Due to the size of this legislation, it can only be viewed in parts. This will affect CTRL+F searches, which will only search the part you are currently viewing. You can use the content search on the top right of the page to search content across the whole Act.

Act In force Previous version as at 01 March 2024 | 2007 No 97 | Administered by Inland Revenue Department

Income Tax Act 2007

Checking for related legislation...

Download (PDF 18.1 MB)

Checking for related legislation...

Search content

Checking for alerts... Loading...

Part A Purpose and interpretation

Part B Core provisions

Subpart BA—Purpose

BA 1

Purpose

Subpart BB—Income tax and resulting obligations

BB 1

Imposition of income tax

BB 2

Main obligations

BB 3

Overriding effect of certain matters

Subpart BC—Calculating and satisfying income tax liabilities

BC 1

Non-filing and filing taxpayers

BC 2

Annual gross income

BC 3

Annual total deduction

BC 4

Net income and net loss

BC 5

Taxable income

BC 6

Income tax liability of filing taxpayer

BC 7

Income tax liability of person with schedular income

BC 8

Satisfaction of income tax liability

Subpart BD—Income, deductions, and timing

BD 1

Income, exempt income, excluded income, non-residents’ foreign-sourced income, and assessable income

BD 2

Deductions

BD 3

Allocation of income to particular income years

BD 4

Allocation of deductions to particular income years

Subpart BE—Withholding liabilities

BE 1

Withholding liabilities

Subpart BF—Other obligations

Subpart BH—Double tax agreements

BH 1

Double tax agreements

Part C Income

Subpart CA—General rules

CA 1

Amounts that are income

CA 2

Amounts that are exempt income or excluded income

Subpart CB—Income from business or trade-like activities

Business generally

CB 1

Amounts derived from business

CB 2

Amounts received on disposal of business assets that include trading stock

Schemes for profit

CB 3

Profit-making undertaking or scheme

Personal property

CB 4

Personal property acquired for purpose of disposal

CB 5

Business of dealing in personal property

Land

CB 6A

Disposal within 10 years: Bright-line test for residential land

CB 6AB

Residential land transferred in relation to certain family trusts and other capacities

CB 6AC

Residential land transferred in relation to certain Māori family trusts

CB 6AE

Certain transfers of residential land included in settlement of claim under the Treaty of Waitangi

CB 6

Disposal: land acquired for purpose or with intention of disposal

CB 7

Disposal: land acquired for purposes of business relating to land

CB 8

Disposal: land used for landfill, if notice of election

CB 9

Disposal within 10 years: land dealing business

CB 10

Disposal within 10 years: land development or subdivision business

CB 11

Disposal within 10 years of improvement: building business

CB 12

Disposal: schemes for development or division begun within 10 years

CB 13

Disposal: amount from major development or division and not already in income

CB 14

Disposal: amount from land affected by change and not already in income

CB 15

Transactions between associated persons

CB 15B

When land acquired

Exclusions for bodies controlled by local authorities

CB 15C

Council-controlled organisations and other companies

Exclusions for Kāinga Ora–Homes and Communities and wholly-owned group

CB 15D

Kāinga Ora–Homes and Communities and wholly-owned group

Exclusions for residential land

CB 16A

Main home exclusion for disposal within 10 years

CB 16

Residential exclusion from sections CB 6 to CB 11

CB 17

Residential exclusion from sections CB 12 and CB 13

CB 18

Residential exclusion from section CB 14

Exclusions for business premises

CB 19

Business exclusion from sections CB 6 to CB 11

CB 20

Business exclusion from sections CB 12 and CB 13

Exclusions for farm land

CB 21

Farm land exclusion from sections CB 12 and CB 13

CB 22

Farm land exclusion from section CB 14

Exclusion for investment land

CB 23

Investment exclusion from sections CB 12 and CB 13

CB 23B

Land partially disposed of or disposed of with other land

Timber

CB 24

Disposal of timber or right to take timber

CB 25

Disposal of land with standing timber

Investments

CB 26

Disposal of certain shares by portfolio investment entities

Farming, forestry, or fishing

CB 27

Income equalisation schemes

CB 27B

Entering partners’ livestock income [Repealed]

Environmental restoration

CB 28

Environmental restoration accounts

Minerals

CB 29

Disposal of minerals

Intellectual property

CB 30

Disposal of patent applications or patent rights

Transfer of business

CB 31

Disposal of business: transferred employment income obligations

Stolen property

CB 32

Property obtained by theft

Look-through companies

CB 32B

Owners of look-through companies

CB 32C

Dividend income for first year of look-through company

Mutual associations

CB 33

Amounts derived by mutual associations

CB 34

Amounts derived by members from mutual associations

Partners and partnerships

CB 35

Amounts of income for partners

Emissions units under Climate Change Response Act 2002

CB 36

Disposal of emissions units

Subpart CC—Income from holding property (excluding equity)

Consideration relating to grant, renewal, extension, or transfer of leasehold estate or licence

CC 1C

Consideration for agreement to surrender leasehold estate or terminate licence

CC 2

Non-compliance with covenant for repair

Financial instruments

CC 3

Financial arrangements

Prizes received under Building Societies Act 1965

CC 7

Consideration other than in money

CC 8

Use of money interest payable by Commissioner

CC 8B

Certain commercial bills: non-resident holders

Lessee acquiring lease asset on expiry of term of lease

CC 12

Lessor acquiring lease asset on expiry of term of lease

Hire purchase agreements

CC 13

Amounts paid in income years after hire purchase agreement ends

IFRS leases

CC 14

NZ IFRS 16 leases

Subpart CD—Income from equity

Distribution excluded from being dividend

Transfers of company value generally

CD 5

What is a transfer of company value?

CD 6

When is a transfer caused by a shareholding relationship?

CD 7

Bonus issues in lieu of dividend

CD 7B

Shares issued under profit distribution plans

CD 8

Elections to make bonus issue into dividend

CD 9

Interests in money or property of foreign unit trust

CD 10

Bonus issue by foreign unit trust instead of money or property

CD 11

Avoidance arrangements

CD 12

Superannuation schemes entering trust rules

CD 13

Notional distributions of producer boards and co-operative companies

CD 14

Notional distributions of emigrating companies

CD 15

Tax credits linked to dividends

CD 16

Certain dividends not increased by tax credits

CD 17

Credit transfer notice

CD 18

Dividend reduced if foreign tax paid on company’s income

CD 19

Foreign tax credits and refunds linked to dividends

CD 20

Benefits of shareholder-employees or directors

CD 21

Attributed repatriations from controlled foreign companies [Repealed]

What is not a dividend?

CD 22

Returns of capital: off-market share cancellations

CD 23

Ordering rule and slice rule

CD 23B

Returns of capital: shares repurchased under profit distribution plans

CD 24

Returns of capital: on-market share cancellations

CD 25

Treasury stock acquisitions

CD 26

Capital distributions on liquidation or emigration

CD 27

Property made available intra-group

CD 28

Transfers of certain excepted financial arrangements within wholly-owned groups

CD 29

Non-taxable bonus issues

CD 29B

Issues to shareholders of rights to subscribe for or sell back shares

CD 29C

Transfers to shareholders by ASX-listed Australian company of shares in subsidiary

CD 30

Transfer by unit trust of legal interest after beneficial interest vests

CD 31

Flat-owning companies

CD 32

Employee benefits

CD 33

Payments corresponding to notional distributions of producer boards and co-operative companies

CD 34

Distribution to member of co-operative company based on member’s transactions [Repealed]

CD 34B

Distributions to members of co-operative companies

CD 35

Resident’s restricted amalgamations

CD 36

Foreign investment fund income

CD 36B

Foreign superannuation withdrawals and pensions from foreign superannuation scheme

CD 37

Maori authority distributions

Calculation rules

CD 38

General calculation rule for transfers of company value

CD 39

Calculation of amount of dividend when property made available

CD 40

Adjustment if dividend recovered by company

CD 41

Adjustment if amount repaid later

CD 42

Adjustment if additional consideration paid

CD 43

Available subscribed capital (ASC) amount

CD 44

Available capital distribution amount

Attributed repatriation calculation rules

CD 45

When does a person have attributed repatriation from a controlled foreign company? [Repealed]

CD 46

New Zealand repatriation amount [Repealed]

CD 47

New Zealand property amount [Repealed]

CD 48

Cost of tangible property [Repealed]

CD 49

Cost of associated party equity [Repealed]

CD 50

Outstanding balances of financial arrangements [Repealed]

CD 51

Property transfers between associated persons [Repealed]

CD 52

Unrepatriated income balance [Repealed]

Prevention of double taxation

CD 53

Prevention of double taxation of share cancellation dividends

Returning share transfers

CD 54

Replacement payments

Subpart CE—Employee or contractor income

Employment income

CE 1

Amounts derived in connection with employment

CE 1B

General rule: accommodation provided by employers

CE 1C

Exception: overseas accommodation

CE 1D

Exception: accommodation provided by Defence Force

CE 1E

Exception: accommodation provided to ministers of religion

CE 1F

Treatment of amounts derived by cross-border employees

CE 2

Benefits under employee share schemes

CE 3

Restrictions on disposal of shares under share purchase agreements [Repealed]

CE 4

Adjustments to value of benefits under share purchase agreements [Repealed]

Definitions

CE 5

Meaning of expenditure on account of an employee

CE 6

Trusts are nominees

CE 7

Meaning of employee share scheme

CE 7B

Meaning of share scheme taxing date

CE 7C

Meaning of employee share scheme beneficiary

CE 7CB

Meaning of market value

CE 7D

Meaning of replacement employee share scheme

Attributed income

CE 8

Attributed income from personal services

Restrictive covenants and exit inducement payments

CE 9

Restrictive covenants

CE 10

Exit inducements

Income protection insurance

CE 11

Proceeds from claims under policies of income protection insurance

Tax credits

CE 12

Tax credits for personal service rehabilitation payments

Subpart CF—Income from living allowances, foreign superannuation, compensation, and government grants

CF 1

Benefits, pensions, compensation, and government grants

CF 2

Remission of specified suspensory loans

CF 3

Withdrawals from foreign superannuation scheme

Subpart CG—Recoveries

CG 1

Amount of depreciation recovery income

CG 2

Remitted amounts

CG 2B

Remitted amounts on discharge from bankruptcy [Repealed]

CG 2C

Remitted and other amounts: companies in liquidation

CG 2D

Remitted and other amounts: companies leaving groups

CG 2E

Remitted and other amounts: income apportionment

CG 3

Bad debt repayment

CG 4

Receipts for expenditure or loss from insurance, indemnity, or otherwise

CG 5

Recoveries or receipts by employers from superannuation schemes

CG 5B

Receipts from insurance, indemnity, or compensation for interruption or impairment of business activities

CG 6

Receipts from insurance, indemnity, or compensation for trading stock

CG 7

Recoveries after deduction of payments under lease

CG 7B

Disposals or applications after earlier deductions

CG 7C

Disposal or rerecognition of derecognised non-depreciable assets

CG 8

Capital contributions

CG 8B

Recoveries after deductions for high-priced bloodstock removed from New Zealand

CG 8C

Recoveries after deductions for high-priced bloodstock disposed of to non-residents

CG 9

Recovery of deductions for aircraft engine overhaul

Subpart CH—Adjustments

Matching rules: revenue account property, prepayments, and deferred payments

CH 1

Adjustment for closing values of trading stock, livestock, and excepted financial arrangements

CH 2

Adjustment for prepayments

CH 3

Adjustment for deferred payment of employment income

Change to accounting practice

CH 4

Adjustment for change to accounting practice

Goods and services tax (GST)

Adjustments for certain finance and operating leases

Avoidance and non-market transactions

CH 7

Adjustment for avoidance arrangements

CH 8

Market value substituted

Interest apportionment on thin capitalisation

CH 9

Interest apportionment: excess debt entity

CH 10

Interest apportionment: reporting bank

CH 10B

Interest apportionment: public project debt

Expenditure other than for entities’ purposes

CH 11

Te Awa Tupua and Te Pou Tupua

Financial instruments and hybrid mismatches

CH 12

Income from hybrid mismatch arrangement

Feasibility expenditure clawback

CH 13

Feasibility expenditure clawback

Subpart CO—Income from voluntary activities

CO 1

Income from voluntary activities

Subpart CP—Income from portfolio investment entities

CP 1

Attributed income of investors in multi-rate PIEs

Subpart CQ—Attributed income from foreign equity

Attributed controlled foreign company income

CQ 1

Attributed controlled foreign company income

CQ 2

When attributed CFC income arises

CQ 3

Calculation of attributed CFC income

Foreign investment fund income

CQ 4

Foreign investment fund income

CQ 5

When FIF income arises

CQ 6

Calculation of FIF income

CQ 7

Treatment of attributing interests subject to returning share transfer [Repealed]

Subpart CR—Income from insurance

CR 1

Policyholder base income of life insurer

CR 2

Shareholder base income of life insurer

CR 3

Income of non-resident general insurer

CR 3B

Lloyd’s of London: income from life insurance premiums

CR 4

Income for general insurance outstanding claims reserve

Subpart CS—Superannuation funds [Repealed]

Withdrawals

CS 1

Withdrawals [Repealed]

Exclusions

CS 2

Exclusions of withdrawals of various kinds [Repealed]

CS 3

Exclusion of withdrawal on grounds of hardship [Repealed]

CS 4

Exclusion of withdrawal to settle division of relationship property [Repealed]

CS 5

Exclusion of withdrawal paid as annuity or pension [Repealed]

CS 6

Exclusion of withdrawal on partial retirement [Repealed]

CS 7

Exclusion of withdrawal when member ends employment [Repealed]

CS 8

Exclusion of withdrawal when member ends employment: lock-in rule [Repealed]

CS 9

Exclusion of withdrawal from defined benefit fund when member ends employment [Repealed]

CS 10

When member treated as not ending employment [Repealed]

CS 10B

Exclusion of permitted withdrawals from KiwiSaver schemes and complying superannuation funds [Repealed]

Transfers to or from superannuation funds and superannuation schemes

CS 11

Transfer by superannuation fund to another superannuation fund [Repealed]

CS 12

Transfer from superannuation scheme to superannuation fund [Repealed]

CS 13

Investment by superannuation fund in another superannuation fund [Repealed]

Treatment of amounts when superannuation fund becomes superannuation scheme or vice versa

CS 14

Superannuation fund becomes superannuation scheme [Repealed]

CS 15

Superannuation fund becomes foreign superannuation scheme [Repealed]

CS 16

Superannuation scheme becomes superannuation fund [Repealed]

Treatment of distributions when superannuation fund wound up

CS 17

Superannuation fund wound up [Repealed]

Treatment of loans to members

CS 18

Value of loan treated as fund income [Repealed]

Subpart CT—Income from petroleum mining

CT 1

Disposal of exploratory material or petroleum mining asset

CT 2

Damage to assets

CT 3

Exploratory well used for commercial production

CT 4

Partnership interests and disposal of part of asset

CT 5

Petroleum mining operations outside New Zealand

CT 5B

Resuming commercial production

Definitions

CT 6

Meaning of petroleum miner

CT 6B

Meaning of petroleum mining operations

CT 7

Meaning of petroleum mining asset

Subpart CU—Income from mineral mining

CU 1

Mineral miner’s income

CU 2

Treatment of mining land

CU 3

Disposal of mineral mining assets

CU 4

Recovery of certain expenditure

CU 5

Partnership interests and disposal of part of asset

Definitions

CU 6

Meaning of mineral miner

CU 7

Some definitions

CU 8

Meaning of listed industrial mineral

CU 9

Some definitions

CU 10

Mining asset used to derive income other than income from mining [Repealed]

CU 11

Meaning of asset for sections CU 3 to CU 10 [Repealed]

CU 12

Application of sections to resident mining operators [Repealed]

CU 13

Application of sections to non-resident mining operators [Repealed]

CU 14

Recovery of reinvestment profit on disposal of mining shares [Repealed]

CU 15

Recovery of reinvestment profit not used for mining purposes [Repealed]

CU 16

Recovery of reinvestment profit on repayment of loans [Repealed]

CU 17

Repayment by mining company of amount written off [Repealed]

CU 18

Amount treated as repayment for purposes of section CU 17: excess [Repealed]

CU 19

Amount treated as repayment for purposes of section CU 17: net income [Repealed]

CU 20

Mining company or mining holding company liquidated [Repealed]

Definitions

CU 21

Meaning of income from mining [Repealed]

CU 22

Meaning of mining company [Repealed]

CU 23

Meaning of mining development expenditure [Repealed]

CU 24

Meaning of mining exploration expenditure [Repealed]

CU 25

Meaning of mining operations [Repealed]

CU 26

Meaning of mining venture [Repealed]

CU 27

Meaning of resident mining operator [Repealed]

CU 28

Meaning of specified mineral [Repealed]

CU 29

Other definitions [Repealed]

Subpart CV—Income specific to certain entities

CV 1

Group companies

CV 2

Consolidated groups: income of company in group

CV 3

Consolidated groups: arrangement for disposal of shares

CV 4

Amalgamated companies: amount derived after amalgamation

CV 5

Statutory producer boards

CV 6

Crown Research Institutes

CV 7

Australian wine producer rebate

CV 8

Regulations: Australian wine producer rebate

CV 9

Supplementary dividend holding companies [Repealed]

CV 10

Foreign dividend payment account companies or conduit tax relief companies [Repealed]

CV 11

Maori authorities

CV 12

Trustees: amounts received after person’s death

CV 13

Amounts derived from trusts

CV 14

Distributions from community trusts

CV 15

Amounts derived from trusts while person absent from New Zealand

CV 16

Non-resident shippers

CV 17

Non-exempt charities: taxation of tax-exempt accumulation

CV 18

Hedging of currency movements in Australian non-attributing shares and attributing FDR method interests

CV 19

Additional income for certain imputation credits

CV 20

Employee share schemes

Subpart CW—Exempt income

Income from business or trade-like activities

CW 1

Forestry companies established by the Crown, Maori owners, and holding companies acquiring land with standing timber from founders

CW 1B

Treaty of Waitangi claim settlements: rights to take timber

CW 2

Forestry encouragement agreements

CW 3

Forestry companies and Maori investment companies

CW 3B

Pre-1990 forest land units: emissions trading scheme [Repealed]

CW 3C

Certain subdivisions of land

Income from holding property (excluding equity)

CW 4

Annuities under life insurance policies

CW 5

Payments of interest: post-war credits

CW 6

Payments of interest: farm mortgages

CW 7

Foreign-sourced interest

CW 8

Money lent to government of New Zealand

CW 8B

Certain amounts derived from use of assets

Income from equity

CW 9

Dividend derived from foreign company

CW 10

Dividend within New Zealand wholly-owned group

CW 10B

Dividends derived by council-controlled organisation holding companies

CW 11

Dividend of conduit tax relief holding company [Repealed]

CW 12

Proceeds of share disposal by qualifying foreign equity investor

CW 13

Proceeds from share or option acquired under venture investment agreement

CW 14

Dividends derived by qualifying companies

CW 15

Dividends paid by qualifying companies

Employee or contractor income

CW 16

Allowance of Governor-General and other benefits and privileges

CW 16B

Accommodation expenditure: out-of-town secondments and projects

CW 16C

Time periods for certain accommodation expenditure

CW 16D

Accommodation expenditure: conferences and overnight stays

CW 16E

Accommodation expenditure: new employees

CW 16F

Accommodation expenditure: multiple workplaces

CW 17

Expenditure on account, and reimbursement, of employees

CW 17B

Relocation payments

CW 17C

Payments for overtime meals and certain other allowances

CW 17CB

Payments for certain work-related meals

CW 17CC

Payments for distinctive work clothing

CW 18

Allowance for additional transport costs

CW 19

Amounts derived during short-term visits

CW 20

Amounts derived by visiting entertainers including sportspersons

CW 21

Amounts derived by visiting crew of pleasure craft

CW 22

Amounts derived by overseas experts and trainees in New Zealand by government arrangement

CW 23

Income for military or police service in operational area

CW 24

Deferred military pay for active service

CW 25

Value of board for religious society members

CW 26

Jurors’ and witnesses’ fees

CW 26B

Exempt ESS

CW 26C

Meaning of exempt ESS

CW 26D

Meaning of employee

CW 26DB

Meaning of market value

CW 26E

Meaning of normal retiring age

Certain income of transitional resident

CW 27

Certain income derived by transitional resident

Income from living allowances, foreign superannuation, compensation, and government grants

CW 28

Pensions

CW 28B

Foreign superannuation withdrawal in initial period of residency

CW 28C

Foreign superannuation withdrawal exceeding given amount

CW 29

Reinvested amounts from foreign superannuation schemes in Australia

CW 29B

Amounts from Australian complying superannuation schemes reinvested in KiwiSaver schemes

CW 30

Annuities from Crown Bank Accounts

CW 31

Services for members and former members of Parliament

CW 32

Maintenance payments

CW 33

Allowances and benefits

CW 34

Compensation payments

CW 35

Personal service rehabilitation payments

CW 36

Scholarships and bursaries

CW 37

Film production grants [Repealed]

Income of certain entities

CW 38

Public authorities

CW 38B

Public purpose Crown-controlled companies

CW 39

Local authorities

CW 40

Local and regional promotion bodies

Charities: non-business income

CW 42

Charities: business income

CW 42B

Community housing trusts and companies

Bodies promoting amateur games and sports

CW 47

TAB NZ and racing clubs

CW 48

Income from conducting gaming-machine gambling

CW 49

Bodies promoting scientific or industrial research

CW 50

Veterinary services bodies

CW 51

Herd improvement bodies

CW 52

Community trusts

CW 52B

Disability support services

CW 53

Distributions from complying trusts

CW 54

Foreign-sourced amounts derived by trustees

CW 55

Maori authority distributions

CW 55BA

Tertiary education institutions and subsidiaries

CW 55BAB

Rebate of fees paid by FIF

CW 55BB

Minors’ income, to limited extent

Partners and partnerships

CW 55B

Amounts of exempt income for partners

Income from certain activities

CW 56

Non-resident aircraft operators

CW 57

Non-resident company involved in exploration and development activities

CW 58

Disposal of companies’ own shares

CW 59

New Zealand companies operating in Niue

CW 59B

Income of and distributions by certain international funds

CW 59C

Life reinsurance claims from reinsurer outside New Zealand

CW 60

Stake money

CW 61

Providing standard-cost household service

CW 62

Interest paid under the KiwiSaver Act 2006

CW 62B

Voluntary activities

CW 62C

Income from foreign-currency loans used for disallowed residential property

CW 63

Avoidance arrangements

CW 64

Exemption under other Acts

Restructuring under New Zealand Railways Corporation Restructuring Act 1990

CW 65

New Zealand Railways Corporation restructure: exempt income

Subpart CX—Excluded income

Goods and services tax

CX 1

Goods and services tax

Fringe benefits

Introductory provisions

CX 2

Meaning of fringe benefit

CX 3

Excluded income

CX 4

Relationship with assessable income

CX 5

Relationship with exempt income

Fringe benefits

CX 6

Private use of motor vehicle

CX 7

Employer or associated person treated as having right to use vehicle under arrangement

CX 8

Private use of motor vehicle: use by more than 1 employee

CX 9

Subsidised transport

CX 10

Employment-related loans

CX 11

CX 12

Services for members and former members of Parliament

CX 13

Contributions to superannuation schemes

CX 14

Contributions to sickness, accident, or death benefit funds

CX 15

Contributions to funeral trusts

CX 16

Contributions to life or health insurance

CX 17

Benefits provided to employees who are shareholders or investors

CX 18

Benefits provided to associates of both employees and shareholders

Exclusions and limitations

CX 19

Benefits provided instead of allowances

CX 19B

Transport in vehicle other than motor vehicle

CX 19C

Certain public transport

CX 19D

Certain self-powered and low-powered vehicles and vehicle-share services

CX 20

Benefits to enable performance of duties

CX 21

Business tools

CX 22

Benefits to non-executive directors

CX 23

Benefits provided on premises

CX 24

Benefits related to health or safety

CX 25

Benefits provided by charitable organisations

CX 26

Non-liable payments

CX 27

Assistance with tax returns

Distinctive work clothing

CX 31

Contributions to income protection insurance

CX 32

Services provided to superannuation fund

CX 33

Goods provided at discount by third parties

CX 33B

Benefits for members of Parliament

Definitions

CX 34

Meaning of emergency call

CX 35

Meaning of employee share loan

CX 36

Meaning of private use

CX 37

Meaning of unclassified benefit

CX 38

Meaning of work-related vehicle

Insurance

CX 39

Life insurers and fully reinsured persons [Repealed]

CX 40

Superannuation fund deriving amount from life insurance policy

CX 41

Resident insurance underwriters

Petroleum mining

CX 42

Disposal of ownership interests in controlled petroleum mining entities

CX 43

Farm-out arrangements for mining operations

Mineral mining

CX 44

Disposal of mining shares [Repealed]

CX 45

Disposal of mining shares acquired with reinvestment profit [Repealed]

CX 46

Repayment of loans made from reinvestment profit [Repealed]

Government grants

CX 47

Government grants to businesses

CX 48

Amounts remitted as condition of new start grant [Repealed]

CX 48B

Issue of post-1989 forest land units [Repealed]

Government funding of film and television

CX 48C

Government funding additional to government screen production payments

Research and development

CX 48D

Tax credits for expenditure on research and development [Repealed]

Superannuation and savings

CX 49

Employer’s superannuation contributions

CX 50

Tax credits for KiwiSaver and complying superannuation funds

CX 50B

Contributions to retirement savings schemes

Farming, forestry, or fishing

CX 51

Income equalisation schemes

Emissions units under Climate Change Response Act 2002

CX 51B

Disposal of pre-1990 forest land emissions units

CX 51C

Disposal of fishing quota emissions units

Environmental restoration

CX 52

Refund from environmental restoration account

Inflation-indexed instruments

CX 53

Credits for inflation-indexed instruments

Share-lending arrangements and excepted financial arrangements

CX 54

Share-lending collateral under share-lending arrangements

CX 54B

Transfers of emissions units under certain excepted financial arrangements

Portfolio investment income

CX 55

Proceeds from disposal of investment shares

CX 55B

Proceeds from disposal of certain shares and financial arrangements

CX 56

Attributed income of certain investors in multi-rate PIEs

CX 56B

Distributions to investors in multi-rate PIEs

CX 56C

Distributions to investors by listed PIEs

CX 57

Credits for investment fees

Foreign investment income

CX 57B

Amounts derived during periods covered by calculation methods

Minors’ beneficiary income

CX 58

Amounts derived by minors from trusts

CX 59

Taxable distributions from non-complying trusts

Transactions between companies in consolidated groups

CX 60

Intra-group transactions

Avoidance arrangements

CX 61

Avoidance arrangements

Partners and partnerships

CX 62

Amounts of excluded income for partners

Look-through companies

CX 63

Dividends derived after company ceased to be look-through company

Financial instruments and hybrid mismatches

CX 64

Income from financial instrument

Subpart CZ—Terminating provisions

CZ 1

Grandparented shares under employee share schemes

CZ 2

Mining company’s 1970–71 tax year [Repealed]

CZ 3

Exchange variations on 8 August 1975

CZ 4

Mineral mining: company making loan before 1 April 1979 [Repealed]

CZ 5

Exempt interest: overseas money lent to government or local or public authority before 29 July 1983

CZ 6

Commercial bills before 31 July 1986

CZ 7

Primary producer co-operative companies: 1987–88 income year

CZ 8

Farm-out arrangements for petroleum mining before 16 December 1991

CZ 9

Available capital distribution amount: 1965 and 1985–1992

CZ 9B

Available capital distribution amount: 1988 to 2010 [Repealed]

CZ 10

Transitional relief for calculation of attributed repatriation dividends: 2 July 1992 [Repealed]

