Clarification of treaty override power

Section BH 1 Income Tax Act 2004

The amendment clarifies the override to section BH 1 of the Income Tax Act 2004 to provide double tax agreements (DTAs) enacted by Order in Council to override the Inland Revenue Acts, the Privacy Act 1993 and the Official Information Act 1982. The purpose of the amendment is to clarify which enactments are overridden by Orders in Council made pursuant to section BH 1.

Background

Overriding provisions allow regulations to be made which override all domestic legislation. In March 2002, the Regulations Review Committee recommended that, among other sections, section BH 1 of the Income Tax Act 1994 (the predecessor to the Income Tax Act 2004) be reviewed. The government agreed to review the section in its response to the report.

The amendment specifically identifies enactments that DTAs override, namely: the Inland Revenue Acts, the Privacy Act 1993 and the Official Information Act 1982.

Key features

The key amendment replaces the reference to "any enactment" in section BH 1(4) with a reference to "any other Inland Revenue Act, the Official Information Act 1982 or the Privacy Act 1993".

Application date

The amendment applies from the date of enactment, 3 April 2006.