Income Tax Act 2007

Reprint as at 11 May 2014

Income Tax Act 2007

Public Act2007 No 97
Date of assent1 November 2007
Commencementsee section A 2

Note

Changes authorised by subpart 2 of Part 2 of the Legislation Act 2012 have been made in this official reprint.

Note 4 at the end of this reprint provides a list of the amendments incorporated.

This Act is administered by the Inland Revenue Department.


Contents

A 1 Title

A 2 Commencement

Part A
Purpose and interpretation

AA 1 Purpose of Act

AA 2 Interpretation

AA 3 Definitions

AA 4 Crown bound

Part B
Core provisions

Subpart BAPurpose

BA 1 Purpose

Subpart BBIncome tax and resulting obligations

BB 1 Imposition of income tax

BB 2 Main obligations

BB 3 Overriding effect of certain matters

Subpart BCCalculating 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 BDIncome, 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 BEWithholding liabilities

BE 1 Withholding liabilities

Subpart BFOther obligations

BF 1 Other obligations

Subpart BGAvoidance

BG 1 Tax avoidance

Subpart BHDouble tax agreements

BH 1 Double tax agreements

Part C
Income

Subpart CAGeneral rules

CA 1 Amounts that are income

CA 2 Amounts that are exempt income or excluded income

Subpart CBIncome 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 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

Exclusions for residential land

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 sold or sold 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 Sale of patent applications or patent rights

Transfer of business

CB 31 Sale 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 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 CCIncome from holding property (excluding equity)

Land use

CC 1 Land

CC 1B Consideration for agreement to grant, renew, extend, or transfer 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

CC 4 Payments of interest

CC 5 Annuities

CC 6 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

Royalties

CC 9 Royalties

CC 10 Films

Finance leases

CC 11 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

Subpart CDIncome from equity

Income

CD 1 Dividend

CD 2 Distribution excluded from being dividend

What is a dividend?

CD 3 Meaning of dividend

CD 4 Transfers of value generally

CD 5 What is a transfer of 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 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 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

[Repealed]

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 CEEmployee or contractor income

Employment income

CE 1 Amounts derived in connection with employment

CE 2 Value and timing of benefits under share purchase agreements

CE 3 Restrictions on disposal of shares under share purchase agreements

CE 4 Adjustments to value of benefits under share purchase agreements

Definitions

CE 5 Meaning of expenditure on account of an employee

CE 6 Meaning of share: when share acquired

CE 7 Meaning of share purchase agreement

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 CFIncome 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 CGRecoveries

CG 1 Amount of depreciation recovery income

CG 2 Remitted amounts

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 8 Capital contributions

Subpart CHAdjustments

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)

CH 5 Adjustment for GST

Finance leases

CH 6 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

Subpart COIncome from voluntary activities

CO 1 Income from voluntary activities

Subpart CPIncome from portfolio investment entities

CP 1 Attributed income of investors in multi-rate PIEs

Subpart CQAttributed 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 CRIncome 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 4 Income for general insurance outstanding claims reserve

Subpart CSSuperannuation funds

[Repealed]

Withdrawals

[Repealed]

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 CTIncome 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

Definitions

CT 6 Meaning of petroleum miner

CT 6B Meaning of petroleum mining operations

CT 7 Meaning of petroleum mining asset

Subpart CUIncome 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

Subpart CVIncome 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

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-resident film renters [Repealed]

CV 18 Hedging of currency movements in Australian non-attributing shares and attributing FDR method interests

CV 19 Additional income for certain imputation credits

Subpart CWExempt income

Income from business or trade-like activities

CW 1 Forestry companies established by the Crown, Maori owners, and holding companies buying 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]

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 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 17 Expenditure on account, and reimbursement, of employees

CW 17B Relocation payments

CW 17C Payments for overtime meals and certain other allowances

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

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 39 Local authorities

CW 40 Local and regional promotion bodies

CW 41 Charities: non-business income

CW 42 Charities: business income

CW 43 Charitable bequests

CW 44 Friendly societies

CW 45 Funeral trusts

CW 46 Bodies promoting amateur games and sports

CW 47 TAB 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 53 Distributions from complying trusts