CZ 11

Recovery of deductions for software acquired before 1 April 1993

CZ 12

General insurance with risk period straddling 1 July 1993

CZ 13

Treatment of units and interests in unit trusts and group investment funds on issue as at 1 April 1996

CZ 14

Treatment of superannuation fund interests in group investment funds on 1 April 1999

CZ 15

Accident insurance contracts before 1 July 2000

CZ 16

Interest payable to exiting company: 2001

CZ 17

Dividend of exiting company: 2001

CZ 18

Benefit provider approved within 6 months of 25 November 2003

CZ 19

Community trust receipts in 2004–05 or 2005–06 tax year

CZ 20

Disposal of personal property lease asset under specified lease

CZ 21

Superannuation fund loans made to members before 1 April 1989

CZ 21B

Optional treatment of withdrawals from foreign superannuation schemes not included in return or assessed before 1 April 2014

CZ 22

Geothermal wells between 31 March 2003 and 17 May 2006

CZ 23

Insurance or compensation for buildings replaced as revenue account property affected by Canterbury earthquakes [Repealed]

CZ 23

Employee benefits for Canterbury earthquake relief: exempt income

CZ 23B

Employee benefits for North Island flooding events: exempt income

CZ 24

Employee benefits for Canterbury earthquake relief: not fringe benefits

CZ 24B

Employee benefits for North Island flooding events relief: not fringe benefits

CZ 25

Land and buildings as revenue account property affected by Canterbury earthquakes and replaced—insurance or compensation, Government purchase

CZ 25B

Land and buildings as revenue account property affected by Hurunui/Kaikōura earthquakes and replaced—insurance or compensation

CZ 26

Land and buildings affected by Canterbury earthquakes—sections CB 9 to CB 11 and CB 14 overridden for Crown purchases

CZ 27

Prior bad debt deductions clawback

CZ 28

Transitional provision for mineral mining: previously appropriated mining expenditure

CZ 29

Accommodation expenditure: Canterbury earthquake relief

CZ 29B

Accommodation expenditure: North Island flooding events

CZ 30

Transitional provision: application of certain accommodation provisions

CZ 31

Accommodation expenditure: New Zealand Defence Force

CZ 32

Treatment of certain petroleum storage facilities

CZ 33

Transitional exception for accommodation provided to ministers of religion

CZ 34

Income arising from tax accounting provision for aircraft engine overhauls

CZ 35

Treatment of backdated payments for social rehabilitation: 2008–09 to 2017–18 income years [Repealed]

CZ 35

Amounts derived by Te Kōwhatu Tū Moana

CZ 36

Treatment of backdated payments for social rehabilitation: 2008–09 to 2017–18 income years

CZ 37

Income equalisation schemes

CZ 38

Disposals of trading stock to non-associates without business purpose

CZ 39

Disposal within 5 years: bright-line test for residential land: acquisition on or after 29 March 2018

CZ 40

Main home exclusion for bright-line: acquisition on or after 29 March 2018

Part D Deductions

Subpart DA—General rules

Effect of specific rules on general rules

DA 4

Treatment of amount of depreciation loss

DA 5

Treatment of expenditure for commercial fit-out [Repealed]

Subpart DB—Specific rules for expenditure types

Taxes and other amounts

DB 1

Taxes, other than GST, and penalties

DB 2

Goods and services tax

DB 3

Determining tax liabilities

DB 3B

Use of money interest

DB 4

Chatham Islands dues

DB 4B

Fees to purchase funds in tax pooling accounts

Financing costs

DB 5

Transaction costs: borrowing money for use as capital

DB 6

Interest: not capital expenditure

DB 7

Interest: most companies need no nexus with income

DB 8

Interest: money borrowed to acquire shares in group companies

DB 9

Interest incurred on money borrowed to acquire shares in qualifying companies

DB 10

Interest or expenditure connected to profit-related debentures

DB 10B

Interest or expenditure connected to stapled debt security

Financial arrangements adjustments

DB 11

Negative base price adjustment

DB 12

Base price adjustment under old financial arrangements rules

DB 13

Repayment of debt in certain circumstances

Share-lending arrangements and excepted financial arrangements

DB 16

Share-lending collateral under share-lending arrangements

DB 17

Replacement payments and imputation credits under share-lending arrangements

DB 17B

Transfers of emissions units under certain excepted financial arrangements

Premises or land costs

DB 18AA

Square metre rate method

DB 18A

Ring-fenced allocations: disposal of residential land within 5 years [Repealed]

DB 18AB

Deduction cap: disposal of residential land within 5 years to associated persons [Repealed]

DB 18

Transaction costs: leases

DB 19

Expenses in application for resource consent

DB 20

Destruction of temporary building

DB 20B

Consideration for agreement to grant, renew, extend, or transfer leasehold estate or licence

DB 20C

Consideration for agreement to surrender leasehold estate or terminate licence

DB 21

Amounts paid for non-compliance with covenant for repair

DB 22

Amounts paid for non-compliance and change in use

DB 22B

Amounts paid for commercial fit-out for building

Revenue account property

DB 23

Cost of revenue account property

DB 23B

Revenue account property: certain intra-group transactions

DB 23C

Revenue account property: cost of some residential land reduced

DB 24

Share losses

DB 25

Cancellation of shares held as revenue account property

DB 26

Amount from profit-making undertaking or scheme and not already in income

DB 27

Amount from major development or division and not already in income

DB 28

Amount from land affected by change and not already in income

DB 29

Apportionment when land acquired with other property

DB 30

Cost of certain minerals

Bad debts owed to estates

Research and development

DB 33

Scientific research

DB 34

Research or development

Expenses in application for patent or design registration

DB 38

Patent rights: devising patented inventions

DB 39

Patent rights acquired before 1 April 1993

DB 40

Patent applications or patent rights acquired on or after 1 April 1993

DB 40BA

Expenses in application for plant variety rights

Unsuccessful software development

DB 40B

Expenditure in unsuccessful development of software

Corporate gifting

DB 41

Charitable or other public benefit gifts by company

Theft and bribery

DB 42

Property misappropriated by employees or service providers

DB 43

Making good loss from misappropriation by partners

DB 44

Restitution of stolen property

Avoiding, remedying, or mitigating effects of discharge of contaminant or making of noise

Repayments

DB 47

Payments for remitted amounts

DB 48

Restrictive covenant breached

Matching rules: revenue account property, prepayments, and deferred payments

DB 49

Adjustment for opening values of trading stock, livestock, and excepted financial arrangements

DB 50

Adjustment for prepayments

DB 51

Adjustment for deferred payment of employment income

Adjustments for leases that become finance leases

DB 51B

Adjustments for leases that become finance leases

IFRS leases

DB 51C

NZ IFRS 16 leases

Change to accounting practice

DB 52

Adjustment for change to accounting practice

Investment income

DB 53

Attributed PIE losses of certain investors

DB 54

No deductions for fees relating to interests in multi-rate PIEs

DB 54B

Expenditure incurred by foreign investment PIEs

DB 54C

Certain expenditure incurred by foreign PIE equivalents

Exempt income

DB 55

Expenditure incurred in deriving exempt dividend [Repealed]

Use of motor vehicle under certain arrangements

DB 56

Expenditure incurred in operating motor vehicle under agreement or arrangement affected by section CX 7

Payments to spouses, civil union partners, or de facto partners

DB 57

Payments to spouses, civil union partners, or de facto partners other than for services

Hybrid and branch mismatches of deductions and income from multi-jurisdictional arrangements

DB 57B

Matching of deductions and income from multi-jurisdictional arrangements

Avoidance and non-market transactions

DB 58

Adjustment for avoidance arrangements

DB 59

Market value substituted

Emissions units and liabilities under Climate Change Response Act 2002

DB 60

Acquisition of emissions units

DB 60B

Liabilities for emissions

DB 61

Surrender of certain emissions units for post-1989 forest land emissions

Legal expenses

DB 62

Deduction for legal expenses

Miscellaneous company administration costs

DB 63

Expenses in paying dividends

DB 63B

Periodic company registration fees

DB 63C

Meetings of shareholders

Capital contributions

DB 64

Capital contributions

DB 65

Allowance for certain commercial buildings [Repealed]

Feasibility expenditure

DB 66

Feasibility expenditure: spread deduction

DB 67

Feasibility expenditure: immediate deduction

Utilities distribution assets

DB 68

Amounts paid for utilities distribution assets

Subpart DC—Employee or contractor expenditure

DC 1

Lump sum payments on retirement

DC 2

Pension payments to former employees

DC 3

Pension payments to former partners

DC 3B

Payments to working owners

DC 4

Payments to working partners

DC 5

Payments to spouses, civil union partners, or de facto partners: services

DC 6

Contributions to employees’ benefit funds

DC 7

Contributions to employees’ superannuation schemes

DC 8

Attribution of personal services

DC 9

Restrictive covenants or exit inducements

DC 10

Disposal of business: transferred employment income obligations

DC 11

Transfers of employment income obligations to associates

DC 12

Loans to employees under share purchase schemes [Repealed]

DC 13

Criteria for approval of share purchase schemes: before period of restriction ends [Repealed]

DC 14

Criteria for approval of share purchase schemes: when period of restriction ends [Repealed]

DC 15

Some definitions [Repealed]

Subpart DD—Entertainment expenditure

DD 1

Entertainment expenditure generally

DD 2

Limitation rule

DD 3

When limitation rule does not apply

DD 4

Employment-related activities

DD 5

Promoting businesses, goods, or services

DD 6

Entertainment as business or for charitable purpose

DD 7

Entertainment outside New Zealand

DD 8

Entertainment that is income or fringe benefit

DD 9

Relationship with fringe benefit tax rules

DD 10

Interpretation: reimbursement and apportionment

DD 11

Some definitions

Subpart DE—Motor vehicle expenditure

Introductory provisions

DE 1

What this subpart does

DE 2

Deductions for business use

DE 2B

Election to use kilometre rate method or costs method

DE 3

Methods for calculating proportion of business use

DE 4

Default method for calculating proportion of business use

Using logbook for test period

Variance during logbook term

Kilometre rate method

Subpart DF—Government grants, funding, and compensation

DF 1

Government grants to businesses

DF 2

Repayment of grant-related suspensory loans

DF 3

Identifying expenditure for purposes of sections DF 1 and DF 2

DF 4

Payments for social rehabilitation

DF 5

Government funding additional to government screen production payments

Subpart DG—Expenditure related to use of certain assets

Introductory provisions

DG 1

What this subpart does

DG 2

Application of this subpart

DG 3

Meaning of asset for this subpart

DG 4

Meaning of private use for this subpart

DG 5

Meaning and treatment of interest expenditure for this subpart

DG 6

Associated persons: company rule modified

When assets held simply

DG 7

DG 8

Expenditure limitation rule

DG 9

Apportionment formula

When assets held in corporate structures

DG 10

Interest expenditure rules

DG 11

Interest expenditure: close companies

DG 12

Interest expenditure: group companies

DG 13

Interest expenditure: corporate shareholders

DG 14

Interest expenditure: non-corporate shareholders

Quarantined expenditure

DG 15

Quarantined expenditure rules

DG 16

Quarantined expenditure when asset activity negative

DG 17

Allocation of amounts quarantined under section DG 16

DG 18

Quarantined expenditure: group companies and shareholders

DG 19

Allocation of amounts quarantined under section DG 18

Certain modifications to rules

DG 20

When income cannot be separately attributed

DG 21

Opting out of treatment under this subpart

DG 22

Application of rules to part years

Subpart DH—Interest incurred in relation to certain land

DH 1

Interest related to certain land

DH 2

When this subpart applies

DH 3

When this subpart applies: companies

DH 4

When this subpart does not apply: exemptions for new builds, development, social or emergency or transitional housing, and council housing

DH 5

Key terms

DH 6

Interposed residential property percentage

DH 7

Grandparented residential interest

DH 8

Deduction not allowed

DH 9

Exception to limited denial of deductions: loans denominated in foreign currencies [Repealed]

DH 10

Limited denial of deductibility: simplified calculation of interest affected

DH 11

Denied amounts: treatment upon disposal of disallowed residential property

DH 12

Valuation

Subpart DN—Attributed losses from foreign equity

Attributed controlled foreign company (CFC) loss

DN 1

Attributed controlled foreign company loss

DN 2

When attributed CFC loss arises

DN 3

Calculation of attributed CFC loss

DN 4

Ring-fencing cap on deduction

Foreign investment fund (FIF) loss

DN 5

Foreign investment fund loss

DN 6

When FIF loss arises

DN 7

Calculation of FIF loss

DN 8

Ring-fencing cap on deduction: attributable FIF income method

DN 9

Treatment of certain costs incurred in acquiring FIF interests

Subpart DO—Farming and aquacultural business expenditure

Plantings for erosion, shelter, and water protection purposes

DO 3

Trees on farms

DO 4

Improvements to farm land

DO 5

Expenditure on land: planting of listed horticultural plants

DO 6

Expenditure on land: horticultural replacement planting

DO 7

Accounting for expenditure on listed horticultural plants under sections DO 5 and DO 6

DO 8

Meaning of planting and plot

DO 9

Meaning of replaced area fraction

DO 10

Farming or horticulture expenditure of lessor or sublessor

DO 11

Improvement destroyed or made useless

DO 11B

Entering partners’ livestock deduction [Repealed]

Aquaculture

DO 12

Improvements to aquacultural business

DO 13

Improvement destroyed or made useless

Subpart DP—Forestry expenditure

DP 1

Expenditure of forestry business

DP 2

Plant or machinery

DP 3

Improvements to forestry land

DP 4

Improvement destroyed or made useless

DP 5

Forestry encouragement agreement: deductions

DP 6

Forestry encouragement agreement: no deduction

DP 7

Land contouring: no deduction

DP 8

Forestry business on land acquired from the Crown, Maori owners, or holding company: no deduction

DP 9

Cost of acquiring timber: forestry business on land acquired from the Crown, Maori owners, or holding company

DP 9B

Treaty of Waitangi claim settlements: rights to take timber

DP 10

Cost of acquiring timber or right to take timber: other cases

DP 11

Cost of timber

Subpart DQ—Income equalisation schemes and environmental restoration accounts schemes

DQ 1

Main income equalisation scheme

DQ 2

Adverse event income equalisation scheme [Repealed]

DQ 3

Thinning operations income equalisation scheme

DQ 4

Environmental restoration accounts scheme

Subpart DR—Life insurance business expenditure

DR 1

Policyholder base allowable deduction of life insurer

DR 2

Shareholder base allowable deduction of life insurer

DR 3

Life reinsurance premiums to reinsurer outside New Zealand

DR 4

Life insurers’ claims

Subpart DS—Film industry expenditure

DS 1

Acquiring film rights

DS 2

Film production expenditure

DS 2B

Expenditure when film or film right intended for disposal

DS 3

Clawback of deductions for film reimbursement schemes

DS 4

Meaning of film reimbursement scheme

Subpart DT—Petroleum mining expenditure

Petroleum exploration expenditure

DT 1A

Ring-fenced allocations

DT 1

Petroleum exploration expenditure

DT 2

Arrangement for petroleum exploration expenditure and disposal of property

DT 3

Acquisition of privileges and permits

DT 4

Acquisition of exploratory material

Petroleum development expenditure

DT 5

Petroleum development expenditure

DT 6

Expenditure on petroleum mining assets

DT 7

Exploratory well expenditure

DT 7B

Resuming commercial production: petroleum development expenditure

DT 8

Acquisition of certain petroleum mining assets

DT 9

Disposal of petroleum mining asset to associate

DT 10

Disposal of petroleum mining asset outside association

Disposal of ownership interests in controlled petroleum mining entities

DT 14

Farm-out arrangements

DT 15

Persons associated with petroleum miner

Attribution of expenditure

DT 18

Replacement permits

DT 19

Partnership interests and disposal of part of asset

DT 20

Petroleum mining operations outside New Zealand

Subpart DU—Mineral mining expenditure

DU 1

Mining expenditure: prospecting and exploration expenditure

DU 2

Mining expenditure: rehabilitation expenditure

DU 3

Acquisition of land for mining operations

DU 4

Acquisition of mineral mining assets

DU 5

Farm-out arrangements

DU 6

Deduction for certain mining expenditure spread over assumed life of mine

DU 7

Deduction for certain mining expenditure spread on basis of units of production

Classes of mining expenditure

DU 8

Classes of mineral mining expenditure

DU 9

Some definitions

DU 10

Meaning of mining exploration expenditure

DU 11

Meaning of mining development expenditure: exclusion of operational expenditure

DU 12

Meaning of mining rehabilitation expenditure

Subpart DV—Expenditure specific to certain entities

Superannuation funds

DV 1

Publicising superannuation funds

DV 2

Transfer of expenditure to master fund

DV 3

Formula for calculating maximum deduction

DV 4

Carry forward of expenditure

DV 4B

Carry forward of expenditure by member funds investing in portfolio investment entities

Other entities

DV 5

Investment funds: transfer of expenditure to master funds

DV 6

Formula for calculating maximum deduction

DV 7

Carry forward of expenditure

DV 8

Non-profit organisations

Distribution to member of co-operative company, excluded from being dividend

DV 12

Maori authorities: donations

DV 13

Group companies

DV 14

Amalgamated company: expenditure on improvements for farming, horticultural, aquacultural, and forestry businesses

DV 15

Amalgamated companies: property passing on resident’s restricted amalgamation

DV 16

Consolidated groups: intra-group transactions

DV 17

Consolidated groups: expenditure or loss incurred by group companies

DV 18

Statutory producer boards and co-operative companies

DV 18B

Cost base for shares when debt remitted within economic group

DV 19

Association rebates

Partners and partnerships

DV 20

Partners

DV 21

Losses for QCs entering partnership regime

Look-through companies

DV 22

Owners of look-through companies

DV 23

Losses for QCs entering look-through companies rules

Sole traders

DV 24

Losses for QCs becoming sole traderships

DV 25

Hedging of currency movements in Australian non-attributing shares and attributing FDR method interests

Reinstatement of R&D tax losses

DV 26

Deduction for reinstatement of R&D tax losses

Employee share schemes

DV 27

Employee share schemes

DV 28

Exempt employee share schemes

Subpart DW—Expenditure specific to certain industries

Non-resident general insurers and shippers

DW 3B

Lloyd’s of London: deductions for life insurance business

DW 4

Deduction for general insurance outstanding claims reserve

DW 5

Aircraft operators: aircraft engines and aircraft engine overhauls

DW 6

Aircraft operators: payments and adjustments under finance leases

Subpart DX—Other expenditure

DX 1

Testamentary annuities

DX 2

Tax credits: conduit financing arrangements [Repealed]

DX 3

Tax credits: supplementary dividend holding companies [Repealed]

Subpart DZ—Terminating provisions

DZ 1

Commercial bills before 31 July 1986

DZ 2

Life insurers acquiring property before 1 April 1988

DZ 3

Petroleum mining: development expenditure from 1 October 1990 to 15 December 1991

DZ 4

Expenditure on abandoned exploratory well before 16 December 1991

DZ 5

Farm-out arrangements for petroleum mining before 16 December 1991

DZ 6

Partnership interests and disposal of part of asset before 16 December 1991

DZ 7

Petroleum mining operations outside New Zealand before 16 December 1991

DZ 8

Acquiring patent rights before 1 April 1993

DZ 9

Premium paid on land leased before 1 April 1993

DZ 10

General insurance with risk period straddling 1 July 1993

DZ 11

Film reimbursement scheme on or before 30 June 2001

DZ 12

Mineral mining: 1954–2005 [Repealed]

DZ 13

Enhancements to land unamortised at end of 2004–05 year

DZ 14

Deductions under specified leases

DZ 15

Patent applications before 1 April 2005

DZ 16

Geothermal wells between 31 March 2003 and 17 May 2006

DZ 17

Expenditure on improvements to aquacultural business before 1995–96 income year

DZ 18

Expenditure on improvements to forestry land before 1995–96 income year

DZ 19

Attributed CFC loss carried back under section EZ 32C [Repealed]

DZ 20

Expenditure incurred while income-earning activity interrupted by Canterbury earthquake

DZ 21

Transfer in 2013–14 income year of assets to which subpart DG applies

DZ 22

Aircraft maintenance: aircraft engines acquired before 2017–18 income year

DZ 23

Aircraft maintenance: tax accounting provisions for expenditure incurred after 2016–17 income year

Part E Timing and quantifying rules

Subpart EA—Matching rules: revenue account property, prepayments, and deferred payments

EA 1

Trading stock, livestock, and excepted financial arrangements

EA 2

Other revenue account property

EA 3

Prepayments

EA 4

Deferred payment of employment income

Subpart EB—Valuation of trading stock (including dealer’s livestock)

Introductory provisions

EB 1

When this subpart applies

EB 2

Meaning of trading stock

EB 3

Valuation of trading stock

EB 4

Trading stock valuation methods

EB 5

Transfers of trading stock within wholly-owned groups

Cost allocation: cost-flow method

EB 8

Cost allocation: budgeted method or standard cost method

EB 9

Discounted selling price

Valuing closing stock consistently

Low-turnover valuation

EB 13

Low-turnover valuation

EB 14

Low-turnover valuation methods

EB 15

Cost for low-turnover traders

EB 16

Cost allocation: cost-flow method for low-turnover traders

EB 17

Costs: manufactured or produced stock of low-turnover traders

EB 18

Costs: other stock of low-turnover traders

EB 19

Discounted selling price for low-turnover traders

EB 20

Replacement price for low-turnover traders

EB 21

Market selling value for low-turnover traders

EB 22

Valuing closing stock consistently for low-turnover traders

Low value trading stock

EB 23

Valuing closing stock under $10,000

Disposal of business assets

EB 24

Apportionment on disposal of business assets that include trading stock

Subpart EC—Valuation of livestock

Introductory provisions

EC 1

Application of this subpart

EC 2

Valuation of livestock

EC 3

Livestock valuation methods

EC 4

Transfers of livestock within wholly-owned groups

EC 4B

Compulsory use of herd scheme method for associated persons

EC 4C

Value and timing of transfers

EC 5

Transfer of livestock because of self-assessed adverse event

Valuation of specified livestock

EC 6

Application of sections EC 7 to EC 27

EC 7

Valuation methods

EC 8

Restrictions arising from use of herd scheme

EC 9

Restrictions on use of national standard cost scheme

EC 10

Restrictions on use of cost price method

EC 11

Restrictions on making of elections

EC 12

Interests in livestock

EC 13

Changes in partnership interests

Determining national average market values

EC 16

Valuation under herd scheme

EC 17

Herd value ratio

EC 18

Inaccurate herd value ratio

EC 19

Chatham Islands adjustment to herd value

EC 20

Herd livestock disposed of before values determined

EC 21

Herd livestock on death before values determined [Repealed]

National standard cost scheme

EC 22

National standard cost scheme

EC 23

Determining national standard costs

EC 24

Methods for determining costs using national standard cost scheme

Other methods

EC 25

Cost price, replacement price, or market value

EC 26

Bailee’s treatment of livestock

Partnerships: cost price and national standard cost scheme

EC 26B

Entering partners’ cost base

Definitions

EC 27

Some definitions

Valuation of non-specified livestock

EC 28

Application of sections EC 29 to EC 31

EC 29

Determining standard values

EC 30

Closing value methods

EC 31

Enhanced production

Valuation of high-priced livestock

EC 32

Application of sections EC 33 to EC 37

EC 33

Determining depreciation percentages

EC 34

General rule

EC 35

Livestock reaching national average market value and livestock no longer used for breeding

EC 36

Immature livestock and recently acquired livestock

EC 37

Bailment

Valuation of bloodstock

EC 38

Application of sections EC 39 to EC 48

EC 39

First income year in breeding business

EC 39B

Stud-founding bloodstock and related terms

EC 39C

Setting and publication of national minimum price threshold

EC 40

Later income years in breeding business

EC 41

Reduction: bloodstock not previously used for breeding in New Zealand other than as shuttle stallions

EC 42

Reduction: bloodstock previously used for breeding in New Zealand

EC 43

Accident, birth deformity, or infertility

EC 44

Other bloodstock

EC 45

Residual value of bloodstock

EC 46

Use of bloodstock for racing

EC 47

Change of use of bloodstock in course of business

EC 47B

Removal of high-priced bloodstock from New Zealand after earlier deductions

EC 47C

When prospective breeders treated as being in breeding business

EC 47D

Change of prospective bloodstock breeders’ expectation or intention after earlier deductions

EC 47E

Prospective breeders commencing actual breeding businesses

EC 48

Replacement breeding stock

Subpart ED—Valuation of excepted financial arrangements

ED 1

Valuation of excepted financial arrangements

ED 1B

Valuation of emissions units issued for zero price

ED 2

Transfers of certain excepted financial arrangements within wholly-owned groups

ED 2B

Transfers to shareholders by ASX-listed Australian company of shares in subsidiary

ED 3

Part-year tax calculations for transfers: general insurance OCR

ED 4

Valuation of certain excepted financial arrangements denominated in foreign currency

Subpart EE—Depreciation

Introductory provision

EE 1

What this subpart does

Meaning of own

EE 2

Nature of ownership of item

EE 3

Ownership of goods subject to reservation of title

EE 4

Ownership of lessee’s improvements: lessee

EE 5

Ownership of lessee’s improvements: other person

Meaning of depreciable property

EE 6

What is depreciable property?

EE 7

What is not depreciable property?

