Treasury Laws Amendment (2017 Measures No. 4) Act 2017 (94 of 2017)

Schedule 1   Wine equalisation tax producer rebate

Part 1   Main amendments

Division 1   Amendments

A New Tax System (Wine Equalisation Tax) Act 1999

8   Section 19-5

Repeal the section, substitute:

19-5 Entitlement to producer rebates

(1) You are entitled to a *producer rebate for *rebatable wine for a *financial year if:

(a) you are the *producer of the wine; and

(b) either:

(i) you are liable to wine tax for an *assessable dealing in the wine during the financial year; or

(ii) you would have been liable to wine tax for an assessable dealing in the wine during the financial year had the purchaser not *quoted for the sale at or before the time of the sale; and

(c) if subparagraph (b)(ii) applies - the purchaser's *quote did not state an intention of dealing with the wine in a way described in subparagraph 5-50(1)(b)(i) or (ii); and

(d) you satisfy the requirements in subsection (3) (ownership of source product) for at least 85% of the wine (measured by volume); and

(e) the wine is in a *container that meets the requirements in subsection (7) at the time of the assessable dealing.

(2) You are entitled to a *producer rebate for *rebatable wine for a *financial year if:

(a) you are approved as a *New Zealand participant; and

(b) you are the *producer of the wine; and

(c) the wine was produced in *New Zealand and exported to the indirect tax zone; and

(d) you, or another entity, paid wine tax for an *assessable dealing in the wine during the financial year; and

(e) you satisfy the requirements in subsection (3) (ownership of source product) for at least 85% of the wine (measured by volume); and

(f) the wine is in a *container that meets the requirements in subsection (7) at the time of the assessable dealing.

(3) You satisfy the requirements in this subsection for wine if you own the *source product for the wine throughout the period:

(a) starting:

(i) if that source product is covered by paragraph (4)(a), (b), (c) or (d) - immediately before the crushing of that source product; or

(ii) if that source product is covered by paragraph (4)(e) or (f) - immediately before the initial fermentation of that source product; and

(b) ending when the wine is placed in a *container that meets the requirements in subsection (7).

(4) The source product for wine is:

(a) for *grape wine - the fresh grapes from which the grape wine is produced; or

(b) for *grape wine products - the fresh grapes from which the grape wine products are produced; or

(c) for *fruit or vegetable wine - the fruit or vegetables from which the fruit or vegetable wine is produced; or

(d) for *cider or perry - the apples or pears from which the cider or perry is produced; or

(e) for *mead - the honey from which the mead is produced; or

(f) for *sake - the rice from which the sake is produced.

(5) You are taken to have satisfied the requirements in subsection (3) for wine, to the extent that the wine is composed of any of the following substances that you have caused to be added to the wine:

(a) grape spirit;

(b) brandy;

(c) alcohol used in preparing vegetable extracts (including spices, herbs and grasses);

(d) ethyl alcohol from a source as specified in the regulations for the purposes of paragraph 31-4(b), 31-5(b), 31-6(b) or 31-7(b);

(e) water;

(f) if no more than 10% of the wine (measured by volume) is grape juice concentrate that you have caused to be added to the wine - that grape juice concentrate;

(g) if no more than 1% of the wine (measured by volume) is another substance that you have caused to be added to the wine - that other substance.

(6) For the purposes of paragraph (5)(g), treat substances that are similar to each other as being the same substance.

(7) A *container in which wine is placed meets the requirements in this subsection if:

(a) any of the following requirements are satisfied:

(i) the container is suitable for *retail sale and the volume of the container does not exceed 5 litres;

(ii) if the wine is *cider or perry - the container is suitable for retail sale of portions of the contents of the container and the volume of the container does not exceed 51 litres; and

(b) the container in which the wine is placed at the time of the *assessable dealing is branded by a trade mark applied to the container; and

(c) the trade mark identifies, or can readily be associated with, the *producer of the wine; and

(d) the trade mark is owned by:

(i) the producer of the wine; or

(ii) an entity that is an *associated producer of the producer of the wine for the *financial year in which the assessable dealing occurs because it satisfies the requirement in paragraph 19-20(1)(a) (on the assumption that it were a producer); and

(e) the trade mark is:

(i) a trade mark (within the meaning of the Trade Marks Act 1995); or

(ii) if paragraphs (2)(a), (b) and (c) apply - a trade mark (within the meaning of the Trade Marks Act 2002 of New Zealand); and

(f) the trade mark satisfies any of the following requirements:

(i) the trade mark is a registered trade mark (within the meaning of the Trade Marks Act 1995);

(ii) if paragraphs (2)(a), (b) and (c) apply - the trade mark is a registered trade mark (within the meaning of the Trade Marks Act 2002 of New Zealand);

(iii) an application for registration of the trade mark under the Trade Marks Act 1995 satisfies the requirements under that Act for the application to be pending (within the meaning of that Act);

(iv) if paragraphs (2)(a), (b) and (c) apply - an application for registration of the trade mark under the Trade Marks Act 2002 of New Zealand satisfies requirements under that Act that are equivalent to the requirements mentioned in subparagraph (iii);

(v) the trade mark has been used by the producer of the wine throughout the period beginning on 1 July 2015 and ending at the time of the assessable dealing.