CW 54 Foreign-sourced amounts derived by trustees

CW 55 Maori authority distributions

CW 55BA Tertiary education institutions

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 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 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 CXExcluded 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 Employment-related loans: loans by life insurers

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 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

CX 28 Accommodation

CX 29 Entertainment

CX 30 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

[Repealed]

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

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

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

CX 54 Share-lending collateral under share-lending arrangements

Portfolio investment income

CX 55 Proceeds from disposal of investment shares

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

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

Subpart CZTerminating provisions

CZ 1 Share purchase agreement income before 19 July 1968

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

CZ 10 Transitional relief for calculation of attributed repatriation dividends: 2 July 1992

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 24 Employee benefits for Canterbury earthquake 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 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

Part D
Deductions

Subpart DAGeneral rules

DA 1 General permission

DA 2 General limitations

DA 3 Effect of specific rules on general rules

DA 4 Treatment of amount of depreciation loss

DA 5 Treatment of expenditure for commercial fit-out

Subpart DBSpecific 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 or substituting 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 sold at discount to associate of debtor

DB 14 Security payment

DB 15 Sureties

Share-lending arrangements

DB 16 Share-lending collateral under share-lending arrangements

DB 17 Replacement payments and imputation credits under share-lending arrangements

Premises or land costs

DB 18 Transaction costs: leases

DB 19 Expenses of failed or withdrawn 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

Revenue account property

DB 23 Cost of revenue account property

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

DB 31 Bad debts

DB 32 Bad debts owed to estates

Research and development

DB 33 Scientific research

DB 34 Research or development

DB 35 Some definitions

DB 36 Patent expenses

DB 37 Expenses of failed or withdrawn patent application

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

Unsuccessful software development

DB 40B Expenditure in unsuccessful development of software

Marketing

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

DB 45 Bribes paid to public officials

Pollution control

DB 46 Avoiding, remedying, or mitigating effects of discharge of contaminant

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

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

Exempt income

DB 55 Expenditure incurred in deriving exempt dividend

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

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

Capital contributions

DB 64 Capital contributions

DB 65 Allowance for certain commercial buildings

Subpart DCEmployee 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 Sale of business: transferred employment income obligations

DC 11 Transfers of employment income obligations to associates

DC 12 Loans to employees under share purchase schemes

DC 13 Criteria for approval of share purchase schemes: before period of restriction ends

DC 14 Criteria for approval of share purchase schemes: when period of restriction ends

DC 15 Some definitions

Subpart DDEntertainment 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 DEMotor vehicle expenditure

Introductory provisions

DE 1 What this subpart does

DE 2 Deductions for business use

DE 3 Methods for calculating proportion of business use

DE 4 Default method for calculating proportion of business use

Actual records

DE 5 Actual records

Logbook

DE 6 Using logbook for test period

DE 7 Logbook requirements

DE 8 Logbook term

DE 9 Inadequate logbook

DE 10 Variance during logbook term

DE 11 Replacement vehicles

Mileage rates

DE 12 Mileage rate method

Subpart DFGovernment 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 DGExpenditure 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 Expenditure related to income-earning use

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 DNAttributed 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

Subpart DOFarming and aquacultural business expenditure

Farming

DO 1 Enhancements to land

DO 2 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 DPForestry 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 bought from the Crown, Maori owners, or holding company: no deduction

DP 9 Cost of acquiring timber: forestry business on land bought 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 DQIncome equalisation schemes and environmental restoration accounts schemes

DQ 1 Main income equalisation scheme

DQ 2 Adverse event income equalisation scheme

DQ 3 Thinning operations income equalisation scheme

DQ 4 Environmental restoration accounts scheme

Subpart DRLife 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 outside New Zealand

DR 4 Life insurers' claims

Subpart DSFilm 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 DTPetroleum mining expenditure

Petroleum exploration expenditure

DT 1A Ring-fenced allocations

DT 1 Petroleum exploration expenditure

DT 2 Arrangement for petroleum exploration expenditure and sale 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 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