EE 8

Election that property not be depreciable

How amounts of depreciation loss and depreciation recovery income are calculated

EE 9

Description of elements of calculation

EE 10

Calculation rule: item temporarily not available

EE 11

Calculation rule: income year in which item disposed of

Methods

EE 12

Depreciation methods

Amount of depreciation loss under diminishing value method or straight-line method

EE 13

Application of sections EE 14 to EE 19

EE 14

Diminishing value or straight-line method: calculating amount of depreciation loss

EE 15

Amount of adjusted tax value

EE 16

Amount resulting from standard calculation

EE 17

Amount resulting from petroleum-related depreciable property calculation

EE 18

Cost: change from diminishing value to straight-line method

EE 18B

Cost: some depreciable intangible property

EE 19

Cost: fixed life intangible property

Amount of depreciation loss under pool method

EE 20

Application of sections EE 21 to EE 24

EE 21

Pool method: calculating amount of depreciation loss

Property ceasing to qualify for pool

EE 25

Depreciation loss for plant variety rights application granted in 2005–06 or later income year

Depreciation rates

EE 26

Setting of economic depreciation rate

EE 27

Economic rate for certain depreciable property

EE 28

Economic rate for buildings

EE 29

Economic rate for certain aircraft and motor vehicles

EE 30

Economic rate for plant, equipment, or building, with high residual value

EE 31

Annual rate for item acquired in person’s 1995–96 or later income year

EE 32

Election in relation to certain depreciable property acquired on or after 1 April 2005

EE 33

Annual rate for fixed life intangible property

EE 34

Annual rate for patent granted in 2005–06 or later income year

EE 34B

Annual rate for design registrations

EE 35

Special rate or provisional rate

EE 36

Using economic rate or provisional rate instead of special rate

Improvements, items of low value, or items no longer used

Transfers of depreciable property: associated persons and certain amalgamations

EE 40

Transfer of depreciable property on or after 24 September 1997

EE 41

Transfer of depreciable property on certain amalgamations on or after 14 May 2002

EE 42

Transfer of radiocommunications licence right on or after 24 September 1997

EE 43

Transfer of depreciable intangible property on or after 1 July 1997

Disposals and similar events

EE 44

Application of sections EE 48 to EE 51

EE 45

Consideration for purposes of section EE 44

EE 46

Items for purposes of section EE 44

EE 47

Events for purposes of section EE 44

EE 48

Effect of disposal or event

EE 49

Amount of depreciation recovery income when item partly used for business

EE 50

Amount of depreciation loss when item partly used to produce income

EE 51

Amount of depreciation recovery income when lost or stolen items recovered

EE 52

Amount of depreciation recovery income when compensation received

EE 53

Unused geothermal well brought into use

Interpretation provisions

Meaning of adjusted tax value

EE 56

Formula

EE 57

Base value in section EE 56 when none of sections EE 58, EE 59, and EZ 22(1) applies

EE 58

Base value in section EE 56 when no previous deduction

EE 59

Base value in section EE 56 when property is petroleum-related depreciable property

EE 60

Total deductions in section EE 56

Definitions

EE 61

Meaning of annual rate

EE 62

Meaning of depreciable intangible property

EE 63

Meaning of estimated useful life

EE 64

Meaning of excluded depreciable property

EE 65

Meaning of maximum pooling value

EE 66

Meaning of poolable property

EE 67

Other definitions

Subpart EF—Taxes and levies

EF 1

Fringe benefit tax

EF 2

Employer’s superannuation contribution tax

EF 3

Accident compensation levies and premiums

EF 4

Use of money interest payable by Commissioner

EF 5

Use of money interest payable by person

EF 6

Different tax years [Repealed]

Subpart EG—Recognition of accounting treatment

EG 1

Election to use balance date used in foreign country

EG 2

Adjustment for changes to accounting practice

EG 3

Allocation of income, deductions, and tax credits by portfolio tax rate entity [Repealed]

Subpart EH—Income equalisation schemes

Introductory provisions

EH 1

Income equalisation schemes

EH 2

Deposits to be paid into Crown Bank Account

Main income equalisation scheme

Application

EH 3

Persons to whom main income equalisation scheme applies

Deposits and accounts

EH 4

Main deposit

EH 5

Main income equalisation account

Interest

EH 6

Interest on deposits in main income equalisation account

Refund of excess deposit

EH 9

Income does not include excess deposit

EH 10

Refund at end of 5 years

EH 11

Income when refund given at end of 5 years

Refunds: on application

EH 12

Application for refund by person, trustee of estate, Official Assignee, or liquidator

EH 13

Refund on application

EH 14

Income when refund given on application

EH 15

Refund for development or recovery

EH 16

Income when refund given for development or recovery

EH 17

Refund on retirement

EH 18

Income when refund given on retirement, and election to allocate amount to earlier year

EH 19

Refund on death

EH 20

Income when refund given on death

EH 21

Income when refund given on death, and election to allocate amount to earlier year

EH 22

Income when refund given on death, and election to allocate amount to later year or years

EH 23

Refund on bankruptcy

EH 24

Income when refund given on bankruptcy

EH 25

Refund on liquidation

EH 26

Income when refund given on liquidation

Refunds: general provisions

EH 27

Amendment of assessment

EH 28

Minimum refund

EH 29

Deposits from which refunds come

Tax credit

EH 30

When person entitled to tax credit

EH 31

Kind and amount of refund that entitles person to tax credit

EH 32

Kind of person entitled to tax credit

Meaning of income from forestry

EH 35

Meaning of main maximum deposit

EH 36

Other definitions

Adverse event income equalisation scheme

Application

EH 37

Persons to whom adverse event income equalisation scheme applies [Repealed]

Deposits and accounts

EH 38

Adverse event deposit [Repealed]

EH 39

Adverse event income equalisation account [Repealed]

Interest

EH 40

Interest on deposits in adverse event income equalisation account [Repealed]

Deduction

EH 41

Deduction of deposit [Repealed]

Refunds: automatic

EH 42

Refund of excess deposit [Repealed]

EH 43

Income does not include excess deposit [Repealed]

Refunds: on application

EH 44

Application for refund by person, trustee of estate, Official Assignee, or liquidator [Repealed]

EH 45

Refund on application [Repealed]

EH 46

Income when refund given on application [Repealed]

EH 47

Refund on retirement [Repealed]

EH 48

Income when refund given on retirement, and election to allocate amount to earlier year [Repealed]

EH 49

Refund on death [Repealed]

EH 50

Income when refund given on death [Repealed]

EH 51

Income when refund given on death, and election to allocate amount to earlier year [Repealed]

EH 52

Income when refund given on death, and election to allocate amount to later year or years [Repealed]

EH 53

Refund on bankruptcy [Repealed]

EH 54

Income when refund given on bankruptcy [Repealed]

EH 55

Refund on liquidation [Repealed]

EH 56

Income when refund given on liquidation [Repealed]

Refunds: general provisions

EH 57

Amendment of assessment [Repealed]

EH 58

Minimum refund [Repealed]

EH 59

Deposits from which refunds come [Repealed]

Transfers

EH 60

Transfer of deposit [Repealed]

Definitions

EH 61

Meaning of adverse event maximum deposit [Repealed]

EH 62

Other definitions [Repealed]

Thinning operations income equalisation scheme

Application

EH 63

Persons to whom thinning operations income equalisation scheme applies

Deposits and accounts

EH 64

Thinning operations deposit

EH 65

Thinning operations income equalisation account

Interest

EH 66

Interest on deposits in thinning operations income equalisation account

Refund of excess deposit

EH 69

Income does not include excess deposit

Refunds: on application

EH 70

Application for refund by person or liquidator

EH 71

Refund on application

EH 72

Income when refund given on application

EH 73

Refund for development or recovery

EH 74

Income when refund given for development or recovery

EH 75

Refund on liquidation

EH 76

Income when refund given on liquidation

Refunds: general provisions, and tax credits

EH 77

Sections of main income equalisation scheme that apply to thinning operations income equalisation scheme

Definitions

EH 78

Meaning of thinning operations maximum deposit

EH 79

Other definitions

Subpart EI—Spreading of specific income

Farming and forestry

EI 1

Spreading backward of income from timber

Inflation-indexed instruments

EI 2

Interest from inflation-indexed instruments

Intellectual property

EI 3

Assigning or granting copyright

EI 4

Spreading income from patent rights

Land

EI 4B

Consideration for agreement to grant, renew, extend, or transfer leasehold estate or licence

EI 5

Amount paid to lessor for non-compliance with covenant for repair

EI 6

Amount paid for non-compliance: when lessor ceases to own land

EI 7

Leases: income derived in anticipation

EI 8

Disposal of land to the Crown

Shareholder-employees

EI 9

Matching rule for employment income of shareholder-employee

Subpart EJ—Spreading of specific expenditure

Farming and forestry

EJ 1

Spreading backward of deductions for costs of timber

EJ 2

Spreading forward of deductions for repairs to fishing boats

EJ 3

Spreading forward of fertiliser expenditure

Films

EJ 4

Expenditure incurred in acquiring film rights in feature films

EJ 5

Expenditure incurred in acquiring film rights in films other than feature films

EJ 6

Certification of New Zealand films

EJ 7

Film production expenditure for New Zealand films having no large budget film grant

EJ 8

Film production expenditure for other films having no large budget film grant

EJ 9

Avoidance arrangements

Leases

EJ 10

Personal property lease payments

EJ 10B

IFRS leases

EJ 11

Amount paid by lessee for non-compliance with covenant for repair

Petroleum mining

EJ 12

Petroleum development expenditure: default allocation rule

EJ 12B

Petroleum development expenditure: reserve depletion method

EJ 13

Permanently ceasing petroleum mining operations

Spreading deduction backwards [Repealed]

EJ 15

Disposal of petroleum mining asset

EJ 16

Disposal of petroleum mining asset to associate

EJ 17

Partnership interests and disposal of part of asset

EJ 18

Petroleum mining operations outside New Zealand

Definitions

EJ 19

Meaning of offshore development [Repealed]

EJ 20

Meaning of petroleum mining development

Mineral mining

EJ 20B

Certain mining expenditure spread over assumed life of mine

EJ 20C

Length of spreading period

EJ 20D

Measurement of assumed life of mine and application to rate

EJ 20E

Certain mining expenditure spread on basis of units of production

Superannuation contributions

EJ 21

Contributions to employees’ superannuation schemes

Research, development, and resulting market development

EJ 22

Deductions for market development: product of research, development

EJ 23

Allocation of deductions for research, development, and resulting market development

Aircraft engine overhauls

EJ 24

Allocation of expenditure on aircraft engine overhauls

EJ 25

Allocation of expenditure on aircraft engine overhauls: election by IFRS user

EJ 26

Allocation of expenditure on aircraft engine overhauls: election by operator of single aircraft

EJ 27

Disposal of aircraft engine or aircraft

Subpart EK—Environmental restoration accounts

EK 1

Payment to Crown Bank Account

EK 2

Persons who may make payment to environmental restoration account

EK 3

Payments to environmental restoration account

EK 4

Environmental restoration account

EK 5

Details to be provided with payment to environmental restoration account

EK 6

Interest on payments to environmental restoration account

EK 7

Deduction for payment

EK 8

Deduction for transfer

EK 9

Refund of payment if excess, lacking details

EK 10

Certain refunds not income

EK 11

Application for refund

EK 12

Refund if application or excess balance

EK 13

Income when refund given on application

EK 14

Application for transfer

EK 15

Transfer on application

EK 16

Transfer on death, bankruptcy, or liquidation

EK 17

Minimum refund or transfer

EK 18

Payments from which refunds come

EK 19

Environmental restoration account of amalgamating company

EK 20

Environmental restoration account of consolidated group company

EK 21

Notices in electronic format

EK 22

Meaning of maximum payment

EK 23

Other definitions

Subpart EL—Allocation of deductions for excess residential land expenditure

Introductory provisions

EL 1

Outline of subpart: general

EL 2

Outline of subpart: specific provisions

EL 3

Definitions for this subpart

Allocation rules for residential rental property

EL 4

Allocation of deductions for loss-making residential rental properties

EL 5

When residential portfolios sold

EL 6

Choosing to apply rules on property-by-property basis

EL 7

When property A sold

EL 8

Treatment of previously transferred amounts on fully-taxed disposals [Repealed]

Exclusions from rules

EL 9

Main home exclusion

EL 10

Exclusion for land held on revenue account

EL 11

Exclusion for property held by certain persons and entities

EL 12

Exclusion for mixed-use assets

EL 13

Exclusion for property provided as employee accommodation

Application of rules by certain entities

EL 14

Continuity rules for companies

EL 15

Transfers between companies in wholly-owned groups

Interposed entities

EL 16

Interests in residential land-rich entities

EL 17

Calculations for section EL 16

EL 18

Modifications when entities transparent

EL 19

Valuation of assets

Allocation rules for bright-line disposals of land

EL 20

Allocation of deductions related to bright-line disposals of residential land

Subpart EM—Hedging of currency movements in Australian non-attributing shares and attributing FDR method interests

EM 1

Australian non-attributing shares and attributing FDR method interests

EM 2

Who does this subpart apply to?

EM 3

What hedges does this subpart apply to?

EM 4

Elections

EM 5

Fair dividend rate hedge portions: hedge-by-hedge methods

EM 5B

Fair dividend rate hedge portions: portfolio method

EM 6

Income and expenditure for fair dividend rate hedge portions

EM 7

Quarterly test of fair dividend rate hedge portions

EM 8

Some definitions

Subpart EW—Financial arrangements rules

Introductory provisions

EW 1

What this subpart does

EW 2

Relationship of financial arrangements rules with other provisions

Meaning of financial arrangement and excepted financial arrangement

EW 3

What is a financial arrangement?

EW 4

What is not a financial arrangement?

EW 5

What is an excepted financial arrangement?

EW 6

Relationship between financial arrangements and excepted financial arrangements

EW 7

Change from private or domestic purpose

EW 8

Election to treat certain excepted financial arrangements as financial arrangements

Application of financial arrangements rules

EW 9

Persons to whom financial arrangements rules apply

EW 10

Financial arrangements to which financial arrangements rules apply

EW 11

What financial arrangements rules do not apply to

Calculation and allocation of income and expenditure over financial arrangement’s term

EW 12

When use of spreading method required

EW 13

When use of spreading method not required

EW 14

What spreading methods do

EW 15

What is included when spreading methods used

EW 15B

Applying IFRSs to financial arrangements

EW 15C

Preparing and reporting methods

EW 15D

IFRS financial reporting method

EW 15E

Determination alternatives

EW 15F

Expected value method

EW 15G

Modified fair value method

EW 15H

Mandatory use of some determinations

EW 15I

Mandatory use of yield to maturity method for some arrangements

EW 16

Yield to maturity method or alternative

EW 17

Straight-line method

EW 18

Market valuation method

EW 19

Choice among some spreading methods

EW 20

Determination method or alternative

EW 21

Financial reporting method

EW 22

Default method

EW 23

Failure to use method for financial reporting purposes

EW 24

Consistency of use of spreading method

EW 25

Consistency of use of straight-line method and market valuation method

EW 25B

Consistency of use of IFRS method

EW 26

Change of spreading method

EW 27

Spreading method adjustment formula

Calculation and allocation of income and expenditure when rights and obligations under financial arrangement cease

EW 28

How base price adjustment calculated

EW 29

When calculation of base price adjustment required

EW 30

When calculation of base price adjustment not required

EW 31

Base price adjustment formula

Consideration

Consideration when financial arrangement involves property or services

EW 32

Consideration for agreement for sale and purchase (ASAP) of property or services, hire purchase agreement, specified option, or finance lease

EW 33

Consideration for hire purchase agreement or finance lease

EW 33B

Foreign ASAPs: designated FX hedges

EW 33C

Consideration in foreign currency: some agreements for sale and purchase

EW 33D

Foreign ASAPs: contingencies for business combinations

EW 34

Consideration in foreign currency

EW 35

Value relevant for non-financial arrangements rule

Consideration treated as paid to person

EW 36

Consideration when person exits from rules: accrued entitlement

EW 37

Consideration when person enters rules: accrued obligation

EW 38

Consideration when disposal for no, or inadequate, consideration

EW 39

Consideration affected by unfavourable factors

Consideration treated as paid by person

EW 40

Consideration when person exits from rules: accrued obligation

EW 41

Consideration when person enters rules: accrued entitlement

EW 42

Consideration when acquisition for no, or inadequate, consideration

EW 43

Consideration when debt disposed of at discount to associate of debtor

EW 44

Consideration when debt forgiven for natural love and affection

EW 45

Consideration when debtor released from obligation

EW 46

Consideration when debtor released as condition of new start grant [Repealed]

EW 46B

Consideration when party changes from fair value method

EW 46C

Consideration when debt remitted within economic group

EW 46D

Consideration when insolvent company’s debt repaid with consideration received for issuing shares

Consideration when legal defeasance has occurred

EW 47

Legal defeasance

Consideration for cessation of LTCs and dissolution of partnerships

EW 47B

Cessation of LTCs and dissolution of partnerships

Consideration when anti-avoidance provision applies

EW 48

Anti-avoidance provisions

Income and deduction provisions specifically related to financial arrangements

EW 49

Income and deduction when debt disposed of at discount to associate of debtor

EW 49B

Guarantees for associated persons

EW 50

Income when debt forgiven to trustee

EW 51

Deduction for security payment

Treatment of original share acquired under financial arrangement

EW 52

Share supplier under share-lending arrangement

EW 52B

Excepted financial arrangements involving pre-1990 forest land emissions units

One kind of avoidance

EW 53

Adjustment required

Application of financial arrangements rules to cash basis persons

EW 54

Meaning of cash basis person

EW 55

Effect of being cash basis person

EW 56

Natural person [Repealed]

EW 57

Thresholds

EW 58

Financial arrangements, income, and expenditure relevant to criteria

EW 59

Exclusion by Commissioner

EW 60

Trustee of deceased’s estate

EW 61

Election to use spreading method

EW 62

When and how calculation of cash basis adjustment required

EW 63

Cash basis adjustment formula

Subpart EX—Controlled foreign company and foreign investment fund rules

Controlled foreign company (CFC) rules

When is a company a controlled foreign company?

EX 1

Meaning of controlled foreign company

Calculation of person’s control interest

EX 2

Four categories for calculating control interests

EX 3

Control interest: total of direct, indirect, and associated person interests

EX 4

Limits to requirement to include associated person interests

EX 5

Direct control interests

EX 6

Direct control interests include options and similar rights

EX 7

Indirect control interests

Calculation of person’s income interest

EX 8

Income interests: total of direct and indirect interests

EX 9

Direct income interests

EX 10

Indirect income interests

EX 11

EX 12

Reduction of total income interests

EX 13

Income interests of partners [Repealed]

Ten percent threshold and variations in income interest level

EX 14

Attribution: 10% threshold, not PIE

EX 15

Associates and 10% threshold

EX 16

Income interests for certain purposes

EX 17

Income interest if variations within period

Calculation of attributed CFC income or loss

EX 18A

Scheme for finding person’s attributed CFC income or loss

EX 18

Formula for calculating attributed CFC income or loss

EX 19

Taxable distribution from non-complying trust

EX 20

Reduction in attributed CFC loss

Attributable CFC amount and net attributable CFC income or loss

EX 20B

Attributable CFC amount

EX 20C

Net attributable CFC income or loss

EX 20D

Adjustment of cost fraction for excessively debt funded CFC

EX 20E

Relative debt-asset ratio for CFC

Calculation of branch equivalent income or loss

EX 21

Attributable CFC amount and net attributable CFC income or loss: calculation rules

Non-attributing active CFCs

EX 21B

Non-attributing active CFCs

Tests for non-attributing active CFCs

EX 21C

Applicable accounting standards for section EX 21E

EX 21D

Non-attributing active CFC: default test

EX 21E

Non-attributing active CFC: test based on accounting standard

EX 21F

Part-period calculations

Non-attributing Australian CFCs

EX 22

Non-attributing Australian CFCs

EX 23

Tax concession grey list CFCs [Repealed]

Change of residence of companies

EX 24

Companies moving to or from New Zealand

Change of CFC’s balance date

EX 25

Change of CFC’s balance date

Ownership measurement concession

EX 26

Use of quarterly measurement

Anti-avoidance rule: stapled stock

EX 27

Anti-avoidance rule: stapled stock

Foreign investment fund (FIF) rules

What is a foreign investment fund?

EX 28

Meaning of FIF

Attributing interests in FIFs

EX 29

Attributing interests in FIFs

EX 30

Direct income interests in FIFs

EX 31

Exemption for ASX-listed Australian companies

EX 32

Exemption for Australian unit trusts with adequate turnover or distributions

EX 33

Exemption for Australian regulated superannuation savings

EX 34

CFC rules exemption

EX 35

Exemption for interest in FIF resident in Australia

EX 36

Venture capital company emigrating to grey list country: 10-year exemption

EX 37

Grey list company owning New Zealand venture capital company: 10-year exemption

EX 37B

Share in grey list company acquired under venture investment agreement

EX 38

Exemptions for employee share schemes

EX 39

Terminating exemption for grey list company with numerous New Zealand shareholders [Repealed]

EX 40

Foreign exchange control exemption

EX 41

Income interest of non-resident or transitional resident

EX 42

New resident’s accrued superannuation entitlement exemption [Repealed]

EX 42B

Interests in foreign superannuation scheme other than FIF superannuation interests

EX 43

Non-resident’s pension or annuity exemption

Calculation of FIF income or loss

EX 44

Five calculation methods

EX 45

Exclusion of amounts of death benefit

EX 46

Limits on choice of calculation methods

EX 47

Method required for certain non-ordinary shares

EX 47B

Method required for shares subject to certain returning share transfers

EX 48

Default calculation method

EX 49

Accounting profits method [Repealed]

EX 50

Attributable FIF income method

EX 51

Comparative value method

EX 52A

Fair dividend rate method: use of different forms

EX 52

Fair dividend rate annual method

EX 53

Fair dividend rate periodic method

EX 54

Fair dividend rate method and cost method: when periods affected by share reorganisations

EX 55

Deemed rate of return method

EX 56

Cost method

EX 57

Conversion of foreign currency amounts: most methods

EX 58

Additional FIF income or loss if CFC owns FIF

Relationship with other provisions in Act

EX 59

Codes: comparative value method, deemed rate of return method, fair dividend rate method, and cost method

EX 60

Top-up FIF income: deemed rate of return method

EX 61

Top-up FIF income: 1 April 1993 uplift interests

Changing calculation method

EX 62

Limits on changes of method

EX 63

Consequences of changes in method

Cases of entry into and exit from FIF rules

EX 64

Migration of persons holding FIF interests

EX 65

Changes in application of FIF exemptions

EX 66

Entities emigrating from New Zealand

EX 66B

Entities ceasing to be FIFs

EX 67

FIF rules first applying to interest on or after 1 April 2007

EX 67B

Revaluation of inherited interests in grey list companies

Measurement of cost

EX 68

Measurement of cost

Change of FIF’s balance date

EX 69

Change of FIF’s balance date

Market value rules

EX 70

Market value of life policy and superannuation entitlements

EX 71

Non-market transactions in FIF interests

Commissioner’s default assessment power

EX 72

Commissioner’s default assessment power

Election relating to CFC or FIF

EX 73

Election that CFC not non-attributing active CFC or FIF not non-attributing active FIF

Subpart EY—Life insurance rules

Introductory provisions

EY 1

What this subpart does

Apportionment of income of particular source or nature, and of tax credits

EY 5

Part-year tax calculations

EY 6

Actuarial advice and guidance

EY 7

Meaning of claim

EY 8

Meaning of life insurance

EY 9

Meaning of life insurance policy

EY 10

Meaning of life insurer

EY 11

Superannuation schemes providing life insurance

EY 12

Meaning of life reinsurance

EY 13

Meaning of life reinsurance policy

EY 14

Life insurance and life reinsurance: how sections relate

Policyholder base

Non-participation policies

EY 15

Policyholder base income: non-participation policies

EY 16

Policyholder base allowable deductions: non-participation policies

EY 16B

Policyholder base allowable deductions: consideration for investment management services

Profit participation policies

EY 17

Policyholder base income: profit participation policies

EY 18

Policyholder base allowable deductions: profit participation policies

Shareholder base

Non-participation policies

EY 19

Shareholder base income: non-participation policies

EY 19B

Shareholder base income: consideration credited for investment management services

EY 20

Shareholder base allowable deductions: non-participation policies

Profit participation policies

EY 21

Shareholder base income: profit participation policies

EY 22

Shareholder base allowable deductions: profit participation policies

Non-participation policies: reserves

EY 23

Reserving amounts for life insurers: non-participation policies

EY 24

Outstanding claims reserving amount: non-participation policies not annuities

EY 25

Premium smoothing reserving amount: non-participation policies not annuities

EY 26

Unearned premium reserving amount: non-participation policies not annuities

EY 27

Capital guarantee reserving amount: non-participation policies not annuities

Shareholder base other profit: profit participation policies

EY 28

Shareholder base other profit: profit participation policies that are existing business

EY 29

Shareholder base other profit: profit participation policies that are new business

Transitional adjustments and annuities

EY 30

Transitional adjustments: life risk

EY 31

Annuities

EY 32

Mortality profit formula: when partial reinsurance exists [Repealed]

EY 33

Mortality profit formula: individual result may be negative only in some cases [Repealed]

EY 34

Mortality profit formula: negative result [Repealed]

EY 35

How discontinuance profit is calculated [Repealed]

EY 36

Discontinuance profit for income year [Repealed]

EY 37

Discontinuance profit formula (existing policies) [Repealed]

EY 38

Discontinuance profit formula (new policies) [Repealed]

EY 39

Discontinuance profit formula (existing policies): when partial reinsurance exists [Repealed]

EY 40

Discontinuance profit formula (new policies): when partial reinsurance exists [Repealed]

EY 41

Discontinuance profit formulas: individual result may never be negative [Repealed]

EY 42

How policyholder income is calculated [Repealed]

EY 43

Policyholder income formula [Repealed]

EY 43B

Policyholder income formula: FDR adjustment [Repealed]

EY 43C

Policyholder income formula: PILF adjustment [Repealed]

EY 44

Policyholder income formula: when partial reinsurance exists [Repealed]

EY 45

Policyholder income formula: when life insurance business transferred [Repealed]

EY 46

Income from disposal of property [Repealed]

EY 47

Deductions for disposal of property [Repealed]

Non-resident life insurers

EY 48

Non-resident life insurers with life insurance policies in New Zealand

EY 49

Non-resident life insurer becoming resident

Subpart EZ—Terminating provisions

Life insurance

EZ 1

Life insurers acquiring property before 1 April 1988

EZ 2

Deductions for disposal of property: 1982–83 and 1989–90 income years

Petroleum mining

EZ 3

Petroleum development expenditure from 1 October 1990 to 15 December 1991

Livestock

EZ 4

Valuation of livestock bailed or leased as at 2 September 1992

EZ 4B

Cattle destroyed because of Mycoplasma bovis: spreading

EZ 5

Reduction: bloodstock not previously used for breeding in New Zealand: pre-1 August 2006

EZ 6

Reduction: broodmare previously used for breeding in New Zealand: pre-1 August 2006

EZ 6B

National minimum price threshold for 2019 calendar year

Patent rights

EZ 7

Acquiring patent rights before 1 April 1993

Leases of land

EZ 8

Premium paid on land leased before 1 April 1993

Depreciation

EZ 9

Pool method for items accounted for by globo method for 1992–93 income year

EZ 10

Pool items accounted for by globo method for 1992–93 income year

EZ 11

Amounts of depreciation recovery income and depreciation loss for part business use up to 2004–05 income year

EZ 12

Amount of depreciation loss for item acquired from associated person on or before 23 September 1997

EZ 13

Annual rate for item acquired on or after 1 April 1993 and before end of person’s 1994–95 income year

EZ 14

Pre-1993 depreciation rate

EZ 15

Annual rate for excluded depreciable property: 1992–93 tax year

EZ 16

Amount of depreciation loss for plant or machinery additional to section EZ 15 amount

EZ 17

Additional amount of depreciation loss: between 16 December 1991 and 1 April 1994

EZ 18

Section EZ 17 amount of depreciation loss when items transferred between companies in wholly-owned group before 1 April 1993

EZ 19

Section EZ 17 amount of depreciation loss when person previously exempt from tax acquires item

EZ 20

Adjusted tax value for software acquired before 1 April 1993

EZ 21

Sections EE 45 and EE 47: permanent removal: allowance before 1 April 1995

EZ 22

Base value and total deductions in section EE 56: before 1 April 1995

EZ 23

Economic rate for plant or equipment acquired before 1 April 2005 and buildings acquired before 19 May 2005

EZ 23BA

Aircraft acquired before 2017–18 income year: adjusted tax value, base value, reduced; total deductions increased

EZ 23B

Property acquired after depreciable property affected by Canterbury earthquakes

EZ 23BB

Interest in property acquired after depreciable property affected by Canterbury earthquakes

EZ 23BC

Property acquired after depreciable property affected by Hurunui/Kaikōura earthquakes

EZ 23BD

Loss on disposal of grandparented structure

EZ 23C

Insurance for Canterbury earthquake damage of property: treatment as disposal and reacquisition [Repealed]

EZ 23D

Insurance for Canterbury earthquake damage of property: limit on depreciation recovery income [Repealed]

EZ 23E

Item treated as available for use if access restricted due to Canterbury earthquake [Repealed]

EZ 23F

Insurance for Canterbury earthquake damage causing disposal: optional timing rule for income, deductions [Repealed]

EZ 23G

Insurance for repairs of Canterbury earthquake damage: optional timing rule for income, deductions [Repealed]

Meaning of New Zealand-new asset

EZ 26

Meaning of qualifying capital value

EZ 27

Meaning of qualifying improvement

EZ 28

Meaning of qualifying asset

Accident insurance

EZ 29

Private insurers under Accident Insurance Act 1998

EZ 30

Base premium for 1998–99 premium year under Accident Insurance Act 1998

Controlled foreign company and foreign investment fund rules

EZ 31

Disclosure restrictions on grey list CFCs before 2011–12 [Repealed]

