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Public 2010 No 130

Taxation (GST and Remedial Matters) Act 2010

2010 legislation changes the GST rules to prevent phoenix fraud schemes, and clarifies differences in the treatment of residential and commercial accommodation.

The Taxation (GST and Remedial Matters) Bill was introduced into Parliament on 5 August 2010. It received its first reading on 19 August, its second reading on 24th November and the third reading on 9 December.

The new legislation brings into effect changes to the GST rules to prevent "phoenix" fraud schemes, and clarifies the change-in-use rules and the GST boundary between residential and commercial accommodation.

Substantial additions to the bill were made by Supplementary Order Paper No. 187 after the bill's introduction. These measures, which were foreshadowed as part of the Government's Budget 2010 tax package, included measures to improve the integrity of social assistance programmes, reform the qualifying companies rules and clarify the depreciation rules for buildings.

The resulting Act received Royal assent on 20 December 2010.

The new Act amends the Goods and Services Tax Act 1985, Income Tax Act 2007, Tax Administration Act 1994, Income Tax Act 2004, KiwiSaver Act 2006, Stamp and Cheque Duties Act 1971, Income Tax Act 1994, Gaming Duties Act 1971, Local Government (Auckland Transitional Provisions) Act 2010, and certain regulations.