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Tax Administration Act 1994

Determinations - Determinations relating to AIM method

91AAX: Accounting and rate determinations relating to AIM method

You could also call this:

"How the Commissioner decides tax adjustments and rates for the AIM method"

Illustration for Tax Administration Act 1994

The Commissioner can decide tax adjustments and rates for the AIM method, which is used to calculate tax liabilities. You can find more information about this in section RC 7B(3)(a) of the Income Tax Act 2007. The Commissioner must think about how accurate the tax assessments will be and how much it will cost taxpayers when making these decisions. The Commissioner's decision can say when it starts to apply, which is called the implementation date. The decision can also change or cancel earlier decisions, but the Commissioner must give at least 120 days' notice before it starts. The Commissioner's decision is a type of secondary legislation, which has its own publication requirements, as explained in Part 3 of the Legislation Act 2019.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS38235.

Topics:
Money and consumer rights > Taxes
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Part 5Determinations
Determinations relating to AIM method

91AAXAccounting and rate determinations relating to AIM method

  1. The Commissioner may determine, for the purposes of section RC 7B(3)(a) of the Income Tax Act 2007, tax adjustments for accounting income and expenditure under the AIM method and tax rates for the calculation of tax liabilities under the AIM method.

  2. In making a determination the Commissioner must have regard to—

  3. the accuracy of assessments of tax liabilities that would result from the use of the tax adjustments and tax rates:
    1. the compliance costs incurred by taxpayers:
      1. the resources available to approved AIM providers.

        1. A determination may set out the tax year or years for which it is to apply, or a date from which it is to apply (the implementation date).

        2. A determination (a later determination) may provide for the extension, limitation, variation, cancellation, or revocation of an earlier determination. The Commissioner must give at least 120 days notice of the implementation date of that later determination, in a publication chosen by the Commissioner.

        3. A determination under this section is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).

        Notes
        • Section 91AAX: inserted, on (applying for the 2018–19 and later income years), by section 52(1) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
        • Section 91AAX(5): replaced, on , by section 3 of the Secondary Legislation Act 2021 (2021 No 7).