EZ 32

Terminating exemption for grey list FIF investing in Australasian listed equities [Repealed]

EZ 32B

Transitional rule for IFRS reporting [Repealed]

EZ 32C

Treatment in section EX 20C of currency effects on CFC’s borrowing [Repealed]

EZ 32D

Value of asset fraction: CFC with excessive debt funding and loan entered before 21 June 2012

EZ 32E

Change in section EX 20B for income of CFC insurer: interest on terminal tax

EZ 32F

Applicable accounting standard for section EX 21E: former generally accepted accounting practice without IFRS

EZ 32G

Person deriving pension from foreign superannuation scheme and returning as income before 1 April 2014

Old financial arrangements rules

EZ 33

Application of old financial arrangements rules

EZ 34

Election to apply financial arrangements rules in subpart EW

EZ 35

Accruals in relation to income and expenditure in respect of financial arrangements

EZ 36

Excepted financial arrangement that is part of financial arrangement

EZ 37

Cash basis holder

EZ 38

Income and expenditure where financial arrangement redeemed or disposed of

EZ 39

Forgiveness of debt

EZ 40

Accrued income written off

EZ 41

Disposal of debt to associate of debtor

EZ 42

Post facto adjustment

EZ 43

Variable principal debt instruments

EZ 44

Relationship with rest of Act

EZ 45

Application of old financial arrangements rules

EZ 46

Election to treat short term trade credit as financial arrangement

EZ 47

Election to continue to treat certain excepted financial arrangements as financial arrangements

EZ 48

Definitions

EZ 49

Determination of core acquisition price where consideration for property denominated in foreign currency

EZ 50

Rules for non-market transactions

EZ 51

Transitional adjustment when changing to financial arrangements rules

EZ 52

References to new rules include old rules

EZ 52B

Consistency of use of IFRS method: Determination G3 change allowed

EZ 52C

Change of spreading method: Determination G22 to Determination G22A

EZ 52D

Base price adjustment: financial arrangements to which Determination G22 and Determination G22A applied

Life insurance transitional adjustment: expected death strain

Expected death strain formulas

EZ 53

How expected death strain is calculated

EZ 54

Expected death strain formulas

EZ 55

Expected death strain formulas: option when more than 1 life insured

EZ 56

Expected death strain formula (life): when annuity payable on death

EZ 57

Expected death strain formulas: when annuity payable on survival to date or age specified in policy

EZ 58

Expected death strain formula (life): when partial reinsurance exists

Actuarial reserves

EZ 59

Meaning of actuarial reserves

EZ 60

Actuarial reserves: calculation

Entry to new life insurance regime: transitional and miscellaneous provisions

EZ 61

Allowance for cancelled amount: spreading

EZ 62

Reinsurance transition: life financial reinsurance may be life reinsurance

EZ 63

Disposal and acquisition upon entry

Restructuring under New Zealand Railways Corporation Restructuring Act 1990

EZ 64

New Zealand Railways Corporation restructure: purpose and initial amounts for tax purposes

EZ 65

Expenditure or loss incurred, and amounts derived

IFRS financial reporting method

EZ 69

IFRS financial reporting method: interest-free and low-interest loans

EZ 69B

IFRS financial reporting method: equity or other comprehensive income

Damage from Canterbury earthquakes

EZ 70

Insurance for Canterbury earthquake damage of property: treatment as disposal and reacquisition

EZ 71

Insurance for Canterbury earthquake damage of property: limit on depreciation recovery income

EZ 72

Item treated as available for use if access restricted due to Canterbury earthquake

EZ 73

Insurance for Canterbury earthquake damage causing disposal: optional timing rule for income, deductions

EZ 74

Insurance for repairs of Canterbury earthquake damage: optional timing rule for income, deductions

EZ 75

Consideration for property or services: IFRS foreign ASAPs before 2014–15 income year

EZ 76

Consideration for property or services: non-IFRS foreign ASAPs before 2014–15 income year

EZ 77

Substituting debentures repeal: transitional rules

Damage from Hurunui/Kaikōura earthquakes

EZ 78

Insurance for Hurunui/Kaikōura earthquake damage of property: treatment as disposal and reacquisition

EZ 79

Insurance for Hurunui/Kaikōura earthquake damage of property: limit on depreciation recovery income

Income equalisation schemes

EZ 80

Refund of excess deposit in main income equalisation account as consequence of election under section EZ 4B

EZ 81

Refund of excess deposit in adverse event income equalisation account as consequence of election under section EZ 4B

Adverse event income equalisation accounts

EZ 82

Transfers of deposits when adverse event income equalisation accounts abolished

Part F Recharacterisation of certain transactions

Subpart FA—Recharacterisation of certain commercial arrangements

Introductory provision

FA 1

What this subpart does

Debentures and shares

FA 2

Recharacterisation of certain debentures

FA 2B

Stapled debt securities

FA 3

Recharacterisation of certain dividends: recovery of cost of shares held on revenue account

FA 4

Recharacterisation of shareholder’s base: company reacquiring share

Leases

FA 5

Assets acquired and disposed of after deduction of payments under lease

Finance leases

FA 6

Recharacterisation of amounts derived under finance leases

FA 7

Determining amount of loan

FA 8

Deductibility of expenditure under finance lease

FA 9

Treatment when lease ends: lessee acquiring asset

FA 10

Treatment when lease ends: lessor acquiring asset

FA 11

Adjustments for leases that become finance leases

FA 11B

Adjustments for certain operating leases

Hire purchase agreements

FA 12

Recharacterisation of amounts derived under hire purchase agreements

FA 13

Agreements recharacterised as sale with finance provided

FA 14

Deductibility of expenditure or loss under hire purchase agreement

FA 15

Treatment when agreement ends: seller acquiring property

FA 16

Treatment when agreement ends: when seller is cash basis person

FA 17

Treatment when agreement ends: when buyer is cash basis person

FA 18

Treatment of amounts paid in income years after agreement ends

Subpart FB—Transfers of relationship property

FB 1

When this subpart applies

FB 1B

Meaning of settlement of relationship property and property

FB 1C

Obligations for periods before and from transfer of property

Land acquired for certain purposes or under certain conditions

FB 4

Land under scheme for major development or division

FB 5

Disposal of land

FB 6

Timber or right to take timber

FB 7

Land with standing timber

FB 8

Patent applications and patent rights

FB 9

Financial arrangements rules

FB 10

Continuity provisions: shares and options

FB 10B

Look-through companies

FB 11

Pension payments to former employees

FB 12

Pension payments to former partners

Specified livestock valued under herd scheme

FB 16

Non-specified livestock

FB 17

High-priced livestock

Mining assets [Repealed]

FB 21

Depreciable property

Subpart FC—Distribution, transmission, and gifts of property

Introductory provisions

FC 1

Disposals to which this subpart applies

FC 2

Transfer at market value

Exceptions for property transferred on death of person

FC 3

Property transferred to spouse, civil union partner, or de facto partner

FC 4

Property transferred to charities or to close relatives and others

FC 5

Land transferred to close relatives

FC 6

Forestry assets transferred to close relatives

FC 7

Transfer of prepaid property

FC 8

Transfer of certain financial arrangements

FC 9

Residential land transferred to executor, administrator, or beneficiary on death of person

Exceptions for residential land transferred to trustees of certain trusts or other entities

FC 9B

Residential land: certain transferors

FC 9C

Residential land: certain recipients

FC 9D

Residential land: certain recipients of Treaty of Waitangi land

Bankruptcy or insolvency of person under Insolvency Act 2006

FC 10

Transfers from person to Official Assignee under Insolvency Act 2006

Subpart FE—Interest apportionment on thin capitalisation

Introductory provisions

FE 1

What this subpart does

FE 2

When this subpart applies

FE 3

Interest apportionment for individuals

FE 4

Some definitions

FE 4B

Meaning of public project asset, public project debt, and public project participant debt

Interest apportionment rules

FE 5

Thresholds for application of interest apportionment rules

FE 6

Apportionment of interest by excess debt entity

FE 6B

Alternative apportionment of interest by some excess debt entities

FE 7

Apportionment of interest by reporting bank

FE 7B

Interest on public project debt for certain excess debt entities

Disregarded increases or decreases in value

Calculations

FE 12

Calculation of debt percentages

FE 12B

Calculations for group for test and apportionment using interest-income ratio

FE 13

Financial arrangements entered into with persons outside group

Debt percentage of New Zealand group

FE 14

Consolidation of debts and assets

Total group non-debt liabilities

Debt percentage of worldwide group

FE 17

Consolidation of debts and assets

FE 18

Measurement of debts and assets of worldwide group

New Zealand banking group

FE 19

Banking group’s equity threshold

FE 20

Financial value and regulatory value

FE 21

Banking group’s New Zealand net equity

FE 22

Notional offshore investment

FE 23

Banking group’s funding debt

FE 24

Regulations

Determining membership of groups

New Zealand group

FE 25

New Zealand group for excess debt entity that is a company or non-resident owning body

FE 26

Identifying New Zealand parent

FE 27

Establishing companies under parent’s control

FE 28

Identifying members of New Zealand group

FE 29

Combining New Zealand groups owned by natural persons and trustees

FE 30

Ownership interests in companies outside New Zealand group

Worldwide group

FE 31

Worldwide group for corporate excess debt entity if not excess debt outbound company

FE 31B

Worldwide group for excess debt outbound companies

FE 31C

CFCs in worldwide group for natural persons or trustees described in section FE 2(1)(g)

FE 31D

Worldwide group for entity controlled by non-resident owning body or trustee

FE 32

Joint venture parties

New Zealand banking group

FE 33

New Zealand banking group

FE 34

Identifying ultimate parent

FE 35

Persons who may be excluded from banking groups

FE 36

Identifying members of New Zealand banking group in usual case

FE 36B

Identifying members of New Zealand banking group: Crown-owned, no interest apportionment

FE 37

Reporting bank for New Zealand banking group

Measuring ownership interests in companies

FE 38

Measuring ownership interests in companies

FE 39

Direct ownership interests

FE 40

Tiered ownership interests

FE 41

Treatment of associated persons’ interests

Subpart FF—Interest apportionment for conduit investment [Repealed]

Introductory provisions

FF 1

What this subpart does [Repealed]

FF 2

When interest apportionment rule applies [Repealed]

FF 3

Steps required to determine treatment of excessive interest expenditure [Repealed]

Interest apportionment rule

FF 4

Threshold for application of interest apportionment rule [Repealed]

FF 5

Determination of excess amount of interest expenditure of group [Repealed]

FF 6

Conduit tax relief [Repealed]

FF 7

Surplus to foreign dividends [Repealed]

Membership and debt percentages of foreign groups

FF 8

Identifying members of foreign groups [Repealed]

FF 9

Calculating debt percentage of New Zealand foreign groups [Repealed]

FF 10

Calculating debt percentage of consolidated foreign groups [Repealed]

FF 11

Changes in foreign group membership [Repealed]

Subpart FG—Treatment of notional loans to New Zealand branches of foreign banks

FG 1

When this subpart applies

Subpart FH—Hybrid and branch mismatches of deductions and income from multi-jurisdictional arrangements

FH 1

Subpart implements OECD recommendations for domestic law

FH 2

Order of application of provisions

FH 3

Payments under financial instruments producing deduction without income

FH 4

Receipts under financial instruments producing deduction without income

FH 5

Payments by New Zealand resident or New Zealand deducting branch producing deduction without income

FH 5B

Exception: when payee group not allowed deductions for supplies as prerequisites for payer supplies

FH 6

Receipts from non-resident or foreign deducting branch producing deduction without income

FH 7

Payments to person outside New Zealand producing deduction without income

FH 8

Expenditure or loss through hybrid entity or foreign deducting branch producing double deduction without double income

FH 9

Expenditure or loss of hybrid entity, or non-resident through deducting branch, producing double deduction without double income

FH 10

Expenditure or loss of dual resident company producing double deduction without double income

FH 11

Residents, or non-residents with deducting branches, having expenditure funding overseas hybrid mismatches

FH 12

Offset of mismatch amounts against surplus assessable income

FH 13

Election by borrower under financial arrangement

FH 14

Irrevocable election by owner of hybrid entity

FH 15

Definitions

Subpart FL—Emigration of resident companies

FL 1

What this subpart does

FL 2

Treatment of companies that become non-resident and their shareholders

FL 3

Treatment of companies that start being treated as non-resident and their shareholders

Subpart FM—Consolidated groups of companies

Introductory provisions

FM 1

What this subpart applies to

FM 2

Consolidation rules

FM 3

Liability of consolidated groups and group companies

FM 4

Limiting joint and several liability of group companies

FM 5

Liability when company leaves consolidated group

FM 6

Some general rules for treatment of consolidated groups

Calculating taxable income for consolidated group returns

Accounting generally

FM 7

Treatment of amounts derived or expenditure incurred

FM 8

Transactions between group companies: income

FM 9

Amounts that are company’s income

FM 10

Expenditure: intra-group transactions

FM 11

Expenditure: nexus with income derivation

FM 12

Expenditure when deduction would be denied to consolidated group

FM 13

Capital expenditure

FM 14

Part-year financial statements

Accounting for particular property

FM 15

Amortising property and revenue account property

FM 16

Land or business: certain farming or forestry expenditure

FM 17

Trading stock

FM 18

Financial arrangements: transfer from company A to company B

FM 19

Financial arrangements: transfer for fair and reasonable consideration

FM 20

Financial arrangements: transfer at market value

FM 21

Property transfers when companies leave consolidated groups

FM 22

Arrangements to avoid consolidation rules

FM 23

Arrangements for disposal of shares

Treatment of foreign dividends

FM 24

General treatment of foreign dividends [Repealed]

FM 25

Reduction in payments for foreign dividends [Repealed]

FM 26

Using tax losses to pay FDP [Repealed]

FM 27

Refunds of FDP [Repealed]

FM 28

Refund when consolidated group has loss [Repealed]

FM 29

Treatment of credit balance in consolidated group’s FDP account [Repealed]

FM 30

Application of certain provisions to consolidated groups

Membership of consolidated groups

Eligibility and restrictions

FM 31

Eligibility rules

FM 32

Restriction on membership of consolidated groups

FM 33

When membership is reduced

Nominated companies

FM 34

Nominated companies

Forming, joining, or leaving consolidated groups

FM 35

Forming consolidated group

FM 36

Joining existing consolidated group

FM 37

Leaving consolidated group

When membership starts and stops

FM 38

Notice requirements on forming or joining consolidated group

FM 39

Choosing to leave consolidated group

FM 40

Losing eligibility to be part of consolidated group

FM 41

No nominated company

FM 42

When company liquidated

Subpart FN—Imputation groups of companies

FN 1

When this subpart applies

FN 2

Imputation rules

FN 3

Liabilities of companies in imputation group

FN 4

Eligibility rules

FN 5

Imputation groups with reduced numbers

FN 6

Nominated companies

FN 7

Forming imputation groups

FN 8

Trans-Tasman imputation groups and resident imputation subgroups

FN 9

Joining existing imputation group

FN 10

When membership of imputation group ends

FN 11

Company choosing to leave imputation group

FN 12

Company no longer eligible or entitled to membership

FN 13

Imputation group with no nominated company

FN 14

Effect of liquidation of company

Subpart FO—Amalgamation of companies

Introductory provisions

FO 1

What this subpart does

FO 2

Amalgamation rules

FO 3

Resident’s restricted amalgamations

FO 4

Rights and obligations of amalgamated companies

FO 5

Amalgamations and remitted liabilities

Treatment of shares, income, expenditure, and bad debts

FO 6

Cancellation of shares

FO 7

Income derived after amalgamation

FO 8

Bad debts and expenditure or loss on resident’s restricted amalgamation

FO 9

Unexpired portion of prepaid expenditure

Property passing to amalgamated company on amalgamation

FO 10

When property passes on resident’s restricted amalgamation

FO 11

When property passes on amalgamation other than resident’s restricted amalgamation

FO 12

Financial arrangements: resident’s restricted amalgamation, companies in wholly-owned group

FO 13

Financial arrangements: resident’s restricted amalgamation, calculation method unchanged

FO 14

Financial arrangements: resident’s restricted amalgamation, other cases

FO 15

Financial arrangements: amalgamation other than resident’s restricted amalgamation

Treatment of financial arrangements between amalgamating companies

FO 18

When amalgamating companies are parties to financial arrangement

FO 19

Calculation of outstanding accrued balance: consideration for discharge

FO 20

Calculation of outstanding accrued balance: amounts remitted

FO 21

When amalgamating companies are parties to financial arrangements: economic groups

Subpart FZ—Terminating provisions

Debentures

FZ 1

Treatment of interest payable under debentures issued before certain date

Leases

FZ 2

Effect of specified lease on lessor and lessee

FZ 3

Income of lessor under specified lease

FZ 4

Deductions under specified leases

Relationship property

Transitional valuation rule for estate property

Earthquake-affected group property

FZ 7

Valuation of group assets: insurance proceeds from Canterbury earthquake

Interest apportionment rules

FZ 8

Transition period for amendments to interest apportionment rules

Trading stock

FZ 9

Transfers of trading stock to non-associates, donee organisations, or public authorities

Part G Avoidance and non-market transactions

Subpart GA—Avoidance: general

GA 1

Commissioner’s power to adjust

GA 2

Commissioner’s power to adjust: fringe benefit tax

Subpart GB—Avoidance: specific

Arrangements involving dividend stripping

GB 1

Arrangements involving dividend stripping

Arrangements involving transfer pricing

GB 2

Arrangements involving transfer pricing

Arrangements involving tax losses

GB 3

Arrangements for carrying forward loss balances: companies’ ownership

GB 3BA

Arrangements for carrying forward loss balances: companies’ business activities

GB 3BAB

Arrangements to inject income into companies carrying forward loss balances

GB 3BAC

Arrangements to shift expenditure from companies carrying forward loss balances

GB 3B

Arrangements for carrying back net losses: companies

GB 4

Arrangements for grouping tax losses: companies

Arrangements to defeat continuity provisions

GB 5

Arrangements involving trust beneficiaries

Arrangements involving qualifying companies

GB 6

Arrangements involving qualifying companies

Arrangements involving controlled foreign companies

GB 7

Arrangements involving CFC control interests

GB 8

Arrangements involving attributed repatriation from CFCs [Repealed]

GB 9

Temporary disposals of direct control or income interests

GB 10

Temporary acquisitions of direct control or income interests

GB 11

Temporary increases in totals for control interest categories

GB 12

Temporary reductions in totals for control interest categories

GB 13

When combination of changes reduces income

GB 14

When combination of changes increases loss

GB 15

CFC income or loss: arrangements related to quarterly measurement

GB 15BA

CFC income or loss: arrangements for inclusion of CFC in test group

GB 15B

Supplies affecting default test for non-attributing active CFC

GB 15C

Arrangements involving foreign investment funds

GB 16

FIF income or loss: arrangements for measurement day concessions

Arrangements involving film rights

GB 17

Excessive amounts for film rights or production expenditure

GB 18

Arrangements to acquire film rights or incur production expenditure

GB 19

When film production expenditure payments delayed or contingent

Arrangements involving petroleum and mineral mining

GB 20

Arrangements involving petroleum and mineral mining

Arrangements involving financial arrangements

GB 21

Dealing that defeats intention of financial arrangements rules

Arrangements involving trust beneficiary income

GB 22

Arrangements involving trust beneficiary income

Excessive remuneration

GB 23

Excessive remuneration to relatives

GB 24

Exemption for genuine contracts

GB 25

Close company remuneration to shareholders, directors, or relatives

GB 25B

Excessive effective look-through interests

Arrangements involving repatriation of commercial bills

GB 26

Arrangements involving repatriation of commercial bills

Attribution rule for income from personal services

GB 27

Attribution rule for income from personal services

GB 28

Interpretation of terms used in section GB 27

GB 29

Attribution rule: calculation

Arrangements involving restrictive covenants

GB 30

Arrangements to avoid taxation of restrictive covenant payments

Arrangements involving fringe benefit tax

GB 31

FBT arrangements: general

GB 32

Benefits provided to employee’s associates

Arrangements involving depreciation loss

GB 33

Arrangements involving depreciation loss

Arrangements involving imputation rules

GB 34

ICA arrangements for carrying amounts forward

GB 35

Imputation arrangements to obtain tax advantage

GB 36

Reconstruction of imputation arrangements to obtain tax advantage

GB 37

Arrangements for payment of dividend by other companies

GB 38

When sections GB 35 to GB 37 apply to consolidated groups

Arrangements involving foreign dividends

GB 39

FDP arrangements: general [Repealed]

GB 40

BETA arrangements for carrying amounts forward [Repealed]

GB 41

FDPA arrangements for carrying amounts forward [Repealed]

Arrangements involving Maori authority credits

GB 42

Maori authority credit arrangements to obtain tax advantage

GB 43

Reconstruction of Maori authority credit arrangements to obtain tax advantage

Arrangements involving tax credits for families

GB 44

Arrangements involving tax credits for families

Arrangements involving money not at risk

GB 45

Arrangements involving money not at risk

GB 46

Deferral of surplus deductions from arrangements

GB 47

Calculation rules for sections GB 45 and GB 46

GB 48

Defined terms for sections GB 45 and GB 46

Arrangements involving returning share transfers

GB 49

Arrangements involving returning share transfers

Arrangements involving employee share schemes

GB 49B

Employee share schemes

Arrangements involving partners and owners

GB 50

Arrangements involving partners and owners

Arrangements involving interest apportionment rules

GB 51

Proportionality between amount of debt and ownership interests

GB 51B

Increases or decreases in value

Arrangements involving residential land

GB 52

Arrangements involving residential land: companies’ shares

GB 53

Arrangements involving residential land: trusts

Interest incurred in relation to certain land

GB 53B

Interposed residential property percentage: increases or decreases in value

GB 53C

On-lending at lower rate

Arrangements involving establishments and non-resident businesses

GB 54

Arrangements involving establishments

Arrangements involving tax credits for charitable or other public benefit gifts

GB 55

Arrangements involving tax credits for charitable or other public benefit gifts

Arrangements involving research and development tax credits

GB 56

Arrangements involving research and development tax credits

Subpart GC—Market value substituted

Disposals of trading stock or similar property

GC 1

Disposals of trading stock at below market value

GC 2

Disposals of timber rights or standing timber

GC 3

Disposals by life insurers

GC 3B

Disposals of emissions units

GC 4

Disposals and acquisitions of FIF attributing interests

GC 4B

Disposals of ETS units at below market value [Repealed]

Leases

GC 5

Leases for inadequate rent

Transfer pricing arrangements

GC 6

Purpose and application of rules and nature of arrangements

GC 7

Excess amount payable by person

GC 8

Insufficient amount receivable by person

GC 9

Compensating arrangement: person paying less than arm’s length amount

GC 10

Compensating arrangement: person receiving more than arm’s length amount

GC 11

Applications for matching treatment

GC 12

Effect on person’s withholding obligations

GC 13

Calculation of arm’s length amounts

GC 14

Definitions for sections GC 6 to GC 13

Cross-border related borrowing

GC 15

Aspects of loan adjusted for application of sections

GC 16

Credit rating of borrower: other than insuring or lending person

GC 17

Credit rating of borrower: insuring or lending person

GC 18

Loan features disregarded by rules for transfer pricing arrangements

GC 19

Sections GC 15 to GC 18 and financial arrangements entered before application period

Purchase price allocation

GC 20

Effect of purchase price allocation agreement

GC 21

Purchase price allocation required: no agreement

Subpart GZ—Terminating provisions

GZ 1

Limitation on section GB 20: petroleum and mineral mining arrangements

GZ 2

Arrangements involving cancellation of conduit tax relief credits [Repealed]

GZ 3

Donations of trading stock for relief of Canterbury earthquakes

GZ 4

Disposals of trading stock to donee organisations or public authorities

GZ 5

Disposals of trading stock to non-associates

Part H Taxation of certain entities

Subpart HA—Qualifying companies (QC)

Introductory provisions

HA 1

What this subpart does

HA 2

Meaning of qualifying company

HA 3

Meaning of loss-attributing qualifying company [Repealed]

HA 4

Conditions applying

Qualifying company status

HA 5

Elections to become qualifying company

HA 6

Corporate requirements

HA 7

Shareholding requirements

HA 7B

Grandparenting requirement

HA 8

Shareholders’ personal liability

HA 8B

No CFC income interests or FIF direct income interests of 10% or more

HA 9

Limit on foreign non-dividend income

HA 10

Nature of LAQC shares [Repealed]

HA 11

When requirements no longer met: qualifying companies

HA 11B

When requirements no longer met: LAQCs [Repealed]

HA 12

Avoidance arrangements [Repealed]

Treatment of profits, dividends, and tax losses

HA 13

Qualifying companies’ distributions

HA 14

Dividends paid by qualifying companies

HA 15

Fully imputed distributions

HA 16

Dividends paid by qualifying companies to trustee shareholders

HA 17

Dividends derived by qualifying companies

HA 18

Treatment of dividends when qualifying company status ends

HA 19

Credit accounts and dividend statements

HA 20

Attribution of tax losses [Repealed]

HA 21

Loss balances not carried forward

HA 22

Group companies using tax losses

HA 23

Treatment of tax losses on amalgamation

Special tax matters for loss-attributing qualifying companies

HA 24

Treatment of tax losses other than certain foreign losses [Repealed]

HA 25

Treatment of certain foreign losses [Repealed]

HA 26

Attribution when balance dates differ [Repealed]

HA 27

Attribution when loss results in reduction in value of shares [Repealed]

Elections: qualifying companies

HA 28

Elections by trustee shareholders

HA 29

Elections by majority shareholders

HA 30

When elections take effect

HA 31

Revocation of directors’ elections

HA 32

Revocation of shareholders’ elections: by notice

HA 33

Revocation of shareholders’ elections: by event

HA 33B

Transitional rules for look-through companies, partnerships, and sole traderships

HA 34

Period of grace following death of shareholder

HA 35

Period of grace following revocation of election

HA 36

Period of grace following revocation of joint election

HA 37

Period of grace for new shareholder

Elections: loss-attributing qualifying companies

HA 38

Elections by directors and shareholders required [Repealed]

HA 39

Revocation of elections [Repealed]

Qualifying company election tax

HA 40

Liability for qualifying company election tax

HA 41

Calculating qualifying company election tax

HA 42

Paying qualifying company election tax

Effective interests in qualifying companies

HA 43

Meaning of effective interest

HA 44

Measuring effective interests

Subpart HB—Look-through companies

HB 1

Look-through companies are transparent

HB 2

Previous income and expenditure or loss

HB 3

Loss balances extinguished

HB 4

General provisions relating to disposals

HB 5

Disposal of owner’s interests

HB 6

Disposal of trading stock

HB 7

Disposal of depreciable property

HB 8

Disposal of financial arrangements and certain excepted financial arrangements

HB 9

Disposal of short-term agreements for sale and purchase

HB 10

Disposal of livestock

HB 11

Limitation on deductions by persons with interests in look-through companies

HB 12

Limitation on deductions by owners of look-through companies: carry-forward

HB 13

LTC elections

Subpart HC—Trusts

Introductory provisions

HC 1

What this subpart does

HC 2

Obligations of joint trustees for calculating income and providing returns

Amounts derived by trustees

Amounts received after person’s death

Classification of trusts

Distributions from trusts

HC 14

Distributions from trusts

HC 15

Taxable distributions from non-complying and foreign trusts

HC 16

Ordering rule for distributions from non-complying and foreign trusts

Tax treatment of amounts that beneficiaries derive from trusts

HC 17

Amounts derived as beneficiary income

HC 18

Taxable distributions from foreign trusts

HC 19

Taxable distributions from non-complying trusts

HC 20

Distributions from complying trusts

HC 21

Distributions from community trusts

HC 22

Use of tax losses to reduce taxable distributions from non-complying trusts

HC 23

Temporary absences of beneficiaries

Tax treatment of trustee income

HC 24

Trustees’ obligations

HC 25

Foreign-sourced amounts: non-resident trustees

HC 26

Foreign-sourced amounts: resident trustees

Settlors and their liabilities

HC 27

Who is a settlor?