DT 11 Association ending

Other expenditure

DT 12 Damage to assets

DT 13 Disposal of ownership interests in controlled petroleum mining entities

DT 14 Farm-out arrangements

DT 15 Persons associated with petroleum miner

DT 16 Removal or restoration operations

General provisions

DT 17 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 DUMineral 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 DVExpenditure 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

DV 9 Trusts

DV 10 Building societies

DV 11 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 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

Subpart DWExpenditure specific to certain industries

DW 1 Airport operators

DW 2 Bloodstock racing

DW 3 Non-resident general insurers and shippers

DW 4 Deduction for general insurance outstanding claims reserve

Subpart DXOther expenditure

DX 1 Testamentary annuities

DX 2 Tax credits: conduit financing arrangements [Repealed]

DX 3 Tax credits: supplementary dividend holding companies [Repealed]

Subpart DZTerminating 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 Buying 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 Expenditure on certain assets before 31 March 2013

Part E
Timing and quantifying rules

Subpart EAMatching 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 EBValuation 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

Standard valuation

EB 6 Cost

EB 7 Cost allocation: cost-flow method

EB 8 Cost allocation: budgeted method or standard cost method

EB 9 Discounted selling price

EB 10 Replacement price

EB 11 Market selling value

EB 12 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 ECValuation 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

Herd scheme

EC 14 Herd scheme

EC 15 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 bought 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 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 48 Replacement breeding stock

Subpart EDValuation 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 3 Part-year tax calculations for transfers: general insurance OCR

ED 4 Valuation of certain excepted financial arrangements denominated in foreign currency

Subpart EEDepreciation

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 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

EE 22 Cases affecting pool

EE 23 Combined pools

EE 24 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 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

EE 37 Improvements

EE 38 Items of low value

EE 39 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 52

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

EE 54 Cost: GST

Adjusted tax value

EE 55 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 EFTaxes 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 EGRecognition 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 EHIncome equalisation schemes

Introductory provisions

EH 1 Income equalisation schemes

EH 2 Income Equalisation Reserve 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

Deduction

EH 7 Deduction of deposit

Refunds: automatic

EH 8 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 request

EH 14 Income when refund given on request

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

EH 33 Amount of tax credit

Definitions

EH 34 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

Deposits and accounts

EH 38 Adverse event deposit

EH 39 Adverse event income equalisation account

Interest

EH 40 Interest on deposits in adverse event income equalisation account

Deduction

EH 41 Deduction of deposit

Refunds: automatic

EH 42 Refund of excess deposit

EH 43 Income does not include excess deposit

Refunds: on application

EH 44 Application for refund by person, trustee of estate, Official Assignee, or liquidator

EH 45 Refund on request

EH 46 Income when refund given on request

EH 47 Refund on retirement

EH 48 Income when refund given on retirement, and election to allocate amount to earlier year

EH 49 Refund on death

EH 50 Income when refund given on death

EH 51 Income when refund given on death, and election to allocate amount to earlier year

EH 52 Income when refund given on death, and election to allocate amount to later year or years

EH 53 Refund on bankruptcy

EH 54 Income when refund given on bankruptcy

EH 55 Refund on liquidation

EH 56 Income when refund given on liquidation

Refunds: general provisions

EH 57 Amendment of assessment

EH 58 Minimum refund

EH 59 Deposits from which refunds come

Transfers

EH 60 Transfer of deposit

Definitions

EH 61 Meaning of adverse event maximum deposit

EH 62 Other definitions

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

Deductions

EH 67 Deduction of deposit

Refunds: automatic

EH 68 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 request

EH 72 Income when refund given on request

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 EISpreading 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 EJSpreading 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 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 Relinquishing petroleum mining permit

EJ 13B Dry well drilled

EJ 13C Well not producing

EJ 14 Spreading deduction backwards

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

Subpart EKEnvironmental restoration accounts

EK 1 Environmental Restoration Funds 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 request or excess balance

