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Tax Administration Act 1994

Determinations

91AA: Determinations in relation to standard-cost household service

You could also call this:

"Rules for standard-cost services at home"

Illustration for Tax Administration Act 1994

The Commissioner can decide if a service is a standard-cost household service. You must meet some conditions for this to happen. The Commissioner considers if it will reduce costs and not affect tax revenue. The Commissioner can set rules for people who provide standard-cost household services. This includes how to calculate income tax and what costs to claim. You can find more information about exemptions in section CW 61 of the Income Tax Act 2007. If you provide a standard-cost household service, you can choose to use the Commissioner's rules. You cannot claim other costs if you use these rules. The Commissioner can change or cancel these rules at any time. The Commissioner must publish the rules within 30 days. The rules can apply to specific tax years.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM353614.

Topics:
Money and consumer rights > Taxes
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Part 5Determinations

91AADeterminations in relation to standard-cost household service

  1. For the purpose of the Inland Revenue Acts, the Commissioner may determine that a service is a standard-cost household service if—

  2. the activity of providing the service is carried on by taxpayers who are natural persons; and
    1. the activity of providing the service requires the use of each taxpayer's domestic accommodation in activities that commonly occur in a family household; and
      1. the Commissioner considers that the determination would result in a significant reduction in compliance costs for providers of the service without inappropriate—
        1. risk to the revenue of the Crown:
          1. demands on the resources of the Commissioner as a result of the administrative and enforcement duties that would be associated with the determination:
            1. inaccuracy, for a significant number of providers, of any determination by the Commissioner of the costs of providing the service.

            2. For the purpose of calculating the income tax liability of natural persons who derive an amount in a tax year from a standard-cost household service, the Commissioner may determine for the income year and the standard-cost household service—

            3. requirements for the exemption under section CW 61 of the Income Tax Act 2007 of income that a taxpayer derives from providing the standard-cost household service:
              1. a figure for a cost or costs that for the purpose of this Act may be treated as being incurred by a taxpayer in deriving exempt income from providing the standard-cost household service:
                1. a method that a taxpayer may use to calculate a figure for a cost or costs that for the purpose of this Act may be treated as being incurred by a taxpayer in deriving exempt income from providing the standard-cost household service:
                  1. a figure for a cost or costs that for the purpose of this Act may be treated as being incurred by a taxpayer in deriving income from providing the standard-cost household service:
                    1. a method that a taxpayer may use to calculate a figure for a cost or costs that for the purpose of this Act may be treated as being incurred by the taxpayer in deriving income from providing the standard-cost household service:
                      1. requirements for the application of a determination under paragraphs (a) to (e).

                        1. A taxpayer who in a tax year derives an amount from providing a standard-cost household service may, in calculating the taxpayer's income tax liability for the tax year, elect to use a figure for a cost or costs or a method of calculating such a figure that the Commissioner has determined under subsection (2) to be appropriate for the taxpayer.

                        2. A taxpayer who makes an election under subsection (3) to use a figure or method must not use, in calculating the taxpayer's income tax liability for the tax year, any figure for an additional cost of providing the standard-cost household service if the figure or method in the Commissioner's determination relates to a type of cost that includes the additional cost.

                        3. If the Commissioner is satisfied that a determination that is made under this section should be varied or rescinded, or restricted or extended in scope, the Commissioner may make a fresh determination that varies, rescinds, restricts or extends that determination.

                        4. A determination that is made by the Commissioner under this section must be published within 30 days of the making of the determination, in a publication chosen by the Commissioner.

                        5. A determination that is made by the Commissioner under this section may apply for tax years that are specified in the determination.

                        Notes
                        • Section 91AA: inserted, on , by section 120 of the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 (2003 No 122).
                        • Section 91AA(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 91AA(2): amended (with effect on 25 November 2003), on (applying for 2003–04 and subsequent income years), by section 109(1) of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).
                        • Section 91AA(2)(a): 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 91AA(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 91AA(2)(e): 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 91AA(3): 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 91AA(3): amended (with effect on 25 November 2003), on (applying for 2003–04 and subsequent income years), by section 109(3) of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).
                        • Section 91AA(4): 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 91AA(6): amended, on , by section 142(a) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
                        • Section 91AA(6): amended, on , by section 142(b) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
                        • Section 91AA(7): 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).