HC 28

Activities treated as those of settlor

HC 29

Settlors’ liability to income tax

Treatment of transition situations

HC 30

Treatment of foreign trusts when settlor becomes resident

Valuation of property, trading stock, and financial arrangements

HC 31

When existing trusts come into tax base

HC 31B

Value transfer by deferral, or non-exercise, of right to demand payment

Rate and payment of income tax

HC 32

Liability of trustee as agent

HC 33

Choosing to satisfy income tax liability of trustee

HC 34

Taxable distributions from non-complying trusts

HC 35

Beneficiary income of minors

HC 36

Trusts and minor beneficiary rule

HC 37

Testamentary trusts and minor beneficiary rule

Subpart HD—Agents

Introductory provisions

HD 1

What this subpart does

HD 2

Joint liability of principal and agent for tax obligations

HD 3

Agents’ duties and liabilities

HD 4

Treatment of principals

HD 5

Matters between principals and agents

HD 6

When relationship effectively that of principal and agent

HD 7

Rate and amount of tax

Particular cases

HD 8

Circumstances giving rise to agency

HD 9

Guardians

HD 10

Mortgagees in possession

Companies issuing debentures

HD 15

Asset stripping of companies

HD 16

Non-resident general insurers

HD 17

Agent paying premiums to residents of Switzerland

HD 17B

Lloyd’s of London: agents for life insurance

Absentees

HD 18

Agency in relation to absentees generally

HD 19

Persons receiving absentees’ income

HD 20

Persons carrying on business for absentees

HD 20B

General partners and partners carrying on with or managing business involving absentees

Trustees of group investment funds

HD 24

Shipping businesses

HD 25

Persons remitting amounts outside New Zealand

Non-residents

HD 26

Agency in relation to non-residents generally

HD 27

Employers

HD 28

Government pensions and payments under superannuation schemes

HD 29

Persons acquiring goods from overseas

HD 30

Members of wholly-owned large multinational group

Subpart HE—Mutual associations

HE 1

Income and deductions of mutual associations

HE 2

Classes of mutual transaction

HE 3

Association rebates

HE 4

Apportionment when transactions with members and non-members

HE 5

Association rebates paid by shares or credit

Subpart HF—Maori authorities

Introductory provisions

HF 1

Maori authorities and the Maori authority rules

HF 2

Who is eligible to be a Maori authority?

HF 3

Applying provisions to Maori authorities

Maori authority distributions

HF 4

What constitutes a Maori authority distribution?

HF 5

Notional distributions of co-operative companies

HF 6

Tax treatment of Maori authority distributions

HF 7

Taxable Maori authority distributions

HF 8

Proportional allocation

Changing status

Table H1Consequences of change in entity status for purposes of Maori authority rules

HF 9

Treatment of companies and trusts that choose to apply this subpart

HF 10

Market value calculations

HF 11

Choosing to become Maori authority

Subpart HG—Joint venturers, partners, and partnerships

Joint venturers

HG 1

Joint venturers

Partners and partnerships

HG 2

Partnerships are transparent

HG 3

General provisions relating to disposals

HG 4

Disposal upon final dissolution

HG 5

Disposal of partner’s interests

HG 6

Disposal of trading stock

HG 7

Disposal of depreciable property

HG 8

Disposal of financial arrangements and certain excepted financial arrangements

HG 9

Disposal of short-term agreements for sale and purchase

HG 10

Disposal of livestock

HG 11

Limitation on deductions by partners in limited partnerships

HG 12

Limitation on deductions by partners in limited partnerships: carry-forward

Subpart HL—Portfolio investment entities [Repealed]

Introductory provisions

HL 1

Intended effect on portfolio tax rate entities and investors [Repealed]

HL 2

Scheme of subpart [Repealed]

Eligibility requirements: portfolio investment entities and foreign investment vehicles

HL 3

Eligibility requirements for entities [Repealed]

HL 4

Effect of failure to meet eligibility requirements for entities [Repealed]

HL 5

Foreign investment vehicles [Repealed]

HL 5B

Meaning of investor and portfolio investor class [Repealed]

HL 5C

Income interest requirement [Repealed]

HL 6

Investor membership requirement [Repealed]

HL 7

Investor return adjustment requirement: portfolio tax rate entity [Repealed]

HL 8

Imputation credit distribution requirement: portfolio listed company [Repealed]

HL 9

Investor interest size requirement [Repealed]

HL 10

Further eligibility requirements relating to investments [Repealed]

Becoming and ceasing to be portfolio investment entity

HL 11

Election to become portfolio investment entity and cancellation of election [Repealed]

HL 12

Unlisted company choosing to become portfolio listed company [Repealed]

HL 13

Becoming portfolio investment entity [Repealed]

HL 14

Tax consequences from transition [Repealed]

HL 15

Ceasing to be portfolio investment entity [Repealed]

Periods relevant to calculation of portfolio entity tax liability

HL 16

Portfolio allocation period and portfolio calculation period [Repealed]

Allocation of income in some cases

HL 17

Treatment of income from interest when entitlement conditional or lacking [Repealed]

HL 18

Certain new investors treated as part of existing portfolio investor class [Repealed]

Calculating portfolio entity tax liability

HL 19

Portfolio class net income and portfolio class net loss for portfolio allocation period [Repealed]

HL 19B

Treatment of certain provisions made by portfolio tax rate entity [Repealed]

HL 20

Portfolio class taxable income and portfolio class taxable loss for portfolio allocation period [Repealed]

HL 21

Portfolio entity tax liability and tax credits of portfolio tax rate entity for period [Repealed]

Payment by portfolio tax rate entity of tax for tax year

HL 22

Payments of tax by portfolio tax rate entity making no election [Repealed]

HL 23

Payments of tax by portfolio tax rate entity choosing to pay provisional tax [Repealed]

HL 24

Payments of tax by portfolio tax rate entity choosing to make payments when investor leaves [Repealed]

HL 25

Optional payments of tax by portfolio tax rate entities [Repealed]

Results for investors

HL 26

Portfolio investor allocated income and portfolio investor allocated loss [Repealed]

HL 27

Treatment of portfolio investor allocated loss for zero-rated portfolio investors and investors with portfolio investor exit period [Repealed]

Tax credits for entity

HL 28

Treatment of portfolio investor allocated loss for other investors [Repealed]

HL 29

Credits received by portfolio tax rate entity or portfolio investor proxy [Repealed]

Treatment of losses for entity

HL 30

Portfolio entity formation loss [Repealed]

HL 31

Portfolio class taxable income and portfolio class taxable loss for tax year [Repealed]

HL 32

Treatment of portfolio class taxable loss and portfolio class land loss for tax year [Repealed]

Portfolio investor proxies

HL 33

Portfolio investor proxies [Repealed]

Subpart HM—Portfolio investment entities

Introductory provisions

HM 1

Outline of subpart and relationship with other Parts

HM 2

What is a portfolio investment entity?

HM 3

Foreign PIE equivalents

HM 4

Who is an investor?

HM 5

What is an investor class?

HM 6

Intended effects for multi-rate PIEs and investors

HM 6B

Optional look-through rules for certain PIEs

Residence in New Zealand

HM 9

Collective schemes

HM 10

Exclusion: life insurance business

Maximum shareholdings in investments

HM 14

Minimum number of investors

HM 15

Maximum investor interests

HM 16

Associates combined

HM 17

Same rights to all investment proceeds

HM 18

Requirements for listed PIEs: unlisted companies

HM 19

Requirements for listed PIEs: fully crediting distributions

HM 19B

Modified rules for foreign investment zero-rate PIEs

HM 19C

Modified rules for foreign investment variable-rate PIEs

HM 20

Re-entering as PIE: 5-year rule

Exceptions

HM 21

Exceptions for certain investors

HM 22

Exceptions for certain funds

HM 23

Exceptions for foreign PIE equivalents

Exit rules

HM 24

Immediate loss of PIE status

HM 25

When entity no longer meets investment or investor requirements

HM 26

Starting life insurance business

HM 27

When multi-rate PIE no longer meets investor interest adjustment requirements

HM 28

When listed PIE no longer meets requirements

HM 29

Choosing to cancel status

HM 30

When foreign PIE equivalent no longer meets requirements

Rules for multi-rate PIEs

Introductory provisions

HM 31

Rules for multi-rate PIEs

HM 32

Rules for and treatment of investors in multi-rate PIEs

HM 33

Proxies for PIE investors

Attributing income to investors

HM 34

Attribution periods

HM 35

Determining net amounts and taxable amounts

HM 35B

Treatment of certain provisions made by multi-rate PIEs

HM 35C

Determining amounts for notified foreign investors

HM 36

Calculating amounts attributed to investors

HM 36B

Calculating PIE schedular income adjustments for natural person investors

HM 37

When income cannot be attributed

HM 38

When superannuation fund investor has conditional entitlement

HM 39

New investors in existing investor classes

HM 40

Deductions for attributed PIE losses for zero-rated and exiting investors equal to amount attributed

Calculating and paying tax liability

HM 41

Options for calculation and payment of tax

HM 42

Exit calculation option

HM 42B

Part-year tax calculations for PIEs under the exit calculation option for the 2010–11 tax year

HM 43

Quarterly calculation option

HM 44

Provisional tax calculation option

HM 44B

NRWT calculation option

Calculation of tax liability or tax credit of multi-rate PIEs

Adjusting investors’ interests

HM 48

Adjustments to investor interests or to distributions

Using tax credits

HM 49

Tax credits: when sections HM 50 to HM 55 apply

HM 50

Attributing credits to investors

HM 51

Use of foreign tax credits by PIEs

HM 52

Use of foreign tax credits by zero-rated and certain exiting investors

HM 53

Use of tax credits other than foreign tax credits by PIEs

HM 54

Use of tax credits other than foreign tax credits by investors

HM 55

Tax credits for losses

Special rules for foreign investment PIEs

HM 55C

Modified source rules

HM 55D

Requirements for investors in foreign investment PIEs

HM 55E

Changes in status of investors in foreign investment PIEs

HM 55F

Treatment of income attributed to notified foreign investors

HM 55FB

Notified foreign investors and tax credits for supplementary dividends

HM 55G

Allowable amounts and thresholds for income with New Zealand source

HM 55H

Treatment when certain requirements for foreign investment PIEs not met

Prescribed and notified rates for investors in multi-rate PIEs

HM 56

Prescribed investor rates: schedular rates

HM 57

Prescribed investor rates for certain investors: 0%

HM 57B

Prescribed investor rates for new residents

HM 58

Transition of rate for certain investors

HM 59

Prescribed investor rates for certain investors: 0% [Repealed]

HM 60

Notified investor rates

HM 60B

Investor rates provided by Commissioner

HM 61

Certain exiting investors zero-rated

Exit levels and periods

HM 62

Exit levels for investors

HM 63

Exit periods

Treatment of losses by PIEs

Losses of certain multi-rate PIEs

HM 64

Use of investor classes’ losses

HM 65

Use of land losses of investor classes

Formation losses

HM 66

Formation losses carried forward to tax year

HM 67

Formation losses carried forward to first quarter

HM 68

When formation losses carried forward are less than 5% of formation investment value

HM 69

When formation losses carried forward are 5% or more of formation investment value: 3-year spread

HM 70

Maximum amount of formation losses allocated by multi-rate PIEs to investor classes

Elections and consequences

HM 71

Choosing to become PIE

HM 71B

Choosing to become foreign investment PIE

HM 72

When elections take effect

HM 73

Transition: provisional tax

HM 74

Transition: entities with non-standard income years

HM 75

Transition: treatment of shares held in certain companies

HM 76

Transition: FDPA companies [Repealed]

Subpart HR—Other entities

Partnerships and joint ventures

HR 1

Partnerships and joint ventures [Repealed]

Funds

HR 2

Group investment funds

HR 3

Definitions for section HR 2: group investment funds

HR 4

Government Superannuation Fund

HR 4B

Activities relating to New Zealand Superannuation Fund and Venture Capital Fund

Airport operators

HR 5

Airport operators: general

HR 6

Airport operator’s assets

HR 7

Meaning of airport operator’s activities

Transitional residents

HR 8

Transitional residents

Debt funding special purpose vehicles

HR 9

Debt funding special purpose vehicles are transparent if election made by originator

HR 9BA

Elections to treat debt funding special purpose vehicles as transparent

HR 9B

Bankruptcy-remote property during application of section HR 9

HR 10

What happens when vehicle stops being transparent debt funding special purpose vehicle?

Non-exempt charities: cessation of tax-exempt status

HR 11

Non-exempt charities: initial tax base

HR 12

Non-exempt charities: treatment of tax-exempt accumulations

Lloyd’s of London: life insurance

HR 13

Lloyd’s of London: life insurance

Subpart HZ—Terminating provisions

HZ 1

Distributions from trusts of pre-1989 tax reserves

HZ 2

Trusts that may become complying trusts

HZ 3

Special partnerships: transition into limited partnerships and limited partnerships deduction rules

HZ 4

Overseas limited partnerships: transition into limited partnerships deduction rules

HZ 4B

Qualifying companies: transition into partnership

HZ 4C

Qualifying companies: transition into look-through companies

HZ 4D

Qualifying companies: transition into sole traderships

HZ 4E

Transition out of LTC regime for Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017

HZ 5

Transitional provisions for PIE rules

HZ 6

Saving of binding rules relating to portfolio investment entities

HZ 7

Saving of binding rulings relating to settlements on trusts

HZ 8

Retrospective transitional provision for market valuation under section HB 4

HZ 9

Elections to treat existing debt funding special purpose vehicles as transparent

HZ 10

What happens when election is made under section HZ 9?

HZ 11

Protection from non-compliance: Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020

Part I Treatment of tax losses

Subpart IA—General rules for tax losses

IA 1

What this subpart does

IA 2

Tax losses

IA 3

Using tax losses in tax year

IA 3B

Tax losses and procedures under Insolvency Act 2006

IA 4

Using loss balances carried forward to tax year

IA 5

Restrictions on companies’ loss balances carried forward: continuity of ownership

IA 6

Restrictions on companies grouping tax losses

IA 7

Restrictions relating to ring-fenced tax losses

IA 8

Restrictions relating to schedular income

Subpart IB—Carrying forward companies’ loss balances: continuity of business activities

IB 1

Purpose

IB 2

Meaning of ownership continuity breach

IB 2B

When subsequent ownership continuity breach regarded as occurring

IB 3

When tax loss components of companies carried forward despite ownership continuity breach

IB 4

Business continuity period

IB 5

When group companies treated as single company

Subpart IC—Grouping tax losses

Introductory provisions

IC 1

Company A making tax loss available to company B

IC 2

Threshold levels for grouping tax losses in tax year

IC 3

Common ownership: group of companies

IC 4

Common ownership: wholly-owned groups of companies

Requirements and methods

IC 5

Company B using company A’s tax loss

IC 6

Common ownership for period

IC 7

Place of incorporation or carrying on business

IC 8

Limitations on amounts used

IC 9

Date for payment and notice to Commissioner

IC 10

When companies have different balance dates

IC 11

Reduction of amounts used by companies

IC 12

Bad debts or decline in value of shares

IC 13

Variation of requirements for development companies in Niue

Subpart ID—Use of tax losses by consolidated groups

ID 1

Treatment of tax losses by consolidated groups

ID 2

Pre-consolidation losses: general treatment

ID 3

Pre-consolidation losses: use by group companies

ID 4

Pre-consolidation losses on entry: part-year rule

ID 5

Pre-consolidation losses on exit: part-year rule

Subpart IE—Treatment of tax losses on amalgamation of companies

IE 1

When this subpart applies

IE 2

Treatment of tax losses by amalgamating company

IE 3

Treatment of tax losses by amalgamated company

IE 4

Group companies’ treatment of tax losses on amalgamation

IE 5

Applying the continuity provisions when companies amalgamate

Subpart IP—Meeting requirements for part-years

Introductory provisions

IP 1

When this subpart applies

IP 2

Group companies’ common span

Tax loss components carried forward

IP 3

Ownership continuity breach: tax loss components of companies carried forward

IP 3B

Business continuity breach: tax loss components of companies carried forward

Grouping part-year tax losses

IP 4

Breach in income year in which tax loss component arises

IP 5

Breach in tax year in which loss balance is grouped

Statements and notices

IP 6

Financial statements required

IP 7

Notices required

Subpart IQ—Attributed controlled foreign company net losses and foreign investment fund net losses

IQ 1A

When this subpart applies

IQ 1

General treatment

IQ 1B

Losses carried forward to tax year

IQ 2

Ring-fencing cap on attributed CFC net losses

IQ 2B

Effect of attributed CFC net loss and FIF net loss from before first affected year

IQ 2C

Effect of FIF net loss if attributed FIF income method not available

IQ 3

Ring-fencing cap on FIF net losses

IQ 4

Group companies using attributed CFC net losses

IQ 5

Group companies using FIF net losses [Repealed]

IQ 6

Pre-consolidation losses: general treatment

IQ 7

When group membership lacking in loss period

IQ 8

When group membership lacking in tax year of use

IQ 9

When attributed CFC net loss becomes FIF net loss

Subpart IS—Mineral miners’ and petroleum miners’ tax losses

IS 1

General treatment of mineral miners’ net losses

IS 2

Treatment of net losses resulting from certain expenditure

IS 3

Holding companies’ tax losses [Repealed]

IS 4

Adjustments in certain circumstances [Repealed]

IS 5

Petroleum miners’ tax losses [Repealed]

IS 6

When company stops being mineral miner

Subpart IT—Cancellation of life insurer’s losses

IT 1

Cancellation of life insurer’s policyholder net losses

IT 2

Cancellation of life insurer’s tax loss when allowed into policyholder base

Subpart IV—Treatment of certain supplementary dividends [Repealed]

IV 1

Supplementary dividend holding companies [Repealed]

Subpart IW—Use of tax losses to pay shortfall penalties

IW 1

Shortfall penalties

Subpart IZ—Terminating provisions

IZ 1

Use of specified activity net losses [Repealed]

IZ 2

Petroleum mining companies: treatment of payments from shareholders [Repealed]

IZ 3

Petroleum mining companies: use of loss balances [Repealed]

IZ 4

Tax losses for tax years before 1977–78 tax year

IZ 5

Companies’ tax losses for tax years before 1991–92 tax year

IZ 6

Companies’ tax losses for 1990–91 and 1991–92 tax years

IZ 7

Grouping tax losses for tax years before 1981–82 and between 1981–82 and 1991–92

IZ 7B

Grouping tax losses for commonality periods starting before 15 March 2017 for tax years after 1990–91

IZ 8

Election to use net loss for 2019–20 or 2020–21 year as tax loss in preceding year

Part L Tax credits and other credits

Subpart LA—General rules for tax credits

LA 1

What this Part does

LA 2

Satisfaction of income tax liability

LA 3

When total tax credit less than or equal to income tax liability

LA 4

When total tax credit more than income tax liability

LA 5

Treatment of remaining credits

LA 6

Remaining refundable credits: PAYE, RWT, and certain other items

LA 7

Remaining refundable credits: tax credits for social policy and other initiatives

LA 8

Remaining refundable credits: non-resident withholding tax

LA 8B

General rules particular to life insurers

LA 9

Use of tax credits

LA 10

Meaning of tax credit

Subpart LB—Tax credits for payments, deductions, and family payments

LB 1

Tax credits for PAYE income payments

LB 1B

Treatment of tax credits of certain companies with shareholders who are employees

LB 2

Tax credits for provisional tax payments

LB 3

Tax credits for resident withholding tax

LB 4

Tax credits for families

LB 4B

Tax credit for R&D tax losses

LB 5

Tax credits for non-resident withholding tax

Subpart LC—Tax credits for natural persons

Tax credits for persons on low incomes

LC 1

When net income under low income amount [Repealed]

LC 2

When net income in low income abatement range [Repealed]

Tax credits for children

LC 3

Child’s income [Repealed]

Tax credits for transitional circumstances

LC 4

Tax credits for transitional circumstances [Repealed]

LC 5

Meaning of engaged in full-time work [Repealed]

Tax credits for housekeeping

LC 6

Tax credits for housekeeping [Repealed]

LC 7

Meaning of housekeeper [Repealed]

LC 8

Some definitions [Repealed]

Tax credits for absentees

LC 9

Tax credits for absentees [Repealed]

Adjustments to certain tax credits

LC 10

Adjustment for change in return date [Repealed]

LC 11

Adjustment when person is non-resident for part of tax year [Repealed]

LC 12

Assessment when person is non-resident [Repealed]

Tax credits for independent earners

LC 13

Tax credits for independent earners

Subpart LD—Tax credits for gifts and donations

Charitable and other public benefit gifts

LD 1

Tax credits for charitable or other public benefit gifts

LD 2

Exclusions

LD 3

Meaning of charitable or other public benefit gift

Payroll donations

LD 4

Tax credits for payroll donations

LD 5

Calculating amount of tax credit and filing particulars

LD 6

When donation is paid to ineligible recipient

LD 7

When donation returned to person

LD 8

Meaning and ranking of payroll donation

Subpart LE—Tax credits for imputation credits

LE 1

Tax credits for imputation credits

LE 2

Use of remaining credits by companies and trustees

LE 2B

Use of remaining credits by life insurer on policyholder base

LE 3

Use of remaining credits by others

LE 4

Trustees for minor beneficiaries

LE 5

Beneficiaries of trusts

LE 6

Partners in partnerships

LE 7

Credit transfer notices

LE 7B

Credit of RSCT for imputation credit

LE 8

Application of imputation ratio

LE 8B

Dividends from certain FIF interests

LE 9

Application of combined imputation and FDP ratio [Repealed]

LE 10

When income tax unpaid

LE 11

Evidential requirements

Subpart LF—Tax credits for foreign dividend payment (FDP) credits [Repealed]

LF 1

Tax credits for FDP credits [Repealed]

LF 2

Trustees for minor beneficiaries [Repealed]

LF 3

Beneficiaries of trusts [Repealed]

LF 4

Partners in partnerships [Repealed]

LF 5

Credit transfer notices [Repealed]

LF 6

Application of FDP ratio [Repealed]

LF 7

Application of combined imputation and FDP ratio [Repealed]

LF 8

Credits for persons who are non-resident or who receive exempt income [Repealed]

LF 9

When income tax unpaid [Repealed]

LF 10

Evidential requirements [Repealed]

Subpart LH—Tax credits for expenditure on research and development [Repealed]

LH 1

Who this subpart applies to [Repealed]

LH 2

Tax credits relating to expenditure on research and development [Repealed]

LH 3

Requirements [Repealed]

LH 4

Calculation of amount of credit [Repealed]

LH 5

Adjustments to eligible expenditure [Repealed]

LH 6

Research and development activities outside New Zealand [Repealed]

LH 7

Research and development activities and related terms [Repealed]

LH 8

Orders in Council [Repealed]

LH 9

Internal software development: general [Repealed]

LH 10

Internal software development: no associated internal software developer [Repealed]

LH 11

Internal software development: associated internal software developer with same income year [Repealed]

LH 12

Internal software development: associated internal software developer with different income year [Repealed]

LH 13

Internal software development: limit [Repealed]

LH 14

Treatment of depreciation loss for certain depreciable property [Repealed]

LH 14B

Recovery of overpaid tax credit [Repealed]

LH 15

Listed research providers [Repealed]

LH 16

Industry research co-operatives [Repealed]

LH 17

Some definitions [Repealed]

Subpart LJ—Tax credits for foreign income tax

LJ 1

What this subpart does

LJ 2

Tax credits for foreign income tax

LJ 3

Meaning of foreign income tax

LJ 4

Meaning of segment of foreign-sourced income

LJ 5

Calculation of New Zealand tax

LJ 6

Taxable distributions and NRWT rules

LJ 7

Repaid foreign tax: effect on income tax liability

LJ 8

Repaid foreign tax: effect on FDP liability [Repealed]

Subpart LK—Tax credits relating to attributed controlled foreign company income

Amounts of credits

LK 1

Tax credits relating to attributed CFC income

LK 2

Calculation of amount of credit

LK 3

Currency conversion

Use of credits in later tax years

LK 4

Use of remaining credits

LK 5

Companies’ credits carried forward

LK 5B

Credits from tax year before first affected year

LK 6

Use of credits by group companies

Treatment of taxable distributions

LK 7

Taxable distributions and NRWT rules

Consolidated companies

LK 8

Tax credits of consolidated companies

LK 9

Use of company’s credits carried forward

LK 10

When group membership lacking in tax year in which credit arises

LK 11

When group membership lacking in tax year in which credit used

Amalgamations of companies

LK 12

Treatment of credits when companies amalgamate

LK 13

Use of credits by amalgamated company

LK 14

Use by amalgamated company of credits carried forward

LK 15

Use of amalgamating company’s credits

Subpart LL—Underlying foreign tax credits (UFTC) [Repealed]

LL 1

What this subpart does [Repealed]

LL 2

Tax credits for underlying foreign tax [Repealed]

LL 3

Meaning of grey list dividend [Repealed]

LL 4

Tracking accounts [Repealed]

LL 5

Meaning of foreign dividend company net earnings [Repealed]

LL 6

Foreign dividend company lower tier UFTCs [Repealed]

LL 7

Conduit financing arrangements [Repealed]

LL 8

Currency conversion [Repealed]

LL 9

Some definitions [Repealed]

Subpart LO—Tax credits for Maori authority credits

LO 1

Tax credits for Maori authority credits

LO 2

Beneficiaries of trusts

LO 2B

Credit of RSCT for Maori authority credit

LO 3

Application of Maori authority distribution ratio

LO 4

When income tax unpaid

LO 5

Evidential requirements

Subpart LP—Tax credits for supplementary dividends

Introductory provision

LP 1

What this subpart does

Use of credits

LP 2

Tax credits for supplementary dividends

LP 3

Use of remaining credits

LP 4

Continuity rules for carrying credits forward

LP 5

Application of benchmark dividend rules and imputation credit ratio

LP 6

Deriving supplementary dividend and breach of terms of trust

Supplementary dividend holding companies

LP 7

Requirements for supplementary dividend holding companies [Repealed]

LP 8

Relationship with exempt income rules [Repealed]

LP 9

Relationship with RWT rules [Repealed]

LP 10

Limitation on deductions [Repealed]

Subpart LQ—Tax credits of conduit tax relief companies [Repealed]

LQ 1

Tax credits of CTR companies [Repealed]

LQ 2

Limitation on amount of credit [Repealed]

LQ 3

Determining percentage of non-resident shareholders [Repealed]

LQ 4

Date for determining percentage of non-resident shareholders [Repealed]

LQ 5

CTR additional dividends [Repealed]

Subpart LR—Tax credits for policyholder income [Repealed]

LR 1

Tax credits for policyholder income [Repealed]

Subpart LS—Tax credits for multi-rate PIEs and investors

LS 1

Tax credits for multi-rate PIEs

LS 2

Tax credits for investors in multi-rate PIEs

LS 3

Tax credits for zero-rated investors

LS 4

Tax credits for certain exiting investors

Subpart LT—Tax credits for petroleum miners

LT 1

Tax credits for petroleum miners

LT 2

Petroleum mining operations outside New Zealand

Subpart LU—Tax credits for mineral miners

LU 1

Tax credits for mineral miners

Subpart LY—Research and development tax credits

LY 1

Research and development tax credits

LY 2

Key terms

LY 3

When this subpart applies

LY 4

Calculation of tax credit

LY 5

Eligible research and development expenditure

LY 6

Contracted research and development expenditure

LY 7

Foreign research and development expenditure

LY 8

Carry forward for remaining research and development tax credits

Subpart LZ—Terminating provisions

Underlying foreign tax credits

LZ 1

Low tax jurisdiction companies [Repealed]

Credits for certain non-resident investment companies

LZ 2

Certain development projects [Repealed]

LZ 3

Interest derived from development investments [Repealed]

LZ 4

Dividends derived from development investments [Repealed]

LZ 5

Some definitions [Repealed]

Credits for interest on home vendor mortgages

LZ 6

Interest on home vendor mortgages

LZ 7

Maximum amount of credit under section LZ 6

LZ 8

Meaning of home vendor mortgage

Credits for savings in special home ownership accounts

LZ 9

Savings in special home ownership accounts [Repealed]

LZ 10

Maximum amount for 1 special home ownership account for 1 tax year [Repealed]

LZ 11

Maximum amount for all special home ownership accounts for all tax years [Repealed]

LZ 12

Meaning of increase in savings [Repealed]

Research and development tax credits

LZ 13

Part-year override of section LY 3(2)(b)

LZ 14

Research and development tax credits’ refundability: option for 2019–20 income year

Part M Tax credits paid in cash

Subpart MA—General provisions

MA 1

What this Part does

MA 2

Relationship with core provisions

MA 3

Excluded income

MA 4

Calculation of amounts of credit producing negative amounts

MA 5

Advice from outside agencies

MA 6

Avoidance arrangements

MA 7

Meaning of full-time earner and earner for family scheme

MA 8

Some definitions for family scheme

Subpart MB—Adjustment of net income for family scheme

MB 1

Adjustments for calculation of family scheme income

MB 2

Adjustment for period that is less or more than 1 year

MB 3

When person carries on 1 or more businesses or investment activities

MB 4

Family scheme income of major shareholders in close companies

MB 5

Treatment of distributions from superannuation schemes

MB 6

Treatment of distributions from retirement savings schemes

MB 7

Family scheme income of settlor of trust

MB 7B

Family scheme income from employment benefits: employees not controlling shareholders

MB 8

Family scheme income from fringe benefits: controlling shareholders

MB 9

Family scheme income from deposits in main income equalisation accounts [Repealed]

MB 10

Family scheme income from certain pensions and annuities

MB 11

Family scheme income from amounts derived by dependent children

MB 12

Family scheme income from non-residents’ foreign-sourced income

MB 12B

Family scheme income from trusts, not being beneficiary income, and where recipient not settlor

MB 13

Family scheme income from other payments

MB 14

Remission income of discharged bankrupt excluded

Subpart MC—Entitlements under family scheme

MC 1

What this subpart does

MC 2

Who qualifies for entitlements under family scheme?

