• “(1A) For the purposes of sections 107A, 108 to 108O, 111, 113A, and 117 of this Act, a lessee of land is deemed to own a fixture on or an improvement to the land for the period during which the land is leased to the lessee if—

  • “(a) The lessee incurs expenditure in erecting the fixture or making the improvement during that period; and

  • “(b) The fixture or improvement is the property of the lessor.

• “(1B) For the purposes of sections 107A, 108 to 108O, 111, 113A, and 117 of this Act,—

  • “(a) The lessor is deemed not to own the fixture or improvement for the period during which the land is leased to the lessee; and

  • “(b) The lessor is deemed not to own the fixture or improvement after that period except where the lessor incurs a cost in respect of it at the end of that period.

• “(1C) For the purposes of subsection (1B), a lessor includes a subsequent lessor who purchases the land from the original lessor during that period.

• “(1D) For the purposes of sections 107A, 108 to 108O, 111, 113A, and 117, where on the transfer of a lessee's interest in a lease of land—

  • “(a) The transferee pays an amount to the lessee in respect of a fixture or improvement erected by the lessee or a preceding lessee; and

  • “(b) That fixture or improvement has been depreciated by the lessee,—

  “the transferee is deemed to own the fixture or improvement.

• “(1E) For the purposes of sections 107A, 108 to 108O, 111, 113A, and 117 of this Act, a purchaser of depreciable property is deemed to own the property before title to the property passes to the purchaser if—

  • “(a) The purchaser enters into an unconditional contract to purchase the property; and

  • “(b) The contract is subject to the Sale of Goods Act 1908; and

  • “(c) Title to the property does not pass until the purchase price is paid in full; and

  • “(d) The purchaser takes possession of the property before title to that property passes.

• “(1F) Where subsection (1E) applies, the purchaser is deemed to own, and the vendor is deemed not to own, the property from the later of the time that—

  • “(a) The purchaser enters into the contract; and

  • “(b) The purchaser takes possession of the property—

  “until title to the property passes to the purchaser or the property is repossessed by the vendor.

• “(1G) Subsection (1E) and subsection (1F) do not apply to hire purchase assets that are the subject of a hire purchase agreement.”.

• “(vii) Cessation of deemed ownership of a fixture or improvement to which section 108(1A) applies.”.

• “(8A) Where a purchaser has purchased depreciable property to which section 108(1E) of this Act applies and the vendor of that property repossesses it because of partial or total failure of consideration, the purchaser is deemed to have disposed of the property on the date of repossession for a consideration equal to the cost of the property less the net amount paid to the vendor for the property under the contract.

• “(8B) In subsection (8A), net amount paid means the amount paid under a contract by a purchaser to a vendor less any amount refunded by the vendor to the purchaser.”.

• “(2D) Where the first superannuation fund has incurred expenditure of the type referred to in subsection (2C) and there is no balance of the assessable income, referred to in subsection (2C)(d), of the second superannuation fund in the same income year from which it may be deducted, the expenditure may be carried forward by the first superannuation fund to a later income year.

• “(2E) If the balance of assessable income of the second superannuation fund in that later income year extends, in whole or in part, to the expenditure referred to in subsection (2D) of the first superannuation fund, the expenditure may, at the election of the first superannuation fund, be treated as if it were expenditure incurred by the second superannuation fund in gaining or producing assessable income in that later income year to the extent of the balance of assessable income.

• “(2F) If the balance of the assessable income of the second superannuation fund is not sufficient in that later income year for all of the expenditure referred to in subsection (2D) of the first superannuation fund to be deducted in that later income year, that part of the expenditure (in this subsection referred to as the remaining expenditure) may be carried forward to successive income years until all of that expenditure has been deducted and when that balance extends, in whole or in part, to the remaining expenditure, the remaining expenditure or the extent to which that balance extends in the relevant succeeding income year, may, at the election of the first superannuation fund, be treated as if it were expenditure incurred by the second superannuation fund in gaining or producing assessable income in the year to which the election refers.

• “(2G) If expenditure incurred in one or more income years is carried forward under subsection (2D) or subsection (2F) and an election is made by the first superannuation fund in a later income year to treat that expenditure in the manner referred to in that subsection, the expenditure must be deducted sequentially in accordance with the income years in which that expenditure was incurred by the first superannuation fund.

• “(2H) Subsection (2C)(d) and (e) apply if the first superannuation fund makes an election under subsection (2E) or (2F).

