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Income Tax Act 2007

Income - Terminating provisions

CZ 21B: Optional treatment of withdrawals from foreign superannuation schemes not included in return or assessed before 1 April 2014

You could also call this:

“Special tax option for unreported foreign super withdrawals before April 2014”

If you took money out of a foreign superannuation scheme between 1 January 2000 and 31 March 2014, and you didn’t include it in your tax return for that year, you have a special option. You can choose to include some of that money as income in your 2013-2014 or 2014-2015 tax return.

If you choose this option, you only need to include 15% of the total amount you took out as income in your chosen tax year. This is called the ‘withdrawal income’.

The extra tax you’ll need to pay is the difference between what your tax would be with this withdrawal income included, and what it would be without it.

This option overrides other rules about foreign superannuation withdrawals. It changes how the law would normally apply to the money you took out and to your interest in the foreign superannuation scheme up to 31 March 2014.

If you want more details about withdrawals from foreign superannuation schemes, you can look at section CF 3.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6035203.

Topics:
Money and consumer rights > Taxes
Money and consumer rights > Savings and retirement
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Part C Income
Terminating provisions

CZ 21BOptional treatment of withdrawals from foreign superannuation schemes not included in return or assessed before 1 April 2014

  1. This section applies when a person—

  2. derives an amount from a foreign superannuation scheme as a withdrawal other than a pension or annuity, or applies for the withdrawal of such an amount, in the period beginning on 1 January 2000 and ending with 31 March 2014; and
    1. does not include the withdrawal (the omitted withdrawal) in a return of income for the income year in which the amount was derived; and
      1. is not assessed before 1 April 2014 for income included in the omitted withdrawal; and
        1. chooses to include in a return of income for an income year (the return year) that is the 2013–14 or 2014–15 income year an amount of assessable income as relating to all omitted withdrawals from the foreign superannuation scheme.

          1. The person is treated as deriving, in the return year, from the omitted withdrawals an amount of assessable income (the withdrawal income) equal to 15% of the total amount of the omitted withdrawals.

          2. The amount of the liability of the person for income tax (the withdrawal tax liability) arising from the omitted withdrawals is the difference between the person's income tax liability for the return year, with the withdrawal income included in the person's assessable income for that year, and the income tax liability that the person would have for the return year if the withdrawal income were not included in the person's assessable income for that year.

          3. This section overrides—

          4. section CF 3 (Withdrawals from foreign superannuation scheme):
            1. for omitted withdrawals derived on or before 31 March 2014, the law that would apply in the absence of this section to the withdrawal at the time of the derivation of the withdrawal:
              1. the law that would apply in the absence of this section to the person's interest in the foreign superannuation scheme for the period ending by 31 March 2014.

                Notes
                • Section CZ 21B: inserted, on , by section 27 of the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Act 2014 (2014 No 4).