MC 3

First requirement: person’s age

MC 4

Second requirement: principal care

MC 5

Third requirement: residence or entitlement to emergency benefit

MC 6

When person does not qualify

MC 7

When spouse or partner entitled under family scheme

MC 8

Continuing requirements

MC 9

Credits for person aged 18

MC 10

Principal caregiver

MC 11

Relationship periods and entitlement periods

Subpart MD—Abating WFF tax credits

Calculating amount of credit

MD 1

Abating WFF tax credit

MD 2

Calculating net contributions to credits

Family tax credit

MD 3

Calculation of family tax credit

In-work tax credit

MD 4

Entitlement to in-work tax credit

MD 5

First requirement: person’s age

MD 6

Second requirement: principal care

MD 7

Third requirement: residence

MD 8

Fourth requirement: person not receiving benefit

MD 9

Fifth requirement: earner

MD 10

Calculation of in-work tax credit

Parental tax credit

MD 11

Entitlement to parental tax credit

MD 12

Calculation of parental tax credit

MD 12B

Additional parental tax credit amount included in lump sum if 70-day period crosses 2 tax years

Credit abatement

MD 13

Calculation of family credit abatement

MD 14

Person receiving protected family tax credit

MD 15

Family scheme income for purposes of section MD 14

MD 16

Additional parental tax credit abatement amount for lump sum if 70-day period crosses 2 tax years

Subpart ME—Minimum family tax credit

ME 1

Minimum family tax credit

ME 2

Meaning of employment for this subpart

ME 3

Meaning of net family scheme income

Subpart MF—Payment of credits

MF 1

Application for payment of tax credit by instalment

MF 2

When person not entitled to payment by instalment

MF 3

Calculating amount of interim WFF tax credit

MF 4

Requirements for calculating instalment of tax credit

MF 4B

Calculation of instalments: 1 April 2008 to 30 September 2008 [Repealed]

MF 4C

Calculation of instalments: 1 October 2008 to 31 March 2009 [Repealed]

MF 4D

Calculation of instalments: 1 April 2010 to 30 September 2010 [Repealed]

MF 4E

Calculation of instalments: 1 October 2010 to 31 March 2011 [Repealed]

MF 4F

Calculation of instalments: 1 April 2018 to 30 June 2018 [Repealed]

MF 4G

Calculation of instalments: 1 July 2018 to 31 March 2019 [Repealed]

MF 4H

Calculation of instalments: 1 April 2021 to 30 June 2021

MF 4I

Calculation of instalments: 1 July 2021 to 31 March 2022

MF 5

Recovery of overpaid tax credit

MF 6

Overpayment or underpayment of tax credit

MF 7

Orders in Council

Subpart MG—Best Start tax credit

MG 1

Best Start tax credit entitlement

MG 2

Best Start tax credit

MG 3

Best Start credit abatement

MG 4

Person receiving protected Best Start tax credit

Subpart MK—Tax credits for KiwiSaver schemes and complying superannuation funds

MK 1

Tax credits for superannuation contributions

Tax credits for fund providers

MK 2

Eligibility requirements

MK 3

Payment of tax credits

MK 4

Amount of tax credit

MK 5

Crown contributions for members

MK 6

Credit given by fund providers

MK 7

Amounts paid in excess

MK 8

Treatment of tax credits on permanent emigration

Tax credits for employers

MK 9

Eligibility requirements [Repealed]

MK 10

Amount of credit [Repealed]

MK 11

When tax credits arise [Repealed]

MK 12

Using tax credits [Repealed]

MK 13

When short payment and unpaid compulsory employer contributions found after tax credit used [Repealed]

MK 14

Employees opting out [Repealed]

MK 15

Groups of persons

MK 16

Private domestic workers

Subpart ML—Tax credits for redundancy payments [Repealed]

ML 1

What this subpart does [Repealed]

ML 2

Tax credit for redundancy payments [Repealed]

ML 3

Payment by Commissioner [Repealed]

Subpart MX—Tax credits for R&D tax losses

MX 1

When subpart applies

MX 2

Corporate eligibility criteria

MX 3

Wage intensity criteria

MX 4

R&D loss tax credits

MX 5

Cancellation of R&D tax losses

MX 6

Deduction if increase in basic tax rate for company

MX 7

Reinstatement of R&D tax losses and R&D repayment tax

Subpart MZ—Terminating provisions

MZ 1

Entitlement to child tax credit

MZ 2

Calculation of child tax credit

MZ 3

Exclusions from determination of family scheme income

Part O Memorandum accounts

Subpart OA—General provisions

Introductory provisions

General rules for maintaining memorandum accounts

OA 4

Certain credits and debits arising only in group accounts

Opening balances of memorandum accounts

Shareholder continuity requirements

OA 8

Shareholder continuity requirements for memorandum accounts

Treatment of credits and debits on resident’s restricted amalgamation

General provision

OA 9

General treatment of credits and debits on resident’s restricted amalgamation

When companies amalgamate

OA 10

When credits or debits due to amalgamating company but not recorded

OA 11

FDP account on resident’s restricted amalgamation [Repealed]

OA 12

CTR account on resident’s restricted amalgamation [Repealed]

OA 13

Policyholder credit account on resident’s restricted amalgamation [Repealed]

Amalgamation of companies in consolidated groups

OA 14

Continuity of shareholding when group companies amalgamate

OA 15

When credits or debits due to consolidated group but not recorded

OA 16

When FDP account ends on resident’s restricted amalgamation [Repealed]

OA 17

When policyholder credit account ends on resident’s restricted amalgamation [Repealed]

Maximum permitted ratios

OA 18

Calculation of maximum permitted ratios

Subpart OB—Imputation credit accounts (ICA)

Introductory provisions

OB 1

General rules for companies with imputation credit accounts

OB 2

Australian companies with imputation credit accounts

OB 3

Imputation credit accounts

OB 3B

General rule for life insurer’s policyholder base

Imputation credits

OB 4

ICA payment of tax or transfer to account

OB 5

ICA deposit in tax pooling account

OB 6

ICA transfer from tax pooling account

OB 7

ICA payment of further income tax

OB 7B

ICA payment of qualifying company election tax

OB 7C

ICA expenditure on research and development [Repealed]

OB 8

ICA resident withholding tax withheld

OB 9

ICA dividend derived with imputation credit

OB 9B

ICA attributed PIE income with imputation credit

OB 9C

ICA credit for research and development tax credit

OB 10

ICA dividend derived with FDP credit [Repealed]

OB 11

ICA payment of FDP [Repealed]

OB 12

ICA transfer from FDP account [Repealed]

OB 13

ICA transfer of debit balance on leaving wholly-owned group

OB 14

ICA payment of tax on leaving wholly-owned group

OB 15

ICA payment of tax on joining wholly-owned group

OB 16

ICA attribution for personal services

OB 17

ICA transfer from policyholder credit account [Repealed]

OB 18

ICA transfer from ASC account

OB 19

ICA transfer to master fund

OB 19B

ICA transfer to loss-using group company

OB 20

ICA distribution with Maori authority credit

OB 21

ICA balance of Maori authority credit account

OB 22

ICA replacement payment to company under share-lending arrangement

OB 23

ICA credit transfer to company

OB 23B

ICA transfer from consolidated imputation group to departing member for unused tax payment

OB 24

ICA credit on resident’s restricted amalgamation

OB 25

ICA reversal of tax advantage arrangement

OB 26

ICA elimination of double debit

OB 27

ICA non-resident withholding tax withheld

OB 28

ICA payment of amount of tax for schedular payment

OB 29

ICA payment of schedular income tax

Imputation debits

OB 30

ICA payment of dividend

OB 31

ICA allocation of provisional tax

OB 32

ICA refund of tax or transfer from account

OB 33

ICA amount applied to pay other taxes

OB 34

ICA refund from tax pooling account

OB 35

ICA transfer within tax pooling account

OB 35B

ICA debit for transfer from tax pooling account for policyholder base liability

OB 36

ICA refund of FDP [Repealed]

OB 37

ICA refund of tax credit

OB 38

ICA overpayment of FDP [Repealed]

OB 39

ICA transfer for net foreign attributed income [Repealed]

OB 40

ICA attribution for personal services

OB 41

ICA debit for loss of shareholder continuity

OB 42

ICA on-market cancellation

OB 43

ICA breach of imputation ratio

OB 44

ICA debit on leaving wholly-owned group

OB 45

ICA redemption debit

OB 46

ICA transfer from member fund

OB 46B

ICA transfer from group company to loss-using group company

OB 47

Debit for policyholder base imputation credits

OB 47B

Tax paid by recipients of R&D loss tax credits

OB 48

ICA credit balance when Maori authority credit account starts

OB 49

ICA replacement payment by company under share-lending arrangement

OB 50

ICA returning share transfer

OB 51

ICA credit transfer by company

OB 52

ICA transfer to consolidated imputation group

OB 53

ICA debit on resident’s restricted amalgamation

OB 54

ICA tax advantage arrangement

OB 55

ICA retrospective imputation credit

ICA refund of amount of tax for schedular payment

OB 59

ICA refund of schedular income tax

Imputation credits attached to dividends

OB 60

Imputation credits attached to dividends

OB 61

ICA benchmark dividend rules

OB 62

Retrospective attachment of imputation credits

Further income tax for ICA closing debit balance

OB 66

Further income tax when company stops being ICA company

OB 67

Reduction of further income tax

OB 68

Income tax paid satisfying liability for further income tax

OB 69

Further income tax paid satisfying liability for income tax

OB 70

Application of other provisions

Imputation additional tax

OB 71

Imputation additional tax on leaving group of companies

OB 72

Imputation additional tax on joining wholly-owned group

OB 72B

Limit on using entitlement to refund after joining wholly-owned group

Distributions of statutory producer boards and co-operative companies

OB 73

Statutory producer boards attaching imputation credits to cash distributions

OB 74

Statutory producer boards attaching imputation credits to notional distributions

OB 75

Statutory producer boards’ notional distributions that are dividends

OB 76

Statutory producer boards attaching FDP credits [Repealed]

OB 77

When and how statutory producer board makes election

OB 78

Co-operative companies attaching imputation credits to cash distributions

OB 78B

Co-operative companies attaching imputation credits to cash distributions to groups

OB 79

Co-operative companies attaching imputation credits to notional distributions

OB 80

Co-operative companies’ notional distributions that are dividends

OB 81

Co-operative companies attaching FDP credits [Repealed]

OB 82

When and how co-operative company makes election

Election by group company for transfer of imputation credits with transfer of tax loss

OB 83

Group companies transferring imputation credits with transfer of tax loss

OB 84

When and how group company transferring tax loss makes election

Tables of credits and debits in memorandum accounts

Table O1: imputation credits

Table O2: imputation debits

Subpart OC—Foreign dividend payment accounts (FDPA) [Repealed]

Introductory provisions

OC 1

General rules for companies with FDP accounts [Repealed]

OC 2

FDP accounts [Repealed]

OC 2B

General rule for life insurer’s policyholder base [Repealed]

OC 3

Choosing to become FDPA company [Repealed]

OC 4

When company chooses to stop being FDPA company [Repealed]

OC 5

When company emigrates [Repealed]

FDP credits

OC 6

FDPA payment of FDP [Repealed]

OC 7

FDPA dividend derived with FDP credit [Repealed]

OC 8

FDPA payment of FDP for transfer from CTR account [Repealed]

OC 9

FDPA transfer for net foreign attributed income [Repealed]

OC 10

FDPA payment of FDP for conduit debit balance [Repealed]

OC 11

FDPA credit transfer to company [Repealed]

OC 12

FDPA reversal of tax advantage arrangement [Repealed]

FDP debits

OC 13

FDPA payment of dividend [Repealed]

OC 14

FDPA refund of FDP [Repealed]

OC 15

FDPA overpayment of FDP [Repealed]

OC 16

FDPA refund of tax credit [Repealed]

OC 17

FDPA credit transfer by company [Repealed]

OC 18

FDPA transfer to imputation credit account [Repealed]

OC 19

FDPA transfer to CTR account [Repealed]

OC 20

Debit for policyholder base FDP credits [Repealed]

OC 21

FDPA transfer to group account [Repealed]

OC 22

FDPA breach of FDP ratio [Repealed]

OC 23

FDPA breach of FDP ratio by PCA company [Repealed]

OC 24

FDPA debit for loss of shareholder continuity [Repealed]

OC 25

FDPA tax advantage arrangement [Repealed]

OC 26

FDPA final balance [Repealed]

FDP credits attached to dividends

OC 27

FDP credits attached to dividends [Repealed]

OC 28

FDPA benchmark dividend rules [Repealed]

OC 29

FDP credits and imputation credits attached to dividends [Repealed]

Further income tax

OC 30

Payment of further income tax for closing debit balance [Repealed]

OC 31

Payment of further income tax when company no longer New Zealand resident [Repealed]

OC 32

Reduction of further income tax [Repealed]

OC 33

Income tax paid satisfying liability for further income tax [Repealed]

OC 34

Further income tax paid satisfying liability for income tax [Repealed]

Some definitions

OC 35

Meaning of FDP reference period [Repealed]

OC 36

Meaning of maximum deficit debit [Repealed]

OC 37

Meaning of policyholder FDP ratio [Repealed]

OC 38

Meaning of reduced deficit debit [Repealed]

OC 39

Meaning of shareholder FDP ratio [Repealed]

Table O3: FDP credits

Table O4: FDP debits

Subpart OD—Conduit tax relief accounts (CTRA) [Repealed]

Introductory provisions

OD 1

General rules for companies with CTR accounts [Repealed]

OD 2

CTR accounts [Repealed]

OD 3

Choosing to become CTR company [Repealed]

OD 4

When company stops being CTR company [Repealed]

CTR credits

OD 5

CTRA tax credit for conduit tax relief [Repealed]

OD 6

CTRA transfer from FDP account [Repealed]

OD 7

CTRA dividend derived with CTR credit [Repealed]

OD 8

CTRA reduction of FDP [Repealed]

OD 9

CTRA reversal of tax advantage arrangement [Repealed]

CTR debits

OD 10

CTRA payment of dividend [Repealed]

OD 11

CTRA transfer to FDP account [Repealed]

OD 12

CTRA transfer to group account [Repealed]

OD 13

CTRA adjustment for conduit tax relief [Repealed]

OD 14

CTRA break in shareholding chain for group company [Repealed]

OD 15

CTRA break in shareholding chain for company [Repealed]

OD 16

CTRA increase in resident shareholding [Repealed]

OD 17

CTRA breach of CTR ratio [Repealed]

OD 18

CTRA tax advantage arrangement [Repealed]

OD 19

CTRA final balance [Repealed]

CTR credits attached to dividends

OD 20

CTR credits attached to dividends [Repealed]

OD 21

CTRA benchmark dividend rules [Repealed]

OD 22

CTR credits and imputation credits attached to dividends [Repealed]

Payment of FDP and refunds

OD 23

FDP payable for CTR debits [Repealed]

OD 24

FDP payable on resident’s restricted amalgamation [Repealed]

OD 25

Refunds on transfers to CTR account [Repealed]

Table O5: conduit tax relief credits

Table O6: conduit tax relief debits

Subpart OE—Branch equivalent tax accounts (BETA)

Introductory provision

OE 1

General rules for persons with branch equivalent tax accounts

Companies with branch equivalent tax accounts

Introductory provisions

OE 2

Branch equivalent tax accounts of companies [Repealed]

OE 3

Choosing to become BETA company [Repealed]

OE 4

When company stops being BETA company [Repealed]

OE 5

Treatment of attributed CFC income and FIF income in this subpart

Branch equivalent tax credits

OE 6

BETA payment of income tax on foreign income [Repealed]

OE 7

BETA payment of income tax [Repealed]

OE 8

BETA unused amount of debit balance [Repealed]

OE 9

BETA refund of FDP [Repealed]

OE 10

BETA credit for loss of shareholder continuity [Repealed]

OE 11

BETA final balance [Repealed]

Treatment of debits from conduit relief

OE 11B

Company with debit balance, including debits from conduit relief, in some income years [Repealed]

Branch equivalent tax debits

OE 12

BETA payment of FDP [Repealed]

OE 13

BETA reduction in FDP [Repealed]

OE 14

BETA refund of income tax [Repealed]

OE 15

BETA debit for loss of shareholder continuity [Repealed]

OE 16

BETA final balance [Repealed]

Debit if credit balance at beginning of first affected income year

OE 16B

Company with credit balance at beginning of first affected income year [Repealed]

Persons with branch equivalent tax accounts

Introductory provisions

OE 17

Person choosing to become BETA person

OE 18

When person stops being BETA person

Branch equivalent tax credits

OE 19

BETA person’s payment of income tax on foreign income

Branch equivalent tax debits

OE 20

BETA person’s payment of income tax

OE 21

BETA person’s refund of income tax

OE 22

BETA person’s final balance

Table O7: branch equivalent tax credits

Table O8: branch equivalent tax debits

Table O9: person's branch equivalent tax credits

Table O10: person's branch equivalent tax debits

Subpart OF—Available subscribed capital accounts (ASCA)

Introductory provisions

OF 1

General rules for companies with ASC accounts

OF 2

ASC accounts

OF 3

Choosing to become ASC account company

ASC credits

OF 4

ASCA redemption credit

ASC debits

OF 5

ASCA transfer to imputation credit account

Table O11: ASC credits

Table O12: ASC debits

Subpart OJ—Policyholder credit accounts (PCA) [Repealed]

Introductory provision

OJ 1

General rules for companies and other persons with policyholder credit accounts [Repealed]

Companies with policyholder credit accounts

Introductory provision

OJ 2

Policyholder credit accounts of companies [Repealed]

Policyholder credits of PCA company

OJ 3

PCA transfer from imputation credit account [Repealed]

OJ 4

PCA transfer from FDP account [Repealed]

OJ 5

PCA transfer of life insurance business [Repealed]

OJ 6

PCA credit for maximum deficit in FDP account [Repealed]

OJ 7

PCA credit for reduced deficit in FDP account [Repealed]

Policyholder debits of PCA company

OJ 8

PCA payment of tax relating to policyholder base [Repealed]

OJ 9

PCA transfer to imputation credit account [Repealed]

OJ 10

PCA transfer to group account [Repealed]

OJ 11

PCA company’s transfer of life insurance business [Repealed]

Persons with policyholder credit accounts

Introductory provisions

OJ 12

Choosing to become PCA person [Repealed]

OJ 13

Choosing to stop being PCA person [Repealed]

Policyholder credits of PCA person

OJ 14

PCA person’s equivalent credit [Repealed]

OJ 15

PCA person’s credit for transfer of life insurance business [Repealed]

Policyholder debits of PCA person

OJ 16

PCA person’s payment of tax relating to policyholder base [Repealed]

OJ 17

PCA person’s equivalent debit [Repealed]

OJ 18

PCA person’s debit for transfer of life insurance business [Repealed]

Table O13: policyholder credits

Table O14: policyholder debits

Table O15: person's policyholder credits

Table O16: person's policyholder debits

Subpart OK—Maori authority credit accounts (MACA)

Introductory provision

OK 1

General rules for Maori authorities with Maori authority credit accounts

Maori authority credits

OK 2

MACA payment of tax or transfer to account

OK 3

MACA transfer of excess tax from other Maori authorities

OK 4

MACA payment of further income tax

OK 4B

MACA expenditure on research and development [Repealed]

OK 5

MACA distribution with Maori authority credit

OK 6

MACA dividend derived with imputation credit

OK 6B

MACA attributed PIE income with imputation credit

OK 6C

MACA research and development tax credit

OK 7

MACA dividend derived with FDP credit [Repealed]

OK 8

MACA resident withholding tax withheld

OK 9

MACA reversal of tax advantage arrangement

Maori authority debits

OK 10

MACA distribution

OK 11

MACA transfer of excess tax to other Maori authorities

OK 12

MACA refund of income tax or transfer of excess tax to period or tax type

OK 13

MACA payment of other taxes

OK 14

MACA refund of FDP [Repealed]

OK 14B

MACA refund of tax credit

OK 15

MACA debit for loss of shareholder continuity

OK 16

MACA breach of Maori authority credit ratio

OK 17

MACA tax advantage arrangement

OK 18

MACA final balance

Maori authority credits attached to distributions

OK 19

Maori authority credits attached to distributions

OK 20

MACA benchmark distribution rules

Further income tax

OK 21

Further income tax for closing debit balance

OK 22

Further income tax paid when Maori authority no longer Maori authority

OK 23

Further income tax paid satisfying liability for income tax

OK 24

Income tax paid satisfying liability for further income tax

Table O17: Maori authority credits

Table O18: Maori authority debits

Subpart OP—Memorandum accounts of consolidated groups

Introductory provisions

OP 1

Memorandum accounts of consolidated groups

OP 2

When credits and debits arise only in group accounts

Consolidated groups and imputation credit accounts

Introductory provisions

OP 3

Changes in consolidated imputation groups

OP 4

Resident imputation subgroups

OP 5

When credits and debits arise only in consolidated imputation group accounts

OP 6

Provisions applying to consolidated imputation groups

Imputation credits of consolidated imputation groups

OP 7

Consolidated ICA payment of tax

OP 8

Consolidated ICA deposit in tax pooling account

OP 9

Consolidated ICA transfer from tax pooling account

OP 10

Consolidated ICA allocation from company with overpaid provisional tax

OP 11

Consolidated ICA payment of further income tax

OP 11B

Consolidated ICA expenditure on research and development [Repealed]

OP 11C

Consolidated ICA credit for research and development tax credit

OP 12

Consolidated ICA dividend derived with imputation credit

OP 13

Consolidated ICA dividend derived with FDP credit [Repealed]

OP 14

Consolidated ICA payment of FDP [Repealed]

OP 15

Consolidated ICA replacement payment to company under share-lending arrangement

OP 16

Consolidated ICA credit transfer to company

OP 16B

Consolidated ICA credit transfer to departing consolidated imputation group for unused tax payment

OP 17

Consolidated ICA resident withholding tax withheld

OP 18

Consolidated ICA transfer from group company’s FDP account [Repealed]

OP 19

Consolidated ICA transfer from group’s FDP account [Repealed]

OP 20

Consolidated ICA transfer from group company’s policyholder credit account [Repealed]

OP 21

Consolidated ICA transfer from group’s policyholder credit account [Repealed]

OP 22

Consolidated ICA transfer from group company’s ICA

OP 23

Consolidated ICA elimination of double debit

OP 24

Consolidated ICA reversal of tax advantage arrangement

OP 25

Consolidated ICA non-resident withholding tax withheld

OP 26

Consolidated ICA payment of amount of tax for schedular payment

OP 27

Consolidated ICA payment of schedular income tax liability

Imputation debits of consolidated imputation groups

OP 28

Consolidated ICA payment of dividend

OP 29

Consolidated ICA allocation of provisional tax

OP 30

Consolidated ICA refund of income tax

OP 31

Consolidated ICA amount applied to pay other taxes

OP 32

Consolidated ICA refund from tax pooling account

OP 33

Consolidated ICA transfer within tax pooling account

OP 33B

Consolidated ICA debit for transfer from tax pooling account for policyholder base liability

OP 34

Consolidated ICA refund of FDP [Repealed]

OP 35

Consolidated ICA refund of tax credit

OP 36

Consolidated ICA overpayment of FDP [Repealed]

OP 37

Consolidated ICA group company’s debit

OP 38

Consolidated ICA transfer for net foreign attributed income [Repealed]

OP 39

Consolidated ICA replacement payment by company under share-lending arrangement

OP 40

Consolidated ICA returning share transfer

OP 41

Consolidated ICA credit transfer by company

OP 41B

Consolidated ICA debit for unused tax payment of departing member

OP 41C

Consolidated ICA debit for unused tax payment of departing part of group

OP 42

Consolidated ICA debit for loss of shareholder continuity

OP 43

Consolidated ICA breach of imputation ratio

OP 44

Consolidated ICA debit for policyholder base imputation credits

OP 45

Consolidated ICA redemption debit

OP 46

Consolidated ICA tax advantage arrangement

OP 47

Consolidated ICA final balance

OP 48

Consolidated ICA refund of NRWT

OP 49

Consolidated ICA refund of amount of tax for schedular payment

OP 50

Consolidated ICA refund relating to schedular income tax liability

Table O19: imputation credits of consolidated imputation groups

Table O20: imputation debits of consolidated imputation groups

Consolidated groups and FDP accounts

Introductory provisions

OP 51

FDP accounts of consolidated FDP groups [Repealed]

OP 52

Choosing to stop being consolidated FDP group [Repealed]

OP 53

When group company emigrates [Repealed]

OP 54

When credits and debits arise only in consolidated FDP group accounts [Repealed]

OP 55

Provisions applying to consolidated FDP groups [Repealed]

FDP credits of consolidated FDP groups

OP 56

Consolidated FDPA payment of FDP [Repealed]

OP 57

Consolidated FDPA payment of further FDP [Repealed]

OP 58

Consolidated FDPA dividend derived with FDP credit [Repealed]

OP 59

Consolidated FDPA group company’s credit [Repealed]