EK 13 Income when refund given on request

EK 14 Application for transfer

EK 15 Transfer on request

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 EMHedging 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 Irrevocable elections

EM 5 Fair dividend rate hedge portions

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 EWFinancial 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 Some short-term agreements for sale and purchase acquired in business: election to treat 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 of property or services, hire purchase agreement, specified option, or finance lease

EW 33 Consideration for hire purchase agreement or finance lease

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 sold 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

EW 46B Consideration when party changes from fair value method

Consideration when legal defeasance has occurred

EW 47 Legal defeasance

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 sold at discount to associate of debtor

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

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 EXControlled 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 Options and similar rights in certain cases

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

[Repealed]

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

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 [Repealed]

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 Exemption for employee share purchase scheme of grey list company

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 48 Default calculation method

EX 49 Accounting profits method [Repealed]

EX 50 Attributable FIF income method

EX 51 Comparative value method

EX 52 Fair dividend rate method: usual method

EX 53 Fair dividend rate method for unit-valuing funds and others by choice

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 EYLife insurance rules

Introductory provisions

EY 1 What this subpart does

EY 2 Policyholder base

EY 3 Shareholder base

EY 4 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

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 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 EZTerminating 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 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

Patent rights

EZ 7 Buying 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 23B Property acquired after depreciable property affected by Canterbury earthquakes

EZ 23BB Interest in property acquired after depreciable property affected by Canterbury earthquakes

EZ 23C Insurance for Canterbury earthquake damage of property: deemed sale and purchase

EZ 23D Insurance for Canterbury earthquake damage of property: limit on depreciation recovery income

EZ 23E Item treated as available for use if access restricted due to Canterbury earthquake

EZ 23F Insurance for Canterbury earthquake damage causing disposal: optional timing rule for income, deductions

EZ 23G Insurance for repairs of Canterbury earthquake damage: optional timing rule for income, deductions

Definitions

EZ 24 Meaning of new asset

EZ 25 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

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 Sale 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

EZ 66 Prepayments

EZ 67 Leased assets

EZ 68 Definitions

IFRS financial reporting method

EZ 69 IFRS financial reporting method: interest-free and low-interest loans

Part F
Recharacterisation of certain transactions

Subpart FARecharacterisation 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 repurchasing 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 FBTransfers of relationship property

FB 1 What this subpart does

FB 2 Personal property

FB 3 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

FB 13 Trading stock

FB 14 Specified livestock

FB 15 Specified livestock valued under herd scheme

FB 16 Non-specified livestock

FB 17 High-priced livestock

FB 18 Bloodstock

FB 19 Leased assets

FB 20 Mining assets [Repealed]

FB 21 Depreciable property

Subpart FCDistribution, transmission, and gifts of property

Introductory provisions

FC 1 What this subpart does

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

Subpart FEInterest 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

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 8 Measurement dates

FE 9 Elections

FE 10 Currency

FE 11 Temporary 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

FE 15 Total group debt

FE 16 Total group assets

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

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 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 FFInterest apportionment for conduit investment

[Repealed]

Introductory provisions

[Repealed]

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

[Repealed]

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

[Repealed]

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 FLEmigration of resident companies

FL 1 What this subpart does

FL 2 Treatment of emigrating companies and their shareholders

Subpart FMConsolidated 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

[Repealed]

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

FM 28 Refund when consolidated group has loss

FM 29 Treatment of credit balance in consolidated group’s FDP account

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 or entitlement to be part of consolidated group

FM 41 No nominated company

FM 42 When company liquidated

Subpart FNImputation 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 FOAmalgamation 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

FO 16 Amortising property

FO 17 Land

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

Subpart FZTerminating 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

FZ 5 Commercial bills

Estate property

FZ 6 Transitional valuation rule for estate property

Earthquake-affected group property

FZ 7 Valuation of group assets: insurance proceeds from Canterbury earthquake

Part G
Avoidance and non-market transactions

Subpart GAAvoidance: general

GA 1 Commissioner’s power to adjust

GA 2 Commissioner’s power to adjust: fringe benefit tax

Subpart GBAvoidance: 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

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

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 15B Supplies affecting default test for non-attributing active CFC

