Repeal of section 2(4) of the Tax Admininstration Act 1994

(Clause 63)

Summary of proposed amendment

Section 2(4) of the Tax Administration Act 1994 is being repealed. Section 2(4) specifies that provisions in the Tax Administration Act that correspond to provisions in the Income Tax Act 1976 do not apply generally to any of the Inland Revenue Acts other than the Income Tax Act 2007.

Application date

The amendment will apply from the date of enactment.

Key features

Section 2(4) of the Tax Administration Act 1994 will be repealed. This means that provisions which originated in the Income Tax Act 1976 will now generally apply to the Inland Revenue Acts.

Background

Under section 2(4) of the Tax Administration Act 1994, provisions that correspond to provisions of the Income Tax Act 1976 do not generally apply to any of the Inland Revenue Acts other than the Income Tax Acts. This provision was transitional in nature and applied because many of the sections of the Tax Administration Act 1994 originated from the Income Tax Act 1976, and such provisions applied only to income tax.

However, in 1996 the definition of “tax” in section 3(1) of the Tax Administration Act 1994 was substituted and is no longer restricted to income tax. In conjunction with the replacement of other parts of the Tax Administration Act 1994, such as disputes and penalties with provisions that apply to all tax types, this means that section 2(4) is now spent.