• “(2I) Subsections (2D), (2E), (2F), (2G) and (2H) apply only if—

  • “(a) The first superannuation fund has funds invested in all or some of the second superannuation fund when the first superannuation fund incurs expenditure of the type referred to in subsection (2C); and

  • “(b) The first superannuation fund continues to have funds invested in all or some of the second superannuation fund when the expenditure of the first superannuation fund is deducted from the assessable income of the second superannuation fund.”.

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• “(1) All gift-exempt bodies must keep in New Zealand sufficient records in the English language to enable the Commissioner to determine both the sources of donations made to them and the application, within New Zealand or within a country or territory outside New Zealand, of their funds.

  “(2) Notwithstanding subsection (1), the Commissioner, in writing, may authorise a gift-exempt body to keep those records in a language other than English if the gift-exempt body applies in writing to the Commissioner for the authorisation.”.

“228

• The person who, on 1 April 1995, holds office as Commissioner of Inland Revenue is deemed to have been appointed Commissioner of Inland Revenue under section 6A.”.

• “(1) If a borrower wishes to vary the standard deduction rate, the borrower may apply by notice in writing to the Commissioner for the issue of a special repayment deduction rate certificate that takes into account the greater of—

  • “(a) The borrower's estimated repayment obligation for the income year; or

  • “(b) Some other amount required by the borrower.”.

• “(5) Subsection (2) of this section does not apply where—

  • “(a) There is a supply by way of sale under an unconditional contract entered into before 21 June 1995 or a conditional contract entered into before 21 June 1995 that became unconditional before that date; and

  • “(b) No return was furnished on or before 21 June 1995 for the taxable period in which payment for the supply was made.”.

• “(3) Notwithstanding subsection (2)(b)(i) of this section, this section does not apply where—

  • “(a) There is a supply by way of sale under an unconditional contract entered into before 11 August 1995 or a conditional contract entered into before 11 August 1995 that became unconditional before that date; and

  • “(b) No return was furnished on or before 11 August 1995 for the taxable period in which payment was made.”.

• “(3) Where the first superannuation fund has incurred expenditure of the type referred to in subsection (2) and the deduction balance in the income year in which the expenditure is incurred does not exceed the expenditure incurred, the expenditure not so deducted by the second superannuation fund in that year may be carried forward by the first superannuation fund to the succeeding income year.

• “(4) If the deduction balance in the succeeding income year extends, in whole or in part, to the expenditure carried forward under subsection (3), the expenditure may, at the election of the first superannuation fund, be treated as if it were expenditure incurred by the second superannuation fund in gaining or producing gross income in that later income year to the extent of the deduction balance.

• “(5) When the deduction balance in a succeeding income year is less than the expenditure carried forward under subsection (3), the expenditure not deducted (in this subsection referred to as ‘the remaining expenditure’) may be carried forward to succeeding income years until all of that expenditure is deducted.

• “(6) When the deduction balance extends, in whole or in part, to the remaining expenditure, the remaining expenditure (or the extent to which the deduction balance extends in the succeeding income year) may at the election of the first superannuation fund be treated as if it is expenditure incurred by the second superannuation fund in gaining or producing gross income in the income year to which the election refers.

• “(7) If expenditure incurred in one or more income years is carried forward under subsection (3) or subsection (5) and an election is made by the first superannuation fund in a later income year to treat that expenditure in the manner referred to in that subsection, the expenditure must be deducted sequentially in accordance with the income years in which that expenditure was incurred by the first superannuation fund.

• “(8) Subsection (2)(d) and (e) apply if the first superannuation fund makes an election under subsection (4), (5), or (6).

• “(9) Subsections (3) to (8) apply only if—

  • “(a) The first superannuation fund has funds invested in all or part of the second superannuation fund when the first superannuation fund incurs expenditure of the type referred to in subsection (2); and

  • “(b) The first superannuation fund has at all times between the time referred to in paragraph (a) and the time when the expenditure of the first superannuation fund is deducted from the gross income of the second superannuation fund its funds invested in whole or in part in the second superannuation fund.”.

• “(a) At the rate of 30% of so much of that non-resident withholding income that consists of dividends, other than investment society dividends or supplementary dividends payable as a result of Part LE, to the extent the dividends are neither fully imputed nor fully dividend withholding payment credited:”.

• “(i) The whole or part of a payment that is exempt income under section CB 12(1)(a) or (2):”.