Land Transfer Amendment Bill and Tax Administration Amendment Bill

The Taxation (Land Information and Offshore Persons Information) Bill was passed by Parliament on 10 September 2015.  It amends the land transfer and tax legislation to create two new Acts:

  • Land Transfer Amendment Act 2015
  • Tax Administration Amendment Act 2015

The Acts will come into force on 1 October 2015. The government has introduced a SOP that amends the position so that the tax statement requirements will only apply to contracts entered into from 1 October 2015. It will not apply to contracts entered into prior to 1 October 2015 provided that the transfer is registered by 1 April 2016.

The Documents and Precedents Committee is currently revising the Agreement for Sale and Purchase of Real Estate Ninth Edition 2012 (2).  The new version will address the new legislative requirements.  However, because of the extremely tight time frame in which the legislation has been passed it will not be possible for the new agreement to be available for the 1 October 2015 commencement date.

The Committee include here the amendments that are likely to be present in the next version of the agreement.  These changes are yet to receive final approval from both the ADLS and the REINZ and are indicative only.  They are provided to be of assistance for the interim period until the new agreement is released.  Practitioners may wish to customise the Ninth Edition 2012 (2) at their own discretion by inserting these new clauses as Further Terms of Sale.

Please feel free to contact the Documents and Precedents Manager - Ben Thomson with any questions you may have.  (T:09 306 3994 E:ben.thomson@adls.org.nz)

 

18.0  Compliance with the Taxation (Land Information) Legislation

18.1  The following subclause is added to the General Terms of Sale as subclause 1.1(28A):

““Tax information” and “tax statement” have the meanings ascribed to those terms in the Land Transfer Act 1952.”

18.2  Subclause 3.6(2) of the General Terms of Sale is deleted and replaced with the following
          subclause:

“prior to settlement:

(a)   lodge in that workspace the tax information contained in the transferee’s tax statement;
       and

(b)   certify and sign the transfer instrument.”

18.3  Subclause 3.7(2) of the General Terms of Sale is deleted and replaced with the following
          subclause:

“prior to settlement:

(c)    lodge in that workspace the tax information contained in the transferor’s tax statement;
        and

(d)   have those instruments and the transfer instrument certified, signed and, where possible,
       pre-validated.”

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