DB 1Taxes, other than GST, and penalties

1. A person is denied a deduction for the following:

2. income tax:
3. a tax imposed in a country or territory outside New Zealand that is 1 or more of the following:
   1. substantially the same as income tax:
   2. based on Articles 2.1 to 2.3 of the global anti-base erosion model rules:
   3. based on Articles 2.4 to 2.6 of those model rules:
   4. a qualified domestic minimum top-up tax, as defined in Article 10.1.1 of those model rules:
   5. substantially the same as multinational top-up tax payable because of the application of the modifications to Article 2.1 of the global anti-base erosion model rules set out in schedule 25B, item 1B (Items modifying global anti-base erosion model rules):
4. an amount withheld under section 1471 or 1472 of the Internal Revenue Code of 1986 (USA), as amended from time to time:
5. ancillary tax, unless listed in subsection (2):
6. a civil penalty under Part 9 of the Tax Administration Act 1994:
7. a tax, a penalty, or interest on unpaid tax that is—
   1. payable under the laws of a country or territory outside New Zealand; and
   2. substantially the same as a civil penalty as defined in section 3(1) of the Tax Administration Act 1994, or a criminal penalty under Part 9 of the Act, or interest imposed under Part 7 of the Act.

8. Subsection (1) does not apply to—

9. pay-as-you-earn (PAYE):
10. fringe benefit tax (FBT):
11. employer’s superannuation contribution tax (ESCT):
12. resident withholding tax (RWT):
13. non-resident withholding tax (NRWT).

14. This section overrides the general permission.