GB 15C Arrangements related to accounting test for non-attributing active CFC

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

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 partners

GB 50 Arrangements involving partners

Subpart GCMarket 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 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 Requests 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

Subpart GZTerminating 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

Part H
Taxation of certain entities

Subpart HAQualifying 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

[Repealed]

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

[Repealed]

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 HBLook-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 HCTrusts

Introductory provisions

HC 1 What this subpart does

HC 2 Obligations of joint trustees for calculating income and providing returns

HC 3 Multiple settlements

HC 4 Corpus of trust

Trust income

HC 5 Amounts derived by trustees

HC 6 Beneficiary income

HC 7 Trustee income

HC 8 Amounts received after person’s death

Classification of trusts

HC 9 Classifying trusts

HC 10 Complying trusts

HC 11 Foreign trusts

HC 12 Non-complying trusts

HC 13 Charitable 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

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 HDAgents

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

HD 11 Nominated companies

HD 12 Trusts

HD 13 Unit trusts

HD 14 Companies issuing debentures

HD 15 Asset stripping of companies

HD 16 Non-resident general insurers

HD 17 Agent paying premiums to residents of Switzerland

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

HD 21 Companies

HD 22 Banking companies

HD 23 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 buying goods from overseas

Subpart HEMutual 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 HFMaori 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 H1 Consequences 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 HGJoint 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 HLPortfolio investment entities

[Repealed]

Introductory provisions

[Repealed]

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

[Repealed]

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

[Repealed]

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

[Repealed]

HL 16 Portfolio allocation period and portfolio calculation period [Repealed]

Allocation of income in some cases

[Repealed]

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

[Repealed]

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

[Repealed]

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

[Repealed]

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

[Repealed]

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

[Repealed]

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

[Repealed]

HL 33 Portfolio investor proxies [Repealed]

Subpart HMPortfolio 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

Entry rules

HM 7 Requirements

Requirements

HM 8 Residence in New Zealand

HM 9 Collective schemes

HM 10 Exclusion: life insurance business

HM 11 Investment types

HM 12 Income types

HM 13 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 crediting requirement

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 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

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

HM 45 Voluntary payments

HM 46 Calculation process

HM 47 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 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

Subpart HROther entities

Partnerships and joint ventures

[Repealed]

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 Crown activities through New Zealand Superannuation 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

Financial institution special purpose vehicles

HR 9 Financial institution special purpose vehicles are transparent

HR 9B Bankruptcy-remote property during application of section HR 9

HR 10 What happens when vehicle stops being financial institution special purpose vehicle?

Subpart HZTerminating 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 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

Part I
Treatment of tax losses

Subpart IAGeneral rules for tax losses

IA 1 What this subpart does

IA 2 Tax losses

IA 3 Using tax losses in tax year

IA 4 Using loss balances carried forward to tax year

IA 5 Restrictions on companies’ loss balances carried forward

IA 6 Restrictions on companies grouping tax losses

IA 7 Restrictions relating to ring-fenced tax losses

IA 8 Restrictions relating to schedular income

IA 9 Ordering rules

IA 10 Amended assessments

Subpart ICGrouping 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 Residence of company A

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 IDUse 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 IETreatment 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 IPMeeting 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 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 IQAttributed 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 ISMineral 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

IS 6 When company stops being mineral miner

Subpart ITCancellation 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 IVTreatment of certain supplementary dividends

[Repealed]

IV 1 Supplementary dividend holding companies [Repealed]

Subpart IWUse of tax losses to pay shortfall penalties

IW 1 Shortfall penalties

Subpart IZTerminating provisions

IZ 1 Use of specified activity net losses

IZ 2 Petroleum mining companies: treatment of payments from shareholders

IZ 3 Petroleum mining companies: use of loss balances

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

Part L
Tax credits and other credits

Subpart LAGeneral 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 under social policy schemes

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 LBTax credits for payments, deductions, and family payments