OP 60

Consolidated FDPA credit transfer to company [Repealed]

OP 61

Consolidated FDPA transfer from group’s CTR account [Repealed]

OP 62

Consolidated FDPA transfer for net foreign attributed income [Repealed]

OP 63

Consolidated FDPA reversal of tax advantage arrangement [Repealed]

FDP debits of consolidated FDP groups

OP 64

Consolidated FDPA payment of dividend [Repealed]

OP 65

Consolidated FDPA credit transfer by company [Repealed]

OP 66

Consolidated FDPA refund of FDP [Repealed]

OP 67

Consolidated FDPA overpayment of FDP [Repealed]

OP 68

Consolidated FDPA refund of tax credit [Repealed]

OP 69

Consolidated FDPA transfer to imputation credit account [Repealed]

OP 70

Consolidated FDPA transfer to group’s CTR account [Repealed]

OP 71

Consolidated FDPA group company’s debit [Repealed]

OP 72

Consolidated FDPA breach of FDP ratio [Repealed]

OP 73

Consolidated FDPA debit for loss of shareholder continuity [Repealed]

OP 74

Consolidated FDPA debit for policyholder base FDP credits [Repealed]

OP 75

Consolidated FDPA breach of FDP ratio by PCA company [Repealed]

OP 76

Consolidated FDPA tax advantage arrangement [Repealed]

OP 77

Consolidated FDPA final balance [Repealed]

Table O21: FDP credits of consolidated FDP groups

Table O22: FDP debits of consolidated FDP groups

Consolidated groups and CTR credits

Introductory provisions

OP 78

CTR accounts of consolidated groups [Repealed]

OP 79

When credits and debits arise only in CTR group accounts [Repealed]

OP 80

Provisions applying to consolidated groups with CTR accounts [Repealed]

CTR credits of consolidated groups

OP 81

Consolidated CTRA tax credit for conduit tax relief [Repealed]

OP 82

Consolidated CTRA reduction of FDP [Repealed]

OP 83

Consolidated CTRA dividend derived with CTR credit [Repealed]

OP 84

Consolidated CTRA group company’s credit [Repealed]

OP 85

Consolidated CTRA transfer from group’s FDP account [Repealed]

OP 86

Consolidated CTRA reversal of tax advantage arrangement [Repealed]

CTR debits of consolidated groups

OP 87

Consolidated CTRA payment of dividend [Repealed]

OP 88

Consolidated CTRA transfer to group’s FDP account [Repealed]

OP 89

Consolidated CTRA adjustment for conduit tax relief [Repealed]

OP 90

Consolidated CTRA group company’s debit [Repealed]

OP 91

Consolidated CTRA increase in resident shareholding [Repealed]

OP 92

Consolidated CTRA breach of CTR ratio [Repealed]

OP 93

Consolidated CTRA tax advantage arrangement [Repealed]

OP 94

Consolidated CTRA final balance [Repealed]

Consolidated groups’ FDP payments and refunds

OP 95

FDP payable for credits and debits in group’s CTR account [Repealed]

OP 96

Refund on transfer from group’s FDP account [Repealed]

Table O23: conduit tax relief credits of consolidated groups

Table O24: conduit tax relief debits of consolidated groups

Consolidated groups and branch equivalent tax accounts

Introductory provisions

OP 97

Branch equivalent tax accounts of consolidated BETA groups [Repealed]

OP 98

Choosing to stop being consolidated BETA group [Repealed]

OP 99

When credits and debits arise only in branch equivalent tax group accounts [Repealed]

Branch equivalent tax credits of consolidated BETA groups

OP 100

Consolidated BETA payment of income tax on foreign income [Repealed]

OP 101

Consolidated BETA payment of income tax [Repealed]

OP 102

Consolidated BETA remaining debit balances [Repealed]

OP 103

Consolidated BETA refund of FDP [Repealed]

OP 104

Consolidated BETA credit for loss of shareholder continuity [Repealed]

Treatment by consolidated BETA groups of BETA debits from conduit relief

OP 104B

Consolidated BETA group with debit balance, including debits from conduit relief, in certain income years [Repealed]

Branch equivalent tax debits of consolidated BETA groups

OP 105

Consolidated BETA payment of FDP [Repealed]

OP 106

Consolidated BETA reduction of FDP [Repealed]

OP 107

Consolidated BETA refund of income tax [Repealed]

OP 108

Consolidated BETA debit for loss of shareholder continuity [Repealed]

Debit if credit balance at beginning of first affected income year

OP 108B

Consolidated BETA group with credit balance at beginning of first affected income year [Repealed]

Table O25: branch equivalent tax credits of consolidated BETA groups

Table O26: branch equivalent tax debits of consolidated BETA groups

Consolidated groups and policyholder credit accounts

Introductory provision

OP 109

Policyholder credit accounts of consolidated groups [Repealed]

Policyholder credits of consolidated groups

OP 110

Consolidated PCA transfer from imputation credit account [Repealed]

OP 111

Consolidated PCA transfer from FDP account [Repealed]

OP 112

Consolidated PCA group company’s credit [Repealed]

OP 113

Consolidated PCA maximum deficit debit in FDP account [Repealed]

OP 114

Consolidated PCA reduced deficit debit in FDP account [Repealed]

Policyholder debits of consolidated groups

OP 115

Consolidated PCA payment of tax relating to policyholder base [Repealed]

OP 116

Consolidated PCA transfer to imputation credit account [Repealed]

Table O27: policyholder credits of consolidated groups

Table O28: policyholder debits of consolidated groups

Subpart OZ—Terminating provisions

OZ 1

No imputation credit for pre-imputation tax paid

OZ 2

No imputation debit for pre-imputation refund

OZ 3

Overpaid income tax for pre-imputation income year

OZ 4

Terminating modifications to debits for loss of shareholder continuity

OZ 5

ASCA lost excess available subscribed capital

OZ 6

ASCA redemption of unused investments

OZ 7

Memorandum accounts in transitional period

OZ 7B

Maori authority credit ratios for transitional period

OZ 8

Attaching imputation credits: maximum permitted ratio

OZ 9

Benchmark dividends: ratio change

OZ 10

Modifying ratios for imputation credits

OZ 11

Tax credits for imputation credits

OZ 12

Tax credits for non-resident investors

OZ 13

Fully credited dividends: modifying actual ratio

OZ 14

Dividends from qualifying companies

OZ 15

Attaching imputation credits and notional distributions: modifying amounts

OZ 16

BETA reductions [Repealed]

OZ 17

CTRA reductions [Repealed]

OZ 18

Credit-back of PCA balance [Repealed]

Part R General collection rules

Subpart RA—General withholding and payment obligations

Introductory provisions

RA 1

What this Part does

RA 2

Amounts treated as income tax

Payment and withholding obligations

RA 3

Terminal tax obligations

RA 4

Provisional tax obligations

RA 5

Tax obligations for employment-related taxes

RA 6

Withholding and payment obligations for passive income

RA 6B

Withholding and payment obligations for retirement scheme contributions

RA 6C

Withholding and payment obligations for residential land

RA 7

Payment of tax by public authorities

RA 8

Liability of persons receiving payments or benefits

RA 9

Treatment of amounts withheld as received

RA 10

When obligations not met

RA 11

Adjustment to correct errors: certain underpayments

RA 12

Adjustment to correct errors: certain excess amounts

Payment dates

RA 13

Payment dates for terminal tax

RA 14

Payment dates for provisional tax

RA 15

Payment dates for interim and other tax payments

RA 16

Payment date when taxable activity ends

RA 17

Payment date when RWT-exempt status ends

RA 18

Payment date for emigrating companies

Refunds

RA 19

Refunds of excess amounts or when amounts mistakenly paid

Amalgamations

RA 20

Amalgamation of companies

Regulations

RA 21

Regulations

Application of other provisions

RA 22

Limits on application of other provisions for purposes of PAYE rules

RA 23

Application of other provisions for purposes of ESCT rules and NRWT rules

RA 24

Application of other provisions for purposes of RSCT rules

Subpart RB—Terminal tax

RB 1

Payment of terminal tax

RB 2

Income tax liability for non-filing taxpayers for non-resident passive income [Repealed]

RB 3

Schedular income tax liability for filing taxpayers for non-resident passive income

RB 4

Using refunds to satisfy tax liabilities

Subpart RC—Provisional tax

Introductory provisions

RC 1

What this subpart does

RC 2

Provisional tax rules and their application

RC 3

Who is required to pay provisional tax?

RC 4

Choosing to pay provisional tax

Calculating provisional tax liability

RC 5

Methods for calculating provisional tax liability

Instalments of provisional tax

RC 9

Provisional tax payable in instalments

Table R1: Summary of instalment dates and calculation methods for provisional tax

RC 10

Calculating amount of instalment under standard and estimation methods

RC 10B

Calculating amount of instalment for periods using AIM method

RC 11

Calculating amount of instalment using GST ratio

RC 12

Voluntary payments

RC 13

Paying 2 instalments for tax year

RC 14

Paying 1 instalment for tax year

Requirements for using GST ratio

RC 15

Choosing to use GST ratio

RC 16

Who may use GST ratio?

RC 17

When GST ratio must not be used

RC 18

Changing calculation method

Calculating residual income tax in transitional years

RC 21

Paying provisional tax in transitional years

RC 22

Calculating instalments in transitional years: standard method

RC 23

Calculating instalments in transitional years: estimation method

RC 24

Calculating instalments in transitional years: GST ratio method

RC 25

Consequences of change in balance date

When persons start or stop paying GST, or change taxable periods

RC 26

Registering for GST or cancelling registration

RC 27

Payment of provisional tax instalments when GST cycle changed

Treatment of groups of companies and amalgamated companies

RC 28

Provisional tax rules and consolidated groups

RC 29

Residual income tax of consolidated groups

RC 30

Consolidated groups using estimation method

RC 31

Consolidated groups using GST ratio method

RC 32

Wholly-owned groups of companies

RC 33

Amalgamated companies: calculating residual income tax

Attribution rule for income from personal services

RC 34

Attribution rule for income from personal services

Credits

RC 35

Further income tax credited to provisional tax liability

RC 35B

Treatment of overpaid provisional tax instalments calculated using AIM method

Disaster relief

RC 36

Persons affected by adverse events [Repealed]

Early-payment discounts

RC 37

Availability of early-payment discounts

RC 38

Crediting income tax with early-payment discount

RC 39

Credit treated as payment of income tax

RC 40

Some definitions

Subpart RD—Employment-related taxes

Introductory provision

RD 1

What this subpart does

PAYE rules and PAYE income payments

Introductory provisions

RD 2

PAYE rules and their application

RD 3

PAYE income payments

RD 3B

Shareholders who are employees, for some companies: income other than PAYE

RD 3C

Shareholders who are employees, for some companies: PAYE and income other than PAYE

RD 4

Payment of amounts of tax to Commissioner

Types of PAYE income payments

RD 5

Salary or wages

RD 6

Certain benefits and payments

RD 7

Extra pay

RD 7B

Treatment of employee share schemes

RD 8

Schedular payments

RD 8B

Treatment of PAYE-related overpayments

Calculating amounts of tax

RD 9

Maximum amount

RD 10

Amounts of tax for PAYE income payments

RD 10B

Amounts of tax for schedular payments

RD 10C

Calculating amounts of tax following changes to rates or thresholds

RD 11

Amount of tax in certain circumstances

Adjustments for certain PAYE income payments

RD 12

Multiple payments of salary or wages

RD 13

Advance payments

RD 13B

Adjustments for payroll donations

RD 14

Changes to tax rates for salary or wages [Repealed]

RD 15

Payments of salary or wages in pay periods

RD 16

Payments to private domestic workers

RD 17

Payment of extra pay with other PAYE income payments

RD 18

Schedular payments without notification [Repealed]

RD 19

Schedular payments to non-resident entertainers

RD 20

Schedular payments to subcontractors

Paying amounts of tax

RD 21

When amounts of tax not withheld or payment insufficient

RD 22

Providing employment income information to Commissioner

RD 23

Bonds given by employers of certain non-resident employees

RD 24

Exemptions for non-resident contractors

Fringe benefit tax (FBT) rules and fringe benefits

Introductory provisions

RD 25

FBT rules and their application

RD 26

Liability for FBT

Value of fringe benefits

RD 27

Determining fringe benefit values

RD 28

Private use of motor vehicle: calculation methods

RD 29

Private use of motor vehicle: formulas

RD 30

Private use of motor vehicle: 24-hour period

RD 31

Motor vehicle test period

RD 32

Replacement motor vehicles

Repayment of employment-related loans

RD 37

Contributions to superannuation schemes

RD 38

Contributions to funds, trusts, and insurance premiums

RD 39

Benefits provided by charitable organisations

Goods at staff discount

RD 43

Goods on special with staff discount

RD 44

Goods disposed of by group companies

RD 45

Unclassified benefits

RD 46

Adjustments for unclassified benefits on amalgamation

Attributing fringe benefits to employees

RD 47

Attribution of certain fringe benefits

RD 48

When attributed benefits provided to more than 1 employee

RD 49

Application of thresholds to attributed benefits

RD 50

Employer’s liability for attributed benefits

RD 51

Calculation of all-inclusive pay

RD 52

Calculation for certain employees when information lacking

RD 53

Pooling non-attributed benefits

Taxable value of fringe benefits

RD 54

Value of and payments towards fringe benefits

RD 55

Private use of motor vehicle: taxable value in cases of part ownership

RD 56

Private use of motor vehicle: when schedular value not used

RD 57

Private use of motor vehicle: when schedular value used

Options for payment of FBT

RD 58

Single rate option

RD 59

Alternate rate option

RD 60

Close company option

RD 61

Small business option

RD 62

Changes in payment periods

RD 62B

Obligations of cross-border employees when FBT liability not paid

RD 63

When employer stops employing staff

Employer’s superannuation contribution tax (ESCT) rules and employer’s superannuation contributions

Introductory provisions

RD 64

ESCT rules and their application

RD 65

Employer’s superannuation cash contributions

RD 66

Complying fund rules [Repealed]

Calculating amounts of tax

RD 67

Calculating amounts of tax for employer’s superannuation cash contributions

RD 67B

Calculating amounts of tax following changes to rates or thresholds

RD 68

Choosing to have amount treated as salary or wages

RD 69

Choosing different rates for employer’s superannuation cash contributions [Repealed]

RD 70

Calculating amounts of tax on failure to withhold

RD 71

Amounts of tax treated as paid to and received by superannuation funds

RD 71B

Obligations of cross-border employees when amounts of tax not paid

Tax on certain withdrawals from superannuation funds

RD 72

Recovery of tax paid by superannuation funds [Repealed]

Subpart RE—Withholding tax on resident passive income (RWT)

Introductory provisions

RE 1

RWT rules and their application

RE 2

Resident passive income

Withholding obligations

RE 3

Obligation to withhold RWT

RE 4

Persons who have withholding obligations

RE 5

No withholding obligation in certain circumstances

RE 6

When obligation to withhold unreasonable

RE 7

When resident passive income paid to trustees

RE 8

When resident passive income paid to nominees

RE 9

Agents’ or trustees’ obligations in relation to certain dividends

RE 10

Special rule relating to payments of interest

RE 10B

Amounts withheld from distributions to holders of FIF attributing interests

RE 10C

Obligations of custodial institutions in relation to certain payments of investment income

RE 11

Notification by companies

Calculating amounts of tax

RE 12

Interest

RE 13

Dividends other than non-cash dividends

RE 14

Non-cash dividends other than certain share issues

RE 14B

Combined cash and non-cash dividends

RE 14C

Non-cash dividends distributed through intermediaries

RE 15

Bonus issues in lieu and shares issued under profit distribution plans

RE 16

Taxable Maori authority distributions

RE 17

Replacement payments under share-lending arrangements

RE 18

Payments made by RWT proxies

RE 18B

Capital value increase under inflation-indexed instruments: RWT cap

RE 19

Choosing other rates

Paying amounts of tax

RE 20

Paying RWT

RE 21

Basis for payment of RWT

RE 22

When payment treated as non-resident passive income

RE 23

When amount of tax treated as FDP credit [Repealed]

RE 24

When amount of tax treated as Maori authority credit

RE 25

When amount of tax treated as imputation credit

RE 26

Payment by proxy

Persons with RWT-exempt status

RE 27

RWT-exempt status

RE 28

When RWT-exempt status ends

RE 29

Establishing whether persons have RWT-exempt status

RE 30

When unincorporated bodies have RWT-exempt status

Subpart RF—Withholding tax on non-resident passive income (NRWT)

Introductory provisions

RF 1

NRWT rules and their application

RF 2

Non-resident passive income

RF 2B

Non-resident financial arrangement income: outline and concepts

RF 2C

Meaning of non-resident financial arrangement income

Withholding obligations

RF 3

Obligation to withhold amounts of tax for non-resident passive income

RF 4

Non-resident passive income received by agents and others

RF 5

When amounts of tax already withheld

RF 6

When amounts of tax not withheld or partly withheld

Calculating amounts of tax

RF 7

General rate for NRWT

RF 8

Certain dividends

RF 9

When dividends fully imputed

RF 10

Non-cash dividends

RF 11

Dividends paid to companies associated with non-residents

RF 11B

Dividends paid by companies in certain situations

RF 11BB

Certain dividends paid to dual resident companies

RF 11C

Interest paid by non-resident companies to non-residents

RF 12

Interest paid by approved issuers or transitional residents

RF 12B

Interest derived jointly with residents

RF 12C

Amount derived from non-resident life insurer becoming resident

Certain financial arrangements involving related-party debt

RF 12D

Determining amount of non-resident financial arrangement income

RF 12E

When non-resident financial arrangement income treated as paid

RF 12F

Adjustments: first year additional amounts

RF 12G

Choosing to treat income as non-resident financial arrangement income

RF 12H

Meaning of related-party debt

RF 12I

Concepts used for definition of related-party debt

RF 12J

Treatment of certain payments made under indirect associated funding arrangements

Paying amounts of tax

RF 13

Basis for payment of amounts of tax for non-resident passive income

RF 14

Treatment of FDP credits [Repealed]

RF 15

Commissioner’s power to vary amounts of tax

RF 16

Relationship with RSCT rules

Subpart RG—Payments for foreign dividends (FDP) [Repealed]

Introductory provisions

RG 1

FDP rules and their application [Repealed]

RG 2

Foreign dividends [Repealed]

Obligation to make payments

RG 3

Obligation to pay FDP [Repealed]

Calculation of payments

RG 4

Calculating amount of FDP [Repealed]

Adjustments to payments

RG 5

Credit balance in branch equivalent tax account [Repealed]

RG 6

Using loss balances [Repealed]

RG 7

Reduction of payments for conduit tax relief [Repealed]

Subpart RH—Withholding tax on retirement scheme contributions

RH 1

RSCT rules and their application

RH 2

Retirement scheme contributions

RH 3

Retirement savings schemes

RH 4

Retirement scheme contributors

Calculating amounts of tax

RH 5

Calculating amounts of tax for retirement scheme contribution

RH 6

Calculating amounts of tax on failure to withhold

Subpart RL—Residential land withholding tax

RL 1

Residential land withholding tax

RL 2

Vendors: who must pay, and how?

RL 3

Associated persons: who must pay, and how?

Commissioner repaying RLWT

Subpart RM—Refunds

Introductory provision

RM 1

What this subpart does

Refunds for overpaid amounts

RM 2

Refunds for overpaid tax

RM 3

Refunds for overpaid FDP [Repealed]

RM 4

Overpayment on amended assessment

RM 5

Overpayment on income statements [Repealed]

RM 6

Refunds after 4-year period ends [Repealed]

RM 6B

Refunds for overpaid AIM method instalments

RM 7

Refunds to PAYE intermediaries

RM 8

Overpaid RWT or NRWT

RM 9

Calculations for attributed and non-attributed fringe benefits

Use of refunds

RM 10

Using refund to satisfy tax liability

RM 11

Using GST refund to pay instalment of provisional tax

RM 12

Reduction in provisional tax liability

Limits on refunds and transfers

ICA companies

RM 13

Limits on refunds for ICA companies

RM 14

Limits on refunds when company stops being ICA company

RM 15

Changes in credit balances

RM 16

Treatment of amounts not refunded

RM 17

Treatment of further income tax paid

Companies receiving foreign dividends

RM 18

Limits on refunds related to foreign dividends [Repealed]

RM 19

Treatment of financial arrangements [Repealed]

RM 20

Treatment of amounts not refunded [Repealed]

RM 21

Refunds when loss balances used to reduce net income [Repealed]

Maori authorities

RM 22

Limits on refunds for Maori authorities

RM 23

Limits on refunds when Maori authority stops being Maori authority

RM 24

Increase in credit balances

RM 25

Treatment of amounts not refunded

RM 26

Treatment of further income tax paid

RM 27

Application when no credits arise

Persons with policyholder credit accounts

RM 28

Limits on refunds for PCA persons [Repealed]

RM 29

Limits on refunds when person no longer PCA person [Repealed]

RM 30

Changes in credit balances [Repealed]

RM 31

Treatment of amounts not refunded [Repealed]

Qualifying companies

RM 32

Application of sections RM 13 to RM 17 to qualifying companies

Certain unit trusts and group investment funds

RM 33

Limits on refunds for certain unit trusts and group investment funds

Subpart RP—Intermediaries

Introductory provision

RP 1

What this subpart does

PAYE intermediaries

Obligations and treatment of PAYE intermediaries

RP 2

PAYE intermediaries

RP 3

Requirements for listed PAYE intermediaries [Repealed]

RP 4

Payment of subsidies to certain PAYE intermediaries [Repealed]

RP 5

Subsidy claims [Repealed]

RP 6

Operation of PAYE intermediaries’ trust accounts

Employers’ responsibilities

RP 7

General responsibilities of employers

RP 8

Information for PAYE intermediaries

RP 9

Authorised transfers from accounts

RP 10

When transfers from accounts not authorised

RP 11

Employer’s superannuation cash contributions

RP 12

When payments made directly to employees

PAYE intermediaries’ responsibilities

RP 13

General responsibilities of PAYE intermediaries

RP 14

Collection, payment, and information requirements

RP 15

When employers have authorised transfers from accounts

RP 16

Obligations for employer’s superannuation contributions

Tax pooling intermediaries

RP 17

Tax pooling intermediaries

RP 17B

Tax pooling accounts and their use

RP 18

Deposits in tax pooling accounts

RP 19

Transfers from tax pooling accounts

RP 19B

Transfers for certain expected tax liabilities

RP 20

Declining, amending, or reversing transfers

RP 21

Refunds from tax pooling accounts

Subpart RZ—Terminating provisions

Provisional tax

RZ 1

Certain elections to become person with provisional tax liability

RZ 2

Amount of provisional tax based on 1997–98 or earlier tax year

RZ 3

Standard method: 2010–11 to 2012–13 income years

RZ 4

GST ratio method: 2010–11 to 2013–14 income years

RZ 5

Calculating amounts under standard method: 2010–11 to 2012–13 income years

RZ 5B

Standard method: new personal tax rate persons from 1 October 2008 to end 2009–10 income year [Repealed]

RZ 5C

GST ratio method: new personal tax rate persons from 1 October 2008 to end 2009–10 income year [Repealed]

RZ 5D

Standard method or GST method: transition for Maori authorities

Refunds

RZ 6

Limits on refunds: transitional dates

Withdrawal income

RZ 7

Withdrawal income [Repealed]

RZ 8

Payment and rate of withdrawal tax [Repealed]

RZ 9

Relief in certain cases [Repealed]

RZ 10

Recovery of amounts payable to Commissioner [Repealed]

Refunds for life insurers

RZ 11

Refunds for life insurers

Tax pooling intermediaries

RZ 12

Adjustments to interest in requests made after commencement

Non-resident financial arrangement income

RZ 13

Treatment of prepayments

RZ 14

Listed PAYE intermediaries: transitional provision

RZ 15

Treatment of certain refunds made on income statements: 1 April 2008 to 31 March 2019

RZ 16

Treatment of certain refunds not paid within 4-year period: 1 April 2008 to 31 March 2013

Part Y Definitions and related matters

Subpart YA—General definitions

YA 1

Definitions

YA 2

Meaning of income tax varied

YA 3

Treatment of qualifying company election tax, FBT, FDP penalty tax, imputation penalty tax, and withdrawal tax [Repealed]

YA 4

General rules for giving information or communicating matters

YA 5

General rule: capacity of trustees

Subpart YB—Associated persons and nominees

Table Y1: Associated person rules

Associated persons

YB 1

What this subpart does

YB 2

Two companies

YB 3

Company and person other than company

YB 4

Two relatives

YB 5

Person and trustee for relative

YB 6

Trustee and beneficiary

YB 7

Two trustees with common settlor

YB 8

Trustee and settlor

YB 9

Settlor and beneficiary

YB 10

Who is a settlor?

