient, more than 1 redeliverer is liable to account for tax on the supply, the person treated as making the supply is the redeliverer that first enters into an arrangement relating to the supply with the recipient, or, in the absence of such an arrangement, first enters into an arrangement relating to the supply with a person acting on behalf of the recipient.

60F. Operator of marketplace or redeliverer making return based on faulty information

(1) This section applies to a registered person who is an operator of an electronic marketplace, or a redeliverer, and makes a return of a deficient amount for the total output tax allocated to a taxable period (the return period) as a consequence of relying on inaccurate, incomplete, insufficient, or misleading information—

• (a) relating to a supply of goods made through the marketplace or by the registered person as operator of the marketplace, or by the registered person as a redeliverer; and

• (b) provided by a seller or underlying supplier of the goods or by a recipient of the supply of goods.

(2) An amount equal to the deficiency in the total amount of output tax returned that arises from the inaccurate, incomplete, insufficient, or misleading information is treated as being a reduction in the total output tax allocated to the return period, if the registered person meets the requirements of section 60G.

60G. Requirements for treatment of information by operator of marketplace or redeliverer

(1) A registered person that is an operator of an electronic marketplace or a redeliverer and makes a return of a deficient amount of output tax as described in section 60F meets the requirements of this section if—

• (a) the amount of the deficiency arises from inaccurate, incomplete, insufficient, or misleading information, which may relate to the matters described in subsection (1B); and

• (b) for information relating to the matters described in subsection (1B)(a) to (c), the registered person meets—

  • (i) the applicable requirements of subsections (2) to (5), which relate to the obtaining and the interpretation of the information:

  • (ii) applicable requirements that are alternative to the requirements referred to in subparagraph (i) and are prescribed or agreed to by the Commissioner under subsection (6) subsection (6); and

• (c) the registered person relies on the information referred to in paragraph (a) in good faith and on reasonable grounds.

(2) Inaccurate, incomplete, insufficient, or misleading information referred to in subsection (1)(a) may relate to—

• (a) the residency of the underlying supplier of the goods:

• (b) the place to which the goods are delivered:

• (c) the amount of consideration paid for the supply by the recipient of the supply:

• (d) whether the registered person is the supplier of the goods:

• (e) the amount of tax charged under section 8 on the supply for which the registered person is required to account.

(3) This subsection requires a registered person that is an operator of an electronic marketplace and does not know the residency of an underlying supplier of goods in a supply, to—

• (a) treat the underlying supplier of the goods as a non-resident, if paragraph (a) does not require a different treatment; or

• (b) treat the underlying supplier of the goods as a resident if the registered person has—

  • (i) information that the underlying supplier is a company that is incorporated in New Zealand or has its centre of management in New Zealand:

  • (ii) a New Zealand business number for the underlying supplier:

  • (iii) 2 or more items of information listed in subsection (5) that are non-contradictory and support the conclusion that the underlying supplier is resident in New Zealand and are more reliable than items of information listed in subsection (5) that are held by the registered person and support the conclusion that the underlying supplier is not resident in New Zealand.

  (3) This subsection requires a registered person that is an operator of an electronic marketplace and does not know the address to which the goods in a supply are to be delivered, to—

• (a) treat the supply of goods as being made to the recipient at a place in New Zealand if the registered person—

  • (i) has 2 items of information listed in subsection (5) that are non-contradictory and support the conclusion that the recipient is located in New Zealand; and

  • (ii) does not have 2 items of information listed in subsection (5) that are non-contradictory, and support the conclusion that the recipient is located in a country or territory other than New Zealand, and are more reliable for determining the location of the recipient than are the items referred to in subparagraph (i); or

• (b) treat the supply of goods as being made to the recipient at a place outside New Zealand if a conclusion under paragraph (a) that the person is located at a place in New Zealand is not supported by items of information that are held by the registered person and meet the requirements of more than 1 paragraph of subsection (5).

(4) This subsection requires a registered person that is a redeliverer for a supply of distantly taxable goods to a recipient, and is not responsible for the purchase of the goods in the supply, to—

• (a) require the recipient of the supply to disclose the value of the consideration before the delivery of the supply; and

• (b) obtain a receipt issued by the seller of the goods or other confirmation by the seller of the value of the consideration for the supply.

(5) The items of information referred to in subsections (2)(a)(iii) and (3)(a) and (b) for a person and a supply of goods are—

• (a) an address of a physical location for the person such as a mailing or billing address:

• (b) if the person is the underlying supplier for the supply, a New Zealand GST registration number for the person:

• (c) bank details (including the account the person uses for making payments, or the billing address held by the bank, or the account to which the registered person makes payments of amounts owed to the person):

• (d) the internet protocol address of the device used by the person or another geolocation method:

• (e) the mobile country code of the international mobile subscriber identity stored on the subscriber identity module card used by the person:

• (f) the location of the person’s fixed land line:

• (g) if the person is the underlying supplier, the location from where the goods are being shipped:

• (h) other commercially relevant information.

(6) The Commissioner may—

• (a) prescribe requirements that are alternative to those listed in 1 or more of subsections (2) to (5):

• (b) agree with a person who is a marketplace operator or redeliverer on requirements that are alternative to those listed in 1 or more of subsections (2) to (5), including requirements for the amount of information to be obtained by the person that is relevant to a subsection and for the use and content of methods for checking the accuracy of the information and the conclusions drawn from the information.

(7) In prescribing or agreeing to alternative requirements for a person under subsection (6), the Commissioner may take into account—

• (a) commercially relevant information that is available to the person and the reliability of this information:

• (b) the cost for the person of complying with the requirements:

• (c) the existing methods available to the person for preventing and remedying situations where incorrect information is provided.

Part 3 - Amendments to the Excise and Excise-equivalent Duties Table

26. Excise and Excise-equivalent Duties Table

This Part amends the Excise and Excise-equivalent Duties Table (the table) as defined in the Customs and Excise Act 1996.

27. Rates of excise duty and excise-equivalent duty on alcoholic beverages amended

In the table, under headings 99.10.25F and 2203.00.12, replace the unit with “per l al” and “44.140¢” with “$29.432” in each instance.

Part 4 - Repeals

28. Repealed enactments

(1) The Urban Development Act 2018 is repealed.

(2) The Disposable Coffee Cup Charge Act 2019 is repealed.

(3) The Land Transport Management (Regional Fuel Tax) Amendment Act 2020 is repealed.

B.312 - Taxation (Budget Measures) Bill (No. 2) was authored by /u/SoSaturnistic (Labour) and Hon. Stuart Nash (IRL Figure), and is sponsored by the Associate Minister for Finance (Revenue), /u/toastinrussian (Forwards!), on behalf of the government.

Debate will conclude at 6 PM, 17/08/20