The Issues Log

Issue: EH 37 and EH 81

Submission Number	006
Section / Provision Income Tax Act 2004	EH 37 and EH 81
Date Received	02/02/2005
Description of issue	Unintended change in the definition of "specified period" for the purposes of the income equalisation schemes : taxpayers' balance date is no longer relevant to the determination of the "specified period".
Section / Provision Income Tax Act 1994	Section OB 1 - definitions of "accounting year" and "specified period"
Status	Finalised
Outcome	8 March 2005 The Panel agreed that there had been an unintended legislative change and recommended that Inland Revenue seek approval from the Minister to retrospectively amend sections EH 37 and EH 81 of the 2004 Act. The definition of "specified period" will be consistent with that in the 1994 Act. In the 2004 Act, this definition will be related to the 6 month period following the person's approved balance date for income tax purposes. 22 March 2005 Ministerial approval has been given, and officials will endeavour to get the amendment into the next available Bill.