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Taxation (COVID-19 Resurgence Support Payments and Other Matters) Bill (Consistent) [2021] NZBORARp 3 (2 February 2021)
Last Updated: 17 March 2021
2 February 2021
Hon David Parker, Attorney-General
LEGAL ADVICE
LPA 01 01 24
Consistency with the New Zealand Bill of Rights Act 1990: Taxation
(COVID-19 Resurgence Support Payments and Other Matters) Bill
- We
have considered whether the Taxation (COVID-19 Resurgence Support Payments and
Other Matters) Bill (the Bill) is consistent with
the rights and freedoms
affirmed in the New Zealand Bill of Rights Act 1990 (the Bill of Rights
Act).
- We
have not yet received a final version of the Bill. This advice has been prepared
in relation to the latest version of the Bill
(IRD 23415/1.12). We will provide
you with further advice if the final version includes amendments that affect the
conclusions in
this advice.
- The
Bill amends the Tax Administration Act 1994 by establishing the COVID-19
resurgence support payments (CRSP) scheme to provide
support to businesses. The
CRSP scheme is intended to provide grants to eligible persons when an escalation
in COVID-19 alert levels
occurs that results in a person suffering a reduction
in revenue. The CRSP scheme may be declared active by the Governor-General
by
Order in Council.
- The
Commissioner of Inland Revenue (Commissioner) is responsible for making a grant
to a person that has applied for the grant and
who meets the eligibility
requirements for the period of activation of the scheme. The Commissioner is
also responsible for:
- setting
out the procedure required for a person to make an application for a grant;
- determining
the eligibility requirements that a person must meet to qualify for a grant
(which must be published on an internet site
administered by the Commissioner);
and
- determining
the terms and conditions that apply to a grant.
- Other
key requirements in relation to the CRSP scheme include that a person who
applies for a grant (and, if applicable, a person
who applies for a grant on
behalf of another person) must provide information as required by the
Commissioner,1 is bound by the terms of the grant, and
must keep records referred to in s 22 of the Tax Administration Act 1994 to
demonstrate that
the eligibility requirements are met, and the CRSP terms have
not been breached. The Commissioner may also publish information related
to the
CRSP scheme, including the names of persons to whom the Commissioner has made a
grant under the scheme, and other details
related to the grant.
1 Clause 7 of the Bill inserts new s
7AAB(4) which provides ‘If a person applies for a grant on behalf of
another person, both
the person and the person in whose name the application is
made must provide information as required by the Commissioner’.
We infer
this requirement to provide information only relates to information relevant to
the purpose of the Commissioner determining
whether to make a grant.
- The
Bill also amends the Income Tax Act 2007 to increase the minimum tax credit
threshold for the 2021-22 and later tax years to account
for the increase in the
benefit abatement thresholds in 2021.
- We
have concluded that the Bill appears to be consistent with the rights and
freedoms affirmed in the Bill of Rights Act.
Jeff Orr
Chief Legal Counsel Office of Legal Counsel
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