LB 1 Tax credits for PAYE income payments

LB 2 Tax credits for provisional tax payments

LB 3 Tax credits for resident withholding tax

LB 4 Tax credits for families

LB 5 Tax credits for non-resident withholding tax

LB 6 Tax credits for RSCT

LB 7 Tax credits related to personal service rehabilitation payments: providers

LB 8 Tax credits related to personal service rehabilitation payments: payers

Subpart LCTax credits for natural persons

Tax credits for persons on low incomes

[Repealed]

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

[Repealed]

LC 3 Child’s income [Repealed]

Tax credits for transitional circumstances

[Repealed]

LC 4 Tax credits for transitional circumstances [Repealed]

LC 5 Meaning of engaged in full-time work [Repealed]

Tax credits for housekeeping

[Repealed]

LC 6 Tax credits for housekeeping [Repealed]

LC 7 Meaning of housekeeper [Repealed]

LC 8 Some definitions [Repealed]

Tax credits for absentees

[Repealed]

LC 9 Tax credits for absentees [Repealed]

Adjustments to certain tax credits

[Repealed]

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 LDTax 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 LETax 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

LE 10 When income tax unpaid

LE 11 Evidential requirements

Subpart LFTax credits for foreign dividend payment (FDP) credits

LF 1 Tax credits for FDP credits

LF 2 Trustees for minor beneficiaries

LF 3 Beneficiaries of trusts

LF 4 Partners in partnerships

LF 5 Credit transfer notices

LF 6 Application of FDP ratio

LF 7 Application of combined imputation and FDP ratio

LF 8 Credits for persons who are non-resident or who receive exempt income

LF 9 When income tax unpaid

LF 10 Evidential requirements

Subpart LHTax credits for expenditure on research and development

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

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

LH 15 Listed research providers [Repealed]

LH 16 Industry research co-operatives [Repealed]

LH 17 Some definitions

Subpart LJTax 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

Subpart LKTax 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 LLUnderlying 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 LOTax 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 LPTax 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 LQTax 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 LRTax credits for policyholder income

[Repealed]

LR 1 Tax credits for policyholder income [Repealed]

Subpart LSTax 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 LUTax credits for mineral miners

LU 1 Tax credits for mineral miners

Subpart LZTerminating provisions

Underlying foreign tax credits

[Repealed]

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

LZ 10 Maximum amount for 1 special home ownership account for 1 tax year

LZ 11 Maximum amount for all special home ownership accounts for all tax years

LZ 12 Meaning of increase in savings

Part M
Tax credits paid in cash

Subpart MAGeneral 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 for family scheme

MA 8 Some definitions for family scheme

Subpart MBAdjustment 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

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 13 Family scheme income from other payments

Subpart MCEntitlements 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

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 MDAbating 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: full-time 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

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 Calculation of parental tax credit abatement

Subpart MEMinimum 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 MFPayment 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

MF 4E Calculation of instalments: 1 October 2010 to 31 March 2011

MF 5 Recovery of overpaid tax credit

MF 6 Overpayment or underpayment of tax credit

MF 7 Orders in Council

Subpart MKTax 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

[Repealed]

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 MLTax 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 MZTerminating 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 OAGeneral provisions

Introductory provisions

OA 1 What this Part does

OA 2 Memorandum accounts

OA 3 General rules for maintaining memorandum accounts

OA 4 Certain credits and debits arising only in group accounts

Credits and debits

OA 5 Credits

OA 6 Debits

Opening balances

OA 7 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

OA 12 CTR account on resident’s restricted amalgamation [Repealed]

OA 13 Policyholder credit account on resident’s restricted amalgamation

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

OA 17 When policyholder credit account ends on resident’s restricted amalgamation

Maximum permitted ratios

OA 18 Calculation of maximum permitted ratios

Subpart OBImputation credit accounts (ICA)

Introductory provisions

OB 1 General rules for companies with imputation credit accounts

OB 2 Australian companies choosing to have 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

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

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 10 ICA dividend derived with FDP credit

OB 11 ICA payment of FDP [Repealed]

OB 12 <