YB 11

Trustee and person with power of appointment or removal

YB 12

Partnership and partner

YB 13

Look-through companies and owners of interests

YB 14

Tripartite relationship

YB 15

Exceptions for employee trusts

YB 16

Exceptions for certain trusts and charitable organisations

YB 17

Partnerships: partnership and associate of partner [Repealed]

YB 18

Persons habitually acting together: 1988 version provisions [Repealed]

YB 19

Person and controlled non-profit organisation: 1990 version provisions [Repealed]

YB 20

Some definitions [Repealed]

Nominees

YB 21

Transparency of nominees

Subpart YC—Measurement of company ownership

Control

YC 1

Meaning of control [Repealed]

Voting and market value interests

YC 2

Voting interests

YC 3

Market value interests

YC 4

Look-through rule for corporate shareholders

YC 5

Treatment of special corporate entities

YC 5B

Treatment of mixed-ownership enterprises

YC 6

Disregarding certain securities

Voting and market value interests: modifications for continuity provisions

YC 7

When sections YC 8 to YC 19B apply

YC 8

Death of share or option holder

YC 9

Shares or options held by trustees

YC 10

Shareholders holding less than 10% direct interests

YC 11

No look-through rule for companies in certain cases

Disregarding concessionary rules

YC 15

Directors’ knowledge of failure to meet requirements of continuity provision

YC 16

Disregarding market value changes

YC 17

Demutualisation of insurers

YC 18

Reverse takeovers

YC 18B

Corporate reorganisations not affecting economic ownership

YC 18C

Railways restructure not affecting Crown economic ownership

YC 19

Legislative conversion of foreign company of proprietors

YC 19B

Treatment when certain trusts terminated

YC 20

Credit account continuity provisions: excluded fixed rate securities

Subpart YD—Residence and source in New Zealand

Residence

YD 1

Residence of natural persons

YD 2

Residence of companies

YD 3

Country of residence of foreign companies

YD 3BA

Country of residence of joint trustees

Classes of income treated as having New Zealand source

YD 4B

Meaning of permanent establishment

YD 5

Apportionment of income derived partly in New Zealand

YD 5B

Attribution of income and expenditure to permanent establishment in New Zealand

YD 6

Apportionment of income from sea transport

YD 7

Apportionment of film rental income [Repealed]

YD 8

Apportionment of premiums derived by non-resident general insurers

YD 8B

Apportionment of life insurance premiums derived by Lloyd’s of London

Conduit tax relief companies: special residence rules

YD 9

Residence of CTR company shareholders [Repealed]

YD 10

Meaning of CTR holding company [Repealed]

YD 11

Meaning of CTR group member [Repealed]

Subpart YE—References to balance dates and years

YE 1

References to balance dates and years

Subpart YF—Currency conversion

YF 1

General rules for currency conversion

YF 2

Other rules for currency conversion: approved alternatives

Subpart YZ—Terminating provisions

YZ 1

Source rule for interest

YZ 2

Saving of effect of section 394L(4A) of Income Tax Act 1976

YZ 3

Saving effect of section DF 5 of Income Tax Act 1994

YZ 4

Saving of effect of certain terms defined in Canterbury Earthquake Recovery Act 2011

YZ 5

New Zealand Memorial Museum Trust — Le Quesnoy: sunset

Part Z Repeals, amendments, and savings

ZA 1

Repeals

ZA 2

Consequential amendments to other enactments

ZA 3

Transitional provisions

ZA 4

Saving of binding rulings

ZA 5

Saving of accrual determinations

ZA 6

Comparative tables of old and new provisions

Schedule 1 Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe benefits

Schedule 2 Basic tax rates for PAYE income payments

Schedule 3 Payment of provisional tax and terminal tax

Schedule 4 Standard rates of tax for schedular payments

Schedule 5 Fringe benefit values for motor vehicles

Schedule 6 Prescribed rates: PIE investments and retirement scheme contributions

Schedule 10 Straight-line equivalents of diminishing value rates of depreciation

Schedule 11 New banded rates of depreciation

Schedule 12 Old banded rates of depreciation

Schedule 13 Depreciable land improvements

Schedule 14 Depreciable intangible property

Schedule 15 Excepted residential land

Schedule 17 Types and classes of livestock

Schedule 18 Categories of livestock for which national standard costs to be declared

Schedule 18B Premier yearling sales

Schedule 18C Breeds and classes of bloodstock

Schedule 19 Expenditure in avoiding, remedying, or mitigating detrimental effects of discharge of contaminant or making of noise

Schedule 20 Expenditure on farming, horticultural, aquacultural, and forestry improvements

Schedule 21 Excluded activities for research and development activities tax credits

Schedule 21 Expenditure and activities related to research and development [Repealed]

Schedule 21B Expenditure or loss for research and development tax credits

Schedule 22 Proscribed R&D activities

Schedule 23 Meaning of permanent establishment

Schedule 24 International tax rules: grey list countries

Schedule 25 Foreign investment funds

Schedule 26 Low tax jurisdictions or territories [Repealed]

Schedule 27 Countries and types of income with unrecognised tax

Schedule 28 Requirements for complying fund rules

Schedule 29 Portfolio investment entities: listed investors

Schedule 31 Annualised equivalent amount for Part M

Schedule 32 Recipients of charitable or other public benefit gifts

Schedule 33 Default fractions of foreign superannuation withdrawals

Schedule 34 Community housing trusts and companies: income and assets of beneficiaries and clients

Schedule 35 Public purpose Crown-controlled companies

Schedule 36 Government enterprises

Schedule 37 Statutory producer boards

Schedule 38 Acts exempting income from tax: income included in family scheme income

Schedule 39 Items for purposes of definition of special excluded depreciable property [Repealed]

Schedule 48 Enactments repealed

Schedule 49 Enactments amended

Schedule 50 Amendments to Tax Administration Act 1994

Schedule 51 Identified changes in legislation

Schedule 52 Comparative tables of old and rewritten provisions

1 Title

End.reprint-note

Previous: Part A Purpose and interpretation

Part B Core provisions

Flowchart B1: Outline of Part

This diagram is a flow chart showing the relationship between the subparts of Part B. Subpart BA feeds into subpart BB. Subpart BB interacts with subparts BC, BE, BF, BG, and BH. Subpart BC interacts with subpart BD.

Subpart BA—Purpose

BA 1

Purpose

BA 1 Purpose

The purposes of this Part are—

(a)

to impose income tax, provisional tax, withholding liabilities, and other tax obligations concerning taxes:

(b)

to set out procedures to be followed for calculating tax and satisfying the obligations imposed under this Act:

(c)

to provide a basis for applying the other Parts:

(d)

generally to set up the scheme of the Act and the main links between its Parts.

Defined in this Act: income tax, provisional tax, tax

Compare: 2004 No 35 s BA 1

Subpart BB—Income tax and resulting obligations

BB 1	Imposition of income tax
BB 2	Main obligations
BB 3	Overriding effect of certain matters

BB 1 Imposition of income tax

Income tax is imposed on taxable income, at the rate or rates of tax fixed by an annual taxing Act, and is payable to the Crown under this Act and the Tax Administration Act 1994.

Defined in this Act: annual taxing Act, income tax, pay, tax, taxable income

Compare: 2004 No 35 s BB 1

BB 2 Main obligations

Income tax liability

(1)

A person’s income tax liability for a tax year must be calculated, and satisfied by the person, under subpart BC (Calculating and satisfying income tax liabilities).

Non-filing taxpayer

(2)

Despite subsection (1), a non-filing taxpayer is not required to file a return of income.

Provisional tax

(3)

A person liable to pay provisional tax must pay provisional tax for a tax year under the provisional tax rules.

Withholding liabilities

(4)

A person who has a withholding liability must satisfy it under subpart BE (Withholding liabilities).

Other obligations

(5)

A person who has an obligation in relation to income tax or ancillary tax under subpart BF (Other obligations) must satisfy it under that subpart.

Defined in this Act: ancillary tax, income tax, income tax liability, non-filing taxpayer, pay, provisional tax rules, provisional tax, return of income, tax year

Compare: 2004 No 35 s BB 2

Section BB 2(5): amended, on 23 March 2020, by section 82(1) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).

Section BB2 list of defined terms income tax: inserted, on 23 March 2020, by section 82(2) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).

BB 3 Overriding effect of certain matters

Tax avoidance arrangements: subpart BG

(1)

Under Part G (Avoidance and non-market transactions), the Commissioner may counteract a tax advantage from a tax avoidance arrangement.

Double tax agreements: subpart BH

(2)

Subpart BH (Double tax agreements) provides for the effect of a double tax agreement.

Defined in this Act: Commissioner, double tax agreement, income tax, tax, tax avoidance arrangement

Compare: 2004 No 35 s BB 3

Section BB 3(2): replaced, on 1 July 2014, by section 5 of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).

Subpart BC—Calculating and satisfying income tax liabilities

BC 1	Non-filing and filing taxpayers
BC 2	Annual gross income
BC 3	Annual total deduction
BC 4	Net income and net loss
BC 5	Taxable income
BC 6	Income tax liability of filing taxpayer
BC 7	Income tax liability of person with schedular income
BC 8	Satisfaction of income tax liability

Flowchart B2: Calculating and satisfying income tax liabilities

This diagram is the first part of a 2-part flow chart. It shows a series of questions, with answers of Yes or No, relating to whether categories of receipts or gains are subject to taxation. Each question is summarised from a subsection of section BD 1. An answer to a question may lead to the result that all or part of a receipt or gain is not taxed. Otherwise, the answer leads to the next question. If the receipt or gain is assessable income under section BD 1(5), the assessable income is included in the calculation of income tax liability, as shown in the second part of the flow chart.

This diagram is the second part of the flow chart commenced on the previous page. It shows the stages in the calculation of a person’s income tax liability for a tax year under sections in subparts BC and BD. Sections BD 1 and BD 3 result in amounts of assessable income being identified and allocated to determine annual gross income under section BC 2. Similarly, sections BD 2 and BD 4 result in amounts of deductions being identified and allocated to determine annual total deductions under section BC 3. The output feeds into section BC 4, to determine whether the result is a net loss or net income. Net income feeds into section BC 5, which calculates taxable income. Net loss feeds into Part I, which feeds into the determination of available tax losses as part of the calculation of taxable income. Taxable income feeds into the calculation of income tax liability under section BC 6. That calculation is shown in the next flow chart.

Flowchart B2: amended (with effect on 1 April 2008), on 7 December 2009, by section 4 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

BC 1 Non-filing and filing taxpayers

Non-filing taxpayer

(1)

The income tax liability of a non-filing taxpayer for a tax year is the total tax withheld from amounts of income included in the taxpayer’s annual gross income for the year.

Filing taxpayer

(2)

The income tax liability of a filing taxpayer for a tax year is calculated under sections BC 2 to BC 6.

Filing taxpayer with schedular income

(3)

If a filing taxpayer has schedular income, their income tax liability calculation is modified by section BC 7.

Defined in this Act: amount, annual gross income, filing taxpayer, income, income tax liability, non-filing taxpayer, schedular income, tax, tax year

Compare: 2004 No 35 s BC 1

BC 2 Annual gross income

A person’s annual gross income for a tax year is the total of their assessable income that is allocated to the corresponding income year.

Defined in this Act: annual gross income, assessable income, corresponding income year, tax year

Compare: 2004 No 35 s BC 2

BC 3 Annual total deduction

A person’s annual total deduction for a tax year is the total of their deductions that are allocated to the corresponding income year.

Defined in this Act: annual total deduction, corresponding income year, deduction, tax year

Compare: 2004 No 35 s BC 3

BC 4 Net income and net loss

Income more than deductions

(1)

If, for a tax year, a person’s annual gross income is more than their annual total deduction, the difference is their net income for the year.

Income equal to deductions

(2)

If, for a tax year, a person’s annual gross income equals their annual total deduction, their net income for the year is zero.

Deductions more than income

(3)

If, for a tax year, a person’s annual total deduction is more than their annual gross income, the difference is their net loss for the year, and their net income for the year is zero.

Treatment of net loss

(4)

A person’s net loss for a tax year is included under Part I (Treatment of tax losses) in their tax loss for the tax year that may, under Part I, be—

(a)

subtracted from their net income for a future tax year:

(b)

made available to another person to subtract from that other person’s net income for that or a future tax year:

(c)

used in certain other ways.

Defined in this Act: annual gross income, annual total deduction, net income, net loss, tax loss, tax year

Compare: 2004 No 35 s BC 4

BC 5 Taxable income

A person’s taxable income for a tax year is determined by subtracting any available tax loss that the person has from their net income under Part I (Treatment of tax losses).

Defined in this Act: available tax loss, net income, taxable income, tax year

Compare: 2004 No 35 s BC 5

Flowchart B3: Calculating income tax liability

This diagram is a flow chart showing the continuation of the process shown in Flowchart B2. Section BC 6 is applied to the taxable income from section BC 5 in several steps to produce an income tax liability that is zero or positive. Both results feed into section BC 8, for the calculation shown in the next flow chart.

Section BC 5 list of defined terms tax loss: repealed (with effect on 1 April 2008), on 30 March 2022, by section 47 of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).

BC 6 Income tax liability of filing taxpayer

Calculation of amount

(1)

The income tax liability of a filing taxpayer for a tax year is the amount calculated by multiplying their taxable income for the tax year by the basic tax rate. The income tax liability of a filing taxpayer with schedular income is determined under section BC 7.

When liability zero or negative

(2)

If the income tax liability calculated under subsection (1) is zero or negative, the filing taxpayer’s income tax liability for the tax year is zero.

Defined in this Act: amount, basic tax rate, filing taxpayer, income tax liability, schedular income, tax year, taxable income

Compare: 2004 No 35 s BC 6

BC 7 Income tax liability of person with schedular income

Modified income tax liability

(1)

The income tax liability for a tax year of a person who has schedular income for the year is the total of—

(a)

their schedular income tax liability for the year calculated under subsection (2) or (3); and

(b)

the amount that would be their income tax liability for the year if they had no schedular income.

Schedular income tax liability

(2)

If a person has 1 kind of schedular income for a tax year, their schedular income tax liability for the year is the amount that would be the income tax liability for the year if their only income for the year were that schedular income.

Multiple schedular income

(3)

If a person has more than 1 kind of schedular income for a tax year, their schedular income tax liability for the year is the total of the amounts calculated for each kind of schedular income.

Income tax liability of multi-rate PIEs

(4)

The income tax liability for a tax year of a multi-rate PIE is determined under subpart HM (Portfolio investment entities).

Special rule for natural person investors in multi-rate PIEs

(5)

The schedular income tax liability of a natural person investor in a multi-rate PIE, when the rate of tax applied for the year is not equal to the investor’s prescribed investor rate for the year, is calculated under section HM 36B (Calculating PIE schedular income adjustments for natural person investors) to provide an adjustment to the amount of the person’s income tax liability referred to in subsection (1)(b).

Defined in this Act: amount, income, income tax liability, multi-rate PIE, prescribed investor rate, schedular income, schedular income tax liability, tax year

Compare: 2004 No 35 s BC 7

Flowchart B4: Satisfying income tax liability

This diagram is a flow chart showing the completion of the process shown in Flowcharts B2 and B3. It begins with the income tax liability from section BC 6. Sections BC 8(2) and LA 4 set off credits, in the prescribed order, against the income tax liability. If the result is negative, it leads to surplus credits under section BC 8(4) and then to section LA 5. If the result is positive, it leads to terminal tax under section BC 8(3) and then to tax payments under Part R.

Section BC 7(4) heading: added, on 1 April 2010 (applying for the 2010–11 and later income years), by section 4(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section BC 7(4): added, on 1 April 2010 (applying for the 2010–11 and later income years), by section 4(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section BC 7(5) heading: inserted, on 1 April 2020, by section 83(1) (and see section 83(2) for application) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).

Section BC 7(5): inserted, on 1 April 2020, by section 83(1) (and see section 83(2) for application) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).

Section BC 7(5): amended (with effect on 1 April 2020), on 30 March 2021, by section 5(1) of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).

Section BC 7 list of defined terms multi-rate PIE: inserted, on 1 April 2010, by section 4(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section BC 7 list of defined terms prescribed investor rate: inserted (with effect on 1 April 2020), on 30 March 2021, by section 5(2) of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).

Flowchart B4: amended, on 1 April 2019, by section 5 (and see section 3 for application) of the Taxation (Research and Development Tax Credits) Act 2019 (2019 No 15).

BC 8 Satisfaction of income tax liability

Use of tax credits

(1)

Credits for tax paid, tax withheld, or other circumstances, calculated under Parts L (Tax credits and other credits) and M (Tax credits paid in cash), satisfy a person’s income tax liability for a tax year as far as the credits extend.

Ordering rule

(2)

The order in which the person uses their credits is set out in section LA 4 (When total tax credit more than income tax liability).

Terminal tax

(3)

If the person’s income tax liability is more than the total of their credits, the difference is the person’s terminal tax. The person must pay the terminal tax to complete the satisfaction of their income tax liability.

Remaining credits

(4)

The treatment of any credits remaining after the person’s income tax liability is satisfied is dealt with in section LA 5 (Treatment of remaining credits).

Defined in this Act: income tax liability, pay, tax, tax credit, tax year, terminal tax

Compare: 2004 No 35 s BC 9

Subpart BD—Income, deductions, and timing

BD 1	Income, exempt income, excluded income, non-residents’ foreign-sourced income, and assessable income
BD 2	Deductions
BD 3	Allocation of income to particular income years
BD 4	Allocation of deductions to particular income years

BD 1 Income, exempt income, excluded income, non-residents’ foreign-sourced income, and assessable income

Amounts of income

(1)

An amount is income of a person if it is their income under a provision in Part C (Income).

Exempt income

(2)

An amount of income of a person is exempt income if it is their exempt income under a provision in subpart CW (Exempt income) or CZ (Terminating provisions).

Excluded income

(3)

An amount of income of a person is excluded income if—

(a)

it is their excluded income under a provision in subpart CX (Excluded income) or CZ; and

(b)

it is not their non-residents’ foreign-sourced income.

Non-residents’ foreign-sourced income

(4)

An amount of income of a person is non-residents’ foreign-sourced income if—

(a)

the amount is a foreign-sourced amount; and

(b)

the person is a non-resident when it is derived; and

(c)

the amount is not income of a trustee to which section HC 25(2) (Foreign-sourced amounts: non-resident trustees) applies.

Assessable income

(5)

An amount of income of a person is assessable income in the calculation of their annual gross income if it is not income of any of the following kinds:

(a)

their exempt income:

(b)

their excluded income:

(c)

their non-residents’ foreign-sourced income.

Defined in this Act: amount, annual gross income, assessable income, excluded income, exempt income, foreign-sourced amount, income, non-resident, non-residents’ foreign-sourced income

Compare: 2004 No 35 s BD 1

BD 2 Deductions

An amount is a deduction of a person if they are allowed a deduction for the amount under Part D (Deductions).

Defined in this Act: amount, deduction

Compare: 2004 No 35 s BD 2

BD 3 Allocation of income to particular income years

Application

(1)

Every amount of income must be allocated to an income year under this section.

General rule

(2)

An amount of income is allocated to the income year in which the amount is derived, unless a provision in any of Parts C or E to I provides for allocation on another basis.

Interpretation of derive

(3)

When the time of derivation of an amount of income is being determined, regard must be had to case law, which—

(a)

requires some people to recognise income on an accrual basis; and

(b)

requires other people to recognise income on a cash basis; and

(c)

more generally, defines the concept of derivation.

Income credited in account

(4)

Despite subsection (3), income that has not previously been derived by a person is treated as being derived when it is credited in their account or, in some other way, dealt with in their interest or on their behalf.

Role of Part E

(5)

Part E (Timing and quantifying rules) contains a number of provisions that—

(a)

specifically modify the allocation of income or have the effect of modifying the allocation of income; or

(b)

allocate income as part of the process of quantifying it.

Single allocation

(6)

An amount of income may be allocated only once.

Defined in this Act: amount, income, income year

Compare: 2004 No 35 s BD 3

BD 4 Allocation of deductions to particular income years

Application

(1)

Every deduction must be allocated to an income year under this section.

General rule

(2)

A deduction for an amount of expenditure or loss is allocated to the income year in which the expenditure or loss is incurred, unless a provision in any of Parts D to I provides for allocation on another basis.

Interpretation of incur

(3)

When the time of incurrence of an amount of expenditure or loss is being determined, regard must be had to case law, which—

(a)

requires some people to recognise expenditure or loss on an accrual basis; and

(b)

requires other people to recognise expenditure or loss on a cash basis; and

(c)

more generally, defines the concept of incurrence.

Role of Part E

(4)

Part E (Timing and quantifying rules) contains a number of provisions that—

(a)

specifically modify the allocation of deductions or have the effect of modifying the allocation of deductions; or

(b)

allocate deductions as part of the process of quantifying them.

Allocation

(5)

If an expenditure or loss gives rise to more than 1 deduction, the deductions are allocated to income years to the extent that their total is no more than the amount of the expenditure or loss.

Defined in this Act: amount, deduction, income year, loss

Compare: 2004 No 35 s BD 4

Subpart BE—Withholding liabilities

BE 1

Withholding liabilities

BE 1 Withholding liabilities

PAYE income payments

(1)

A person who makes a PAYE income payment must withhold an amount from the payment under the PAYE rules.

Resident passive income

(2)

A person who makes a payment of resident passive income must withhold an amount from the payment under the RWT rules.

Non-resident passive income

(3)

A person who makes a payment of non-resident passive income must withhold an amount from the payment under the NRWT rules.

Fringe benefits

(4)

A person who provides a fringe benefit to another person must pay fringe benefit tax under the FBT rules.

Employer’s superannuation cash contributions

(5)

A person who makes an employer’s superannuation cash contribution must pay ESCT under the ESCT rules.

Retirement scheme contributions

(5B)

A person who makes a retirement scheme contribution to a retirement savings scheme must pay RSCT under the RSCT rules.

Residential land purchase amount

(6)

A person described in section RL 3 (Associated persons: who must pay, and how?) must withhold an amount from a residential land purchase amount under the RLWT rules.

Defined in this Act: amount, dividend, employer’s superannuation cash contribution, ESCT, ESCT rules, FBT rules, fringe benefit, fringe benefit tax, non-resident passive income, NRWT rules, pay, PAYE income payment, PAYE rules, resident passive income, residential land purchase amount, retirement savings scheme, retirement scheme contribution, RLWT rules, RSCT, RSCT rules, RWT rules, superannuation fund

Compare: 2004 No 35 s BE 1

Section BE 1(1) heading: substituted (with effect on 1 April 2008), on 6 October 2009, by section 5(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section BE 1(1): substituted (with effect on 1 April 2008), on 6 October 2009, by section 5(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section BE 1(5) heading: substituted (with effect on 1 April 2008), on 6 October 2009, by section 5(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section BE 1(5): substituted (with effect on 1 April 2008), on 6 October 2009, by section 5(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section BE 1(5B) heading: inserted, on 1 April 2008, by section 308(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section BE 1(5B): inserted, on 1 April 2008, by section 308(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section BE 1(6) heading: replaced, on 1 July 2016, by section 38(1) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).

Section BE 1(6): replaced, on 1 July 2016, by section 38(1) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).

Section BE 1 list of defined terms employer’s superannuation cash contribution: inserted (with effect on 1 April 2008), on 6 October 2009, by section 5(5)(b) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section BE 1 list of defined terms employer’s superannuation contribution: repealed (with effect on 1 April 2008), on 6 October 2009, by section 5(5)(a) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section BE 1 list of defined terms FDP: repealed (with effect on 30 June 2009), on 6 October 2009, by section 5(6) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section BE 1 list of defined terms FDP rules: repealed (with effect on 30 June 2009), on 6 October 2009, by section 5(6) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section BE 1 list of defined terms PAYE income payment: inserted (with effect on 1 April 2008), on 6 October 2009, by section 5(5)(b) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section BE 1 list of defined terms PAYE payment: repealed (with effect on 1 April 2008), on 6 October 2009, by section 5(5)(a) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section BE 1 list of defined terms residential land purchase amount: inserted, on 1 July 2016, by section 38(2) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).

Section BE 1 list of defined terms retirement savings scheme: inserted, on 1 April 2008, by section 308(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section BE 1 list of defined terms retirement scheme contribution: inserted, on 1 April 2008, by section 308(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section BE 1 list of defined terms RLWT rules: inserted, on 1 July 2016, by section 38(2) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).

Section BE 1 list of defined terms RSCT: inserted, on 1 April 2008, by section 308(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section BE 1 list of defined terms RSCT rules: inserted, on 1 April 2008, by section 308(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Subpart BF—Other obligations

BF 1

Other obligations

BF 1 Other obligations

A person must pay the following types of income or ancillary tax under the relevant Part:

(a)

qualifying company election tax under Part H (Taxation of certain entities):

(b)

income tax on taxable distributions from non-complying trusts under Part H:

(c)

further income tax under Part O (Memorandum accounts):

(d)

RLWT under subpart RL (Residential land withholding tax), if the person is described in section RL 2 (Vendors: who must pay, and how?).

(e)

[Repealed]

Defined in this Act: ancillary tax, further income tax, income tax, non-complying trust, pay, qualifying company election tax, RLWT, taxable distribution

Compare: 2004 No 35 s BF 1

Section BF 1(d): replaced, on 1 July 2016, by section 39(1) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).

Section BF 1(e): repealed, on 2 June 2016, by section 4 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).

Section BF 1 list of defined terms further FDP: repealed (with effect on 30 June 2009), on 6 October 2009, by section 6(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section BF 1 list of defined terms RLWT: inserted, on 1 July 2016, by section 39(2) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).

Section BF 1 list of defined terms withdrawal tax: repealed, on 29 March 2018 (with effect on 2 June 2016), by section 5 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).

Subpart BG—Avoidance

BG 1

Tax avoidance

BG 1 Tax avoidance

Avoidance arrangement void

(1)

A tax avoidance arrangement is void as against the Commissioner for income tax purposes.

Reconstruction

(2)

Under Part G (Avoidance and non-market transactions), the Commissioner may counteract a tax advantage that a person has obtained from or under a tax avoidance arrangement.

Defined in this Act: Commissioner, income tax, tax avoidance arrangement

Compare: 2004 No 35 s BG 1

Subpart BH—Double tax agreements

BH 1

Double tax agreements

BH 1 Double tax agreements

Meaning

(1)

Double tax agreement means an agreement that—

(a)

has been negotiated for 1 or more of the purposes set out in subsection (2); and

(b)

has been agreed between—

(i)

1 or more governments of territories outside New Zealand and the government of New Zealand; or

(ii)

the Taipei Economic and Cultural Office in New Zealand and the New Zealand Commerce and Industry Office; and

(c)

has entered into force as a result of a declaration by the Governor-General by Order in Council under subsection (3).

Purposes

(2)

The following are the purposes for which a double tax agreement may be negotiated:

(a)

to provide relief from double taxation:

(b)

to provide relief from tax:

(c)

to tax the income derived by non-residents from any source in New Zealand:

(d)

to determine the income to be attributed to non-residents or their agencies, branches, or establishments in New Zealand:

(e)

to determine the income to be attributed to New Zealand residents who have special relationships with non-residents:

(f)

to prevent fiscal evasion:

(g)

to facilitate the exchange of information:

(h)

to assist in recovering unpaid tax.

Entry into force

(3)

An agreement to which subsection (1)(a) and (b) apply comes into force as declared by the Governor-General by Order in Council and on the date determined under the agreement.

Secondary legislation

(3B)

An Order in Council under subsection (3) is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).

Overriding effect

(4)

Despite anything in this Act, except subsection (5), or section RF 11C (Interest paid by non-resident companies to non-residents) or (5B) or section BG 1 or GB 54 (which relate to tax avoidance) or, or in any other Inland Revenue Act or the Official Information Act 1982 or the Privacy Act 2020, a double tax agreement has effect in relation to—

(a)

income tax:

(b)

any other tax imposed by this Act:

(c)

the exchange of information that relates to a tax, as defined in paragraphs (a)(i) to (v) of the definition of tax in section 3 of the Tax Administration Act 1994.

Agreement for recovery of tax

(5)

An agreement that provides for the recovery of unpaid tax is subject to Part 10A of the Tax Administration Act 1994.

Foreign account information-sharing agreements

(5B)

A foreign account information-sharing agreement is subject to Part 11B of the Tax Administration Act 1994.

Reference to profits

(6)

A reference in a double tax agreement to the profits of an activity or business is to be read, if possible, as a reference to the amount that would be a person’s net income if that activity or business were their only activity or business.

Reference to unrelated persons

(7)

A reference in a double tax agreement to 2 persons being unrelated is to be read, if possible, as a reference to 2 persons being not associated.

Defined in this Act: associated, business, double tax agreement, income, income tax, Inland Revenue Acts, net income, New Zealand, New Zealand resident, non-resident, pay, source in New Zealand, tax

Compare: 2004 No 35 s BH 1

Legislation Act 2019 requirements for secondary legislation made under this section
Publication	PCO must publish it on the legislation website and notify it in the Gazette	LA19 s 69(1)(c)
Presentation	The Minister must present it to the House of Representatives	LA19 s 114, Sch 1 cl 32(1)(a)
Disallowance	It may be disallowed by the House of Representatives	LA19 ss 115, 116
This note is not part of the Act.

Section BH 1(1)(b)(i): amended (with effect on 21 October 2013), on 21 February 2017, by section 4 of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).

Section BH 1(3): replaced, on 30 March 2017, by section 6(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).

Section BH 1(3B) heading: inserted, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).

Section BH 1(3B): inserted, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).

Section BH 1(4): amended, on 1 December 2020, by section 217 of the Privacy Act 2020 (2020 No 31).

Section BH 1(4): amended, on 1 July 2018, by section 4(2) (and see section 4(4) for application) of the Taxation (Neutralising Base Erosion and Profit Shifting) Act 2018 (2018 No 16).

Section BH 1(4): amended (with effect on 1 April 2008), on 27 June 2018, by section 4(1) (and see section 4(3) for application) of the Taxation (Neutralising Base Erosion and Profit Shifting) Act 2018 (2018 No 16).

Section BH 1(4): amended, on 30 March 2017, by section 6(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).

Section BH 1(5B) heading: inserted, on 1 July 2014, by section 6(2) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).

Section BH 1(5B): inserted, on 1 July 2014, by section 6(2) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).

Section BH 1(7) heading: added, on 8 December 2009, by section 5 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

Section BH 1(7): added, on 8 December 2009, by section 5 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

Section BH 1 list of defined terms associated: inserted, on 8 December 2009, by section 126 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

Next: Part C Income