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Tax Administration Act 1994

Information, record-keeping, and returns - Returns - Returns and return dates

43A: Non-active companies may be excused from filing returns

You could also call this:

"Some companies don't have to file tax returns if they're not doing business."

Illustration for Tax Administration Act 1994

You do not have to file a tax return if your company is not active. Your company is not active if it does not earn any money and does not have any expenses. You must tell the Commissioner if your company starts doing business again.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM351342.

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43: Income tax returns and assessments by executors or administrators, or

"Doing tax returns for someone who has passed away"

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43B: Trustees, administrators, or executors of certain trusts or estates not required to file returns, or

"Some trusts and estates don't have to file tax returns if they have no income."

Part 3Information, record-keeping, and returns
Returns: Returns and return dates

43ANon-active companies may be excused from filing returns

  1. A company is not required to furnish a return of income in respect of any tax year if the company—

  2. is a non-active company throughout that tax year; and
    1. has made and furnished to the Commissioner, in a form approved by the Commissioner,—
      1. a declaration that it is a non-active company, and that it will notify the Commissioner if it ceases to be a non-active company; and
        1. a statement of such other matters as the Commissioner may require; and
        2. has not since the making of the declaration ceased to be a non-active company.

          1. For the purposes of this section, a company is a non-active company for a tax year if, throughout that tax year, the company—

          2. has not derived or been deemed to have derived any income; and
            1. has no deductions; and
              1. has not disposed of or been deemed to have disposed of any assets; and
                1. has not been a party to or perpetuated or continued with any transactions which, during the tax year,—
                  1. give rise to income in any person's hands; or
                    1. give rise to fringe benefits to any employee or to any former employee; or
                        1. give rise to a debit in the company's imputation credit account.

                        2. In determining whether a company complies with the requirements of subsection (2), no account shall be taken of any—

                        3. statutory company filing fees or associated accounting or other costs; or
                          1. bank charges or other minimal administration costs totalling not more than $50 in the tax year; or
                            1. interest earned on any bank account during the tax year, to the extent that the total interest does not exceed the total of any charges or costs incurred by the company to which paragraph (b) applies.

                              1. A company that is resident in New Zealand with a standard balance date need not furnish an imputation return for any tax year during which it is a non-active company.

                              2. A company that is resident in New Zealand with a non-standard balance date need not furnish an imputation return for any tax year if it is a non-active company for both the tax years in which the tax year falls.

                              3. Where at any time any paragraph of subsection (2) ceases to apply to a company that has made a declaration under this section, the company must—

                              4. notify the Commissioner that it has ceased to be a non-active company; and
                                1. provide the Commissioner with a statement, in a form approved by the Commissioner, as to—
                                  1. whether or not the company had any loss balance to be carried forward or set off against the net income of the company or any other person, or any credit balance in its imputation credit account, at the start of the tax year that began its period of non-activity; and
                                    1. whether or not there has been any change of ownership in the company since that time, whether direct or indirect; and
                                      1. whether or not the application of any of the continuity provisions would preclude the carrying forward, offsetting, or other utilisation of any tax loss or loss balance or credit balance of the company referred to in subparagraph (i).

                                      2. Notwithstanding subsections (1), (4), and (5), a non-active company shall furnish a return of income or an annual ICA return if required by the Commissioner to do so.

                                      Notes
                                      • Section 43A: inserted, on , by section 8 of the Tax Administration Amendment Act 1995 (1995 No 24).
                                      • Section 43A(1): amended, on (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
                                      • Section 43A(1)(a): amended, on (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
                                      • Section 43A(1)(b)(i): amended, on , by section 112(1) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
                                      • Section 43A(2): amended, on (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
                                      • Section 43A(2)(a): replaced, on (applying to 1997–98 and subsequent income years), by section 441(1) of the Taxation (Core Provisions) Act 1996 (1996 No 67).
                                      • Section 43A(2)(a): amended, on (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
                                      • Section 43A(2)(b): replaced, on (applying to 1997–98 and subsequent income years), by section 441(1) of the Taxation (Core Provisions) Act 1996 (1996 No 67).
                                      • Section 43A(2)(b): amended, on (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
                                      • Section 43A(2)(c): replaced, on (applying to 1997–98 and subsequent income years), by section 441(1) of the Taxation (Core Provisions) Act 1996 (1996 No 67).
                                      • Section 43A(2)(d): inserted, on (applying to 1997–98 and subsequent income years), by section 441(1) of the Taxation (Core Provisions) Act 1996 (1996 No 67).
                                      • Section 43A(2)(d): amended, on (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
                                      • Section 43A(2)(d)(i): amended, on (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
                                      • Section 43A(2)(d)(iib): repealed, on (applying for 2009–10 income year and later income years), by section 26(1) of the Taxation (Urgent Measures and Annual Rates) Act 2008 (2008 No 105).
                                      • Section 43A(2)(d)(iii): amended, on , by section 314(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
                                      • Section 43A(3)(b): amended, on (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
                                      • Section 43A(3)(c): amended, on (effective for 2005–06 tax year and later tax years, unless the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
                                      • Section 43A(4): amended, on (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
                                      • Section 43A(4): amended (with effect on 1 April 2003), on , by section 109(1) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).
                                      • Section 43A(5): amended, on (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
                                      • Section 43A(5): amended, on (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
                                      • Section 43A(5): amended (with effect on 1 April 2003), on , by section 109(2) of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).
                                      • Section 43A(6)(a): amended, on , by section 112(2) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
                                      • Section 43A(6)(b)(i): amended, on , by section 314(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
                                      • Section 43A(6)(b)(i): amended, on (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
                                      • Section 43A(6)(b)(i): amended, on (applying to 1997–98 and subsequent income years), by section 441(2) of the Taxation (Core Provisions) Act 1996 (1996 No 67).
                                      • Section 43A(6)(b)(iii): amended, on (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
                                      • Section 43A(7): amended, on (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).