Plain language law

New Zealand law explained for everyone

Income Tax Act 2007

Purpose and interpretation

AA 1: Purpose of Act

You could also call this:

“This Act explains how income is taxed and outlines your tax responsibilities”

This Act has three main purposes that you should know about. First, it explains what a net amount of income is and sets out how it will be taxed. This means the Act defines how much money you earn after certain deductions and how the government will collect taxes on that amount.

Second, the Act tells you about your responsibilities when it comes to taxes. This includes things like what information you need to provide and when you need to pay your taxes.

Lastly, the Act provides rules for working out how much tax you owe and how to meet your tax obligations. These rules help make sure everyone understands how to calculate their taxes correctly and fulfill their duties as taxpayers.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1512308.

Topics:
Money and consumer rights > Taxes
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A 2: Commencement, or

"When this tax law begins to apply and affect your income"

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AA 2: Interpretation, or

"How to read and understand the Income Tax Act 2007"

Part A Purpose and interpretation

AA 1Purpose of Act

  1. The main purposes of this Act are—

  2. to define, and impose tax on, a net amount of income:
    1. to impose obligations concerning tax:
      1. to set out rules for calculating tax and for satisfying the obligations imposed.

        Compare
        Notes
        • Section AA 1(a): amended, on , by section 5(1) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
        • Section AA 1 list of defined terms amount: inserted, on , by section 5(2)(a) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
        • Section AA 1 list of defined terms income: inserted, on , by section 5(2)(a) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
        • Section AA 1 list of defined terms net income: repealed, on , by section 5(2)(b) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).